South African REIT Attacq increased its full-year dividend by 17.2% to R1.02 a share, while normalised distributable income per share rose 15.5% to R1.25, supported by higher occupancy and rental renewals.
Attacq, which owns Mall of Africa and has Waterfall City in Midrand as arguably its flagship project, reported occupancy of 94.9% across its completed South African portfolio, up from 91.6% a year earlier.
At Waterfall City, 8 253 square metres of gross lettable area had been completed by the end of June. The company also has about R2.2bn of development activity under way after year-end, including a conference centre and hotel, a 20-storey residential tower and an expanding logistics precinct.
“We are building places where people want to be, and quality spaces across South Africa that meet the evolving needs of our communities,” said Attacq CEO Jackie van Niekerk.
Revenue increased 9.25% to R3.13bn, driven by a 6.46% rise in rental income. Attacq also received a R52.2m municipal credit during the period.
Operating profit rose 1% to R1.56bn. However, profit was affected by a fair-value adjustment on investment property, which declined to R745.3m from R935m.
Attacq installed 18.5MW of photovoltaic systems across its portfolio. These systems now generate 13.7% of the group’s total energy consumption.
Mall of Africa completed its 10-year renewal cycle and achieved rental growth of 5.7% on renewals. The mall’s Izinga Transport Hub opened in March, bringing taxi, food and online-delivery services together in a purpose-built facility with enclosed waiting areas, security, charging stations, free Wi-Fi and ablution facilities.
Attacq plans to convert the previous transport site into a Pantry by Marble premium convenience store, which is expected to open in the first quarter of 2027.
Attacq is also expanding the City Lodge hotel at Waterfall City, originally developed in 2013. The R62.7m project will add 1 545 square metres and 55 rooms in response to rising demand.
Major occupiers at Waterfall City include Tiger Brands, Boogertman + Partners, iOCO, Novonesis, Huge Group and Sinotile. The precinct recorded a client renewal rate of 86.9%.
Attacq CFO Peter de Villiers said the results reflected disciplined capital management.
The group’s weighted average cost of debt fell to 8.7% from 9.2%, while gearing improved to 25%. Gross interest-bearing debt increased to R7bn from R6.7bn a year earlier.
“Our capital structure gives us the headroom to continue developing Waterfall City and allocating capital in a disciplined manner, which will flow through to future distributable income,” he said.
Attacq shares fell 1.23% to R16.93 in midday trade on the JSE on Tuesday. The stock was down 0.17% over the previous 30 days and 3.33% over the previous 90 days.
THE NATIONAL