Property loan stock company has reported a 23.2% increase to R264.6 million in net profit available for distribution for the full year to March 31.

It posted a 17.0% rise to 48.0 cents per linked unit in the final distribution for the last six months, making the total for the year 88.25 cents per linked unit, an increase of 15.0% over the previous year.

Net asset value increased by 10.8% to 890 cents per linked unit year-on-year while the valuation of the company's property portfolio rose by 11.8% to R4.32 billion compared with March 2007.

Vukile said it had enhanced the quality of its portfolio during the course of the year through acquisitions and developments totalling some R250 million, while the vacancy level of its portfolio reached an all-time low of 2.8%.

Chief executive Gerhard van Zyl said the cost of debt of the company had not been affected by interest rate increases as virtually all of Vukile's debt is hedged or fixed, but he did anticipate a slowdown in the trading environment amid fiscal pressures, decreased consumer spending and the electricity crisis.

This slowdown, he said, would be offset by the continuous shortage of space - particularly in the industrial and commercial sectors - which could result in continued upward pressure on rentals.

"In spite of the general slowdown in the economy, property fundamentals remain fairly strong. We are therefore optimistic that the company is on track to deliver reasonable growth in distributions in the forthcoming year," Van Zyl said.

Source: I-Net Bridge