HYPROP INVESTMENTS LIMITED Annual Results
presentation
year ended 30 June 2023
2
Agenda
Headlines and | South Africa | Eastern Europe | Sub-Saharan Africa | Financial | In Closing |
Key Metrics | Results |
Headlines3
Creating spaces and connecting people
Group
- Distributable income up 24% to R1.451 billion
- R500 million new capital raised through the FY2022 DRIP
- Distributable income per share increased by 18% to 405.2 cents
- LTV ratio at 36.3% below internal target of 40%
- Reduced Euro borrowings by €36 million in line with debt reduction strategy
- Healthy liquidity position with R2.3 billion of available facilities (before 2023 dividend)
- MSCI ESG rating upgraded to 'AA' from 'A'
South Africa
- Independent valuation on the SA portfolio increased to R23 billion
- Tenant turnover increased by 12.8%
- Trading density up 11.8%
- Average foot count grew by 5.2%
- Retail vacancies reduced to 1.2%
- Improved rent reversions to -7% in the last 6 months vs -13% in the first 6 months
- Successfully revamped Clearwater food court
- Second phase of solar PV complete at Woodlands and Rosebank
Eastern Europe
- Independent valuation on the EE portfolio increased to €574.6 million
- Tenant turnover up 15.9%
- Trading density increased by 16.9%
- Average foot count expanded by 14.3%
- Retail vacancy remains at 0.3%
- Positive rent reversions of 4.5%
- The ex-Massimo Dutti space now occupied by Intersport and Sinsay took over the ex-Zara premises
- Complete bathroom upgrade at The Mall in Sofia
Sub-Saharan Africa
- Ikeja City Mall remains fully let and achieved a 28% decline in arrears year-on-year
- Orca Deco's flagship store opened at Accra Mall in the ex-Game space
- Received approval from the Competition Commission in Nigeria for the disposal of Gruppo Investments which owns Ikeja City Mall
- Vacancies (excl. Game) reduced by 30%
Non-Tangible Assets
- Internalised physical district into Hyprop portfolio as a differentiator
- Technology platform "Nter" developed further functionalities that manage tenants, vacancies and performance
- Nter secured third-party users
- Indlu started using Nika's technology to manage payments of their development loans at Cashbuild stores
Key metrics | 4 |
Group
Distributable income (Cps)/(R'm) | 18% |
500 | *405.3 |
400 | *127.3 | |
300 | 29.5 | 12.6 |
*19.4 | ||
200 | 342.5 | 7.4 |
297.8 | ||
100 | ||
354.5 | 312.9 | *258.6 |
0 | 2022 | 2023 |
2021 | ||
June |
Europe additional income
Effect of realised forex loss in SSA Effect of additional shares
SA interest re Europe and interest rate increases SA and Africa
IFRS NAV per share (R)
70
65
60
55
50
4562.96
40
2021
IFRS NAV | Effect of shares | Distributable income (Group) | ||||
24% | ||||||
4.1% | ||||||
3.01 | ||||||
66.40 | ||||||
60.88 | 63.39 | 1 090.1 | 1 170.8 | 1 450.9 | ||
2022 | 2023 | 2021 | 2022 | 2023 | ||
June | June |
Key metrics | 5 |
Group |
Interest cover ratio (ICR) | IFRS ICR | Cash ICR |
3.2 | 2.8 | 3.8 | 2.8 |
2022 | 2023 | 2022 | 2023 |
June |
Loan to value % | Fully consolidated | SA REIT LTV |
36.4% | 36.3% | 36.9% | 36.1% |
2022 | 2023 | 2022 | 2023 |
June |
South Africa
Investment property
62%
Distributable income
62%
Total GLA
71%
Rosebank Mall, Gauteng
SA operations - rolling 12 months | 7 |
Historic statistics updated for most recent available information |
Turnover (R'm) | |||
25 000 | 12.8% | 11.1% | |
13.9% | |||
20 000 | 12.0% | 1.8% |
- 000
-
000
5 000
0 | 18 073 | 18 397 | 20 954 | 23 637 | 23 743 |
2020 | 2021 | 2022 | 2023 | July | |
June | 2023 | ||||
Effort ratio - portfolio (%)
12.0%
1.6% 0.0%
10.0% | 1.5% | ||||
0.9% | 0.8% | ||||
8.0% | 11.1% | 11.0% | 9.6% | 8.7% | 8.6% |
2020 | 2021 | 2022 | 2023 | July | |
June | 2023 | ||||
Effort Ratio Calculation: (Basic Rent + Operating Costs + Rates + Marketing) ÷ (Turnover)
Trading density (R/m2/month)
4 000
3 500 | 11.8% | 10.2% | |||
11.2% | |||||
3 000 | 4.7% | ||||
3.7% | |||||
2 500 | |||||
2 000 | 2 864 | 2 757 | 3 066 | 3 427 | 3 440 |
2020 | 2021 | 2022 | 2023 | July | |
June | 2023 | ||||
Rent ratio - portfolio (%)
16.0% | |||||
12.0% | 0.3% | 0.1% | |||
1.3% | 0.8% | 0.7% | |||
8.0% | |||||
4.0% | |||||
0.0% | 9.7% | 9.6% | 8.3% | 7.5% | 7.5% |
2020 | 2021 | 2022 | 2023 | July | |
June | 2023 | ||||
Rent Ratio Calculation: (Basic Rent + Operating Costs) ÷ (Turnover)
Excluding Atterbury Value Mart.
The 12 months ended July numbers show the growth on the corresponding prior year period.
SA operations - rolling 12 months
Historic statistics updated for most recent available information
Average monthly foot count (m) | Spend per head | ||||||
7.0 | 5.2% | 4.6% | 320 | ||||
6.5 | 13.4% | 300 | |||||
7.0% | |||||||
280 | |||||||
6.0 | 8.8% | 260 | |||||
240 | 1.7% | ||||||
5.5 | |||||||
220 | |||||||
6.2 | 5.7 | 6.1 | 6.4 | 6.5 | 241 | ||
5.0 | 2020 | 2021 | 2022 | 2023 | July | 200 | 2020 |
June | 2023 | ||||||
8
7.2% 6.3%
6.4%
11.6%
269 | 286 | 307 | 306 |
2021 | 2022 | 2023 | July |
June | 2023 | ||
Excluding Atterbury Value Mart.
The 12 months ended July numbers show the growth on the corresponding prior year period.
SA operations - 5 year trends
Turnover (m) 27 000
25 000 | 12.0% | 1.8% | 13.9% | 12.8% |
23 000 | ||||
21 000 | ||||
19 000 | ||||
17 000 | ||||
15 000 | ||||
2019 | 2020 | 2021 | 2022 | 2023 |
(12 months ending June) | ||||
Average portfolio escalation (%) | ||||
10 | ||||
9 | ||||
7.9 | ||||
8 | 7.5 | 7.0 | ||
7 | 6.8 | 6.6 | ||
6 | ||||
5 | ||||
2019 | 2020 | 2021 | 2022 | 2023 |
Average escalation of all leases excluding turnover - based leases
9 | ||||
Rental income (m) | ||||
2 500 | ||||
2 300 | 11.9% | 4.8% | 4.3% | 4.1% |
- 100
1 900
1 700
1 500
20192020202120222023
(12 months ending June)
* 100% Hyprop share of Property Portfolio
Turnover rent (m)
70
3.2% | 10.5% | 32.2% | 28.3% |
60
50
40
30
20
Jun 2019 | Jun 2020 | Jun 2021 | Jun 2022 | Jun 2023 |
(12 months) * 100% Hyprop share of Property Portfolio
SA leasing activity - year-to-date
Reversions | Positive | Flat | Negative |
10
Retail | |
Renewal Reversion Rate* | -9.7% |
(weighted average) | |
* Relates to 12.0% of Portfolio GLA | |
New Deal Reversion Rate^ | -4.7% |
(weighted average) | |
^ Relates to 4.6% of Portfolio GLA | |
Overall Reversion Rate# | -9.3% |
(weighted average) | |
# Relates to 16.6% of Portfolio GLA | |
Renewal Retention Rate | 86% |
(by number of tenants) |
Office Total
-6.3%-9.3%
-9.3%-8.4%
-6.9%-9.0%
74% 85%
70%
60% | ||||
50% | ||||
40% | ||||
30% | ||||
20% | ||||
10% | 17% | 61% | 43% | 57% |
22% | ||||
0% | ||||
Renewal Reversion | New Deal Reversion |
28% 12% 60% Overall Reversion
Vacancy (m2)
40 000 | ||
35 000 | ||
30 000 | ||
25 000 | ||
20 000 | 0.8% | 10.7% |
10 000 | ||
15 000 |
5 000
0
Retail | Office | Total | |||||
3.8% | |||||||
1.4% | 2.4% | 13.3% | 3.1% | 2.4% | 23.9% |
2.0% | 30.3% | 3.9% | 1.2% | 33.9% | 3.4% |
Lease expiry profile (m2) (% of total GLA) | 26.6% | |||
200 000 | ||||
150 000 | 16.0% | 12.3% | ||
100 000 | 9.3% | |||
50 000 | 3.4% | |||
0 |
22.8%
9.6%
2019 | 2020 | 2021 |
June |
20222023
Vacancy | Monthly | 2024 | 2025 | 2026 |
WALE: | 2.5 years |
2027 | 2028 + |
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Disclaimer
Hyprop Investments Limited published this content on 07 November 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 13 November 2023 11:08:03 UTC.
