Attacq full-year HEPS down 10.9%

Attacq, the owner of Waterfall City Development, recently announced a significant 19.9 per cent increase in distributable income per share for the fiscal year ending in June. This positive news comes amidst a challenging trading environment, as highlighted by Jackie Van Niekerk, the Chief Executive Officer of Attacq, in a recent interview with CNBC Africa. The company's strong financial performance was driven by key transactions throughout the year. Van Niekerk explained that closing the GEPF transaction, where they sold 30% of their Waterfall investment company and reinvested the proceeds into Mall of Africa by acquiring a 24% stake, were major highlights for the company. These strategic moves not only boosted their financial numbers but also set the stage for future growth. Despite the successful deals, the company faced challenges in meeting some of its key performance indicators (KPIs) due to the tough economic conditions. Van Niekerk mentioned their ambitions to develop more buildings in Waterfall City, citing a target of over a million square meters of developer bulk. The obstacles posed by the economic climate have slowed down their development activities but have also underscored the importance of making strategic and sustainable investment decisions. Attacq's partnership with the GEPF has been fruitful, with Van Niekerk praising the high caliber of the individuals they work with and the benefits of the transaction, including improved debt levels and a stronger balance sheet. This partnership has enabled Attacq to pursue cheaper debt through a DMT in debt roadshow program, ultimately benefiting both the company and its shareholders. In light of their positive financial results, Attacq is now looking to raise funds for further developments, with an initial target of a 500 million placement. The company plans to use the raised capital for ongoing and upcoming projects, maintaining a balance between debt and conventional funding to support their growth strategy. One of the key topics discussed in the interview was the future of large shopping malls, particularly in the wake of the pandemic and the rise of online shopping. Van Niekerk expressed confidence in the enduring appeal of super regional malls like Mall of Africa, emphasizing the human desire for physical experiences and social interactions that cannot be replicated online. She highlighted the importance of creating a sense of community and togetherness within the mall, providing a unique shopping and entertainment experience for visitors. As the property sector anticipates a potential cut in interest rates, Attacq is poised to benefit across its various segments. The company expects lower debt costs, improved residential sales, increased consumer spending at malls, and better product offerings from retailers. Van Niekerk sees the interest rate cut as a significant opportunity for growth and remains optimistic about the positive impact it will have on both Attacq and the South African economy. Overall, Attacq's strong financial performance, strategic partnerships, and focus on sustainable development bode well for its future prospects. Despite the challenges posed by the current economic climate, the company remains resilient and proactive in pursuing growth opportunities and delivering value to its shareholders.