Attacq Limited (ATT) Earnings Call Transcript & Summary

Good morning, everyone. I hear there's some traffic on the highway. So some people are a little bit stuck. So to the presenters should people come in, let's just continue presenting. Good morning on this beautiful morning. Last night, we had beautiful rain in Johannesburg, and we come off the back of the greatest rivalry. So the Bokke won in Baltimore or they now call it, I think, the 10th or 11th province of South Africa. And I definitely learned something about tailgate braaiing when looking at the pre-match. So what a great week in South Africa last night, the beautiful rain. This morning, the beautiful sunshine. I hear that weather is not that great in Cape Town for everyone joining us from Cape Town. -- sorry. Exactly. And good morning to everyone here joining us in person. To my team that's helping me present these numbers, Pete, once again, congratulations, our newly appointed CFO. And I must say what a smooth transition it's been. We've got signed-off financials. And to the finance team, thank you so much for working with speed and making sure that we've got a great set of results to present today. Michael Clampett, our Asset Management Executive, will take us through the operational numbers. And Dave's got quite a lot of show and tell today. I said he's got a 4-year-old son. He knows the concept of show and tell. So Dave will show and tell his work for us today. So he's got quite a lot of great stuff that he is going to show for us today. So that's our presentation format for the day. So as I stand here off the back of an incredible year at Attacq. I'm incredibly proud of presenting these phenomenal numbers that the team of Attacq has worked so hard in getting to these wonderful numbers. Our normalized distribution income per share is 15.5% up. Our dividend per share, that we'll declare, is 17.2%. And why the difference, it includes a once-off municipal rate credit that we have made the decision to distribute out to our shareholders. The fundamentals for me in our numbers are high occupancy, contractual rental growth. You'll notice and Michael will talk about rental reversions, new completed developments that's impacting the income and then stronger recoveries and lower finance costs. But if I go deeper in the numbers, the numbers are really representing, and I just said to someone now, it's real asset management work. The teams have been working very hard in leasing space. We've been working very hard in making sure that we sweat the cost very, very hard. Our team has accumulated practical ways in creating value and saving money for our shareholders. And I think that is testament of what is in the results. Our balance sheet remains very, very healthy. Some people will say too healthy at 25% gearing. An interest cover ratio of 3.21x, I always want to say percent. And in my life at Attacq, in 9 years, I've never thought I would say we're over 3% (sic) [ 3x ]. And it's just incredible to see the growth and the positive growth that we've seen in our balance sheet. So definitely, our balance sheet can weather any storm. Our roots are very deep, and we are resilient and we can take opportunities when they present itself. Waterfall City is central to our strategy, and we're really very proud of the momentum we are gaining. This year, we completed just over 8,000 square meters of development, Vantage data center Phase 2 was completed. And then 8 years of development at Ellipse, the last tower was completed. The team delivered 672 units. Over COVID, November 2018, we launched that development. And boy-oh-boy was that a ride, through COVID, ups and down, interest rates, and now we sit with an over 95% sold our development. And what is so great, it's our first residential development, high-rise in Waterfall. The catalytic effect in the city is just phenomenal. It's retail. People stay here, they live here. They utilize our facilities. They work here. And that's just a catalyst building the city. Our development pipeline, and this is where David's show and tell will -- you'll see a lot of things that's on the go, but there's great momentum. In total, we've got 85,000 square meters of development either in construction or in planning that is approved. That represents ZAR 2.2 billion of investment in the city. Coupled with that is our infrastructure investment in total of 1.2 billion square meters (sic) [ ZAR 1.2 billion ]. Now for the shareholders, we're not all putting that ZAR 1.2 billion. That's the total investment in Waterfall City. And again, David will show today all of the infrastructure investment, which is vital not just for our developments, but also for our clients and for the resilience that we offer in our precinct. And then one particular score that I'm very, very proud of is our employee satisfaction rating of 90%. Now that 90% is driven off 99% participation rate. So thank you, everyone at Attacq that has completed the scoring. But what does it tell me is that we've got people in Attacq that is committed. We've got people at Attacq that understands the purpose, understands the strategy. And that's why we've got these incredible results today is because of the satisfaction rating of people understanding our purpose. If we look at our business alignment, and you'll see that we are really committed to our strategy. It's a South African focused portfolio. We're very proud South African, and we're very focused on delivering an incredible South African portfolio. Equally so, Waterfall City is our growth factor. But look at Waterfall as the Rest of South Africa portfolio. Same size, same amount of distribution income it derives. So our focus is equally Waterfall and equally our Rest of South Africa portfolio. In the past, I spoke about some incredible upgrades we are looking at. I can say that Glenfair shopping center, our team is working on getting some town planning regulatory approvals to upgrade the Glenfair shopping center. Similarly, at Eikestad Mall, the team is working on some really exciting upgrades that will commence over the next few months in that portfolio. So very much an equal portfolio and equal focus for us in our business. Then if I stand back and I look at our strategy, and our strategy is very clear. We're not just building buildings. We're not just collecting rent. We're building places, precinct where people can choose to live, they can connect, they can shop, they can spend their time. And that's really important for us is for people spending time. And Michael will tell a lot -- talk a lot today about what are we doing to bring people into our mall. It's not just let's just wait for Black Friday and everyone comes and shops at our mall. We have to be deliberate in bringing people to our shopping centers to our precincts to spend time in our assets. Also part of our strategy is we've got a big focus on our systems. And a great story I would like to tell you. If you guys look at our results, our municipal recovery ratio is over 97.8%. And that, for me, is remarkable. A few years ago, we decided to implement, invest in a lot of digital meters, systems, processes, people, people in the right roles. And I believe our strategy is very sound, and it's coming together and it's showing in the numbers of a 97.8% recovery ratio. That is just phenomenal. So as of that, our competitive edge remains very solid. We've got Waterfall City, the growth engine of our portfolio, the placemaking where people want to live in Johannesburg. Our Rest of South Africa portfolio growth, diversity, geographical diversity brings in our portfolio. Balance sheet, optimal and it's opportunistic for us to take the opportunities that come our way. Our energy and our infrastructure investment pays off. And that's also a large part that Peter will talk about the numbers today, which really drive our growth in some of our numbers. And then most of all, our people in Attacq. Thank you for driving the numbers. Thank you for making our strategy work, and thank you for the hard work over the year. Mike, can I invite you to come and talk about the operational results for the year.

Thank you, Jackie. Start off with a beautiful picture there in George, Garden Route Mall, the new taxi facility we opened up there with the Outeniqua Mountains in the background. What I'm going to do today is something slightly different. I'm going to start with 5 to 6 stories, stories behind the numbers. What is it that we do that make up these results that we present. Now firstly, we are a precinct-focused business, and we believe that our precincts are places that put people first. The first example is the opening of the Izinga Transport Hub that is Mall of Africa. There was a consolidation of the number of taxi-holding facilities around Mall of Africa as well as the online delivery services. And I was saying to Exco a while ago, surely, there's no better testament to a business case than 149,000 vehicles using that facility only in the month of July. So we've seen a lot of success with the consolidation, providing those users of this facility better ablutions, free WiFi, some place on the roof when the weather isn't that great. In the Allandale building, another great example, and this supports our major theme and story this year of the occupancy number that's increased. So we've had a net absorption of over 23,000 square meters of space in our portfolio. And we need to make these buildings attractive for people to be in. A big activity at Allandale was not only the upgrading of the internal facilities, but also the hosting of curated events for our clients. The most fantastic thing is to arrive at these events and see our property management teams also play the role of intermediaries, introducing CFOs to each other, introducing those clients that they know from the different tenants to each other. And in that way, by introducing people, we make sure they use the facilities that we actually roll out because they're comfortable to greet each other when they get to the office in the morning. A major story over the last 3 years has been our planning around water resilience, not only at Waterfall City, but also around the portfolio in the country. Waterfall City, just being a great example when we had the water outages in January earlier this year in Johannesburg, we were able to keep water in the taps due to all the planning and work we did in the prior 3 years. And once again, one of our clients here at City Lodge just reaching out with their gratitude that their business wasn't affected by the water outages because they have hotels here in Waterfall City. From a retail perspective, what we see is a continued growth in the consumers' propensity to spend online. These services are easy. I think the retailers are also doing their bit to invest in their services. And what we have to do is we have to keep investing in our own retail experience hubs to make sure that they give people a value proposition. One of that was the SOOK that we launched 3 years ago. This was to give opportunities for young up and coming and online-only retailers to also have a go at physical bricks-and-mortar retail on the space to engage the customers that they've built online. Happy to say that to date, we've had over 75 up-and-coming entrepreneurs test their concepts and over the 3-year period had an occupancy rate of 95%. Once [Audio Gap] consumers to come and visit, if they support a specific brand and we're hosting them at Mall of Africa for a month or a week, it generates new footfall for us. Also the Halaal Goods market, it's an annual curated event that we have here at Waterfall City. Really over a weekend, those visitors also have a direct impact on Mall of Africa. As measured, you can see that those visitors visit about 4.5 stores in Mall of Africa either before or after they go to this event, and they stick around for about 108 minutes when they do visit this event. So this is a thing we quite often -- in our lives at Mall of Africa, Black Friday isn't the biggest weekend. It's usually the Halaal Goods market that sees the most shoppers over the weekend at Mall of Africa. And then more recently, we opened 2 very famous football brands, gave them their first retail stores at Mall of Africa. Both Liverpool and Orlando Pirates, and there's a bit more to come with that story. But once again, what we see is we're tapping into the same community, these communities that already exist. I was there for the opening night at Orlando Pirates. I was also sort of hanging around the queue on the first day chatting to some of the shoppers. For some of them, it's the first time they've ever visited Mall of Africa, but they came here to buy a new Jersey at the start of the season. And I think that gives us more reason to create a compelling case for people to come to our retail centers. These are some examples at Mall of Africa, but we apply the same principle and the same methodology when it comes to all our sites across South Africa. What is the impact of some of these stories and some of these management actions? You'll see that our NOI grew for the year. The contribution from logistics hubs grew by 13.2%. That was to the take-up of 2 of our logistics warehouses and also the delivery of the Vantage 12 data center, meant that the contribution from other -- the other category to our NOI grew. Like-for-like valuations grew at 3.5%. Standout performer there was retail at 4.2%. And this is on the back of the completion of the 10-year renewal cycle at Mall of Africa. So we had quite a successful renewal period there at Mall of Africa and those new rentals and growth in rentals supported the growth in the valuations. The major story for me, our occupancy that grew from 91.6% in June 2025 to 94.9% in June '26. We had growth in both collaboration hubs and logistics hubs and then, of course, also the delivery of some new buildings. And this really has also supported the growth in the NOI in Ellipse. if we look at the occupancy bridge at the top left, as I spoke earlier, we had a net absorption of occupancy. We had 135,000 square meters of leases expire. Of that, we had a renewal success rate of 92.9% in the portfolio. Very importantly, you'll see there that from a reversion perspective, the reversions were positive at 3.4%, retail contributing 4.8% (sic) [ 4.6% ]. But also, I do want to highlight collaboration hubs, only negative 1.1%. And certainly, that's a marked improvement from some of the numbers we've been seeing, some of the leases that rolled off pre-COVID or maybe 10-year leases, we saw some double-digit negative numbers and that single digit -- also very, very important is that 59% of the collab hub leases have expired, renew on positive or growing terms. So certainly very, very positive signals there for us. Our retail experience hub portfolio, the trading density grew at 3.7%. During the year, both Mall of Africa and Garden Route Mall had some competitors open up in the direct catchment area. We're fairly comfortable that we've sort of addressed that and we've weathered the storm. It did have a short-term impact on some of our trading densities, but it's just something we need to work through. Some standout performances from Eikestad Mall, MooiRivier Mall and Lynnwood Bridge during the year. Also important to note that the turnover rent that we collect from some of our tenants, so this is where they have to make an additional payment due to the good turnover growth they've had, increased by 15.6%. So once again, another positive signal from -- in our portfolio. From an expense perspective, I just want to quote, it's not on the slide, but from a like-for-like perspective, our expense growth was at 5% and our rental growth was at 6%. So actually some positive jaws there. Why do some of these numbers, de facto, exceeding the 5%. It's because we always keep adding new buildings. And so from the previous base, you should have this additional growth. If I can talk through some of them, the security expense grew because we had the Magwa View building that went from a single-tenanted building to a multi-let building. So that means that as a landlord, we pick up some of the cost that used to sit with the tenant prior. The Ingress building, David delivered that last year. That included a new security control gate, and that also contributed to our security costs going up. Repairs and maintenance grew at 12%. That's due to our life cycle management. As our buildings age, we continue to make sure that we invest in them, keep them fit for purpose and avoid any major CapEx repairs by making sure that we look after the assets that we do have currently. And then insurance, maybe just touching on that. We had growth of 18%, mostly on the back of some salary insurance in the prior year, but a very positive year. News for the future is that, that expense only -- well, it actually declined by 1% for the 2027 financial period. So we're quite happy with the way we contain some of these costs in our portfolio. Jackie mentioned earlier, something that's fantastic and all the management that happens on the back end, all the systems we built through Sue was our municipal recovery ratio increasing to 97.8%. We also had a very positive impact on our net cost-to-income ratio, declining from 22.3% to 21.5%. You'll see we added a number of new solar plants to our portfolio. And then also in the longer term, we're planning to increase the proportion of energy that we generate from these plants. So currently sitting at 13.7%, looking to grow that pro rata portion to about 25% by 2030. So those are the major highlights from the existing portfolio for the year. And now it's time for Dave to show and tell.

I'm going to be a while. So if anybody needs a hydration break, now is the chance. Good morning, everybody. So I'm going to be touching on the development and the infrastructure. So I'm going to unpack a lot of what's on this slide in slides coming up, but just to give an overview of the year. So from a development point of view, as Jackie mentioned, we've got about ZAR 2.2 billion going into Waterfall currently, which totals roughly about 85,000 squares. A tax effective share of that is about ZAR 1.3 billion and 46,000 squares of GLA. I think what stands out on those numbers, if you look at the graph, which is titled effective development activity, is the variety of developments that we're currently doing. So there's hotels, there's residential, there's warehousing, there's data centers, there's conference centers. So I think it really talks to Waterfall. It talks to how we are able to attract a number of different clients here, but it also talks to the fact that we are obviously able to help them. If we look at some of the other projects that we were involved in, we've completed Vantage data centers 12.1, which is essentially the second data center, roughly 11,000 squares, not chunky in GLA, but chunky in cost and then obviously related income. Ellipse Waterfall, been a long journey, November 2018, launching that, completing that final tower now. So that was our first venture into the residential space. As Jackie mentioned, we commenced construction on Gateway East, which is our largest spec collaboration hub we've done in a long time. And then we've launched our first spec warehouse at Waterfall City Junction, totaling roughly 22,000 squares. Post year-end, we've commenced construction with Aspire, which is our second residential scheme, also a JV with Tricolt that is attached to the Mall of Africa. And then we've also broken ground on the Hotel and Conference Center, which is a JV with the Rabie Property Group. From an infrastructure point of view, so we're essentially in that period now where we haven't done this amount of infrastructure since probably launching Waterfall a number of years ago. Currently, there's about ZAR 1.2 billion going into Waterfall from an infrastructure point of view. A tax effective share of that is ZAR 365 million. The major projects are essentially outlined there. So we are unlocking the first 4 phases of Waterfall City Junction, which is the JV with Sanlam properties. The government or province are currently putting in the K60, which is a dual carriageway road. We had a number of false starts there, but we eventually got going there. We're not involved. We've got a watching brief, but that is a province project. Waterfall City Junction Phase 1 is now proclaimed, and we're also unlocking the fourth entrance to Waterfall City, and we've also launched the Izinga Transport Hub. So -- if we look at from a graphical point of view on the infrastructure, so these are the 3 major projects. As you'll see at the top left is the fourth entrance to Waterfall that we're opening up. Essentially, that is extending Simlak Road. We are doing that infrastructure installation on the back of a conditional sale to Balwin Properties. So the purple part there was originally outlined for collaboration hub, roughly about 49,000 squares. Lourens and his team have converted that to just over 1,000 residential opportunities, and we've done the conditional sale back to Balwin on that. The K60 is the West to East arterial, which essentially will link Sunninghill with Allandale. It's a nice arterial around Waterfall, which will obviously, in the future, relieve any pressure that we may see as we densify the city. And obviously, extending Simlak, it obviously will intersect with the K60. And then servicing a Waterfall City Junction. So that is the red. We are currently doing the first 4 phases. So the first 4 phases is essentially the section north of the K60 and we should be finishing that within the next 6 to 9 months. So I'm going to show a quick video just showing the progress of these projects. So that is essentially Simlak Road and the extension that I mentioned. Top right is PwC and then to the right is that is where the new Hotel and Conference is going to be. Then this is essentially the K60. So that's the West and Eastern arterial over the N1 highway. It will then connect to Allandale, obviously connecting also with Waterfall City Junction. As we move east here, so that is the top 4 phases. You'll see all the infrastructure currently going in for Waterfall City Junction. Left is Phase 1, then you'll see 2, 3 and 4. And then we've modeled out essentially what the layout of that precinct are essentially going to look like. Okay. So just going into some of the completed developments. So this is Ellipse. So it was a big, big project. You can see just under 46,000 squares of gross sellable area, 672 units, our first venture into the residential space. It is a very big project considering you have to phase it over 3 phases. You've got to make sure that your product is right because obviously, your product needs to stay consistent. So first phase is 270 units, of which we've sold 266, Phase 2 was 181 and then the final phase we've just finished is 220 units. So in the whole scheme, we've got about 10 units left. So I think it's been a great success and obviously, has been a reason why we've triggered our new residential scheme, which I'll get to a little later. So this is Vantage. So just to remind everybody, this is on the corner of Allandale and the N1 at a land parcel that is Land Parcel 9 or our Logistics North precinct parcel. The Cummins warehouse and the Cotton On warehouse and head office is in that same precinct. So this is about 120,000 squares of land that we've done a JV with Vantage on all the land, the 50-50, where we're involved in the dark shell and the land. We've done the first one, which is the one in the foreground, which is 11.1 and 11.2. Essentially, what that means is your first 2 data halls are 11.1 and your second 2 data halls are 11.2. And then the one upfront is 12.1, which is half of Phase 2. So this is a CapEx-linked transaction that we have done with Vantage on the back of a very, very long lease, and we obviously finished it this year. This precinct is designed for about 80 megawatts that can scale to about 150 megawatts. And obviously, where the tech is going and where data centers are going from an AI perspective, it's important that you have that capacity. Okay. So this is an image of the mall where we've essentially modeled out 3 developments that we're currently in progress on. So Waterfall essentially started from the West and has gradually grown eastern -- eastwards. Obviously, started with Century on the Equestrian Estate and other residential states. The Mall of Africa came quite soon after. And then from an Attacq point of view, we obviously were dealing with corporate campus, Maxwell Office Park and then essentially have been moving closer to the mall. Where we are now is essentially, we are looking at densifying around the mall for a number of reasons. I think the first is if you look at the mall, there are 6 vacant land pockets that are attached to the Mall of Africa. which essentially is serviced and has got infrastructure attached to it. So it has got a holding cost. So it makes sense for us to obviously develop those sites out. Secondly, it obviously gives us an economic competitive advantage on some of our projects, which I'll outline a little later. And we're obviously wanting to densify the city and obviously densify around the mall. So on the left is the location of Aspire. Next to it will be where the Pantry is. So that will be the old transport hub that we have moved when we developed the Izinga Transport Hub. Why did we choose that site for Aspire? Well, essentially, that road right next to it is a private road. So that allows us to create a porte-cochere because we own the road. And then also the way the mall is designed is that the baseload parking to the right of the Aspire there, there's an atrium. So we are going to create a mezzanine for parking there, which then obviously will be exclusive use back to the residents. Then at the back is Gateway. So that's the actual building. We're about to finish that now in October. We picked that site because essentially, that site had ZAR 100 million worth of CapEx spend when we developed the mall, obviously, it makes sense to obviously convert that to yielding CapEx. And then the big one that we're obviously dealing with is the Hotel and Conference, which is the bottom right. Again, why did we pick that site? Two reasons. It's a mirror of the Aspire side. So it's a private road. You need a porte-cochere, obviously, for a hotel. And then secondly, with a conference, you need an immense amount of parking. So obviously, if you're putting that development on a stand-alone site, the parking essentially killed the development. So that is why the mall was designed the way it was, so we can attach a facility like that. Okay. So then some of the projects under construction. So this is Gateway East, nearing completion. Just over 12,500. There is a retail component in there or restaurants. Those are both taken. So the one tenant is SMOKE, the other tenant is Modern Tailors. So that will essentially be on the ground floor and then the remaining just over ZAR 10,000 is some collaboration hub space. Debbie's team have been extremely busy with this. They've let just under 50% with another 24% spoken for. So we have 73% taken before completion. I think that talks to obviously the design, but also talks to the dynamic leasing that we've been doing. What we have been able to do with this project because of that ZAR 100 million basement is push the design pretty hard because obviously, the basement was done so long ago. The cost is obviously a lot lower than if I had to do it now. So we are in the market around about ZAR 180 net, and that is what we're achieving as a rate per square. Following our standard Attacq green principles and backup water, we've also got a rainwater harvesting facility there. And then the floor plates, we've essentially modeled on the back of what we did at Ingress 3, which was our first collaboration hub spec post COVID. Really, the floor plates are sitting at about 1,500 squares that we can divide 2 ways. So it gives Debbie and her team a bit of flexibility. So this is Aspire. It says pipeline, but we have broken ground post year-end. This is probably an angle we haven't shown before. You'll see the pizza box there, which is the Pantry. So the Pantry is going where the red sign is. So that will be a whole street retail area. From an Aspire point of view, extremely excited where this project is going. We've sold 164 of the 217 units already at a bankable level of 146. We've appointed WBHO as the main contractor. They've come under budget. And it's going to be an iconic building. I mean PwC is our tallest building. This one is going to be 20 stories, so a little bit lower than PwC, and we're planning on this being finished early 2028. This is a JV with Tricolt as well where we are a 25% shareholder. I think as Jackie and Peter mentioned on numerous times, residential from an economic point of view is not really our focus. But from a city point of view and what we're trying to create at Waterfall, it's really, really important to us. So this is the Pantry. So I think this really talks to our precinct strategy, and that allows us to obviously control and influence the environments that we are developing and that we own. And the reason that this is really -- a key case study to this is on the left-hand side is essentially where the original transport hub was, and it was obviously a mirror on the eastern side of the mall. It just wasn't fit for purpose anymore for a number of reasons. So we obviously moved that to under the park, where we've created the Izinga Transport Hub. But what that's allowed us to do is create off-street parking, which has been a challenge for us in Waterfall and then create obviously that retail effect on street level. So that talks to us trying to densify, but that we can influence and control an environment allows us to look at multiple projects and see what's best for the precinct. And I think this is what that talks to. So this is the big project at the moment. So this is the Hotel and Conference. Again, I think I stood up here a couple of years ago, and obviously, the questions post-COVID were where we're going with the office space. And I said, you can't change your strategy just on the back of any change in sectors. And I think we've seen obviously a strong uptick in the office space or our collaboration of space, and that supports projects like this. If we hadn't kept our eye on the strategy that we have, we wouldn't probably be able to do this because, obviously, the office space obviously supports this. So we've got a really strong partner with this with the Rabie Property Group, who are going to take 25% of the building. The Century City Hotel and Conference Group are going to be the operator, so an extremely strong operator. We are working obviously very closely with them on the designs. It's going to be a lease-driven model. So I think that's important to obviously focus on. Again, we piggybacked off the mall infrastructure, which is important. And then we're looking at finishing this at the end of 2018 (sic) [ 2028 ]. There will also be a gray water harvesting plant in here because obviously, of the amount of water, but we're still currently designing that. So I'm going to play a quick video. This is the model of our Hotel and Conference to give you guys a bit of a scale and how it interacts with the mall. [Presentation]

Okay. So another hotel development. So this was the original hotel built when we launched Waterfall. It's a City Lodge. We are now doing the expansion there. So we're adding about 55 rooms there on a CapEx-linked structure. So this hotel is essentially very close to Deloitte. You'll see it obviously, if you come up Allandale and you turn left, obviously into Lone Creek. So we should be completing that second quarter of next year. So this is a different angle of Waterfall City Junction. This is obviously looking Southeast. So what you're looking at here is Phase 1, where the spec warehouse is currently going up and then Phase 2 is just behind and Phase 3 and Phase 4. So you'll see the roads are currently going in and the infrastructure. Lourens and his team will start the landscaping back end of this year and then obviously implement the guardhouse for Phase 1 and then the internal roads as well. So this is a tenant-driven development, just over 15,000. We're busy finalizing the transaction agreement. It's been quite a long road for a number of reasons, but you'll see the cost has gone up there by about ZAR 100 million, which is essentially a big reason for those delays. The client has gone into quite a lot more design on it because it is going to be quite a technical facility being refrigerated, but it's also going to have your backup water, your rain water harvesting and it's going to have 3 yards. So this will be eventually Attacq will own 25% of this with Sanlam 25% and then the ten taking 50%. We're fairly comfortable with that because of the technical nature of the development. And then this is the spec warehouse. So again, obviously, with Sanlam being a 50% shareholder in the entire Waterfall Junction, they're a 50% shareholder in this building. It's 22,000 squares. It's going to have 40-meter yards, 13.5 meter to eaves, got a 190 floor, very generic, obviously, so Debbie and her team can obviously pitch it to a number of different tenants. WBHO are the contractor here. So they're obviously on a number of our projects at the moment, and we are expecting completion early in the new year. And with that, I'll hand over to Pete.

Thanks, Dave. I think we can all see there's quite a lot on the go. I don't have any inspiring music or video here with me. It's a bit of a hard act to follow. Let's look at the highlights. This is going to be as good as it did from an excitement perspective. Normalized distributable income per share increased by 15.5%. We'll touch on why it's normalized now. So it's now at ZAR 1.251. Our full year dividend per share increased by 17.2% to ZAR 1.02 per share. That means our final dividend declared is ZAR 0.54 a share, and that obviously adds to ZAR 0.48 per share we paid out at interim. NAV growth up 5.8% to ZAR 20.04. Group gearing still very healthy, but reduced to 25%. Interest cover ratio improved to 3.21x from 2.95x. From a weighted average cost of debt perspective, we've now seen a decline to 8.7%. That's largely driven by 2 things. One would be -- there has just been a change in base rates from year-on-year, although it doesn't feel like that now at the moment, just given the environment we're in. And then we also undertook our second DMTN issuance in April this year, and that's raising just over ZAR 1 billion. Those rates came in roughly 30 basis points from our maiden issue in 2024. Our GCR credit rating remains at A+, but that's going to be up for review on the back of these results. Just looking at the debt metrics graph at the bottom, that just shows our journey over the last few years. And it's, by and large, a positive one, showing a steady increase in our ICR, a decline in our LTVs and also our margins coming down to an average of 141 basis points. Looking at our distributable income per focus area, the top table, you're looking at gross numbers there. Things are pretty much even from Waterfall City and Rest of South Africa. You can see double-digit increases on both of those. That's largely a lot of the factors that Mike's already brought up, and Jackie, as well. Increased efficiencies, just your normal rental escalations and filling of vacancies. Then you'll see below the normalized line where we recorded a 15.2% increase. There's a once-off rate credit. It's not the biggest number in the world. It's a historical number. It is definitely property income, but it's very much ad hoc and once-off in nature and not to be repeated. So we felt it prudent to split that out from the normal distributable income base of the group. Looking a bit further down, we've got profit on sale of sectional title units that relates to the completion of the fourth and final tower of Ellipse. We recognized profits on transfer. And so those units in that scheme is largely sold out, and that will be our share of the profits. We do not pay that out. It's trading in nature, and it's not repeatable, quite lumpy, so we retain that. If we look how that translates into a cents per share from a cents per share perspective, you can see Waterfall City, also similar growth metrics coming through, slightly different just because of the rounding issues on when you divide everything by the number of shares. But we're coming out at a normalized growth rate of 15.5%. If you add in the on-off rate credit, it's a 17.4% growth. It comes to ZAR 1.271 per share. We pay out 80.3% of the ZAR 1.271. That just gives us a bit of a view of what's happened year-on-year, what are the large changes in distributable income. As you can see, the biggest mover there is distributable NOI increases, that's vacancies getting filled, that's the efficiencies and the impact of PV, and that's also just our normal escalations. So other than that, we've got one newly completed development coming online, adding to our NOI that would be Vantage 12.1. And then you can see the impact of net lower finance costs over the year. The largest downward movement is our minority adjustment that would represent the GEPF's 30% in AWIC. That gets us to a full year DI of ZAR 890 million, you can say. And then you can see we're paying out ZAR 713.8 million of that at an 80.3% payout ratio, and we're keeping ZAR 175 million, very similar proportion-wise to prior years. From a balance sheet perspective, we've seen some increases on fair values, largely fair value driven on our Waterfall City and Rest of South Africa property portfolios. That drives most of the change that you can see there. Head office is largely cash. And then other investments is largely our investment in Lango, which has been impacted by a decline in NAV per share as well as exchange rate movements. So total assets up 5%. Liabilities, we've touched on already, but that's largely up on the back of new debt issuances. And that gives us equity growth of 5.8% from both from a total perspective as well as attributable to tax shareholders, and that translates into our ZAR 20.04 net asset value per share. This just gives us a bit of a walk-through from our investment properties over the year. Again, you can see additions in CapEx, that would be the new buildings we brought online as well as completed buildings. Largely, that upward tick is largely from fair value adjustments. And then there's some IFRS-related adjustments, bringing us to a ZAR 23 billion portfolio value. This is net of straight lining for those who are concerned about IFRS. Interest-bearing borrowings, up slightly from ZAR 6.7 billion, ZAR 6.8 billion to ZAR 7.025 billion. So I say that's largely on the back of our DMTN issuance net of some redemptions. Our weighted average loan term has come down as expected. That's probably 0.8 is 10 months of the year. So that would have been just the passage of time but offset by our new issuances on the DMTN side. Our hedge percentage is just over 80% at year-end. Our policy is 70%. So we'll look to maintain our 70% and add to that as needed as our build-out picks up and also as our debt -- our hedges roll off, but we'll look at that in the next slide. From a weighted average cost of debt, I've touched on that now down to 8.7%. However, obviously, the interest rate environment is looking more volatile at the moment, and we've obviously got some important rates meetings this week and the next internationally and domestically. Gearing, very healthy at 25% and obviously, ICR strengthening to 3.21x, which -- 2 metrics we're very proud of. From a group level bank covenants perspective, we've got our group covenants there. You can see we've got a healthy headroom in all of those. And our available liquidity is also very healthy, sitting at ZAR 2 billion, of which ZAR 1.1 billion is in available facilities and around ZAR 900 million in cash. This shows our interest-bearing or our debt and hedge maturity profiles. As you can see in the next 12 months, there is a small number, ZAR 69 million. That's just interest accrual. So no facilities maturing in the next 12 months. We do, however, have just over ZAR 2 billion or almost ZAR 2.1 billion of hedges maturing. Those hedges are largely back ended in May and June next year. And we'll obviously look to add to those as and when required to maintain at least a 70% hedge profile. Other than that, obviously, we're well positioned for ZARONIA, which comes in at the end of December. The team has done a lot of work in that respect. And the chart on the right, not too much change there. Obviously, you can see our proportion of DMTN has grown. That's just with the issuance of our ZAR 1 billion in April. That I'll hand back to Jackie.

Thank you, Pete. Thank you for -- to the team. All right. So as we look ahead into the next year, -- we remain focused on things that we can control as a business. We do appreciate and we do see every day, we work in and operate in a very, very volatile operating environment on a daily basis. So our distribution per share guidance of the normalized DIPS for the year, we're guiding between 6% and 9% for the year. And we're going to remain committed to our shareholders. We're going to remain committed to allocating the capital as best as possible, as responsible as possible, ensuring that we deliver on what we've said we will deliver. I can assure you, this is a team that we don't like property. Sometimes [ HOC ] is not allowed to ask this, but I'll ask, do you love property? And if you don't like, say yes, I'm like, no, you can't look for Attacq. No, no, I'm joking. But we really love what we do. We love the precincts. We love what we do, and it represents in our numbers. So thank you to our stakeholders. Thank you to our shareholders for your support. But more importantly, thank you for your trust, trusting us to do what we love and to operate in this volatile environment. So I'm going to say with that, thank you again to my team, to the entire Attacq. We can be very proud of what we've achieved. Our team is looking ahead for the new year. We're going to do our best within the environment we're operating in, and we're going to look to continue to deliver and create long-term value for all of our stakeholders and where we operate. Thank you, and I'm going to open up the floor for questions.

Good. We've got one question online, but we want to open up the floor -- yes.

[indiscernible]

Yes. I think -- municipal and government, I think we all know the state of certain of our infrastructure and the decay in our infrastructure. It definitely takes a very special team to achieve the rights that we need to achieve. I don't think governments and the municipalities are always as efficient as they should be. I believe in our teams, have created very strong relationships with our team. The teams also understand what we are doing here, helps them fast track in their doing and also in their vision. But it is a challenge. It's not an easy environment that we need to navigate. And our teams, some people have lost quite a lot of [ hair ] working at Attacq over the number of years. On boreholes, we do have boreholes. You need a water use license to operate a boreholes. In Waterfall, we do have boreholes, but that is just for irrigation and not for human consumption because that's another set of -- a lot of compliance that we need to comply with. Lourens? Yes. Anything I've missed? That's a man with -- and his team that looks after all the infrastructure and working with council, Lourens du Toit. Any other questions? We've got a question here from Trinity, online. I'll read the question. The balance sheet is stronger than ever and earnings growth prospects still strong. What factors would need to change for Attacq to increase its payout ratio? Pete, should I start and then you can -- or do you want to answer this?

I'll answer.

You can answer. I'll fill in with Pete.

It's a common question. And obviously, there are some REITs who've got high payout ratios. I think the reality is we -- also are the REIT with the largest development pipeline in the country. So as you can see, Dave doesn't have a problem spending money. And we've got a lot of CapEx that needs to go into the ground, notwithstanding the fact that assets -- I mean, our assets do require a lot of upkeep, just like any real estate asset does. It's an asset-intensive or it's a capital-intensive asset class. So we do retain those funds to plow back into our existing assets to make sure they remain competitive and attractive and are much more difficult to displace. But the reality is we do evaluate it every year. But as you can see, we've got a lot to do at Waterfall. So we hopefully are putting that money to good use.