JSE-listed Attacq reported a 10.1% increase in its net asset value to R23.51-billion for the six months ended December 31.

The group generated distributable earnings a share of 38.9c, while its gearing ratio improved from 41.4% to 36.2%.

“As we transition to a real estate investment trust (Reit), we remain focused on our four value drivers, namely our South African portfolio, strategic investment in MAS, the Waterfall development pipeline and our retail investments in the rest of Africa, while ensuring that we deliver sustainable growth and unlock shareholder value,” CEO Melt Hamman said in a statement on Tuesday.
  
Over the six months under review, the company concluded 92 456 m² of leases for new office and industrial space.

“With five buildings having been completed during the reporting period, the development pipeline within the Waterfall portfolio remains strong. Construction commenced on the Pirtek and speculative warehouse development post the reporting period, with an estimated total primary gross lettable area (PGLA) of about 8 121 m², valued at an estimated R75.5-million,” Hamman said.
 
Attacq, through two 50:50 joint ventures with Barrow Properties and Zenprop, is developing the mixed-use Atria development and Waterfall Corporate Campus Office Park.

Once completed, these two developments will add 71 348 m² PGLA to the completed Waterfall developments. 
 
Meanwhile, rental income increased by 6.9% to R980-million, while net rental income decreased by 2.2% and was negatively impacted on by straight-line lease income adjustments.

Developments completed during the past six months added 100 676 m² of PGLA, bringing Attacq’s total PGLA to 807 467 m².
 
During the past six months, Attacq successfully refinanced R3.2-billion of debt through its Attacq Retail Fund Proprietary and Lynnwood Bridge Office Park Proprietary portfolios. 
  
“As part of our risk mitigation strategy, about R11.3-billion, or 98%, of total committed facilities of R11.5-billion were hedged by way of fixed interest rate loans and interest rate swaps as at December 31,” said Hamman.