The Group continued to focus on the settlement of related party matters and property fundamentals, notwithstanding high interest costs and strong macro-economic headwinds.

Joint CEO, Abri Schneider commented: “High finance costs and low economic growth provided significant headwinds during the year. Our focus, however, remained on cleaning up the balance sheet and improving portfolio fundamentals. Most of these benefits will only flow to the bottom line in future reporting periods.”

Accelerate appointed Flanagan and Gerard together with the Moolman Group as the Asset and Property Managers of the Mall, with the positive impact of this change already gaining traction.

After the reporting date, RMB extended R1.1 billion of Accelerate’s loan facilities to 31 March 2025 with a further R230.0 million extended to 31 May 2025. Sanlam (“Sanfin and SIM”) extended R302.0 million to 30 August 2024.

Accelerate’s finance cost increased by 42.2% on the prior financial year ended 31 March 2023. The increase is due to a R37.5 million interest accrual that related to the prior year, a current year accrual of R47.2 million and R71.1 million as a result of the rebuilt claim to the related party.

The weighted average cost of funding increased from 10.45% as at 31 March 2023 to 11.48% as at 31 March 2024, which was partially offset by the effective swap book in place. Notwithstanding the higher finance costs, Accelerate’s interest cover ratio (“ICR”) remained at 1.7 times.

During the reporting year, Accelerate further paid down debt to the amount of R202.0 million following the disposal of Ford Fourways and Leaping Frog Shopping Centre.

After the reporting date, the Group transferred Eden Meander, Brooklyn Place, 9 and 10 Charles Cresent with a combined GLA of 40,935m². The proceeds from the disposal of these assets of R563.0 million (net of commission) were used to settle debt. Sale agreements for a further three properties were concluded to the value of R176.0 million with a GLA of 44,153m² and a combined vacancy of 64.7%.

Fair value adjustments to investment property reduced significantly from R744.6 million in the prior financial year to R396.0 million due to stability in the asset base. Rental income, including recoveries, however decreased by R6.8 million from R880.4 million to R873.6 million, largely

Overall portfolio vacancies increased from 18.3% in the prior financial year to 21.1% at year end, despite an aggregate 17 917m2 GLA of vacancies being disposed of. Although the increase seems significant, the additional vacancy is only 1,083m².

The SA REIT loan-to-value increased from 48.2% to 50.6% year-on-year, mainly as a result of the reduction in fair value of the portfolio. This is expected to improve as the disposal programme continues to progress.

Property expenses decreased by R1.9 million from R335.8 million to R333.9 million, although operating expenses were up R11.3 million to R79.8 million, mostly attributable to administrative and other costs increasing by 16.1%. This mainly related to once-off increases in staff costs resulting from severance packages paid to exiting staff and increased professional fees to finalise related party transactions as well as the rights offer and disposal circulars.

Accelerate’s key focus areas for the 2025 financial year remain the ongoing disposals of non-core assets to further reduce debt, improve ICR and reduce LTV, as well as cost containment and revenue enhancement despite economic challenges and market volatility.

In addition, Accelerate will seek shareholders’ approval to execute related party settlement agreements.