Attacq celebrates 10-year listing anniversary with finalised GEPF transaction and increased dividend to shareholders
- R2.7 billion investment in Waterfall City by strategic investment partner, Government Employees Pension Fund unconditional with implementation in October 2023
- Full year dividend growth of 16.0% to 58.0 cents per share
- Distributable income per share increased by 14.5% to 71.9 cents
- Interest cover ratio improved to 1.69 times from 1.58 times
- High occupancy and collection rates of 92.5% and 100.7%, respectively
- Weighted average trading density growth of 12.7%
- Developments completed at Waterfall City totalling 30 586m2 of gross lettable area (GLA), with a total cost at completion of R543.3 million
28 September 2023 – Attacq Limited (“Attacq”), the JSE-listed REIT and strategic development partner in Waterfall City, today announced a robust set of results for the full-year ended 30 June 2023. The company reported full year dividend growth of 16.0% to 58.0 cents per share, with distributable income per share increasing by 14.5% to 71.9 cents.
Operationally, Attacq performed strongly with both occupancy and collection rates remaining high at 92.5% and 100.7% respectively, as the Group continues to experience record trading density, further delivering against its proven multi-hub strategy. Positive retail trade in Mall of Africa resulted in a 10.8% growth in rental income for the year supported by 21 new brands being introduced. This resulted in a 91.6% increase in turnover rental and a 71.4% increase in third party income at Mall of Africa, which is becoming a preferred destination for exhibitions and advertising.
Jackie van Niekerk, Attacq CEO, commented: “This year has been transformative for Attacq on so many fronts – from building and growing community partnerships to presenting and delivering a landmark equity transaction with our partners at the GEPF, and achieving key ESG milestones. As a purpose-led business, we think differently about real estate, and this is evident in the successful execution of our strategy this year.”
Attacq’s unique South African precinct focused portfolio is diversified across different asset classes and geographies. Several key development highlights in the year included the increased density at the Plumblink head office and distribution centre as well as the completion of Phase 2 of Ellipse Waterfall, the award-winning luxurious residential development in the heart of Waterfall City, adding an additional 30 586m2 of GLA.
Raj Nana, Attacq CFO, said: “Our balance sheet remains strong, and we are particularly pleased that post the implementation of the GEPF transaction, the Group’s loan-to-value (LTV) will reduce to 26%. Our DPS growth of 16.0% is a considerable achievement in the current environment.”
A growth-focused portfolio
Waterfall City, the Group’s flagship retail, residential, logistics and office precinct, continues to perform well against all metrics, and bears testament to the success of Attacq’s precinct focus strategy, where Attacq has uniquely created a smart, safe, and sustainable city. The ability to roll-out reliable infrastructure has assisted in mitigating local government service delivery challenges, and the City has continued to attract local and global blue-chip industrial and office tenants including Cisco, Sage, Cotton On, Vantage Data Centres, Dimension Data, Accenture, Pfizer, Cummins and Dis-Chem.
In addition, Attacq is in the process of increasing its investment in Waterfall Junction from 23.57% to 50.0%, which will soon be launched for top structure development on the completion of servicing phase 1 (total size 156 000m2 of bulk).
A leading ESG-focused REIT
Attacq’s ESG initiatives remain best-in-class with a special focus during the year on energy, water and waste management. The Group’s recently launched Attacq Energy initiative aims to design and implement cost-effective, off-grid and sustainable energy resources to achieve its target of increasing its renewable energy consumption to more than 25% of the total consumption of the energy mix.
The Group also launched its proactive water management plan focused on improving water efficiencies and consumption, and in doing so, reduce the cost of occupancy.“I am exceptionally proud that all of Attacq’s properties are able to operate during loadshedding. Our team has displayed resilience throughout the year and is reflective of the inclusive, community and stakeholder-led approach we have fostered internally and externally,” concludes Van Niekerk.