International News

Resilient’s SA tenants report an increase in retail sales during H1 2024

Mall of the North in Limpopo.

Resilient REIT has published its unaudited financial results for the six months ended June 2024, declaring a dividend of 218.97 cents per share which represents a 7.8% increase compared to the same period during 2023 (203.22 cents per share).  

Retail sales in South Africa increased by 2.9% during the interim period (4.7% on a rolling twelve-month basis to June 2024), notwithstanding tough economic conditions and the impact of construction on several of its assets.  

Despite consumer discretionary spend under pressure, the REIT’s portfolio performed well with its assets in Gauteng, North West, and Northern Cape benefitting from extensive redevelopment, the introduction of grocery anchors as well as the opening or expansion of Dis-Chem and Clicks stores.  

Resilient concluded 369 lease renewals over 143 550m2 of GLA at rentals on average 4.9% higher than expiry. Leases were concluded with 79 new tenants (16 800m2 of GLA) at rentals on average 36.3% higher than those of outgoing tenants. Escalations of 5.9% and 6.2% were agreed for both renewals and new releases during the period.  

Resilient owns 27 retail centres with a combined gross lettable area (GLA) of 1.2 million square metres. Asset management initiatives, particularly at Boardwalk Inkwazu, Jubilee Mall, and Soshanguve Crossing, to reduce departmental stores and cinemas while increasing exposure to grocery anchors, resulted in a temporary increase in vacancies at 2.1% as at June 2024. 

The Group’s weighted average rental escalation is 6.2%.  

Europe 

Resilient owns a 40% interest in Retail Property Investments SAS, the owner of four regional shopping centres in France, in partnership with Lighthouse Properties. During the period, the French economy was affected by political instability and slow economic growth resulting in sales for the period which declined by 2.8%. Resilient’s share of NPI increased by R9.4 million for H1 2024 compared to H1 2023 with vacancies at 8% at June 2024.  
 
Resilient and Lighthouse each own a 50% interest in Spanish Retail Investments SAS. The acquisition of SRI’s subsidiary, Salera Properties, of Salera Centro Comercial, a shopping centre in Castellon, Spain, was completed with effect from the 31st of January 2024. The asset is fully let and trading well with comparable sales growth of 7.5%.  
 
Resilient previously reported that it would dispose of its Nigerian operations to Shoprite with approval for this transaction received from the Competition Commission in South Africa and Nigeria during May 2024. Their Nigerian operations were deconsolidated during the interim reporting period.

The Group’s loan-to-value (LTV) ratio currently sits at 37%.