March 11 2025 16:00
Attacq, the JSE-listed Real Estate Investment Trust and development partner of Waterfall City, one of the country’s quickest growing nodes located in Midrand, is in a new phase of strength its management said on Tuesday, following the release of financial results for the six months to end-December 2024. The company whose flagship asset is Mall of Africa, the largest mall built in one phase on the African continent, grew its distributable income per share (DIPS) 49.1% to 55.0 cents and declared a 46.7% higher interim dividend of 44.0 cents.
CEO Jackie van Niekerk said Attacq was achieving strong financial and operating metrics because it had refined its portfolio and created beneficial partnerships especially in Waterfall with the likes of Sanlam and investor the government employees pension fund (GEPF).
“The period saw us continuing to execute against our Horizon 2030 strategy. The all-round solid performance for this half demonstrates our commitment to being a leading precinct owner and developer, creating vibrant, sustainable spaces for communities and businesses. Our efforts are reflected in our increased gross revenue and rental income achieved, improved cost-to-income ratio from 25.4% to 22.4% and the new blue-chip clients attracted to our precincts,” said van Niekerk.
Attacq’s chief financial officer Raj Nana said the company was in a healthy place financially.
“Our strategic growth trajectory will continue into the second half, backed by our robust balance sheet, which was supported by a successful initial public auction under our domestic medium term note (DMTN) programme and strategic debt refinancing undertaken during the period,” he said.
Attacq made an upward revision to its full-year distributable income per share (DIPS) guidance to between 24.0% and 27.0%, driven by several factors.
“The full-year benefit of implementing our Waterfall City transaction with the GEPF and the acquisition of the remaining 20.0% of Mall of Africa will contribute significantly to the Groups continued growth,” he said.
“Our net operating income is growing due to increased revenue from managing co-owned properties, as well as higher market rentals. Furthermore, the impact of our installed PV systems underway will support the increase in electricity recovery ratio and improve operational resilience,” he said.
DIPS from Waterfall City rose 10% to 26.3 cents per share, driven by higher net operating income and increased interest in Mall of Africa. DIPS from the rest of South Africa, surged 125% to 29.7 cents per share, and significantly reduced net finance costs.
Gross revenue rose 6.2% to R1.5bn billion with group rental income having grown 15.1% to R1.5bn, mainly because of higher rental escalations and an additional 20% interest in Mall of Africa. Like-for-like rental income increased by 7.7%.
Mall of Africa
Attacq delivered positive net operating income growth of 9.2%. The installation of additional rooftop PV systems and real-time utility monitoring through the Smart Utility Hub (SUH) led to an improved municipal recovery ratio of 94.6%, up from 88.6%.
Attacq’s commitment to infrastructure investment and a precinct-focused approach attracted new clients that needed offices with “operational resilience and cost efficiency but also prioritise wellness and safety of employees”, the group said.
Over the past six months, Attacq’s shared workspace collaboration hubs signed up organisations such as Pragma, Organon, Nokia, Chieta, Bayer and Siemens Energy with the occupancy rate for collaboration hubs post period end increasing to 89.5% from 87.7%.
Attacq introduced 15 new stores into its retail centres and 41 were refurbished, welcoming brands such as United Colors of Benetton, Decathlon, and Freedom of Movement. The retail portfolio reported a rolling 12-month trading density growth rate as at December 31 2024 of 4.1% during the period with trading densities beating the Clur Shopping Centre Index over a 2-year period.
Attacq is rapidly scaling its backup water capacity in response to South Africa’s growing water challenges. By 2026, all Attacq’s assets will have backup water capacity between two and five days, ensuring water security across the portfolio and supporting business continuity and long-term resilience.
Renewable energy is expected to make up 9.3% of total consumption in the 2025 financial year, up from 6.8% in June 2024.
Boosting efficiency with digital integration, its SUH monitors energy, water, and renewable production in real-time. By June 2025, Attacq will install 749 smart water meters across the portfolio and integrate them with SUH for better resource management and resilience.
During this period, Mall of Africa became the world’s largest retail mall to achieve EDGE Advanced certification, recognising its 53.0% energy savings and 28.0% reduced water usage. At MooiRivier Mall in Potchefstroom, refurbishments, water solutions, rooftop PV systems, and upgraded parking have led to a 24.1% increase in trading density and a 19.4% rise in the mall’s value over three years.
“We are proud of our strong performance this year, which reflects our commitment to sustainable growth and strategic execution. Our focus on client satisfaction, operational efficiency, and innovative developments, have driven tremendous growth, delivering value to our stakeholders and enhancing the client experience,” said van Niekerk.
Attacq’s share price has climbed 32.47% on a one-year basis to R12.73.
247@propertyflash.co.za
