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ATTACQ LIMITED - Short-form announcement: Consolidated financial results for the year ended 30 June 2019

Release Date: 10/09/2019 07:30
Code(s): ATT     PDF:  
 
Wrap Text
Short-form announcement: Consolidated financial results for the year ended 30 June 2019

ATTACQ LIMITED
(Incorporated in the Republic of South Africa)
(Registration number 1997/000543/06)
JSE share code: ATT ISIN: ZAE000177218
(Approved as a REIT by the JSE)
("Attacq" or "company" or "the group")


SHORT-FORM ANNOUNCEMENT: CONSOLIDATED FINANCIAL RESULTS FOR THE YEAR ENDED 30 JUNE 2019



HIGHLIGHTS
   -   Full year dividend per share of 81.5 cents, increased by 10.1%, exceeding guidance
   -   Trading density growth in retail portfolio of 6.8%, with Mall of Africa having increased by 13.1%
   -   South African portfolio has a weighted average lease expiry of 6.5 years
   -   Interest cover ratio improved to 1.85 times from 1.78 times
   -   Seven buildings completed in Waterfall with a further nine buildings under construction
   -   Contribution to distributable earnings by Investment in MAS increased by 37.5%
   -   Reduction in Rest of Africa exposure with the disposal of interest in Achimota Retail Centre

NATURE OF THE BUSINESS
Attacq is a South African-based REIT, with a vision of delivering sustainable income and long-term capital growth
through a focused approach in real estate investments and developments. The quality South African portfolio is
dominant in its respective nodes, ensuring its defensiveness in a subdued economy and sets Attacq apart.

The group's business model is based on four key drivers, namely the South African portfolio, Developments at Waterfall,
Investment in MAS Real Estate Inc. ("MAS") and the Rest of Africa retail investments. Attacq's strategy is to exit the Rest
of Africa retail investments in an orderly manner.

Attacq is listed on the Johannesburg Stock Exchange ("JSE") and is included in the FTSE/JSE SAPY Index and FTSE/JSE SA
REIT Index. Attacq is also the only property company included in the FTSE/JSE Responsible Investment Top 30 Index.

The group has restated its prior year annual financial statements. For more information, refer to note 43 of the annual
financial statements for the year ended 30 June 2019.


FINANCIAL PERFORMANCE

                                                                                      Restated
                                                                Audited                Audited                  Change
                                                           30 JUNE 2019           30 JUNE 2018                       %
Distributable earnings per share        cents                      94.4                   80.7                    17.0
Total assets                            R’000                27 050 401             27 853 054                    (2.9)
Net asset value per share               cents                     2 216                  2 424                    (8.6)
Gross revenue                           R’000                 2 283 244              1 982 374                     15.2
Earnings per share                      cents                    (85.7)                  384.5                  (122.3)
Headline earnings per share             cents                      74.2                  323.9                   (77.1)

PROSPECTS
In September 2018, guidance was provided for dividend per share ("DPS") growth of between 7.5% and 9.5% for the year ended 
30 June 2019; and between 13.0% and 15.0% for the year ending 30 June 2020.

Attacq achieved DPS growth of 10.1% for the year ended 30 June 2019, creating a higher DPS base. Furthermore, the
board's decision not to distribute rental income relating to the 40.9% of Edcon leases will negatively impact distribution
for the year ending 30 June 2020. Taking these factors into account, Attacq is targeting DPS growth of between 8.0%
and 10.0% for the year ending 30 June 2020.

This guidance is based on the following assumptions:
     -   Achieving forecasted rental income based on contractual terms and anticipated market-related renewals
     -   Tenants will be able to absorb the recovery of rising utility costs and municipal rates
     -   The expected roll-out of the current and budgeted development portfolio
     -   MAS meeting its three-year dividend target
     -   No unforeseen circumstances such as major corporate tenant failures or deterioration of the macro-economic
         environment

The prospects have not been reviewed or reported on by Attacq's auditors.

PAYMENT OF FINAL DIVIDEND
The board declared a final cash dividend of 41.00000 cents per share out of the company's distributable income.
This brings the fully year dividend to 81.5 cents per share (2018: 74.0 cents per share).

The dividend is payable to Attacq shareholders in accordance with the timetable set out below:
Last day to trade cum dividend                                                        Tuesday, 1 October 2019
Shares trade ex dividend                                                              Wednesday, 2 October 2019
Record date                                                                           Friday, 4 October 2019
Payment date                                                                          Monday, 7 October 2019

Shares certificates may not be dematerialised or rematerialised between Wednesday, 2 October 2019 and Friday,
4 October 2019, both days inclusive.

Payment of the dividend will be made to shareholders on Monday, 7 October 2019. In respect of dematerialised
shareholders, the dividend will be transferred to the CSDP accounts/broker accounts on Monday, 7 October 2019.
Certificated shareholders' dividend payments will be posted on or about Monday, 7 October 2019.

Where the transfer secretaries do not have the banking details of any certificated shareholders, the cash dividend will
be held in trust by the transfer secretaries pending receipt of the relevant certificated shareholder's banking details
where after the cash dividend will be paid via electronic transfer into the personal bank accounts of certificated
shareholders.

This short-form announcement is the responsibility of the directors and the contents were approved by the board on
10 September 2019. This short-form announcement is a summary of the full announcement released on SENS, and
published on 10 September 2019 and does not include full or complete details. The information regarding the tax
treatment of the dividend will be released separately. The short-form announcement has not been audited or reviewed
by the company's external auditors. The full announcement is available on the company's website at
www.attacq.co.za and can be accessed using the following JSE link:

https://senspdf.jse.co.za/documents/2019/jse/isse/ATT/2019FYRes.pdf.

The full announcement is available for inspection at the registered offices of the company or its sponsor, at no charge,
during office hours from Tuesday, 10 September 2019 to Tuesday, 17 September 2019. Any investment decision should be
based on the full announcement available on the company's website.

By order of the Board

P Tredoux                                                M Hamman
Chairman                                                 CEO

Johannesburg
10 September 2019

Independent non-executive directors
P Tredoux (Chairman)
HR El Haimer (Lead independent)
MM du Toit
IN Mkhari
BT Nagle
S Shaw-Taylor
JHP van der Merwe

Executive directors
M Hamman (CEO)
R Nana (CFO)
JR van Niekerk (COO)

Interim company secretary
Peter de Villiers (CIO)

Registered address
ATT House, 2nd Floor, Maxwell Office Park, 37 Magwa Crescent, Waterfall City, 2090

Transfer secretaries
Computershare Investor Services (Pty) Ltd, Rosebank Towers, 15 Biermann Avenue, Rosebank, 2196
(PO Box 61051, Marshalltown, 2107)

Sponsor
Java Capital, 6A Sandown Valley Crescent, Sandton, 2169

Date: 10/09/2019 07:30:00
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