Hyprop Investments, the listed real estate investment trust (REIT), has reported growth of 14.5% year-on-year in its distributable income to R765-million for the six months ended December 31, 2024.

Distributable income per share grew by 14.4%, from 176.1 cents in HY2024 to 201.4 cents in HY2025.

An interim dividend was declared at 113.43 cents per share, marking a solid increase in the dividend payout ratio to 95% of distributable income from the South African portfolio, up from 90% previously.

Interest cover ratio improved to 2.6 times, indicating strong financial health.

The landlord of some of South Africa’s most well-known shopping sites, including Canal Walk, Capegate, Clearwater Mall, Hyde Park Corner, Rosebank Mall and Somerset mall said it is on track to meet the upper end of its distributable income guidance for the financial year ending 30 June 2025, with an anticipated increase of 4% to 7% in distributable income per share.

Hyprop’s solid performance is underpinned by a strong liquidity position with cash holdings of R807 million and available bank facilities of R1.1 billion as of 31 December 2024.

Additionally, the group’s Loan-to-Value (LTV) ratio remained stable at 36.3%, demonstrating a healthy balance sheet.

Hyprop’s South African (SA) portfolio showed positive growth, with tenant turnover up 4.9% and trading density rising by 4.4%.

Notable developments include the ongoing expansion of Somerset Mall, which remains on budget and on schedule, and the securing of Checkers as a new anchor tenant at Hyde Park Corner, with the store expected to open in July 2025.

Hyprop’s ongoing strategy includes continued portfolio repositioning, focusing on organic growth opportunities, and maintaining a robust balance sheet. The company will also focus on sustainable solutions to address infrastructure challenges, particularly in South Africa, it said.