Real estate investment Trust (Reit) Attacq delivered a maiden distribution of 74c apiece for the financial year ended June 30, exceeding market guidance.
This comes on the back of the company’s conversion to a Reit in May.
Attacq’s net asset value a share increased by 22.2% to R24.24.
The company will focus on distributable earnings by continuing to recycle capital and rolling out its Waterfall development pipeline, Attacq CEO Melt Hamman said on Tuesday.
Attacq's South African portfolio, valued at about R21.1-billion, delivered the majority of its distributable earnings for the financial year, followed by the dividends received from MAS, which provides exposure to property in Western, as well as Central and Eastern Europe.
Attacq’s investment in MAS increased from R2.7-billion to R3.1-billion during the year, providing the group with R151-million in dividends.
The company follows a precinct-based approach, owning and developing dominant retail and mixed-use assets in strong nodes. The portfolio’s primary gross lettable area increased by 14.1% to 802 256 m2 and its rental income increased by 9.4% to R2-billion.
The group is targeting distribution growth of between 7.5% and 9.5% for the 2019 financial year and between 13% and 15% for the 2020 financial year.
This presents a downward revision on Attacq’s prior guidance. The company attributed this to prevailing economic conditions having negatively impacted on the timing of planned disposals of noncore assets, the roll out of development activity, lower-than-expected MAS distributions for 2019, and lower-than-expected cash receipts of interest on shareholder loans from its rest of Africa retail investments.