Morné Wilken
Hyprop
CEO
Hyprop Investments reported notable growth for the year ending December 31, 2024, with a 14.5% increase in distributable income to R765 million and a 14.4% rise in distributable income per share to 201.4 cents. CEO Morné Wilken attributes this success to “the transformative strategic priorities outlined in 2018,” highlighting their portfolios’ improved trading metrics and shoppers’ resilience and loyalty amidst challenging economic conditions. “Our confidence is based on the fact that our South Africa and Eastern Europe centres are located in key economic nodes and supported by management teams with strong retail property expertise,” Wilken noted.
In South Africa, Hyprop saw positive trading metrics, although vacancies increased slightly to 2.4%, primarily due to optimizing store sizes and enhancing the tenant mix. The South African portfolio recorded a 4.9% rise in tenants’ turnover and a 4.4% increase in trading density compared to last year. Significant developments include the Somerset Mall expansion, satellite office developments near CapeGate, and new retail concepts at Canal Walk, such as JD Sports and Shift Espresso Bar. Rosebank Mall has also introduced new ideas and enhanced its facilities, while Clearwater Mall, Woodlands, and The Glen have opened several new stores.
South Africa’s distributable income grew to R454 million over the six months. Excluding Table Bay Mall, rental and lease income surged 4%, and total revenue grew by 4.7%. Utility costs were reduced due to additional solar plants and less load shedding, with net property income increasing by 18.6%.
The Eastern European portfolio achieved an 8.8% increase in tenants’ turnover and a 7.1% rise in trading density, maintaining a low % vacancy rate of 0.2%. Distributable income from this segment reached R308 million, a 34% boost from the previous year, supported by revenue growth of 11% and wage-driven property expense increases of 9%.
Following selling its sub-Saharan Africa portfolio to Lango Real Estate, Hyprop was released from all related financial commitments. Their liquidity remains strong with R807 million cash and R1.1 billion in available bank facilities. The loan-to-value ratio is 36.3%, with impressive cash collection rates of 99.8% from tenants.
Hyprop’s interim dividend is set at 113.43 cents per share, reflecting 95% of the South African portfolio’s distributable income. The board also upped the total annual distribution to 80% of distributable income from South Africa and Eastern Europe. Wilken concludes that the management will continue focusing on key strategic initiatives, including growth opportunities, asset repositioning, sustainability, and balance sheet strength.