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Resilient fundamentals look solid ahead of financial results

Staff Writer
Estimated reading time: 2 minutes

Listed Real Estate Investment Trust (REIT), Resilient has published a pre-close update ahead of its financial results for the year ending December 2024.

The group said that retail sales across its South African portfolio saw a solid increase of 2.9% for the 10-month period ending October 2024, with a rolling 12-month increase of 3.6%.

Notable growth was achieved despite ongoing construction and asset management activities at several malls, including Mahikeng Mall, Tzaneng Mall, Diamond Pavilion, and Boardwalk Inkwazi.

However, turnover was impacted at Kathu Village Mall, Northam Plaza, and Tubatse Crossing due to a subdued mining industry performance.

Positive performance was seen at several shopping centres, including Jabulani Mall, where turnover surged by 15% following the introduction of a Pick n Pay franchise. At Mams Mall, the introduction of Unimart and strong performance by Spar contributed to a 13% growth in turnover.

As of November 2024, Resilient’s pro-rata vacancy rate stood at 2.4%, including planned vacancies due to ongoing asset management initiatives.

The company reported strong lease renewal performance, with 263,142m² of gross lettable area (GLA) renewed at an average 4.7% rental increase.

Additionally, new leases were secured for 34,210m² of GLA, reflecting a 15.9% rental increase over outgoing tenants.

Looking ahead, construction at Irene Village Mall to accommodate a Checkers Hyper has been delayed pending confirmation from Shoprite Checkers.

The extension of Tzaneen Lifestyle Centre remains scheduled for 2025, pending board approval, while The Village Klerksdorp is now expected to open in March 2025 following labour unrest.

As part of its commitment to sustainability, Resilient has made significant strides in reducing its reliance on grid electricity.

The company plans to increase its installed solar energy generation by 16.4MWp in 2024, bringing its total capacity to 76.5MWp, which will supply 34.2% of its total energy needs.

In Spain, the economic climate remains robust, bolstered by strong tourism, immigration, and foreign investment. This has led to increased consumer spending and tenant expansion. At Salera, a key property in the portfolio,

Resilient recorded 8.7% comparable sales growth for the nine months ending September 2024, with footfall increasing by 2.1%. The vacancy rate at Salera remains low at 0.1%, reflecting the strong demand for retail space in the region.

Resilient continues to hold a 30.4% stake in Lighthouse, benefiting from its election to receive 50% of the Lighthouse dividend as a scrip dividend.

The company also participated in Lighthouse’s R300 million equity raise, strengthening its position in the listed investment space.

Looking ahead, Resilient has provided updated guidance for its dividend for the 2024 financial year, expecting a dividend between 428 cents per share and 433 cents per share.

This guidance assumes that Lighthouse achieves its targets, there is no significant loadshedding, and that macroeconomic conditions remain stable without major corporate failures, the group said.

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