Attacq has raised its full-year earnings guidance after reporting higher interim income, driven by the ongoing development of its flagship Waterfall City precinct.
The JSE-listed real estate investment trust (Reit) reported distributable income per share growth of 9.6% to 60.3c for the six months ended December and declared an interim dividend of 48c per share, while upgrading full-year guidance to between 11% and 14%.
“Our interim results reflect continued delivery against our strategic priorities,” said Attacq CEO Jackie van Niekerk. “Our portfolio continues to perform strongly, and we are seeing the benefit in our performance.”
Attacq’s gross revenue rose 8.9% to R1.58bn, rental income increased 4.9% to R1.5bn, and net operating income grew 5.2% to R936.9m, while total assets reached R25.15bn.
“Market rentals are growing, our development pipeline is active, and our balance sheet is in good shape. We are confident that we are firmly positioned as a catalyst for sustainable growth driving value for our stakeholders,” she added.
Looking ahead, Van Niekerk said: “We enter the second half of the year with good momentum. Our strategy remains firmly focused on South Africa, with Waterfall City as our primary growth engine, supported by a strong Rest of South Africa portfolio.”
During the interim period, Attacq continued developing Waterfall City, completing the JNB 12.1 Vantage data centre and the Galileo residential tower in its Ellipse development, which added 220 units, 96.8% of which have been sold.
Gateway East offices are under construction, while the Aspire 20-storey residential tower, a logistics hub, and a conference centre remain in the development pipeline.
Total projects across the precinct covering 86,507 m2 of GLA and about R2.1bn in capital investment, support the development of Waterfall City as a major mixed-use precinct.
Across its South African portfolio, overall occupancy rose to 93.7%, with 92.5% of expiring leases renewed. Retail-experience hubs reached 97.8% occupancy and collaboration hubs 88.4%, while portfolio trading density increased 4.2% to R4,349/m2, supported by a 2.9% rise in total tenant turnover to R15.3bn.
Attacq’s balance sheet remained solid, with low debt, an improved interest cover ratio of 3.15 times, and a reduced average borrowing cost of 8.9%.
The group ended the period with R1.5bn in cash and liquidity to support projects and operations.
Interim CFO Peter de Villiers said the group’s financial performance reflects disciplined capital management and the resilience of its earnings base.
He added that growth was supported by stronger operational performance, stable occupancy and lower funding costs, while the group maintained healthy debt levels and solid liquidity.
“The group remains well positioned to fund its development pipeline while maintaining a strong and flexible balance sheet,” De Villiers said.
TimesLIVE
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