Resilient’s retail sales rise as it powers ahead with solar plan

Property group Resilient Reit has reported firmer sales, robust leasing metrics and rapid progress on its ambitious energy rollout, even as consumers continue to grapple with rising living costs.

Retail sales across the portfolio rose 5.6% in the 10 months to end-October — or 5.3% on a rolling 12-month basis — with the company stripping out the distortion from Mahikeng Mall’s extension, which only came online in May last year, the group said in its preclose update for the year to end-December.

It forecasts growth in distribution by least 10%, buoyed by the 50 basis points in rate cuts delivered in the second half of the year, as well as more upbeat projections from offshore operations in Lighthouse.

“Our guidance assumes electricity savings come through, Lighthouse meets its targets, the economy holds steady and tenants can absorb rising utility and rates costs,” the group said.

Resilient’s aggressive push to reduce its dependence on Eskom continues to pay off. The group added 11.5 megawatt peak (MWp) solar capacity this year lifting its total to 88MWp, which is expected to meet almost 40% of its power needs.

Battery storage — essential for smoothing consumption and enabling more solar build-out — increased by 8.5 megawatt hours (MWh) to 20.7 MWh, with returns coming in ahead of forecast as utility and municipal charges keep rising.

Development activity is also gathering pace. The expansion of Irene Village Mall, set to bring in Checkers Hyper, Dis-Chem and several other national retailers, is on track for completion by August, while bulk earthworks have begun on the 22,000m² extension at Tzaneen Lifestyle Centre, scheduled for the third quarter of 2027.

Vacancies remained at 1.9%, including spaces intentionally left open for asset-management initiatives.

In Spain, flagship expansions are under way at Salera, where Stradivarius and Bershka are preparing to open new concept stores in the first quarter of the new year. Comparable sales jumped 8.5% in the nine months to end-September.

In France, subdued GDP growth belies a stronger retail showing in the company’s malls, which grew sales 3.2% over the same nine-month period — well ahead of the country’s 0.9% inflation rate.

A flurry of new openings — including Adidas at Saint Sever, Darty at Docks 76, Pull&Bear at Docks Vauban and Mango, Lovisa and Kraft at the extended Rivetoile — continue to refresh tenant mixes across the portfolio.