Hyprop raises dividend, despite dips in revenue and profit
Property group Hyprop declared a dividend of 376.3c per share for the six months ended December 2017, an increase of 8.3% on the corresponding period in 2016.
Revenue and profit came in slightly lower than in the corresponding period on 2016. Revenue fell to R1.54bn from R1.62bn a year earlier. After-tax profit dipped to R1.43bn from R1.55bn.
The group said on Friday its local shopping centres had achieved positive trading results, despite the difficult economic and political conditions in SA during the period, which had a negative effect on consumer confidence.
Like-for-like growth in distributable earnings (excluding properties sold) for the period was 2.1%.
Income was negatively affected by construction work at The Glen, Rosebank Mall and Canal Walk, and vacancies as a consequence of Stuttafords vacating Clearwater Mall, Rosebank Mall and Canal Walk in May 2017.
Hyprop’s vacancy rate fell to 1.6% at end-December, from 2.4% at end-June but was higher than 1.1% at end-December 2016.
In the African portfolio (in Nigeria, Zambia and Ghana), the vacancy rate was much higher, at 6.6% at end-December — up slightly from 6.5% at end-June.
Vacancies in the southeastern European portfolio, by contrast, were just 0.29%.
Hyprop’s southeastern European portfolio is held through its 60% stake in UK-listed Hystead.
The group’s distributable earnings "benefited from income received from the investments in southeastern Europe, particularly the new acquisitions in Skopje, Macedonia (November 2016) and in Sofia, Bulgaria (October 2017)," Hyprop said.
"The inclusion of distributable earnings from Ikeja City Mall in Lagos, Nigeria also contributed."
Hyprop expects dividend growth of between 8% and 10% for the year to end-June, an upward revision to the guidance provided in September 2017 of 7%-9%.
At 10.37am Hyprop’s share price was 0.19% lower at R109.30. It has fallen 6.8% in the year to date.
© Business Day