Attacq on a mission to de-gear, says CFO Raj Nana

The REIT has reduced its gearing ratio to 43.3 percent and has reported a liquidity improvement to R1.7 billion.

Following an undeniably challenging two years for most sectors, but specifically the real estate industry, Attacq has reported growth for the financial year ended 30 June. The REIT, which had been affected by the lockdowns and restrictions tied to the Covid-19 pandemic during 2020 and 2021, has reported an improvement in its liquidity to R1.7 billion.

According to CFO Raj Nana, Attacq is on a de-gearing mission, having reduced its gearing ratio to 43.3 percent in the financial year under review, compared with 45.7 percent in the prior year. As a result, the group isn’t planning to incur further debt to undertake further development.

As part of the de-gearing mission, Attacq sold R2.6 billion worth of assets in the period, including 2 Eglin road in Sunninghill, MAS Real Estate shares and Deloitte’s head office in Waterfall City.

Attacq’s South African operations reported a 9.1 percent increase in distributable income to 16.8 cents a piece, with Waterfall City’s increasing by 30.6 percent year-on-year to 33.3 cent a piece.

However, group distributable income decreased by 35.9 percent year-on-year to 46.8 cents a share.

The group resolved to not pay a final dividend for the 2021 financial year in order to optimise its capital structure for development capacity.

Raj explains that the company will consider resuming a dividend in the 2022 financial year, but it intends to first further improve its gearing position.