Hyprop Investments has delivered a 7.5% increase in distributable income for the year, driven by double-digit growth in SA and Eastern Europe.
Distributable income grew to R1.51bn in the 12 months ended June, with distributable income per share at 378.8c from 370.4c a year ago, exceeding guidance.
The group’s total dividend for the year was up 9.9% to 307.7c per share.
In its SA portfolio — which includes Canal Walk and Table Bay Mall in Cape Town, and Clearwater Mall, Rosebank Mall and Hyde Park Corner in Johannesburg — tenants’ turnover increased 5.5% to R28.4bn, while trading density grew 6.8%.
During the year the group launched the new Checkers FreshX at Hyde Park Corner, and its Somerset Mall Phase 2 expansion is on track to be completed by July 2026.
In Eastern Europe, tenants’ turnover increased 6.6% to €633m and trading density grew 6.1%. Retail vacancies in the portfolio remain low at 0.1%. Its assets in Eastern Europe include City Center One Zagreb East and City Center One Zagreb West in Croatia, Skopje City Mall in Macedonia and The Mall in Sofia, Bulgaria.
The group’s net operating income was 22.9% higher at R1.6bn.
Hyprop said the global economy was facing slower growth driven by rising trade tensions and policy uncertainty. Inflation is expected to decline from recent highs, though core inflation is more persistent and risks remain from escalating trade barriers, conflicts and climate change.
In SA, the political landscape remains volatile and the economy is characterised by subdued growth, driven by persistent structural issues such as infrastructure bottlenecks, low investment and logistical challenges.
The Eastern European countries in which the group operates continue to grow, supported by EU demand, interest rate cuts and improved industrial output.
Metope Investment analyst Curwin Rittles said that Hyprop’s performance underscored the benefits of ongoing reinvestment across its SA and Eastern Europe portfolios.
“Management has done well in simplifying the business over the past 12 months and demonstrated its ability to not only raise capital, but also to recycle capital in SA to fund growth. With Eastern Europe offering favourable fundamentals, it is unsurprising that Hyprop is actively seeking expansion opportunities there,” Rittles said.
He said with Hyprop targeting distributable income per share growth of 10%-12% by the 2026 financial year and scope to lift its payout ratio, investors stood to benefit from potentially stronger income yields.
Hyprop said it would remain focused on driving new and organic growth opportunities in its focus areas and accelerating the repositioning of the SA and Eastern Europe portfolios to strengthen their dominance and grow market share.
The group would continue its annual reviews of the portfolios to ensure it retained the right properties, or recycle capital where it deemed appropriate, it said.
Hyprop said the group was well-positioned to capitalise on the momentum it had built over the past few years and anticipated an increase of 10%-12% in distributable income per share for the 2026 financial year.
Update: September 16 2025
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