Retail-focused property group Resilient Reit has increased its dividend guidance for the 2024 financial year after reporting that retail sales increased by 2.9% during the 10-months ended October.
When the group released interim results in August, it said it expected distributions of about 428c per share for the year ending December. It has now increased this guidance to between 428c and 433c per share.
It added that the updated guidance assumes that Lighthouse achieves its guidance, there is no significant load-shedding, no further deterioration in the macroeconomic environment and no major corporate failures occur. Resilient owns 30.4% of Lighthouse.
Retail sales increased by 2.9% during the 10-month period ended October and by 3.6% on a rolling 12-month basis. This growth was achieved despite construction and asset management activities at Mahikeng Mall, Tzaneng Mall, Diamond Pavilion and Boardwalk Inkwazi, it said in a pre-close update on Wednesday.
The subdued performance of the mining industry, particularly during the last five months, has negatively affected turnover at Kathu Village Mall, Northam Plaza and Tubatse Crossing.
Jabulani Mall achieved turnover growth of 15% after the introduction of a franchised Pick n Pay store. The performance of Spar and the introduction of Unimart at Mams Mall contributed to the 13% growth in turnover at this shopping centre, it said.
Resilient’s pro-rata share of vacancies, inclusive of planned vacancies as a result of asset management initiatives, was 2.4% in November.
To date, lease renewals over 263,142m2 of gross lettable area (GLA) were concluded on average 4.7% higher than the expiring rentals. New leases were concluded for 34,210m2 of GLA on average 15.9% higher than the rentals of the outgoing tenants. In total, rentals for renewals and new leases increased on average by 6.1%.
The start of construction at Irene Village Mall to accommodate Checkers has been delayed pending confirmation from Shoprite Checkers to extend the format to a Checkers Hyper.
Construction on the extension of Tzaneen Lifestyle Centre is still expected to commence in 2025 and remains subject to board approval. As a result of labour unrest, The Village Klerksdorp is anticipated to open at the end of March 2025.
Installed solar energy generation is expected to increase by 16.4 megawatt peak (MWp) in 2024, bringing total capacity to 76.5MWp as the group reduces its reliance on grid-provided electricity by continuing the expansion of its solar and battery installations.
This enhanced capacity is projected to supply 34.2% of Resilient’s total energy consumption.
The automated mini-grid system at Irene Village Mall has been completed with the system at The Grove Mall expected to be completed in early 2025. Resilient is currently evaluating the installation of five additional battery systems.
The Salera shopping centre in Castellón, Spain, which Resilient and Lighthouse acquired in January, reported comparable sales growth of 8.7% for the nine months ended September, with footfall increasing by 2.1%.
In France, sales and footfall have improved since June with sales growth of 3.9% being recorded in the third quarter, but sales for the nine-months ended September declined by 0.5%. Vacancies in the French portfolio remained at 7.8%. Negotiations are under way for some of the large vacant units in this portfolio, it said.
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.