Vukile Property Fund FY23 operating profit up 6%

Vukile Property Fund, a specialist retail fund, has reported a strong performance in the financial year 2023. Laurence Rapp, CEO of Vukile Property Fund, highlighted the excellent operational results achieved in both the South African and Spanish markets. Rapp described the results as the best set the company has produced in South Africa in nearly two decades since listing. The focus on understanding the needs of consumers has been a key part of Vukile's strategy, driving performance for tenants in shopping centers and ultimately delivering value for investors. The company's promotional activities and emphasis on consumer needs have led to growing footfall, increased sales, lower vacancies, and positive tenant reversion rates. This strategy has resulted in a 3.1% increase in revenue and a 6% growth in distributable income. Despite facing challenges such as high operational costs, including increased diesel expenses due to load shedding, Vukile has managed to mitigate these costs through tenant recovery and is implementing innovative solutions like solar and battery installations to further reduce operational risks and costs. The company's diversification in Spain and South Africa has shown similar performance, with opportunities for higher returns seen in the European market, particularly in Spain. Rapp emphasized the importance of operational focus and strategic investments to navigate challenges and seize opportunities, setting a positive outlook for the future of Vukile Property Fund.