Hyprop faces headwinds as big retailers shut outlets
Stuttafords' exit from centres expected to reduce distributions
Hyprop Investments, the blue-chip R30bn specialist shopping centre owner is facing pressure following the tenant failure of department store chain Stuttafords at three of its malls and the possible closure of some of Edcon’s retail outlets. Its share price slipped 2.2% last Thursday amid concerns that tenant failures would affect its distribution payouts in its 2018 financial year. The share price fell further on Monday, falling 1.51% to close at R117.70. The company has been the darling of fund managers for many years, with its share price having nearly doubled over the past five years. Hyprop CEO Pieter Prinsloo said last week he expected it to take six months to find new tenants for the 11,000m² of space left empty after the closure of Stuttafords stores in three of its shopping centres. The closures would affect dividend payouts to shareholders for the financial year to June 2018 negatively, the extent of which was yet be determined. Fayyaz Mottiar, head of listed property at Ab...
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