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Interim results for the six months ended 31 December 2022
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
CONDENSED CONSOLIDATED INTERIM RESULTS
for the six months ended 31 December 2022 ("HY2023")
Distributable income
- 36% increase in Group distributable income to R728 million
- 30% increase in distributable income per share to 203 cents
Robust operational results
- Strong trading metrics reported by the South African ("SA") and Eastern European
("EE") portfolios
- Tenant turnover increased by 15.5% and 14.1% in SA and EE respectively, bearing
testament to our repositioning initiatives
- Low retail vacancy in SA (1.5%) and EE (0.6%) indicates strong demand for retail
space at our centres
- Trading density increased by 14.4% in SA and 15% in EE
- Vacancy rate in the sub-Saharan Africa (excluding SA)("SSA") portfolio reduced from
10.1% (FY2022) to 7.8%
Balance sheet strength and liquidity maintained
- R500 million additional capital raised through the FY2022 DRIP
- €29 million reduction in Euro borrowings in line with debt
amortisation/reduction strategy
- Strong liquidity position with R1.4 billion of cash and R2 billion of
available bank facilities at 31 December 2022
- LTV ratio increased from 36.4% in June 2022 to 37.2% in
December 2022, primarily due to the FY2022 dividend/DRIP and
the weakening of the Rand against the Euro
- Refinancing agreed on maturing loans of €210 million, and
proposals on R1.46 billion and €60 million being adjudicated
ESG impact
- Next phase of solar-PV being installed at Woodlands Boulevard,
Rosebank Mall and Clearwater Mall
- Water management remains a priority with additional Propelair
toilets installed at Woodlands and CapeGate
- The Hyprop Foundation partnered with SAPOA to provide
financial support to students enrolled in property-related degrees
Unaudited Unaudited Audited
31 December 2022 31 December 2021 30 June 2022
Net operating income (R'000) 665 323 477 724 1 121 371
Headline earnings per share (cents) 226.1 200.1 442.1
Basic earnings per share (cents) 209.0 271.1 406.7
Distributable income per share (cents) 203.4 156.9 342.5
Net asset value per share (Rands) 59.47 58.97 60.88
Dividend policy
Our dividend policy is based on our key objectives of maintaining and
repositioning our portfolios, strengthening the balance sheet, and reducing the
LTV ratio, while meeting shareholder expectations and the minimum distribution
requirements for REITs. The policy envisages paying an annual dividend to
shareholders on the finalisation of the Group's annual audited results which
the Board believes is prudent in light of the deteriorating infrastructure in SA,
high inflation and energy costs in EE and unavailability of US Dollars in SSA.
Accordingly, no interim dividend has been declared.
Outlook and prospects
Despite the difficult global economic environment, and unique challenges
in each of the regions in which we operate, the improved trading metrics of
our portfolios demonstrate the strength and relevance of our centres in their
markets. This, in conjunction with the Group's strong balance sheet, liquidity
and support from investors and financiers, has created a solid base from which
the Group will continue to execute its key strategic objectives of generating
sustainable returns for shareholders, strengthening the balance sheet and
reducing debt, and allocating capital prudently to diversify risk.
We are pursuing the following seven strategic initiatives:
1. Finding and implementing sustainable solutions to reduce the impact of load
shedding and its consequent effects
2. Repositioning the SA portfolio
3. Retaining the dominance of the EE portfolio
4. Reviewing the portfolios annually to evaluate the case for recycling of assets
and to consider growth opportunities
5. Protecting value in the SSA portfolio pending an exit
6. Developing non-tangible assets aligned to our tangible assets and/or the
property sector
7. Ensuring our balance sheet is robust
We expect to deliver steady growth in distributions from the SA portfolio, while
retaining income from the EE and SSA portfolios to strengthen the balance sheet.
Basis of preparation
The condensed consolidated financial statements for the six months ended
31 December 2022 were prepared in accordance with the JSE Listings
Requirements for condensed consolidated results, the requirements of the
Companies Act of South Africa and International Financial Reporting Standards
(IFRS) (including specifically the SAICA Financial Reporting Guides as issued by
the Accounting Practices Committee and Financial Pronouncements as issued
by the Financial Reporting Standards Council and IAS 34 Interim financial
reporting). All amendments to standards that are applicable to Hyprop for its
financial year beginning 1 July 2022 have been considered.
The accounting policies applied in these condensed consolidated financial
statements are the same as those applied in the Group's consolidated financial
statements for the year ended 30 June 2022.
16 March 2023
Corporate information
Directors S. Noussis (Chairman) *^, M.C. Wilken (CEO) §, B.C. Till (CFO) §, A.W. Nauta (CIO) §, A.A. Dallamore*^,
L. Dotwana*^, K.M. Ellerine*, R.J.D. Inskip*^, Z. Jasper*^, T.V. Mokgatlha*^, B.S. 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
This short-form announcement is the responsibility of the directors and is only a summary of the information contained
in the full announcement and does not contain 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/HY2023.pdf and on
the Company website at https://www.hyprop.co.za/results/interims-2023/pdf/booklet.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
or at the office of the sponsor, at no charge, during office hours from Friday, 17 March 2023 to Friday, 24 March 2023.
Any investment decision by investors and/or shareholders should be based on the full announcement published on SENS
and the Company's website as a whole.
Date: 16-03-2023 04:45:00
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