Hyprop Investments has published its operational update for the five months ended 31^st of May 2025, reporting year-on-year growth in tenant turnover and trading density of 7% and 10.2% respectively.

The REIT’s retail portfolio performed better in April and May 2025 due to the public holidays with foot count having increased by 0.1% while collections were 9.4% higher. As at the 31^st of May 2025, Hyprop’s retail vacancies were 3.9% primarily due to Edgars rightsizing stores.

Its weighted average reversion rate remains in positive territory at 2.9% with a retail new deal reversion rate of 13.5%.

In the Western Cape, Canal Walk has reported that Edgars is performing well in its new rightsized space which includes a world-class fragrance and cosmetics offering. Overall, the asset’s leasing activity has been positive, with office demand increasing significantly, says the Group.

The Phase 2 expansion of Somerset Mall is progressing, with terms having been agreed with several stores that will occupy the expanded area including Game, Computer Mania, Total Sports, a variety of athleisure and affordable luxury brands such as New Balance, Burnt, Curve Gear, and Napapijri, an international outdoor apparel brand.

At CapeGate, the development of satellite offices around the centre (on a leasehold basis) is still in the early stages, but it is gaining traction and potential tenants, says Hyprop.

In Gauteng, Rosebank Mall enhanced its tenant store by adding six new stores: Cannafrica, One Stop Travel & Tours, Drip4Life (IV drip experts), Glow Theory (Korean beauty store), John Craig and Cajees (a watch and accessories retailer) while Hyde Park Corner will be significantly enhanced in August 2025 with the opening of a new Checkers FreshX store.

At Woodlands, the Pick n Pay supermarket has been rightsized from 5 600m² to 3 636m² and a new lease agreement has been signed with a franchisee.

The Glen completed its egress and ingress project in April 2025 and it is currently refurbishing its exterior signage.

In Eastern Europe, Hyprop says its tenant turnover increased by 3.5% with trading density having risen by 4%, despite a decline in foot count of -3.3% mainly due to non-trading Sundays in Croatia and recent store boycotts related to rising food prices. Despite these challenges, Hyprop reported a 0.1% vacancy rate as at 31^st of May 2025.

In line with the Group’s growth and diversification strategy, it recently announced its intention to make a voluntary offer for a controlling stake in MAS plc to expand its footprint in the Eastern European market, for which it raised R808 million via a book build.

“We believe the MAS plc transaction could be a game changer for Hyprop and will give us access to new countries in the region, namely Romania and Poland. However, before proceeding with the transaction, we must meet certain conditions, with one key condition being approval from our shareholders,” says CEO of Hyprop, Morné Wilken.

“If this transaction does not proceed, we can effectively deploy these funds into reducing debt in the short-term, as well as for asset management initiatives, organic growth opportunities, further solar-PV projects and new investments within Hyprop’s expansion strategy.”

Since the Group embarked on its new strategic journey in 2019, it has made significant progress including optimising its Eastern European portfolio, settling dollar equity debt in the sub-Saharan Africa portfolio, and selling the sub-Saharan Africa portfolio in return for shares in Lango, a pan-African real estate investment company.

In the same period, Hyprop reduced its loan-to-value (LTV) ratio from a peak of 52%, shaved its euro equity debt from €403 million to €87 million, simplified its structure, improved its credit rating, and continuously invested in enhancing the attractiveness and sustainability of its centres in South Africa and Eastern Europe.

Hyprop has R1.2 billion of cash and R2.2 billion in available bank facilities, after receipt of the capital raise proceeds. The cash injection reduced its LTV from 36.3% as at 31^st December 2024 to 34.2%.

Hyprop expects to release its results for the six months to 30th of June 2025 on or about the 16th of September 2025.