Hyprop Investments Limited (HYP) Earnings Call Transcript & Summary

Good morning, and welcome to Hyprop's Financial Results Presentation for 2026. We had an excellent financial year. Thank you to the shareholders for your ongoing support, and a big thank you to all the high HYperformers for your dedication and hard work over the last few years. Hyprop is a specialist retail fund with one of the best retail portfolios in South Africa. We create spaces and connect people. And the way we do it is by owning, managing and redeveloping dominant retail centers in key economic nodes in South Africa and Eastern Europe. I will be covering the headlines, review the last year's priorities, then I will hand over to Wayne Abegglen, who will give us an update on the operational performance in South Africa. Rabia Shihab will present the operational performance of Europe, Brett Till will present the financial results, and I will handle the outlook. Our distributable income has increased by 13.7% to ZAR 1.7 billion. We have met the upper end of our guidance with our distributable income per share increasing by 11.7% to ZAR 4.23 per share. Given the increase in the payout ratio to 82.5% and a good financial performance, our total dividend increased by 14.4% to ZAR 3.51 per share. The total dividend would be ZAR 2.32 per share, I mean, the final dividend. We had 2 very successful capital raises, ZAR 400 million in December last year and ZAR 739 million post year-end in July. In terms of the balance sheet, the net asset value per share has increased by 6.7% to ZAR 65.62. We reduced the group's LTV to 28.5% LTV and Europe LTV was reduced to 37.8%. We increased our unencumbered properties from ZAR 8.1 billion to ZAR 9.4 billion, and the interest cover ratio was improved to 3.1x cover. At the end of the financial year, we had a very strong liquidity position with ZAR 1.7 billion in cash and ZAR 2.1 billion in undrawn banking facilities. We sold a 50% undivided share in Woodlands Boulevard, and this transaction achieved 3 strategic objectives. We reduced our exposure in Gauteng, recycled some capital to reinvest into new and organic growth opportunities, retained a majority share in the mall and participate in the future upside as the surrounding catchment area densifies. In line with our diversification strategy, we acquired Galleria Burgas in Bulgaria, which was successfully implemented on the 31st of July 2026. On the South African portfolio, all the operational performances are looking great. Our tenant turnover has increased by 4.9%, trading density by 5.5% and the average foot count increased by 1.8% to 7.2 million people per month. The spend per head has increased by 3%. Retail vacancies reduced from 4.2% to 3.3%. We had positive rent reversions on our retail stores of 8.7%. Wayne will unpack that in a bit more detail later. We completed 3 solar projects at The Glen, CapeGate, and Hyde Park Corner. At Hyde Park Corner, the project included the integrated battery solution, or better known as BESS. We completed the Phase 2 extension at Somerset Mall, which included the retiling of the mall and new bathroom facilities. At Clearwater Mall, we opened the first Walmart store in Africa, which had a positive impact on the performance of the mall. In Europe, our tenant turnover increased by 4.2%, and trading density increased by 3.9%. Average monthly foot count increased by 0.3% to 2.3 million people per month. More importantly, the spend per head on the portfolio increased by 3.8%. The vacancy remains low at only 0.1%, and we had positive rent reversions of 2.5%. We completed the retiling at City Center one West in Croatia and opened the first Sephora store in Croatia at City Center one East. In the beginning of this financial year, we communicated that we will focus on the following priorities. So let's see how we have done. We had a total of 25 actions, of which 12 were completed, 7 are on track and the remaining 6, we are still making slow but little progress. I will focus on those not mentioned before. We still have not been able to agree commercial terms with the [ Allerines ] on their portfolio. We made good progress with the 2 solar installations at both Somerset Mall and Canal Walk. Both these projects are on track and in line with the anticipated completion dates. These 2 projects will add around ZAR 3.2 million per month to the bottom line on completion. We have started with a 5-day backup water supply in the Western Cape and will be completed before December. We have made good progress with the planning of the Phase 3 extension to increase Somerset Mall to 90,000 square meters. At Hyde Park Corner, Workshop 17 has taken occupancy of the last 2 floors in the North Tower. At The Glen, we've made some further changes to improve the master plan. Unfortunately, we had not made acceptable progress with Pick n Pay and Game on the portfolio. As mentioned before, at Clearwater, we converted the old Game store to the first Walmart store in Africa. The Game store at Somerset Mall was rightsized and upgraded as part of the Somerset Mall Phase 2 extension. The upgrade of the Woolworths store at Rosebank Mall has started and will be completed in March next year. We are in discussions with Woolworths to increase their store at Table Bay Mall. At all the Edgars stores, except for CapeGate that is currently under progress had been rightsized. We have made good progress with the planning around the extension at City Center one East in Croatia. There's little progress with the extension at City Center one West and securing additional land next to Skopje City Mall. We experienced some delays with the 2 solar projects in Croatia. Now I will hand over to Wayne to give us an update on the South African portfolio.

Thank you, Morné, and a very good morning to everyone. Hyprop's South African portfolio remains the bulk of our business operations, predominantly consisting of 7 large regional shopping centers, 1 small regional center and super regional center. The past financial year has once again delivered solid operational performance, and this is a reflection of the appeal of our assets to our consumers and tenants and the resilient LSM shopper base in the markets in which they reside. The South African portfolio constitutes 69% of our investment property, 60% of our distributable income, and equates to 77% of our total GLA. All of our assets are located in strong economic nodes in SA, of which 4 are located in the Western Cape and 5 in Gauteng. During the past financial year, we have welcomed more than 87.7 million visitors to our malls, generating total turnover of ZAR 29.8 billion. In terms of geographical spend, the Western Cape accounted for 58.2% of total turnover versus Gauteng of 41.7%. Moving on to our trading performance. Key trading metrics for the 12-month period ending June 2026 were as follows. Total turnover for the 12-month period grew by 4.9% to ZAR 29.8 billion from ZAR 28.4 billion in 2025. Trading density increased 5.5% to ZAR 3,988 per square meter per month as at year-end, which is up from ZAR 3,779 per square meters per month against 2025. The portfolio rent to turnover ratio, which equates to basic rent plus operating costs plus rates and marketing fund divided by total turnover, previously referred to as our effort ratio, has remained static at 8% -- sorry, 8.2% year-on-year. The effort ratio, which includes all fixed rental and recoveries plus utilities, equates to 10.2% at year-end. Continuing with our trading performance. Average monthly foot count for the portfolio showed good growth of 1.8% for 2026 to 7.3 million visitors. This against 2025, where growth was a negative 0.2%. Noting the growth in turnover and foot count, the spend per head for the year grew by 3% at ZAR 340 per visit. If we look at our 5-year trends, the next few graphs show the trends in key metrics over a 5-year period ending June 2026. Table Bay Mall is excluded unless otherwise specified. Tenant turnover growth remains positive at 4.9%. Rental income grew by 3.6%, which is up on the prior year's growth of 2.9%. Turnover rental growth equates to 0.1%, down against last year's growth mainly due to some of this income now being incorporated into base rental structures and only 50% of turnover rental from Woodlands being included from April 2026 onwards. The weighted average lease escalation by gross monthly rental shows a stable trend at 6.3%. Moving on to our leasing activity. The leasing activity for the portfolio in terms of total reversion rate, at least our total overall reversion rate achieved was 10.2%. The overall reversion rate for retail was 8.7% and 26.8% for offices. The total new deal reversion rate achieved for this year was 38.4%. Retail vacancies reduced from 4.2% as of June 2025 to 3.3% at the end of 2026. Office vacancies reduced from 15.7% in 2025 to 7.5% as of June 2026. A very strong charge from the leasing teams this past year has resulted in total vacancies reducing from 4.9% as of June 2025 to 3.6% as at year-end 2026. In terms of lease expiry profile as a percentage of total GLA, this ranges between a high of 17.3% and a low of 14.2% over the next few years, and we believe this may very well present opportunities for us going forward. Continuing with some of our leasing activity. The leasing workload for the 2026 financial year equates to just over 206,000 square meters. As of June 2026, the workload balance was 58,000 square meters and consisted of the following. Deals under negotiation equates to 32,000 square meters and vacancies totaling 25,000 square meters. Total expiries for the financial year 2026 was 113,000 square meters with vacancies at 35,000 square meters. Good progress has been made in this regard as at year-end 2026. Now moving on to some of our completed projects. There are numerous important projects being undertaken each year in the SA portfolio. I would like to touch on a few of these. At Hyde Park Corner, Checkers FreshX and Petshop Science commenced trading in August of 2025. This continues to have a very positive impact on foot and vehicle counts and Checkers continues to show a good growth. At Clearwater, Walmart opened its first store in South Africa in November 2025, resulting in high double-digit growth in foot count in the same month. The Clearwater Mall's bathroom upgrade was also completed in November of 2025. At Somerset Mall, the Phase 2 Section 1 expansion of Somerset Mall, which focused on athleisure and affordable luxury, was launched in November 2025. 21 new tenants were welcomed to the center, and we are very happy with the end product, which has been very well received by our shoppers. In addition to this, the entire center was also retiled at the same time. At Somerset Mall, as part of the expansion, we also embarked on a much needed full renovation and upgrade of all bathrooms and our family room facilities. This project was completed in April 2026. If we look at the food court at Somerset Mall as part of the Phase 2 expansion in Somerset Mall and the final section to be completed, the new Somerset Mall Food court, which we have branded SM Food Market, has recently opened to the public in August this year and is soon to be formally launched. In addition to the exciting new food court offerings, we are looking forward to opening of the new Freedom Adventure Park, which will enhance our family entertainment offering at the center. At The Glen, Solar-PV remains one of our key priorities in terms of rollout for Hyprop as a group. At The Glen, we commenced with Phase 2 of our solar installation. This consists of a 3.2 megawatt peak plant, which was completed in June 2026. At Hyde Park, we installed Solar-PV with a capacity of just under 1 megawatt peak and the battery energy storage system also referred to as BESS of 6 megawatt hours. This was completed in July this year. Moving on to Canal Walk. Century City is recognized as one of the leading mixed-use precincts in South Africa. At Canal Walk, we identified that we needed to further enhance connectivity to the various surrounding developments to improve ease of access. Construction of the Otter bridge to facilitate access across the canal from the northeast side of the mall was completed in July 2026. In addition to this, a link will be constructed from the center to the existing Crystal Tower Bridge at the Marriott Hotel to improve access to the center from the northwest side of the canal and the residential developments currently underway in the Old Ratanga precinct. This is earmarked for completion in November 2026. Looking at CapeGate. In terms of completed projects, at CapeGate, we completed the installation of the 4.9 megawatt peak Solar-PV installation. This plant went live in August 2026. At Woodlands, to address the underperformance of the Pick n Pay node, a strategic redevelopment initiative was identified to improve the tenant performance and optimize the section of the mall. The Woodlands Mall widening project is a first-phase investment in repositioning the center and will enhance the customer experience, improve the performance of the node and strengthen the retail offering to improve circulation, visibility and the introduction of key national brands. It is expected to uplift rental income and asset value and reduce vacancy risk through the optimization of existing space. This project will also entail the retiling of this section of the mall with a marble tile to match the rest of the center. If we look at some of the projects that are in progress, at Canal Walk, installation of a 7.6 megawatt peak Solar-PV plant has commenced at Canal Walk. Due to the size and complexity of this project, it is being completed in phases to minimize the impact on day-to-day operations at the mall. The final completion date for this project is December 2027. It is, however, planned to bring certain phases online during this period. At Somerset Mall, we have also commenced with the installation of a 5-megawatt peak Solar-PV park. This project, as with Canal Walk will also be completed in sections. The anticipated completion date for this project is December 2027. Moving on to our environmental impact. Hyprop fully supports ESG initiatives, and will continue to invest in these to drive operational efficiencies and have a positive impact on the environment. Some of the initiatives underway and achievements to date are the following. As of June 2026, our energy consumption was as follows, of total energy consumed, solar generation equated to 14% of this at 25,195 megawatt hours. Grid consumption was at 86% and equated to 157,876 megawatt hours. Hyprop's current total solar capacity, which includes CapeGate, is 27.9 megawatt peak. As mentioned, we have commenced with additional solar projects at Canal Walk and Somerset Mall that will enhance our solar capacity by another 12.7 megawatt peak. Total solar capacity after these projects are completed will equate to 40.6 megawatt peak and result in less dependency on Eskom and council supply and much better efficiencies at our assets. Water consumption has been reduced by 7% from July 2025 to June 2026. This equates to some 51,297 kiloliters. This reduction is due to the implementation of water saving training and monitoring programs. The recycling rate for the SA portfolio has improved substantially, and we're extremely proud that our 7 centers in the portfolio have achieved net zero waste certifications from the Green Building Council of South Africa. In closing, the South African portfolio has delivered a final -- good final set of results. We continuously invest in our assets and reposition the SA portfolio for growth and for defensive purposes. All assets have strategic master plans, and these are constantly reviewed. We will always remain focused on driving operating income and asset value while staying true to our purpose of creating spaces and connecting people. On behalf of our executive, I wish to extend a special word of thanks to everyone involved in the SA portfolio. It really has been a team effort in achieving these results in our full year 2026, and we look forward to continuing our trajectory. Thank you very much. I would now like to hand over to Rabia, who would like to take us through the Eastern European portfolio.

Thank you, Wayne, and good day to everyone. I would like to start with a high-level overview, touching on macroeconomics, the retail market dynamics and the property investment market in the region. Generally speaking, the outlook is more constructive than 6 months ago, transitioning from stabilization towards gradual recovery. The macroeconomics, inflation across most Eastern European markets has continued to moderate during the first half of 2026. It remains somewhat above the ECB target in several countries, ranging between 3% to 5%, driven primarily by services inflation, wage growth and selected utility price adjustments. Regional GDP growth expectations for 2026 remain broadly positive with forecasts between 2.5% to 3.5%. Economic growth continues to be supported primarily by private consumption, supported by wage growth, recovering investment activity and improving real income. Labor market across the region remains resilient with unemployment rates close to historically low levels, but labor shortage remains a challenge in several markets. Investor sentiment has improved compared to '25 as financing cost has begun to stabilize and economic visibility has increased. Nevertheless, investors remain selective and continue to focus on high-quality assets and markets with strong fundamentals. On the retail market, prime shopping centers with dominant market position, strong tenant mix and diversified food and entertainment offering continue to deliver strong operating KPIs. Retail parks remain one of the most attractive retail format in the region. Development activity remains strong, particularly in secondary cities, driven by lower development costs, operational efficiency and sustained retail demand. Consumer spending has remained resilient despite ongoing geopolitical uncertainties. Retail sales growth across most regional market has been supported by improving purchasing power as wage growth continues to exceed inflation. Omnichannel retail continues to evolve. Retailers increasingly view physical store as a critical component of their customers' acquisition and fulfillment experience, reinforcing the importance of well-located physical retail store. ESG consideration continues to gain importance for both occupiers and investors. On the investment market, investment activity has improved compared to 2025, supported by stable borrowing interest rates. Transaction volumes remain below long-term average, but have increased across most CEE markets. Prime retail yields has generally stabilized and in selected markets have started to show modest compression as investors' confidence gradually return. Institutional capital remains focused on dominant shopping centers, prime retail parks and assets with strong ESG credentials. Cross-border investors are gradually reentering the region, although local and regional investors remain an important source of transaction activity. Now moving to the slides for more in-country overview. Macroeconomics and retail environment. The GDP growth in Bulgaria is expected to remain in the range of 2.5% to 2.8%. The inflation was 3.8% in 2026 and is expected to slightly decline to 3.7% in 2027 and gradually decline to 2.2% in 2031. Unemployment rate in Bulgaria remains one of the lowest in the Euro zone at 3.4%, which is lower than the European average. The total shopping density in Sofia is 300 square meters per 1,000 inhabitants. From January 1, Bulgaria has adopted the euro currency and became a Schengen member. In Croatia, the GDP growth in 2026 was 2.6%, and it's expected to remain at this level in the new -- in the next few years. The inflation was 4.4% in 2026 and is expected to decline to 2.7% in 2027. Unemployment is forecasted to remain at 4.6%. The total shopping density in Zagreb is the highest in our portfolio at 590 square meters per 1,000 inhabitants. North Macedonia has stable GDP growth at around 3%. The inflation was 4.5% in 2026 and is expected to decline to 4.1% in 2027, approaching the targeted rate of 2% from 2031 onwards. Unemployment rate is around 11.5%. And due to the entry of new shopping centers in the last couple of years, the shopping density in Skopje increased to 334 square meters per 1,000 inhabitants. On the next slide, we look at our trading performance for the 12-month period. Looking at the turnover, there was a 4.2% increase compared to the previous year. The trend continues in July with similar increase of 4.2%. The rent to turnover ratio is on par with prior year at 9.9%. As of July, the movement is the same, while the total occupancy cost at 12.3%. The trading density increased by 3.9% compared to last year. And in July, there was 4.1% increase. On the next slide, we continue with our trading performance. Our footfall showed a slight increase of 0.3% compared to last year. It is worth mentioning that we had an extended summer period in Southeastern Europe that lasted until October last year. Our shopping center based in the capital cities, our competitor included, reported negative footfall due to this extended summer. In July, our footfall showed further improvement with an increase of 0.8%. The spend per head increased by 3.8% compared to the same period last year. And the same trend continues in July with 3.4% increase. On the next slide, we look at our 5 years trading performance. The turnover in 2026 recorded an increase of 4.2% compared to 2025. The rental income increased by 4.6% compared to 2025. Indexation peaked in 2023 to 7.2% and decreased to 3.3% in 2026. And the turnover rent increased by 4.1% compared to last year. The next slide, we look at our leasing activity during the 6 months period. The renewal reversion rate was 1.4% on 15.7% of the total GLA. The new deals reversion rate was 7.9%, which relates to 2.9% of the total GLA. The overall reversion rate is 2.5%, which relates to 18.6% of the total GLA. And during the period, the retention rate was 84%. The breakdown of the overall reversions for all deals includes positive reversions of 25%, flat reversions of 63% and only 12% were negative reversions. The total occupancy rate is 99.9%, which indicates high demand for a space in our portfolio. The lease expiry workload over the next 4 years is smoothly spread with the highest expiry of 45.5% in the year 2031 and beyond. On the next slide, we continue with the leasing activity. The lease workload at the beginning of the financial year was 32,607 square meters, while by the end of June, it was reduced to 203 square meters only, representing the only remaining vacancy. On the next slide, you can see some photos from City Center one West in Zagreb for the retiling project, which was completed in July '26 and the conversion to LED lights, which was completed in December 2025. And on the next slide, the acquisition of Galleria Burgas. As was reported to the market, the transaction was signed on the 21st of May and implemented on the 31st of July '26. The acquisition is in line with Hyprop's strategy to expand in Eastern Europe. Bulgaria is a country well known to Hyprop with an already established base in Sofia. Galleria Burgas is a prime retail asset, which was completely refurbished in 2024. It hosts premium brands and has an excellent tenant mix. The property is located in Burgas on the Black Sea Coast and is the fourth largest city in the country, being a major industrial and tourist hub. We have identified several asset management initiatives related to rightsizing of specific anchor tenants and subdivision of other big units to further enhance the tenant mix. In addition to that, the management is busy looking at other yield-driven projects to be implemented such as installation of Solar-PV system and paid parking. The acquisition is expected to be earning accretive and has been funded by available cash. Already more than a month after the acquisition, the Hyprop Europe team is well advancing the Galleria Burgas onboarding into Hyprop's environment. I will now hand over to Brett, who will take you through the financial results of the presentation. Thank you.

Thank you, Rabia, and good morning, everyone. Morné has already mentioned some of the financial highlights for the year, including the growth in distributable income per share of 11.7%, the ZAR 1.1 billion of equity capital raised, the reduction in the LTV to 28.5% and increase in the ICR and NAV per share. In addition to these, we raised ZAR 580 million through a bond auction that was nearly 6x oversubscribed and achieved our lowest margins ever. We have also reduced our cost of borrowings for the fourth consecutive reporting period. Our stronger balance sheet -- or our balance sheet is stronger than ever, and we are well placed from a financial perspective to pursue new opportunities to grow and expand the group. Now for the detail. Distributable income increased 13.7% from ZAR 1.5 billion to ZAR 1.7 billion, with distributable income per share increasing 11.7% to ZAR 4.23. This is in the upper quartile of the 2026 guidance of a 10% to 12% increase in DIPS from 2025. Distributable income for the South African portfolio increased ZAR 134.7 million or 15% to ZAR 1.034 billion. Excluding the effects of the Woodlands disposal, like-for-like rental and other lease income grew 4.9% with contractual rental income increasing 5.7% Turnover rent was in line with 2025 as some turnover-based rentals were replaced with fixed rentals. Non-lease revenue grew 13%, including marketing and promotions income, which grew 29% due to stronger gift card income and an increase in digital advertising revenue. Casual parking income grew 6.4%. Property expenses increased 14%, mainly due to increases in municipal and utility costs after the once-off credits received in the prior year and a 24% increase in the depreciation charge. The remaining property expenses increased by 6% overall. The like-for-like net property income growth was 3.5%, partly dampened by the once-off utility credits in 2025. The portfolio's cost-to-income ratio was 45.9% following the increase in utility and depreciation costs. Net interest costs reduced from ZAR 765 million to ZAR 657 million with the decrease in interest rates and margins and using the proceeds from the December 2025 capital raise and Woodlands disposal to reduce borrowings. Now to look at the European portfolio's performance. The performance was similar in rands and euros due to the stable average exchange rate for 2025 and '26. Distributable income for the portfolio increased 12.7% or ZAR 77 million to ZAR 684 million. Lease revenue increased by 5% due to favorable renewal rates and growth in tenant turnovers. Operating cost recoveries increased by 6.5%, in line with the increase in security and cleaning costs, which were impacted by changes in minimum wages in the region. On an overall basis, operating expenses increased by only 1.5% despite the increase in cleaning and security costs and maintenance costs, which increased by 25% due to the outsourcing of maintenance services at the mall in Sofia with some savings in staff costs as a result and reinstatement costs incurred in the Croatia centers following tenant changes. Savings were also achieved in energy and utility costs. The result was a 4.8% increase in net property income. The European interest costs reduced from ZAR 295 million to ZAR 235 million due to an EUR 18 million reduction in borrowings and a reduction in average borrowing costs from over 4.7% in December 2024 to 3.9% in June '26. The distributable income per share of ZAR 4.23 has been calculated using 406.2 million shares, being the net number of shares in issue at the end of the year. Applying the 82.5% payout ratio gives you a total dividend of ZAR 3.49 for the full year and a final dividend of ZAR 2.32. As a result of the December 2025 capital raise, we paid an antecedent dividend of ZAR 0.02 per share at the half year and have declared a further ZAR 0.08 antecedent dividend now. This brings the total dividend for the year to ZAR 3.519, a 14.4% increase from the ZAR 3.077 paid in 2025. We have calculated the DIPS and dividend per share using the number of shares in issue at the year-end as it is consistent with the guidance and what existing shareholders anticipated prior to the July 26 capital raise when an additional 12.6 million shares were issued. This also avoids having to pay an additional antecedent dividend for the shares issued post year-end as the new shareholders will receive the final dividends, too. Looking at the group's cash flow. The portfolios remain highly cash generative, underpinning the group's strong financial performance and the quality of the properties we own. Cash generated from operations for the year was ZAR 2.95 billion and ZAR 1.95 billion after paying the interest and tax. This is significantly higher than the distributable income of ZAR 1.7 billion and almost ZAR 540 million higher than the total dividend for the year of ZAR 1.4 billion. You will notice in the graph that the ZAR 540 million difference between the cash generated from operations and the dividend covers most of the group's capital expenditure for the year of ZAR 628 million. This illustrates how through our dividend policy, we have used the cash from retained distributable income and the depreciation charge to fund capital expenditure rather than incur excessive additional borrowings. At 30 June 2026, the group held ZAR 1.7 billion of cash with various institutions as reflected on the graphic. The average cash deposit rates in Europe have remained relatively stable over the year with a slight reduction in rand cash deposit rates in line with the interest rate cycle movements. Looking at our property valuations. The net change in fair value of the property portfolios was ZAR 2 billion, and that's after capital expenditure of ZAR 628 million for the year. For the South African portfolio, the independent valuation of the portfolio increased by 7.9%, with the group's interest increasing from ZAR 26.4 billion to ZAR 27.4 billion. This is after the disposal of the 50% undivided share in Woodlands valued at ZAR 821 million. The cap and discount rates used by the valuers were largely unchanged other than where the valuers were rotated. The property values increased mainly due to strong operating metrics and financial performance, including the benefits of the newly installed solar plants and those still in progress. The increase in the value of Somerset Mall is in addition to the ZAR 323 million spent on the Phase 2 extension. The implied yield on the portfolio was unchanged from 2025 at 7.6% Capital expenditure for the portfolio was ZAR 559 million. Some of the key projects include the Phase 2 expansion at Somerset Mall, solar plants at The Glen, CapeGate, and Hyde Park Corner and the additional workshop 17 space at Hyde Park Corner. Approximately ZAR 74 million was invested in tenant installation allowances. 60% of the CapEx was spent on income-yielding projects. For the European portfolio, the property valuations increased by 5.1% from ZAR 638 million to EUR 670 million as a result of growth in operating income and improved trading metrics. The cap and discount rates were unchanged. The valuation of Skopje City Mall reduced slightly due to the deduction of EUR 6 million of capital expenditure for the Inditex project. We are confident that the valuation will recover after the project's completion. The decrease in Skopje City Mall's valuation was compensated by increases in the valuation of the 2 Croatian assets following their strong trading and financial performance in the year. The overall yield on the portfolio was 8.1% compared to 8.4% in 2025. EUR 3.1 million was spent on capital expenditure and included the retiling project at City Center one West, the light replacement project at the Zagreb centers and various tenant fit-outs, notably at the mall in Sofia. Now looking at borrowings. Total borrowings reduced from ZAR 14.6 billion to ZAR 13.3 billion. The rand equivalent of the euro debt reduced by ZAR 646 million as a result of the rand strengthening against the euro. ZAR 3.95 billion of debt was settled, ZAR 3.2 billion being through refinancing and ZAR 750 million was repaid using existing cash resources. The repayment dates for a further ZAR 750 million of facilities were extended and are not included in these cash flow numbers. All debt was refinanced at lower margins, ranging between 90 and 14 basis points lower. Interestingly, the 90 basis point reduction was on the largest loan refinanced and the 14-point basis reduction on one of the smallest. At the end of June '26, 40% of borrowings are euro-denominated and 60% in rands. The group is well supported by numerous lenders in Europe and South Africa, including investors through the debt capital markets with the single largest lender accounting for 21% of outstanding loans. The LTV reduced from 33.6% in 2025 to 28.5%, the lowest level since we joined in 2018. The main contributors to the reduction are the increase in the investment property values, utilizing the proceeds from the Woodlands disposal and the December capital raise to reduce debt as well as the strengthening of the rand against the euro. The LTV reduced to 26.7% in July following the ZAR 739 million capital raise and has subsequently increased to 30.6% after the acquisition of Galleria Burgas. Galleria Burgas was acquired for EUR 125 million, including the working capital. This was funded with EUR 72 million of in-country debt and ZAR 53 million -- sorry, EUR 53 million or ZAR 1 billion of cash from South Africa. The European portfolio's LTV was 37.8% in June, below the 40% target we set a couple of years ago. Following the acquisition of Galleria Burgas, the portfolio's LTV increased to 40.7%, but should reduce below the 40% level again through annual debt amortization. A significant amount of work has already been done to refinance debt that was due to mature in the next 12 months. The 2 remaining rand revolving credit facilities, which mature are currently undrawn, and it is not anticipated that they will be drawn before their maturity dates. Of the ZAR 1.4 billion maturing term loans, ZAR 400 million has already been refinanced and discussions are underway to refinance a further ZAR 780 million at lower margins. The group's liquidity remains strong with total available cash and undrawn facilities of ZAR 3.7 billion. The mortgage bond over 40% of Clearwater Mall was released post year-end, increasing the group's unencumbered property assets to ZAR 9.4 billion and total unencumbered assets to ZAR 11.6 billion. That's approximately 27.5% of our total assets. The cost of borrowings continues to decline due to favorable market conditions as well as the reductions in borrowing margins. The rand cost of borrowings reduced from 9.3% in December 2024 to 9% in June '25 and 8.5% in June '26. This includes a reduction in the average margin from 150 basis points to 137 basis points. In euros, the average cost of borrowings reduced from 4.7% in December '24 to 4.1% in June '25 and 3.9% in June '26, including a 10% reduction in the average margin. The interest cover ratio improved from 2.6x to 3.1x, the highest level since we joined and is well above the group's ICR covenant of 1.75x. Our interest rate hedging policy requires at least 75% of interest rate exposure to be hedged. At 30 June, the South Africa and European portfolios were 75% and 81% hedged, respectively. The average duration of rand hedges is 1.7 years and 1.2 years for euros. We are working with one of the European lenders to extend the duration of the euro hedges without increasing our European funding costs. Before I hand back to Morné, a couple of closing comments. The net asset value per share increased by 6.7% from ZAR 61.49 to ZAR 65.59. When combined with the ZAR 4.23 distributable income per share, this equates to a 13.5% total return for shareholders based on the net asset value at the beginning of the year. The dividend payout ratio was increased from 80% in 2025 to 82.5% for 2026. The Board will continue reviewing the payout ratio and any changes for the 2027 financial year will be communicated with or before the interim results in March. Building on the growth in DIPS for 2026, we anticipate growth of 7% to 9% for 2027. This guidance is based on certain assumptions that are set out in the results announcement and include the effects of the capital raised in July '26 as well as the acquisition of Galleria Burgas. It also assumes that interest rates remain at the current levels and a rand-euro exchange rate of ZAR 19.50 per euro, which is 1% stronger than the average rate for 2026. Lastly, I would like to thank our shareholders and lenders for their continuing support as demonstrated in the equity and debt capital raise initiatives we undertook over the last year, and also to the group's finance department and team for their hard work in preparing the year-end results. Thank you to all of you. Back to you, Morné.

Thank you very much, Brett. Looking now on our outlook, several of our initiatives are starting to pay off. As mentioned by Brett, the guidance for growth in distributable income is between 7% and 9% for the next financial year. One of the key things we need to do is we want to sell the Lango shares and redeploy the capital in new and organic growth opportunities. We are well advanced in another opportunity in Eastern Europe and we want to secure at least 1 or 2 deals before the end of the financial year. The organic growth opportunities we are currently working on is the Phase 3 extension at Somerset Mall with a capital cost of about ZAR 800 million. The extension at City Center one East in Croatia with a capital cost of around EUR 55 million. We want to maintain a healthy balance sheet whilst we are pursuing new and organic growth opportunities. The 2 remaining on-site solar projects at Canal Walk and Somerset Mall remain a key priority. We want to investigate more BESS systems on the South African portfolio, complete the backup water for the Western Cape portfolio and finalize and start with the first phases of the master plans at The Glen and Woodlands Boulevard. We made good progress at Canal Walk Food Court and will start this year. Continue our discussions with Pick n Pay, Walmart, and Woolworths to upgrade and rightsize their stores. On the Eastern Europe portfolio, we want to start the mall extension at City Center one East within the financial year, complete the 2 solar plants at the 2 Croatian malls and Inditex project that has been started at Skopje City Mall, we want to complete. 5 of those Inditex brands will start trading in April '27 and Zara will start trading in September 2027. At Somerset Mall, just to recap, Phase 1, we opened a new Checkers FreshX and improved the food court supporting the cinemas, which we call Cinema Connect. Phase 2, we added additional 5,300 square meters. Phase 3 will be a further extension of about 14,500 square meters. The new retail space will link the current Woolworths entrances and the Pick n Pay entrance. Above this extension, we will build a parking deck to replace the parking bays we will lose as part of the development. This parking deck will have direct vertical connection into the retail floor below. The tenant mix will focus on new fashion tenants, home and furniture tenants as well as casual and formal dining. This extension will further enhance the flow in the center with a secondary racetrack. Based on the current feasibilities, the Phase 3 development will be yield enhancing. We would like to finalize the plans and get the necessary approvals to start the construction in early 2027. As can be seen on the existing plan of The Glen, the flow within the mall is not optimal. Indicated with the red circle, we want to reduce the size of the supermarket and use the take-back space to create a new racetrack and new line stores. With the new racetrack, we will activate the stores in the back of the mall. Indicated in the green circle, we want to improve the flow from the parking decks into the mall as well as improve the vertical flow between the floors and the floor below as indicated in the blue circle. The revised master plan will improve the flow and secure some further line stores and improve the tenant mix. We will be replacing Pick n Pay with a new supermarket. And as can be seen on the red arrows on the plan, we want to increase the size of the back stores, activating the back end of the center improve the flow as well as the view lines. The green arrow indicates the new flow from the parking decks to the escalators in the back. We will also improve the vertical flow from this level of the center to the ground floor, which is anchored by Woolworths and Checkers FreshX with a new escalator link. The extension at City Center one East in Croatia will be done on the open parking area in front of the mall with 2 new retail levels. The last parking will be replaced with a basement and 2 parking decks on top of this new retail space. Part of the development, we will create a new and improved food court. What is good about the development is that the extension can be done without a major disruption to the existing mall. The extension will increase the mall to about 62,000 square meters. This development should be accretive based on the latest feasibility numbers. As with the extension at Somerset Mall, we would like to start with extension early 2027. Thank you very much. We'll open the floor now for some questions.

We have a question from Pranita at Truffle Asset Management. Well done on the great results. What has allowed the strong trading density growth of 5.5% in your view, given the print -- given that the prints that we're seeing from retailers appear to be very weak? That's the first part. Second part of the question, was there a contribution to like-for-like NOI growth in this period from the solar? Or can we expect that some of this will come into play in FY '27, given the timing of completion of the solar project?

To answer the first question, I think our growth in terms of our tenant turnover is mainly driven with the fact that we have been repositioning our malls to ensure we meet the shoppers' demand. And I think we are taking some market share. And therefore, most of the retailers in our portfolio are performing quite well compared to retail in general. In terms of the second question, which is just remind me now, Boitu.

The impact of solar, what was the contribution to like-for-like?

Brett, do you know exactly that one?

The -- I don't think there's much adjustment in the like-for-like comparison for solar. Most of the new plants that have been commissioned happened in June and July. So that was Hyde Park Corner and The Glen were completed in June with CapeGate actually only coming on stream in August. The only major energy project which came into play in 2026 financial year was the Rosebank Mall project, where we got savings of about ZAR 6 million in energy costs for that. Most of the benefits from the new projects will come into the 2027 year. And then obviously, when Somerset Mall and Canal Walks projects come on stream, which will only be 2028 financial year, we'll start to see the benefits of those.

We have a question from Mweishö at Standard Bank Group Securities. Are there TFG stores you feel are likely to be closed in the Hyprop portfolio? And which tenants do you feel will be a natural replacement for the struggling TFG stores?

Maybe the other way to answer this question, all the TFG stores that is in our malls are trading well. We actually went and looked at the numbers, and they are showing positive growth in terms of the tenant turnover. We haven't identified any replacements because we haven't seen the need to look at it as yet.