JSE-listed retail-focused real estate investment trust (Reit) Hyprop Investments says it remains on track to deliver growth in distributable income per share (DIPS) of 10% to 12% for the financial year ending on June 30.

In a pre-close operational update on the five-month period to end-May, the company says its liquidity position is strong, with R1.7-billion in cash and R2-billion in available bank facilities.

Recent refinancing of bond and loan facilities at lower margins, combined with strong investor demand, has further reduced the cost of debt.

The group’s loan-to-value has decreased to below 30%, following the disposal of the 50% undivided share of Woodlands Boulevard.

In May, Hyprop announced that it would acquire shopping centre Galleria Burgas, in Bulgaria. This transaction is in line with the Reit’s diversification strategy and its intention to leverage regional macroeconomic tailwinds.

The transaction aligns with Hyprop’s strategy to increase exposure in Eastern Europe, which it has identified as offering superior risk-adjusted returns.

The Galleria Burgas transaction is fully funded by Hyprop’s available cash and proceeds from the sale of the 50% undivided share in Woodlands Boulevard, in South Africa, and the acquisition is expected to enhance earnings and support long-term value creation.

The transaction is still awaiting regulatory approval, which is progressing well, the company reports.

Further, in its South Africa retail portfolio, tenants’ turnover increased by 5.5%, while trading density grew by 4.4% and foot count increased by 2.1%, which shows the growing appeal of these centres.

Retail vacancies in South Africa are 3.3% and cash collections rose to R1.7-billion over the five-month period.

In the Western Cape, Canal Walk continued its growth trajectory, driven by strong leasing momentum and high-profile store openings.

Additionally, Somerset Mall has welcomed several new brands since opening the retail portion of its Phase 2 expansion project in November 2025, Hyprop says.

CapeGate is enhancing its retail offering through targeted upgrades and strategic tenant relocations. Table Bay Mall, which was acquired in October 2023, has continued its strong growth trajectory, attracted a mix of retailers and executed meaningful upgrades.

In Gauteng, Rosebank Mall has reduced its vacancy rate from 2% to 1.3% with recent store openings. Clearwater Mall has completed several projects, including a dedicated e-hailing zone, installation of new upper-level parking systems and infrastructure, and new ClearVu fences around the centre’s boundary.

At Woodlands, the passage widening project and reconfiguration of the area around Pick n Pay are progressing well and on track for completion in November.

With key upgrades, including new tiling, lighting and store facelifts, the project will unlock valuable new retail space, enhance the shopper experience, and drive increased foot traffic, Hyprop says.

In Eastern Europe, Hyprop’s four retail centres in the capital cities of Bulgaria, North Macedonia and Croatia are cementing their statuses in the region. Tenants’ turnover increased by 4.4%, while trading density rose by 4.2%, and foot count increased by 5%.

Demand for space remains exceptionally high, with a 0% vacancy rate in May.

In Croatia, City Center One West is strengthening its market position through strategic tenant upgrades and space optimisation. The revamp of the Deichmann store, the completion of a 9 000 m² retiling project in March and the planned bathroom upgrade project, due to be completed at the end of October, will enhance the centre’s appeal.

In Macedonia, Skopje City Mall has started a major 12-month redevelopment project to create expanded flagship stores for fashion retailer Inditex.

Meanwhile, Hyprop’s energy management strategy is aimed at delivering operational resilience and long-term value.

The solar PV project at The Glen was completed in June, while the projects at CapeGate and Hyde Park Corner are nearing completion.

At Canal Walk and Somerset Mall, solar PV projects have started, and will significantly increase the South African portfolio’s total solar capacity.

Solar PV is being integrated with battery energy storage systems at several centres, and this is a critical step in derisking centres’ operations, reducing grid dependency, managing energy costs, and ensuring business continuity for tenants.

These investments directly support Hyprop’s environmental, social and governance objectives and also position the assets for long-term growth.

Back-up potable water storage projects are under way at all four Western Cape centres, which will provide increased capacity to safeguard against regional supply risks. These installations are targeted for completion by August.

“We are encouraged by the continued resilience of our portfolios in South Africa and Eastern Europe, which is evident in our latest operational update. Looking ahead, we are well-positioned to seize opportunities and drive continued growth for our stakeholders,” says Hyprop Investments CEO Morne Wilken.