Attacq feeds off Waterfall City growth

Attacq, the property group behind Waterfall City, has found a winning formula in a challenging economic climate. The CEO of Attacq, Melt Hamman, credits the company's success to a combination of factors, including the quality of their shopping centers and strategic investments. Despite the uncertain economic landscape and the struggles faced by peers in the industry, Attacq has managed to exceed its own guidance, increasing its interim dividend per share by an impressive 11.1 percent. This growth is driven by the strong performance of flagship properties like the Mall of Africa, where trading densities have risen substantially. Hamman emphasizes the importance of focusing on the fundamentals of the business, such as happy tenants and debt reduction. Attacq is in a transition period, actively divesting non-performing assets to reduce debt and improve earnings. By streamlining their portfolio and optimizing cash flow, the company aims to continue delivering value to shareholders. One of the key challenges facing Attacq is the delicate balance between rental increases and tenant satisfaction. Rising operational costs, particularly taxes and utilities, put pressure on landlords to maintain profitability while keeping tenants content. Hamman acknowledges the pushback from tenants on rental escalations and notes a shift towards more moderate increases aligned with inflation. In a bid to enhance sustainability, Attacq closely collaborates with tenants to manage occupancy costs effectively. The concept of flexible workspace is gaining traction, with tenants opting for smaller spaces and seeking cost-effective solutions. This trend underscores the importance of adapting to evolving market needs and maintaining high occupancy levels. While uncertainty looms over the industry, Hamman sees opportunities in the current landscape. While not currently engaged in talks for mergers or acquisitions, he remains open to potential strategic moves that could enhance shareholder value. The focus remains on what the company can control, prioritizing tenant satisfaction and operational efficiency. Amid discussions in the industry about potential consolidation, Attacq's strategy revolves around leveraging its core strengths and maintaining a customer-centric approach. By staying agile and responsive to market dynamics, Attacq aims to navigate the challenges ahead and sustain its growth trajectory. As Attacq continues to thrive in a competitive environment, the company's commitment to fostering positive tenant relationships and driving operational excellence serves as a solid foundation for future success.