JSE-listed real estate investment trust (Reit) Attacq has entered the 2026 financial year in an "exceptional" financial position and with a solid foundation from which to deliver continued growth, CFO Raj Nana has said.

The Reit on September 16 reported a 25.6% year-on-year increase in distributable income per share (DIPS) to 108.3c and a 26.1% year-on-year increase in the full-year dividend to 87c for the financial year ended June 30, 2025.

Nana attributed the growth in DIPS to an improvement in net operating income (NOI), lower finance costs and higher municipal recoveries.

“Attacq’s full-year reflects the continued execution of our focused strategy, quality portfolio and disciplined capital allocation. Attacq’s market-leading financial performance follows on from our previous financial year, which was also exceptional.

"The successful execution of our debt strategy, including another major refinance, the R760-million raised under our domestic medium-term note programme and our first long-term credit rating of A+[ZA], have resulted in our average cost of debt reducing by 80 basis points from the prior year, a low gearing level of 25.3% and interest cover ratio of 2.95 times," he commented.

CEO Jackie van Niekerk, meanwhile, said the Reit had navigated sustained headwinds and a challenging operating environment by prioritising disciplined capital allocation, NOI growth, cost containment and a thriving working culture.

"We are encouraged by the growth in market rentals across all sectors, and leasing activity was robust with the full-year benefit of the landmark Waterfall City transaction and 100% ownership from Mall of Africa for the year. Development activity across Waterfall City further continues to create long-term value. We remain focused on driving sustainable growth and delivering quality spaces in South Africa that meet the evolving needs of our communities.”

Attacq said it remained committed to the expansion of its South African real estate portfolio, with a continued focus on developing Waterfall City.

“We are excited about the prospects for the year ahead. The year will see us derive returns from Waterfall City development activity, increased solar energy utilisation and reduced finance interest charges," Nana said, adding that the Reit expects to grow its DIPS by 7% to 10% in the 2026 financial year.