JSE-listed real estate investment trust (Reit) Attacq, a strategic development partner of Waterfall City in Midrand, Gauteng, has announced a strong set of financial results for the six months ended December 31, 2024, with distributable income per share (DIPS) having increased by 49.1% year-on-year to 55c and the interim dividend declared by 46.7% year-on-year to 44c.

Attacq announced on March 11 that it had increased its full-year DIPS growth guidance to between 24% and 27%.

Gearing for the six months to December 31 remained low at 25.9%, and the interest cover ratio improved to 2.91 times.

“The period saw us continuing to execute against our Horizon 2030 strategy. The all-round solid performance for this half [is a result of] our commitment to . . . creating vibrant, sustainable spaces for communities and businesses,” Attacq CEO Jackie van Niekerk said.

The Horizon 2030 strategy is focused on the next five years and is centred around three key themes: thrive, transcend and support the company's strategy.

The objectives include long-term capital growth, a people-centric approach, operational excellence, an integrated digital business, client focus and community and environmental impact.

Van Niekerk said this year would continue to be particularly focused on developing Waterfall City, with significant land and development potential over the next ten years.

“Our efforts are reflected in our increased gross revenue and rental income achieved, improved cost-to-income ratio from 25.4% to 22.4% and the new blue-chip clients attracted to our precincts,” Van Niekerk said.

The company reported high occupancy and collection rates of 91.9% and 99.6%, respectively, with a weighted average annual trading density growth of 4.1%. Development activity under construction and in the approved pipeline at Waterfall City totalled 43 988 m² of gross lettable area.

Attacq CFO Raj Nana said the company’s strategic growth trajectory could be expected to continue into the second half, backed by Attacq’s robust balance sheet, which was supported by a successful initial public auction under its domestic medium-term note programme and strategic debt refinancing undertaken during the period.

Van Niekerk said the interim period continued to benefit from the R2.7-billion Waterfall City transaction, through which the Government Employees Pension Fund (GEPF) acquired a 30% shareholding in Attacq Waterfall Investment Company, implemented in October 2023.

This full interim period benefitted from the transaction’s impact, compared to only two months in the comparative interim period.

“We’ve made an upward revision to our full-year DIPS guidance to between 24% and 27%, driven by several key factors. The full-year benefit of implementing our Waterfall City transaction with the GEPF and the acquisition of the remaining 20% of Mall of Africa will contribute significantly to Attacq’s continued growth.”

“Additionally, our net operating income is growing owing to increased revenue from managing co-owned properties, as well as higher market rentals. Furthermore, the impact of our installed PV systems underway will support the increase in electricity recovery ratio and improve operational resilience,” Nana said.

DIPS from Waterfall City rose by 10% to 26c during the period, driven by higher net operating income and increased interest in Mall of Africa. DIPS from the rest of the company’s South African portfolio surged by 125% to 30c, aided by significantly reduced net finance costs.

Gross revenue rose by 6.2% to R1.5-billion, with group rental income having grown by 15.1% to R1.5-billion, mainly owing to higher rental escalations and an additional 20% interest in Mall of Africa.

Like-for-like rental income increased by 7.7%. Van Niekerk said Attacq had achieved positive net operating income growth of 9.2%.

Van Niekerk also noted that the installation of additional rooftop PV systems and real-time utility monitoring through the Smart Utility Hub led to an improved municipal recovery ratio of 94.6%, up from 88.6%.

The Smart Utility Hub monitors energy, water, and renewable production in real-time. By June, Attacq will install 749 smart water meters across the portfolio and integrate them with the Smart Utility Hub for better resource management and resilience.

Van Niekerk said the company was scaling its backup water capacity in response to the country’s growing water challenges. By 2026, all Attacq’s assets will have backup water capacity of between two and five days, ensuring water security across the portfolio and supporting business continuity and long-term resilience.

She also noted that Attacq was progressing with the installation of 2.9 MW of rooftop PV systems, on track to achieve its eventual goal of 7 MW. Renewable energy is expected to make up 9.3% of total consumption in the 2025 financial year, up from 6.8% in June last year.

During the interim period under review, Mall of Africa became the world's largest retail mall to achieve Excellence in Design for Greater Efficiencies Advanced certification, recognising its 53% energy savings and 28% reduced water use.

At MooiRivier Mall in Potchefstroom, refurbishments, water solutions, rooftop PV systems and upgraded parking have led to a 24.1% increase in trading density and a 19.4% rise in the mall's value over three years.

“Attacq’s commitment to infrastructure investment and a precinct-focused approach continues to attract top-tier clients that need high-quality offices with operational resilience and cost efficiency while prioritising employee wellness and safety,” Van Niekerk said.

She added that demand for collaboration hubs continued to rise during the period, driving growth in market rentals. Over the past six months, Attacq collaboration hubs added global organisations such as Pragma, Organon, Nokia, Chieta, Bayer and Siemens Energy, with the occupancy rate for collaboration hubs post-period-end increasing to 89.5% from 87.7%.

Additionally, Van Niekerk said the Reit had worked on improving the shopping experience in its retail portfolio by introducing new brands and enhancing existing retail spaces. In its retail-experience hubs, 15 new stores were introduced, and 41 were refurbished, adding brands such as United Colors of Benetton, Decathlon and Freedom of Movement.

The retail portfolio reported a rolling 12-month trading density growth rate as at December 31, 2024, of 4.1%, with trading densities exceeding the Clur Shopping Centre Index over a two-year period.

“Our strong performance . . . reflects our commitment to sustainable growth and strategic execution. Our focus on client satisfaction, operational efficiency and innovative developments have driven tremendous growth, delivering value to our stakeholders and enhancing the client experience,” Van Niekerk said.