March 17 2026 13:00
MIDRAND, SOUTH AFRICA
Last week JSE-listed Attacq released financial results for the six months to end-December 2026 wherein it reported income growth that suggested that listed property landlords are enjoying a sustained recovery.
The JSE-listed real estate investment trust and strategic development partner of Waterfall City, reported distributable income per share (DIPS) growth of 9.6% to 60.3 cents for the reporting period.
It declared an interim dividend of 48.0 cents per share, and raised its full-year guidance to between 11% and 14%.
“Our interim results reflect continued delivery against our strategic priorities. Our portfolio continues to perform strongly, and we are seeing the benefit in our performance. Market rentals are growing, our development pipeline is active, and our balance sheet is in good shape. We are confident that we are firmly positioned as a catalyst for sustainable growth driving value for our stakeholders,” CEO Jackie van Niekerk said.
Attacq’s DIPS increased 9.6% to 60.3 cents (December 2024: 55.0 cents), driven by contractual rental escalations, improved occupancy levels, income from newly developed buildings, and lower net finance costs. Gross revenue increased 8.9% to R1.6bn and rental income rose 4.9% to R1.5bn. Net operating
income increased 5.2% to R936.9m compared with 16.8% growth to R890.3m in the comparative 2024 period, and, on a like-for-like basis, rose by 5.7%.
Total assets increased to R25.2bn, with the net asset value (NAV) attributable to equity owners of Attacq amounting to R13.5bn, equivalent to R19.32 per share.
During the interim period, the JNB 12.1 Vantage data centre was completed, adding 5 576m² of effective gross lettable area to Attacq’s portfolio. The group also achieved practical completion of Galileo, the fourth and final tower in the Ellipse Waterfall development, adding 220 residential units to the precinct. As much as 96.8% of units in the development have been sold to date, showcasing residential demand in Waterfall City.
Construction of the Gateway East offices began and the next residential development, Aspire Waterfall City, has been launched. The twenty-story development includes 217 units of which 145 units have been pre-sold to date.
Development activity across the precinct remains robust, with 86 507m² of developments under construction and approved pipeline projects, valued at approximately R2.1bn. Waterfall City’s effective share represents 47 256m² of GLA, with an effective capital investment of R1.3bn.
Across the completed South African real estate portfolio, occupancy improved to 93.7% and 92.5% of leases expiring in the period were successfully renewed, reflecting strong client demand across the group’s retail, collaboration and logistics hubs.
Collections were strong at 100.1%, demonstrating the quality of the group’s client base. Operational efficiencies also improved, with the municipal recovery ratio rising to 95.3%, supported by the
continued rollout of rooftop photovoltaic systems and enhanced real-time utility monitoring.
Retail-experience hubs maintained high occupancy levels of 97.8%, while collaboration hubs recorded
occupancy of 88.4% as many businesses are returning to work full time.
Portfolio trading density increased by 4.2% to R4 349/m², supported by a 2.9% increase in total tenant turnover to R15.3bn, while the rent-to-turnover ratio remained stable at 6.7%, highlighting the sustainability of client performance across the portfolio.
Attacq’s flagship asset, Mall of Africa “continued to strengthen its position as one of South Africa’s leading retail destinations, supported by strong tenant demand, ongoing brand investment and a curated experiential retail strategy, it said.
During the period, the mall welcomed five new international and premium brands, Coach, Kate Spade, Silky, Kids Around and Bootlegger, while eight existing retailers upgraded their stores, including Cotton On, Emporio Armani and G-Star. Experiential activations also played an important role in driving footfall and engagement, with initiatives such as the Pantry pop-up and the Hair-itage activation. These initiatives contributed to a 4.2% improvement in trading density over the 12-month period, while occupancy remained strong at 98.6%.
Attacq’s regional retail hubs performed well. Eikestad Mall in Stellenbosch, Garden Route Mall in George and MooiRivier Mall in Potchefstroom all delivered positive operational metrics during the period, supported by strong tenant demand, targeted refurbishments and active placemaking
initiatives. MooiRivier Mall recorded 7.6% growth in trading density and a 2.4% increase in footfall, while
Garden Route Mall delivered 2.9% trading density growth and maintained exceptional occupancy of 99.8%.
Eikestad Mall achieved 3.3% trading density growth and occupancy of 97.9%, supported by store upgrades and its role in establishing the local Special Rating Area to enhance the cleanliness
and safety of the surrounding precinct.
The group’s gearing was stable and low at 25.1%, while the interest cover ratio improved to 3.15 times, reflecting higher net operating income and lower finance costs. Total interest bearing borrowings increased marginally to R6.9bn, with no refinancing required before July 2027, providing significant funding stability.
The group’s weighted average cost of debt decreased to 8.9%, supported by refinancing initiatives and
optimisation of its hedging profile.
In October 2025, Global Credit Ratings reaffirmed Attacq’s A+[ZA] long-term and A+[ZA] short-term credit ratings with a stable outlook, reflecting the strength of the group’s asset base and balance sheet.
Attacq ended the reporting period with available liquidity of approximately R1.5bn, providing ample
capacity to fund its development pipeline and operational requirements.
Attacq interim CFO Peter de Villiers said the group’s financial performance reflected disciplined capital
management and the resilience of its earnings base. “Our interim results demonstrate the quality and sustainability of Attacq’s cash-generative property platform. DIPS growth of 9.6% was supported by improving operational performance, stable occupancy and lower funding costs. With low gearing at 25.1%, strong liquidity and an improved interest cover ratio of 3.15 times, the group was well positioned to fund its development pipeline while maintaining a strong and flexible balance sheet.
Attacq invested in sustainability and operational resilience initiatives during the period. The rollout
of rooftop photovoltaic (PV) systems across the portfolio accelerated during the period, reducing reliance
on grid electricity while helping to manage energy costs and improve municipal recoveries. By combining onsite solar generation with real-time monitoring through the group’s digital Smart Utility Hub, Attacq is can track electricity consumption and recoveries more effectively, contributing to an improvement in the municipal recovery ratio to 95.3%.
Over the past few years, Attacq has taken deliberate steps to strengthen the sustainability and reliability of its precincts, expanding infrastructure through the completion of an additional 1.3 MWp of rooftop solar PV and installing 1.3-million litres of water backup capacity. These investments help ensure that precincts remain operational and protected during periods of strain on municipal systems.
Attacq’s board has declared an interim dividend of 48.0 cents per share, representing a payout ratio of 79.6% of distributable income. Looking ahead, the group has upgraded its full-year financial year 2026 distributable income per share (DIPS) growth guidance to between 11.0% and 14.0%, while maintaining a dividend payout ratio of approximately 80%.
Van Niekerk said Attacq entered the second half of the financial year with good momentum.
“Our strategy remains firmly focused on South Africa, with Waterfall City as our primary growth engine, supported by a strong Rest of South Africa portfolio. Together, these two drivers anchor our commitment to developing dominant, high performing precincts across the country,” she said.
alistair@propertyflash.co.za
