Attacq delivers strong FY25 results as Waterfall City drives growth

Attacq Limited, listed on the JSE and A2X and a strategic development partner of Waterfall City, delivered a solid set of results for the year ending 30 June 2025. The performance highlights the success of disciplined capital allocation, portfolio reshaping, and reduced funding costs. Distributable income per share (DIPS) increased by 25.6% to 108.3c (FY24: +19.9% to 86.2c), driven by enhanced operating metrics, lower net finance costs, and the full-year impact of the landmark Waterfall City transaction with the GEPF finalised in October 2023.
 
The rise in earnings allowed for a higher payout, with the board announcing a final dividend of 43.0 pence per share, bringing the total full-year dividend to 87.0 pence. FY26 guidance expects further DIPS growth of 7%–10%, supported by stable vacancies, market-driven renewals, and no major macroeconomic or load-shedding shocks.
 
Engines of growth
Operationally, Attacq’s focus on Waterfall City, the Rest of South Africa, and other investments showed clear progress. Waterfall City DIPS rose 10.4% to 55.1cps, driven by rental escalations, the acquisition of the final 20% of Mall of Africa (effective 28 June 2024), and lower finance costs, partly offset by the 30% minority adjustment from the GEPF deal. The Rest of South Africa performed strongly, with DIPS up 50.1% to 55.1cps, due to higher third-party management fees, escalations, and reduced net finance costs, including interest from MAS disposal proceeds. Other investments experienced a slight loss, reflecting one-off costs linked to exiting Rest of Africa retail assets for a 4.47% stake in Lango, consistent with the strategy to prioritise South Africa.
 
Group gross revenue increased by 10.2% to R2.9 billion, while rental income rose by 13.6% to R2.9 billion, supported by rental increases and the Mall of Africa stake. Like-for-like rental income grew by 7.3%. Property expenses increased by 12.9% to R1.1 billion (mainly due to the Mall of Africa acquisition), but on a like-for-like basis, they rose only by 6.6%. The municipal recovery ratio improved to 94.4% (FY24: 89.9%), aided by fewer load-shedding days and the expansion of rooftop PV.
 
Net profit from property operations (before IFRS adjustments and excluding sectional-title sales) increased by 14.0% to R1.8bn; like-for-like NOI rose 7.7%. Headline EPS grew 40.7% to 102.3c; EPS increased 58.6% to 214.6c.
 
Waterfall City: flagships and pipeline
At the Mall of Africa, nine new brands joined, 33 stores were renovated, and expansions included Spur, Mr Price, and Checkers. Footfall increased by 0.1%, and trading density rose by 4.9%, with occupancy remaining steady at 98.9%. The mall achieved EDGE Advanced certification—the world’s largest retail asset with that rating—after brand updates, repainting, and PV upgrades.
 
Beyond retail, Waterfall continued to expand as a mixed-use destination. Eleven corporates, including Tiger Brands, Siemens Energy, Novozymes, and Pragma, moved in. Renewals achieved a 79.4% retention rate (GLA) and an 84.3% occupancy rate. Ingress Building 3 added 4,531m², increasing occupancy from 49% at year-end to 74.4% post-year-end. Development remains active, with 90,664m² under construction or in the approved pipeline (Attacq share: 39,641m²), valued at R2.3 billion. Residential demand remains strong: Ellipse Waterfall Phase 3 (Galileo) is 96.6% sold pre-completion in 2QFY26, and Aspire Waterfall City reported robust initial pre-sales (112 of approximately 217 units).
 
Logistics is set for ongoing expansion: at Waterfall City Junction—now a 50/50 undivided share within AWIC’s portfolio—Phase 1 infrastructure (~156,000m² bulk) has been completed and was announced in 1Q FY26. A client-led facility (16,072m², Attacq 25%) and a 22,142m² speculative warehouse (Attacq 50%) are planned to commence in FY26, with expected completions through FY27–FY28.
 
Portfolio metrics: occupancy, trading and valuations
Portfolio occupancy concluded FY25 at 91.6% (FY24: 92.8%) amid extensive leases expiring (144,968m²) and negative reversions in collaboration hubs, offset by strong retail and logistics. Occupancy increased to 93.6% after year-end as 15,179m²—mainly logistics—was leased. WALE rose slightly to 4.2 years, with 14.8% of GLA expiring by 30 June 2026 (including Mall of Africa’s renewal cycle).
 
Retail-experience hubs continued to perform well: 12-month weighted average trading density increased by 5.0% to R4,270/m², with total effective turnover rising by 6.6% to R14.9 billion and rent-to-turnover at 6.7%. Accessories/Jewellery/Watches saw a 14.1% increase in trading density; apparel (accounting for 41% of rent) grew by 4.4%. The South African portfolio value increased by 6.6% to R21.35 billion (+5.0% like-for-like), driven by higher market rentals and stable discount and capitalisation rates. Fair-value adjustments totalled R974.6 million (excluding straight-lining).
 
Capital structure: cheaper debt, longer tenors, strong liquidity 
Attacq’s balance sheet continued to strengthen. In August 2024, GCR assigned Attacq an A+[ZA]/A1[ZA] rating with a stable outlook, facilitating the launch of a DMTN programme and raising R760m through unsecured notes at lower margins. Over the year, Attacq refinanced R5.9 billion in bank debt, decreasing the margin by 22 basis points; the average loan term extended to 4.0 years (from 3.3 years), with no maturities until July 2027. Hedging increased to 86.8% (from 74.7%), reducing interest rate risk despite a modest hedge liability at year-end.
 
The interest cover ratio increased to 2.95x (from 2.31x); gearing remained at 25.3%; and the average cost of debt decreased to 9.2% (from 10.0%). Liquidity stayed steady at R1.57 billion (including cash, prepaid access, and undrawn committed facilities), enabling Attacq to fund development and pursue capital recycling opportunities.
 
Governance and people
The board announced the retirement of long-serving Chairperson Pierre Tredoux at the November 2025 AGM. Ms Ipeleng Mkhari, an Attacq non-executive since 2018 and an experienced property executive, will become the Independent Non-Executive Chairperson, supporting governance renewal towards the Horizon 2030 goal. Additional board and committee changes enhanced oversight.
 
Outlook: disciplined growth under Horizon 2030 
Attacq anticipates a 7%–10% DIPS growth in FY26, driven by NOI increases from leasing, escalations, and cost management, along with energy savings from PV and a forthcoming PPA. Risks include macroeconomic instability, tenant health, and energy supply reliability. Nonetheless, Attacq begins FY26 with stronger earnings, a clear development pipeline, rising occupancy, and a reshaped, South Africa-focused portfolio.
 
In summary, Attacq’s FY25 results show a REIT focusing on its precinct-led strategy, lowering capital costs and enhancing operational gains to improve cash flow—building the capacity to succeed in 2025 and evolve through its Horizon 2030 vision.