Sumary of Canal Walk and Hyde Park Corner owner says its malls are slowly recovering:
- Photo: Photo24 The average monthly footfall in Hyprop’s malls is 7.6% lower than in 2020.But the company is ‘repositioning’ its malls to improve foot traffic and ultimately sales and rental income.
- But this repositioning will lead to lower rental income growth in the next two years as Hyprop changes its tenant mix.
- Because of this slow recovery, the rental discounts the company is still giving its tenants and reduced net property income that the group generated because of Covid-19 saw the valuation of Hyprop’s SA property portfolio decrease by R1.6 billion in the year to 30 June.
- But the company has commenced several initiatives to strategically reposition its malls to improve footfall and help its tenants boost sales, which should translate into better rental income for it.
- And during that time, the company told investors to expect relatively low rental income growth as the repositioning will require changes to the tenant mix of each mall.
- But the group said that this “improvement” in the tenant mix should result in income growth in the long run.