South African tycoon Des de Beer’s Resilient posts $57.4-million profit in H1 2024

Omokolade Ajayi -

Key Points

  • Resilient REIT’s profit surged 75% to $57.4 million for H1 2024, defying economic challenges and ongoing construction impacts.
  • Revenue rose 7.4% to $99.14 million, driven by retail expansion and strategic portfolio management.
  • Total assets grew 9.28% to $2.06 billion, with equity up 10.85% to $1.24 billion, reflecting strong financial health and growth.

Resilient, a Sandton-based real estate investment trust (REIT) led by South African tycoon Des de Beer, posted stronger-than-expected financial results for the first half of 2024, with a total profit of $57.4 million, despite challenging economic conditions and ongoing construction activities at several of its shopping centers.

According to the interim financial statements for the six months ended June 30, 2024, the retail-focused REIT recorded a 75.04 percent increase in profit, rising from R588.59 million ($32.78 million) in the first half of 2023 to R1.03 billion ($57.39 million) in the corresponding period of 2024.

Retail expansion lifts Resilient’s revenue

Resilient’s strategic alignment of its shopping centers with consumer needs has paid off, resulting in significant earnings growth during the period. Revenue for the period rose by 7.4 percent to R1.78 billion ($99.14 million), compared to R1.66 billion ($92.3 million) in the same period last year. This underscores the REIT’s ability to generate higher income streams from its extensive portfolio, which includes the expansion of retail anchors like Dis-Chem and Clicks.

The company’s comprehensive income surged by 27.54 percent to R969.68 million ($54 million), reflecting its successful asset management in key regions. Despite economic pressures, retail sales grew by 2.9 percent, while cash from operations increased by 5.29 percent to R1.07 billion ($59.6 million), showcasing Resilient’s strong management and robust business model.

Resilient grows assets, Equity soars

Founded in 2002 by Des de Beer, Resilient REIT has established itself as a powerhouse in the real estate sector, boasting an expansive portfolio of 27 shopping centers with a combined gross lettable area of 1.2 million square meters. Under De Beer’s leadership, the company continues to solidify its status as a leading player in the South African market.

As a result of its impressive financial performance, Resilient’s total assets expanded by 9.28 percent to R36.99 billion ($2.06 billion) in H1 2024, up from R33.85 billion ($1.88 billion) in H1 2023. The company’s equity attributable to equity holders also increased significantly, climbing by 10.85 percent to R22.22 billion ($1.24 billion), further strengthening Resilient’s financial position and its ability to deliver value to shareholders.