Resilient, a JSE-listed retail-focused Real Estate Investment Trust (REIT) announced its audited financial results for the year ended December 2023 ahead of guidance.
The group strategically invests in dominant retail centres, characterised by a minimum of three anchor tenants and predominantly leased to national retailers.
The company's focus lies in regions with robust growth fundamentals, boasting a leading presence in target markets with strong grocery and flagship fashion offerings.
The group's board declared a dividend of 203.02 cents per share for the six months ended December 2023.
The total dividend for FY2023 amounts to 406.24 cents per share, aligning with the guidance provided in the interim results.
Notably, the results exceeded expectations, primarily due to lower-than-anticipated load shedding in the portfolio, particularly during the months of November and December.
However, the total dividend for FY2023 reflects a 7.3% decrease compared to the previous year, attributed to higher interest rates and lower distributions from investee companies.
Financial Highlights
Comparable net property income (NOI) in the South African property portfolio increased by 7.1% for the year.
Comparable sales experienced a growth of 5.2%, with notable performances in various provinces.
Rentals on lease renewals and new leases increased by an average of 7.9%.
Resilient is invested in 27 retail centers with a gross lettable area of 1.2 million square meters, boasting a low vacancy rate of 1.5% at December 2023.
Energy Projects
Resilient said it continues to commit to sustainable energy practices, surpassing its target by increasing its generation capacity to 59.9MWp by December 2023, constituting 27.7% of its total energy consumption.
The company plans to further increase its installed capacity by 16.5MWp during FY2024, in line with its long-term energy strategy.
Management remains focused on ensuring the portfolio's defensive positioning against challenges such as high unemployment and infrastructure issues, anticipating continued strong performance in FY2024.
Shares in Resilient are down around 6% over the past year.
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