The JSE-listed specialist shopping centre Real Estate Investment Trust (REIT) saw investment property income increase from 1.02 billion rand for the six months ended 31 December 2012 to 1.11 billion rand for the same period in 2013.
“Investment property was independently valued using the discounted cash flow method. Excluding the effect of the acquisition of Somerset Mall, investment property increased in value by 4.9 per cent, resulting in a fair value adjustment of 658 million rand. The increase in value was driven by income growth, supported by strong demand for quality shopping centres,” [DATA HYP:Hyprop Investments Limited] said.
“In line with Hyprop’s strategy to become a dominant African shopping centre REIT, the company intends to invest up to three billion rand in sub-Saharan Africa, excluding South Africa, over the next five years. Of the three billion rand, one billion rand is currently allocated to Atterbury Africa for developing and owning shopping centres in select African countries.”
Revenue increased from 1.12 billion rand in 2012 to 1.17 billion rand in 2013. Straight-line rental income accrual however, decreased from 23 million rand to 19 million rand.
Profit before taxation decreased from 1.10 billion rand in the 2012 period to 856 million in 2013 and headline earnings decreased from 1.10 billion rand to 625 million rand.
“Hyprop, with its large, quality assets, strong contractual lease escalations and sound balance sheet is well- positioned to withstand the impact of the challenging economic environment on consumer spend,” it said.
“The investment strategy into sub-Saharan Africa, excluding South Africa, has been enhanced with the acquisition of African Land. Hyprop will continue to invest in large, quality shopping centres, improve the tenant quality across the portfolio and dispose of non-core assets, subject to market conditions.”