Our opinion on the current state of VUKILE(VKE)Vukile (VKE) is a real estate investment trust (REIT) trading on the JSE and the Namibian Stock Exchange. It owns properties directly, shares in other REITs, property in the UK, and a growing portfolio of properties in Spain. Fifty percent of its assets are in Southern Africa, mainly in retail, 46% in Spain, and 4% in the UK. Vukile has a policy of re-investing into its existing properties and has struck a deal with MTN, which has invested R80 million to install fiber into 37 of its malls.
Vukile has a R595 million investment in Fairvest, a R1.3 billion investment in Atlantic Leaf (34.9%, which it is now in the process of selling), and a R790 million investment in Gemgrow Properties, which they are trying to sell. Vukile is probably one of the best REITs on the JSE, and its share price has risen steadily over the 15 years, despite various setbacks. The CEO, Laurence Rapp, says that the company is selling its shareholding in other REITs and its UK assets to focus on portfolios in Southern Africa and Spain.
In its results for the year to 31st March 2024, the company reported revenue up 11.8% and net asset value (NAV) of 2155c per share, up 5.2%. The company's loan-to-value (LTV) is 40.7%. The company said the South African portfolio had, "Like-for-like retail NOI growth of +5.4% - Vacancies reduced to 1.9% - Rental reversions +2.9%, up from +2.3% - Like-for-like retail portfolio value increased by +5.8%."
Its shares are trading on a multiple of 11.85, which still looks cheap to us. This share has been a good long-term investment and continues to show strong performance and growth potential.
