March 19 2026 21:30
JOHANNESBURG, SOUTH AFRICA
Hyprop Investments, a retail-focused real estate investment trust (Reit) listed on the JSE and A2X, delivered strong interim results for the six months ended 31 December 2025, reporting a 12.9% increase in distributable income. Its board declared an interim dividend of 119.0 cents per share, up 4.9% from the prior period and affirmed its full-year guidance of a 10 % to12% increase in distributable income per share.
Hyprop is one of SA’s older listed landlords which owns, manages and redevelops retail centres in prominent, mixed-use precincts strategically located in key economic nodes. It tends to own blue chip centres. It is expanding its presence into the Western Cape and Eastern Europe. In February 2026, Hyprop sold a 50% stake in Woodlands in Gauteng, as part of its objective to reduce its exposure in the province, recycle capital for new and organic growth opportunities and participate in further upside from the centre as the majority shareholder.
“Both our SA and Eastern European portfolios continue to deliver inflation-beating results, underscoring the success of our repositioning strategy. We are now seeing the benefits of the strategic steps we have taken since 2019. Key milestones include reducing the Group LTV to 31%, acquiring the four core EE centres, disposal of the sub-Saharan African portfolio, acquisition of Table Bay Mall, which is delivering significant growth, and the recent 50% sale of Woodlands, which has positioned us to pursue further earnings-enhancing and sustainable organic and new growth opportunities,” said CEO Morné Wilken.
Distributable income rose by 12.9% to R864m, driven by Hyprop’s focused strategy. Distributable income per share increased by 5.4% to 212.3 cents per share as the number of issued shares increased by 7%, following a successful capital raise in December 2025, which was multiple times oversubscribed. An interim dividend of 119.0 cents per share, which includes a 2.0 cent antecedent dividend, representing a 4.9% increase compared to the prior period.
Borrowings reduced to R13.8bn (from R14.7 bn in June 2025), and the Group was in a strong liquidity position at December 2025, with R949m of cash and R2.3bn in available bank facilities. The loan-to-value (LTV) ratio improved to 31.0% from 33.6% in June 2025 and will further decrease to 29.6% after the Woodlands transaction. Interest cover ratio strengthened to 3.0 times (June 2025:2.6 times). As much as R265m was re-invested in the portfolios during the period.
Trading density in SA rose by 7.5% in the six months ended 31 December 2025, significantly above the 4.3% increase in the same period in 2024, and tenants’ turnover rose by 5.0%, up from 4.8%. Foot count increased by 1.9%. The strong operational performance demonstrates the appeal of Hyprop’s retail centres, which are supported by a resilient LSM shopper base.
The retail vacancy rate reduced from 4.2% at 30 June 2025 to 3.1%, as most of the rightsizing of anchor tenants has been completed and the reclaimed space is being let to new tenants.
Particular highlights for Hyprop’s tenant base in this period were the opening of a flagship Incredible store and the first Hisense store in SA, both in Canal Walk; LEGO and Safari Collection as part of the Somerset Mall Phase 2 expansion, the much-anticipated opening of Checkers FreshX and PetShop Science, at the beginning of August 2025 (which had a positive impact on foot and vehicle counts) and a first-of-its-kind Maison Deux (luxury department store) at Hyde Park Corner; and the opening of the first Walmart store in Africa at Clearwater Mall in November 2025 (the centre’s foot count increased by 20.3% in that month).
Capex projects underway in SA during period include the Phase 2 expansion and retiling project at Somerset Mall, which is progressing well and scheduled to be completed in July 2026; Maison Deux store at Hyde Park Corner; solar-PV and energy projects at The Glen and Hyde Park Corner; new parking systems at Canal Walk and Clearwater Mall; and several tenant installations. There are more projects in the planning stage, including a Phase 3 expansion at Somerset Mall, driven by strong tenant demand.
The Eastern European portfolio continues to demonstrate resilience and improve its operational performance. In the six months ended 31 December 2025, tenants’ turnover increased by 3.8%, while trading density rose by 3.6%. Demand for space remains exceptionally high, with a 0.2% vacancy rate in December 2025.
The centres strengthened and balanced their tenant mix by adding unique brands and expanding others. These included an exciting new tenant for Skopje City Mall – Bagabond, a niche brand specialising in Italian leather bags and accessories, whose store is scheduled to open by March 2026. In City Center one East, Gligora Cheese & Deli ,the most awarded cheese producer in Croatia and dShop, the official fan shop of GNK Dinamo enhanced the offering. New tenants that have strengthened The mall’s appeal included ETAM, Office Shoes, ProCredit Bank, Late Café, Just Asia, McDonald’s and Miniso.
City Center one East and City Center one West both received General Urban Plan (GUP) approval from the City of Zagreb in September 2025. City Center one East’s expansion project is now in the final design phase, with the feasibility study currently underway.
Capital expenditure for the period was €2.0m. The largest project undertaken was the re-tiling of City Center One West.
The installation of solar-PVs at The Glen (3 178kWp) and CapeGate (4 991kWp) and a new battery energy storage system at Hyde Park Corner, has commenced. Hyprop is in the process of securing local authority approvals for the solar-PV plants at Canal Walk and Somerset Mall. It recently obtained approval to install solar-PV plants at City Center one East and City Center one West, in Croatia.
In SA, water tanks providing up to five days of backup potable water are planned for Somerset Mall, Table Bay Mall, CapeGate and Canal Walk, and will be ready by June 2026. At Somerset Mall, 25 waterless urinals and 49 Propelair low-flush-volume toilets have been installed as part of the bathroom upgrades.
The waste recycling rate for the SA portfolio in the six months to 31 December 2025 was 78%. In late November 2025, Hyprop achieved five net-zero-waste (NZW) certifications: for Canal Walk, CapeGate, Somerset Mall, The Glen and Woodlands.
Hyprop’s board raised its dividend payout ratio for the current financial year ending 30 June 2026 to 82.5% of distributable income from the SA and EE portfolios, from 80% previously, reflecting continued progress on strategic priorities.
“We remain focused on executing our strategy and driving long-term value for our stakeholders through prudent capital allocation, ongoing repositioning of the SA and EE portfolios, implementing sustainable solutions to reduce the impact of infrastructure challenges in SA and driving new and organic sustainable growth opportunities. With a strong balance sheet and robust demand for our retail spaces, Hyprop is well-positioned to continue delivering superior returns and sustained growth in the long term,” said CEO Morné Wilken.
alistair@propertyflash.co.za
