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 six months ending June 2025
("Interim Period"). The financial information on which this update is based, including the outlook, have not been
reviewed or reported on by the Company's external auditors.
SOUTH AFRICA
PORTFOLIO UPDATE
Retail sales increased by 6,9% during the five months ended May 2025. The sales from Mahikeng Mall were excluded
following the opening of the extension in May 2024.
During the Interim Period, lease renewals were concluded on average 2,2% higher than the expiring rentals. New leases
were concluded on average 19,5% higher than the rentals of the outgoing tenants. In total, rentals for renewals and new
leases increased by 4,9%. Escalations of 5,5% and 5,7% were agreed for renewals and new leases respectively.
Resilient's pro rata share of vacancies is 2,3% at June 2025. This includes planned vacancies arising from asset
management initiatives.
The construction of the extension to Irene Village Mall, which will accommodate a Checkers Hyper, Dis-Chem as well as
several national retailers, has commenced and is scheduled for completion at the end of September 2026.
ENERGY
Resilient successfully installed an additional 5,6MWp of solar energy generation capacity during the Interim Period, with
a further 4,4MWp scheduled for completion by the end of the financial year. Upon completion, this will increase total
installed capacity to 86,5MWp. This is projected to supply approximately 39,2% of Resilient's total energy requirements.
The 4MWh battery energy storage system ("BESS") at Irene Village Mall and the 6MWh BESS at The Grove Mall, with
automated micro-grid systems, are fully operational. The performance to date is exceeding initial expectations. Installation
has commenced on a 4MWh BESS at both Diamond Pavilion and Boardwalk Inkwazi. The Board has approved a further
4MWh BESS at Mahikeng Mall.
SPAIN
At Salera, agreements are under negotiation with Stradivarius and Bershka to relocate and expand their stores. The new
stores will be upgraded to the brands' latest flagship concepts and are scheduled to open during 1Q2026. The new locations
will combine the space formerly occupied by Sports Direct, United Colors of Benetton and AW Lab.
Retail sales of Salera increased by 8,7% during the five months ended May 2025. The vacancy at June 2025 is 0,4%.
FRANCE
At Saint Sever, the food court will be fully let following the introduction of Crust, Tasty Pizza and Chamas Tacos which
will enhance the centre's food offering. Commercial terms have been finalised with Adidas, which is expected to open
during 4Q2025. Normal opened at Docks 76 in March 2025 and Darty, France's largest electronics retailer, is anticipated
to open in 3Q2025. Inditex is expanding its footprint through the introduction of a new Pull&Bear flagship concept at
Docks Vauban which is expected to open in 3Q2025. In addition, commercial terms have been agreed with German
discount retailer TEDi, with the opening expected in 4Q2025. The ongoing extension to Rivetoile is progressing well and
remains on track for completion in 3Q2025. Several new lease agreements have been finalised, including jewellery and
accessories brand Lovisa, cosmetics retailer La Boutique Du Coiffeur and Thai dining concept Makin Thai. Furthermore,
commercial terms have been agreed with home décor retailers Kraft and Milome.
Retail sales in the French portfolio increased by 4,6% during the five months ended May 2025. The vacancy in this portfolio
is 6,4% at June 2025.
LISTED INVESTMENTS
While the investment in Lighthouse Properties p.l.c. ("Lighthouse") remains a core component of Resilient's offshore
strategy, the Board took advantage of strong market conditions to dispose of a portion of the investment to fund the
development pipeline. Resilient currently owns 27,6% of Lighthouse following the disposal of 39,2 million Lighthouse
shares for proceeds of R332,2 million.
OUTLOOK
The energy strategy is continuing to yield positive returns. The property portfolio is performing ahead of expectations
mainly due to higher than predicted electricity demand savings, turnover rentals as well as the completion of solar
installations ahead of schedule. Finance costs are projected to be lower than anticipated following the disposal of
Lighthouse shares, a reduction in interest rates and cost savings on projects reaching final completion.
The Board forecasts growth in distribution of at least 8% or 475,47 cents per share for FY2025. This updated guidance
assumes that interest rates remain unchanged, no loadshedding will be implemented, Lighthouse achieves its guidance,
there is no further deterioration of the macroeconomic environment, no major corporate failures occur and that tenants will
be able to absorb the rising utility costs and municipal rates.
30 June 2025
Sponsor Debt Sponsor
Java Capital Nedbank Corporate and Investment Banking,
a division of Nedbank Limited
Date: 30-06-2025 12:40:00
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