Hyprop aims to lure more shoppers amid decline
The company has kept its full-year guidance of a fall in distribution of up to 13% per share
Hyprop Investments — the owner of malls including Rosebank, Hyde Park Corner and Canal Walk — said on Monday it is responding to a fall in foot count at its SA malls with a comprehensive strategy to increase trading density that will include rooftop gardens.
The company has completed a comprehensive study of its malls, and aims to optimise tenant numbers, as well as improve its internal and external communication, CEO Morne Wilken said in a pre-close update on Monday.
Average monthly foot count per square metre in its SA portfolio fell 2.4% in October from the previous year, and was down 2.8% in July.
Initiatives include introducing rooftop gardens at various malls, as well as introducing mixed-use spaces for young entrepreneurs to market their products, he said.
The company is seeking to increase Checkers in its portfolio, he said, while it is questioning the continued viability of Game stores.
“We know the market is tough, but we do have a plan,” he said.
The company retained its distribution guidance for June 2020 of a fall of 10%-13%. The company has also reduced its dividend payout ratio to 92% of distributable earnings.
Hyprop’s share price was down 0.9% to R58.41 in morning trade on Monday, having fallen 28.23% so far in 2019.