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HYPROP INVESTMENTS LIMITED
(Incorporated in the Republic of South Africa)
(Registration number 1987/005284/06)
JSE share code: HYP ISIN: ZAE000190724
Bond issuer code: HYPI
(Approved as a REIT by the JSE)
(“Hyprop” or “the Company” or “the Group”)
www.hyprop.co.za
SUMMARISED CONSOLIDATED
AUDITED RESULTS
for the YEAR ended 30 JUNE 2023
and GUIDANCE for the year ending 30 June 2024 24% increase in distributable income
to R1.451 billion
18% increase in distributable income
Growth in distributable income per share to 405.2 cents
Portfolios continue to deliver high quality ESG initiatives
operational performances on track
Continued improvement in trading metrics across our South
African (“SA”) and Eastern European (“EE”) portfolios provide • MSCI upgraded Hyprop’s ESG rating to ‘AA’ from ‘A’,
positive endorsement of our repositioning and active asset recognising our improved corporate governance practices and
management initiatives. green building initiatives
The second phase of the Gauteng solar PV project was
•
Tenant turnover increased by 12.8% and 15.9% in SA and EE,
• completed at Woodlands Boulevard and Rosebank Mall
respectively • We saved 39 078 kl of water following the installation of
Retail vacancies maintained at very low levels of 1.2% in SA
• Propelair toilets
and 0.3% in EE Implementation of our zero-waste strategy reduced average
•
Trading densities grew by 11.8% in SA and 16.9% in EE
• organic waste diverted from landfills from
65 tons/month to 60.25 tons/month
• SA portfolio’s foot count up 5.2%, while EE experienced an
impressive 14.3% increase •
The Hyprop Foundation together with our centres contributed
a total of R5.4 million towards its various initiatives
Strong balance sheet and liquidity
• R500 million new capital raised through the FY2022 DRIP
€36 million (R730 million) reduction in Euro borrowings in line with debt amortisation/reduction strategy
•
Strong liquidity position with R1.2 billion of cash and R2.3 billion of available bank facilities, before the 2023 dividend payment
•
• LTV ratio decreased to 36.3% in June 2023
Refinanced over R5 billion of borrowings in FY2023, and R2 billion post year end at lower margins than previously achieved
•
Audited Audited
June 2023 June 2022
Net operating income (R’000) 1 229 170 1 121 371
Headline earnings per share (cents) 393.9 442.1
Basic earnings per share (cents) 431.9 406.7
Distributable income per share (cents) 405.2 342.50
Dividend per share (cents) 299.29970 293.64090
Net asset value per share (Rands) 63.39 60.88
Dividend policy shares and the tax treatment of the dividend and higher interest costs as borrowings are refinanced,
the FY2023 DRIP, will be released separately and interest rate hedges mature and are replaced at
Our dividend policy is based on our key objectives once the relevant regulatory approvals have been the prevailing high interest rates. Navigating South
of maintaining and repositioning our portfolios, obtained. The board of directors of Hyprop may, Africa’s energy supply challenges has come at great
maintaining a healthy balance sheet, and in its discretion, withdraw or amend the FY2023 cost to the Group and our tenants, with no imminent
reducing the LTV ratio, while meeting shareholder DRIP should market conditions warrant such action. solution in sight.
expectations and the minimum distribution Any such withdrawal will be communicated to In the light of the above, Hyprop expects a reduction
requirements for REITs. As a result of changes shareholders prior to the release of the FY2023 DRIP in distributable income per share for the year
in the composition of the Group’s distributable finalisation announcement on SENS. ending 30 June 2024 of approximately 10% to 15%
income since FY2022 and feedback received mainly due to higher interest costs and based on the
from shareholders, the dividend policy previously following key assumptions:
communicated has been refined as follows: Outlook and prospects
• Forecast investment property income is based
• payment of an interim dividend equivalent to 90% The improved trading metrics of our portfolios on contractual rental escalations and
of the distributable income from the South African demonstrate the strength and relevance of our market-related renewals;
portfolio, commencing for the interim period centres in their markets. This, in conjunction with the
ending 31 December 2023; and • Appropriate allowances for vacancies and
Group’s strong balance sheet, liquidity and support
rent reversions have been incorporated into
• payment of a final dividend on finalisation of the from investors and financiers, has created a solid
the forecast;
Group’s annual audited results, such that the total base from which the Group will continue to execute
distribution for the financial year is equivalent to its key strategic objectives of generating sustainable • Maturing borrowings are refinanced at prevailing
75% of the Group’s distributable income from the returns for shareholders, maintaining a strong interest rates and margins;
SA and EE portfolios. balance sheet and reducing debt, and allocating • No further deterioration in the SA economy
capital prudently to diversify risk. or loadshedding;
The balance of the distributable income will be
retained to manage borrowings and fund capital We are pursuing the following six strategic initiatives: • No major economic, socio-political or other
expenditure in the normal course. 1. Driving the implementation of sustainable regional/global disruptions occur;
A dividend of 299.3 cents per share (R1.07 billion solutions to reduce the impact of loadshedding • No major corporate and tenant failures occur;
in aggregate) will be paid to shareholders for the and its consequent effects in SA
• No corporate transactions occur, other than the
year ended 30 June 2023. Subject to obtaining the 2. Repositioning the SA and the EE portfolios to disposal of Ikeja City Mall by 30 June 2024;
necessary regulatory approvals, shareholders will retain and grow market share
be entitled to elect to reinvest the net cash dividend • Exchange rates (which have not been hedged) are
3. Reviewing the portfolios annually to evaluate the in line with those at 30 June 2023; and
in return for additional Hyprop shares through a case for recycling of assets, increase our exposure
dividend reinvestment alternative (“FY2023 DRIP”), to favourable geographies and consider new • The FY2023 DRIP is supported by shareholders
limited to a maximum aggregate reinvestment growth opportunities and R500 million of new capital is raised.
amount of R500 million. Shareholders should note that the guidance above
4. Protecting value in the SSA portfolio pending
Amounts raised from the FY2023 DRIP will be used an exit is subject to change, certain assumptions may not
to fund capital expenditure beyond the Group’s materialise, plans may change, and unanticipated
normal requirements, primarily to ensure energy 5. Ensuring our balance sheet is robust events and circumstances may affect the Group
security for the SA portfolio, and new opportunities 6. Developing non-tangible assets aligned to our strategy or the actions it takes.
being pursued by the Group, with the Company tangible assets and/or the property sector. The guidance has not been reviewed or reported on
meeting the minimum distribution requirements Despite the difficult global economic environment, by the Company’s auditors.
applicable to REITs. and unique challenges in each of the regions in KPMG Inc. has audited the Company and Group
A detailed announcement relating to the dividend which we operate, we are cautiously optimistic that financial statements. Their unqualified audit report is
and the FY2023 DRIP, including salient dates, any the peak of inflation and interest rates will soon be available from the registered office of the Company
discount to the market price at which shareholders reached. The Group’s financial performance will or on the Company’s website.
will be entitled to subscribe for additional Hyprop however be negatively impacted in the short term by 20 September 2023
This short-form announcement is the responsibility of the directors and is only a summary of the information contained in Hyprop’s consolidated audited
annual financial statements for the year ended 30 June 2023 (“the full announcement”) and does not include full or complete details.
The full announcement has been released on SENS and is available on
the JSE website at https://senspdf.jse.co.za/documents/2023/jse/isse/HYPE/FY2023.pdf and on
the Company website at https://www.hyprop.co.za/results/annuals-2023/pdf/financial-statements.pdf.
Copies of the full announcement may also be requested by emailing Boitumelo Nkambule at boitumelo@hyprop.co.za
or at the Company’s registered office. Any investment decision should be based on the full announcement published on the Company’s website.
Hyprop’s summarised consolidated audited results for the year ended 30 June 2023, which includes directors’ commentary, have been
published on the Company’s website at https://www.hyprop.co.za/results/annuals-2023/pdf/booklet.pdf
Corporate information
Directors S Noussis (Chairman)*†, MC Wilken (CEO)§, BC Till (CFO)§, AW Nauta (CIO)§, AA Dallamore*†, L Dotwana*†, KM Ellerine*, RJD Inskip*†, Z Jasper*†,
TV Mokgatlha*†, BS Mzobe*† §
Executive | *Non-executive | †Independent
Registered office Second Floor, Cradock Heights, 21 Cradock Avenue, Rosebank, 2196 Transfer secretaries Computershare Investor Services Proprietary Limited,
Rosebank Towers, 15 Biermann Avenue, Rosebank, 2196 Company secretary Fundiswa Nkosi Sponsor Java Capital, 6th Floor, 1 Park Lane, Wierda Valley, Sandton,
2196 Investor relations Boitumelo Nkambule e. boitumelo@hyprop.co.za
