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Fairvest delivers strong distribution growth

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Fairvest delivers strong distribution growth outperforming guidance

  • 11.2% growth in distribution per B share to 48.15 cents, exceeding the guidance of between 8.0% and 10.0%
  • Distribution of 142.57 cents per A share
  • A payout ratio of 100% maintained
  • Like-for-like net property income increased by 5.8%
  • Vacancies reduced to 4.1%
  • Rental reversion at 4.8%
  • NAV per A share grew 13.8% to R18.35
  • NAV per B share grew 6.2% to R5.16
  • Loan-to-Value reduced to 25.6%

Fairvest Limited announced its results for the year ended 30 September 2025, reporting an annual distribution of 142.57 cents per A share and 48.15 cents per B share, surpassing the guidance provided to the market. Chief Executive Officer Darren Wilder commented that: “These results demonstrate the disciplined execution of a clear strategy coupled with a strong operating platform that will continue to deliver future growth.”

 Strong operational performance continues

Fairvest has delivered another year of excellent progress, reducing vacancies to 4.1% from 4.3%, and achieving a like-for-like net property income growth of 5.8%. Positive rental reversions improved from 3.6% to 4.8%. The company experienced positive letting activity, concluding 537 new deals and 504 renewals during the year, achieving an overall tenant retention rate of 83%. Average gross rent increased by 5.2% to R134.18 per square metre. The weighted-average lease escalation across the portfolio held steady at 6.7%, while the weighted-average lease term extended to 30.1 months. The Group continued to invest in its property portfolio during the reporting period, with total capital expenditure of R288.9 million, including R33.8 million for further solar initiatives. Property expenses were exceptionally well-managed, with growth limited to 2.6%, despite being primarily driven by above-inflation municipal cost increases. Fairvest received a dividend of R123.3 million for the year from its 23.6% stake in Dipula Properties Limited.

Portfolio adjustments reflect the strategic vision

Fairvest acquired seven retail properties during the year, valued at R1.15 billion: Thembalethu Square, Shoprite Manguzi, Ulundi Shopping Centre, and Nquthu Shopping Centre have transferred, while Eyethu Junction, Jozini Mall, and Tugela Ferry Mall are expected to transfer in the new financial year.  Three disposals of industrial and office assets valued at R99 million were also concluded. Two have transferred and one is expected to transfer in January 2026. These transactions are well aligned with Fairvest’s strategy to create a retail-only fund focused on non-metropolitan retail assets situated near commuter nodes and transport interchanges, with strong national anchors that cater to previously underserviced markets throughout South Africa. It aims to achieve this by improving the quality of and recycling non-core assets. Retail assets already represent close to 71% of Fairvest’s revenue and value, with offices and industrial assets comprising the remainder.

Investment in township fibre infrastructure sets a new standard

Fairvest is the market leader in the REIT sector in integrating digital infrastructure assets with traditional retail property assets. The company has invested R477 million in a subsidiary, Onepath Investments, which acquires de-risked fibre infrastructure in townships. This infrastructure is leased to a fibre network operator to supply high-quality internet to township homes and communities. Digital inclusion for underserviced communities opens up opportunities in education, employment, entrepreneurship, and entertainment, helping these communities thrive. This not only strengthens Fairvest’s core retail market but also gives the company access to data, insights, and new retail opportunities within its existing portfolio. The rental income also provides an attractive, accretive dividend yield for Fairvest, exceeding 12% of invested capital.

Significantly improved debt metrics

At year-end, the Group had loans amounting to R3.9 billion, with an average maturity of 2.5 years. After deducting cash and cash equivalents, the loan-to-value (LTV) ratio was 25.6%, down from 33.3% last year. This LTV ratio remains comfortably below the Group and portfolio LTV covenant limit of 50% for its facilities, with an interest cover ratio of 3.1 times, which is significantly above the 2 times coverage required by its funders.

The weighted average interest rate for the year declined to 9.05%. As of September 2025, Fairvest had approximately R1.3 billion in cash and available undrawn debt facilities for growth initiatives. The Group has interest rate swaps of R3.7 billion, with 93.6% of its debt hedged. These swaps have a weighted average maturity of 1.1 years.

Environmental, Social and Governance projects advancing at pace

The Group has made significant progress in its integrated backup power strategy to ensure business continuity during adverse conditions. Currently, approximately 47% of the portfolio GLA has access to either partial or complete backup power.

A further R33.8 million was invested in renewable energy this year, with 52 solar plants now fully operational, and a total installed capacity of 23.3MWp. These plants generated clean, renewable energy valued at R60.3 million, meeting about 14.3% of the combined portfolio’s electricity needs during the period. An additional 10 plants with a capacity of 2.7 MWp are at various stages of feasibility assessment, approval, and implementation. Ten fuel saver systems have been installed, integrating solar plants with generators to reduce diesel consumption and increase renewable energy use during power outages.

A series of water management and conservation projects is underway, including 24 operational groundwater harvesting plants and the strategic deployment of smart monitoring devices across 36 properties to facilitate early leak detection.

A positive outlook with increased guidance

The Group starts 2026 strong, supported by solid performance and strategy execution. Portfolio fundamentals are stable with low vacancies, better tenant quality, and strong like-for-like net property income growth across sectors. Improvements in the national electricity grid, easing inflation, and moderating interest rates have boosted operating conditions. However, ongoing municipal service issues and the broader macroeconomic environment remain risks.

The portfolio remains resilient and positioned for growth. We continue to transition towards retail, with a commitment to entering acquisitions and disposals only at the right price. Distributable earnings per B share are expected to rise by 9%-11% in 2026, with A share dividends growing by the lesser of 5% or CPI, in line with the Memorandum of Incorporation. The Board will keep the dividend payout ratio at 100%, subject to bi-annual review.

 

Vukile delivers strong first half and upgrades full-year guidance

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Vukile Property Fund (JSE: VKE) delivered a sterling set of results for the six months to 30 September 2025, outperforming guidance and upgrading full-year expectations. Vukile increased its half-year dividend per share (DPS) by 9% and increased its guidance for the full 2026 financial year to growth of at least 9% in both DPS and funds from operations (FFO) per share.

“These results show what a focused strategy, disciplined execution and strong operating platforms can deliver in the right environments, while also laying the foundation for further growth,” says Laurence Rapp, CEO Vukile Property Fund.

Vukile, the leading customer-centric specialist retail real estate investment trust (REIT), holds a total of R54 billion in property assets. Approximately two-thirds of its assets and net property income are generated in two of Europe’s major economic drivers, Spain and Portugal, through its 99.6%-held subsidiary, Castellana Properties. Its South African portfolio of township, rural, urban and commuter malls serve some of the country’s most compelling consumer markets.

Vukile’s operational strength is evident across its well-located, high-performing shopping centres. Both portfolios delivered excellent performance, with like-for-like net operating income growth (NOI) of 10% in South Africa and 8.7% in Iberia.

The South African portfolio continues to deliver consistent outperformance, benefiting from driving operational efficiencies and an improved macroeconomic environment

“Strong top-line growth is supported by proactive cost management and sustainability initiatives, encompassing both electricity and water, that operate as a growing profit centre for Vukile,” notes Rapp, adding, “Structural changes, particularly around electricity supply, are most certainly making the operating environment better than it’s been in a long time and this is starting to bear fruit.”

The retail portfolio value increased by 5.9% to R17,7 billion. Vacancies remain exceptionally low at 1.8%, supported by active letting with rental on the new deals increasing by a pleasing 5%. The portfolio continues to deliver positive rental reversions, edging upwards by 2.5%. Nearly 85% of space is let to national retailers.

Increased promotional activity driven by Vukile’s shopper-first approach boosted footfall and sales growth. The total portfolio recorded trading density growth of 5.4%, with the township and rural portfolio outperforming at 5.9%. Portfolio footfalls grew by 1.9%.

The redevelopment of Mall of Mthatha has added significant value to Vukile’s South African portfolio, transforming the centre into a top-tier retail destination. Since being acquired in May 2024, the mall’s turnaround has delivered measurable gains with the asset value up by nearly 40%.

Sustainability as a profit centre

Vukile further reduced its South African portfolio cost-to-income ratio from 15.3% to a record-low 12.5%, reflecting the benefit of additional solar PV installations and targeted efficiencies.

The retail REIT’s solar PV rollout in South Africa has been highly successful, boosting margins and advancing its path to carbon neutrality. Vukile has a solar PV capacity of 38.2MWp across 41 installations, adding 2.23MWp during the six months. A further 4.42MWp is presently under construction, progressing towards a total target of 10.6MWp for the year, at attractive yields.

Castellana achieves market-leading results

Spain continues to be a major economic engine in Europe, with GDP projected to grow by up to 2.9% in 2025. The economy is being driven by strong household consumption, a resilient labour market with rising wages and the lowest unemployment in nearly 20 years, and record-breaking tourist arrivals and spending. Inflation is easing gradually, and population growth is mainly from skilled immigration.

Portugal’s economy is on track to grow by up to 2.4% in 2025, driven by rising private consumption and historic high employment levels with wages expected to rise. Inflation has eased to 2.4%, while household finances continue to improve, with higher savings and lower debt. Tourism is heading for a record year, boosting demand in key regions such as Lisbon and Madeira.

“The Iberian portfolio continued to perform in a league of its own delivering outstanding operating metrics. Our newly acquired Portuguese assets have been successfully integrated, with value-add projects identified set to drive further momentum,” reports Rapp.

Castellana’s EUR1.8 billion portfolio remains effectively fully let, with marginal vacancies of 1.3% and more than 95% of space let to blue-chip international and national tenants.  It achieved positive rental reversions and new lets of 7.5% (9.55% in Portugal, 7.12% in Spain), representing impressive growth in real terms, and well ahead of economic growth in both cases. The portfolio has a weighted average lease expiry of 8.9 years. Excellent trading metrics saw footfall up 3.5% and sales increasing by 4.2%.

Balance sheet strength and capital allocation

Vukile has significant liquidity of nearly R7.65 billion available to deploy into suitable growth opportunities. It has an active pipeline of financially accretive and strategically aligned deals in Iberia and South Africa, which it expects to close by mid-2026.

GCR upgraded Vukile’s credit rating to AA+(za) with a stable outlook, while Fitch upgraded Castellana’s rating to BBB, with both promotions signalling confidence in strategic direction, financial strength and operational excellence.

The REIT continues to focus on recycling non-core assets as a way of funding further expansion in its core markets, with a number of deals in progress.

In South Africa, it is acquiring 50% in Chatsworth Centre from Sanlam, which will remain a co-owner, with a R620 million investment representing an 8.75% yield. The 42,400sqm dominant centre in the KwaZulu-Natal community of Chatsworth is a strategically aligned, high-performing asset and expected to transfer in December 2025. Vukile is also well advanced in due diligence for another township mall acquisition.

Strength through strategic execution

Vukile entered the second half of its financial year in a strong position, well placed to deliver its upgraded guidance and continue its market-leading performance.

“Following our successful capital raise and ongoing strategic asset rotation, we’re ready to unlock an exciting pipeline of deals and projects. We’re focused on value-add opportunities, operational excellence and disciplined growth, always aligned with our strategy. Our goal is to deliver sustainable, real earnings growth for our shareholders across all time horizons,” concludes Rapp.

 

Hyprop’s Clearwater Mall secures South Africa’s first Walmart Store

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Hyprop-owned centre brings international retail giant to West Rand, creating 80+ jobs

Clearwater Mall Secures South Africa’s First Walmart Store

Clearwater Mall, owned and managed by Hyprop Investments, will become home to South Africa’s first Walmart store, marking the American retail giant’s debut entry into the local market.

The announcement transforms Clearwater Mall’s retail offering and introduces Walmart’s distinctive “Every Day Low Prices” model to South African consumers. Unlike traditional sale-driven retail, shoppers will benefit from stable pricing across thousands of products year-round, eliminating the need to wait for promotional periods.

“Being selected as the location for South Africa’s first Walmart store demonstrates the strength of our retail offering and our commitment to the West Rand community,” said Kelly Belman, General Manager of Clearwater Mall. “The creation of more than 80 new jobs adds real economic value to our region, which makes this announcement even more meaningful.”

The store will occupy the mall’s upper level, featuring wide aisles, clear signage and bright lighting. Product categories span fresh and frozen foods, groceries, health and beauty products, clothing, baby essentials, homeware, electronics, toys and seasonal items.

Walmart’s product strategy emphasises local partnerships, with the majority of merchandise sourced from South African suppliers. Select international offerings will include the Beautiful range by actress Drew Barrymore – a collection of stylish kitchen appliances designed to bring premium quality to everyday cooking.

Public excitement has been building steadily since the announcement, with the store set to create more than 80 positions ranging from shop floor roles to management.

“The addition of Walmart is expected to increase foot traffic and create positive ripple effects for neighbouring businesses within the centre,” concluded Belman.

The Walmart Clearwater store will be located at Clearwater Mall upper level, Hendrik Potgieter Road and Christiaan de Wet Road, Strubens Valley, Roodepoort. The official opening date will be announced in the coming weeks.

Redefine embarks on R70 million Park Meadows upgrade

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Redefine Properties embarks on R70 million Park Meadows Shopping Centre upgrade to elevate shopper experience

 Redefine Properties is investing R70 million into the redevelopment of Park Meadows Shopping Centre in the East Rand, which will add more choice and make visits easier for the community. New retailers are joining the line-up and access improvements are under way, reinforcing Park Meadows as a convenient, everyday destination.

By enhancing convenience, refreshing facilities, and strengthening the tenant mix with the introduction of new anchor tenants, Redefine is ensuring that Park Meadows remains attractive to shoppers and tenants alike. This measured reinvestment forms part of Redefine’s broader strategy to actively manage and future-proof its convenience-led retail assets.

Expanding the retail mix

At the heart of the upgrades is the arrival of Woolworths Food, expanding the centre’s grocery offer with premium products and everyday essentials. This will be complemented by WCafé, Woolworths’ coffee and light meals concept, and WCellar, its dedicated wine and liquor format. Food Lover’s Market is also expanding to include a liquor section, giving customers more choice under one roof. Collectively, these additions bring fresh energy to the tenant mix and broaden the reasons to visit Park Meadows.

 Facilities upgrade for easier visits

Alongside the retail changes, Park Meadows is investing in improvements that support access, flow and the overall shopping environment. Works include a new entrance to ease movement in and out of the centre, speciality parking bays to better accommodate larger vehicles and a refreshed building façade that creates a more modern, welcoming look.

The upgrades are being delivered in carefully managed phases to minimise disruption so shoppers can continue to enjoy a seamless experience throughout.

“Park Meadows has been a cornerstone shopping destination for the East Rand community for many years,” says Leon Kok, Chief Operating Officer at Redefine. “This investment is about aligning the centre with how people want to shop today: conveniently and efficiently, with access to the right mix of retailers. By introducing anchors like Woolworths and expanding Food Lover’s Market, together with improvements to access and comfort, we are helping to keep Park Meadows relevant, resilient and a pleasure to visit.”

 Strengthening Redefine’s retail portfolio

The Park Meadows upgrade supports Redefine’s strategy to actively manage and enhance convenience-led retail assets in line with evolving consumer expectations. It also reflects wider trends in the retail sector, where centres that combine everyday essentials with premium experiences are best positioned to remain relevant and competitive. By investing in accessibility, quality and a balanced tenant mix, Redefine aims to sustain footfall and trading performance while creating value for shoppers and tenants.

 About Park Meadows

Situated in the heart of the East Rand, Park Meadows Shopping Centre brings together a balanced mix of national retailers and speciality stores that serve the daily needs of surrounding communities. With an accessible layout and a growing selection of food, grocery and lifestyle tenants, the centre remains a trusted choice for families and professionals.

 

Vukile’s Retail Academy expands into Daveyton Mall

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Vukile Property Fund (JSE: VKE), the specialist consumer-led retail real estate investment trust (REIT), has launched a new multi-tenant emporium at Daveyton Mall as part of the next phase of its game-changing Vukile Retail Academy. The project brings fresh, community-driven retail experiences to local shoppers while helping small businesses grow into sustainable enterprises.

Now in its third year, the Vukile Retail Academy continues to deliver on its founding aim: providing access to formal retail for promising entrepreneurs. Participants receive rent-free premises, fit-out support and hands-on mentorship. The initiative forms part of Vukile’s wider commitment to inclusive growth, tenant diversity and shared opportunity across the retail ecosystem.

Matching retail strategy with community needs is at the heart of Vukile’s singular business model. Its popular, high-performing shopping centres – all 33 of them in South Africa and the 20 retail assets abroad in Spain and Portugal – serve as platforms for local growth in each location. They do this by supporting entrepreneurs, integrating cultural identity, and fostering loyalty through authentic engagement. This customer-centric, community-first approach is changing retail landscape.

“We’re invested in more than shopping centres. We’re invested in the communities they serve. The success of our centres is grounded in understanding local needs, and meeting and exceeding them,” says Laurence Rapp, CEO of Vukile Property Fund. “With a customer-first approach, we co-create retail spaces and experiences that genuinely reflect and serve their unique communities while celebrating local talent, culture, community and innovation. The Vukile Retail Academy is a tangible expression of that philosophy.”

A programme of proven impact

 Launched in 2022, the Vukile Retail Academy has already made measurable impact. The first intake of eight entrepreneurs received 1,035 sqm of retail space to trade from across four shopping centres, along with tailored business and operational support. Mentorship focused on developing a resilient business mindset, enhancing store operations and building customer engagement strategies

The results speak volumes. From the 2023 Dobsonville cohort, Fakizinto Concepts and Zanwabo Cakes became full-time tenants. In 2024, four businesses from Randburg Square – Lonja Beauty Studio, Edenvinne, Vero’s Cake and Jeleni & Phindi Art Studio – have also joined the formal tenant mix, underlining the Vukile Retail Academy’s role in long-term tenant development.

“We’re seeing dreams become sustainable businesses,” says Itumeleng Mothibeli, MD SA at Vukile. “At the heart of the Vukile Retail Academy is a belief in people and potential. This programme is about removing barriers, nurturing talent and actioning our deep commitment to building the next generation of retailers, who will shape the future of South African retail.”

A new shared-format concept

 This year, the Vukile Retail Academy introduces an emporium-style space at Daveyton Mall, bringing five small businesses under one roof. The shared space allows entrepreneurs to share costs, test products and grow visibility in an animated, high-footfall retail setting.

The not-to-be-missed up-and-coming brands in the new emporium, are:

  • Seven Heartbeats: A cultural lifestyle brand blending contemporary fashion with traditional African design.
  • Cossen: African-inspired fashion and footwear with live shoemaking experiences.
  • Thesis Lifestyle: A Soweto-born streetwear brand celebrating township pride.
  • GameOn.Africa: A tech-driven edutainment hub promoting digital learning and innovation.
  • PeaPrido Elegance Events: A Daveyton-based events company delivering personalised, high-quality experiences.

Some of these businesses are expanding from existing markets or online platforms. Each comes with its own story, contributing fresh energy and relevance to the mall’s offering.

Daveyton Mall, first opened in 1993, is one of South Africa’s first township malls. It was recently upgraded and extended by Vukile and stands as a modern reflection of the colourful heritage of its community. The new design celebrates local culture through architectural features, murals and art installations. This culturally rich environment creates a powerful platform for a retail experience that truly belongs to its people.

Reflecting its role as a community anchor, the mall’s redevelopment included significant local participation, resulting in a retail centre that does more than serve the community; it reflects and empowers it. Its trailblazing new emporium of entrepreneurs extends this ethos.

Building a fresh retail ecosystem

 At Vukile, retail is about people before products. The Vukile Retail Academy reflects its longer-term ambition to help shape a retail sector that mirrors the depth and potential of South Africa’s entrepreneurial talent.

“This flagship initiative is rooted in our commitment to building a retail ecosystem where local talent thrives and communities feel seen, supported and proud. It’s about creating lasting partnerships for a better South Africa,” adds Rapp.

Hyprop’s dominant retail centres maintain their growth trajectory

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Hyprop, the JSE-listed specialist retail fund, reported strong performance for the five months ended 31 May 2025. In its pre-close update, the Group expressed satisfaction with the significant progress it has made so far, positioning itself for further growth in the near to medium term.

“Our sturdy performance during the period reflects the dominance and resilience of our portfolios in South Africa and Eastern Europe despite geopolitical challenges,” CEO Morné Wilken said. “We continue to look beyond the short term for organic and new growth opportunities to deliver value for all our stakeholders.

“In line with our growth and diversification strategy, we recently announced our intention to make a voluntary offer for a controlling stake in MAS plc to expand our footprint in the Eastern European market, for which we have raised R808 million via a book build. We believe the MAS plc transaction could be a game changer for Hyprop and will give us access to new countries in the region, namely Romania and Poland. However, before proceeding with the transaction, we must meet certain conditions, with one key condition being approval from our shareholders.

“If this transaction does not proceed, we can effectively deploy these funds into reducing debt in the short term, as well as for asset management initiatives, organic growth opportunities, further solar-PV projects and new investments within Hyprop’s expansion strategy.”

Hyprop is strongly positioned to make investments, with R1.2 billion of cash and R2.2 billion in available bank facilities, after receipt of the capital raise proceeds. The cash injection took the LTV ratio down from 36.3% at 31 December 2024 to 34.2%.

Since the Group embarked on its new strategic journey in 2019, it has made significant progress, including optimising its EE portfolio, settling dollar equity debt in the sub-Saharan Africa portfolio, and selling the sub-Saharan Africa portfolio in return for shares in Lango, a pan-African real estate investment company. In the same period, Hyprop reduced its LTV from a peak of 52%, shaved its euro equity debt from €403 million to €87 million, simplified its structure, improved its credit rating, and continuously invested in enhancing the attractiveness and sustainability of its centres in South Africa and Eastern Europe.

SA and EE centres maintain attractiveness

In the South African portfolio, tenant turnover rose 7% in the five months ended 31 May 2025 compared with the same period in 2024 while trading density increased by 10.2%. At 31 May 2025, retail vacancies were 3.9%, primarily due to Edgars’ rightsizing its stores in the portfolio, which provides flexibility to secure new tenancies to meet shoppers’ demands. The weighted average reversion rate remains in positive territory at 2.9%, and the retail new deal reversion rate was very pleasing at 13.5%.

All the centres have made good progress with letting and projects. Here are some of the highlights:

In the Western Cape, Canal Walk is pleased to see that Edgars is performing well in the new rightsized space, which includes a world-class fragrance and cosmetics offering. Overall, leasing activity has been positive, with office demand increasing significantly. At Somerset Mall, the Phase 2 expansion of the centre is progressing well, and terms have been agreed with several stores which will occupy the expanded area, including Game, Computer Mania, Total Sports, a variety of athleisure and affordable luxury brands such as New Balance, Burnt, Curve Gear, and Napapijri, an international outdoor apparel brand. At CapeGate, the development of satellite offices around the centre on a leasehold basis is still in the early stages, but it is gaining traction and already attracting potential tenants.

In Gauteng, Rosebank Mall enhanced its tenant mix by adding six new stores: Cannafrica, One Stop Travel & Tours, Drip4Life (IV drip experts), Glow Theory (Korean beauty store), John Craig and Cajees (a watch and accessories retailer). Hyde Park Corner will be significantly enhanced in August with the opening of a new Checkers FreshX store. At Woodlands, the Pick n Pay supermarket has rightsized from 5 600m² to 3 636m² and a new lease agreement has been signed with a franchisee. The Glen completed its egress and ingress project in April and is currently refurbishing its exterior signage.

In Eastern Europe, tenant turnover increased by 3.5% and trading density rose by 4.0%, despite a decline in foot count of -3.3% mainly due to non-trading Sundays in Croatia and recent store boycotts related to rising food prices. Despite these challenges, tenant demand remains robust, as reflected in the modest 0.1% vacancy rate at 31 May 2025.

In Croatia, City Center one East and City Center one West continued to broaden their retail offerings. At The Mall in Bulgaria, various projects have been completed to enhance the sustainability and efficiency of the centre: upgrading the lighting system, replacing the water meters to enable remote reading, and replacing the roof structures over the parking ramps with more durable material. Recent highlights at Skopje City Mall include the grand openings of Ehoreca, the official Nespresso reseller in North Macedonia, and the new Gerry Weber mono-brand store that opened in February 2025.

Enhancing energy, water and waste resilience

Hyprop is focusing on solar-PV installations at its centres and is taking the necessary steps to add a further phase at The Glen. Meanwhile, CapeGate, Somerset Mall and Canal Walk are beginning their initial phases of solar projects. In June 2025, the Group will issue a request for proposals to the energy wheeling market to enhance both existing and new solar-PV installations. Once these solar-PV and wheeling energy projects are completed, they are expected to supply more than 60% of the SA portfolio’s energy requirements. Additionally, the total carbon emissions of the SA portfolio, relative to the 2019 baseline which was aligned with Science-Based Targets, will be below the carbon reduction targets set for 2030.

The three-day backup tanks and pumps for potable water have been installed at all Gauteng centres, with similar initiatives set to start soon in the Western Cape. The organic waste recycling initiatives have proven highly effective, with five centres (Canal Walk, CapeGate, Somerset Mall, The Glen and Woodlands) achieving net zero waste status.

Looking ahead

“Our focus is on creating retail spaces that connect people by providing excellent retail experiences for our tenants and shoppers while unlocking value through initiatives within our existing portfolios in South Africa and Eastern Europe,” Wilken said.

“We will continue to pursue both new and organic growth opportunities in our preferred geographies (being the Western Cape and Eastern Europe), reposition the SA and EE portfolios to maintain their dominance and retain and grow market share, annually review our portfolios and recycle capital where appropriate, implement sustainable solutions to reduce the impact of the infrastructure challenges we face in South Africa, and ensure our balance sheet remains robust.

“Hyprop is confident of delivering strong growth in the coming financial year through improved operational performance of its portfolios, including benefits from solar and other energy projects anticipated to come on stream, a reduction in interest costs and the benefits from deploying the additional R808 million of capital, even in the absence of the MAS transaction,” Wilken added.

Hyprop expects to release its results for the six months to 30 June 2025 on or about 16 September 2025.