Attacq presented a confident set of interim results for the six months ending 31 December 2025, supported by higher net operating income, improved occupancy rates, disciplined capital management, and ongoing development momentum at Waterfall City.

The JSE-listed REIT reported distributable income per share growth of 9.6% to 60.3 cents and declared an interim distribution of 48 cents per share, up 9.1% year on year. Management also revised full-year guidance upward, with distributable income per share now expected to increase by 11% to 14%, up from previous guidance of 7% to 10%.

Presenting the results from Waterfall City, CEO Jackie van Niekerk stated that the group’s performance demonstrated years of disciplined balance sheet management and a clear focus on operational execution.

She said Attacq had focused on “controlling the controllables”, building resilience into the business so that external shocks and geopolitical uncertainty could be managed from a position of strength. That discipline, she said, was especially important in an environment where South Africa was beginning to show signs of increased certainty and reform momentum.

Van Niekerk stated that increased fiscal discipline and structural reforms were gradually boosting business confidence in South Africa, establishing a more stable foundation for long-term investment in real estate and infrastructure. While management remained cautiously optimistic, she noted that the group believed the operating environment was becoming more conducive to responsible capital deployment.

Strong operational performance
At the operational level, the main earnings driver was a 5.2% rise in net operating income, supported by higher occupancy, strong leasing activity, and full rent collection.

Portfolio occupancy rose to 93.7%, while collections stayed at 100%, a metric management again emphasised as key to a distributable earnings model. The weighted average annual trading density across the retail portfolio increased by 4.2%, and Attacq concluded just over 22,000m² of new leases during the period.

Van Niekerk said the portfolio was benefiting from the combination of recurring income growth, development completions, and a continued focus on resilience infrastructure. Over the six months, Attacq completed just under 25,000m² of development, while maintaining approximately 50,000m² of effective gross lettable area under construction or planned, representing roughly R1.3 billion in development activity.

Waterfall City remains the main growth driver in the portfolio and continues to shape Attacq’s medium-term investment case. The precinct Benefits from the wider South African portfolio, but it is becoming increasingly clear that management views Waterfall as the key source of future earnings and value creation.

Attacq’s focus on South Africa remains the same, with exposure spread across retail experience hubs, collaboration hubs, logistics assets, and data centres.

Diversified portfolio supports income growth
Retail continues to be the primary source of net operating income, accounting for roughly half of the total, while emerging sectors such as data centres and logistics are gaining strategic importance.

The contribution from “other” income rose significantly during the period as the second Vantage data centre became operational, highlighting the value of long-term, specialist infrastructure-backed leases.

Michael Clampett, an asset and property management executive, stated that the in-force portfolio had demonstrated encouraging underlying momentum.

Along with the increase in occupancy to 93.7%, Attacq achieved a net increase of approximately 19,000 m² during the period. About 5,500m² of this came from newly completed space, while the rest resulted from absorption within the existing portfolio.

Retail experience hubs continued to perform well. Trading density growth of 4.2% was accompanied by a 33% increase in turnover rent and a 12.8% rise in non-GLA income compared with the previous comparable period.

Clampett stated that these were healthy indicators for the retail portfolio, especially given the still-uneven consumer environment.

Mall of Africa remained the group’s flagship retail asset, attracting about 17 million visitors over the past 12 months. While footfall declined slightly, management attributed this partly to changes in traffic patterns resulting from the reconfiguration of Checkers and Sixty60 delivery access points, rather than to any deterioration in underlying trading appeal.

Cost control also improved. Attacq’s cost-to-income ratio decreased to 21.4% from 22.4% previously, reflecting tighter operating discipline across the portfolio.

Infrastructure resilience comes into focus
The resilience theme once again featured prominently in the presentation.

Over several years, Attacq has invested in rooftop solar, backup water infrastructure, and precinct-level utility management, and these investments are now starting to demonstrate measurable operational benefits.

Van Niekerk stated that infrastructure investment alone was insufficient and needed to be complemented by active management, resulting in the formation of a dedicated water task team.

Clampett said the recent water outages in Gauteng effectively tested that strategy.

During disruptions affecting Waterfall City from 28 January to 5 February, none of Attacq’s clients experienced water outages. Backup reserves were actively managed, and despite pressure on municipal supply, the lowest reserve level fell to only 64% of capacity.

Additional measures, such as smart irrigation systems connected to local weather stations, have also been implemented to minimise unnecessary water use.

Development pipeline expands
On the development front, Attacq continues to unlock both density and product diversification within Waterfall City.

Development executive David Oosthuizen stated that the group completed two significant projects during the six months: Vantage 12.1, the second data centre on the Vantage campus, and Ellipse Phase 3, known as Galileo.

The completion of Ellipse represents a major milestone for Attacq.

The residential scheme, delivered in partnership with Tricolt, comprises 672 units across four towers. Galileo, the final tower, includes 220 units, of which 194 had transferred by the date of presentation. Overall, the development is 98% sold.

Management described the project as a robust validation of both the residential product and the joint venture structure, especially considering that the scheme was launched during the COVID period.
Building on that success, Attacq has launched its second residential development with Tricolt, called The Spire.

The project includes 217 units, with 145 already sold and 111 considered bankable at the time of reporting. Construction approval has been obtained, and work is expected to commence in the coming months.

Oosthuizen also highlighted progress on Gateway East, a new 12,500m² speculative collaboration hub, and on logistics developments at Waterfall City Junction.

Gateway East was already 30% complete at the time of the presentation and approximately 35% reserved, including signed leases and letters of intent.

At Waterfall City Junction, Attacq is implementing infrastructure that will unlock substantial future development rights, with 86,000 m² of new development expected to be operational within the next 24 months.

Hotel and conference centre planned
One of the most notable upcoming projects is a new hotel and conference centre at Waterfall City.

Although Attacq had not yet identified its development partner and operator, Oosthuizen stated that the transaction agreements were nearing completion.

The hotel will comprise 180 rooms and a conference centre, organised on a lease basis rather than through a traditional management agreement.

Management believes this will inject new energy into the precinct and further enrich Waterfall City’s mixed-use development.

Balance sheet continues to strengthen
From a financial perspective, interim CFO Peter de Villiers presented a balance sheet that remains strong.

Net asset value per share increased by 2% to R19.32, while gearing edged down to 25.1% from 25.3% in June.

The interest cover ratio rose to 3.15 times, surpassing the three-times threshold for the first time, while the weighted average cost of debt fell to 8.9% from 9.2%, aided by lower base rates.

Attacq maintained its A+ credit rating, a key factor in supporting future access to the debt market, especially given the size of its development pipeline.

Available liquidity was R1.5 billion at the period-end, comprising cash and undrawn facilities.

Capital expenditure during the six months amounted to just under R360 million, covering reinvestment in the existing portfolio, developments under construction, and infrastructure rollout.

Outlook improves
The balance of evidence in these results indicates that a REIT is increasingly characterised by the combined effects of precinct development, specialised real estate exposure, and capital discipline.

Attacq is not simply benefiting from a cyclical lift in operating conditions; it is also beginning to harvest the returns from decisions made several years ago regarding portfolio shape, precinct infrastructure, and funding structure.

The upward adjustment to guidance is therefore substantial.
It indicates not only confidence in the second-half performance but also management’s belief that Waterfall City’s embedded growth drivers, along with a healthier balance sheet and improved portfolio performance, are translating into stronger earnings visibility.

For Attacq, the interim period seems to represent another step in the shift from recovery towards more sustainable growth.