JSE-listed Hyprop on Friday posted a 12.1% hike in dividend to 695.1c a share for the financial year ended June 30.
The real estate investment trust reported that distributable earnings benefited from the inclusion of R101.8-million in income from the investments in South-Eastern Europe, up from R24.6-million in 2016.
Revenue and distributable earnings from investment property in South Africa increased by 7.1% and 6.1%, respectively.
The group’s Clearwater, Hyde Park Corner, CapeGate and Somerset Mall assets performed well during the year, with weighted average growth in distributable earnings of 8.6%.
The Glen's income, however, was negatively affected by construction work and limited rent reductions.
The group’s vacancy rate increased from 1.1% of total rentable area in the 2016 financial year to 2.4% in the financial year under review.
Hyprop also disposed of noncore properties for R867-million during the year under review, which has improved the overall quality of the portfolio and reduced exposure to the higher-risk office sector.
Meanwhile, distributable earnings from investments in sub-Saharan Africa reduced to R57-million in the 2017 financial year, from R83.7-million in 2016, largely owing to the exclusion of distributable earnings from Ikeja City Mall, in Lagos, Nigeria; the replacement of tenants at lower rentals at Manda Hill Centre, in Lusaka, Zambia; and the rand’s appreciation against the dollar.
Trading conditions within Hyprop's investments in South-Eastern Europe shopping centres, held through UK-based Hystead, remained positive, with stable foot count and turnover growth.
Demand for space remains strong, with no vacancies as at June 30, and plans to extend the centres are progressing.
Hyprop expects to achieve dividend growth of between 7% and 9% for the 2018 financial year.