Attacq Limited delivers 19.0% growth in dividend per share, despite a challenging environment supported by purpose driven strategy to deliver sustainable growth
- Distributable income per share increased by 19.9% to 86.2 cents
- Full-year dividend growth of 19.0% to 69.0 cents per share (cps)
- Gearing improved to 25.4%, and interest cover ratio improved to 2.31 times
- Occupancy increased to 92.8%, and collections remained high at 100.2%
- Developments under construction and approved pipeline totalling 43 766m2 of gross lettable area (GLA) at Waterfall City with a total cost of R1.7 billion
- Installed 12 rooftop PV systems totalling 2.28MWp
- Long-term and short-term GCR credit rating of A+[ZA] and A1[ZA] respectively with a stable outlook achieved
10 September 2024 – Attacq Limited (“Attacq”), the JSE-listed REIT (Real Estate Investment Trusts) and strategic development partner of Waterfall City, today announced a robust set of results for the full year ending 30 June 2024. The company reported full year dividend growth of 19.0% to 69.0 cents per share, with distributable income per share increasing by 19.9% to 86.2 cents.
Operationally, Attacq delivered a solid performance, with the occupancy rate rising to 92.8% and collection rates remaining high at 100.2%. The group maintained its focus on being a client-focused, innovative, and trusted real estate business, prioritizing client needs and satisfaction in its operations.
The group credits its success to a strong long-term strategy, consistent execution against it, and commitment to it.
Jackie van Niekerk, Attacq CEO, commented: “This financial year, we concentrated on executing against our strategy, which included concluding key deals over this period. We achieved a significant milestone with the R2.7 billion Waterfall City transaction, completed in October 2023. In this deal, GEPF acquired a 30% stake in Attacq Waterfall Investment Company Proprietary Limited (AWIC). This strategic partnership provides additional capital, facilitating the ongoing development of Waterfall City.
We also strategically exited our minority investment in MAS P.L.C and re-invested the proceeds in the acquisition of the remaining 20% of Mall of Africa that we did not own. Mall of Africa is a key asset, which we now own, control and manage 100% of, with continued high growth potential as an anchor to the growing Waterfall City precinct. During this financial year, we repurchased 5.4 million Attacq shares, an average of R9.35. Our dealmaking extended to a further 25% acquisition in Waterfall Junction, an excellently located new logistics precinct in which we now own 50%, with an effective share of 313 791m2.”.
Raj Nana, Attacq CFO, said: “On all reported metrics, the group performed exceptionally well. In addition to the 19.9% growth in distributable income per share, our balance sheet was further strengthened – gearing of 25.4% and an interest cover of 2.31x provides us with the ability to capture the growth from our development pipeline, which includes Waterfall Junction that has had strong enquiries despite not yet launching the development. Our strategy to exit investments that we do not control was reflected in Attacq entering into a binding sale agreement post balance sheet date to dispose of all of our Rest of Africa retail investments. We are also proud about delivering against our debt strategy which has resulted in lowering our cost of debt. The next phase is to enter the debt capital markets with a listed, rated domestic medium term note programme, for which we are targeting Q2 FY25 and this is supported by our recent credit rating of A+ [ZA] by credit rating agency GCR.”
Positioned for Sustainable Growth
With developments under construction and an approved pipeline totalling 43 766m2 of gross lettable area (GLA) (total share, not effective share) at Waterfall City, which will cost R1.7 billion, Attacq is poised for ongoing growth.
Waterfall City remains a premier destination for work, living, and play in the heart of Gauteng, strategically located within South Africa. It provides Attacq with a diverse development pipeline to create smart, safe and sustainable spaces. On 30 June 2024, the group held 1 116 723m² (Jun 2023: 860 655m²) of effective development rights after increasing its investment in Waterfall Junction from 23.57% to 50.0%.
Attacq’s retail portfolio has seen the 12-month weighted average trading density increase by 5.8%. Mall of Africa continues to surpass expectations by serving as a retail, entertainment, and dining destination for a diverse customer base. In addition, there has been an increase in demand for the collaboration hub spaces, leading to growth in market rentals, particularly in Waterfall City and the Lynwood Bridge precinct.
The group announced that next year’s distributable income per share guidance is growth of between 17% and 20%, with a dividend payout ratio of 80%.
Structured Strategic Vision
Attacq introduced Horizon 2023, its vision for the future, which is centred around building a purpose-driven business supported by clear business objectives of long-term growth through a sound capital structure, people focus, operational excellence through an integrated digital business, client focus, and having a positive impact on Attacq’s communities and environment.
Attacq remains committed to prioritizing initiatives that allow clients and shoppers to enjoy their spaces without disruption. The group has strengthened its water resilience by expanding backup water supplies, improving risk mitigation strategies, and implementing real-time water usage monitoring through its integrated digital platform.
Attacq was recently recognised in the industry, winning the SAPOA (South African Property Owners Association) Property Development Award for Innovative Excellence in the Industrial Development category.“At the heart of our business is the commitment to creating a positive impact in our spaces and communities and continuing to generate sustainable value for all stakeholders. I am proud of the results we delivered and our constant aim to solve client and shopper needs through innovation,” concludes Van Niekerk.