Hyprop Investments (HYP) Trading update summary

Executive summary

• Operational updates for July–October 2025 highlight strong performance and strategic progress in South African and Eastern European portfolios, with a focus on portfolio optimisation, sustainability, and balance sheet strengthening.

• Major capital projects, expansions, and asset disposals are underway, including Somerset Mall, Cape Gate, and CC1 East, with new anchor tenants and refurbishments supporting growth.

• Environmental and ESG initiatives delivered significant energy and water savings, increased solar generation, and net-zero waste certification at several centres.

Trading performance and revenue trends

• South Africa saw tenant turnover rise 5.4%–7.2% and trading density up 8.3%–8.5% year-on-year, with foot count increasing up to 5.1% in recent months.

• Eastern Europe reported tenant turnover growth of 2.9%–4% and trading density up 3.1%, with 0.0% vacancy and high demand for space.

• Retail vacancy in South Africa improved from 4.9% to as low as 3.2%; office vacancy down to 13.6%.

• New anchor tenants, including Walmart and Checkers FreshX, and refurbishments drove increased footfall and trading momentum.

Profitability and margins

• Effort ratios in South Africa improved to 8.1% from 11.3% in June 2020, and remained stable in both regions.

• Weighted average reversion rate in South Africa was 8.5%, with new retail deal reversion rates up to 32.8%.

• Somerset Mall expansion delivered an IRR of 15.7% over 10 years; solar projects yield IRRs of 20–22%.

• Sustainability initiatives add ZAR 1 million/month per plant to the bottom line.