Hyprop Investments reported stronger trading across its South African and Eastern European retail portfolios for the year ended June 30, 2026, lifting distributable income by 13.7% to R1.72bn.
Total dividends increased by 14.4% to 351.9 cents per share.
Tenant turnover in Hyprop’s South African portfolio rose 5.9% to R29.8bn, while trading density increased by 5.5%. The company attributed the performance to strategic investments and repositioning initiatives at its retail centres.
At Hyde Park Corner, tenant turnover grew by 12.9%, while total footfall increased by 5.5% to 3.5 million. The centre introduced Checkers FreshX and Maison Deux, which includes a Marc’s by Marc Jacobs Café. Major upgrades to Charles Greig, including a Rolex shop-in-shop, were also completed.
Several new tenants opened at Clearwater Mall, including what Hyprop described as Africa’s first Walmart outlet. After year-end, Rosebank Mall launched Urban Playground, while Woolworths is revamping its store, with completion planned for March 2027.
In the Western Cape, Hyprop completed a R324m expansion at Somerset Mall, adding 5 300 square metres of retail space focused on athleisure and affordable luxury, as well as a new food court.
Tenant turnover at Table Bay Mall increased by 10%, while trading density rose by 8.8%.
Eastern European portfolio
In Eastern Europe, tenant turnover increased by 4.2% to €659m. Trading density rose by 3.9%, while spending per head increased by 3.8%.
At City Center one East, Sephora opened its first Croatian store. The centre also attracted new brands, including the first Ina Essentials flagship store and a monobrand Xiaomi store.
Hyprop plans to add 14 746 square metres to the Croatian centre to increase its capacity and meet retailers’ demand for space.
Financial position and growth
Hyprop’s retail property portfolio was valued at R44bn. Distributable income per share rose by 11.7%.
The group ended the year with R1.7bn in cash and R2.1bn in available facilities. It raised R400m in new capital during the year, with a further R739m secured after year-end.
“This strong set of results is the culmination of our focused strategy and ability to execute on our strategic priorities. Both our South Africa and Eastern European portfolios delivered robust operational performance and our financial position puts us firmly on the front foot to capitalise on growth opportunities,” said Hyprop CEO Morné Wilken.
During the period, Hyprop sold a 50% undivided share in Woodlands Boulevard for R825m. The transaction reduced the group’s exposure to Gauteng and enabled it to recycle capital into new and organic growth opportunities while retaining a majority share in the centre.
Hyprop also acquired Galleria Burgas in Bulgaria. The transaction was announced in May 2026 at an agreed gross purchase price of €122.2m before adjustments.
The company increased its total installed solar photovoltaic capacity to 22 921 kWp, from 18 773 kWp a year earlier.
Hyprop said its water-management initiatives had reduced average daily water consumption by 16% from the baseline. Seven South African centres achieved net-zero-waste certification from the Green Building Council of South Africa.
Poised for future growth
Management’s strategic priorities for 2027 and beyond are to ensure the business is future-ready, diversify its assets and geographical focus, develop the required capabilities and skills, and maintain a healthy balance sheet.
“With our strong balance sheet, robust liquidity, a clear track record of value creation and dominant assets, as well as resilient tenant and shopper bases, Hyprop is poised to seize the right new and organic growth opportunities in South Africa and Eastern Europe,” Wilken said.
THE NATIONAL