Attacq's Nexus Waterfall property
JSE-listed real estate investment trust (Reit) Attacq has posted a 57.5% lower distributable income per share for the six months ended December 31 at R148-million, mainly owing to rental discounts of R53-million incurred during the period.
The rental discounts were mainly granted to support gyms, restaurants, cinemas and hotels in the South African portfolio which were more severely affected by the lockdown restrictions.
The company’s net profit amounted to R738.2-million in the six months under review, compared with R745-million reported in the six months ended December 31, 2019. On a like-for-like basis, net operating income increased by 3.4% year-on-year.
CEO Melt Hamman says 2020 was an extraordinary year with significant uncertainty, resulting in continued pressures on the overall economy and property sector.
However, Attacq’s diversified property portfolio, diligent capital management and its debt reduction plan has supported the company during this period and will ensure it is well-positioned to benefit from a future recovery.
Attacq had R1.3-billion worth of liquidity at the end of December 2020.
The South African portfolio improved the occupancy rate of 96.4%, compared to 93.6% at June 30, 2020. Rental income declined by just 1.3% to R1.12-billion, which is testament to the resilience of the property portfolio, states Hamman.
The South African portfolio valuation decreased by 3.2% in the six months under review on a like-for-like basis, while the South African portfolio occupancy levels improved to 96.4%.
For the interim period, the group net asset value decreased by 4.4% to R11-billion.
The company has resolved again not to pay an interim dividend, in efforts to preserve cash, after not paying a final dividend in the year ended June 30, 2020.
Meanwhile, Attacq has restated its diluted headline loss for the six months ended December 31, 2019, at 37.2c apiece, while it previously reported diluted headline earnings of 35.4c apiece.