By Noxolo Majavu
Hyprop reported above-inflation growth across its South African and Eastern European retail portfolios, underlining the resilience of its consumer-focused strategy amid shifting shopping patterns.
The Reit said in an operational update for the six months ended December that tenants’ turnover and trading density increased across both regions, with particularly strong momentum during the crucial November and December period.
In South Africa, tenants’ turnover rose 5% year on year to R15.5bn, supported by a 7.5% increase in trading density. The performance was driven by Hyprop’s strong presence in dominant regional malls serving a resilient consumer base, the group said.
“November again emerged as the standout month, reflecting the continued pull-forward of consumer spending into Black Friday promotions. However, December growth remained solid, with turnover rising 4% year on year to R3.77bn, dispelling concerns that aggressive November discounting would materially cannibalise festive trading,” it said.
Foot count across the South African portfolio edged up 1.9% to 45.8-million visits, while vehicle count increased 3.1% to 11.6-million.
Hyprop’s Eastern European portfolio also maintained trading momentum, with steady growth in tenant sales reflecting strong demand for space in its prime centres. Trading picked up momentum towards the end of the year, as turnover accelerated in the final quarter.
While footfall in Eastern Europe declined 3% year on year, management pointed to higher spend per visit, reflected in the sustained improvement in turnover and trading density. Vehicle counts were broadly stable, ending the period down just 1.5%.
“Hyprop is well-positioned to capitalise on future growth opportunities through a disciplined diversification strategy. We leverage our experienced teams, along with the quality and resilience of our portfolios, to deliver superior, risk-adjusted total returns,” the group said.
The group said it is taking a proactive approach, aiming to grow its presence in key areas like the Western Cape and Eastern Europe, while making sure its Gauteng assets perform at their best to create long-term value.
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