Specialised shopping centre real estate investment trust (Reit) Hyprop has advised that it expects its distributable income a share to be between 326c and 346c for the financial year ended June 30.
This, the company said on August 30, is between 147c and 167c, or between 30% and 34%, lower than the 493.4c a share for the 2020 financial year.
The decrease in distributable income a share was attributed to the impact of Covid-19 on Hyprop’s South African, sub-Saharan African and Eastern European operations and, in particular, a decrease in dividends received from Hystead.
Additionally, Hyprop said the impact of negative rent reversions in Hyprop’s South African portfolio, as well as the higher interest costs owing to converting dollar-denominated debt to rand-denominated debt, contributed to the decrease.
The effect of an additional 53-million shares being issued between January and May this year also had an impact, the group noted.
No dividend for the period has been announced yet.
As a result of members of the Hyprop team being affected by Covid-19, Hyprop’s audited results for the year have been delayed and will be released by September 17.