Attacq Limited ($ATT)

Thank you to everyone that is joining us here at the Courtyard in Waterfall City this morning. Welcome to everyone online. Welcome to our Board members, to all our stakeholders this morning. It's really a beautiful morning here in Johannesburg. I hear there's a heat wave in Capetown. But this morning, we've got a beautiful autumn morning here in Johannesburg. So firstly, I'm not going to make any comment about the Iran war and what's going on in the Middle East. I believe in South Africa, we -- and as Attacq, we're going to control the controllables, and that's how we manage our business. And I think today's result is evident of what we've been doing over the number of years, controlling the controllables in our business. So that if the uncontrollables happen like an Iranian war, which we do not control, becomes just so much more manageable. I think our balance sheet, the ICR, everything from an Attacq point of view, we've worked very, very hard to get a healthy balance sheet. And for that, we are very proud and thankful for the support that we've received. In South Africa, over the last year, we've definitely seen how the South African economy is starting to shape itself in a bit more certainty. We've seen some disciplined physical reform happening, which gives business confidence and stability in our economy. And that's something you really need in a business like ours, where we are investing in real estate and infrastructure, we really need the stability that provides a foundation for us for planned to be confident in the capital we are spending and then also invest responsibly with the government that is making responsible financial structural reforms in our business. And with that, this morning, I'm saying good morning, welcome. We're a little bit cautious optimistic still, even though there's something going on in the Middle East with disciplined recovery and renewed economical credibility. So thank you, and welcome to our results presentation. This morning, I'm going to give you an overview of our strategy. Mike will delve into the operational update of the business. David Oosthuizen will give us a development update, and then Pete will give us the financial results for the last 6 months. So if we look at our highlights for the last 6 months, our distributable income per share grew by 9.6%. Our interest cover ratio, just as I said, is a healthy 3.15x, gearing stable at 25%. What has driven our distributable income per share is our net operating income growing by 5.2%. That is backed by increased occupancy now at 93.7%, really good collections of 100% always of the team. We can't distribute anything we haven't collected. So let's collect all of the money. Our weighted average annual trading density increased by 4.2%, and Michael will delve deeply into the trade and the retail landscape to that. What has also helped our operating income is the new business and the leasing we've done, 22,000 -- just over 22,000 square meters of new leases signed, which is just incredible. On the development front, we've completed just under 25,000 square meters of development, and David will go into the detail. But I think just standing still today, we've completed our first residential development morning on Ellipse. We're currently 98.2% bankable sales sold. This is a development we started pretty much in COVID with a partner, Tim Kloeck with Tricolt. And this is a testament of good partnership, having the right product. And I would not say we're always having the right time because we started with this in COVID, but believing in a great product and completing the four towers is just a great testament of what can be done. We currently have got just under 50,000 square meters of effective GLA under construction or planned, which is about a ZAR 1.3 billion of development work that we will be doing. Another big component for us is the infrastructure that we place in our resilience. Over the number of years, we've made a strategic call in Attacq to invest in PV -- in our PV program and our rooftop solar, but also in water backup, which is vital important for us in managing this dominant precincts in South Africa. Coupled with that, we've also said that infrastructure alone, we can't just implement. And you'll see that we've established a water task team. This water task team is to ensure that it's proactive hands-on management of our water. We established this task team to monitor and oversee our water systems across our precincts to ensure that we work closely with our clients, Waterfall management, Johannesburg water, and then with all of our other stakeholders to ensure that we coordinate and we could rapid respond in all of the water outages we have had over the last few months. And Michael will go into some details of our water planning that we've done over the last few months. If you go on our business alignment and we're a REIT, and we're a proudly South African REIT. Our focus is South Africa only with our precincts in South Africa. Waterfall City is the dominant engine of growth for us in our business, supported by the rest of South Africa that drives and supports the Waterfall City growth and investment. You'll also note that we've got a well diversified portfolio in South Africa. It's retail experience hubs, collaboration hubs, logistics hubs. We'll see how that logistics hub portfolio will continue to grow with the proclamation of Waterfall Junction. And you'll see today when David presents, the 2 new developments at Waterfall Junction. Other developments is our data centers and some other smaller assets, but also again, how the data center is backed by a 20-year lease with Vantage opco will drive sustainable growth in our NOI. So really, from a portfolio point of view, we've got great growth drivers and a lot of stability driving our NOI growth. How are we tracking our strategy for the year. As you can see that we're tracking really well and getting really great momentum in our Waterfall City developments, but also in our precincts with placemaking and ensuring that our hubs remain dominant. We are planning some upgrades in 2 of our precincts. We can't mention which precincts at the moment, as we're busy with sensitive lease negotiations, but also investing outside Waterfall in our precincts to ensure that we remain relevant and up-to-date with what our clients and our communities would want to ensure that there's a pleasurable shopping experience at all of our precincts. Continued growth in our NOI is always a big focus for us in Attacq. And really, over the last 6 months, we've seen now the occupancy, new retail -- new business we've driven, new leases we've signed, the PV program that is paying off, high recovery of our utilities are running at a 95% utility recovery rate, really boasting well in our strategy for continual sustainable NOI growth. Also in the next few months, we are looking forward with the PPA coming online, 50-megawatt PPA, which will come online in the new financial year. Robot system support, we're currently busy with the new ERP system changeover, not easy doing something like this in your business, but vital necessary. And with that, I just want to pause and say thank you to all of the Attacq staff for your -- the way you've embraced this new ERP system changeover, the positivity that all of the staff has embraced it with. It's not easy, but trust me, we'll -- the fruit will be bearing at the end when we've got a better system, there's better scalability, much better efficiencies in our system. Then the last component of our strategy is the disciplined capital allocation. Now in our business, there's a lot of tug of war of who gets allocated what capital. But for us, at the end of the day, it's balancing all of our strategic initiatives. It's infrastructure investment, top structure development, upgrades in our precincts, and then very important, our resilience projects, with a clear objective to ensure that we preserve value today and grow the earnings for the future. I'm going to ask Mike to now delve deeper into the operational update.

Thank you, Jackie. I'll take us through some of the key property metrics in our underlying portfolio that underpins some of the financial performance that Jackie spoke about earlier. If we look at the net operating income, those numbers in the bar charts on the left indicate which proportion of the NOI come from which hub. You'll see that retail experience hubs really still dominant, being 50% of the NOI, and that's also growing at 5.1%. If you look at the top of the bar, you'll see a big spike in the other income NOI, and that was the second data center for Vantage or what we refer to as Vantage 12.1 coming on stream during the 6 months reporting period, boosting the NOI from that category. Our like-for-like 6 months valuation changes, up at 1.4%. Just important to note that this is the change for 6 months only. Once again, these numbers are influenced by cost to complete or some planned capital that we intend to spend on some of these assets. And also exciting to see that collaboration hub is growing at 2.4%, underpinned by all the leasing activity, the growth in the rentals that we are able to achieve in our collab hub portfolio. Occupancy, some nice growth to 93.7% for the portfolio. And for me, really, that was the story of the 6 months. If we look at the top there, you'll see a net occupancy gain of just over 19,000 square meters in our portfolio, about 5,500 square meters of that was bringing on new GLA. So that was the data center that David's team delivered. But within our existing portfolio, we absorbed another 15,000 square meters of new leases, taking care of some vacancy and really, that was a very, very positive development. If we look at the renewals and new deals, once again, some good news there. Our retail experience hubs growing at 3.6% on expiry. I also just want to note that for this period, although it's not completely included in this number, because this is only a 6-month number and not a 12-month number. But the more of Africa 10-year renewal cycle is also included in this year. There's 108 leases that our team had to deal with. Of those, they've already renewed more than 70 of those individual leases, only 1 or 2 big nationals still outstanding. And certainly, it's very positive to also know that with that already being done, the reversion rate is positive for retail. Collab hubs, also good with the reversion rate of just under 6%, certainly a lot more positive than it used to be in the past. And once again, the indicator of the net rentals we are able to achieve, specifically in our Waterfall collab hub portfolio. If we look at the retail experience, our portfolio on its own, Jackie mentioned earlier, the trading density growth of 4.2%, but there's also a few other key metrics that indicate the health of our retail portfolio. One of them would be the turnover rent that we've built for the 6 months. You'll see that for the comparable period, it's up 33% versus the prior year, and also the growth in the non-GLA income, up 12.8% versus the same 6-month period in the prior year. As I said earlier, some indicators that there's some good health in our retail sector. If you look at the food count, you'll notice there that more of Africa, 17 million people visiting over the last 12 months. It looks slightly down. If we look at some of that detail, we expanded and reconfigured the Checkers about a year ago. With that, we've also reconfigured where the 60-60 delivery bikes were being accessed and also leave the facility. So some of those feet don't go through our normal food counters anymore. So really, it's sort of an artificial loss of foot count. Nothing that concerns us at the moment. There's been a big focus on cost control, and we now see that coming through our numbers. So once again, a heartfelt thank you to all our teams at the precincts that actually is the action behind these final numbers at the end. And our net cost-to-income ratio down to 21.4% from 22.4% for the comparable period previously. Where we did see some growth, it's underpinned by action. So we increased the complement of the security at Mall of Africa. And also we're sort of the champion founder of a new special rating area in Stellenbosch around the Eikestad Mall, making sure that we invest, but also sort of get our neighbors to partake with us in making that precincts more safe and clean. Then the deferred leasing charges. We concluded a renewal of Cell C for another 10 years. And you will see that amortization of that initial TI being sitting in the growth in the deferred leasing charges section. Also happy with the municipal recovery ratios. You'll see that metric also looking better than it did 12 months ago, increasing to 95.3% as we add more solar installations to our properties. There certainly has been a story in Kaalfontein at the start of this year, and that was the water outages that we've had to suffer. I want to just point out that you'll see the chart there actually starts in June '24. So this is project that we've been busy with for a number of years, and really only the impact coming to bear fruit now when we did have the outages. But systematically, we've been increasing the water backup at all our precincts. When we did have the water outages here in Kaalfontein, specifically at Waterfall City between 28 January and the 5th of February, none of our clients suffered any water outages. You'll see there that we monitor all the backup water facilities that we have installed. And the one that went to the lowest level was only down at 64%. So effectively, what happened is although we've got 5-day water back up, due to low water pressure, these tanks would fill up again in the evenings or early morning hours, and in that way, we were able to get through that entire period without suffering any outages. It's not only the buildings that have received some attention. Although we do get water from boreholes here in Waterfall City, we've also installed a smart irrigation system. That means it's linked into a weather station we have here in Waterfall City. So we want to just curb any unnecessary use of water. So if it rains, of course, all these pumps have been digitally switched off. So we can't use water when its not necessary to use any water. Couple of highlights. For the last 6 months, there's a beautiful COACH at Mall of Africa. Maybe in Q&A later, we will talk about some of the underlying performance. You'll see that the luggage category went up by more than 20% versus the prior period, but that was due to the inclusion of COACH now into that category. We've also got an indication there of actually how big the special rating area in Stellenbosch is, that is effective from October. It took about 12 to 18 months to get it all legislated and set up, and it's been sort of doing its work since October of last year. And then another great photo of the water tanks at Mall of Africa, which had to be installed after the effect within the existing infrastructure at Mall of Africa. And it just gives you a sense of the scale of some of these installations. Lastly, I just want to touch on the BASF fit out that in The New Ingress 3, that David's team delivered in May of last year. And once again, it's so comforting to see just the planning, the effort and the amount of money that our clients do spend on fitting out their premises here in Waterfall City. And with that, I'll hand over to David.

Good morning, everybody. So touching on the development space, just focusing on a couple of highlights. As Jackie mentioned, we've completed 2 buildings in the last 6 months being Vantage, 12.1, which is the second data center here at Waterfall as well as Ellipse Phase 3, which is the Gallileo Tower. We commenced construction on Gateway East, which is our new spec collaboration hub and as well as commenced construction on the new LP3 spec warehouse. You'll see on the graph at the bottom, it's under pipeline. The only reason is we account for it for under construction, when top structure comes out of the ground. Currently, we are finalizing the sills and will commence top structure probably within the next 4 to 6 weeks. On the back of the success of Ellipse, we launched the new residential scheme, JV with Tricolt again, called Aspire. We launched that in May of last year. Sales have gone exceptionally well, and we went to the investment committee in the last couple of months to get approval for the commencement of construction. We got that approval, so we will be commencing construction in the next 2 to 3 months. Infrastructure spend on Phases 1 to 4 at Waterfall City Junction is well on the way. We're planning on completing that at the back end of the year. This essentially unlocks 400,000 squares of the 600,000 square of bulk at Waterfall City Junction. Phase 1 is already proclaimed. So we have 150,000 squares available for new development, and that is where we are currently building our spec build, and we've got a pipeline tenant-driven development as well. So in total, we've got 86,000 squares of new development coming into Waterfall City over the next 24 months. It's roughly ZAR 2.1 billion in total. If you look at that from an effective point of view for Attacq, that's roughly 47,000 squares of new development, totaling just under ZAR 1.3 billion. So this is Ellipse. So as Jackie mentioned, this has been a long journey. It's probably almost 7 years. A large scheme, 672 units over 3 phases, 4 buildings. We have just completed the last building called Galileo, 220 units, of which we have now transferred 194 units as of today's date. We are 98% sold out. So it's been a massive success. And I think for our first residential scheme, I think we found a JV partner that we really believe in. I think their product is exceptional, and we do enjoy working with them. This is Vantage. So this is the Vantage campus at LP9 North. It is totaling roughly 120,000 squares, of roughly 70,000 squares is earmarked for new data set and development. The other 2 buildings in the precinct is the Cotton On building in Cummins. So you'll see in the bottom right is the first data warehouse we completed about 4 years ago called JNB 11 with Vantage, and we have just completed the second one, which is the one in the front there, which is 12.1, so that's half of Phase 2. And in Phase 3 is where the civil works has been completed on the left-hand side there. So we are in planning stages for the third building currently with Vantage, and a tax involvement is -- we are involved in the dark shell there, which is essentially a shell and core, of which Vantage opco sign a head lease back to the 2 propcos on that. So this is an image we've never shown before, but I think it tells a really exciting story. So for the last couple of years, I've been saying that we've really been tried to focus on how we roll out the inner city, which essentially is LP10. We want to focus on the west to the east. We want to focus on proclaim sites because that obviously costs us money, on rates and taxes point of view and levies. We want to focus on sites that we've got spent infrastructure. So the nature of Waterfall City when it was originally developed, a lot of infrastructure had to go in upfront, which obviously carries a lot of costs. So we want to convert that idle capital income producing capital. And we also want to densify around the more. So these are 3 projects, as I mentioned, the one is Aspire, which is on the left, which we'll be commencing very shortly. The one in the foreground there is Gateway East, which is currently under construction. So that's our new collaboration hub spec. And in a new development we're really, really excited about is our new hotel and conference in the bottom right. So this is Gateway East. Our collaboration hub spec, roughly 12,500 square, also has a restaurant component. A few years ago, we pushed the button on our first collaboration hub spec in a number of years, obviously, coming off COVID, that it went exceptionally well at Ingress 3, fully let on completion. So on the back of that, we've got approval to commence construction on this. Why did we pick the site? Well, two predominant reasons. The one is that site was carrying ZAR 100 million basement. As I mentioned earlier, it's idle capital, you want to convert that into income reducing capital. And also, obviously, it's the entrance of the city. So visually, it didn't look great. So we have been able to push the envelope quite hard on this development from a design point of view. Very, very efficient, 90% efficiency. Designed to take one tenant or multi-tenants, which I think is very important. Floor plates of roughly 1,500 squares at a time. And as we stand today, we're 30% complete. We're going to be completing at the back end of this year. We have signed leases of 22% of the building, and we have another letters of intent signing up to 12.7%. So currently, that building is 35% spoken for, which I think is a testament to the design as well as the leasing team. So this is Aspire. So as I mentioned, this is our second res scheme, a JV with Tricolt. We're going to be a 25% shareholder here attached to the mall. It's going to be an iconic development. It's 20 stories high. So the only other building that's taller than this is PwC. As I mentioned, we launched in May of last year 217 units, 145 units sold, of which 111 are bankable. I think what's very impressive is our conversion from sales to bankable is really, really good. So on the back of this, we went to IC, we got approval to commence construction. We'll be going out to tender shortly, probably within the next month, with construction to follow very soon. I think what this development also does is it also helped to activate Karkloof road, which is the road surrounding the Mall of Africa. So this development, we spent a lot of time over the last 3 or 4 months. This is going to be our new Waterfall City hotel and conference. We were hoping to announce who the JV partner is and the client. Unfortunately, results came 2 weeks too early. But we are finalizing transaction agreements there. But where we are at the moment is we're a 75% shareholder here. We've got a development partner that's coming in on the other 25%. It's important to note, this is not done on a management agreement. This is done on a lease with an operator who's really running a couple of hotels as well as a conference center. So we believe in operator and they're also financially very strong. We're excited about this. We think it's going to bring new energy to the city. And there's very few places you can build a conference center because obviously, how stringent the parking is. So this is on the back of the Mall of Africa design has allowed us to do this because we are piggybacking off the parking built in the Mall of Africa. There's going to be 180 rooms at this hotel as well. So this is Waterfall City Junction. So roughly 1.7 million squares in land, 1.2 million in usable land, giving us roughly 600,000 squares of bulk. This is a JV with Sanlam properties. As I mentioned earlier, we are unlocking the first 4 phases of infrastructure currently. That's the land between Allandale and the K60, and that will be coming online at the back end of this year. Phase 1 is already proclaimed and serviced. So currently, we are just landscaping, putting in the guard houses and the internal roads. We're currently doing civils on the first spec build, and then we are also placing our new tenant driven development there in Phase 1. Phase 1 is the site right in the corner there to the northwest of the precinct. So this is our tenant-driven led development. This has been a long journey. The reason for that is the amount of capital this client is putting into this building. The amount of capital they're putting in, you could build a warehouse for. So we have been spending an immense amount of time working through their layouts and designs across the last 6 to 9 months. I think we've come to a point where we're there. Why are we helping them? Well, we are going to be the development manager for the internals as well. So this development is essentially owned 50% by the client. Obviously, the reason behind that is because of the amount of money they're investing in there. Sanlam will be the other 25% shareholder, and then we will be the other 25% shareholder. It's a 16,000 squares development and will be a fully refrigerated facility. This is our new spec warehouse development, roughly ZAR 260 million in CapEx. Very generic design, generic for a reason, so we can attract a number of different tenant users. We are busy finalizing civils. We have our tenders come back. There are a few savings that have come through, and we should be appointing and commencing structure over the next 6 weeks. So in our end of year results last year, I mentioned we're in a phase at the moment where I don't think we've done this amount of infrastructure since we originally launched Waterfall City over 10 years ago. There is a lot going on in Lourens' team. These are a couple of the big projects that the guys are dealing with. So obviously, as I mentioned, the infrastructure going in on Waterfall City Junction. It's been a long journey, but province has awarded the tenders on the K60, and that construction has commenced. And then something that we're very excited about is on the conditional sale of a piece of land back to Balwin, which is the purple piece of land that you'll see on the image. We are putting in the infrastructure to unlock that site and create the fourth entrance to the city. And then this is a case study. So as Jackie mentioned earlier, Attacq focuses on precincts. Why do we do that? Well, we want to have a holistic view of the precinct, we want to be the dominant player, and we want to be able to control where the precinct is going. So with Waterfall, obviously, it's leasehold land. So we work very, very closely with the land owner. In the last 2 years, we spent an immense amount of time around the urban design. Why are we doing this? Well, the urban design has to change, obviously, as needs of our clients change. And one of the challenges we were facing is that the original 2 transport hubs that we develop within the Mall of Africa essentially are not fit for use anymore. Why do I say that? They're just too small for the amount of consumers now coming into the city. So Lourens' team looked at solutions for this. And what we've done is we've been able to piggyback off the infrastructure within the Mall of Africa. Lourens since has talked to and managed to create a new access of Simlak Road, which is the road south of the Mall of Africa, to access the parking under the park within the mall and create a new formalized facility, which we launched last week. So I think that's been a huge success, but then that creates an opportunity for us in the old transport hub. So on the western side, we have been chatting with the landowner about what are the big challenges and how do we take the city forward. And the big focus has been trying to create more energy to the city, create that walkable city, and create on street retail. But the challenge we had is we didn't have street parking. But what the old parking taxi facility provides is that off-street parking. So we're going to renovate the current facility to create off-street parking, and then redevelop the corner of the mall to create a 1,300 square restaurant, which I'm proud to say the Mall of Africa signed the pantry yesterday. So that corner and the Aspire across the road will create a new hub and will really bring some new energy. So we're putting about ZAR 50 million into that redev of the pantry, and then the pantry is also putting a substantial amount of money. So I think it's a real game-changer, and I think it's a real focus, and kudos to our urban design that's really working. And with that, I'll hand over to Pete.

Thanks, David. I'll kick off with highlights. I believe some of these have been touched on earlier in the presentation by my colleagues. So distributable income per share increased by 9.6% to ZAR 0.603. With some rounding applied to an 80% payout ratio, we are paying out 0.48 a share, which is 9.1% up on the prior comparable period. NAV growth edged up to ZAR 19.32 or 2%. Gearing was largely stable, reducing slightly to 25.1% from 25.3% as at June. Commendably, our ICR is now up over 3x for the first time at 3.15x, and that's up from 2.91x in the prior comparable period. Net finance costs have decreased 2.9%. That's largely a function of the base rates that have declined over the period. And importantly, we've maintained our GCR credit rating of A+, which is an important metric for us, given our ambitions to access the DMTN market. I think if we can pause on the chart below, the improved debt metrics chart that shows the trend of our debt metrics, our key debt metrics over the period June '21, which is obviously quite a tough time, I think, for everyone in this country, to present day at December '25, marginal debt is compressed by, I think, 58 basis points. Our LTVs used to be well over 40, now down to 25.1. And as mentioned before, ICRs shot up from just over 2% to 3.15%. As is customary, we give our distributable income per focus area. I'm going to focus more on the cents per share. So I think that's what it all comes down to every period is what cents roll out to our shareholders. Waterfall City, 17.5% up on the prior period. As alluded to earlier by Jackie, that's NII increases, Mike mentioned some vacancy take-up. So it's also driven that. And obviously, the net finance charges compared to the prior period. We've had quite a few movements on the debt side. Rest of Africa was -- Rest of South Africa was slightly down. Reason for that is also, as Jackie mentioned, we've got an ERP system change, which has resulted in some one-off charges coming through the current period. The prior period also had some one-off income. So there's a bit of a base effect, and then other investments is largely our Lango investment, still slightly negative. Lango is not paying a dividend yet. And the prior period also had a lot of legal costs, which related to our disposal of that asset. So one-off costs, not to be repeated. That gets us to a distributable income per share total of 60.3% or the 9.6% growth. And then, as Dave mentioned earlier, we have completed Ellipse, the final tower in Ellipse, and 194 units have transferred to date, 174 of those units transferred before December. And the profit we see there is our share of the profit. We had a 20% share in that JV with Tricolt. So 0.022 coming out of that. We're keeping that though as is customary as well. As you've seen, we've got quite a lot on the go, and we've also still got quite a bit to do. So just given the lumpy nature of that, and it's fairly ad hoc, we keep that one and rather we invest in our portfolio. If we look at the movements on DI, so importantly, this compares the DI for the period Dec '24 to December '25. Just to give you the main snapshot of what's changed. We've really touched on a lot of them. NOI obviously increased due to escalations, vacancy take-ups. The newly completed development would be Vantage coming online during the period. So that's that. There will be a bit of a base effect on that going forward as well because it wasn't in for the full 6 months. We've touched on lower net finance costs. I think developing Waterfall City, reason why that's different to this year to the prior period. In the prior period, we didn't hold it. We used to hold that via a JV co 115 shareholding together with Sanlam. We now hold that. We own our 50% of that land directly. So we see those costs coming on directly. Then there's a minority adjustment, which relates to the GPFs 30% share in AWIC, getting us to a ZAR 421 million, ZAR 422 million distributable income for the period. Of that, we're paying out ZAR 336 million or 79.6% payout ratio, and we're keeping ZAR 86 million for the piggybank. Our balance sheet per focus area. Obviously, we have seen asset values increase. We've seen some fair value upward adjustments. So that's what's driving the balance sheet side largely. Other investments is, again, largely our Lango investment. That's come down again. There was a decline in the Lango underlying U.S. dollar NAV per share. On top of that, we also saw the rand strengthen over the period to December. So there's been a strength in the rand, and that's also negatively impact our rand value. Total equity up 1.5%. If we look at what's attributable to tax shareholders, that's up 2%, but no changes in the underlying issued shares is also a 2% NAV growth for the period. This rolls forward our investment properties from June to December. Additions of CapEx there of just under ZAR 360 million. That's a combination of operational CapEx or reinvestment in our outstanding portfolio. Obviously, there's developments under construction in there. And then we've also got infrastructure spend. So we put about ZAR 100 million back into our existing portfolio during the period. We put ZAR 167 odd million into our developments under construction that would have been items like Gateway East and finishing of Ellipse. And then from an infrastructure perspective, there's about ZAR 50 million and there are some other bits and pieces. The fair value adjustments, if we sum all of those, it's ZAR 300 million, and that's largely just a normal asset increase in asset valuations. Okay. Interest-bearing borrowings. Interest-bearing debt, largely stable, up by ZAR 90 million from June. Our weighted average loan term has come down by 6 months as expected because we haven't done anything in terms of putting new facilities in place or new funding. Hedging, we remain fairly highly hedged at 84.7%. That's come down a little bit. Our weighted average term of hedge is stable, and that's largely because we would have had some hedges rolling off and some, obviously, just the expiry of time, but we also added some new hedges during the period where we needed to. Our weighted average cost of debt down from 9.2% to 8.9%. That's obviously largely base rate changes just because of the interest rate cycle we're in. We also did do some hedges would have rolled off. So there has been some changes on that due to our hedging profile changing. Gearing slightly improved to 25.1% on the back of the marginal increase in debt, but largely an increase in underlying asset values and our ICR we've touched on already. Then at the bottom of the slide, we show our group level bank covenants. It just shows we've got a healthy level of headroom between our actuals where they're printing and where our covenants like. Our available liquidity totals ZAR 1.5 billion at December, and that's ZAR 900 million in cash, and the balance is in the form of facilities. Continue on our interest-bearing debt metrics, debt and hedge maturity roll-offs are provided there. Thankfully for our team here, there's not a lot happening in the next 12 months for a change. It's been a busy few years before this. So the ZAR 50 million there is largely interest accruals. You've got some hedges rolling off. And as they roll off, we should pick up some upside depending on where the curve is at the time. And then there's a bit more work to be done in the 24-month bucket, got more debt maturing. We've got quite a lot of hedges coming off, and we'll add to those to maintain our 70% minimum hedge ratio as and when required. On the right-hand side, our funding mix has been stable period-on period. So our DMTN program, then we've got 3 relationship banks and 2 financial institutions. From a focus perspective, obviously, it remains as ever trying to reduce our weighted average cost of debt. Some of that will come hopefully in the form of what we can do on hedges as they roll off. And then obviously, we are considering a further DMTN issuance. As you've seen from a development pipeline perspective, we've got a lot on the go, and we will need further capital to implement on that. I'll hand over to Jackie to take us home.

Thank you so much to my colleagues. Guidance and prospects. So half year. We've got 6 months to go. We have decided to revise our guidance and our distributable income per share. We've previously communicated, it was between 7% to 10%, but we have provided our guidance as for the Board to 11% to 14%, and we're still basing that off or so in an 80% payout ratio. Thank you so much for joining us today. Thank you for the continued support from our stakeholders. Thank you to all the staff at Attacq for making this an incredible place to work at. I will open up the floor for Q&A now.

Pete, do we have some questions online?

We have few questions online. Trinity from Anchor. Congrats. Could you provide some color on the net rental per square achieved on new logistics leases during this period and subsequently? And where are you currently seeing market rentals for the subsector? I think, Dave, if you can take that one.

Yes. So I think where we're seeing rentals currently is around the ZAR 90 net level. I know we renewed 2 leases very recently, which were in the low 90s, Mike, I think...

Yes, ZAR 90 and ZAR 95.

So I think that is the level. If you work it back on a new development cost basis, that's the level you need to be for us to make the returns work. Obviously, what could drive rentals potentially lower is the amount of spec that could get brought on the market by our competitors. But I think we're fairly confident that the ZAR 90 to ZAR 92 level is sustainable.

Thanks, Dave. Another question from Trinity. Mike, trading density increased by 4.2%. Turnover growth came in at 2.9%. Could you unpack the drivers behind the divergence in these growth rates? And then while in that, can you also break down the turnover growth between Mall of Africa and Rest of South Africa retail?

Yes. So I'm going to refer to Slide 50 and 51 further down in the presentation, so...

Sorry, can we put that on the slide, 51. Sorry.

No, no, alright. I think the first thing I just picked up was that our turnover numbers were recorded in billions. So there could be also a rounding error in calculating that difference. So a quick calculation, that would be 40 bps to 60 bps difference just because we've grossed up the numbers to billions. But I'm happy, Trinity, to get back to you on more specific numbers. More importantly, some calculation reason for the divergence is, when we take turnover, we take the gross turnover generated in the mall. If you go to Mall of Africa today, you will notice magnificent holding up at Nike and New Balance, those flagship stores slated to open later this month. But they don't generate turnover today because they're closed. So from a gross turnover perspective, you lose the turnover. What we do in a density calculation, if the premises generates 0 turnover, we remove the GLA from the base. So it doesn't create a drag artificially on the trading agency. So what you will have is the removal of that GLA in the -- my English is pleading, is it the numerator? I don't see nodding heads. The denominator. So that would mean that density calculation wouldn't have the same detrimental effect in the gross turnover of our stores being temporarily refurb, et cetera, over the 3 months period. I hope that makes sense. Maybe just a general discussion. Part of the question was also just unpacking some of the performance between Mall of Africa and Waterfall from the Rest of South Africa. I can't say that, specifically to our precincts outside of Waterfall City. For Garden Route Mall, there was a new center that opened in November of 2024. That has impacted our pick and pay, not negatively, but I mean you wouldn't see the growth that we saw at Mall of Africa from the pick and pay due to there being another competitor just down the road in the form of a spar. So we saw that happening in Garden Route Mall. In Mall of Africa, really our health and beauty category outperformed the brands like Silky, which is a local South African brand, but also Skins. If I do recall from the detail, I think skins grew 40% year-on-year. I think that's a significant amount of growth for an existing tenant that already had a market in Mall of Africa. So certainly, here in Waterfall City, we saw pockets of those specialized mono brands performing really well. And then more generally outside of South Africa, really led by whatever growth were generated by nationals, that's sort of where the precinct went.

Thanks, Mike. Trinity again, asking, can you remind us of your current weighted average debt margin and provide some color on the sensitivity of your debt portfolio? Two movements in 3 months JIBAR, given the current level of hedging. Dave, will you take that?

Current weighted average debt margin is 148 basis points. We are highly hedged at the moment, just at 84.7. So I think if we -- just to give you an idea of how sensitive we are to 3-month JIBAR movements, if we had to run fair to float effective December just to keep all things equal, on the next 12 months, we'll probably only pick up another just under ZAR 1 million in DI. And applying that same scenario to the following year with obviously a lot more hedge roll off, you probably would pick up another 17.5. Although we can't -- we don't have to add new hedges in the next 12 months, but we would have to add in the next 24 months. Obviously, that picture changes literally by the second, given the macroeconomic cycle. So we hope to pick up some upside from floating a bit more, but these things are on cycles and a lot of it is out of our hands. So ultimately, we will maintain at least a 70% hedge ratio because that's our mandate. Next question from Jonathan from OysterCatcher. What is the main driver of the increased guidance? Jackie, do you want to take that?

I think the main guidance is we've also been very conservative in our finance cost. When we do guidance, we never factor in any interest rate cuts. So that's definitely been some really good tailwinds. We've also, towards the end of last year, after the guidance call, we went out, we've also restructured and refunded some of the portfolio. Also some occupancy take-up, some really great occupancy takeup on growth in rentals, Mall of Africa renewal cycle really going well. We've been a bit more conservative in our approach when you do the budgets. So really, the team outperforming, peer property, asset property management, outperformance and good occupancy, good rentals achieved throughout the year.

Okay. Thanks, Jackie. We've got another question from Seymour. Since you started building energy and water resilience, what are your quantified targets over the next 12 months? And how will that be reflected in tenant retention and risk metrics?

Quantified targets on PV is quite difficult. We go and say, where is it practically feasible to apply PV in our portfolio. Coupled with that is the power purchase agreement that plant that's being built off-site, I think when that comes online and on stream. And then you've only got so much energy that you consume in our portfolio, then you need to -- as Lourens always said to "Jackie, you can't go and oversubscribe because you'll start losing money if you oversubscribe to too much green energy." So we would see to how that balancing as we grow the portfolio, but never oversubscribe for too much energy that will cost our shareholders' money. On water, we've always had a backup of 48 hours. We've increased that backup water to 5-day backup in our entire portfolio. And that is the growth that you see the mega liters that we're installing at this stage. So it's principal-based, the days per water. We are looking at, can we stretch it to 10-day water backup with reducing consumption in the building, restricting flow, being really clever in how we consume water as a user in our building and educating our clients. And then PB has been a great investment, but just practically, we cannot go over the total quantum of electrical use in our portfolio.

Don't know if you want to comment on tenant retention and risk?

Yes. I think it's incredibly important. David, our Head of Business Development, this last week said to me, they had interview with some of the clients and where they were more focused on what is the ESG principles that we apply in our building. So I believe to achieve great rentals, attract top-tier clients, it's very important for us to maintain these metrics. And in South Africa, it's a different metric. It's business continuation more than just ESG. And luckily, that falls into the ESG part as well. So we believe in listening to our clients, understanding our clients and doing what's right for our buildings and environment and community. We will be attracting top tier clients, and then it will boast our rentals as well. And we will be the place to bring a business to.

Okay. We have no more questions online. So now's the time to escape, if you want.

Any questions from the floor? No questions. Then once again, thank you so much for attending today, for everyone online attending, we're available, reach out to us if there's any further questions, and enjoy the rest of your week. Thank you very much.