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Hyprop has again presented a solid set of results, maintaining distribution and capital growth well above the sector average.
Hyprop declared a dividend of 280,3 cents per share for the six months ended 30 June 2015, an increase of 16,3% on the corresponding period in 2014.
The total distribution for the year of 543 cents per share is 15,0% higher than the prior year.
Total revenue and distributable earnings from investment property increased by 11,9% and 14,5%, respectively, benefiting from increased income from
Rosebank Mall, the inclusion of income from Somerset Mall (acquired 1 October 2013) for the full year and tight control of operating expenses. Like-for-
like revenue and distributable earnings from investment property increased by 6,5% and 8,1%, respectively.
Rosebank Mall was transferred from development property to investment property on 1 July 2014. The majority of incremental income from the
redevelopment was earned from 1 October 2014.
The property cost-to-income ratio reduced to 33,6% (2014: 34,4%). The total cost-to-income ratio at fund level reduced to 36,0% (2014: 37,3%).
The 3,9% increase in net interest costs for the year was limited by applying the proceeds of non-core asset sales (Stoneridge, and CapeGate Value and
Lifestyle Centres) to repaying debt.
Total arrears at 30 June 2015 were R19,4 million (2014: R19,2 million). This constitutes 0,6% (2014: 0,5%) of rental income. The corresponding allowance for
doubtful debts was R10,7 million (2014: R8,8 million).
Property portfolio
Value per
Value attributable to Hyprop rentable area
Rentable area 30 June 2015
30 June 2014
30 June 2015
Business segment
m
2
R000
R000
R/m
2
Canal Walk (80%)
156 689 6 732 800
6 064 000
53 711
Clearwater Mall
86 081
3 944 000
3 473 000
45 817
Rosebank Mall
80 712
2 495 000
1 849 000
30 912
Somerset Mall
66 354 2 450 000
2 252 000
36 923
The Glen (75,15%)
79 665
2 329 830
2 059 269
38 913
Woodlands Boulevard
71 659 2 296 000
2 196 000
32 041
Hyde Park Corner
38 117
2 009 000
1 769 000
52 706
CapeGate
63 700
1 534 000
1
1 738 000
24 082
Shopping centres
642 977 23 790 630 21 400 269
40 816
Atterbury Value Mart
47 785
1 112 000
1 105 000
23 271
Willowbridge
4
42 378
622 000
594 000
14 677
Somerset Value Mart
12 546
193 000
4
185 000
15 383
Stoneridge
2
(90%)
432 000
Value centres
102 709
1 927 000
2 316 000
18 762
Total retail
745 686 25 717 630 23 716 269
37 779
Standalone offices
3
34 386
508 775
457 000
14 796
Investment property
780 072 26 226 405
24 173 269
36 766
Investment in sub-Saharan Africa
(excluding SA)
2 339 121
2 220 721
780 072 28 565 526
26 393 990
1
Excludes CapeGate Value and Lifestyle centres – sold during the 2015 financial year
2
Sold during the 2015 financial year
3
Includes Glenwood, Glenfield and Lakefield – held for sale
4
Held for sale
Investment property was independently valued at 30 June 2015 at R26,2 billion (2014: R24,2 billion), an increase of 12,1% (excluding the effect of disposing
of Stoneridge and CapeGate Lifestyle). The higher value was primarily due to income growth, as well as a 34,9% increase in the valuation of Rosebank
Mall after its redevelopment.
13
Hyprop Investments Limited
Integrated Report 2015