Attacq grows distributable income by 20%

Property group Attacq has reported a robust set of annual results with full-year dividend growth of 19% to 69c per share and distributable income per share increasing by 19.9% to 86.2c.

The real estate investment trust (Reit) and strategic development partner of Waterfall City delivered a solid performance, with the occupancy rate rising to 92.8% and collection rates remaining high at 100.2%.

The group expects to grow its distributable income per share in the 2025 financial year by between 17% and 20% with a dividend payout ratio of 80%.

The full-year benefit of implementing the Waterfall City transaction with the Government Employees Pension Fund (GEPF) and the acquisition of the remaining 20% of Mall of Africa was expected to drive growth in distributable income.

Additionally, the effect of installed photovoltaic (PV) systems and planned installations would support the reduction in electricity costs and operational efficiencies.

“This financial year, we concentrated on executing against our strategy, which included concluding key deals over this period,” said CEO Jackie van Niekerk.

“We achieved a significant milestone with the R2.7bn Waterfall City transaction, completed in October 2023. In this deal, GEPF acquired a 30% stake in Attacq Waterfall Investment Company. This strategic partnership provides additional capital, facilitating the ongoing development of Waterfall City,” Van Niekerk said.

The group also strategically exited its minority investment in MAS and reinvested the proceeds in the acquisition of the remaining 20% of Mall of Africa that it 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.”

During this financial year, Attacq repurchased 5.4-million of its own shares, for an average of R9.35 per share.

“Our deal-making extended to a further 25% acquisition in Waterfall Junction, an excellently located new logistics precinct in which we now own 50%, with an effective share of 313.791m2.”

With developments under construction and an approved pipeline totalling 43,766m2 of gross lettable area at Waterfall City, which would cost R1.7bn, Attacq is poised for growth.

“Waterfall City remains a premier destination for work, living and play in the heart of Gauteng, strategically located within SA. It provides Attacq with a diverse development pipeline to create smart, safe and sustainable spaces,” Van Nikerk said.

By end-June, the group held 1.116-million square metres of effective development rights after increasing its investment in Waterfall Junction from 23.57% to 50%.

mackenziej@arena.africa