JSE-listed capital growth property fund Attacq achieved a 20.6% increase in its net asset value (NAV) and a 17.9% improvement in its adjusted NAV per share for the financial year to June 30.

The company’s portfolio included Waterfall Business Estate, in Midrand‚ Garden Route Mall, in George, and Eikestad Mall, in Stellenbosch.

“Attacq’s solid set of results shows its net rental income increased by 47.6% to R954.1-million during the year and its asset value was boosted by 26.2% to R23.3-billion, with the size of its portfolio growing by 45.1% to over 565 000 m2 of investment-grade commercial real estate,” Attacq CEO Morne Wilken said at a press briefing in Johannesburg last month.

He noted that 80.2% of the company’s overall portfolio is green, energy-efficient business space.

Attacq’s share price grew 25.3% during the year, resulting in a market capitalisation of R16.6-billion at year-end.

Wilken pointed out that this strong perfor-mance was attributed to healthy income growth in the company’s core portfolio and the ongoing delivery of its development pipeline, as it completed 13 new developments during the year.
Attacq also made progress in better managing its debt by adding Absa to its funding mix and reducing its weighted average cost of debt to 9%.

Its overall gearing increased marginally to 36%.

Rising interest rates had led to an increase in Attacq’s fixed interest rate debt level to 75% from 63%.

Wilken stated that Attacq was also set to embark on a strategic programme to recycle capital, disposing of lower-growth mature assets and investing its capital astutely to fund higher-growth opportunities.
“We are pleased to report a robust set of results which extend our growing track record of delivering sustainable capital growth for our investors,” he said.

He added that property was a long-term asset and, as a capital growth fund, Attacq was in a unique position to take a long-term view to invest, develop and grow.

Since listing in October 2013, the fund had delivered a compound yearly growth rate in its share price to investors of 23.7%.

Despite a tough operating environment in South Africa, the company is confident that it will continue to build on its performance in the coming year, he concluded.