PRESS OFFICE

Hyprop increases its dividend by 9.9% as EE and SA portfolios perform strongly

Hyprop, the JSE and A2X-listed, retail-focused REIT with a R42 billion portfolio of dominant centres in South Africa (SA) and Eastern Europe (EE), delivered outstanding results for the year ended 30 June 2025. The Group increased its total dividend by 9.9% to 307.7 cents per share, driven by robust earnings growth from both regions and the increase in dividend payout ratio announced in its interim results in March 2025.

Distributable income increased by 7.5% to R1.51 billion compared to the same period last year. Distributable income per share (“DIPS”) grew by 2.3% to 378.8 cents, exceeding the updated guidance of -1% to 2% growth provided in June 2025 in the Group’s pre-close disclosure. EE delivered impressive growth with distributable income increasing by 24% in Euros and 20.5% in Rands (due to the rand strengthening), while operating income (before the straight line rental accrual) from SA in this period rose by 11%, underpinned by the full-year contribution of Table Bay Mall. The independent valuations of the SA and EE investment properties increased by R2.4 billion in aggregate, highlighting the strength and resilience of Hyprop’s portfolios.

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

At 30 June 2025, Hyprop held R1.2 billion of cash and R2.5 billion of undrawn bank facilities, after successfully raising R808 million from the market in June 2025, which was earmarked for the potential MAS transaction. The capital raise, improvement in property valuations and disposal of the Sub-Saharan African assets underpinned an improvement in the loan-to-value (LTV) ratio from 36.4% in FY2024 to 33.6% in FY2025.

“We are pleased with the strong support shown by shareholders for our recent capital raise. These funds will be used to reduce debt in the short term and to fund asset management initiatives, organic growth opportunities, additional solar PV projects, new investments within Hyprop’s existing operations, as well as acquisitions in line with our strategy.” As previously announced, Hyprop has agreed to sell 50% of its interest in Hyde Park Corner to a subsidiary of Millennium Equity Partners, with a put and call arrangement on the remaining 50% to be exercised two years from now. The transaction is progressing well, and the transfer is expected to occur in November 2025.

SA Portfolio

Average monthly foot count across the Group’s nine centres in South Africa (four in the Western Cape and five in Gauteng) was maintained at 7.2 million. Tenants’ turnover rose 5.5%, surpassing the 5.1% growth in FY2024, and trading density grew by 6.8%. Retail vacancies increased to 4.2%, primarily due to Edgars’ and Pick n Pay’s rightsizing. However, this also presents opportunities to welcome new brands to the tenant mix, aligning with our shoppers’ needs. Capital expenditure for the year was R506 million.

One of SA portfolio’s major projects, the Somerset Mall Phase 2 expansion project, retiling and bathroom upgrades (budgeted at R350 million), is progressing well and within budget. The project will add 5 500m², increasing the total lettable area to 75 500m² and expanding from 180 to 230 stores. The affordable luxury and athleisure section is scheduled to open at the end of November 2025 and the family entertainment and food court are set to launch at the end of July 2026.

The Group’s centres continue to attract sought-after brands, including South Africa’s first JD Sports store at Canal Walk and Lego, Anta (a Chinese athleisure brand), and Napapijri (a luxury Italian brand) at Somerset Mall. Innovations like Omoda, a motor dealership in a retail store space at The Glen, and Workshop 17 (flexible offices) at Hyde Park Corner, reflect Hyprop’s ability to respond to market trends. Following the year-end, Checkers FreshX opened in August 2025 and is already trading well. Since the launch of Checkers FreshX, Hyde Park Corner’s foot count and vehicle count have increased by 10%.

EE Portfolio

The financial performance of the four centres in the EE portfolio was excellent. Tenants’ turnover rose by 6.6%, exceeding inflation. Trading density increased by 6.1%, with only a slight 0.8% dip in foot count. Tenant demand for space remains robust, as evidenced by the low 0.1% vacancy rate over the past year.

All centres welcomed new tenants that will enhance shoppers’ experience. At City Center One West, the upgraded food court, featuring five new unique restaurants and a modern design, has become a vibrant hub for shoppers. At Skopje City Mall, an expanded Setec (a premium electronics store) was launched after a complex three-month project to reroute the service corridor and relocate six strategically chosen tenants to boost their trading density and performance. Post year-end, Skopje City Mall launched a Rooftop Open-Air Cinema in partnership with Cineplexx, the only cinema in North Macedonia. The innovative concept was very well received, with ticket sales exceeding expectations.

ESG

A key milestone this year was the installation of one of South Africa’s largest commercial hybrid energy systems at Rosebank Mall, which provides seamless backup power during outages and enables the centre to manage energy costs through energy arbitrage.

Woodlands and Clearwater Mall have begun the first of four phases to replace the outdated R22 air conditioning systems with eco-friendly R410 refrigerant systems. Woodlands is also benefitting from the conversion of water-cooled to air-cooled condensers, which saves water. Potable water tanks were installed at all Gauteng centres, ensuring a three-day back-up water supply. The Western Cape centres will follow in FY2026.

The AquaIntell training and monitoring programme within our Gauteng portfolio is ongoing and has achieved water savings of 53 165 kl over the nine months ended 31 August 2025, equivalent to the water held by 21 Olympic-sized swimming pools.

In the past year, five Gauteng centres (Canal Walk, CapeGate, Somerset Mall, The Glen, and Woodlands) proudly achieved net zero waste status and are now applying for GBCSA certification. The recycling rate across all SA centres improved to 77%, up from 68% in FY2024, and 1 130 tonnes of organic waste were successfully diverted from landfills.

The Hyprop Foundation and other CSI projects contributed a total of R16.6 million towards education and skills development, community upliftment and enterprise development initiatives.

Poised for further growth

Wilken says Hyprop is exceptionally well-positioned to capitalise on the significant momentum it has built up over the last few years.

“Despite a challenging global environment, we are confident in the strong prospects for our EE portfolio and the exciting opportunities ahead. In South Africa, improved electricity supply and a dynamic operating environment are driving positive momentum for both consumers and businesses. Hyprop remains focused on growth and continued value creation for all our stakeholders,” concludes Morné.

Looking ahead, Hyprop anticipates continued strong performance, with DIPS expected to grow by 10 to 12% in FY2026. The Group’s strategic focus and operational excellence underpin its confidence in delivering superior, sustainable returns for stakeholders.

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