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")
PRE-CLOSE OPERATIONAL UPDATE
Following the publication of Hyprop's annual results for the year ended 30 June 2025 ("FY2025") on 16 September 2025,
the Company is pleased to provide an operational update for the four months ended 31 October 2025 ("the period").
INTRODUCTION
Hyprop is a retail-focused REIT operating in South Africa (SA) and Eastern Europe (EE). We create spaces and connect
people by owning, managing and redeveloping retail centres in mixed-use precincts in key economic nodes that benefit from
regional growth and strong economic activity.
We are well-positioned to capitalise on future growth opportunities aligned with our diversification strategy, leveraging our
existing teams and the quality and resilience of our current portfolio. Our proactive approach prioritises expanding our
portfolios in the Western Cape and EE, while optimising our Gauteng property investments for sustainable returns.
We review our portfolios annually to ensure we retain the right properties and/or recycle capital where appropriate. In July
2025, Hyprop announced the disposal of a 50% undivided share in Hyde Park Corner for R805 million (subject to the
fulfilment of certain conditions precedent (CP)). It is anticipated that the last outstanding CP will be fulfilled before the end
of the calendar year, and the disposal will be implemented early in the 2026 calendar year. The disposal of the remaining 50%
interest via a put-and-call option remains unchanged. We are also at an advanced stage of concluding another disposal, which
will be announced once the agreements are finalised.
During the period, both the SA and EE portfolios delivered strong growth in tenants' turnover and trading density, reflecting
our exceptional locations, curated tenant mix, and consistently differentiated experiences for both shoppers and tenants,
underpinned by operational excellence across our teams.
SA PORTFOLIO
We own nine retail centres in South Africa, with 43% of the portfolio in Gauteng and 57% in the Western Cape (based on our
investment property value). Our centres continued to perform well during the period, despite the tough economic environment
in South Africa and growing spend on online gambling, which is reducing discretionary income available for retail spending.
Tenants' turnover and trading density grew by 5.3% and 8.5%, respectively. The total foot count for the period was up 1.9%,
reflecting our success in optimising shopper quality and spend per visit rather than simply focusing on traffic volumes.
The retail vacancy rate improved significantly, from 4.2% in June 2025 to 3.2% in October 2025, driven by our successful
repositioning and rightsizing initiatives, coupled with robust leasing strategies. The weighted average reversion rate remains
strong at 8.5%, while the new retail deal reversion rate reached 32.8%.
Collections for the four months ended 31 October 2025 were 102% of collectables.
Key trading metrics
Total for 4-
Trading metric Year Jul Aug Sep Oct month
period
2023 2 115 156 1 976 349 2 016 832 2 006 304 8 114 641
Tenants' turnover 2024 2 129 830 2 158 612 2 088 568 2 136 222 8 513 232
(R'000) 2025 2 284 147 2 281 554 2 139 928 2 256 979 8 962 608
Variance % 2024 vs 2023 0.7% 9.2% 3.6% 6.5% 4.9%
Variance % 2025 vs 2024 7.2% 5.7% 2.5% 5.7% 5.3%
2023 3 371 3 145 3 210 3 185 3 228
Trading density (R) 2024 3 339 3 381 3 283 3 380 3 346
2025 3 694 3 692 3 471 3 658 3 629
Variance % 2024 vs 2023 -0.9% 7.5% 2.3% 6.2% 3.7%
Variance % 2025 vs 2024 10.6% 9.2% 5.8% 8.2% 8.5%
2023 7 313 6 675 6 871 6 938 27 797
Foot count ('000) 2024 6 977 7 035 6 858 6 931 27 801
2025 7 332 7 136 6 678 7 170 28 316
Variance % 2024 vs 2023 -4.6% 5.4% -0.2% -0.1% 0.0%
Variance % 2025 vs 2024 5.1% 1.4% -2.6% 3.5% 1.9%
2023 1 856 101 1 715 772 1 738 183 1 722 852 7 032 908
Vehicle count 2024 1 790 422 1 783 283 1 715 595 1 747 705 7 037 005
2025 1 853 500 1 836 022 1 714 662 1 835 667 7 239 851
Variance % 2024 vs 2023 -3.6% 3.9% -1.3% 1.4% 0.1%
Variance % 2025 vs 2024 3.5% 3.0% -0.1% 5.0% 2.9%
2023 1.4% 1.6% 1.7% 1.4%
Retail vacancy (%) 2024 2.1% 2.0% 2.0% 2.0%
2025 4.0% 3.8% 3.1% 3.2%
2023 250 677 290 193 311 921 273 013 1 125 804
Collections (R'000) 2024 313 753 360 877 283 204 326 576 1 284 410
2025 325 827 322 607 319 579 380 685 1 348 698
Variance % 2024 vs 2023 25.2% 24.4% -9.2% 19.6% 14.1%
Variance % 2025 vs 2024 3.8% -10.6% 12.8% 16.6% 5.0%
Historic statistics have been updated for the most recent information received.
2023 excludes Table Bay Mall.
Canal Walk
The centre welcomed two South African "firsts": Oakley opened its first South African store in September, and Hisense
opened its first in November. The first Springbok store in Cape Town opened at Canal Walk in October. Other new tenants
included Chanel Fragrance & Beauty, Skulpt, The Piercery, Volora and Love Matcha. A CSI initiative, the U-turn thrift store,
opened in August. Among the relocations and revamps were flagship stores for Incredible (office products), Curve Gear,
Flight Centre, and Trenton.
To improve the connection between Canal Walk and the Century City office and residential areas, construction of a new
"Otter Bridge" over the canal will begin in February 2026 and should be completed by the end of the 2026 financial year.
CapeGate
Three new brands launched in the centre in October: Senqu, Faro and Cannafrica. Four of the fashion stores (Foschini,
Markham, Sterns and Miladys) completed full revamps.
Lounge-style pause areas have been created throughout the centre and CapeGate has embarked on a phased project to raise
the shopfronts as leases are renewed.
Somerset Mall
Two new stores, Silki and Cotton On Kids, opened, while several other stores (including Simply Asia, Superfoto, Cellini and
Earthaddict) were revamped, enhancing the centre's appearance and appeal.
As part of the Phase 2 expansion, Computer Mania and Kingsley Heath were revamped or relocated. The expansion project
is on track to meet several deadlines: the tiling of the entire centre was completed in October; the new affordable luxury and
athleisure section successfully opened on 20 November; the upgraded bathrooms will be completed by early April 2026; and
the family entertainment and new food court will open by the end of July 2026.
Table Bay Mall
The centre's performance is in line with our expectations and the current effort ratio clearly indicates the potential for future
rental growth. We have applied for additional bulk to expand the centre and accommodate future tenant demand.
Notable store openings included fashion outlet Me&B, Yuppiechef, Giggles & Grow (children's play studio), GAC Motors
and Destinations Outdoor & Travel. Another two new names will appear before the end of December: Senqu and Muscle
Mecca. Wellness Warehouse and Sorbet completed refurbishments and three tenants relocated, including Absa Bank, which
moved to a smaller, more modern branch.
Three premium pause areas were completed in September, enhancing shopper comfort and dwell time at the centre. The
infrastructure for free Wi-Fi has been installed and it will be launched in early 2026.
Rosebank Mall and offices
The centre welcomed three new stores during the period (Old School, Pizza Chefs and Cinnabon) and one new office tenant
(Global Business Solutions). In November, the centre added Woolies Now Now to the food offering. Additionally, several
stores were refurbished or upgraded, including Marcel's Gourmet Frozen Yoghurt, Skechers, Splush (a beauty store), Jewls
& Jems, Maple Galleries, Sunglass Hut, Clicks and Markham, while Imali Express relocated.
The centre updated all its signage to enhance shoppers' navigation and improved visitor safety by replacing or upgrading the
lighting and pavers around the centre, especially the walkway on Cradock Avenue. New regenerative motors were installed
in the shoppers' lifts to reduce power consumption and the plantroom for the office area was upgraded.
Clearwater Mall
A highlight for Clearwater Mall during this period was the launch of the first Walmart-branded store in Africa, which began
trading on 22 November. On the day the Walmart store opened, foot count was circa 85 000 compared to the average 37 000
on Saturdays. Other new store openings included Uniq, Hey Dude and Value Co, while Refinery and Sterns were revamped.
Porter and Craft and Side Step relocated to new premises. Upcoming store openings include Legends Barber, Drip 4 Life,
Steers and Debonairs.
Significant projects completed in the period were the replacement of the Nu Metro escalator and upgrades to the bathrooms.
A project to introduce an e-hailing waiting area at the centre is underway.
The Glen
Five new stores opened their doors at The Glen, including two fashion outlets (Colt 45 by Al Capone and a Timberland pop-
up store) and two homeware stores (Volpes and Le Morgan Home). The Carrol Boyes store was revamped and expanded.
The centre completed its e-hailing waiting area project, which involved repurposing unused space at one of the rooftop
entrances to create a safe area for shoppers to wait for e-hailing vehicles. Good progress has been made on finalising the
centre's masterplan, and the Phase 1 redevelopment project will begin in the 2026 calendar year.
Woodlands
One new store opened during the period, fashion outlet Me&B, which started trading in August.
Replacement of the two 20-year-old lifts on the restaurant piazza was completed in September. In November, the centre
completed the upgrade of one escalator at Entrance 2, with the second escalator to be upgraded in March 2026.
Hyde Park Corner
Seven new stores contributed to revitalising the centre, including Checkers FreshX. Since its opening, the centre has seen a
steady increase in foot count, with October 2025 foot count up 12% compared to October 2024. Other additions include
Menbur (footwear), a Nicholas & Co pop-up store, Toy Kingdom and a new Naked Coffee inside Exclusive Books. Denham
rebranded as Ritual and opened in October and Al Capone, which houses several premium brands, opened at the end of
November. Among the store refurbishments were Vodacom, Boutique Haute Horlogerie (high-end watch distributor) and
Botanicus (florist), while the revamp of Charles Greig is underway.
Capital expenditure
The SA portfolio's capital expenditure budget for FY2026 is R846 million, reflecting the Group's ongoing commitment to
reinvesting in and strengthening its centres' dominance. By 31 October 2025, R153 million had been invested in capital
projects.
EE PORTFOLIO
In Eastern Europe, we own and manage four premier retail centres: two in the capital of Croatia, Zagreb, one in Sofia, Bulgaria,
and Skopje City Mall in the largest city and capital of North Macedonia. Our strategic locations provide us with a strong
presence in these growing economies.
Our centres continue to demonstrate resilience and growth, as reflected in our steady and improving operational performance
from July to October 2025. Tenants' turnover increased by 2.9%, while trading density rose by 3.1%, in line with the inflation
trend. Demand for space remains exceptionally high, underscored by a 0.0% vacancy rate as at October 2025. These results
reinforce our centres' reputations as the preferred retail destinations in their cities.
Collections for the four months ended 31 October 2025 were 97% of collectables.
Key trading metrics
Total for 4-
Trading Metric Year Jul Aug Sep Oct month
period
2023 44 070 41 361 46 833 50 458 182 722
Tenants' turnover 2024 50 159 45 751 54 190 53 653 203 753
(€'000) 2025 51 166 46 380 54 445 57 578 209 569
Variance % 2024 vs 2023 13.8% 10.6% 15.7% 6.3% 11.5%
Variance % 2025 vs 2024 2.0% 1.4% 0.5% 7.3% 2.9%
2023 265 251 285 304 276
Trading density (€) 2024 298 271 321 318 302
2025 305 275 323 342 311
Variance % 2024 vs 2023 12.4% 8.2% 12.6% 4.5% 9.3%
Variance % 2025 vs 2024 2.4% 1.5% 0.8% 7.4% 3.1%
2023 2 159 2 093 2 266 2 334 8 852
Foot count ('000) 2024 2 222 2 140 2 304 2 325 8 991
2025 2 163 2 023 2 177 2 307 8 670
Variance % 2024 vs 2023 2.9% 2.2% 1.7% -0.4% 1.6%
Variance % 2025 vs 2024 -2.7% -5.4% -5.5% -0.8% -3.6%
2023 322 988 335 513 339 535 363 282 1 361 318
Vehicle count 2024 365 563 362 456 366 936 398 098 1 493 053
2025 354 733 336 564 346 714 399 268 1 437 279
Variance % 2024 vs 2023 13.2% 8.0% 8.1% 9.6% 9.7%
Variance % 2025 vs 2024 -3.0% -7.1% -5.5% 0.3% -3.7%
2023 0.4% 0.4% 0.4% 0.5% -
Vacancy (%) 2024 0.2% 0.2% 0.2% 0.2% -
2025 0.1% 0.1% 0.1% 0.0% -
2023 6 818 7 485 7 783 7 617 29 703
Collections (€'000) 2024 7 596 7 740 8 560 8 149 32 045
2025 7 955 7 996 8 818 8 570 33 339
Variance % 2024 vs 2023 11.4% 3.4% 10.0% 7.0% 7.9%
Variance % 2025 vs 2024 4.7% 3.3% 3.0% 5.2% 4.0%
Historic statistics have been updated for the most recent information received.
City Center one West
City Center one West achieved steady growth during the period. Strategic developments include the reopening of Mandis
Pharm in a larger format, featuring premium skincare lines and beauty services, further cementing the centre's health and
wellness offering. Mango launched a refreshed concept store, while Marella (fashion store) completed a redesign project to
elevate brand appeal and enhance the shopping experience. Mikronis launched a new store, expanding the centre's tech
offering with the latest devices and accessories.
City Center one East
Between July and October, City Center one East maintained full occupancy and enhanced its tenant mix with the opening of
GLIGORA Cheese & Deli and dShop, the official fan store for football club GNK Dinamo Zagreb. Buzz increased its space
and Crocs relocated to larger premises.
In September 2025, we received GUP approval for an additional 14 000m2 of bulk. The team is actively working on the new
expansion project, with a targeted start date in the 2026 calendar year, pending timely receipt of all requisite approvals.
Skopje City Mall
Skopje City Mall continues to attract leading brands and innovative concepts, welcoming Merkur in the home improvement
segment and Green Salad, a dynamic addition to the food court. A strategic optimisation project is underway to further
improve the ground and first floors, with key tenants like Calzedonia (socks, hosiery and swimwear retailer) and Fabu Spot
(premium beauty outlet) expanding and introducing new concept stores. New leases with Plaset Doner & Burger and Flying
Tiger (accessories and toys) reinforce the centre's reputation as a destination for high-quality retail and dining experiences.
The Mall
The Mall continues to strengthen its tenant mix and customer offering, with additions such as McDonald's, LATE Coffee &
Roastery, NOA Coffee, and Just Asia in the food category. ProCredit Bank, Lazarini (men's fashion) and Miniso also opened
during the period. Lilly Drogerie (health and beauty retail chain) was enlarged and relocated, while Istyle was upgraded to
the Premium Apple reseller concept, the only one in Bulgaria.
Capital expenditure
Total capital expenditure for the EE portfolio in the period was €1 million compared to the FY2026 budget of €8 million.
ENVIRONMENTAL
Energy
Our commitment to ESG (Environmental, Social, and Governance) initiatives remains a core driver of value for Hyprop and
our stakeholders.
We have invested significantly in innovative energy projects to advance our ESG goals, ensure resilience against power
outages, and acieve meaningful reductions in electricity costs. During the period, the SA portfolio's total energy consumption
was 56.3 million kWh, with 13.5% generated from solar.
Recently, CapeGate received its much-awaited final approval for its 5 337 kWp solar-PV project. This project is expected to
come online during the second half of the 2026 calendar year and will increase our total installed solar capacity to 24 110
kWp. In parallel, we have commenced the planning of a battery energy storage system (BESS) at Hyde Park Corner, the
second BESS project in the SA portfolio following the successful commissioning at Rosebank Mall. The planned solar-PV
projects at The Glen (3 295 kWp), Somerset Mall (4 200 kWp) and Canal Walk (6 650 kWp) are still awaiting regulatory
approvals.
Water
We are achieving outstanding results in our mission to reduce our water consumption. Over the eleven months ended October
2025, we reduced water consumption by 68 ML, resulting in cost savings of over R6 million. In October 2025 alone, our
focused initiatives delivered a 20% reduction in water usage from 62.4 ML in October 2024 to 49.7 ML, saving 12.7 ML in
a single month. With all the SA centres having fully completed and implemented the AquaIntell/AQUAffection training and
monitoring programme, we are positioned to accelerate the reduction of our environmental impact and costs.
Waste
We are proud to announce that we have achieved Green Building Council of South Africa (GBCSA) net-zero waste
certification for our recycling initiatives at Canal Walk, CapeGate, Somerset Mall, The Glen, and Woodlands. This
accomplishment reflects our commitment to sustainability and positive environmental impact.
BALANCE SHEET, CAPITAL AND CASH FLOW MANAGEMENT
The Group's liquidity remains exceptionally robust, underpinned by the outstanding cash collection rate from tenants in both
the SA and EE portfolios of 102% and 97%, respectively. The Group ended the period with R873 million in cash and R2.3
billion in available bank facilities, after payment of the FY2025 final dividend of R776 million. The strong liquidity and
capital management underscore Hyprop's prudent approach, which provides a solid foundation to fund future growth.
In October 2025, GCR affirmed Hyprop's long-term international and national issuer ratings of BB- and A+(ZA),
respectively, with a stable outlook. The short-term international and national issuer ratings were also affirmed at B and
A1(ZA) respectively, with a stable outlook, reflecting the Group's ongoing financial and credit stability. GCR highlighted
several positive aspects in their report:
- The strong performance of Hyprop's property portfolio in both SA and EE, combined with an improvement in
gearing metrics
- Hyprop's success in repositioning and re-tenanting its portfolio was evident in FY2025, as both its SA and EE
portfolios reported strong performance metrics
- Hyprop has a strong liquidity position, with R1.2 billion in cash at 30 June 2025 and R2.5 billion in unutilised
committed facilities
- The stable outlook reflects GCR's expectation that Hyprop's operational performance will remain strong, whilst the
LTV will remain around 35% and the interest coverage ratio will be between 2.5 times and 3.0 times.
The R502 million DCM bond that matured in November 2025 was settled from available RCFs, while the R240 million bond
maturing in April 2026 will either be settled from surplus cash or refinanced via an auction. The remaining R750 million of
bonds that mature in FY2026 are held by banks and are expected to be refinanced via private placements.
The Group is actively pursuing refinancing the €70 million of equity debt facilities (€20 million of RCFs and a €50 million
term loan) maturing in the second and third quarters of the 2026 calendar year.
The Group's LTV ratio increased marginally from 33.6% in June 2025 to 34.3% in October 2025 following payment of the
final dividend for FY2025. The all-in cost of Rand borrowings reduced from 9% in June 2025 to 8.8% in October 2025, and
for Euro borrowings from 4.2% in June 2025 to 4.0% in October 2025. 77% of the Group's interest rate exposure is currently
hedged, with an average hedge duration of 1.6 years. 67% (by nominal value) of rand interest rate hedges comprise caps and
collars, with the remainder comprising swaps.
IN CLOSING
Hyprop offers investors a compelling investment opportunity, backed by solid financial and operational performance, a
focused strategy, robust corporate governance, a healthy balance sheet, experienced leadership and a proven track record.
With dominant and resilient portfolios in SA and EE, the Group is well-positioned to achieve distributable income per share
growth of 10% to 12% for the year ending 30 June 2026, as guided in September 2025.
Shareholders should note that the guidance above is based on the assumptions stated in our FY2025 annual results, and is
subject to change as 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 Absa Capital on Monday, 1 December 2025, at 10:30 am SA time.
Please register here https://events.teams.microsoft.com/event/72c503bb-0107-4243-a1c6-ef60ee5eb030@5be1f46d-495f-
465b-9507-996e8c8cdcb6 if you wish to join the presentation. A recording of the presentation will be available on Hyprop's
website after the presentation.
Hyprop's interim results for the six months ending 31 December 2025 are scheduled to be released on 10 March 2026.
1 December 2025
Sponsor
Java Capital
Date: 01-12-2025 08:00:00
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