Hyprop lifts dividend 9.9% on SA & Eastern Europe surge

• Dividend up 9.9% to 307.7c; DIPS 378.8c (+2.3%); property valuations rose R2.4bn across SA and Eastern Europe.
• SA: 7.2m monthly footfall, turnover +5.5%, trading density +6.8%; EE: vacancy 0.1%, turnover +6.6%, density +6.1%.
• Stronger balance sheet: LTV 33.6%; cash R1.2bn, undrawn facilities R2.5bn; FY26 DIPS growth guided at 10–12%

Introduction: Who is Hyprop?

Hyprop is a JSE and A2X-listed retail REIT with a c.R42bn portfolio spanning nine South African centres (Western Cape and Gauteng) and four Eastern European centres. The group focuses on dominant regional malls with active, on-the-ground asset management.

FY2025 Results Snapshot (year to 30 June 2025)

• Dividend: up 9.9% to 307.7c per share, supported by earnings growth and a higher payout ratio.
• Distributable income: up 7.5% to R1.51bn; DIPS 378.8c (+2.3%), beating June guidance (-1% to +2%).
• Valuations: SA and EE investment properties up R2.4bn in aggregate.
• Balance sheet: R1.2bn cash and R2.5bn undrawn facilities post a R808m equity raise; LTV improved to 33.6% (FY24: 36.4%).
• SA operations: average monthly footfall 7.2m; tenant turnover +5.5%; trading density +6.8%; vacancies 4.2% (Edgars and Pick n Pay rightsizing). Capex R506m.
• Leasing/tenant mix: first JD Sports in SA at Canal Walk; Lego, Anta, Napapijri at Somerset Mall; Omoda auto concept at The Glen; Workshop17 at Hyde Park; Checkers FreshX opened Aug 2025, lifting Hyde Park foot/vehicle counts around 10%.
• EE operations: strong momentum with turnover +6.6%, density +6.1%, vacancy 0.1%; selective refurbishments (food court upgrades, electronics anchor expansion, rooftop cinema launch).
• Energy & ESG: hybrid energy system at Rosebank Mall; phased HVAC upgrades (R410 refrigerant), potable water tanks across Gauteng, Western Cape to follow; 53,165 kl water saved in nine months; five centres achieved net-zero waste (GBCSA certification pending); recycling rate 77% (FY24: 68%); 1,130t organic waste diverted; R16.6m CSI spend.

Strategic moves — asset highlights

• Table Bay Mall (Big Bay): Now contributing for a full year; active re-merchandising to athleisure/experiential, driving turnover and lease-up momentum.
• Somerset Mall (Helderberg): Phase 2 expansion (+5,500m² to 75,500m²; 180→230 stores); luxury/athleisure wing opens Nov ’25; family entertainment/food court Jul ’26.
• Canal Walk (Century City): Landed SA’s first JD Sports; premium streetwear push and events strategy to lift trading density and dwell time.
• The Glen (JHB South): Omoda auto-in-retail concept installed; experiential anchor broadens mix, boosts cross-category spend and weekday traffic.
• Rosebank Mall (JHB): One of SA’s largest hybrid energy systems live; seamless backup + energy arbitrage lowers cost and improves resilience.
• CapeGate (Brackenfell): Achieved net-zero waste status (GBCSA certification pending); recycling rate elevated with ongoing tenant education and back-of-house upgrades.
• Woodlands (Pretoria): Phase 1 HVAC conversion to R410 underway; shift to air-cooled condensers saves water; net-zero waste achieved.
• Workshop17 @ Hyde Park Corner: Flexible offices embedded in-mall to capture professional spend, extend dwell, and deepen weekday footfall alongside FreshX uplift.

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“The sterling performance of our South African and Eastern European centres in FY2025 is testament to the strategic decisions we’ve taken over the past six years and the hard yards we’ve put into keeping our centres competitive, sustainable and relevant.” Morné Wilken, CEO

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“We’re pleased with the strong shareholder support for our recent capital raise. Funds will reduce debt in the short term and support asset-management initiatives, organic growth, additional solar PV, reinvestment across our operations and strategy-aligned acquisitions.”

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Way Forward

‍Execution stays tight: complete Somerset Mall expansion, recycle capital via Hyde Park transaction, keep EE growth compounding, and double-down on energy resilience and waste reduction.

Management guides FY2026 DIPS growth of 10 - 12%, targeting durable cash flows, selective growth and further balance sheet strength.

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