Hyprop delivers strong operational performance
Hyprop delivers strong operational performance and is on track to meet growth in distributable income per share of 10% to 12%
Hyprop Investments, the retail-focused REIT with premier portfolios in South Africa and Eastern Europe, today announced a strong pre-close operational update for the five months ended 31 May 2026. The Group’s operational performance highlights the success of its focused strategy, operational excellence and ability to capitalise on new opportunities.
Key metrics are up in the South African portfolio
Across the SA retail portfolio, tenants’ turnover increased by 5.5%, while trading density grew by 4.4%. Foot count increased by 2.1%, underscoring the growing appeal of these centres. Retail vacancies are at an industry-beating 3.3% and cash collections rose to R1.7 billion over the five-month period.
In the Western Cape, Canal Walk (the Western Cape’s only super-regional shopping centre) continued its growth trajectory, driven by strong leasing momentum and high-profile store openings. Notable recent openings include Anta, True Religion, and Liverpool FC’s first African store. Since opening the retail portion of its Phase 2 expansion project in November 2025, Somerset Mall has welcomed several new brands, including Anta, Truworths, and Office London. The food and entertainment element of the Phase 2 project is progressing well. CapeGate is enhancing its retail offering through targeted upgrades and strategic tenant relocations, including an Edgars redevelopment project that entails rightsizing the Edgars store, expanding Sportscene, and introducing JD Sports and Freedom Adventure Park. Table Bay Mall, acquired in October 2023, has continued its strong growth trajectory, attracting a dynamic mix of retailers such as Faithful to Nature, MiMi-Q, and Krumble, and has executed meaningful upgrades.
In Gauteng, Hyde Park Corner welcomed Bootlegger Coffee, Marc’s by Marc Jacobs Café, the first-ever permanent Marc Jacobs café and the first designer café on the African continent, as well as UNIQ. Rosebank Mall has reduced its vacancy rate from 2% to 1.3%. Recent store openings include FARO, Wellness Warehouse, Lupis, and Livo. Clearwater Mall has completed several projects, including a dedicated e-hailing zone, installation of new upper-level parking systems and infrastructure, and new ClearVu fences around the centre’s boundary. At Woodlands, the passage widening project and reconfiguration of the area around Pick n Pay are progressing well and on track for completion in November 2026. With key upgrades including new tiling, lighting and store facelifts, the project will unlock valuable new retail space, enhance the shopper experience, and drive increased foot traffic. The Glen added an Ai-CHA kiosk (an international ice cream and beverage brand) and is relocating the Dial-a-Bed store to accommodate the Value Co expansion project.
Eastern European portfolio builds on sturdy foundations
Hyprop’s four retail centres in the capital cities of Bulgaria, North Macedonia and Croatia are cementing their status in the region. Tenants’ turnover increased by 4.4%, while trading density rose by 4.2%. Foot count increased by 5.0%. Demand for space remains exceptionally high, with a 0% vacancy rate in May 2026.
City Center one West is strengthening its market position through strategic tenant upgrades and space optimisation. Jeordie’s (men’s fashion brand) expanded into a new flagship store, and Shoetique opened in the former Jeordie’s space. Deichmann’s store revamp, the completion of a 9,000 m² retiling project in March 2026, and the planned bathroom upgrade project, due to be completed at the end of October 2026, will enhance the centre’s appeal.
At City Center one East, the highlight for the period was Sephora launching its first Croatian store in April, attracting a record number of shoppers. Skopje City Mall has commenced a major 12-month redevelopment project for Inditex, creating expanded flagship stores with the latest Inditex concepts for all its brands. At The Mall, new food offerings (Cake Collection, which replaced Nedelya Pastry Shop) and fashion brands (Obuvki’s new concept and the addition of Storm) have improved the tenant mix.
Morne Wilken, CEO of Hyprop Investments, commented: “We are encouraged by the continued resilience of our portfolios in South Africa and Eastern Europe, which is evident in our latest operational update. Our strategy to focus on high-quality retail centres, optimising our tenant mix, and disciplined capital management is delivering pleasing results.”
Expansion in Eastern Europe
In May 2026, Hyprop announced the acquisition of Galleria Burgas in Bulgaria, in line with its diversification strategy and leveraging regional macroeconomic tailwinds. The transaction aligns with Hyprop’s strategy to increase exposure in Eastern Europe, a region the Group has identified as offering superior risk-adjusted returns. Fully funded by Hyprop’s available cash and proceeds from the sale of the 50% undivided share in Woodlands Boulevard, the acquisition is expected to enhance earnings and support long-term value creation. The transaction is still awaiting regulatory approval, which is progressing well.
Hyprop makes progress on environmental projects
Hyprop’s energy management strategy is aimed at delivering operational resilience and long-term value. The solar-PV project at The Glen was completed in June 2026, while the projects at CapeGate and Hyde Park Corner are nearing completion. At Canal Walk and Somerset Mall, the solar-PV projects have commenced, and together they will significantly increase the SA portfolio’s total solar capacity. At several centres, solar-PV is being integrated with battery energy storage systems, also known as BESS – a critical step in derisking centres’ operations, reducing grid dependency, managing energy costs, and ensuring business continuity for tenants. These investments directly support Hyprop’s ESG objectives and position the assets for long-term growth.
Back-up potable water storage projects are underway at all four Western Cape centres, providing increased capacity to safeguard against regional supply risks. These installations are targeted for completion by August 2026.
Balance Sheet Strength and Capital Management
The Group’s liquidity position remains strong, with R1.7 billion in cash and R2 billion in available bank facilities as of 31 May 2026 and the Group’s LTV has been reduced to below 30% following the disposal of the 50% undivided share of Woodlands Boulevard. Recent refinancing of bond and loan facilities at lower margins, combined with strong investor demand, has further reduced the cost of debt. The Group’s disciplined approach to interest rate hedging ensures continued financial resilience.
On track to meet guidance
Looking ahead to year-end, Hyprop remains on track to deliver growth in distributable income per share (“DIPS”) for the year ending 30 June 2026, in line with its guidance of 10% to 12% growth in DIPS, supported by operational momentum and a strong balance sheet.
“Hyprop’s robust financial position and consistently improving operational performance are a direct result of our focused strategy and strong execution. Looking ahead, we are well-positioned to seize opportunities and drive continued growth for our stakeholders”, concluded Wilken.

























































