Hyprop is on track to meet the upper end of its guidance after tenant turnover at its shopping malls in South Africa and Eastern Europe rose ahead of inflation, highlighting resilient trading conditions across its portfolio.
The group said it remains on track for the 2026 financial year, expecting distributable income per share to grow 10%-12% as vacancies across its malls decrease and trading densities go up, according to its results for the six months to end-December.
“We are confident in the outlook for our portfolios in South Africa and Eastern Europe, driven by strong organic growth opportunities, including the Somerset Mall phase 3 expansion and extensions at our Croatia centres, which are expected to enhance earnings,” the group said.
Distributable income per share rose to 212.3c in the first half of 2026, while the group declared a total interim dividend of 119c per share.
The group reported positive rental reversions of 7.6% in South Africa, while vacancies remained at 0.2% in Eastern Europe and fell to 3.1% locally. It also opened a new Checkers FreshX at Hyde Park Corner and launched the first Walmart store in Africa at Clearwater Mall.
Hyprop closed the period with a cash position of R949m and R2.3bn in available bank facilities, boosted by R400m raised in December. Its loan-to-value ratio improved to 31% from 33.6%. Distributable income climbed to R864m, while net asset value per share rose to R64.43 from R61.49.
The first section of Somerset Mall phase 2 opened in November 2025, adding retail and leisure space, with full completion on track for July 2026.
In addition, sustainability initiatives are also progressing: the group’s water-saving programme cut consumption by 7%, while solar photovoltaic installations at The Glen and Cape Gate are under way. A new battery storage system has been installed at Hyde Park Corner, while Rosebank Mall’s dual-fuel generator and battery storage are delivering expected energy savings.
“We are actively pursuing new acquisitions in South Africa and Eastern Europe. With our strong portfolios, proven track record and solid balance sheet, we are well positioned to seize opportunities from global uncertainty and drive growth through our five strategic initiatives,” the group said.
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.