Attacq reports strong growth in distributable income as Waterfall City thrives

Attacq, the JSE-listed Real Estate Investment Trust and visionary behind the iconic Waterfall City precinct, has recorded remarkable financial growth in its latest fiscal year, with distributable income per share (DIPS) soaring by 25.6% to 108.3 cents.

There was corresponding uplift in the annual dividend for the year to June 30, 2025: it increased  26.1% to 87 cents per share.

Attacq has forecasted DIPS growth of between 7% and 10% for the upcoming 2026 financial year. This outlook reflected an anticipated dividend payout ratio of 80%, with growth expected to be driven by several strategic initiatives, primarily rising market rentals, effective cost management, and successful leasing strategies for vacant areas and newly completed developments.

Electricity costs are anticipated to decrease further in the new fiscal year, thanks to solar power systems and established power purchase agreements, which are projected to enhance operational efficiencies across the portfolio.

During the year, Attacq’s occupancy rate remained robust at 91.6%, driven by a combination of rising market rents, diligent cost control, the filling of vacant spaces, and increased recoveries linked to energy generated from the company’s rooftop photovoltaic systems. Moreover, the firm was active in development, with R2.3 billion dedicated to projects within Waterfall City.

In financial terms, the group's gearing improved slightly to 25.3% from the previous 25.4%. Additionally, the recent launch of its Domestic Medium-Term Note program saw Attacq raising R760 million, effectively reducing the cost of debt.

Retail expansion continues to flourish at Mall of Africa. The mall welcomed nine new brands during the year, including well-known names like Old School and Decathlon, alongside a transformative revamp of existing stores by retailers such as Mr Price and Spur. These improvements not only enhanced the shopping experience but also helped to pump life into foot traffic, with a recorded increase of 0.1% in footcount, and an impressive 4.9% jump in trading density, alongside a high occupancy rate of 98.9%.

The office spaces at Waterfall City have also seen an influx of new tenants, with eleven corporate clients, including industry leaders such as Tiger Brands and Siemens Energy, relocating their operations to the vibrant precinct. Strong renewal activity was highlighted by a retention rate of 79.4% and an occupancy level of 84.3%.

Attacq’s diversification strategy is evident in its other key precincts. At Lynnwood Bridge in Pretoria, the Auditor-General of South Africa renewed their lease, while collaboration hub spaces reached full occupancy. Glenfair Boulevard maintained strong occupancy levels at 91.1%, and Lynnwood Bridge - Retail achieved an impressive 99.8% occupancy.

The MooiRivier Mall in Potchefstroom saw five new retailers and enhanced customer experiences with the addition of K1 Karting. This mall, too, maintained a commendable occupancy rate of 97.7%.

Success continued at Garden Route Mall, where a new KFC drive-through was launched, alongside five additional brands, ensuring the space remained vibrant and appealing with a sustained 99.8% occupancy rate.

In residential development, Ellipse Waterfall, a luxury joint venture, is nearing completion, with three of its high-rise towers finished, while the final tower is on track for completion in the second quarter of the 2026 financial year.

Furthermore, the unveiling of Aspire Waterfall City, a new residential scheme, promises to add a 19-storey tower with 217 units with mixed-use features, further elevating Waterfall City’s appeal.

Moreover, Attacq is set to break ground on the ambitious Waterfall City Junction, envisioned to be a secure, environmentally sustainable logistics park and a key asset in Gauteng’s logistics corridor. Developed in phases, construction is estimated to commence in the second quarter of 2026, with practical completion anticipated in early 2028.

As Attacq continues to navigate through a dynamic market landscape, its focus on strategic growth and operational efficiency promises to sustain its position as a leader in the real estate sector, invigorating both the local economy and communities within its precincts.

BUSINESS REPORT