Attacq H1 distribution rose 2.8%

Shares of South African property group Attacq, the owner of one of the largest shopping malls in the country located in Johannesburg's Midrand area, have outperformed the JSE following the release of its first-half results. Attacq reported higher occupancies and a significant decrease in debt due to a R2.7 billion transaction with its new partner in the Waterfall district, the Government Employees Pension Fund. The company has raised its full-year distributions guidance to between 10% and 12.5%. Speaking on CNBC Africa, Jackie van Niekerk, CEO of Attacq, provided insights on the strong performance and future outlook of the company. Van Niekerk attributed the increase in guidance to the completion of the GEPF transaction last October, which had not fully translated into benefits for shareholders in the first six months. Additionally, the recent disposal of shares in a company contributed to revising the guidance upwards. The funds obtained from the disposal will initially be used to pay down debt, but the company is considering deploying capital into income-producing assets in the near future. The partnership with GEPF has significantly improved Attacq's financial position, enabling the development of Waterfall City and expediting the project's progress. Van Niekerk highlighted the alignment of goals between the two partners in creating a vibrant community and sustainable infrastructure in the region. Attacq has also welcomed new tenants like logistics heavyweight DP World at Waterfall City, emphasizing the company's commitment to providing a premium and convenient environment for its clients. Van Niekerk expressed optimism about the future growth prospects at Waterfall City and the positive impact of having global players establish a presence in the area. Addressing concerns about rising municipal costs, Van Niekerk discussed the measures taken by Attacq to improve efficiency and mitigate the impact of increasing rates and taxes. The company has implemented strategies to accurately measure and monitor water and electricity consumption in its buildings, ensuring fair charges for its clients. Regarding potential risks to the revised guidance, Van Niekerk highlighted tenant failure as a significant threat, emphasizing the importance of prudent financial management in navigating uncertainties. While the company has not factored in potential interest rate reductions in its guidance, Van Niekerk expressed confidence in Attacq's conservative approach to financial planning. In conclusion, Van Niekerk remains optimistic about Attacq's growth prospects for the remainder of the financial year, projecting strong performance despite challenges in the economic landscape. The company's focus on strategic partnerships, efficient operations, and prudent financial management positions it well for continued success in the property sector.