Attacq Limited has published its financial results for the year ended June 2022 with the resumption of dividends of 50 cents per share, representing a pay-out ratio of 80% and an increase in distributable income per share by 34.2% to 62.8 cents.
“During the past year, we emerged from COVID-19 with an improved company culture and capital structure. Our focus is now on new opportunities, mainly through the implementation of our environmental plan, in support of sustainable growth within our portfolio and delivery of the company’s purpose and vision,” comments CEO, Jackie van Niekerk.
“A key ingredient of success has been formulating and executing our ‘hub’ strategy, which focuses on creating segmented retail-experience, collaboration and logistics hubs that are smart, safe, and sustainable.”
Further highlights include concluding an amended lease agreement on the Cell C collaboration hub space, subject to the completion of Cell C’s recapitalisation of 24 955m2 where the warehouse component of the Cell C campus (14 014m2) was re-let at market related rentals for a period of three years.
Occupancy and collection rates remain high at 92.1% and 97.8% respectively.
Commenting on the REIT’s balance sheet and capital allocation, CFO Raj Nana said: “During FY22, Attacq successfully de-geared its balance sheet, completed a number of developments, and grew its distributable income. In addition, lower interest costs, higher rental collections, and the receipt of a dividend from the investment in MAS have contributed to an increase in total distributable income per share of 34.2%”.
Attacq’s interest-bearing borrowings reduced by 18.7% while its net asset value per share grew by 11% to R17.49 (2021: R15.75 per share). Its gearing and interest cover improved from 43.3% to 37.2% and 1.41 times to 1.58 times respectively.
Despite a number of headwinds at a macro level, the company expects its portfolio to continue to generate income growth, coupled by improved funding and liquidity positions, given its improved capital structure.
“Attacq’s resilient portfolio is diversified by geography, sector, and asset class, and, with its exposure to defensive, high-quality retail and residential, and complemented by premium-grade office developments, is well-positioned to grow further as consumers and businesses seek quality and convenience in their work, home and play destinations”.
In line with this, the company says its decision to discontinue its plans for The Mix residential development and to redouble its efforts on additional phases of its flagship Ellipse Waterfall development has paid off. To date, Ellipse has achieved more than R1 billion in sales since its launch in July 2021 and it has already seen its first residents move into the residential mixed-use hub.
Developments within Waterfall City of R997.6 million have been completed so far, totalling 47 623m2 of gross lettable area (GLA) with a ‘Power Purchase Agreement’ for 15MWp concluded.