Hyprop’s full-year distribution ahead of previous guidance
The group says it its performance in the face of macroeconomic challenges demonstrates its resilience
17 September 2024 - 11:43
byJacqueline Mackenzie
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Property group Hyprop has reported a strong operational performance by its SA and Eastern Europe portfolios, which contributed to the distributable income per share being ahead of the previous guidance.
The group reported distributable income of R1.41bn in the year to end-June, or 370.4c per share, it said in a statement on Tuesday.
Though distributable income per share was 8.6% lower than the previous year, this was better than guidance provided at the time of releasing its 2023 annual results, which was for the measure to be 10%-15% lower mainly due to higher interest costs.
A final dividend of 280c per share was declared, in line with the dividend policy.
The group’s net operating income was 6.1% higher at R1.3bn, while headline earnings per share (HEPS) were 24% lower at 299.5c.
The group’s performance demonstrated its resilience, despite the macroeconomic challenges it faced, including high unemployment and constrained disposable income in SA and persistently high global interest rates, it said.
The group, which owns popular shopping malls such as Rosebank Mall, Table Bay Mall, Hyde Park Corner and Canal Walk in SA, said sentiment had improved with the newly constituted government of national unity (GNU) and more stable electricity supply.
On a global level, markets are expecting interest rate cuts in the US to start by the fourth quarter and this should encourage the SA Reserve Bank to cut rates and provide some relief to consumers.
Hyprop’s strategy will be to continue to drive the implementation of sustainable solutions to reduce the effect of the infrastructure challenges in SA and repositioning the SA and East European portfolios to maintain their dominance and retain and grow market share.
It will be reviewing the portfolios annually to evaluate the case for the recycling of assets and to consider new growth opportunities, while staying focused on exiting Sub-Saharan Africa and executing the binding sale agreement.
It moved a step closer to exiting Sub-Saharan Africa with binding sale agreements signed in August for the entire portfolio.
Hyprop and Attacq announced on August 14 they were selling their stakes in shopping malls in Nigeria and Ghana. The deals involve the disposal of the companies’ holdings in Ikeja City Mall, Nigeria, as well as several prominent properties in Ghana, including Accra Mall, Kumasi City Mall and West Hills Mall.
Capital would still be allocated in accordance with the group’s capital expenditure framework, which prioritised projects to ensure the sustainability of the shopping centres, projects in favoured jurisdictions (the Western Cape in SA and Eastern Europe) and yield enhancing projects (solar plants, tenant installation allowances and redevelopment projects), Hyprop said.
Discernible green shoots in the global and domestic economies, combined with Hyprop’s sustainable business model, strong balance sheet and prudent capital management, continuous investment in human capital, and environmental initiatives, should position the group to deliver further growth and value for stakeholders over the long term, it said
Hyprop expected distributable income per share for the 2025 financial year to increase by 4%-7%.
Support our award-winning journalism. The Premium package (digital only) is R30 for the first month and thereafter you pay R129 p/m now ad-free for all subscribers.
Hyprop’s full-year distribution ahead of previous guidance
The group says it its performance in the face of macroeconomic challenges demonstrates its resilience
Property group Hyprop has reported a strong operational performance by its SA and Eastern Europe portfolios, which contributed to the distributable income per share being ahead of the previous guidance.
The group reported distributable income of R1.41bn in the year to end-June, or 370.4c per share, it said in a statement on Tuesday.
Though distributable income per share was 8.6% lower than the previous year, this was better than guidance provided at the time of releasing its 2023 annual results, which was for the measure to be 10%-15% lower mainly due to higher interest costs.
A final dividend of 280c per share was declared, in line with the dividend policy.
The group’s net operating income was 6.1% higher at R1.3bn, while headline earnings per share (HEPS) were 24% lower at 299.5c.
The group’s performance demonstrated its resilience, despite the macroeconomic challenges it faced, including high unemployment and constrained disposable income in SA and persistently high global interest rates, it said.
The group, which owns popular shopping malls such as Rosebank Mall, Table Bay Mall, Hyde Park Corner and Canal Walk in SA, said sentiment had improved with the newly constituted government of national unity (GNU) and more stable electricity supply.
On a global level, markets are expecting interest rate cuts in the US to start by the fourth quarter and this should encourage the SA Reserve Bank to cut rates and provide some relief to consumers.
Hyprop’s strategy will be to continue to drive the implementation of sustainable solutions to reduce the effect of the infrastructure challenges in SA and repositioning the SA and East European portfolios to maintain their dominance and retain and grow market share.
It will be reviewing the portfolios annually to evaluate the case for the recycling of assets and to consider new growth opportunities, while staying focused on exiting Sub-Saharan Africa and executing the binding sale agreement.
It moved a step closer to exiting Sub-Saharan Africa with binding sale agreements signed in August for the entire portfolio.
Hyprop and Attacq announced on August 14 they were selling their stakes in shopping malls in Nigeria and Ghana. The deals involve the disposal of the companies’ holdings in Ikeja City Mall, Nigeria, as well as several prominent properties in Ghana, including Accra Mall, Kumasi City Mall and West Hills Mall.
Capital would still be allocated in accordance with the group’s capital expenditure framework, which prioritised projects to ensure the sustainability of the shopping centres, projects in favoured jurisdictions (the Western Cape in SA and Eastern Europe) and yield enhancing projects (solar plants, tenant installation allowances and redevelopment projects), Hyprop said.
Discernible green shoots in the global and domestic economies, combined with Hyprop’s sustainable business model, strong balance sheet and prudent capital management, continuous investment in human capital, and environmental initiatives, should position the group to deliver further growth and value for stakeholders over the long term, it said
Hyprop expected distributable income per share for the 2025 financial year to increase by 4%-7%.
mackenziej@arena.africa
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