Story audio is generated using AI
Property group Hyprop Investments has delivered double-digit distributable income per share growth, driven by strong operating results.On Wednesday, the group, which owns properties in South Africa and Eastern Europe, reported a 13.7% increase in distributable income to R1.7bn in the year to end-June. Distributable income per share was up 11.7% to 423c, at the upper end of its guidance.Net operating income rose 16.5% to R1.86bn, while HEPS rose almost 41% to 433.4c. The group generated R2.95bn in cash from operations.The group said its strategy of prudent capital allocation and asset recycling supported the performance.Recent highlights for the group include the sale of a 50% undivided share in Woodlands Boulevard for R825m, the implementation of the Galleria Burgas acquisition in July, expanding the group’s footprint in Bulgaria, and the completion of the Somerset Mall phase 2 retail and new food court expansion in November 2025 and August 2026, respectively.It also completed solar-PV installations at The Glen, Hyde Park Corner and CapeGate.Hyprop’s South African portfolio saw tenants’ turnover increase 4.9% to R29.8bn, with an average monthly foot count of 7.3-million. The group launched the first Walmart store in Africa at Clearwater Mall during the year.Its Eastern Europe portfolio reported tenant turnover of €659m, up 4.2%, while trading density grew 3.9% and retail vacancies remained low at 0.1%.The group said despite global economic volatility from geopolitical tensions, policy uncertainty, and evolving trade dynamics, South Africa’s medium-term outlook is improving, supported by structural reforms in energy and logistics, creating a more stable environment for investment.“Inflation and interest rate risks may present short-term headwinds, but are expected to abate in time and we remain confident that our dominant, experience-led retail centres will continue to trade well during these times,” it said.It added that Eastern Europe offers attractive risk-adjusted returns, supported by sound macroeconomics, rising wages and EU investment. Bulgaria’s euro adoption will further boost investment and integration, positioning the country for further growth.It said the prospects for its South African and Eastern European portfolios remain positive, underpinned by dominant assets and resilient tenant and shopper bases. Somerset Mall’s phase 3 and Zagreb’s City Center One East’s expansions will drive earnings.The group recently raised almost R740m in a bookbuild, the proceeds of which will be used to drive Eastern European expansion. “In addition to our organic growth pipeline, we continue to evaluate acquisition opportunities in both South Africa and Eastern Europe that meet our investment criteria and support our long-term growth strategy,” it said.Hyprop expects distributable income per share to increase 7%-9% for the 2027 financial year.Business Day
