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Condensed consolidated interim results for the six months ended 31 December 2025 ("HY2026")
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")
Condensed Consolidated Interim Results
for the six months ended 31 December 2025 ("HY2026")
Hyprop reports robust interim results,
is on track to meet the upper end of guidance for FY2026 and well positioned for growth
HEADLINES
Focused strategy delivers 12.9% increase
in distributable income and 4.9% growth in
interim dividend per share
- Distributable income increased by 12.9% from the prior period to R864 million
- Despite the additional shares issued, distributable income per share ("DIPS") increased 5.4% from
201.4 cents in HY2025 to 212.3 cents in HY2026
- Declared a total interim dividend of 119.0 cents per share, up 4.9%
- On track to meet the upper end of guidance of 10 - 12% increase in DIPS
for FY2026
- FY2026 full year dividend payout ratio will increase to 82.5% from 80.0%
Benefits of the repositioning strategy continue as growth in trading metrics exceeds inflation
SOUTH AFRICA ("SA")
PORTFOLIO
- Tenants' turnover increased by 5.0%
- Trading density up 7.5%
- Retail vacancies reduced from 4.2% to 3.1%
- Positive rent reversions of 7.6%
- Opened a new Checkers FreshX at Hyde Park Corner
and the first Walmart store in Africa at Clearwater Mall
- First section of Somerset Mall's Phase 2 expansion
opened in November 2025 and the project is on track
to be completed in July 2026
EASTERN EUROPE ("EE")
PORTFOLIO
- Tenants' turnover increased by 3.8%
- Trading density up 3.6%
- Retail vacancies remain low
at 0.2%
- City Center one East and City Center
one West secured extension rights
and the design and feasibility study
started for City Center one East
ESG INITIATIVES DRIVE OPERATIONAL
EFFICIENCIES AND POSITIVE IMPACT
- Phase 2 of solar-PV installation at The
Glen (3 178kWp) is underway, as well as the
initial phase at CapeGate (4 991kWp)
- Installation of the new battery energy storage
system at Hyde Park Corner has commenced
- Rosebank Mall dual-fuel generator and
battery storage system's energy savings are
in line with expectations
- The water-saving training and monitoring
programme has achieved total savings of
35 662kL and reduced water consumption
by 7.0% from January 2025 to December 2025
- Canal Walk, CapeGate, Somerset Mall,
The Glen, and Woodlands received
net-zero-waste certifications
- Recycling rate for the SA portfolio improved to 78%
- Approved the solar projects for the Croatia centres
STRONG BALANCE SHEET AND LIQUIDITY
UNDERSCORE COMPELLING
INVESTMENT FUNDAMENTALS
- Group LTV ratio decreased to 31.0% from
33.6% in June 2025
- Interest cover ratio improved to 3.0 times
from 2.6 times in FY2025
- Strong liquidity maintained with
R949 million of cash and R2.3 billion in
available bank facilities
- Euro term facilities reduced by 5 million EUR
in line with debt amortisation/reduction
strategy. EE portfolio LTV decreased
to 41.2%
- R400 million new capital raised in
December 2025
- Cost of borrowings reduced to 8.6% in
ZAR and 4.0% in EUR
- Net asset value per share increased to
R64.43 from R61.49 in June 2025
Unaudited Unaudited Audited
December 2025 December 2024 % change June 2025
Net income before value adjustments (R'000) 940 897 800 671 17.5% 1 603 283
Headline earnings per share (cents) 198.9 138.1 44.0% 307.5
Basic earnings per share (cents) 611.9 274.7 122.8% 569.3
Distributable income per share (cents) 212.3 201.4 5.4% 378.8
Dividends per share (cents) 118.98253 113.43000 4.9% 307.69772
Net asset value per share (Rands) 64.43 59.67 8.0% 61.49
Increase in dividend
payout ratio
As communicated in the FY2025 results published
in September 2025, the Board committed to
reviewing the dividend payout ratio with a view
to progressively increasing it over time. Due to
continued progress on our strategic priorities,
including a stronger balance sheet, repositioning
initiatives and improved trading performance
across our centres, the Board has decided to
increase the final dividend payout ratio for FY2026
from 80% to 82.5%. The updated dividend payout
ratio is as follows:
- payment of an interim dividend equivalent
to 95% of the distributable income from the
SA portfolio remains unchanged; and
- payment of a final dividend on finalisation of
the Group's annual audited results, so that the
total distribution for the financial year (including
the interim dividend) is equivalent to 82.5%
(previously 80%) of the Group's distributable
income from the SA and EE portfolios.
The balance of the distributable income will be
retained to manage borrowings and fund capital
expenditure in the normal course.
The Board will continue to review the dividend
payout ratio, with the intention of progressively
increasing it over time, noting however, that the
Group is approaching the Board's anticipated
maximum payout ratio.
Outlook and prospects
The global economy remained resilient in 2025,
achieving growth of 2.5% - 3.2%, despite ongoing
trade tensions, policy uncertainty, and geopolitical
conflicts. Inflation has eased toward targets, and
while growth varies across regions, with advanced
economies stabilising and many emerging markets
facing challenges, the overall outlook was stable
and constructive. While our operations are based in
SA and EE and not directly affected by the US-Iran
conflict, the potential future economic impact
remains uncertain.
South Africa's economy is recovering, with real GDP
growth estimated at 0.6% - 1.1%, supported by
improved energy supply and sector-specific gains
in mining and manufacturing. While GDP growth
per capita has yet to keep pace with population
growth, the recovery trends highlight the potential
for further improvement. In the South African retail
sector, steady but slow growth is projected, driven
by the above mentioned factors.
Eastern Europe's economy is experiencing a solid,
but moderated recovery, with projected growth
of around 2.5% - 3.0% for EU member states.
Key drivers include rising consumption, higher
disposable income, and EU fund inflows. Bulgaria's
adoption of the Euro in January 2026 is expected
to boost growth and reforms further. The region's
retail sector remains attractive, and we see strong
risk-adjusted returns and expansion opportunities
for our portfolio.
We are confident in the outlook for our portfolios
in South Africa and Eastern Europe, supported
by strong organic growth opportunities such as
the Somerset Mall Phase 3 expansion and the
extensions at the Croatia centres, all of which
are earnings-enhancing. We are also actively
pursuing new acquisitions in EE and SA. With
our dominant portfolios, proven track record and
strong balance sheet, we are well positioned to
pursue opportunities which may arise as a result of
the recent global uncertainty, and deliver growth
through our five strategic initiatives:
1. Drive new and organic growth opportunities in
our focus areas;
2. Accelerate the repositioning of the SA and EE
portfolios to strengthen their dominance and
grow market share;
3. Annual reviews of the portfolios to ensure we
retain the right properties and/or recycle capital
where appropriate;
4. Implement sustainable solutions to reduce the
impact of the infrastructure challenges we face
in South Africa;
5. Ensuring our balance sheet is robust.
The Group is on track to achieve the upper end of its
guidance of a 10% - 12% increase in distributable
income per share from FY2025 to FY2026.
Shareholders should note that the guidance above
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.
Dividend declaration and settlement
Notice is hereby given that the Board has declared
a total dividend of 118.98253 cents per share
for the six months ended 31 December 2025,
comprising an interim dividend of 116.94561 cents
per share for HY2026, which is 95% of the
distributable income from the South African
portfolio, and an antecedent dividend of
2.03692 cents per share.
The dividend is payable to Hyprop shareholders in
accordance with the timetable set out below:
Last date to trade cum dividend
Tuesday, 7 April 2026
Shares trade ex dividend
Wednesday, 8 April 2026
Record date
Friday, 10 April 2026
Payment date
Monday, 13 April 2026
The above dates and times are subject to change.
Any changes will be released on SENS.
Share certificates may not be dematerialised or
rematerialised between Wednesday, 8 April 2026
and Friday, 10 April 2026, both days inclusive.
In respect of dematerialised shareholders, the
dividend will be transferred to the Central Securities
Depository Participant ("CSDP") accounts/broker
accounts on Monday, 13 April 2026. Certificated
shareholders' dividend payments will be posted on
or about Monday, 13 April 2026.
Ordinary shares of no par value in issue at
31 December 2025: 406 758 538
Income tax reference number of Hyprop
Investments Limited: 9425177715
Shareholders are advised that the dividend meets
the requirements of a "qualifying distribution" for
the purposes of section 25BB of the Income Tax
Act, No 58 of 1962 (Income Tax Act). The dividends
on the shares will be taxable dividends for South
African tax purposes in terms of section 25BB of the
Income Tax Act.
Tax implications
for SA resident shareholders
Dividends received by or accrued to SA tax
residents must be included in the gross income
of such shareholders and will not be exempt
from income tax in terms of the exclusion to the
general dividend exemption contained in section
10(1)(k)(i)(aa) of the Income Tax Act because
they are dividends distributed by a REIT. These
dividends are, however, exempt from dividend
withholding tax (dividend tax) in the hands of
SA resident shareholders, provided that the
SA resident shareholders have provided to the
CSDP or broker, as the case may be, in respect of
uncertificated shares, or the Company, in respect
of certificated shares, a DTD(EX) form (dividend
tax: declaration and undertaking to be made by the
beneficial owner of a share) to prove their status
as SA residents. If resident shareholders have not
submitted the above-mentioned documentation
to confirm their status as SA residents, they are
advised to contact their CSDP or broker, as the
case may be, to arrange for the documents to be
submitted before the dividend payment.
Tax implications
for non-resident shareholders
Dividends received by non-resident shareholders
from a REIT will not be taxable as income and
instead will be treated as ordinary dividends, which
are exempt from income tax in terms of the general
dividend exemption section 10(1)(k) of the Income
Tax Act. Any dividend received by a non-resident
from a REIT is subject to dividend tax at 20%,
unless the rate is reduced in terms of any applicable
agreement for the avoidance of double taxation
(DTA) between SA and the country of residence
of the non-resident shareholder. Assuming
dividend tax will be withheld at a rate of 20%, the
net amount due to non-resident shareholders
is 95.18602 cents per share. A reduced dividend
withholding tax rate in terms of the applicable
DTA may only be relied on if the non-resident
shareholder has provided the following forms to
their CSDP or broker, as the case may be, in respect
of uncertificated shares, or the Company, in respect
of certificated shares:
- A declaration that the dividend is subject to a
reduced rate as a result of the application of
the DTA;
- A written undertaking to inform the CSDP, broker
or the Company, as the case may be, should
the circumstances affecting the reduced rate
change or the beneficial owner cease to be the
beneficial owner, both in the form prescribed
by the Commissioner of the South African
Revenue Service.
If applicable, non-resident shareholders are advised
to contact the CSDP, broker or the Company to
arrange for the abovementioned documents to be
submitted before the dividend payment, if such
documents have not already been submitted.
10 March 2026
This announcement is the responsibility of the directors and is only a summary of the information contained in the condensed consolidated interim results for the
six months ended 31 December 2025 ("HY2026 results") and does not contain full or complete details.
The HY2026 results have been released on SENS and are available on the JSE website at https://senspdf.jse.co.za/documents/2026/jse/isse/HYPE/HY2026.pdf
and on the Company website at https://www.hyprop.co.za/results/interims-2026/pdf/booklet.pdf.
Copies of the HY2026 results may also be requested by emailing Boitumelo Nkambule at boitumelo@hyprop.co.za.
Any investment decisions by investors and/or shareholders should be based on the HY2026 results published on SENS and the Company's website as a whole.
Corporate information
Directors S Noussis (Chairman)*^, MC Wilken (CEO)#, BC Till (CFO)#, AW Nauta (CIO)#, AA Dallamore*^, L Dotwana*^, KM Ellerine*, RJD Inskip*^, MRI Isaacs*^,
Z Jasper*^, BS Mzobe*^ #Executive | *Non-executive | ^Independent
Registered office 2nd Floor, Cradock Heights, 21 Cradock Avenue, Rosebank, 2196 Transfer secretaries Computershare Investor Services Proprietary Limited,
Rosebank Towers, 15 Biermann Avenue, Rosebank, 2196 Company secretary Fundiswa Nkosi Sponsor Java Capital, 6th Floor, 1 Park Lane, Wierda Valley,
Sandton, 2196 Investor relations Boitumelo Nkambule e. boitumelo@hyprop.co.za
Date: 10-03-2026 09:15:00
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