Hyprop Investments (HYP) investor relations material

Executive summary

• Distributable income rose 13.7% to ZAR 1.7 billion, with distributable income per share up 11.7% to ZAR 4.23.

• Dividend increased 14.4% to ZAR 3.51 per share, payout ratio raised to 82.5%.

• Two successful capital raises: ZAR 400 million in December and ZAR 739 million in July, totaling ZAR 1.139 billion.

• Sale of 50% share in Woodlands Boulevard and acquisition of Galleria Burgas in Bulgaria for EUR 125 million completed.

• Net asset value per share increased by 6.7% to ZAR 65.62.

Financial highlights

• Group LTV at 28.5%; European LTV at 37.8%.

• Interest cover ratio improved to 3.1x.

• Strong liquidity with ZAR 1.7 billion in cash and ZAR 2.1 billion undrawn facilities.

• Cost-to-income ratio at 45.9% due to higher utility and depreciation costs.

• Unencumbered property assets increased to ZAR 9.4 billion.

Outlook and guidance

• Distributable income per share expected to grow 7%-9% in 2027.

• Focus on recycling opportunities, new growth in SA and EE, and maintaining LTV/ICR.

• Major projects: Somerset Mall Phase 3 extension (ZAR 800 million), City Center one East extension (EUR 55 million), solar-PV installations, and Galleria Burgas integration.

• Focus on completing solar projects, backup water supply, and further BESS systems.