HYPROP INVESTMENTS LIMITED - Condensed consolidated interim results for the six months ended 31 December 2020

Condensed consolidated interim results for the six months ended 31 December 2020

HYPROP INVESTMENTS LIMITED
(Incorporated in the Republic of South Africa)
(Registration number 1987/005284/06)
JSE share code: HYP ISIN: ZAE000190724
Bond issuer code: HYPI
(Approved as a REIT by the JSE)
("Hyprop" or "the Company" or "the Group")
www.hyprop.co.za

CONDENSED CONSOLIDATED INTERIM RESULTS
FOR THE SIX MONTHS ENDED 31 DECEMBER 2020

Balance sheet strengthened and see-through LTV ratio reduced from
41.4% at 30 June 2020 to 38.8% at 31 December 2020:
- Reduction of R942 million in interest bearing debt, including
  $117 million of US Dollar equity debt
- All US Dollar equity debt ($289 million) settled over the last 18 months
- Retention of R777 million from 2020 distributions,
  post 31 December 2020

Diluted distributable income of 161 cents per share.

Covid-19 impact reduced distributable income by R244 million,
equivalent to 83 cents per share
- R112 million in rental discounts granted to tenants
- R113 million reduction in dividends from Hystead
- R19 million reduction in parking income in South Africa


                                               Unaudited 6 months                          Unaudited 6 months                Audited 12 months
                                                    December 2020                               December 2019                        June 2020
Net operating income (R'000)                              408 234                                     679 116                        1 268 285
Headline earnings per share (cents)                         114.6                                       329.9                            410.7
Basic loss per share (cents)                                (42.9)                                     (109.5)                        (1 332.4)
Distributable income per share (cents)                      186.1                                       335.6                            493.4
Diluted distributable income per share (cents)              160.6                                       335.6                            493.4
Net asset value per share (Rand)                            74.48                                       91.07                            76.09


Hyprop is a retail-focused REIT listed on the JSE. The Company currently has interests in a R45.4 billion portfolio of shopping centres
in South Africa, Eastern Europe and sub-Saharan Africa.


DIVIDEND DECLARATION

Given the ongoing uncertainty
related to Covid-19 and Hyprop’s
established objectives to reduce
debt and strengthen the balance
sheet, the Board considers it
prudent to defer any decision on
the declaration of a dividend to
shareholders until publication
of Hyprop’s annual results in
September 2021.


OUTLOOK AND PROSPECTS

In the short-term Hyprop will
continue to focus on preserving
cash and strengthening the balance
sheet through the following:

1. Utilising dividends declared
   by Hystead to reduce Euro
   dominated debt;

2. Disposing of the S-SA assets in
   line with the exit strategy and
   applying the net proceeds to
   settle debt;

3. Limiting capital expenditure
   to projects that are already
   committed and those that
   are a necessity;

4. Implementing the disposal of
   Atterbury Value Mart; and

5. Recycling assets that do not
   accord with the long-term
   strategy.

On a longer-term basis, the
Company will continue to
reposition the SA portfolio, increase
the dominance of the properties in
the European portfolio, and pursue
the non-tangible asset strategy.

The Hyprop team is committed to
creating long-term sustainable value
for all stakeholders, having regard
to prevailing market conditions and
industry risks. We remain focused
on our purpose of creating safe
environments and opportunities for
people to connect and have authentic
and meaningful experiences.

A third Covid-19 wave remains
a risk, as do the long-term
effects of the pandemic on an
underperforming local economy.
We anticipate further negative
rent reversions and increases in
costs, particularly administered
costs such as municipal and utility
charges, at rates exceeding CPI.
Consumer spending is expected
to remain under pressure and
consumer behaviour will continue
to evolve. We believe that our
strategy and positioning will enable
Hyprop to successfully navigate
these challenges.


BASIS OF PREPARATION

The condensed consolidated
financial statements for the six
months ended 31 December 2020
were prepared in accordance with
the JSE Listings Requirements
for condensed consolidated
results, the requirements of the
Companies Act of South Africa and
International Financial Reporting
Standards (IFRS) (including
specifically the SAICA Financial
Reporting Guides as issued by the
Accounting Practices Committee
and Financial Pronouncements as
issued by the Financial Reporting
Standards Council and IAS 34
Interim financial reporting).

All amendments to standards
that are applicable to Hyprop for
its financial year beginning 1 July
2020 have been considered. The
accounting policies applied in these
condensed consolidated financial
statements are the same as those
applied in the Group’s consolidated
financial statements for the year
ended 30 June 2020.

1 March 2021


Corporate information

Directors G.R. Tipper*† (Chairman), M.C. Wilken (CEO), B.C. Till (CFO), A.W. Nauta (CIO), A.A. Dallamore*†, K.M. Ellerine*, Z. Jasper*†, 
N. Mandindi*†, T.V. Mokgatlha*†, S. Noussis*†, S. Shaw-Taylor*† *Non-executive | †Independent
Registered office Second Floor, Cradock Heights, 21 Cradock Avenue, Rosebank, 2196 (PO Box 52509, Saxonwold, 2132) 
Transfer secretaries Computershare Investor Services Proprietary Limited, Rosebank Towers, 15 Biermann Avenue, Rosebank | PO Box 61051, 
Marshalltown, 2107 Company secretary Statucor Proprietary Limited Sponsor Java Capital 
Investor relations Lizelle du Toit t. +27 82 465 1244 e. lizelle@hyprop.co.za

This short-form announcement is the responsibility of the directors and is only a summary of the information contained in the full announcement.
The full announcement is available on the JSE website https://senspdf.jse.co.za/documents/2021/jse/isse/HYPE/HY2021.pdf and on the Company website
at http://www.hyprop.co.za/results/interims-2021/pdf/booklet.pdf. Copies of the full announcement may also be requested by emailing Lizelle du Toit
at lizelle@hyprop.co.za or at the Company’s registered office or at the office of the sponsor, at no charge, during office hours from Monday, 
1 March 2021 to Friday, 5 March 2021. Any investment decision should be based on the full announcement published on the Company’s website.
Date: 01-03-2021 07:05:00
Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE'). 
The JSE does not, whether expressly, tacitly or implicitly, represent, warrant or in any way guarantee the truth, accuracy or completeness of
 the information published on SENS. The JSE, their officers, employees and agents accept no liability for (or in respect of) any direct, 
indirect, incidental or consequential loss or damage of any kind or nature, howsoever arising, from the use of SENS or the use of, or reliance on,
 information disseminated through SENS.