JSE- and A2X-listed real estate investment trust Attacq has reported normalised distributable income per share (DIPS) growth of 15.5% to 125.1c for the financial year ended June 30.

It also declared a final dividend of 54c, increasing the full-year dividend by 17.2% to 102c.

Revenue increased by 9.3% and net operating income rose by 7%, supported by improved letting, contractual rental escalations, income from newly completed buildings and lower funding costs, demonstrating the strength and stability of the group’s underlying property platform, the company says.

Portfolio performance remained strong through the year, with the occupancy rate at 94.9% and the collection rate at 99.8%.

“The group’s performance reflects disciplined capital management. The weighted average cost of debt reduced to 8.7% from 9.2%, gearing improved to 25% and the interest cover ratio strengthened to 3.21 times.

“Our capital structure gives us the headroom to continue developing Waterfall City, in Gauteng, allocating capital in a disciplined manner which will flow through to future distributable income,” says Attacq CFO Peter de Villiers.

The gross lettable area from development activity under construction and in the approved pipeline at Waterfall City was 85 247 m² at a total cost of R2.2-billion, with delivery expected through to 2028.

Attacq’s share represents 46 460 m² at an effective cost of R1.3-billion, with its further committed investment in bulk infrastructure, including roads, water and electricity from this fund being proportionate to its share.

During the financial year under review, the group also achieved practical completion of Galileo – the fourth and final tower in the Ellipse Waterfall development – and opened the 11 151 m² Vantage data centre.

Gateway East, which is a workspace at the main entrance to Waterfall City with restaurants opening onto the Mall of Africa piazza, is 47% pre-let with a further 33% under offer ahead of full completion in the second quarter of the 2027 financial year.

At Waterfall City Junction, which is Attacq's new logistics precinct east of the N1, construction of a 22 142 m² warehouse is under way, alongside the proposed site for a distribution facility for a national client, which should break ground in the next quarter.

Further, the R634-million Waterfall City Conference Centre and Hotel has broken ground and, alongside the recently commenced 20-storey Aspire residential tower, will transform the Waterfall skyline upon completion in the first quarter of 2028, the company says.

Additionally, the Izinga Transport Hub opened at the Mall of Africa in March, which consolidated taxi, food and online delivery services into a purpose-built node with enclosed waiting areas, dedicated security, charging stations, free WiFi and ablution facilities.

The former transport site will be converted into a premium street-front convenience store, which is due to open in the first quarter of 2027.

“By turning infrastructure into attractive street-front retail, we help shape our city into a lively, walkable precinct,” says Attacq CEO Jackie van Niekerk.

“These results are the outcome of our team’s discipline and hard work, and of a business we have deliberately built to be resilient. We are building places where people want to be, and quality spaces across South Africa that meet the evolving needs of our communities.

“Our purpose at Attacq is to create places that put people first, which guides the precincts we develop, the quality infrastructure investments and the culture we protect,” she says.

The group expects normalised DIPS to grow by between 6% and 9% in the 2027 financial year, with a dividend payout ratio of 80%.

ENERGY, WATER & EFFICIENCY
Investment into the group’s energy, water and efficiency programme was a strategic focus, she adds.

Rooftop PV capacity across the portfolio reached 18.5 MW, after a further 1.8 MW was installed during the year under review, including a second phase at Garden Route Mall.

“Green energy supplied 13.7% of the group’s power needs, up from 9.1% in the prior year,” says Van Niekerk.

Once the group’s power purchase agreement comes online during the 2027 financial year, green energy is expected to materially shift the energy mix.

Further, new building designs incorporate rooftop solar, rainwater harvesting, backup water and smart metering.

The municipal recovery ratio improved to 97.8% from 94.4%, supported by real-time monitoring through the group’s Smart Utility Hub, and was the principal driver of the reduction in portfolio operating costs relative to income, Attacq says.

Attacq also added 5.3 Ml of backup water capacity during the year, the majority of which was added at building level. Two additional tanks were installed at Mall of Africa to provide the precinct with five days of supply, and a further 3 Ml of capacity was installed across the logistics hubs.

“Helping our tenants to continue trading is the difference between a normal business day and a lost one,” Van Niekerk points out.

She adds that Attacq's Horizon 2030 strategic framework aims to build precincts that South Africa needs; namely places that are efficient, resilient and designed around people.

“We made meaningful progress towards that ambition, with a portfolio now valued at R22.6-billion, an energy and water programme that is lowering the cost of running our buildings, and precincts that continue to create value for tenants, communities and shareholders,” she says.