The construction boom at Waterfall Estate, Photo: Supplied.
Attacq, the JSE-listed REIT developing Waterfall City, did well in its year to June 30 by lifting distributable income per share from 34.2 percent to 62.8 cents and resuming dividend payments with the 50 cents per share, representing an 80 percent payout ratio.
The group’s performance was in the context of South Africa’s record unemployment levels and low-growth economic environment and reflected the underlying quality of the portfolio, which has been characterised by continued growth in the burgeoning mixed-use Waterfall City precinct - the precinct has continued to attract local and global blue chip clients.
“We emerged from Covid-19 with an improved company culture and capital structure. Our focus is now on new opportunities, mainly through the implementation of our environmental plan and delivery of the company’s purpose and vision,” said CEO Jackie van Niekerk.
A key ingredient of success had been the “hub” strategy, which focuses on segmented retail-experience, collaboration and logistics hubs that were smart, safe and sustainable.
CFO Raj Nana said in a telephone interview about the year ahead that they had some good enquiries about logistics developments for the new financial year. He said Attacq was also working on additional phases of the group’s flagship Ellipse Waterfall development - Ellipse had already seen more than R1 billion in sales since launch in July 2021, and its first residents had moved into the residential mixed-use hub.
Van Niekerk said the highlight during the year was an amended lease agreement on the Cell C collaboration hub space, subject to Cell C’s recapitalisation, whereby the warehouse component of the Cell C campus was re-let for a period of three years.
Several global blue-chip corporates, including Amazon Web Services, Cisco, Pfizer and Ericsson, moved to Waterfall City during the year. Space utilisation at Waterfall City and Lynnwood Bridge precinct, our largest collaboration hubs, continues to increase as businesses return to the workplace.
She said they had continued to see interest from corporates from additional space post-year-end.
Commenting on the balance sheet and capital allocation, Nana said Attacq successfully de-geared its balance sheet, completed a number of developments and grew distributable income. He said they were targeting an 8-10 percent increase in dividends in the new financial year.
Lower interest costs, higher rental collections and the receipt of a dividend from the investment in MAS also contributed to higher distributable income per share in the past year.
Interest-bearing borrowings reduced by 18.7 percent, while its net asset value per share grew by 11 percent to R17.49 (2021: R15.75 per share).
Van Niekerk said Attacq’s portfolio is diversified by geography, sector and asset class, and with its exposure to defensive, high-quality retail and residential, and complemented by premium-grade office developments is well-positioned to grow further as consumers and businesses seek quality and convenience in their work, home and play destinations.
Attacq’s share price increased 2.28 percent to R6.85 yesterday just after midday..
edward.west@inl.co.za
BUSINESS REPORT