Vukile Property Fund (VKE) Trading update summary

Portfolio Performance and Trading Update

• Achieved record footfall and full occupancy in Iberian portfolio, with El Faro seeing a 21.3% rise in footfall and tenant sales up 4.1% year-to-date, led by fashion and F&B categories.

• South African portfolio delivered like-for-like NOI growth of 10.1%, trading densities up 5.1%, and sales up 5.3%, with core retail vacancy at 1.1% and overall vacancies at 1.7%.

• Leasing activity was robust: 254 deals in Iberia (over 50,000 sq m, 3.3% rental growth), and 576 leases signed overall, with 89% of renewals with national and mid-tier tenants and positive rental spreads.

• Cost-to-income ratio in SA improved to 12.4%, with rent collection rates above 100% and high retention ratios.

• Top tenants in SA (55% of GLA) grew by 5.5%, with groceries, fashion, and home categories showing resilience.

Strategic Portfolio Transformation, Acquisitions, and Capital Allocation

• Disposed of nine Spanish retail parks for EUR 279 million (yield 7.1%), recycling proceeds into dominant shopping centers: Berceo, Islazul, Splau, and Puerta Europa.

• In SA, sold four non-core assets for ZAR 625 million and acquired 50% of Chatsworth Mall and 100% of Botshabelo Mall, strengthening township and rural exposure.

• Raised ZAR 2.65 billion via book build and added ZAR 1.18 billion in debt; all acquisitions fully funded with no further equity required.

• Acquired 35% stake in Pradera, enhancing European market access and retail expertise.

• Pro forma LTV expected at 42% post-deals, with ICR at 3x and strong cash flow; blended NOI yields above 8% and valuation uplifts anticipated.

Operational Initiatives and Asset Management

• Continued focus on cost savings, PV and water initiatives in SA, and asset repositioning in Iberia, driving margin improvement and sustainability.

• Borehole water and PV projects implemented to manage expenses and ensure operational resilience.

• Asset management strategies in new acquisitions (e.g., Botshabelo Mall) to unlock further value through tenant mix optimization and sustainability upgrades.

• High occupancy and rent collection rates near 100% in Iberia, reflecting portfolio strength and tenant stability.

• Shareholders approved a 9% extension to authority for share issuance, supporting future capital flexibility.