Hyprop Investments (HYP) Trading update summary

Executive summary

• Achieved strong operational performance across all regions, driven by strategic repositioning, tenant mix enhancements, and asset management initiatives.

• Table Bay Mall acquisition completed, expanding the Western Cape footprint, with positive retailer feedback and integration underway.

• Progress made on disposal of the sub-Saharan Africa portfolio, with a non-binding letter of intent signed for the sale of all four assets.

• Maintained LTV at 40.2% post Table Bay Mall acquisition and settled €20 million Euro Equity Debt.

• 85% of group interest rate exposure is hedged, with new bonds issued at favorable margins.

Trading performance and revenue trends

• South Africa portfolio saw a 5.7% increase in foot count and a 2.1% rise in tenant turnover for the five months to May 2024, with Table Bay Mall outperforming legacy assets.

• Eastern Europe portfolio reported an 8.7% increase in tenant turnover and a 0.5% rise in foot count for the four months to April 2024, with new store openings and upgrades.

• SSA portfolio turnover in Ghana grew 18.2% in local currency, but USD turnover was up only 13.6% due to currency depreciation.

• Positive rent reversions: +3.7% in SA (11 months to May 2024) and EE (10 months to April 2024).

• Sub-Saharan Africa's trading metrics in USD were negatively impacted by Cedi depreciation, but local currency turnover remained strong.

Profitability and margins

• Collections in SA increased 7.7% year-on-year for the five months to May 2024.

• EE collections rose 3.2% for the four months to April 2024.

• SSA collections declined 9.4% in USD terms for the four months to April 2024.

• Lease reversions in South Africa were slightly negative, while Eastern Europe saw positive new deal reversions.

• Workshop17 development at Hyde Park is expected to yield 12%.