Real estate investment trust Attacq gave an optimistic 2025 outlook, raising its guidance for shareholder payouts as the benefits of a R2.7-billion deal filter through while rental collections approach 100%.
This came as the group reported strong interim financial results, with interim distributable income per share (DIPS) increasing by 49.1% to reach 55.0c, and dividend growth of 46.7% to 44.0c per share for the six months ended December 31 2024.
In 2023 Attacq, best known for developing high-end properties in Waterfall City, struck a deal with the Government Employees Pension Fund (GEPF) — the custodian of roughly R3-trillion in public servants pensions — under which the latter pumped in R2.7bn for a 30% stake in the region that is home residential estates, Africa’s largest mall and headquarters of companies such as PwC, Dis-Chem and Cisco.
As a result, Attacq raised its full-year shareholder payout guidance, raising it from as much as 20% to between 24% and 27%, thanks to several key factors, including the acquisition of the remaining 20% stake in Mall of Africa.
Some interesting retail trends in its hubs include a 21% to 67% increase in travel agency sales, an 11% rise in watch purchases and a 38% growth in cosmetics and perfumery, highlighting a shift towards discretionary spending.
Checkers generated R1.48bn in sales across its retail-experience hubs, marking a 6.1% increase over the past 12 months. Meanwhile, Woolworths recorded R1.63bn in sales, reflecting a 7.6% growth on a rolling 12-month basis.
The Mall of Africa owner added 15 new stores and revamped 41, attracting brands like United Colors of Benetton, Decathlon and Freedom of Movement. This resulted in a 4.1% growth in trading density for the 12 months ending December 31 2024, outperforming the Clur Shopping Centre Index over two years
Attacq CEO Jackie van Niekerk said their efforts were paying off, with noticeable increases in gross revenue and rental income, an improved cost-to-income ratio (down from 25.4% to 22.4%), and the addition of new blue-chip clients to their precincts.
“The period saw us continuing to execute against our Horizon 2030 strategy,” she said. “The all-round solid performance for this half demonstrates our commitment to being a leading precinct owner and developer, creating vibrant, sustainable spaces for communities and businesses.”
Attacq’s Horizon 2030 strategy focuses on long-term growth by expanding its property portfolio, boosting sustainability efforts and maximising shareholder value.
The group’s overall occupancy rate was 92% and increased to 94% after the interim period, with collecting virtually every rent. Additionally, gearing stood at 25.9%, while the interest cover ratio improved to 2.91 times.
Attacq is moving forward with ongoing developments and has an approved pipeline at Waterfall City, covering 43,988m² of gross lettable area (GLA). This includes the 19-storey residential tower, Aspire, set to be developed in collaboration with Tricolt.
Attacq CFO Raj Nana said that their net operating income is rising due to higher revenue from managing co-owned properties and increased market rentals.
Additionally, the ongoing installation of PV systems will help boost the electricity recovery ratio and enhance operational resilience.
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