Attacq, the JSE-listed Real Estate Investment Trust (REIT), has reported a strong performance for the six months ended 31 December 2024, with distributable income per share (DIPS) increasing by 49.1% to 55.0 cents, compared to a 2.8% increase in the previous interim period.
The company also saw a significant rise in its dividend per share (DPS), which climbed 46.7% (Dec 2023: 3.4%).
A key factor behind the group’s strong performance was the full benefit of the landmark R2.7 billion Waterfall City transaction, which saw the Government Employees Pension Fund (GEPF) acquire a 30% shareholding in Attacq Waterfall Investment Company Proprietary Limited (AWIC) in October 2023.
Unlike the previous interim period, which only benefited from two months of this transaction, the full period impact contributed significantly to the group’s results.
In addition to increased third-party asset and property management fees, higher rental escalations, and lower net finance costs from debt repayments, Attacq also benefitted from the acquisition of the remaining 20% stake in Mall of Africa on 28 June 2024.
The group also saw higher net municipal and diesel recoveries, bolstered by fewer days of loadshedding and the implementation of rooftop photovoltaic (PV) systems.
Attacq’s development pipeline remains strong, with 43,988m² of gross lettable area (GLA) under construction and valued at R1.6 billion at the period’s end.
Bankable sales for Ellipse Waterfall exceeded 90% across all three phases, and the launch of a new residential scheme, Aspire, is set for Q4 FY25.
Additionally, Attacq disposed of its Rest of Africa retail investments in exchange for a 4.3% interest in Lango Real Estate Limited.
The group’s total assets increased by 4.0% to R23.8 billion, while total liabilities rose by 9.3% to R7.9 billion.
Net asset value (NAV) increased by 1.5% to R15.9 billion, reflecting net positive fair value adjustments on investment properties and capital expenditure on developments under construction.
Earnings per share surged by 169.4% to 100.2 cents, and headline earnings per share increased to 53.7 cents. Gross revenue rose by 6.2% to R1.5 billion, while rental income increased by 15.1%, driven by rental escalations and the Mall of Africa acquisition.
Attacq’s board declared an interim gross cash dividend of 44 cents per share, with full-year DIPS guidance raised to between 24% and 27%.
Key Highlights for the Period:
-Interest cover ratio improved to 2.91 times (Dec 2023: 1.93 times)
-Group gearing increased marginally to 25.9% (Dec 2023: 25.3%)
-Occupancy decreased to 91.9% (Dec 2023: 93.7%)
-Development activity at Waterfall City amounted to 43,988m² of GLA
Water resilience:
Attacq is advancing its water resilience strategy by investing R10 million in the installation of 749 smart water meters across its portfolio by June 2025. These meters will integrate into the Smart Utility Hub (SUH), enabling real-time monitoring of water and energy usage.
The SUH platform allows for data-driven decision-making, tracking water consumption, renewable energy production from rooftop PV systems, and generator outputs. This integration boosts operational efficiency and supports sustainable resource management across Attacq’s properties, including Eikestad Mall, Glenfair Boulevard, Lynwood Bridge, and Waterfall Corner.
As part of its commitment to water resilience, Attacq aims to reduce dependence on municipal supplies and address risks related to water scarcity and climate change. The company is expanding its backup water capacity, with 30.2% of its gross leasable area (GLA) already equipped with over five days of backup water.
This will increase to 72.2% of its GLA, with storage capacity growing from 6,777 kL to 12,583 kL.
These initiatives are designed to ensure emergency water availability, minimize disruptions, and promote sustainability for tenants and communities.
Attacq’s share price is up 30% over the past year, but is down 7% in the year-to-date period.
