Last close As at 05/08/2026
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Research: Real Estate
Attacq is a diversified real estate investment trust (REIT), which generates revenue from a ZAR22.9bn investment property portfolio made up of shopping centres, collaboration hubs (offices), logistics, hotels and data centres in South Africa. It also taps into its huge land bank and 1.4 million sqm of bulk with development rights in various sectors to build residential properties for sale. Attacq’s gross revenue for FY24 increased 6.9% to ZAR2.6bn, largely bolstered by rental income growth of 8.8% to ZAR2.5bn. Distributable income per share (DIPS) came in at 86.2c, up 19.9% y-o-y, above management’s previous guidance. Attacq has provided DIPS guidance of 103.4c for FY25, which implies an 82.7c dividend per share, given the 80% payout ratio. The stock is trading at a price to NAV multiple of 0.7x, with a dividend yield of 5.3% and a shareholder yield of 31.8% (sum of dividend yield, share buyback yield and net debt repayment yield). The share buyback and net debt repayment yields are 0.6% and 25.9%, respectively, although the shareholder yield has benefited from asset sales.
Attacq |
FY24 distributable income outperforms
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Real estate |
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12 September 2024 |
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Attacq is a diversified real estate investment trust (REIT), which generates revenue from a ZAR22.9bn investment property portfolio made up of shopping centres, collaboration hubs (offices), logistics, hotels and data centres in South Africa. It also taps into its huge land bank and 1.4 million sqm of bulk with development rights in various sectors to build residential properties for sale. Attacq’s gross revenue for FY24 increased 6.9% to ZAR2.6bn, largely bolstered by rental income growth of 8.8% to ZAR2.5bn. Distributable income per share (DIPS) came in at 86.2c, up 19.9% y-o-y, above management’s previous guidance. Attacq has provided DIPS guidance of 103.4c for FY25, which implies an 82.7c dividend per share, given the 80% payout ratio. The stock is trading at a price to NAV multiple of 0.7x, with a dividend yield of 5.3% and a shareholder yield of 31.8% (sum of dividend yield, share buyback yield and net debt repayment yield). The share buyback and net debt repayment yields are 0.6% and 25.9%, respectively, although the shareholder yield has benefited from asset sales.
Improvement in occupancy rates
Attacq’s group occupancy rate was registered at 92.8%, a slight improvement from 92.5% in FY23. The blemish remains the collaboration hubs, which have an occupancy rate of 86.2%, due to Waterfall View, Allendale Building and Brooklyn Bridge Office high vacancy rates. By contrast, the retail and logistics segments posted 97.3% and 93.4% occupancy rates, respectively. The logistics vacancy was caused by the two newly completed midi-units. In FY24, Attacq’s retail portfolio delivered a strong performance, as demonstrated by the rent reversion rate of 5.6% and rent escalation growth of 6.5%. Since July 2022, Mall of Africa, Attacq’s largest mall, has posted a 23% growth in trading density, higher than the Clur Index benchmark growth of 15.8%. Similarly, in FY24, super and regional malls’ footcount (the number of people in a space) monthly growth rates were consistently positive, except for the MooiRivier Mall and Garden Route Mall. However, the 12-month trading density growth rates were 8.9% and 6.4%, respectively.
Debt management underpins strong balance sheet
Attacq’s debt position has benefited hugely from the ZAR2.7bn sale proceeds of a 30% share in Attacq Waterfall Investment Company to the Government Employees Pension Fund. Gross interest-bearing debt decreased to ZAR6.1bn from ZAR8.4bn in FY23. Consequently, the loan-to-value ratio improved to 25.4% from 37.3% in FY23. Attacq has ZAR874.6m in available liquidity, with 55.2% in unrestricted cash balances. The interest cover ratio increased to 2.3x, a significant improvement from 1.7x in FY23. Management expects gearing to remain below 30% for FY25.
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Historical financials
Source: Company financial reports. Note: *Distributable income per share. |
EDISON QUICKVIEWS ARE NORMALLY ONE-OFF PUBLICATIONS WITH NO COMMITMENT TO WRITING ANY FOLLOW UP. QUICKVIEW NOTES USE CONSENSUS EARNINGS ESTIMATES.
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Research: TMT
In H125, Checkit reported year-on-year growth in annual recurring revenue (ARR) of 9%, with strong order intake partially offset by higher churn. Existing customers contributed more than half of ARR growth, evidence of the land and expand strategy at work. The company maintains its short- and medium-term outlook, including its target to reach EBITDA break-even in FY27, with the narrowing H125 EBITDA loss confirming progress towards this. We maintain our ARR, revenue and EBITDA forecasts and reduce our cash forecasts to reflect one-offs and higher R&D investment.