An aerial view of Somerset Mall. A Phase 3 expansion at Somerset Mall is in planning phase, driven by strong tenant demand.
Image: Supplied
Hyprop Investments, the retail-focused JSE and A2X-listed REIT, increased its half-year dividend by 4,9% to 119 cents a share on Tuesday and affirmed its full-year guidance of a 10% – 12% increase in distributable income per share.
Hyprop, which owns, manages and redevelops retail centres in prominent, mixed-use precincts in key economic nodes, is slowly expanding its presence in preferred regions, such as the Western Cape and Eastern Europe (EE), while also optimising its Gauteng assets.
Some of its most prominent domestic assets include Rosebank Mall, Canal Walk, Hyde Park Corner and Table Bay Mall. The dividend payout ratio was raised to 82.5% of distributable income from the SA and EE portfolios from 80% previously. Hyprop’s share price was down 0,8% to R57,75 Tuesday afternoon, but the price has appreciated from R41,89 a year ago.
“We remain focused on executing our strategy and driving long-term value for our stakeholders through prudent capital allocation, ongoing repositioning of the SA and EE portfolios, implementing sustainable solutions to reduce the impact of infrastructure challenges in SA and driving new and organic sustainable growth opportunities,” CEO Morné Wilken said in a statement.
In February 2026, Hyprop sold a 50% stake in Woodlands Boulevard in Gauteng for R790,5 million as part of its strategy to reduce exposure in the province, recycle capital for growth opportunities and participate in further upside from the centre as the majority shareholder.
“Both our SA and Eastern European portfolios continued to deliver inflation-beating results, underscoring the success of our repositioning strategy. We are now seeing the benefits of the strategic steps we have taken since 2019,” said Wilken.
Milestones for the 2025 year included reducing the loan-to-value to 31%, acquiring four core Eastern European centres, disposal of the sub-Saharan African portfolio, acquisition of Table Bay Mall, and the recent sale of 50% of Woodlands.
“This has positioned us to chase further earnings-enhancing and sustainable organic and new growth opportunities,” he said.
Over the past year, distributable income increased by 12,9% to R864m. Distributable income per share increased by 5,4% to 212,3 cents per share as the number of issued shares increased by 7%, following a successful capital raise in December 2025, which was multiple times oversubscribed.
Borrowings reduced to R13,8 billion from R14,7bn in June 2025, and the liquidity position was strong with R949m of cash and R2,3bn in available bank facilities. The loan-to-value (LTV) ratio improved to 31% from 33,6% in June 2025 and would further decrease to 29,6% after the Woodlands transaction.
Trading density in SA rose by 7,5% in the six months, significantly above the 4,3% increase in the same period in 2024, and tenants’ turnover rose by 5%, up from 4,8%. Foot count increased by 1,9%. The retail vacancy rate reduced to 3,1% from 4,2% at June 30, 2025, as most of the rightsizing of anchor tenants wasa completed and reclaimed space was being let to new tenants.
Highlights from Hyprop’s tenants included a flagship Incredible store and the first Hisense store in SA, both in Canal Walk; LEGO and Safari Collection as part of the Somerset Mall Phase 2 expansion, the opening of Checkers FreshX and PetShop Science at the beginning of August, and a first-of-its-kind Maison Deux at Hyde Park Corner.
The first Walmart store in Africa opened at Clearwater Mall in November 2025.
Capex projects underway in SA include the Phase 2 expansion and retiling project at Somerset Mall; Maison Deux store at Hyde Park Corner; solar-PV and energy projects at The Glen and Hyde Park Corner; new parking systems at Canal Walk and Clearwater Mall; and several tenant installations.
There are more projects in the planning stage, including a Phase 3 expansion at Somerset Mall, driven by strong tenant demand.
In the six months ended 31 December 2025, EE portfolio tenants’ turnover increased by 3.8%, while trading density rose by 3.6%. Demand for space remains exceptionally high, with a 0.2% vacancy rate in December 2025.
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