Attacq Limited has published its interim results for the six months ended December 2023, reporting a 2.8% increase in its distributable income growth per share to 36.9 cents (December 2022: 35.9 cents) and an interim dividend of 30 cents per share, equating to a payout ratio of 81.1%.
The implementation of the landmark R2.7 billion Waterfall City transaction in October 2023, with the GEPF acquiring 30% of Attacq Waterfall Investment Company Pty Ltd (AWIC)., marked a significant milestone which resulted in the REIT’s gearing decreasing significantly to 25.3% from 37.3%.
Through the introduction of a long-term strategic shareholder to AWIC and makes substantial capital available for the continued development roll-out of Waterfall City.
Attacq has also disposed of its remaining stake in MAS PLC for approximately R773 million, a strategic decision taken in accordance with Attacq’s capital allocation framework over its assets of which it has significant influence over.
“This has been an excellent half year for Attacq, closing out key strategic transactions to ensure a sustainable capital structure. Our diverse precinct strategy continues to be well executed, with high occupancy and collection rates respectively of 93.7% and 99.7% emblematic of the high demand for our quality retail and logistics spaces,” comments CEO of Attacq, Jackie van Niekerk.
“Our flagship residential development Ellipse continues to attract investor interest with excellent sales recorded during the period. Furthermore, our well-located office assets are home to numerous global blue-chip companies, including iconic brands such as DP World, Eppendorf, Dell, Estee Lauder, Pfizer, Ericsson, Dimension Data and Accenture.”
Attacq’s portfolio is expected to continue to generate income growth and, given the current capital structure, prudent interest rate hedging, available and liquidity, and the MAS disposal, the group’s full year DIPS guidance has been revised upwards to between 10.0% and 12.5% growth with a pay-out ratio of 80%.
