Hyprop trading update: Strong growth in SA and Eastern Europe

Key topics:Strong growth in SA and Eastern Europe portfoliosImproved tenant turnover, trading density, and footfallESG initiatives reduce water, waste, and boost energy independence.Sign up for your early morning brew of the BizNews Insider to keep you up to speed with the content that matters. The newsletter will land in your inbox at 5:30am weekdays. Register here.Support South Africa’s bastion of independent journalism, offering balanced insights on investments, business, and the political economy, by joining BizNews Premium. Register here.If you prefer WhatsApp for updates, sign up to the BizNews channel here..Hyprop Investments Limited has released a robust pre-interims operational update for the four months ended 31 October 2025, reaffirming its growth trajectory despite challenging economic conditions. The retail-focused REIT, which owns premier shopping centres in SA and Eastern Europe, reported solid improvements in tenant turnover, trading density, and foot count, signalling resilience in consumer spending within its catchment areas.The group maintained its upbeat guidance for the full year ending 30 June 2026, which targets distributable income per share growth of 10% to 12%. This confidence is underpinned by strategic asset management and a healthy balance sheet..South African portfolio defies the odds .In a tough local economic environment where discretionary income is under pressure — partly due to the rise of online gambling — Hyprop’s South African portfolio delivered impressive results. Tenant turnover grew 5.3% and trading density 8.5% year-on-year. Notably, foot count ticked up by 1.9%, a sign Hyprop says that a strategy of focusing on "shopper quality" and dwell time is paying off.Vacancy rates in the SA portfolio improved significantly, dropping from 4.2% in June to 3.2% at the end of October. This reduction was driven by successful repositioning initiatives and robust leasing activity, with a new deal reversion rate hitting a striking 32.8%.Key operational highlights included the launch of Africa’s first Walmart-branded store at Clearwater Mall, which drew massive crowds, and the introduction of new international brands such as Oakley, as well as vast improvements at flagship centres like Canal Walk and Somerset Mall..Eastern Europe continues to perform .Hyprop’s Eastern European portfolio — shopping centres in Croatia, Bulgaria and North Macedonia — remains a star performer. Tenant turnover increased 2.9% and trading density 3.1%, broadly in line with inflation. The portfolio boasts a remarkable zero 0vacancy rate, reflecting exceptionally high demand for space in these growing economies..Green and lean .Hyprop continues to double down on its ESG initiatives. The group reduced water consumption by 20% in October and has achieved net-zero waste certification for five of its major SA malls. Energy independence is also a priority, with significant solar PV projects approved or underway at CapeGate, The Glen, and Canal Walk..Strong financial position .Liquidity remains robust, with the group holding R873 million in cash and R2.3 billion in available facilities. Hyprop’s loan-to-value (LTV) ratio sits at 34.3%, with credit rating agency GCR affirming its stable outlook.With the disposal of a 50% stake in Hyde Park Corner set to conclude early in 2026 and further strategic disposals in the pipeline, Hyprop appears well-positioned to recycle capital effectively while delivering sustainable returns to shareholders.The group will release its interim results on 10 March 2026.

Hyprop trading update: Strong growth in SA and Eastern Europe

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