2 days Ago
Retail centre owner Hyprop has reported distributable income of 370.4c a share for the financial year ended June 30, a reduction of 8.6% year-on-year, but better than previously anticipated.
In March, management warned shareholders there would be a 15% to 20% decrease in distributable income, owing to higher interest costs for longer, an increase in issued shares owing to the dividend reinvestment plan, further foreign exchange losses on its Nigerian properties and the acquisition of Table Bay Mall in South Africa. Hyprop attributed the better-than-expected strong operational performance from the South African and Eastern European portfolios, as well as improved cash management, lower hedging costs and reduced margins on refinanced borrowings, the impact of withholding the interim dividend and timing delays in capital projects, which all offset the higher interest costs. Management is bullish that the group is set for future growth as it delivers on a number of strategic priorities and anticipates an easing of the recent tough trading environment in the year ahead.
A final dividend of 280c apiece was declared in line with the dividend policy being 75% of the distributable income from the South African and Eastern European portfolios. In the year under review, Hyprop acquired Table Bay Mall for R1.68-billion.
The centre is said to be trading well while being integrated into the portfolio. Meanwhile, since the financial year-end, the group has signed binding legal agreements to dispose of its sub-Saharan Africa portfolio (centres in Nigeria and Ghana) to Lango Real Estate, in exchange for Lango shares. This will free Hyprop's management to.
.. Tasneem Bulbulia.
