Hyprop Investments (HYP) Trading update summary

Executive summary

• Business transformation and simplification have created significant balance sheet capacity, with a pro forma LTV of 32% post-Galleria Burgas acquisition, supporting further growth initiatives.

• Trading performance in both South Africa and Eastern Europe showed year-on-year growth in key metrics for the five months ended May 2026, with positive trends in tenant turnover, foot count, and trading density.

• Leasing activity remained robust, with high renewal success rates and positive rental reversions in both regions.

• Several capital projects, including solar installations, mall expansions, and infrastructure upgrades, are underway or completed, supporting sustainability and growth.

• Strategic asset sales, such as the 50% share in Woodlands, have reduced Gauteng concentration and unlocked capital for new growth.

Trading performance and revenue trends

• South African tenant turnover increased 5.5% over five months, with trading density up 4.4% and footfall up 2.1%.

• Eastern Europe tenant turnover grew 4.4% over five months, with trading density up 4.2% and footfall up 5.0%.

• Retail vacancy rates remain low: 3.3% in South Africa and 0% in Eastern Europe as of May 2026.

• Cash collections from tenants reached R1.7 billion in South Africa and €48 million in Eastern Europe.

• Five-month tenant turnover rose 5.5% compared to 2025, with vehicle count up 3.1%.

Profitability and margins

• Positive rent reversions in retail and office space: South Africa at 9.8% and Eastern Europe at 3.4%; new retail deals in South Africa showed 32.8% growth.

• Effort ratio in Eastern Europe reduced from 11% to 9.9%, supporting rental growth potential.

• Distributable income per share guidance of 10%-12% growth, with payout ratio increased to 82.5%.

• Effort ratios remained stable in both regions, indicating sustainable occupancy costs for tenants.