Hyprop Investments, the retail focused REIT with an approximate R40 billion portfolio of mixed-use precincts, has published its consolidated audited results for the year ended 30 June 2024, showcasing strong financial performance and significant progress in strategic priorities.
The group, which manages a portfolio of prominent retail properties including Canal Walk, Clearwater Mall, Hyde Park Corner, and Somerset Mall, has reported distributable income of R1.41 billion, outperforming previous guidance.
It reported distributable income of 370.4 cents per share, boosted by robust operational performance in both South Africa (SA) and Eastern Europe (EE). This result exceeds prior guidance, reflecting the resilience of the group's retail assets despite challenging market conditions, the group said.
A final dividend of 280 cents per share has been declared, in line with Hyprop's dividend policy.
Hyprop said it is close to exiting its SSA portfolio, having signed binding sale agreements in August 2024. The group expects to finalise the sale in the near term, marking a key milestone in its strategic repositioning efforts.
The group's balance sheet remains stable with a loan-to-value (LTV) ratio of 36.4%, despite the acquisition of Table Bay Mall. Liquidity remains robust, with R803 million in cash and R2 billion in available bank facilities.
Additionally, the group has reduced euro borrowings by R600 million, in line with its debt reduction strategy.
Hyprop’s focus on repositioning its SA and EE portfolios continues to bear fruit. In South Africa, tenant turnover increased by 5.1%, with an overall reversion rate improving to 5.8%.
Retail vacancy in SA remains low at 1.8%, while in Eastern Europe, tenant turnover jumped by 10%, and vacancies dropped to just 0.1%.
The group said it has made significant strides in its environmental sustainability efforts, reducing electricity purchases by 33% and water consumption by 12% since June 2019.
In addition, the Hyprop Foundation contributed R4.7 million to various corporate social initiatives.
Hyprop recorded a 6.1% increase in net operating income to R1.3 billion. Despite these gains, headline earnings per share dropped 24% to 299.5 cents, primarily due to higher finance costs and foreign exchange losses.
Basic earnings per share also declined by 36.5% to 274.3 cents. However, the group's net asset value per share remains solid at R60.32.
Hyprop said it remains optimistic about its future, despite global economic challenges. The group is focused on six strategic priorities, including infrastructure sustainability, portfolio repositioning, asset recycling, and balance sheet strengthening. It expects distributable income per share to grow by 4% to 7% in FY2025.
With its strong balance sheet, continued focus on sustainable practices, and prudent capital allocation, Hyprop is well-positioned for further growth, creating long-term value for its stakeholders.
Shares in the group are up nearly 28% over the past year, to R42.00.
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