Resilient REIT, a retail-focused Real Estate Investment Trust (REIT), has reported a solid performance for the year ended December 2024, including an 8.4% increase in its total dividend.

The board has declared a final dividend of 221.28 cents per share for the six months ending December 2024, bringing the total dividend for FY2024 to 440.25 cents per share.

This represents an 8.4% increase from FY2023 and exceeds the upper end of guidance by 1.7%.

Resilient’s South African portfolio saw comparable net property income (NPI) growth of 7.5% for the year, despite accelerating maintenance and inflationary pressures.

The company’s energy strategy, which reduces reliance on the grid and mitigates rising electricity costs, played a crucial role in limiting the impact of loadshedding.

Retail sales in South Africa increased by 3.5%, with notable contributions from Jabulani Mall (up 13.6%) and Mams Mall (up 13.1%).

Resilient owns 27 retail centres across South Africa, covering a total GLA of 1.2 million square metres.

Despite ongoing construction and asset management at Boardwalk Inkwazi, Diamond Pavilion, Mahikeng Mall, and Tzaneng Mall, its tenants’ retail sales grew by 3.5% in the year ending December 2024.

However, the slowdown in the mining sector, particularly in the second half of the year, had a negative impact on turnover at Kathu Village Mall, Northam Plaza, and Tubatse Crossing.

Leasing activity remained strong, with lease renewals over 278,542m² of gross lettable area (GLA) secured at 4.7% above expiring rentals. New leases for 34,210m² of GLA were concluded at 15.9% higher rents compared to outgoing tenants.

Resilient’s offshore investments also boosted distributable earnings. Despite a 4.9% decline in euro distribution from Lighthouse Properties, the company benefited from forward exchange contracts, increasing the rand equivalent distribution by 4.1%.

The French portfolio recorded a 14.3% increase in NPI, and in Spain, Salera Centro Comercial posted strong sales growth of 12.8%.

Resilient’s focus on reducing grid dependency is evident in its expanded solar capacity, which increased by 16.4MWp in FY2024, providing 34.2% of total energy consumption.

The rollout of automated micro-grid systems and battery storage continues to optimize energy management, with plans for further growth in FY2025.

The company is also addressing water supply interruptions by working to secure 2.5 days of backup water storage at each of its shopping centres.

The property group’s property portfolio saw a 5% increase in the value of its South African assets, while its French portfolio experienced a slight decline.

Looking ahead, the board forecasts a 5.5% increase in distribution to 464.46 cents per share for FY2025, driven by energy savings, asset management, and stable leasing.

Shares in the group are flat in the year-to-date, but are still up strongly (29%) over the past 52 weeks.