Wrap Text
Pre-close operational update
HYPROP INVESTMENTS LIMITED
(Incorporated in the Republic of South Africa)
(Registration number 1987/005284/06)
JSE share code: HYP
ISIN: ZAE000190724
JSE bond issuer code: HYPI
(Approved as a REIT by the JSE)
("Hyprop" or "the Company" or "the Group")
PRE-CLOSE OPERATIONAL UPDATE
Following publication of Hyprop's interim results for the six months ended 31 December 2025 ("HY2026") on
10 March 2026, the Company is pleased to provide an operational update for the five months ended 31 May 2026 ("the
period").
INTRODUCTION
Hyprop is a retail-focused REIT that delivers sustainable value from its portfolios in South Africa ("SA") and Eastern
Europe ("EE"). We create spaces that connect people by owning, managing and redeveloping retail centres in prominent
mixed-use precincts strategically located in key economic nodes.
Hyprop continues to seek growth opportunities in an evolving retail sector, advancing its diversification strategy and
leveraging its proven expertise to deliver superior risk-adjusted total returns. The Group is accelerating expansion in its
preferred regions, such as the Western Cape in South Africa and Eastern Europe, while unlocking further value from its
Gauteng assets. Its proactive and prudent approach ensures its stakeholders benefit from long-term value creation.
SA PORTFOLIO
Hyprop owns nine premier retail centres in South Africa, four in the Western Cape and five in Gauteng. In February
2026, we strategically sold a 50% undivided share in Woodlands, unlocking capital for new growth opportunities and
reducing Gauteng concentration risk, while retaining a majority share to benefit from future upside.
Our SA retail centres continue to deliver improving operational performance and capture further market share. During
the period, tenants' turnover increased by 5.5%, while trading density grew by 4.4%. Foot count increased by 2.1%,
underscoring the ongoing appeal of our retail centres.
The retail vacancy rate remains exceptionally low at 3.3%, outpacing industry averages for regional and super-regional
centres. The reversion rate continues on a positive trajectory, increasing to a pleasing 9.8%, and the retail new deal
reversion rate reached 32.8%. We have also successfully reduced our retail month-to-month leases by 35% in terms of
GLA.
Cash collections from tenants rose to R1.7 billion from R1.6 billion in 2025, further reinforcing the cash-generative
nature and financial strength of our SA portfolio.
Key trading metrics are detailed below.
SA portfolio trading Total for
metrics Year Jan Feb Mar Apr May 5-month
period
2024 2 112 429 2 042 777 2 174 663 2 151 188 2 178 954 10 660 012
Tenants' turnover (R'000) 2025 2 246 434 2 083 134 2 313 880 2 329 745 2 422 781 11 395 975
2026 2 404 792 2 195 632 2 451 982 2 478 289 2 494 782 12 025 477
Variance % 2025 vs 2024 6.3% 2.0% 6.4% 8.3% 11.2% 6.9%
Variance % 2026 vs 2025 7.0% 5.4% 6.0% 6.4% 3.0% 5.5%
2024 3 309 3 209 3 395 3 362 3 412 3 338
Trading density (R) 2025 3 584 3 336 3 764 3 792 3 943 3 682
2026 3 822 3 494 3 927 3 965 4 010 3 843
Variance % 2025 vs 2024 8.3% 3.9% 10.9% 12.8% 15.6% 10.3%
Variance % 2026 vs 2025 6.6% 4.7% 4.3% 4.6% 1.7% 4.4%
2024 7 266 6 607 7 248 6 703 6 825 34 650
Foot count ('000) 2025 7 055 6 207 7 143 6 985 7 173 34 562
2026 7 363 6 318 7 274 7 050 7 271 35 275
Variance % 2025 vs 2024 -2.9% -6.1% -1.5% 4.2% 5.1% -0.3%
Variance % 2026 vs 2025 4.4% 1.8% 1.8% 0.9% 1.4% 2.1%
2024 1.3% 1.4% 1.4% 1.9% 1.9%
Retail vacancy (%) 2025 3.6% 3.2% 3.9% 4.1% 3.9%
2026 2.8% 2.8% 2.8% 3.3% 3.3%
2024 262 864 304 810 311 642 310 989 303 944 1 494 248
Collections (R'000) 2025 325 371 325 126 303 439 333 774 346 296 1 634 006
2026 327 516 346 951 327 923 402 818 302 269 1 707 478
Variance % 2025 vs 2024 23.8% 6.7% -2.6% 7.3% 13.9% 9.4%
Variance % 2026 vs 2025 0.7% 6.7% 8.1% 20.7% -12.7% 4.5%
2024 1 777 251 1 663 725 1 798 363 1 696 408 1 731 577 8 667 324
Vehicle count 2025 1 811 314 1 626 708 1 835 194 1 763 971 1 848 231 8 885 418
2026 1 890 550 1 660 476 1 872 197 1 840 760 1 938 282 9 202 265
Variance % 2025 vs 2024 1.9% -2.2% 2.0% 4.0% 6.7% 2.5%
Variance % 2026 vs 2025 4.4% 2.1% 2.0% 4.4% 4.9% 3.6%
Table Bay Mall's tenants' turnover, trading density, foot and vehicle counts are included in all periods, and retail vacancy
and collections are included from April 2024.
Western Cape
Canal Walk
Canal Walk (the Western Cape's only super-regional shopping centre) continued its growth trajectory, driven by strong
leasing momentum and high-profile store openings. Recent highlights include Anta (sportswear) and True Religion, both
with launches in April 2026. May saw the opening of Liverpool FC's first African store and the arrival of PEP Home,
diversifying the tenant mix and strengthening Canal Walk's status as a top shopping destination. Major store revamps
and relocations, including Cape Union Mart, Poetry, and Superga, were completed in March 2026.
Key projects include the installation of new parking systems, completed in March 2026, and the construction of the
Otter Bridge to improve access to/from the Century City precinct, planned for completion at the end of June 2026. The
Crystal Towers Bridge extension and the East and West Office Tower upgrades are scheduled for completion in
November 2026.
Somerset Mall
Following the opening of the retail portion of its Phase 2 expansion project in November 2025, Somerset Mall welcomed
new brands such as Anta, which opened in April 2026 and Truworths and Office London, which launched in May 2026.
The food and entertainment element of the Phase 2 project is progressing well. It will include a new food court and a
Freedom Interactive Park, which is set to open by the end of August 2026. The bathroom upgrade was completed in
April 2026.
In addition, Somerset Mall welcomed Studio 88, which opened in May 2026, while Jet and Panarottis were revamped
during the period.
CapeGate
CapeGate continues to enhance its retail offering through targeted upgrades and strategic tenant relocations. Cell C and
Telkom relocated and completed modern fit-outs that align with the latest brand standards. Spur and Bargain Books
underwent comprehensive refurbishments, while Ackermans was fully transformed into the first Addition (fashion
brand) flagship store. The Edgars redevelopment, which entails rightsizing the Edgars store, expanding Sportscene, and
introducing JD Sports and Freedom Adventure Park, is underway and set for completion in December 2026.
Table Bay Mall
Table Bay Mall maintained its strong growth trajectory, attracting a dynamic mix of retailers and executing strategic
upgrades. Recent highlights include the openings of Quench (water store), ESO Juice Bar, Big Joe Pies, Faithful to
Nature, SA Biltong Master, MiMi-Q (beauty and accessories), and Krumble (gourmet cookies), as well as the relocation
of The Store (fashion brand). The Checkers Fresh-X expansion, which starts in July 2026, and the transformation of
Entrance 2 into a vibrant restaurant and lifestyle cluster, will further enhance the centre's appeal. Tenant store upgrades,
such as Vodacom's completed store and Torga Optical's upcoming refurbishment, continue to elevate the customer
experience and reinforce Table Bay Mall's position as a key player in the region.
Gauteng
Hyde Park Corner
Hyde Park Corner welcomed Bootlegger Coffee, which opened in February 2026, and March 2026 saw the launch of
Marc's by Marc Jacobs Café, the first-ever permanent Marc Jacobs café and the first designer café on the African
continent. The addition of Scoin Shop and UNIQ in May 2026 further diversifies the centre's tenant mix. The second
phase of the Workshop 17 project will be completed and ready for occupation by 1 July 2026, resulting in the entire
North office tower being let to Workshop 17.
During the period, Hyde Park Corner commenced a parking upgrade project, which includes redesigning the egress and
ingress on the Woolworths side of the centre, improving access for larger vehicles, installing new parking systems, and
implementing a streamlined ticketing process, scheduled for completion at the end of August 2026. The energy project
detailed in the environmental section below is on track and we have increased the height of the carports on which the
solar panels will be mounted to around six meters, so this area can also serve as an events venue in the future and
generate additional revenue.
Rosebank Mall
Rosebank Mall has successfully reduced its vacancy rate from 2.0% to 1.3%. Recent store openings include FARO,
Wellness Warehouse, Lupis (jewellery and accessories), and Livo (premium local lifestyle brand), as well as additions
such as Nuage (dining concept) and Stouti (a men's streetwear brand) in the SOKO District. Refurbishments by
Swarovski (upgrade) and Total Sports (expansion) were completed during the period.
The Rosebank precinct infrastructure improvements, including the upgraded walkways and parking facilities, were
completed in February and March, respectively.
Clearwater Mall
Clearwater Mall welcomed new stores, Piatto and The Watch Boutique, which opened in May 2026. The centre's kiosk
collection was further diversified with new additions, Trumps Biltong, Go Tyme, and the innovative 3@1 concept
featuring DHL, Print to Go, and Photo Me services. The Foto Fame, Gadget Candy, and Swagg (printing services) kiosks
were refurbished in March 2026. Destinations by Fraser, Levingers, Lovisa, Anat, African Bank, Senqu, Huawei and
Pep Home upgraded their stores.
The centre successfully completed several projects, including a dedicated E-hailing zone, installation of the upper-level
parking systems and infrastructure, and additional ClearVu fences.
Woodlands
During the period, Woodlands enhanced its tenant mix with additions such as PnP Clothing, IV Bar, Spec Savers, Pringle,
Aldo, Destinations by Frasers, Waxit, Sedgars, Old School, and Cell C.
The passage widening project and reconfiguration of the area around Pick n Pay, which commenced in March 2026, is
progressing well and is on track for completion in November 2026. With key upgrades, including new tiling, lighting
and store facelifts, the project will unlock valuable new retail space, enhance the shopper experience, and drive increased
foot traffic. As part of the project, Clicks will relocate to a new store adjacent to Pick n Pay.
The Glen
The Glen added an Ai-CHA kiosk (an international ice cream and beverage brand) and is relocating and extending the
Dial-a-Bed store as part of the Value Co expansion project. Value Co will increase its footprint from 1,818 m² to 2,522
m², with the reopening planned for October 2026. Looking ahead, the anticipated launches of Tiger's Milk, Yokico and
Kingsley Heath will further strengthen the centre's tenant mix.
EE PORTFOLIO
The Group owns four retail centres in the capital cities of Bulgaria, North Macedonia and Croatia. In May 2026, we
announced the acquisition of Galleria Burgas, a prime shopping centre located on the east coast of Bulgaria, which is
still subject to regulatory approval.
Our EE retail centres continue to cement their status in the region. During the period, tenants' turnover increased by
4.4%, while trading density rose by 4.2%. Foot count increased by 5.0 %.
Demand for space remains exceptionally high, with a 0% vacancy rate in May 2026. The reversion rate was positive
3.4%, and the retail new deal reversion rate was 7.4%.
Cash collections from tenants for the period increased to €48 million, up from €46 million in the prior corresponding
period.
The key trading metrics are detailed below.
Total for
EE portfolio trading metrics Year Jan Feb Mar Apr May 5-month
period
2024 42 944 40 262 47 236 50 651 51 435 232 528
Tenants' turnover (€'000) 2025 43 826 40 379 48 139 51 967 56 790 241 100
2026 48 682 41 438 50 694 52 868 58 110 251 792
Variance % 2025 vs 2024 2.1% 0.3% 1.9% 2.6% 10.4% 3.7%
Variance % 2026 vs 2025 11.1% 2.6% 5.3% 1.7% 2.3% 4.4%
2024 257 242 280 300 304 277
Trading density (€) 2025 261 241 288 310 338 287
2026 288 245 301 316 348 300
Variance % 2025 vs 2024 1.6% -0.3% 2.7% 3.4% 11.1% 4.0%
Variance % 2026 vs 2025 10.3% 1.9% 4.5% 1.9% 2.9% 4.2%
2024 2 182 2 027 2 243 2 245 2 243 10 939
Foot count ('000) 2025 2 113 1 935 2 131 2 156 2 244 10 579
2026 2 210 2 059 2 270 2 222 2 345 11 106
Variance % 2025 vs 2024 -3.1% -4.5% -5.0% -4.0% 0.1% -3.3%
Variance % 2026 vs 2025 4.6% 6.4% 6.5% 3.1% 4.5% 5.0%
Vacancy (%) 2024 0.3% 0.2% 0.2% 0.2% 0.1% -
2025 0.2% 0.2% 0.1% 0.1% 0.1% -
2026 0.0% 0.0% 0.0% 0.0% 0.0% -
2024 7 798 7 642 8 728 8 458 8 040 40 666
Collections (€'000) 2025 9 390 10 625 8 977 8 644 8 782 46 419
2026 11 237 9 170 9 674 9 001 9 063 48 145
Variance % 2025 vs 2024 20.4% 39.0% 2.9% 2.2% 9.2% 14.1%
Variance % 2026 vs 2025 19.7% -13.7% 7.8% 4.1% 3.2% 3.7%
2024 367 240 340 767 379 186 377 807 362 427 1 827 427
Vehicle count 2025 368 328 343 317 341 424 365 350 373 328 1 791 747
2026 341 898 346 371 364 727 330 036 361 073 1 744 105
Variance % 2025 vs 2024 0.3% 0.7% -10.0% -3.3% 3.0% -2.0%
Variance % 2026 vs 2025 -7.2% 0.9% 6.8% -9.7% -3.3% -2.7%
City Center one West
City Center one West continues to strengthen its market position with strategic tenant upgrades and space optimisation.
Jeordie's (men's fashion brand) expanded into a new flagship store, and Shoetique opened in the former Jeordie's space.
Geox and Intimissimi (clothing store) successfully relocated, with Intimissimi further enhancing its presence by
launching IUMAN Intimissimi Uomo (men's wear). McDonald's completed its refurbishment and new food offerings,
Good Food and Purple Monkey, started trading during the period. Footwear and accessories brand Deichmann's store
revamp, the completion of a 9,000 m² retiling project in March 2026 and the planned bathroom upgrade project, due to
be completed at the end of October 2026, will further elevate the retail centre's appeal.
City Center one East
The highlight for this period was Sephora launching its first Croatian store at City Center one East in April 2026. It
attracted a record number of shoppers and media attention.
During the period, the FruitClub kiosk began trading, and Good Food and Purple Monkey were introduced as new food
court concepts. Dormeo Home rightsized and relocated, while Skechers upgraded to larger premises.
The centre's extension project has advanced, with the General Urban Plan (GUP) approval already secured and the
design and feasibility studies for an additional 13,000m² are underway.
Skopje City Mall
Skopje City Mall welcomed Bagabond (a leather goods store), while Skechers and Parfois (a fashion and accessories
brand) expanded their stores. Magnetik Gallery (multi-brand luxury store) rightsized and relocated its space.
Skopje City Mall has commenced a major redevelopment project for Inditex. The 12-month project will create expanded
flagship stores with the latest Inditex concepts for all its brands and enhance the centre's market position as the preferred
destination for the higher LSM consumer in Skopje.
The Mall
At The Mall, Adidas transitioned to a new franchisee, resulting in improved merchandising and turnover. New food
offerings (Cake Collection, which replaced Nedelya Pastry Shop), fashion brands Obuvki (a new concept) and the
addition of Storm further enhanced the tenant mix. Ina Essentials (organic cosmetic brand) launched its first flagship
store in a shopping centre. Deichmann, Opticlasa (eye care and vision products), and Juliany (watch and jewellery store)
completed refurbishments with the latest store formats. Fashion brand Reserved's full renovation is underway, with its
relaunch set for August 2026.
ENVIRONMENTAL
Energy
Hyprop continues to advance its energy management strategy, focused on delivering operational resilience and long-
term value. Significant progress was made in our solar-PV rollout, with The Glen's Phase-2 installation (3 205 kWp)
completed in June 2026 and CapeGate's 4 991 kWp project on track for completion in August 2026. At Hyde Park
Corner, our solar-PV (946 kWp) and battery energy storage system (BESS) (6 MWh) installation will be completed in
July 2026, supporting uninterrupted operations and cost efficiency.
The Canal Walk solar-PV project (7 665 kWp) and Somerset Mall's integrated solar-PV (5 040 kWp) and BESS (12
MWh) installations have secured key approvals, with tenders progressing as planned.
Integrating BESS with solar-PV is a critical step in derisking centres' operations, reducing grid dependency, managing
energy costs, and ensuring business continuity for tenants. These investments directly support Hyprop's ESG objectives,
help protect rental income during grid outages, and position our assets for long-term growth.
Water
Hyprop continues to prioritise the resilience and sustainability of its assets. Potable water storage projects are underway
at all four Western Cape centres, providing increased capacity to safeguard against regional supply risks. These
installations are targeted for completion by August 2026, reinforcing our commitment to operational continuity.
Our proactive approach to water management is delivering tangible results. Comprehensive monitoring and water-wise
training programs have now reached over 400 staff across our SA portfolio, supporting efficient consumption and
responsible stewardship. In parallel, our conversion from water-cooled to air-cooled HVAC systems is nearing
completion at Hyde Park Corner. The City of Cape Town has recognised CapeGate (4-star rating), Table Bay Mall (4-
star rating) and Somerset Mall (3-star rating) for their water-saving initiatives, underscoring Hyprop's leadership in
sustainability and operational excellence.
Waste
Further to the Level-2 Net Zero Waste Certification from the Green Building Council of South Africa for five of our SA
centres, we have formally registered Table Bay Mall's waste yard with the City of Cape Town Council. The facility is
currently operational and progressing in line with requirements to achieve Net Zero Waste Certification, which is
anticipated at the end of the 2026 calendar year.
Hyprop remains on track to meet the 2027 Net Zero Waste legislative deadline in the Western Cape.
BALANCE SHEET, CAPITAL AND CASH FLOW MANAGEMENT
The Group's liquidity remains exceptionally robust, underpinned by consistently strong cash collections from tenants
for the SA and EE portfolios of 101% and 105% of year-to-date billings, respectively.
At the end of May 2026, Hyprop held R1.7 billion in cash and had R2.0 billion in available bank facilities. The Group's
financial strength and disciplined capital management provide a solid foundation for future growth and our proactive
approach to funding remains a key strength.
Rand borrowings
During the period, we settled R490 million in maturing DCM bonds using existing cash and/or available revolving credit
facilities (RCFs) and successfully raised R580 million in a bond auction in April 2026, which was 5.4 times
oversubscribed. The auction cleared below the lower end of the price guidance for both the 3-year (R273 million raised
at a margin of 94bps above 3-month JIBAR) and the 5-year (R307 million raised at a margin of 111bps above 3-month
JIBAR) bonds, demonstrating strong investor demand and support.
Additionally, R750 million of term loans and RCFs due in August 2026 were refinanced for 3 years with a 43bps
reduction in margin. A further R250 million of a R500 million unlisted bond was settled, with the balance refinanced
for 2 years at a 35bps lower all-in-rate, Hyprop's first ZARONIA-denominated facility.
Euro borrowings
Balkan Retail refinanced €20 million of maturing RCFs, settled €15 million of a €50 million equity debt term loan, and
refinanced the remaining €35 million for 1.5 years at a 90bps lower margin. AP Retail (Bulgaria) has refinanced its
€72.5 million term loan, due in December 2026, for 7 years at a lower margin and €2.5 million of the European in-
country term loans were amortised.
These initiatives have lowered the Group's all-in cost of borrowings: Rand interest rates now average 8.5% (down from
8.6% in December 2025) and Euro interest rates 3.9% (down from 4.0% in December 2025).
Hyprop's interest rate risk management remains disciplined, with 79% of the interest rate exposure hedged and an
average hedge duration of 1.4 years at 31 May 2026. The majority (77%) of rand hedges comprise caps and collars, with
the balance in swaps.
UPDATE ON GALLERIA BURGAS TRANSACTION
In May 2026, the Group announced that it had concluded an agreement to acquire Galleria Burgas, a modern, recently
renovated shopping centre, located on the east coast of Bulgaria, from MAS PLC. The transaction aligns with our
strategy to increase exposure in Eastern Europe, a region we identified as offering superior risk-adjusted returns, and
leverages our proven expertise in managing retail assets in Bulgaria, as well as the country's macroeconomic tailwinds.
The transaction is subject to approval by the Bulgarian Commission for Protection of Competition, which is progressing,
and remains on track for the anticipated implementation date of 31 July 2026.
Fully funded by Hyprop's available cash from capital raised in 2025 and the proceeds from the sale of the 50% undivided
share in Woodlands, the acquisition will be earnings-enhancing and offers significant potential for further value creation
through our planned active asset management initiatives. Further details on the transaction, including financial effects
and acquisition yield, will be disclosed with the Group's annual financial results in September 2026, following the
anticipated implementation of the transaction.
CLOSING
Hyprop's robust financial position and steadily improving operational performance reflect the Group's clear strategic
direction, strong corporate governance, and a proven execution track record. Backed by a healthy balance sheet and a
highly competent management team, Hyprop is well-positioned to capitalise on market opportunities. With resilient and
prominent portfolios in both South Africa and Eastern Europe, the Group is on track to deliver growth in distributable
income per share for the year ending 30 June 2026 within the 10% to 12% guidance range provided in September 2025.
Shareholders should note that the guidance above is based on the assumptions stated in our FY2025 annual results, is
subject to change, certain assumptions may not materialise, plans may change, and unanticipated events and
circumstances may affect the Group's strategy or the actions it takes.
The guidance has not been reviewed or reported on by the Company's auditors.
A virtual presentation and Q&A session will be hosted by SBG Securities on Thursday, 25 June 2026, at 09:30 am SA
time. Please register here https://events.teams.microsoft.com/event/5d956004-ad23-4d85-8321-
2d93144dd99d@7369e6ec-faa6-42fa-bc0e-4f332da5b1db if you wish to join the presentation. A recording will be
available on Hyprop's website after the presentation.
Hyprop's annual results for the year ending 30 June 2026 are scheduled for release on 9 September 2026.
25 June 2026
Sponsor
Java Capital
Date: 25-06-2026 08:00:00
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