Wrap Text
Pre-close update
RESILIENT REIT LIMITED
Incorporated in the Republic of South Africa
Registration number: 2002/016851/06
JSE share code: RES
ISIN: ZAE000209557
Bond company code: BIRPIF
LEI: 378900F37FF47D486C58
(Approved as a REIT by the JSE)
("Resilient" or "the Company")
PRE-CLOSE UPDATE
The following pre-close update is provided in anticipation of Resilient's results for the year ending December 2023. The
financial information on which this update is based has not been reviewed or reported on by the Company's external
auditors.
SOUTH AFRICA
PORTFOLIO UPDATE
Foot traffic increased by 4,9% during the 10-month period ended October 2023. During this period, comparable sales
growth was 5,0%. Strong trading performances were achieved in the Northern Cape, Limpopo and Mpumalanga provinces.
The growth in KwaZulu-Natal was limited (0,7%) due to the high base in the previous comparable period. Growth in the
North West province (1,8%) was impacted by construction activities at Mahikeng Mall as well as ongoing road works in
front of the mall.
Trading was supported by the new Checkers at The Grove Mall as well as the Dis-Chem and Food Lover's Market that
opened in Kathu Village Mall. Dis-Chem also opened in I'langa Mall, Tubatse Crossing and Diamond Pavilion. A relocated
and enlarged Truworths store was opened in Mvusuludzo Mall. A&D Spitz, Kurt Geiger, G-Star RAW, Fabiani, Pringle,
Skipper Bar and Le Coq Sportif opened in Tubatse Crossing while Totalsports, Sportscene and Markam expanded
materially. G-Star RAW and Fabiani opened in Limpopo Mall. At Mall of the North, Checkers was fully revamped, while
Sportscene, Totalsports, Baby City and Hi-Fi Corporation were materially expanded. Checkers and Clicks are being
expanded and revamped at Diamond Pavilion. Sportscene, Totalsports and Markham were expanded and revamped at
Kathu Village Mall. During the period, A&D Spitz, Fabiani, Polo, Yuppie Chef and Pringle were introduced and Poetry
and Sportscene were expanded at I'langa Mall. The new Pick n Pay store in Jabulani Mall, owned by a leading local
franchisee, opened on 23 November 2023.
Tenant demand in Resilient's portfolio remains strong. Vacancies reduced from 1,9% at June 2023 to 1,5%. Tenants
remaining in occupation renewed expiring leases at rentals on average 4,6% higher than under the expired leases. Leases
concluded with new tenants were on average 26,5% higher than the rentals of the outgoing tenants. In total, rentals for
renewals and new leases increased on average by 7,9%.
The impact of loadshedding has been substantially decreased by the recent reduction in loadshedding as well as the
implementation of back-up power initiatives at various malls.
ENERGY
Resilient has continued the roll-out of solar and battery installations in line with its long-term energy strategy. Installed
solar generation capacity will increase from 32,2MWp at December 2022 to 59,1MWp by December 2023. This will
constitute 27,5% of Resilient's total energy consumption. It is projected that installed capacity will increase by a further
22,3MWp during FY2024. Resilient continues to reduce its energy demand by various initiatives, including relamping of
malls and upgrading of air-conditioning systems, and is actively assisting tenants in becoming more energy efficient.
FUNDING
During October 2023, Resilient raised R200 million of 3-year funding and R550 million of 5-year funding through the
capital markets. The margins on these notes were 130 basis points and 140 basis points, respectively. Resilient has received
credit approval for a new R500 million green loan from Standard Bank and the extension of R1,1 billion of facilities with
Nedbank.
FRANCE
The French portfolio continued its recovery with footfall and sales increasing by 13,4% and 10,1% for the nine-month period
ended September 2023, respectively. Substantial progress has been made in reducing vacancies with leases concluded with
international brands. At Saint Sever, Primark will open their 6 709m2 flagship store on 1 December 2023.
LISTED INVESTMENTS
Resilient elected to receive 50% of the June 2023 dividend from Lighthouse in shares with the remaining 50% received in
cash.
The remaining interest in Hammerson has been sold. Total proceeds of R1,2 billion were received against the original
purchase price of R746,4 million.
CHANGE IN STATUS OF DIRECTOR
As announced on 15 August 2023, Des de Beer will formally retire as chief executive officer ("CEO") at the end of 2023 and
will remain on the Board as a non-independent non-executive director. Johann Kriek has been appointed as CEO to replace
Des de Beer, with effect from 1 January 2024.
OUTLOOK
The Board reconfirms its previous guidance of approximately R4,00 per share for the 2023 financial year.
30 November 2023
Sponsor
Java Capital
Debt Sponsor
Rand Merchant Bank
(a division of First Rand Bank Limited)
Date: 30-11-2023 08:45:00
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