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HYPROP INVESTMENTS LIMITED - Summarised Consolidated Audited Results for the year ended 30 June 2021

Release Date: 15/09/2021 08:05
Code(s): HYP HILB13 HILB11 HILB12 HILB08 HILB09 HILB10     PDF:  
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Summarised Consolidated Audited Results for the year ended 30 June 2021

(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")

Summarised Consolidated Audited Results
For the year ended 30 June 2021 ("FY2021")

Hyprop is a
retail-focused REIT listed on
the JSE. The Company currently
has interests in a R43.3 billion
portfolio of shopping centres in
South Africa, Eastern Europe and
sub-Saharan Africa.

Balance sheet strengthened and see-through LTV
ratio reduced from 41.4% at 30 June 2020 to 37.2% at
30 June 2021:

- R777 million of equity raised via dividend
  reinvestment alternative;
- Accelerated bookbuild raised R358 million;
- Valuation of the SA property portfolio decreased by
  R1.6 billion (5.9%);
- Settled the last $117 million of US Dollar equity debt
  relating to the African portfolio;
- Sale of Atterbury Value Mart implemented on
  2 July 2021, further strengthening the balance sheet
  and reducing the see-through LTV to 34.9%.

Ongoing progress in repositioning the
SA Portfolio:

- Opened new Checkers FreshX stores in the Rosebank
  and Woodlands malls;
- Commenced the upgrade of CapeGate's Checkers to
  a FreshX store;
- Zara secured at Canal Walk, a first for the
  Hyprop portfolio;
- Solar projects completed at all Gauteng malls;
- First of four self-storage facilities opened at Rosebank
- Opened the first SOKO District, part of the
  non-tangible asset strategy, at Rosebank Mall.

Covid-19 impact reduced distributable income by
R278 million, or 90 cents per share

- R159 million in rental discounts granted to tenants
- R119 million reduction in income from Hystead.

Distributable income reduced from 493.4 cents per
share to 336.5 cents per share.

Hystead has accepted an offer to sell Delta City in
Belgrade, Serbia for €115 million.

                                                     Audited                   Audited
                                     Year ended 30 June 2021   Year ended 30 June 2020
Net operating income (R'000)                         889 711                 1 268 285
Headline earnings per share (cents)                    327.7                     410.7
Basic loss per share (cents)                          (297.4)                 (1 332.4)
Dividend per share (cents)                         336.52921                 375.00000
Net asset value per share (Rand)                     62.96                       76.09

Outlook and Prospects

The emergence of new variants of Covid-19 will
impact the economies and trading conditions in most
jurisdictions in which the Group operates.

We are confident that the Group's strategy and key
priorities remain relevant, even in a prolonged Covid-19
environment, and will continue to focus on the following:

1. Completing negotiations and implementing the
   Hystead liquidity event;
2. Strengthening the balance sheet by:
   a. Retaining cash from the FY2021 distribution via
      the dividend reinvestment plan (DRIP);
   b. Reducing the Euro equity debt, and Hystead's
      in-country debt;
   c. Completing the disposal of Delta City Belgrade; and
   d. Recycling assets that do not accord with the
      Group's long-term strategy.
3. Repositioning the SA portfolio for sustainable
   future growth;
4. Increasing the dominance of the properties in the
   European portfolio; and
5. Pursuing the non-tangible asset strategy.

We remain focused on creating safe environments and
opportunities for people to connect and have authentic
and meaningful experiences, thereby creating long-term
sustainable value for all stakeholders.

Covid-19 remains a risk, as does the underperforming
local economy. Consumer spending is expected to
remain under pressure and consumer behaviour will
continue to evolve. While we anticipate further negative
rent reversions in South Africa in the short-term,
our repositioning strategies will enable Hyprop to
successfully navigate these challenges.

Until market conditions stabilise, the board anticipates
declaring an annual dividend on publication of the
Group's year-end results, having regard to the JSE's
minimum distribution requirements applicable to REITs,
capital expenditure, and other cash flow requirements,
and the objective of strengthening the balance sheet.
The Board will review the dividend payment frequency
and pay-out ratio as market conditions evolve.

Having regard to the current, weak South African
economic conditions and the uncertainty of the
continuing impact of Covid-19 on the Group's tenants,
shoppers, investments and other stakeholders,
the Board has resolved not to provide guidance on
distributable income and dividends for the financial year
ending 30 June 2022.


A dividend of 336.52921 cents per share for the year ended
30 June 2021 will be paid to shareholders, who will be
entitled to elect to reinvest the net cash dividend in
return for additional Hyprop shares through a DRIP.

The DRIP is in line with the Company's stated intention
to retain as much cash as possible for the 2020 and
2021 financial years, while still complying with the JSE's
distribution requirements applicable to REITs.

A circular in this regard is in the process of being
prepared and will be distributed to shareholders in
due course. A detailed announcement relating to the
dividend and the DRIP, including salient dates, the
discount to the market price at which shareholders will
be entitled to subscribe for additional Hyprop shares
and the tax treatment of the dividend and the DRIP, will
be released separately once the relevant regulatory
approvals have been obtained.

The board of directors of Hyprop may, in its discretion,
withdraw the DRIP should market conditions warrant
such action. Any such withdrawal will be communicated
to shareholders prior to the release of the DRIP
finalisation announcement on SENS.

Basis of preparation

The summarised consolidated results for the year ended
30 June 2021 were prepared in accordance with the JSE
Listings Requirements for summarised consolidated
results and the requirements of the Companies Act of
South Africa. The JSE Listings Requirements require
summarised consolidated results to be prepared
in accordance with the framework concepts and
the measurement and recognition requirements of
International Financial Reporting Standards (IFRS),
the SAICA Financial Reporting Guides as issued by
the Accounting Practices Committee and Financial
Pronouncements as issued by Financial Reporting
Standards Council, and as a minimum, to contain
the information required in terms of IAS 34 Interim
financial reporting.

All of the accounting policies applied in the preparation
of the Group financial statements are consistent with
those applied by Hyprop in its consolidated Group
financial statements for the prior financial year.
All amendments to standards that are applicable to
Hyprop for its financial year beginning 1 July 2020 have
been considered. Based on management's assessment,
the amendments do not have a material impact on the
Group's annual financial statements.

These summarised consolidated results for the year
ended 30 June 2021 have been extracted from the
audited consolidated and separate financial statements,
but have not been audited. The directors take full
responsibility for the preparation of the summarised
consolidated results and for ensuring that the financial
information has been correctly extracted from
the underlying audited consolidated and separate
financial statements.

Audited financial statements

KPMG Inc. has audited the consolidated and
separate financial statements. Key audit matters
considered by KPMG are the valuation of investment
property, valuation of investment in Hystead, and
recoverability of investment in joint venture: AttAfrica.
The auditor's report does not necessarily report on all
of the information included in this announcement.
Shareholders are therefore advised that, in order
to obtain a full understanding of the nature of the
auditor's engagement, they should obtain a copy of the
auditor's report, together with the underlying financial
information, from the registered office of the Company
or the Company's website.

15 September 2021

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.

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 and on the Company website at Copies of the full
announcement may also be requested by emailing Lizelle du Toit at or at the Company's registered office or at the office of the sponsor, Java Capital, 6th Floor,
1 Park Lane, Weirda Valley, Sandton, at no charge, during office hours from Wednesday 15 September 2021 to Tuesday, 21 September 2021. Any investment decision should be based
on the full announcement published on the SENS and on the Company's website.
Date: 15-09-2021 08:05:00
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