Our opinion on the current state of HYP
Hyprop (HYP) is a prominent real estate investment trust (REIT) specializing in high-quality shopping malls primarily located in South Africa, with some interests in Eastern Europe and Northern Africa. It boasts ownership of several well-known South African shopping malls, including Rosebank, Canal Walk, Hyde Park, and Clearwater. The company has faced challenges due to reduced consumer spending, leading to lower trading densities. Currently, the share is trading at nearly half of its net asset value (NAV) of R63.39, which we believe presents an attractive buying opportunity.
Under the leadership of the new CEO, Morne Wilken, Hyprop is focusing on innovative strategies such as building rooftop gardens and offering shared workspaces to entice customers back to its shopping malls.
In its financial results for the year ending on June 30, 2023, the company reported an 18% increase in distributable income per share and a loan-to-value (LTV) ratio of 36.3%. Hyprop noted, "Tenant turnover increased by 12.8% and 15.9% in SA and EE, respectively, retail vacancies remained at very low levels of 1.2% in SA and 0.3% in EE, and trading densities grew by 11.8% in SA and 16.9% in EE."
In a pre-close update on November 30, 2023, Hyprop reported that during the four months leading up to October 31, 2023, the vacancy rate was at 1.4%, and foot traffic increased by 6.8%. The company also highlighted developments at Somerset Mall, where Checkers Fresh X and Pick n Pay revamped their stores. Additionally, "Cinema Connect," a new compact food offering, was set to launch in the third quarter of 2024 to support the Ster Kinekor reconfiguration project.
In a trading update on the 2023 festive season, Hyprop reported tenant turnover growth of 8% in South Africa, with trading density up by 7.5%. Foot traffic also increased by 4.1%.
From a technical perspective, the share found support at 2562c in November 2023 and has since been on an upward trajectory. This positive trend makes it a favorable buying opportunity in our assessment.
Under the leadership of the new CEO, Morne Wilken, Hyprop is focusing on innovative strategies such as building rooftop gardens and offering shared workspaces to entice customers back to its shopping malls.
In its financial results for the year ending on June 30, 2023, the company reported an 18% increase in distributable income per share and a loan-to-value (LTV) ratio of 36.3%. Hyprop noted, "Tenant turnover increased by 12.8% and 15.9% in SA and EE, respectively, retail vacancies remained at very low levels of 1.2% in SA and 0.3% in EE, and trading densities grew by 11.8% in SA and 16.9% in EE."
In a pre-close update on November 30, 2023, Hyprop reported that during the four months leading up to October 31, 2023, the vacancy rate was at 1.4%, and foot traffic increased by 6.8%. The company also highlighted developments at Somerset Mall, where Checkers Fresh X and Pick n Pay revamped their stores. Additionally, "Cinema Connect," a new compact food offering, was set to launch in the third quarter of 2024 to support the Ster Kinekor reconfiguration project.
In a trading update on the 2023 festive season, Hyprop reported tenant turnover growth of 8% in South Africa, with trading density up by 7.5%. Foot traffic also increased by 4.1%.
From a technical perspective, the share found support at 2562c in November 2023 and has since been on an upward trajectory. This positive trend makes it a favorable buying opportunity in our assessment.
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The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.