Release Date: September 10, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Attacq Ltd (JSE:ATT, Financial) reported a full-year dividend per share growth of 19%, showcasing strong financial performance.
- The company achieved a significant improvement in its debt metrics, repaying ZAR2.9 billion worth of debt over the past 11 months.
- Occupancy rates increased to 92.8%, contributing to a notable growth in net operating income (NOI) from the property portfolio.
- The acquisition of the remaining 20% stake in Mall of Africa is expected to enhance strategic control and capture future growth benefits.
- Attacq Ltd (JSE:ATT) has made substantial progress in sustainability initiatives, installing 12 rooftop solar systems and integrating ESG into its business objectives.
Negative Points
- The company faced a significant write-down in the value of its Rest of Africa retail investments, reducing the carrying value from ZAR557 million to ZAR287 million.
- There is a risk associated with the Cell C lease, with potential vacancy concerns in FY26 if the lease is not renewed.
- Attacq Ltd (JSE:ATT) experienced a tax leakage of just under ZAR8 million due to limitations on assessed losses.
- The company is disposing of its Rest of Africa retail assets, which have not been regular income providers, indicating challenges in those markets.
- Insurance costs increased by 51%, attributed to the need for coverage against potential riots, impacting operational expenses.
Q & A Highlights
Q: Can you provide an update on the Cell C lease and the risk of vacancy in FY26?
A: Jackie van Niekerk, CEO, confirmed that Cell C is up to date with their rent payments and is showing positive signs of business growth. They are in discussions for a lease renewal, and there is no immediate risk of vacancy.
Q: What is the asking rental for the mini units that are not yet leased?
A: Michael Clampett, Property and Asset Management Executive, stated that they are close to concluding deals on the mini units and the rental is in line with expectations. Specific figures will be shared in one-on-one discussions.
Q: Why is Attacq disposing of its Rest of Africa retail assets?
A: Peter De Villiers, Chief Investment Officer, explained that these assets have not been regular income providers. The disposal allows Attacq to convert them into a more liquid investment in Lango shares, which can be exited more easily in the future.
Q: What drove the 73% distributable income growth from the Rest of South Africa?
A: Raj Nana, CFO, attributed the growth to higher net operating income, effective cost allocation due to the introduction of a minority shareholder, and positive contributions from PV installations and turnover rentals.
Q: What are the expected synergies from acquiring the remaining 20% share in Mall of Africa?
A: Raj Nana, CFO, highlighted that owning 100% of the Mall of Africa allows Attacq to fully benefit from future developments in Waterfall City, capturing all growth benefits without sharing with a minority partner.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
