Consumers struggle but more visit Resilient’s malls

Property group Resilient has seen more shoppers visiting its retail properties despite consumers coming under strain in the tough economic times.

According to Thursday’s preclose update from the real estate investment trust (Reit), valued at about R14.7bn on the JSE, foot traffic increased 4.9% in the 10 months to the end of October, with comparable sales growing 5% in SA.

Local properties account for 90.5% of the group’s total assets, according to its latest interim results when retail and corporate ones are included, with stronger trading performances in the Northern Cape, Limpopo and Mpumalanga.

“The growth in KwaZuluNatal was limited (0.7%) due to the high base in the previous comparable period. Growth in North West province (1.8%) was impacted by construction activities at Mahikeng Mall as well as ongoing road works in front of the mall,” the company said.

But the demand from tenants remained strong as vacancies were reduced since June by 0.4% to 1.5% and expiring leases were renewed at 4.6% higher on average. “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%,” it said.

To cut down on the cost and effects of load-shedding, the group has introduced back-up power at its various properties, with installed solar power generation capacity set to go up 83.5% to 59.1MWp (megawatt peak) year on year by the end of December, accounting for 27.5% of the group’s total energy consumption.

The bulk of the group’s assets are retail ones, accounting for 87.6%, and include Jabulani Mall in Soweto, The Grove Mall in Pretoria and Irene Village Mall in Irene. These also include four regional malls in France held via Resilient’s 40% stake in Retail Property Investments SAS in partnership with Lighthouse.

In France, footfall and sales grew 13.4% and 10.1%, respectively, in the nine months to endSeptember, while vacancies were reduced as leases were concluded with international brands.

It was announced earlier in 2023 that CEO Des de Beer will retire from the company he founded and listed in 2002, with the current head of retail, Johann Kriek, taking over in January.

The board reconfirmed its guidance of paying out about R4 per share for the full financial year.