Property group Attacq, which is bullish about its prospects despite a tough economic climate, has reported a double-digit rise in distributable income for the year to end-June.
The real estate investment trust (Reit) declared a 25.6% increase in distributable income per share to 108.3c, while bringing its full-year dividend to 87c per share — a 26.1% increase — cementing the group’s position as a top performer for the financial year in the listed property space.
Attacq CEO Jackie van Niekerk told Business Day: “A major driver of the rise in distributable income was the full-year benefit of the Waterfall City transaction with the Government Employees Pension Fund (GEPF), which allowed us to significantly reduce our debt and lower our cost of funding.
“That’s why our gearing ratio is now at 25%, positioning us to unlock further development opportunities across the portfolio and positively impacting our income.”
Among developments in the pipeline is the planned conversion of about 49,000m² of office rights into 1,150 residential units on the LP12 site, a strategic shift that will also pave the way for a fourth entrance into Waterfall City’s inner core. The project forms part of a conditional land sale to Balwin Properties.
Leasing activity and growth in market rentals were robust, boosted by the full-year benefit of the landmark Waterfall City transaction, in which the GEPF acquired a 30% stake in Attacq’s core development vehicle, the group said.
“Development activity across Waterfall City continues to create long-term value. We remain focused on driving sustainable growth and delivering quality spaces in SA that meet the evolving needs of our communities,” the group said.
The group now owns Mall of Africa outright after acquisition of the remaining 20% stake in June 2024. The deal, funded through the disposal of its MAS shares and additional debt, has now been fully reflected in the group’s financial performance, it said.
During the period, Attacq also exited its rest of Africa retail investments, exchanging them for a 4.47% stake in Lango Real Estate.
Occupancy across the group came in at 91.6% and rents were collected in full. Trading density rose 5%, while gearing improved to 25.3% and interest cover climbed to 2.95 times. The group also stepped up its green push, installing 3.3MW of peak power output in rooftop solar, with renewables now making up 9.1% of its energy mix.
It cut finance costs by refinancing R5.9bn of debt at lower margins, while the issuance of R760m in notes drove down the group’s average cost of debt even further.
Attacq’s balance sheet strengthened, with total assets rising 7.3% to R24.6bn and net asset value (NAV) increasing 6% to R16.6bn.
“Our distributable income per share has grown by more than 50% from two years ago, which is a remarkable performance.”
Looking ahead, the group said it would enter the 2026 financial year with solid foundations for growth. Returns from the Waterfall City development, increased solar energy use and lower finance costs are expected to drive distributable income per share growth of 7%-10%, while it planned to maintain an 80% payout ratio.
Update: September 16 2025
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