Johann Kriek
Reslilient REIT
CEO
Resilient REIT has reported a 2.9% increase in tenant retail sales for the ten months ending October 2024, with a 3.6% rise on a rolling twelve-month basis. Despite ongoing construction and asset management at Mahikeng Mall, Tzaneng Mall, Diamond Pavilion, and Boardwalk Inkwazi, this growth occurred.
The mining industry’s recent struggles negatively impacted the turnover of Kathu Village Mall, Northam Plaza, and Tubatse Crossing. However, Jabulani Mall saw a remarkable 15% turnover growth thanks to introducing a franchised Pick n Pay store. Mams Mall benefited, too, with a 13% increase aided by Spar’s performance and Unimart’s introduction.
As of November 2024, Resilient’s pro rata share of vacancies, including planned ones due to asset management initiatives, was at 2.4%. Lease renewals covering over 263,142 square meters increased on average by 4.7% over expiring rentals. In comparison, new leases for 34,210 square meters rose by an average of 15.9% over outgoing tenant rentals, leading to an overall average rental increase of 6.1%.
Construction at Irene Village Mall, intended to accommodate Checkers, has been postponed pending a decision from Shoprite Checkers regarding its expansion to a Checkers Hyper. The extension of Tzaneen Lifestyle Centre is expected to begin in 2025, pending Board approval, while labour unrest has delayed The Village Klerksdorp’s opening until the end of March 2025.
Internationally, Resilient’s Spanish portfolio reported an 8.7% sales growth for the nine months ending September 2024, with a 2.1% increase in foot traffic during the same period. In France, tenants showed improvement with a 3.9% sales growth in Q3 2024, although sales for the full nine-month period dipped by 0.5%, with vacancies maintained at 7.8%.
Resilient currently holds a 30.4% stake in Lighthouse Properties, following its decision to receive half of the June 2024 dividend as a scrip dividend and its R300 million investment in Lighthouse’s equity raise.
The Board projects the FY2024 dividend to fall between 428 and 433 cents per share.