09 Jun

Vukile jumps almost 7% as it reports strong trading

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Vukile Properties owns township and rural shopping centres including  Gugulethu Square, Mdantsane City Shopping Centre, Soweto Dobsonville Mall.
Photo: Vukile Property Fund
Vukile Properties owns township and rural shopping centres including Gugulethu Square, Mdantsane City Shopping Centre, Soweto Dobsonville Mall. Photo: Vukile Property Fund

Vukile Property Fund, which owns shopping centres in South Africa and Spain, is seeing "strong trading" in both countries, with retail sales and footfall back at pre-pandemic levels.

"We are seeing good demand and competition from retailers to expand in our portfolios," the company said in its annual results.

The group owns properties worth almost R31 billion. Roughly half of the portfolio is held via its Madrid-listed subsidiary, Castellan, with the rest in South Africa. Locally, it owns centres like Mdantsane City and Gugulethu Square.

Its gross property revenue for the year to end-March increased to R3.5 billion, from R3.1 billion in the previous year.

In South Africa, its retail vacancies reduced to 2.6% over the past year. Its retention rate of tenants improved to 93%, with a 100% rent collection rate.

At Castellana, vacancies reduced to 1.6%.

The company posted a total dividend of 105.8 cents per share, from 101 cents in the previous year. It expects dividend growth of between 5% to 7% for the current financial year.

Vukile’s share price jumped by almost 7% on Thursday morning. 

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