Mall of Africa rental income rises

JSE-listed Attacq, the owner of Mall of Africa in Midrand, says the performance of its SA portfolio has been boosted by the introduction of new retail brands and upgraded stores.

Trading density the turnover per square metre to sales grew from 12.6% in June 2022 to 12.7%.

“The Mall of Africa with more than 300 stores recorded positive trading figures boosted by 21 new local and international brands that recently entered the mall,” said Attacq CEO Jackie van Niekerk.

Van Niekerk said strong trade at the mall resulted in 10.8% growth in rental income for the year, a 91.6% increase in turnover rental and a 71.4% rise in third-party income.

She said Mall of Africa hosts various events as people see the Waterfall City precinct as a safe and secure environment with functioning infrastructure.

In its results for the year to end-June, Mall of Africa renewed 33 leases while 16 stores were upgraded and 12month average trading density grew 17.3%. Waterfall Corner, a neighbourhood centre, saw growth of 19.3% while its regional and convenience malls grew 9.1% and 8.1% respectively.

Attacq is a real estate investment trust (Reit) with a diversified property portfolio that comprises the mixed-use Waterfall

City precinct, Lynnwood Bridge in Pretoria, MooiRivier Mall in Potchefstroom and Eikestad Mall in Stellenbosch. It also has investments in central and Eastern Europe through its investments in JSE-listed MAS Real Estate.

Attacq and the Government Employees Pension Fund (GEPF) recently sealed a R2.7bn deal to fund the Waterfall City development pipeline.

The GEPF, represented by the Public Investment Corporation (PIC), has acquired a 30% stake in Attacq Waterfall Investment Company (AWIC) a wholly owned subsidiary of Attacq and the owner of Waterfall City. The PIC invests more than R2.5-trillion in government employee assets on behalf of the GEPF.

Attacq CFO Raj Nana said following the implementation of the GEPF transaction, the balance sheet will be stronger, enabling the group to reduce its loan-to-value from 37.3% to 26%.

Nana said in a high interestrate environment it is critical to have a conservative gearing and strong balance sheet.

“The strategy is to reduce debt which should result in enhanced earnings, and we will prudently allocate capital for the rollout of developments at Waterfall City,” said Nana.

During the 2023 financial year, occupancy rates stood at 92.5% and collections at 100.7%. Rental income advanced 7.4% to R2.3bn and like-for-like rental income 6.8%.

Distributable income per share grew 14.5% to 71.9c, higher than the guidance of 8%-10%, with the bulk of this generated by Waterfall City, which accounted for 41.2c.

THE STRATEGY IS TO REDUCE DEBT WHICH SHOULD RESULT IN ENHANCED EARNINGS