Johannesburg - Hyprop, the professionally
managed JSE-listed property loan stock company specialising in prime
shopping centres, on Monday reported headline earnings of R147.6m for the first six months of 2009, a turnaround from the
R445m loss posted for the same period last year.
Headline earnings per combined unit were 88.8 cents for the six
months to end June 2009, versus a headline loss of 27.1 cents per
combined unit reported a year ago.
Revenue increased 18% from R367.8m to R434.1m over the six months with investment property income making up the
bulk of the company's earnings at R363m and straight-line
rental income almost doubling to R11.4m over the period.
Listed property securities income brought in R59.7m.
Net property income increased by 15.8% from R276.2m to
R319.8m and net operating income was up 8% from R252.2m to R272.3m.
On a comparative basis - excluding Stoneridge and Offices - total
revenue increased by 12% while property expenses grew by 17%, mainly
due to increases in municipal rates and electricity costs,
contributing to 10% growth in net property income.
Vacancies at end June 2009 increased to 4.4% from 3.3% at end
December mainly due to vacancies at Stoneridge.
Hyprop's other properties include Canal Walk, Hyde Park, The Glen
and The Mall of Rosebank.
Earnings per combined unit were 148.5 cents compared to last
year's loss per combined unit or 24.5 cents.
Hyprop declared an interim distribution of 161 cents per combined
unit, an increase of 7.3% on the distribution for the comparable period.
Current net borrowings of R1.16bn equate to a gearing
ratio of 12.1%.
Long-term loans of R1.35bn, representing 96% of total
debt, have been fixed for periods of between three and five years at
an average rate of 9.38%.
In addition Hyprop has R50m in floating debt.
Looking ahead, Hyprop said its properties have sustainability for
long-term investment.
The company's prime retail investments have proven resilient in
tough trading conditions and have enabled the portfolio to withstand
some of the pressures of the economic recession and declining
national retail sales.
Hyprop's board anticipates that, barring a further deterioration
in retail market
conditions, the company's distribution for the six months to end
December 2009 will be between 167 cents and 171 cents per combined
unit.
Shares Hyprop closed at R41.75 on the JSE on Friday.
- I-Net Bridge