OTCPK:VKPP.F

Stock Analysis Report

Executive Summary

Vukile Property Fund Limited (Vukile or the group) is a focused retail REIT, which was listed on the JSE Limited on 24 june 2004 (JSE code: VKE) and on the Namibian Stock Exchange (NSX) on 11 july 2007 (NSX code: VKN).


Snowflake Analysis

Fair value second-rate dividend payer.


Similar Companies

Share Price & News

How has Vukile Property Fund's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: VKPP.F has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

0%

VKPP.F

-10.1%

US REITs

-10.6%

US Market


1 Year Return

n/a

VKPP.F

5.9%

US REITs

5.2%

US Market

Return vs Industry: Insufficient data to determine how VKPP.F performed against the US REITs industry.

Return vs Market: Insufficient data to determine how VKPP.F performed against the US Market.


Shareholder returns

VKPP.FIndustryMarket
7 Day0%-10.1%-10.6%
30 Day0%-6.5%-8.5%
90 Day0%-4.5%-4.6%
1 Yearn/a10.1%5.9%7.4%5.2%
3 Year13.5%13.5%24.8%9.3%31.7%23.2%
5 Yearn/a48.4%17.9%56.4%39.3%

Price Volatility Vs. Market

How volatile is Vukile Property Fund's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

Is Vukile Property Fund undervalued compared to its fair value and its price relative to the market?

9.6x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: VKPP.F ($1.36) is trading above our estimate of fair value ($0.3)

Significantly Below Fair Value: VKPP.F is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: VKPP.F is good value based on its PE Ratio (9.6x) compared to the REITs industry average (37.8x).

PE vs Market: VKPP.F is good value based on its PE Ratio (9.6x) compared to the US market (18.9x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate VKPP.F's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: VKPP.F is good value based on its PB Ratio (0.9x) compared to the US REITs industry average (2x).


Next Steps

Future Growth

How is Vukile Property Fund forecast to perform in the next 1 to 3 years based on estimates from 2 analysts?

4.5%

Forecasted Real Estate industry annual growth in earnings


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: Insufficient data to determine if VKPP.F's forecast earnings growth is above the savings rate (2.7%).

Earnings vs Market: Insufficient data to determine if VKPP.F's earnings are forecast to grow faster than the US market

High Growth Earnings: Insufficient data to determine if earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: Insufficient data to determine if VKPP.F's revenue is forecast to grow faster than the US market.

High Growth Revenue: Insufficient data to determine if VKPP.F's revenue is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: VKPP.F's Return on Equity is forecast to be low in 3 years time (15%).


Next Steps

Past Performance

How has Vukile Property Fund performed over the past 5 years?

14.2%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: VKPP.F has a large one-off gain of ZAR602.8M impacting its March 31 2019 financial results.

Growing Profit Margin: VKPP.F's current net profit margins (59.2%) are lower than last year .


Past Earnings Growth Analysis

Earnings Trend: VKPP.F's earnings have grown by 14.2% per year over the past 5 years.

Accelerating Growth: VKPP.F's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: VKPP.F had negative earnings growth (-28.8%) over the past year, making it difficult to compare to the REITs industry average (8.1%).


Return on Equity

High ROE: VKPP.F's Return on Equity (9.3%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Vukile Property Fund's financial position? (This company is analysed differently as a bank or financial institution)


Financial Position Analysis


Debt to Equity History and Analysis


Balance Sheet

Inventory Level: VKPP.F has a high level of physical assets or inventory.

Debt Coverage by Assets: VKPP.F's debt is not covered by short term assets (assets are 0.2x debt).


Financial Institutions Analysis

Asset Level: VKPP.F's level of assets compared to its equity is low.

Allowance for Bad Loans: Insufficient data to determine if VKPP.F has a sufficient allowance for bad loans.

Low Risk Liabilities: VKPP.F reports no customer deposits, loans are made up entirely of externally borrowed funds.

Loan Level: Insufficient data to determine if VKPP.F has an acceptable proportion of non-loan assets held.

Low Risk Deposits: VKPP.F has advanced significantly more loans than the customer deposits it holds.

Level of Bad Loans: Insufficient data to determine if VKPP.F has an appropriate level of bad loans.


Next Steps

Dividend

What is Vukile Property Fund's current dividend yield, its reliability and sustainability?

9.50%

Current Dividend Yield


Dividend Yield vs Market

company9.5%marketbottom25%1.6%markettop25%4.1%industryaverage3.9%forecastin3Years10.5%

Current dividend yield vs market & industry

Notable Dividend: VKPP.F's dividend (9.5%) is higher than the bottom 25% of dividend payers in the US market (1.4%).

High Dividend: VKPP.F's dividend (9.5%) is in the top 25% of dividend payers in the US market (3.66%)


Stability and Growth of Payments

Stable Dividend: Whilst dividend payments have been stable, VKPP.F has been paying a dividend for less than 10 years.

Growing Dividend: VKPP.F's dividend payments have increased, but the company has only paid a dividend for 4 years.


Current Payout to Shareholders

Dividend Coverage: At its current payout ratio (81.5%), VKPP.F's payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: VKPP.F's dividends in 3 years are not forecast to be well covered by earnings (105.6% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

1.7yrs

Average management tenure


CEO

Laurence Rapp (48yo)

8.1yrs

Tenure

R20,285,989

Compensation

Mr. Laurence Gary Rapp, B Com (Hons), has been the Chief Executive Officer of Vukile Property Fund Limited since August 1, 2011. Mr. Rapp has been Executive Director at Vukile Property Fund Limited since A ...


CEO Compensation Analysis

Compensation vs Market: Laurence's total compensation ($USD1.34M) is below average for companies of similar size in the US market ($USD3.86M).

Compensation vs Earnings: Laurence's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Laurence Rapp
CEO & Director8.1yrsR20.29m0.42% ZAR5.1m
Gabaiphiwe Moseneke
Director of Transformation & Vukile Development Academy and Executive Director6.1yrsR5.81m1.07% ZAR13.1m
Laurence Cohen
CFO & Director0.2yrsno datano data
Itumeleng Mothibeli
MD of Southern Africa & Director0.2yrsno datano data
Johann Neethling
Director of Corporate Services & Company Secretary9.3yrsno datano data
F. Rootman
Asset Manager0yrsR908.41kno data
Bonnie Olivier
Senior Manager of Sales0yrsno datano data

1.7yrs

Average Tenure

43.5yo

Average Age

Experienced Management: VKPP.F's management team is not considered experienced ( 1.7 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Laurence Rapp
CEO & Director8.1yrsR20.29m0.42% ZAR5.1m
Gabaiphiwe Moseneke
Director of Transformation & Vukile Development Academy and Executive Director6.1yrsR5.81m1.07% ZAR13.1m
Laurence Cohen
CFO & Director0.2yrsno datano data
Itumeleng Mothibeli
MD of Southern Africa & Director0.2yrsno datano data
Renosi Mokate
Lead Independent Director1.3yrsR698.54kno data
Stefanes Booysen
Independent Non Executive Director7.5yrsR690.88kno data
Nigel George Payne
Chairman1.1yrsR757.75kno data
Peter Moyanga
Independent Non Executive Director15.3yrsR515.38kno data
Hymie Serebro
Independent Non Executive Director15.3yrsR552.88kno data
Babalwa Ngonyama
Independent Non-Executive Director1.5yrsR493.88kno data

3.8yrs

Average Tenure

51yo

Average Age

Experienced Board: VKPP.F's board of directors are considered experienced (3.8 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 14.6%.


Top Shareholders

Company Information

Vukile Property Fund Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Vukile Property Fund Limited
  • Ticker: VKPP.F
  • Exchange: OTCPK
  • Founded:
  • Industry: Diversified REITs
  • Sector: Real Estate
  • Market Cap: R18.354b
  • Listing Market Cap: R1.215b
  • Shares outstanding: 960.96m
  • Website: https://www.vukile.co.za

Number of Employees


Location

  • Vukile Property Fund Limited
  • 104 Oxford Road
  • 4th Floor
  • Johannesburg
  • Gauteng
  • 2198
  • South Africa

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
VKEJSE (The Johannesburg Securities Exchange)YesOrdinary SharesZAZARMar 2015
VKNNMSE (Namibian Stock Exchange)YesOrdinary SharesNAZARMar 2015
VKPP.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDMar 2015

Biography

Vukile Property Fund Limited (Vukile or the group) is a focused retail REIT, which was listed on the JSE Limited on 24 june 2004 (JSE code: VKE) and on the Namibian Stock Exchange (NSX) on 11 july 2007 (NSX code: VKN). Vukile’s market capitalisation was R17.2 billion on 31 march 2018 and its direct property portfolio was valued at R19 billion at year-end. There were 784766367 shares in issue at year end. On 1 April 2013, Vukile became the first property company to be awarded REIT status by the JSE Limited. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/09/30 00:53
End of Day Share Price2019/07/02 00:00
Earnings2019/03/31
Annual Earnings2019/03/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.