Vukile Property Fund (VKE) Trading update summary

Introduction and Strategic Overview

• Strong H1 performance and robust operating results in South Africa and Spain provide a solid foundation for expansion strategies, supported by customer focus and shopper insights.

• Castellana portfolio in Spain demonstrates ongoing strength, benefiting from local asset management expertise and exceptional operational results.

• Balance sheet strength, proactive capital market activity, and oversubscribed capital raises support growth ambitions.

• Recent entry into Portugal marks the first step in broader Iberian expansion, with a milestone transaction at projected cash-on-cash yields above 10%.

South African Retail Portfolio and Trading Update

• Trading density growth reached 3.3%, with township and rural segments outperforming at 5.3% and 3.5% respectively.

• Like-for-like NOI growth forecast at 6.4%, supported by high occupancy, cost savings, and operational efficiencies.

• Rent collection rate improved to 101%, with a 14% reduction in outstanding balances.

• Leasing activity remains vibrant, especially in township, rural, and urban portfolios, with strong tenant retention and new contracts.

• Most retail categories showed trading density and turnover growth, notably pharmacies (+8.4%), bottle stores (+9.6%), and health & beauty (+6.8%).

Castellana Properties (Spain) Trading Update

• Portfolio footfall increased by 3.7% and tenant sales grew by 4.6% year-on-year to July 2024.

• Retail parks outperformed shopping centres in sales growth, with retail parks up 7.0%.

• High occupancy (98.4%) and exceptional rental increases, with €6.0 million in new rent signed YTD August 2024.

• Rental increases in Spain averaged 31.45%, with new leases up 42.43% and renewals up 9.83%.

• Value-add projects at El Faro and Vallsur progressing well, with high pre-letting rates and strong tenant demand; Vallsur's new food and beverage area boosted footfalls by 16%.