Attacq said its guidance remained unchanged and expected distributable income per share growth of between 10% and 12.5%, the REIT and development partner of Waterfall City said in a pre-close presentation yesterday for the year to end June 30.
It said it had bought back 5 352 955 of its own shares to date, at an average price of R9.35. The share price slipped 3.99% by late yesterday afternoon to R10.84.
Debt levels were healthy. The gearing ratio was 25.4, well below the bank covenants at 50%. A DMTN debt issue was expected to be launched post the results in September 2024. The inaugural issuance was targeted for late October 2024.
Attacq’s acquisition of the 20% share of Mall of Africa had gone unconditional and the transaction was expected to be completed at the beginning of July. The deal gave the group full control over the mall. The dividend payout ratio was expected to be 80%.
The group said it had maintained a healthy pipeline of developments at its flagship asset, Waterfall City. In the rest of the portfolio, a diverse client mix, precinct dominance and proactive management had continued to deliver sustained growth despite the sluggish economy.
At Waterfall City, the total lettable area completed came to 23 320 square metres, while total lettable area under construction or in the pipeline came to 30 041 square metres.
The company was strategically divesting its remaining Rest of Africa assets. Investments in PV systems, water resilience, and digital transformation of meter reading continued to be advanced.
The Rest of Africa retail investments comprise 26.9% in AttAfrica which holds Accra Mall, West Hills Mall and Kumasi City Mall, Ghana; and 25% in Gruppo, which holds Ikeja City Mall, Nigeria. Formal discussions with Actis to acquire 50% of Gruppo had terminated. Discussions were under way to dispose of the Ghana and Nigeria investments to single suitors.
At Attacq’s retail experience hubs, the occupancy rate was 96.1% and the collection rate at 99.1%. Thirty-five new leases were signed.
All leases are corporate, no franchisee-operated stores. The clothing trade was strong. Engagements were under way with Pick n Pay management – the grocery chain is undergoing a restructuring.
At the collaboration hubs, occupancy was 86.5%, the collection rate 100.4%, while 18 new leases were signed. At the logistics hubs, occupancy was 94.1%, collection rate was 99.9% and one new lease had been signed.
BUSINESS REPORT