Hyprop Investments has announced a solid set of interim results for the six months ending 31 December 2025, demonstrating resilient retail performance across its South African portfolio and consistent growth in Eastern Europe.

Speaking during the company’s interim results presentation, Morné Wilken, Chief Executive Officer of Hyprop Investments, stated that the group continues to benefit from the strategic repositioning undertaken in recent years, which has strengthened its dominant retail assets and enhanced its balance sheet flexibility.

“We have made good progress against our strategic priorities and remain on track to meet the upper end of the guidance previously communicated to the market,” Wilken said.

The group’s distributable income rose by 12.9% to R864 million for the six-month period, while distributable income per share (DIPS) increased by 5.4% to 212 cents per share. The growth in distributable income reflects improved operational performance across the portfolio, as well as the effects of capital raised during 2025.

Hyprop’s board announced an interim dividend of 117 cents per share, based on 95% of distributable income from the South African portfolio, along with an antecedent dividend of two cents per share.

The total dividend of 119 cents per share represents a 4.9% increase compared with the previous interim dividend.

The company also reported a robust liquidity position, with R949 million in cash and R2.3 billion in available bank facilities at the end of December.

Strategic capital recycling
One of the key corporate developments during the period was the sale of a 50% undivided share in Woodlands Boulevard shopping centre. This transaction, Wilken said, aligns with the group’s capital recycling strategy.

The transaction helps Hyprop lower its asset risk while freeing up capital for new growth opportunities. Simultaneously, the company maintains a majority stake in the mall and continues to benefit from future expansion in the surrounding catchment area.

“All conditions precedent have been met, and we expect the transfer to occur towards the end of March or early April,” Wilken confirmed.
Proceeds from the transaction are expected to further strengthen the balance sheet, with the group’s loan-to-value ratio projected to fall below 30% after completion.

The group has also made progress in securing new investment opportunities in Eastern Europe, where two potential transactions are already well advanced.

Strong trading performance in South Africa
Operational performance across Hyprop’s South African retail portfolio remained strong during the reporting period.

According to Wayne Abegglen, Chief Operating Officer for South Africa, the portfolio continues to benefit from the group’s long-term repositioning strategy and the strength of its dominant regional shopping centres.

“Hyprop’s South African portfolio continues to benefit from its repositioning strategy, with key trading metrics exceeding inflation,” Abegglen said.

The South African portfolio remains central to the business, making up 68% of Hyprop’s investment property value, 58% of distributable income, and 78% of total gross lettable area.

Across the portfolio, tenant turnover increased by 5%, while trading density grew by 7.5%, considerably exceeding the previous year’s growth rate. Retail vacancies also decreased, dropping from 4.1% to 3.1% during the period.

Footfall continued to increase, with total visits across the portfolio surpassing 45.8 million, resulting in tenant turnover exceeding R15 billion over the six-month period.

Several centres recorded particularly strong trading performance.
Table Bay Mall reported turnover growth of 12% and trading density growth of 10.5%.

Hyde Park Corner delivered turnover growth of 11.5%, with density increasing 7.2%.

Somerset Mall saw turnover increase 5.4%, while trading density rose 9.1%.

Canal Walk, the group’s flagship super-regional centre, recorded turnover growth of 4.8% and trading density growth of 6.9%.
Positive rental reversions of 7.6% were realised across the South African portfolio, reflecting strong tenant demand for space in prominent centres.

Anchor tenant repositioning
Hyprop continues to invest in repositioning its centres and optimising the anchor-tenant mix.

At Hyde Park Corner, the former Pick’n Pay space has been replaced by a new Checkers FreshX store, which is already trading in line with expectations and has shown a clear increase in footfall and vehicle traffic.

Meanwhile, Clearwater Mall recently opened South Africa’s first Walmart store, following the conversion of the former Game anchor space. The group is exploring additional opportunities to convert similar spaces elsewhere in the portfolio.

Hyprop has also reached agreements with Woolworths to upgrade its stores at Rosebank Mall and Woodlands Boulevard, while most Edgars stores across the portfolio have now been right-sized to enhance operational efficiency.

However, Wilken observed that progress on repositioning Pick n Pay stores across the portfolio has been slower than expected.

The development pipeline is gaining momentum.
Hyprop’s development pipeline continues to prioritise yield-enhancing projects that bolster the long-term competitiveness of its centres.

The phase two expansion at Somerset Mall, which opened partially in November, will be completed in July 2026 and will include new retail space, an upgraded food court, and entertainment options.

Planning is also underway for phase three, a further 14,500 m² expansion that will raise the mall’s total size to approximately 90,000 m².

Wilken said the development is expected to deliver an initial yield of over 10% and generate development profits upon completion.

In Eastern Europe, Hyprop is progressing with plans to extend City Centre One East in Zagreb, adding around 14,000 m² of new retail space. The development will be built on an existing car park and is designed to minimise disruption to current mall operations.

European portfolio remains resilient
Hyprop’s European portfolio also performed well during the reporting period.

According to Yvette van der Merwe, Chief Operating Officer of Hyprop Europe, the retail environment across Central and Southeastern Europe has stabilised following the inflationary pressures experienced in recent years.

“Inflation across most Central and South Eastern European countries has stabilised between 2.5% and 3.5%, broadly aligning with the European Union’s target range,” she explained.

Across the European portfolio, tenant turnover increased by 3.8%, while trading density grew by 3.6%.

Occupancy levels stay exceptionally high, with vacancies at just 0.2%.

The portfolio continues to benefit from its leading regional shopping centres, which remain appealing to international brands and major retailers.

Balance sheet strength and disciplined capital management
From a financial perspective, Hyprop showed ongoing improvements in its balance sheet.

Total borrowings decreased from R14.7 billion to R13.8 billion, while the group’s loan-to-value ratio dropped to 31%.

Net interest costs also fell due to reduced borrowings and declining interest rates, while the group’s interest cover ratio improved to three times.

Chief Financial Officer Brett Till stated that the group remains highly cash-generative, with operating cash flows exceeding distributable income during the period.

“Cash generated from operations for the period was R1.4 billion, leaving R903 million available after interest and tax payments,” Till said.

This exceeds the distributable income of R864 million for the period.

Outlook
Looking ahead, Wilken stated that Hyprop is well placed to pursue both organic and acquisitive growth opportunities.

The group will maintain investment in solar energy, water resilience, and other sustainability initiatives across its portfolio, while also progressing development projects and tenant repositioning programmes.

“In recent years, we have repositioned Hyprop, and now we are on the front foot to grow the business,” Wilken concluded.