About Us

Business model

Hyprop strives to create sustainable value for our stakeholders and to be a good corporate citizen by operating our business with tomorrow in mind. The pursuit of sustainable value creation incorporates economic prosperity, social responsibility and environmental protection.

The purpose of business is to increase profitability, provide sustainable total returns and create value. To achieve this, management reflects on current opportunities and strengths while exploring ways to mitigate risks and threats.

Creating value for stakeholders: inputs, outputs and outcomes defined

As an income-focused REIT, Hyprop creates value for investors and other stakeholders by owning and investing in quality shopping centres, benefiting from active asset management based on ethical leadership and sound corporate governance principles. This results in sustainable real estate investments, which generate long-term capital and income growth.

INPUTS OUTPUTS OUTCOMES VALUE CREATION

Business activities

Product and services delivered

Short, medium and long-term sustainable value creation from business activities

Value created is shared by investors and other stakeholders

Financial capital

Responsibility: Income growth and capital appreciation

 

Financial
management

  • Sources of funding: debt and equity
  • Capital growth
  • Income growth
  • Relatively low loan-to-value ratio
  • Disposal of non-core assets
  • Increase in NAV of 6,1%
  • Loan to value of 30,8%
  • Distribution growth up by 14,2%
  • Proceeds of disposals used to reduce debt

Shareholders
Value is shared through dividend payments and growth in the Hyprop share price


Suppliers
Our value chain supports job creation


Employees
Development, reward and long-term incentives to retain a skilled and motivated workforce


Tenants
The quality of our malls and superior tenant mix attracts customers, creating value for tenants


Communities
Communities benefit from the numerous socio-economic development projects managed through the Hyprop Foundation annually


Hyprop malls attract a range of retailers, contributing to job creation for communities in and around our shopping malls

Manufactured capital

Responsibility: To ensure manufactured capital generates capital appreciation and income growth

Own and
invest

  • Own high-quality, dominant shopping centres in large metropolitan areas in strong economic nodes
  • Seek expansion and redevelopment opportunities in existing shopping centres
  • Pursue appropriate yield-enhancing acquisitions
  • Effective capital and debt management
  • Real estate investments which provide superior long-term investment returns
  • Geographic diversification in high-growth emerging markets
  • Superior returns for investors
  • Further expansion into sub-Saharan Africa — acquisition of Ikeja City Mall (Nigeria) and development of Achimota Mall (Ghana)
  • Acquisition of Delta City malls in Belgrade (Serbia) and Podgorica (Montenegro)

Intellectual capital

Responsibility: Intellectual property and corporate culture are critical to preserve, grow and retain skills

Leasing

  • Earn rental
  • Rent collections
  • Lease agreements
  • Manage occupancy level
  • Manage tenant arrears
  • Strong contractual rental escalations
  • Improved tenant mix
  • Dedicated leasing executives and national legal executive
  • Turnover densities
  • Occupancy rate improved to 98,9%
  • Arrears at 0,5% of rent

Asset
management

  • Active internal asset and property management to maximise efficiencies and pursue opportunities
  • Property maintenance
  • Well-managed portfolio of properties that generate growing income
  • Rising property values
  • Extracting synergies, e.g. national service contracts
  • Well-contained cost structure
  • Investment property (SA) improved cost-to-income ratio of 33,2%
    from 33,6%

Information
management

  • Secure IT systems to improve efficiency of assets, employees and operations
  • Integrated electronic property management system
  • Internal functions such as human resources driven by technology
  • Continuity and synergy

Stakeholder
communication

  • Transparent stakeholder communication
  • Dedicated investor relations manager, marketing executives and compliance officer

Natural capital

Responsibility: To ensure that operations (occupation and redevelopment of properties, day-to-day activities) limit their impact on the environment

Environmentally
efficient
properties

  • Energy, carbon emission, water and waste-reduction targets
  • Green building principles
  • Resource management
  • Environmental strategy
  • Voluntary participation in global environmental benchmarks
  • Reduced environmental footprint
  • Environment-specific risk assessments
  • Projects to improve energy efficiency (such as Clearwater Mall’s solar photovoltaic plan

Human capital

Responsibility: To grow and nurture the talent, knowledge and skills of our people

Ethical
leadership

  • Regulatory compliance and corporate governance
  • Experienced board
  • Hands-on executive management
  • Strategic risk management and investment strategy to protect and grow the business
  • Strong compliance with regulatory requirements
  • Top rating in independent governance instrument
  • Strategic risk management and investment strategy to protect and grow

Employee
management

  • Employee development programme
  • Education and training
  • Employment equity
  • Black economic empowerment
  • Remuneration policy
  • Health and safety policy
  • Develop staff productivity
  • Low staff turnover
  • Addressing skills shortage
  • Share incentive scheme to retain executive management and align with company vision and strategy
  • Safe and healthy working environment

Social and relationship capital

Responsibility: To ensure interactions with local stakeholders are meaningful and constructive

Corporate social
investment (CSI)

  • Hyprop Foundation
  • Community development
  • Monitor staff participation in
    CSI initiatives
  • Connecting with shoppers
  • Sustainable social responsibility through education, training and enterprise development
  • Further development of Hyprop Foundation activities and community interactions
  • Opportunity to give back to stakeholders and community