Attacq Limited has published its financial results for the six months ended December 2022, declaring a dividend of 29 cents per share for the interim period which equates to a pay-out ratio of 80.8% with an increase in its distributable income per share of 27.3%.
The REIT’s mixed-use Waterfall precinct continues to see development activity, which, in the period under review, totaled 53 697m2 of gross lettable area (GLA), with a total cost at completion of R915.4 million.
Another significant milestone was the recently announced transaction in terms of which a R2.8 billion strategic investment into Waterfall City by the Government Employees Pension Fund (GEPF) was proposed which will significantly strengthen the group’s capital structure and assist in mitigating the impact of the weakened macroeconomic backdrop.
“Our sustained growth and success can be attributed to our continued dedication to our strategy which has equipped us to address the rapid changing environment in which we operate Our results indicate that we are on track in delivering on our purposeful strategy focused on creating smart, safe, and sustainable community spaces, while enhancing the experience of our clients and shoppers within our office, retail and industrial hubs,” commented Attacq CEO, Jackie van Niekerk.
During the period, the group’s retail-experience hubs performed well with the weighted average trading densities of its portfolio growing by 14.7%. In particular, the Mall of Africa’s trading density was notable at 22.8%.
Attacq has embarked on initiatives to curb the continuous use of generators due to load shedding. It has responded by reducing energy consumption and reliance on generators through a number of initiatives including retrofitting lights, installing generator management systems to shut down the generators after hours for specific buildings and adding +2.3MWp rooftop photovoltaic (PV) systems, with a further +4.7MWp rooftop PV systems in planning as well as battery backups for buildings and precincts.
Prior to interim-period end, the group successfully refinanced R1.1 billion of existing debt at a weighted average reduction in margin of 64 basis points (bps).
“For the interim period, amidst tough economic conditions, through our focused approach, we delivered a 27.3% increase in DIPS, with a strong performance from our key strategic node, Waterfall City, which grew by 49.9%. The balance sheet remains healthy with a gearing ratio of 38% and available liquidity of R1.4 billion. We are also pleased to have declared a dividend of 29 cents per share,” adds Attacq CFO Raj Nana.
The portfolio is expected to continue to generate income growth and given the current capital structure, prudent interest rate hedging and available funding and liquidity, Attacq’s full year distributable income per share guidance of between 8% and 10% growth with a pay-out ratio of 80% remains unchanged.