Hyprop Investments has reported a 9.9% increase in its total dividend to 307.7 cents per share for the year ended 30 June 2025, driven by earnings growth in South Africa and Eastern Europe and the increase in its dividend payout ratio announced in the REIT’s interim results in March 2025.

“The sterling performance of our South African and Eastern European centres in FY2025 is testament to the strategic decisions we have taken over the past six years and the hard yards we have put into ensuring our centres remain competitive, sustainable and relevant,” says Hyprop CEO Morné Wilken.

The Company’s distributable income increased by 7.5% to R1.51 billion compared to FY2024 with distributable income per share (DIPS) increasing by 2.3% to 378.8 cents per share, exceeding its updated guidance of -1% to 2% growth in June 2025.

The REIT says that Eastern Europe delivered impressive growth with distributable income increasing by 24% in Euros and 20.5% in ZAR while operating income (before the straight-line rental accrual) from South Africa rose by 11% during the period, underpinned by the full-year contribution of Table Bay Mall.

Average monthly foot count across Hyprop’s nine shopping centres in South Africa was maintained at 7.2 million for the year with its tenants’ turnover increasing 5.5%, surpassing the 5.1% growth in FY2024 with trading density increasing by 6.8%. The Company says its retail vacancies rose to 4.2%, primarily due to Edgars and Pick n Pay resizing. Capital expenditure in its retail portfolio was R506 million for the period.

The REIT says that Somerset Mall’s Phase 2 expansion project is progressing well and within budget. The project will add 5 500m², increasing the shopping centre’s total lettable area to 75 500m² and expanding from 180 to 230 stores. The affordable luxury and athleisure section is scheduled to open in late November 2025 with the family/entertainment and food court area set to launch mid-July 2026.

Tenant turnover in its Eastern European portfolio rose by 6.6%, exceeding inflation, with trading density up by 6.1% – with a slight 0.8% dip in foot count. Its international portfolio reported a 0.1% vacancy rate over the period.

Independent valuations of the South African and Eastern Europe assets increased by R2.4 billion in aggregate.

At 30 June 2025, Hyprop held R1.2 billion of cash and R2.5 billion in undrawn bank facilities, after successfully raising R808 million in June 2025, which was earmarked for the potential MAS transaction. The capital raise improvement in property valuations and the disposal of Sub-Saharan African assets improved its loan-to-value (LTV) ratio from 36.4% in FY2024 to 33.6% in FY2025.

As previously announced, Hyprop has agreed to sell 50% of its interest in Hyde Park Corner to a subsidiary of Millennium Equity Partners, with a put and call arrangement on the remaining 50% to be exercised two years from now. Transfer is anticipated to take place November 2025.

Hyprop expects its DIPS to grow by 10% to 12% in FY2026.