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Unaudited financial results and declaration of interim dividend for the six months ended 30 June 2025
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" or "the Group")
www.resilient.co.za
Unaudited financial results and declaration of interim dividend
for the six months ended 30 June 2025
Nature of the business
Resilient is a retail-focused Real Estate Investment Trust ("REIT") listed on
the JSE Limited ("JSE"). Its strategy is to invest in dominant retail centres
with a minimum of three anchor tenants and let predominantly to national
retailers. A core competency is its strong development skills which support
new developments and the reconfiguration of existing shopping centres to
adapt to structural changes in the market. Resilient also invests directly
and indirectly in offshore property assets.
The Company's focus is on regions with strong growth fundamentals. Resilient
generally has the dominant offering in its target markets with strong
grocery and flagship fashion offerings.
Distributable earnings and dividend declared
The Board has declared a dividend of 245,72 cents per share for the six months
ended June 2025. This represents an increase of 12,2% compared to the
218,97 cents per share for the six months ended June 2024.
The South African portfolio recorded like-for-like comparable net property
income ("NPI") growth of 8,6% for 1H2025. Resilient's energy strategy
continues to shield against the continued rise of administered prices.
The euro dividend from Lighthouse Properties p.l.c. ("Lighthouse") for
1H2025 increased by 7,9%. Offshore distributable earnings further benefitted
from contracted forward exchange rates that were 6,1% higher than in
1H2024 (R21,92 vs R20,67).
South African interest rates reduced from 11,75% in January 2024 to 10,50% at
June 2025. On average, interest rates were 75 basis points lower during
1H2025 compared to 1H2024. To the extent that borrowings were unhedged or
hedged by way of interest rate caps, the Group benefitted from these lower
rates. However, the rebasing of in-the-money interest rate hedges that expired
during 2H2024 negatively impacted finance costs in 1H2025 compared to 1H2024.
Commentary on the results
South Africa
Retail sales increased by 6,9% during the five months ended May 2025. Sales
for the month of June 2025 were impacted by school holidays which fell
predominantly in July in the current reporting period as opposed to June in
the prior period. This resulted in an increase of 5,2% in retail sales for the
interim period, notwithstanding tough economic conditions. Strategic vacancies
resulting from asset management initiatives also affected retail sales during
the period, particularly at Boardwalk Inkwazi, Galleria Mall, Secunda Mall
and Tubatse Crossing. The sales from Mahikeng Mall were excluded from retail
sales performance following the opening of the extension in May 2024.
During the interim period, Resilient concluded 287 lease renewals over
104 527m2 of gross lettable area ("GLA") at rentals on average 2,2% higher
than expiry. Leases were concluded with 79 new tenants (17 473m2 of GLA) at
rentals on average 19,5% higher than those of the outgoing tenants. In total,
rentals for renewals and new leases increased on average 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 in its 1,2 million square metre
portfolio was 2,3% at June 2025. This includes planned vacancies arising
from asset management initiatives.
France
Resilient owns a 40% interest in Retail Property Investments SAS, the owner
of four shopping centres in France, in partnership with Lighthouse.
Sales across the French portfolio increased by 3,8% in 1H2025 and this
portfolio was 6,4% vacant at June 2025. The euro NPI growth of the French
portfolio was 12,0%.
Spain
Resilient and Lighthouse each own a 50% interest in Spanish Retail Investments
SAS, SA, the owner of Salera Centro Comercial ("Salera"), a shopping
centre in Castellon, Spain.
Retail sales of Salera increased by 8,5% during 1H2025 and the shopping
centre was 0,4% vacant at June 2025.
Energy projects
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 in the South African portfolio
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.
Property valuations
Resilient's full property portfolio is subject to an independent external
valuation annually at year-end. The South African property portfolio was
therefore valued by Quadrant Properties Proprietary Limited ("Quadrant")
at December 2024. To accommodate the co-owners of Arbour Crossing,
Galleria Mall and Tzaneen Lifestyle Centre, Quadrant valued these
properties at June 2025. Resilient's share of the positive revaluation
was R126,5 million (+4,8%).
Listed portfolio
While the investment in Lighthouse remains a core component of Resilient's
offshore strategy, the Board took advantage of strong market conditions
to dispose of 39,2 million Lighthouse shares for proceeds of R332,2 million
(excluding transaction costs) to fund the development pipeline. Resilient
currently owns 27,6% of Lighthouse.
Financial performance
Unaudited Restated
for the for the
six months six months
ended ended
Jun 2025 June 2024 Movement
IFRS information
Total revenue (R'000)* 1 928 477 1 780 587 147 890
Basic earnings per
share (cents)* 177,30 387,89 (210,59)
Diluted earnings
per share (cents)* 176,55 387,07 (210,52)
Headline earnings
per share (cents)* 226,23 192,10 34,13
Diluted headline earnings
per share (cents)* 225,27 191,70 33,57
Dividend (cents per share) 245,72 218,97 26,75
Net asset value per share (R) 69,83 66,52 3,31
Management accounts information
Net asset value per share (R) 70,81 67,05 3,76
Loan-to-value ratio (%) 37,8 37,0 0,8
Gross property expense
ratio (%) 37,5 38,2 (0,7)
Percentage of direct and
indirect property assets
offshore (%) 24,3 24,8 (0,5)
* Represents continuing operations. The Nigerian operations, disposed of
in FY2024, were classified as discontinued operations at 1H2024.
Outlook
Resilient is forecasting strong results for FY2025. The South African
portfolio continues to serve as the core of the Group's performance enhanced
by the benefits of the energy strategy. The retail market continues to show
strength notwithstanding tough economic conditions. Resilient's portfolio
is further supported from its exposure to the informal economy.
Growth from offshore investments was weighted towards 1H2025. This is
mainly due to the timing of accretive property acquisitions by Lighthouse
during FY2024 and the benefit from contracted forward exchange rates
that were in place.
Finance costs for the remainder of the year will benefit from lower
interest rates notwithstanding the negative impact from the rebasing of
R1,5 billion of in-the-money interest rate hedges that expired
during July 2025.
The Board's proactive approach to preventative maintenance enables
Resilient to maintain a payout ratio of 100%. The Board forecasts
growth in distribution of at least 8% or 475,47 cents per share
for FY2025 (FY2024: 440,25 cents per share). This guidance assumes that
interest rates remain unchanged, no loadshedding will be implemented,
Lighthouse achieves its guidance, no major corporate failures occur and
that tenants will be able to absorb the rising utility costs and municipal
rates. This guidance has not been audited, reviewed or reported on by
Resilient's auditor.
Payment of interim dividend
The Board has approved and notice is hereby given of an interim
dividend of 245,72000 cents per share for the six months ended
30 June 2025.
The dividend is payable to Resilient shareholders in accordance with
the timetable set out below:
Last date to trade cum dividend Tuesday, 2 September 2025
Shares trade ex dividend Wednesday, 3 September 2025
Record date Friday, 5 September 2025
Payment date Monday, 8 September 2025
Share certificates may not be dematerialised or rematerialised between
Wednesday, 3 September 2025 and Friday, 5 September 2025, both
days inclusive.
In respect of dematerialised shareholders, the dividend will be
transferred to the Central Securities Depository Participant ("CSDP")
accounts/broker accounts on Monday, 8 September 2025. Certificated
shareholders' dividend payments will be posted on or about Monday,
8 September 2025.
This short-form announcement is the responsibility of the directors
and is only a summary of the information in the 1H2025 results
announcement and does not include full or complete details. The
information regarding the tax treatment of the dividend is included
in the 1H2025 results announcement. The 1H2025 results announcement
has been released on SENS and is available on the JSE website at
https://senspdf.jse.co.za/documents/2025/JSE/isse/RESE/1H2025.pdf and
on the Company's website at https://www.resilient.co.za/financials.
Any investment decision should be based on the 1H2025 results announcement
available on the Company's website. The 1H2025 results announcement is
available through a secure electronic manner at the election of the
person requesting inspection.
Divdend tax treatment
In accordance with Resilient's status as a REIT, shareholders are advised
that the dividend of 245,72000 cents per share for the six months ended
30 June 2025 ("the dividend") meets the requirements of a "qualifying
distribution" for the purposes of section 25BB of the Income Tax Act,
58 of 1962 ("Income Tax Act"). The dividend will be deemed to be a dividend,
for South African tax purposes, in terms of section 25BB of the Income Tax Act.
The dividend received by or accrued to South African tax residents must
be included in the gross income of such shareholders and will not be exempt
from income tax (in terms of the exclusion to the general dividend exemption,
contained in paragraph (aa) of section 10(1)(k)(i) of the Income Tax Act)
because it is a dividend distributed by a REIT. This dividend is, however,
exempt from dividend withholding tax in the hands of South African tax
resident shareholders, provided that the South African resident shareholders
provide the following forms to their CSDP or broker, as the case may be,
in respect of uncertificated shares, or the Company, in respect of
certificated shares:
a) a declaration that the dividend is exempt from dividends tax; and
b) a written undertaking to inform the CSDP, broker or the Company, as
the case may be, should the circumstances affecting the exemption change
or the beneficial owner ceases to be the beneficial owner, both in the
form prescribed by the Commissioner for the South African Revenue Service.
Shareholders are advised to contact their CSDP, broker or the Company,
as the case may be, to arrange for the above-mentioned documents to be
submitted prior to payment of the dividend, if such documents have not
already been submitted.
Dividends received by non-resident shareholders will not be taxable as
income and instead will be treated as an ordinary dividend which is exempt
from income tax in terms of the general dividend exemption in
section 10(1)(k)(i) of the Income Tax Act. Any distribution received by
a non-resident from a REIT will be subject to dividend withholding tax
at 20%, unless the rate is reduced in terms of any applicable agreement
for the avoidance of double taxation ("DTA") between South Africa and the
country of residence of the shareholder. Assuming dividend withholding
tax will be withheld at a rate of 20%, the net dividend amount due to
non-resident shareholders is 196,57600 cents per share.
A reduced dividend withholding rate in terms of the applicable DTA may
only be relied on if the non-resident shareholder has provided
the following forms to their CSDP or broker, as the case may be, in
respect of uncertificated shares, or the Company, in respect of
certificated shares:
a) a declaration that the dividend is subject to a reduced rate as a
result of the application of a DTA; and
b) a written undertaking to inform their CSDP, broker or the Company,
as the case may be, should the circumstances affecting the reduced rate
change or the beneficial owner ceases to be the beneficial owner, both in
the form prescribed by the Commissioner for the South African Revenue
Service. Non-resident shareholders are advised to contact their CSDP,
broker or the Company, as the case may be, to arrange for the above-mentioned
documents to be submitted prior to payment of the dividend if such
documents have not already been submitted, if applicable.
Shares in issue at the date of declaration of this dividend: 365 204 738.
Resilient's income tax reference number: 9579269144.
By order of the Board
Johann Kriek Monica Muller
Chief Executive Officer Chief Financial Officer
Johannesburg
14 August 2025
Directors
Alan Olivier (Chairman)#; Stuart Bird#; Des de Beer; Des Gordon#;
Johann Kriek*; Sarita Martin#; Monica Muller*; Protas Phili#;
Thando Sishuba#; Barry Stuhler; Barry van Wyk#
* Executive director # Independent non-executive director
Company Secretary
Sue Hsieh (MBA, PGDip, LLB, Fellow member of CGISA)
Registered address
4th Floor, Rivonia Village, Rivonia Boulevard, Rivonia, 2191
Transfer secretaries
JSE Investor Services Proprietary Limited, 5th Floor,
One Exchange Square, Gwen Lane, Sandown, 2196
Sponsor
Java Capital Trustees and Sponsors Proprietary Limited,
6th Floor, 1 Park Lane, Wierda Valley, Sandton, 2196
Debt sponsor
Nedbank Corporate and Investment Banking,
a division of Nedbank Limited
Nedbank Rivonia Campus, 135 Rivonia Road, Sandown,
Sandton, 2196
Date: 14-08-2025 03:45:00
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