September 19 2025 14:30
SOUTH AFRICA
This week JSE-listed diversified landlord Attacq released financial results for the year to end-June 225, with its distributable income per share (DIPS) rising 25.6% to 108.3 cents and a full-year dividend of 87.0 cents per share declared. This represented growth of 26.1%. It showed that Attacq is benefitting from managing its underlying portfolio well amid lower interest rates.
Net operating income (NOI) increased 14.0%, and for the first full financial year, Attacq enjoyed benefits from the Government Employees Pension Fund (GEPF) investment in the group and in owning 100% of Mall of Africa.
The mall is SA’s largest shopping centre built in one phase. High occupancy and collection rates of 91.6% and 100.0% respectively were achieved.
The group’s retail assets achieved growth in weighted average annual trading density of 5%. Mall of Africa mustered 4.9% growth in its annual trading density as it attracted 17-million visitors for the first time in a 12 month period.
Developments under construction and pipeline development at Waterfall City totaled 90 644m2 of GLA with a cost of R2.3bn. The group also lowered finance charges and strengthened its interest cover ratio to 2.95 times which had been a long-term goal. Attaacq installed 3.3 MWp of rooftop PV systems, with renewable energy contributing 9.1% of total energy mix.
“Over the past year, we have navigated sustained headwinds and a challenging operating environment by prioritising disciplined capital allocation, net operating income growth, cost containment, and a thriving working culture that have delivered an exceptional set of results. We are encouraged by the growth in market rentals across all sectors, and leasing activity was robust with the full-year benefit of the landmark Waterfall City transaction and 100% ownership from Mall of Africa for the year,” CEO Jackie van Niekerk said.
She said development activity across Waterfall City further was creating long-term value.
“We remain focused on driving sustainable growth and delivering quality spaces in South Africa that meet the evolving needs of our communities,” she said.
For the 2026 financial year DIPS are expected to grow between 7.0% and 10% with a dividend payout ratio of 80%. This is high relative to other listed property funds in SA.
Raj Nana, Attacq CFO, said he and his team were pleased with a strong set of results.
“Attacq’s 2025 financial reflect the continued execution of our focused strategy, quality portfolio, and disciplined capital allocation. Attacq’s market leading financial performance follows on from our previous financial year, which was also exceptional. DIPS increased 25.6% to 108.3 cents, underpinned by improved net operating income, lower net finance costs, and higher municipal recoveries, supported by our rooftop PV roll-out,” said Nana.
He said the successful execution of a debt strategy, including another major refinance, the R760m raised under a DMTN programme and a first long-term credit rating of A+[ZA] resulted in the average cost of debt reducing by 80bps from the prior year, a low gearing level of 25.3% and interest cover ratio of 2.95 times.
“Our DIPS has grown by more than 50% from two years ago, which is a remarkable performance. Looking ahead, Attacq is in a very strong position going into the next financial year as we aim to continue to deliver strong returns for our shareholders,” said Nana.
alistair@propertyflash.co.za
