Retail property group Hyprop has reported a 14% rise in distributable income, boosted by a 34% jump in profit from its East European portfolio, which reached R308m, despite rand strength causing a slight dip in earnings.
The landlord benefited from strong consumer spending and an untapped market for international brands in the European region, reflected in an 8.8% rise in tenant turnover and 7.1% growth in trading density, said the group in its interim results to end-December on Thursday.
Its SA operations saw operating income rise 19% to R830m, supported by the addition of Table Bay Mall in the Western Cape two years ago.
Profit was partially offset by higher interest costs due to the full debt funding of the Table Bay Mall purchase.
The owner of Rosebank Mall declared an interim dividend of 113.43c per share, after skipping the payout last year due to heightened risk. Distributable income per share increased from 176.1c to 201.4c.
The group paused its dividend payout last year due to risks from Nigeria’s currency devaluation affecting Ikeja City Mall tenants, political uncertainty about the SA elections and the exit of Pick n Pay, a major anchor tenant, in some malls.
At the end of this reporting period the company held R807m in cash and R1.1bn available in undrawn bank facilities. After the recent sale of its Sub-Saharan Africa portfolio to Lango Real Estate in exchange for shares, the company has been relieved of all guarantees and commitments tied to the rest of Africa-related debt, the group said.
“Our confidence is based on the fact that our centres in SA and Eastern Europe are located in key economic nodes and supported by our management teams who have strong retail property expertise,” said Hyprop CEO Morné Wilken.
The group reported a 4.9% increase in turnover from its SA tenants, with trading density up 4.4% and a positive 4.4% rent reversion rate. The ongoing expansion at Somerset Mall, which began in 2021, was on track and within budget. Checkers had been secured as the new anchor tenant at Hyde Park Corner, with the store set to open in July 2025, Hyprop said.
The Canal Walk owner reported a stable loan-to-value (LTV) ratio of 36.3%, below the market average of 40%, and an interest cover ratio of 2.6 times, outperforming the market average of 2.3 times. Cash collections from tenants in the SA and East European portfolios both came in at about 100%.
“The solid performance for the period is a result of the transformative strategic priorities outlined in 2018. The improved trading metrics of our portfolios affirm our centres’ relevance in their respective markets, coupled with our shoppers’ loyalty and resilience during the challenging economic times,” Wilken said.
The SA portfolio saw distributable income grow to R454m during the period. Rental and lease income was up 4% and total revenue increased 4.7%, excluding Table Bay. Utility costs were lower thanks to less load-shedding and the addition of new solar plants at Woodlands, Clearwater and Table Bay. Net property income also jumped 18.6% in the first half of the 2025 financial year, excluding Table Bay, the group said.
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