Vukile Property Fund (VKE) Trading update summary

Transformative year, strategic expansion, and portfolio growth

• Exited all listed exposures, including Fairvest and Lar España, redeploying proceeds into accretive solar projects and direct assets, with Castellana’s asset base growing by nearly 60% to €1.6 billion and gross asset value exceeding R50 billion.

• Major acquisitions included three Portuguese assets for €176.5 million, 50% of Alegro Sintra for €44.5 million, and Bonaire Shopping Centre in Spain for €305 million, all fully funded and accretive.

• Entered Portugal with four assets and closed a fifth deal, shifting the asset base to 65% Iberia and 35% South Africa, with 60% of earnings now offshore.

• Raised ZAR 1.5 billion in capital and ZAR 800 million via DRIPs, increasing free float to 97% as of March 2025.

• No further equity funding anticipated; focus is on integrating and optimizing new assets, with ongoing portfolio recycling but no immediate disposals required.

Operational performance and financial guidance

• South Africa achieved like-for-like NOI/NPI growth of 6.4%, with cost containment, solar rollout (+64%), and operational efficiencies driving performance.

• Castellana delivered 2% NOI growth, with value-add projects set to benefit FY 2026; Iberian like-for-like NPI increased by almost 2%.

• Confirmed FY 2025 guidance: FFO per share growth of 2%-4%, dividend per share growth of 6%; preliminary FY 2026 guidance: at least 6% growth in both FFO and DPS, with no new equity capital expected.

• Free float increased to 97%, and cost-to-income ratio improved to 15.1%.

• Ongoing solar and water initiatives are enhancing sustainability and operational efficiency.

South African portfolio highlights

• Trading densities rose to 4.8%, with township and rural portfolios outperforming; average customer spend increased to R176.

• Vacancy rate stable below 2%, with improved tenant quality and positive reversion rate of 2.3%; 84% of rental reversions were positive or flat.

• Leasing activity robust: 456–600 deals signed, ZAR 1 billion in lease value, with strong national retailer support.

• All retail categories showed trading density growth, with grocery up 5.6% and fashion up 3.4%.

• Rent collection rates reached 101% with a 22% decrease in outstanding balances.