Resilient REIT has reported a 2.9% increase in its tenants’ retail sales during the ten-month period ended October 2024 (3.6% on a rolling twelve-month basis to October 2024), despite construction and asset management activities at Mahikeng Mall, Tzaneng Mall, Diamond Pavilion and Boardwalk Inkwazi.
The subdued performance of the mining industry, particularly during the past five months, has negatively affected its turnover at Kathu Village Mall, Northam Plaza and Tubatse Crossing. Jabulani Mall achieved turnover growth of 15% following the introduction of a franchised Pick n Pay store with the performance of Spar, and the introduction of Unimart, contributing to 13% growth at Mams Mall.
Resilient’s pro rata share of vacancies, inclusive of planned vacancies due to asset management initiatives, was 2.4% at November 2024.
To date, the REIT says lease renewals of over 263 142m2 of GLA were concluded on average 4.7% higher than expiring rentals. New leases were concluded for 34 210m2 of GLA on average 15.9% higher than the rentals of its outgoing tenants. In total, rentals for renewals and new leases increased on average by 6.1%.
The commencement of construction at Irene Village Mall, to accommodate Checkers, has been delayed pending confirmation from Shoprite Checkers to extend the format to a Checkers Hyper. Construction on the extension of Tzaneen Lifestyle Centre is anticipated to commence in 2025 and remains subject to Board approval. As a result of labour unrest, The Village Klerksdorp is anticipated to open at the end of March 2025.
The Group’s Spanish tenants reported sales growth of 8.7% for the nine months ended September 2024 with footfall increasing by 2.1% during the period.
Its French tenants reported improved metrics with sales growth of 3.9% during Q3 2024. Sales for the nine-month period ended September 2024 declined by 0.5% with vacancies remaining at 7.8%.
Resilient currently owns 30.4% of Lighthouse Properties following its election to receive 50% of the Lighthouse dividend for June 2024 as a scrip dividend and its R300 million participation in the Lighthouse equity raise.
Its Board expects its dividend for FY2024 to be between 428 cents per share and 433 cents per share.
