Our opinion on the current state of VKE

Vukile (VKE) is a real estate investment trust (REIT) trading on the JSE and the Namibian Stock Exchange. It owns properties directly, shares in other REITs, property in the UK as well as a growing portfolio of properties in Spain. 50% of its assets are in Southern Africa, mainly in retail, 46% in Spain and 4% in the UK. Vukile has a policy of re-investing into its existing properties and has struck a deal with MTN, who have invested R80m to install fibre into 37 of its malls. Vukile has a R595m investment in Fairvest, a R1,3bn investment in Atlantic Leaf (34,9% which it is now in the process of selling) and a R790m investment in Gemgrow Properties, which they are trying to sell. Vukile is probably one of the best REITs on the JSE and its share price has risen steadily over the 15 years, despite various setbacks. The CEO Laurence Rapp says that the company is selling its shareholding in other REITs and its UK assets to focus on portfolios in Southern Africa and Spain. In its results for the year to 31st March 2023 the company reported revenue up 3,1% and net asset value (NAV) of 2048c per share, up 14,3%. The company's loan-to-value (LTV) is 42,6%. The company said, "Headline earnings increased marginally to 134.72 cents per share (31 March 2022: 134.25 cents per share)". Business Day reported that Vukile estimated that its dividend for the six months to 30th September 2023 would increase by between 7% and 9% due to an increase in footfall and trading density. Its shares are trading on a multiple of 9,8 which still looks cheap to us. This share has been a good long-term investment.