Resilient REIT has predicted a dividend of between 428 cents and 433c per share for its year to December 31, 2024, compared with 406.24c last year, the company’s directors said yesterday.
Resilient, which specialises in regional shopping centres, said yesterday that its retail sales increased by 2.9% in the 10-month period to end-October 2024, despite construction activity and subdued mining industry activity.
There were construction and asset management activities at Mahikeng Mall, Tzaneng Mall, Diamond Pavilion and Boardwalk Inkwazi, Resilient directors said in a pre-close update.
A subdued mining industry performance, particularly in the last five months, negatively impacted turnover at Kathu Village Mall, Northam Plaza and Tubatse Crossing, they said.
Some better-performing centres included Jabulani Mall, which saw 15% turnover growth after a franchised Pick n Pay store was introduced. Mams Mall’s 13% rise in turnover was boosted by the performance of Spar and the introduction of Unimart.
Resilient's share of vacancies, including planned vacancies due to asset management initiatives, was 2.4% at November 2024, the directors said.
Lease renewals over 263,142 square metres of gross lettable area (GLA) were concluded on average 4.7% higher than the expiring rentals.
New leases were concluded for 34,210 square metres of GLA on average 15.9% higher than the rentals of the outgoing tenants. In total, rentals for renewals and new leases increased on average by 6.1%.
Construction at Irene Village Mall to accommodate Checkers had been delayed pending confirmation from Shoprite Checkers to extend the format to a Checkers Hyper.
Construction on the extension of Tzaneen Lifestyle Centre was anticipated to start in 2025. As a result of labour unrest, The Village Klerksdorp was expected to open at the end of March 2025.
Resilient was reducing its reliance on grid-provided electricity. Installed solar energy generation was expected to increase by 16.4MWp in 2024, to 76.5MWp. The additional capacity was projected to supply 34.2% of Resilient's total energy consumption.
Batteries supported the solar installations, and power management and demand were being optimised through the introduction of automated mini-grid systems. An automated mini-grid system at Irene Village Mall had been completed, with the system at The Grove Mall expected to be completed in early 2025. Resilient was evaluating the installation of five more battery systems.
In Spain, Resilient owns Salera Centro Comercial centre in a joint venture with Lighthouse Properties. Resilient’s directors said the economy was delivering strong growth from tourism, immigration, lower unemployment, and rising foreign investment, which has benefited consumers and tenants.
“New tenants are entering the market, and many of the established tenants are looking at expanding their number of stores in the country,” they said.
Salera was also benefiting from the consolidation in the region post the closing of Zara and other Inditex brands on the high street.
In France, where Resilient has interests in four regional malls in partnership with Lighthouse Properties, the economy was impacted by slow economic growth and political instability.
Sales and footfall had improved since June 2024, however, with sales growth of 3.9% being recorded in the third quarter. Vacancies in the French portfolio remained at 7.8%, with negotiations underway for some of the large vacant units.
BUSINESS REPORT