Mall of Africa owner delivers mixed results

 ·12 Mar 2024
Mall of Africa image from Attacq

Attacq has seen an improvement in its retail portfolio but has also posted a headline loss per share for the period.

In its latest financial results for the six months ended 31 December 2023, the group reported gross revenue of R1.365 billion (up from R1.121 billion the year before), with attributable profits up to R261.8 million (from R198.7 million before).

However, one of the biggest contributors to the group’s profits for the period was a net fair value adjustment of its properties to the tune of R368.9 million.

Fair value adjustments are made to adapt a property’s value to reflect up-to-date market conditions – and are not additional cash flow or investment.

Thus, when discounting this adjustment, among others, to better reflect operations, the group actually posted a headline loss of R23.1 million for the period or a headline loss per share of 3.3 cents – down from R261.4 million (37.1 cps) before.

Despite this drop, the group declared an interim dividend of 30 cents per share (Dec 2022: 29 cents).

According to Raj Nana, Attacq CFO, the group’s full-year results are likely to reflect a stronger performance due to the proceeds from the R2.7 billion transaction with the Government Employees Pension Fund (GEPF), where it acquired 30% of Attacq’s Waterfall Investment Company (AWIC).

“The Waterfall City transaction with the GEPF…was used to reduce interest-bearing debt to R5.9 billion (Jun 2023: R8.4 billion), resulting in an improvement in the interest cover ratio to 1.93 times,” Nana said.

However, the impact of the transaction was only included for the final two months of the six-month reporting period – thus will have a larger impact on the full-year results ending 30 June 2024, when it will be included for eight of the 12 months, Nana said.

Positive news in the portfolio

The group said that the 12-month weighted average trading density across its retail portfolio jumped by 9.0% to R3,969/sqm (Dec 2022: R3,643/sqm).

The Mall of Africa in Midrand, which Lightstone named the busiest mall in the country in terms of visits and mall durations (counting per visiting vehicle), saw an 11.0% trading density increase.

However, it was beaten by Waterfall Corner, which saw the largest increase of 11.3%, while Eikestad Mall in Stellenbosch saw a 9.9% increase.

The group’s super-regional (Mall of Africa), regional (Garden Route Mall), and small regional malls (Eikestad Mall and MooiRivier Mall) have also continued to outperform the Clur Shopping Centre Index – an industry standard, tracking performance at more than 4 million sqm of retail space.

The turnover growth of the groups’ clients also increased rental income by 9.6% to R12.4 million.

The total foot count in the retail portfolio also increased by 5.3% year-on-year.

Mall of Africa experienced the highest increase in foot count, with a year-on-year growth rate of 10.2%, followed by Eikestad Mall, with a year-on-year growth rate of 8.0%.


The group’s rental income also increased by 9.6% to R1.3 billion (Dec 2022: R1.2 billion), primarily due to rental escalations and higher municipal recoveries due to higher municipal expenses.

The group’s property expenses, excluding expected credit losses (ECL) and the cost of sales of sectional title units, increased by 14.8% to R497.7 million (Dec 2022: R433.7 million), primarily due to the increased municipal costs.

“Further contributing to the increase are the costs incurred on Waterfall Circle in preparation for the occupation of the building by DP World and the resultant direct recoverable carrying costs; direct carrying costs previously passed on to Cell C as part of its rental are now allocated to Attacq’s property expenditure; and an increase in commissions paid due to increased letting activity,” said the group.

Group net profit from property operations, excluding the IFRS adjustment for straight-line leasing, net proceeds from the sale of sectional title units and ECLs, jumped by 6.4% to R763.4 million (Dec 2022: R717.3 million).

Earnings per share increased by 31.9% to 37.2 cents (Dec 2022: 28.2 cents).

FinancialsH1 2023H1 2024Change %
Earnings per share28.2 37.231.9%
Headline earnings/loss per share (cents)37.1-3.3-91.11%
Interim Dividend (cents)29303.45%

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