Attacq, a leading property company, has recently reported positive financial results during a challenging economic period. The company’s CEO, Melt Hamman, sat down with CNBC Africa to discuss the operating environment and the company’s strategies amidst economic uncertainty. Hamman expressed concerns about the political and economic uncertainties affecting the market, particularly in the 2019-2020 financial year. Despite this, Attacq was able to deliver on its promise to shareholders, achieving a distribution of 74 cents per share, in line with its guidance. The company’s net asset value per share also saw a significant increase of 22.2% to R24.24, with net rental income rising to R1.4 billion. Looking ahead, Attacq aims to achieve distribution growth of between 7.5% and 9.5% for the 2019 financial year.
The macroeconomic environment poses challenges for property companies like Attacq, with economists predicting inflation and interest rate hikes in a recessionary economy. In response to these challenges, Attacq has outlined a strategic focus on four key pillars: completed portfolio, waterfall development, expansion into Western and Eastern Europe, and diversification into African markets. The company’s retail properties, including the successful Mall of Africa, have demonstrated resilience with a 5.3% growth in trading densities, reflecting favorable tenant turnover rates. Despite economic pressures impacting consumer spending, strategic partnerships with leading businesses like PWC and Lloyds have bolstered trade activity in key developments such as Waterfall.
Tenant retention remains a critical focus for Attacq, particularly in the face of a challenging economic landscape. The company has navigated leasing challenges in Sunning Hill market by facilitating tenant relocations and consolidations. However, uncertainties surrounding land expropriation without compensation have raised concerns for Attacq’s development projects. Hamman emphasized the need for clarity and consistency in government policies regarding land expropriation to mitigate potential disruptions to ongoing developments.
In conclusion, Attacq’s proactive approach to navigating economic uncertainties and leveraging strategic partnerships has positioned the company for sustainable growth amidst challenging market conditions. As the property sector continues to adapt to evolving economic dynamics, Attacq remains committed to delivering value to its shareholders and stakeholders in the long term.
