Vukile Property Fund (VKE) Trading update summary

Operational performance and integration

• Strong operational start to FY2026, with successful integration of Iberian assets, especially in Spain and Portugal, enabling value-add initiatives and improved data management.

• South African portfolio NOI projected to increase by 10.1%, exceeding budget, with like-for-like NOI growth at 8%, driven by high occupancy, cost efficiencies, and solar PV projects.

• Portfolio metrics remain strong, with high occupancy, stable vacancies below 2%, and positive rental reversions for the fourth consecutive year.

• Raised ZAR 500 million bond, 6x oversubscribed, achieving lowest margin since 2012 and AA+ credit rating.

• Collection rates above 100%, with outstanding balances dropping by 36%.

Financial and trading update

• NOI forecast increased from 9.1 to 10.1, with like-for-like growth of 8%, supported by solar PV and utility optimization.

• Trading density growth of 5.3% across the portfolio, with township and rural segments outperforming at 7.6% and 4.6% respectively.

• Over 200 deals concluded, with positive rental reversions expected to trend towards 4%, and 295 leases signed with rental growth on new contracts at 14.7%.

• Cost containment initiatives expected to reduce cost-income ratio to 13%; cost-to-income ratio improved to 13% through efficiency measures.

• Tenant retention slightly decreased due to strategic replacements, but overall tenant demand remains strong.

Iberian portfolio performance

• Spanish and Portuguese portfolios delivered outstanding metrics, with all assets beating previous records and occupancy at 99%.

• Footfall and sales in both countries grew by 3% year-to-date; Alfafar and El Faro saw over 30% increases in footfall after project completions.

• Tenant sales up 5.1% overall, with Spanish portfolio up 5.7% and Portugal up 4.1%.

• 170 leasing deals in Iberia, with positive reversion rates and notable increases in new contracts, especially in Portugal; average rental increases of 2.8% (Spain) and 2.3% (Portugal).

• Occupancy and rent collection rates close to 100%, with expectations for further improvement in Portugal.