Resilient REIT has declared an 8.4% increase in its total dividend for FY2024 to 440.25 cents per share as opposed to FY2023’s 406.24 cents per share, 1.7% ahead of the upper end of its 433 cents per share guidance.

Its South African portfolio recorded net property income (NPI) growth of 7.5% for the year (excluding Mahikeng Mall which was extended).

Resilient owns 27 retail centres in South Africa with a GLA of 1.2 million square metres. Its tenants’ retail sales increased by 3.5% during the year ended December 2024 despite construction and asset management activities at Boardwalk Inkwazi, Diamond Pavilion, Mahikeng Mall, and Tzaneng Mall.

However, the subdued performance of the mining industry, particularly during the second half of the year, negatively impacted the turnover at Kathu Village Mall, Northam Plaza, and Tubatse Crossing.

Jabulani Mall achieved turnover growth of 13.6% following the introduction of a franchised Pick n Pay store with the performance of SPAR and the introduction of Unimart at Mams Mall contributing to 13.1% growth in turnover for the shopping centre.

During Q4 2024, retail sales increased by 5.5%, supported by a stronger performance in October (+6.1%) and November (+9.6%) because of two-pot retirement withdrawals and the post-payday Black Friday which impacted December’s performance by +2.5%.

The REIT reported lease renewals of over 278 542m² of GLA and on average, 4.7% higher than expiring rentals. New leases were concluded for 34 210m² of GLA, 15.9% higher on average than the rentals of outgoing tenants. In total, rentals for renewals and new leases increased on average by 6.1%.

Resilient’s pro rata share of vacancies in its portfolio was 2% as at December 2024.

The Group’s offshore investments contributed to the growth in distributable earnings with its Euro distribution per share from Lighthouse declining by 4.9% compared to FY2023 however, Resilient says it benefited from its forward exchange contracts that resulted in the Rand equivalent distribution per share increasing by 4.1%.

The REIT owns a 40% interest in Retail Property Investments SAS in France, which owns four regional shopping centres, in partnership with Lighthouse. Despite the French economy being affected by political instability and slow economic growth during 2024, comparable sales for the year increased by 1.8%.

Leasing activity resulted in the reduction of vacancies in the French portfolio from 7.9% as at December 2023 to 5.8% as at December 2024.

Resilient and Lighthouse each own a 50% interest in Spanish Retail Investments SAS which owns Salera Centro Comercial, a shopping centre in Castellon, Spain which recorded comparable sales growth of 12.8% for the 11 months ended December 2024 with a 0.1% vacancy rate.

The Group’s entire property portfolio was externally valued in December 2024 at R1.4 billion, reflecting a 5% increase.

Resilient elected to receive 75% of the Lighthouse dividend for June 2024 as a scrip dividend and invested a further R300 million in Lighthouse during its equity raise in September 2024. The Group owns 30.4% of Lighthouse.

Its loan-to-value (LTV) ratio currently sits at 37.9%, up from 35.2% in FY2023.