Attacq lifts distributable earnings
But the group’s net asset value per share fell partly because of impairments against its assets in the rest of Africa
Attacq, the real estate investment trust (Reit) behind the development of Waterfall City, said on Tuesday its distributable earnings per share grew by 9.5% to 45c in the six months ended December.
Growth was driven by additional income from completed developments and a higher dividend from MAS Real Estate, Attacq said. The company would pay an interim dividend of 40.5c a share, it said.
However, the Reit’s net asset value per share decreased by 2.4% to R23.66 mainly due to the full-year dividend payout of R520m in October 2018 and impairments against the group’s rest-of-Africa retail assets.
While the R21bn SA portfolio grew distributable earnings by 17.7%, distributable earnings from retail investments in the rest of Africa fell to R31m, from R42.7m a year before.
Attacq’s exposure to the rest of Africa is via a 25% shareholding in Gruppo, the owner of Nigeria’s Ikeja City Mall, and a 31.8% stake in AttAfrica, which is invested in four retail properties in Ghana and one in Zambia.
Attacq said its investment in Gruppo was impaired by R66.1m, while an aggregate impairment against AttAfrica worth R484m was recognised.
“We are very pleased with our half-year results and the progress made in the transition from a capital-growth business model into a Reit,” said Attacq CEO Melt Hamman.
“Our focus remains on the four key value drivers underpinning our business model, namely the SA portfolio, developments in Waterfall, investment in MAS and our rest-of-Africa retail investments,” Hamman said.
Attacq said it was targeting dividend growth of between 7.5% and 9.5% for the 2019 financial year.
The group’s shares were trading 1.3% lower at R15.20 on Tuesday morning.