JSE-listed real estate investment trust Attacq grew its distributable income per share for the financial year ended June 30 by 19.9% year-on-year to 86.2c, while its full-year dividend increased by 19% to 69c a share.

Attacq delivered a solid operational performance, with the occupancy rate rising to 92.8% and collection rates remaining high at 100.2%.

“The group performed well on all reported metrics. Additionally, our balance sheet was further strengthened, with gearing of 25.4% and an interest cover of 2.31 times, which provides us with the ability to capture the growth from our development pipeline.

“This includes Waterfall Junction that has had strong enquiries despite not yet launching the development,” Attacq CFO Raj Nana said on September 10.

“We delivered on our debt strategy, which has resulted in lowering our cost of debt. The next phase is to enter the debt capital markets with a listed, rated domestic medium-term note programme, which we are targeting for the second quarter of the 2025 financial year, and this is supported by our recent credit rating of A+ [ZA] by credit rating agency GCR,” he added.

The group's strategy to exit investments that it does not control was reflected in it entering into a binding sale agreement post balance sheet date to dispose of all of its Rest of Africa retail investments, he said.

“We strategically exited our minority investment in MAS and re-invested the proceeds to acquire the remaining 20% of Mall of Africa that we did not own. Mall of Africa is a key asset, which we now own, control and manage 100% of, with continued high growth potential as an anchor to the growing Waterfall City precinct,” said Attacq CEO Jackie van Niekerk.

“During this financial year, we repurchased 5.4-million Attacq shares at an average price of R9.35. Our dealmaking extended to a further 25% acquisition in Waterfall Junction, which is a well-located new logistics precinct in which we now own 50%, with an effective share of 313 791 m²,” she added.

The group credits its success to a strong long-term strategy, consistent execution against it and commitment to it.

“This financial year, we concentrated on executing against our strategy, which included concluding key deals over this period, with a significant milestone being the R2.7-billion Waterfall City transaction in October 2023,” Van Niekerk said.

In this deal, the Government Employees Pension Fund acquired a 30% stake in the Attacq Waterfall Investment Company. This strategic partnership provides additional capital, and is facilitating the ongoing development of Waterfall City, she noted.

There are developments under construction and an approved pipeline totalling 43 766 m² of gross lettable area at Waterfall City, which will cost R1.7-billion. This positions Attacq for growth as Waterfall City provides it with a diverse development pipeline to create smart, safe and sustainable spaces.

At year-end, the group held 1 116 723 m² of effective development rights after increasing its investment in Waterfall Junction to 50% from 23.57%.

Meanwhile, Attacq’s retail portfolio saw the 12-month weighted average trading density increase by 5.8%.

Mall of Africa continues to surpass expectations by serving as a retail, entertainment, and dining destination for a diverse customer base.

There has also been an increase in demand for collaboration hub spaces, leading to growth in market rentals, particularly in Waterfall City and the Lynwood Bridge precinct, said Van Niekerk.

Further, the group has strengthened its water resilience by expanding backup water supplies, improving risk mitigation strategies, and implementing real-time water usage monitoring through its integrated digital platform. The group also installed 12 rooftop solar PV systems totalling 2.28 MW.

Attacq is prioritising initiatives that allow clients and shoppers to enjoy their spaces without disruption, she said.

Attacq's strategic vision for the future, Horizon 2023, is focused on building a purpose-driven business supported by clear business objectives of long-term growth through a sound capital structure, people focus, operational excellence through an integrated digital business, client focus and having a positive impact on Attacq’s communities and environment.

“At the heart of our business is the commitment to creating a positive impact in our spaces and communities and continuing to generate sustainable value for all stakeholders. Our aim is to solve client and shopper needs through innovation,” Van Niekerk said.

Attacq has sets its DIPS guidance for the 2025 financial year at between 17% and 20%, with a dividend payout ratio of 80%.