Hyprop Investments Limited has issued an operational update post the release of its FY2025 results in September 2025, with both its South African and Eastern European portfolios having delivered strong growth in tenant turnover and trading density for the four months ended 31st October 2025.

The REIT owns nine retail centres in SA with 43% of the portfolio in Gauteng and 57% in the Western Cape. Tenants’ turnover and trading density grew by 5.3% and 8.5% respectively with total foot count for the period up 1.9%. The portfolio’s vacancy rate improved from 4.2% in June 2025 to 3.2% in October 2025 with the weighted average reversion rate remaining at 8.5% while its new retail deal reversion rate reached 32.8%. Collections for the four months ended 31 October 2025 were 102% of collectables.

Canal Walk welcomed two new ‘firsts’ during the period: Oakley with its first SA store and Hisense. The super regional also welcomed Cape Town’s first Springbok store while Cape Gate launched three new brands: Sengu, Faro and Cannaafrica.

Somerset Mall’s multi-million expansion is on track to meet several deadlines with its new affordable luxury and athleisure section having opened in late November 2025. Hyprop says the upgraded bathrooms will be completed by early April 2026 with the family entertainment and new food court to open in July 2026.

Clearwater Mall welcomed SA’s first Walmart-branded store in Africa which began trading on the 22^nd of November 2025. On launch day, foot count was c.85 000 compared to the average 37 000 on Saturdays.

In July 2025, the REIT announced its disposal of a 50% undivided share in Hyde Park Corner for R805 million subject to conditions precedent. It says that it anticipates the sale to be implemented in early 2026.

Hyprop’s local portfolio’s capex budget for FY2026 is R846 million. By the 31^st of October 2025, R153 million had been invested in capital projects.

In Eastern Europe, the Company owns and manages four retail centres: two in the capital of Croatia, Zagreb, one in Sofia in Bulgaria, and Skopje City Mall in the capital of North Macedonia.

Its European tenants’ turnover increased by 2.9% during the period, with trading density up by 3.1% and a 0% vacancy rate as at October 2025. Collections for the four months ended 31 October 2025 were 97% of collectables.

Total capex for its Eastern European portfolio in the period was €1 million compared to its FY2026 budget of €8 million.

Hyprop closed the period with R873 million in cash and R2.3 billion in available bank facilities, after the payment of its FY2025 final dividend of R776 million.

In October 2025, GCR affirmed Hyprop’s long-term international and national issuer ratings of BB- and A+(ZA), respectively, with a stable outlook. The short-term international and national issuer ratings were also affirmed at B and A1(ZA) respectively, with a stable outlook.

Its R502 million DCM bond that matured in November 2025 was settled from available RCFs, while the R240 million bond maturing in April 2026 will either be settled from surplus cash or refinanced via an auction. The remaining R750 million of bonds that mature in FY2026 are held by banks and are expected to be refinanced via private placements.

The REIT says it is actively pursuing refinancing the €70 million of equity debt facilities (€20 million of RCFs and a €50 million term loan) maturing in the second and third quarters of the 2026 calendar year.

The Company says it is well-positioned to achieve distributable income per share growth of 10% to 12% for the year ending 30 June 2026, as guided in September 2025, with its loan-to-value (LTV) to remain around 35% and its interest coverage ratio to be between 2.5 times and 3.0 times.

Hyprop’s interim results for the six months ending 31 December 2025 are scheduled to be released on the 10^th of March 2026.