Hyprop Investments (HYP) H2 2025 earnings summary

Executive summary

• Distributable income grew 7.5% to ZAR 1.51 billion, with distributable income per share up 2.3% to ZAR 3.788 and a 9.9% dividend increase, exceeding guidance.

• Group LTV improved to 33.6% and interest cover ratio to 2.6x, with strong liquidity: ZAR 1.2 billion cash and ZAR 2.5 billion undrawn facilities.

• Successfully sold the rest of the African portfolio and 50% of Hyde Park Corner, reducing LTV and releasing in-country debt commitments.

• Strong operational performance in both South Africa and Eastern Europe portfolios, with major mall upgrades and new tenant additions.

• Strategic focus on organic growth, sustainability, and new opportunities in Eastern Europe, including solar and hybrid energy projects.

Financial highlights

• Distributable income per share rose 2.3% to ZAR 3.788, and total dividend per share increased 9.9% to 307.7 cents.

• Weighted average distributable income per share increased 5% to ZAR 3.968.

• Net operating income for South Africa up 11%; like-for-like NOI up 5.1%.

• European portfolio distributable income in euros up 24% to EUR 31 million.

• Group LTV reduced from 36.4% to 33.6%; European LTV at 43.4%.

Outlook and guidance

• Guidance for distributable income per share growth of 10%-12% for the next financial year.

• Plans to implement further solar projects and battery solutions in South Africa and continue asset recycling.

• Targeting new acquisitions in Eastern Europe and further asset recycling, including the sale of the remaining 50% of Hyde Park Corner.

• Intends to progressively increase payout ratio, with a review in June 2026, possibly up to 85%.