Business model
The Glen, Gauteng
As an income-focused REIT, investors benefit from Hyprop’s active asset management which results in real estate investments that generate long-term capital and income growth. Material risks are detailed in our risk management section. |
| What we use | What we achieve | The value we create | |||||||
| Financial capital | Invest equity and debt capital Raised equity of R779 million Raised R800 million in corporate bonds Reinvested disposal proceeds from the sale of non-core assets |
Total investment returns to investors Sustainable dividend growth |
Distribution up 8,8% to 756.5 cents per share Repaid debt of R1,95 billion Increased NAV by 3,2% Loan-to-value of 28,1% |
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| Manufactured capital | Own high-quality, dominant shopping centres in large metropolitan areas Redevelop and expand the portfolio Pursue yield-enhancing acquisitions |
Defensive nature of high-quality shopping centres provides sustainable income growth Well-maintained properties Geographic diversification Application of technology for effective utilities management |
Concluded acquisitions of EUR439 million in SEE R276 million invested in developments in South Africa Located in capital cities in SEE Located in major metropolitan areas in SA and the rest of SSA |
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| Human capital | Fair and responsible remuneration Training and development Implementation of employment equity plan Engaged employee relations |
Recruit and retain talent Low staff turnover Competent employees that can execute the strategy Well-established, experienced employee knowledge base Transformation Ethical values and employee conduct |
Average term of service nine years (2017: eight years) Employee tenure of 93% (2017: 92%) KPD targets overachieved for the year 110,9% (2017: 114,0%) Job vacancy 1,8% (2017: 3,5%) Number of black employees increased to 59% (2017: 55%) Low ratio of unproductive leave days88% of new employment from designated groups (2017: 83%) |
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| Social and relationship capital | Manage stakeholder and information flow Hyprop Foundation used as vehicle to further corporate social initiatives |
Effective controls and processes supporting transparent disclosure Sustainable social responsibility through education, community upliftment and enterprise development Employee, tenant and customer participation in CSI initiatives |
Timely and transparent communication R1,9 million invested in CSI projects together with considerable donations of time, space and facilities (2017: R1,6 million) Community events hosted at our shopping centres |
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| Intellectual capital | Skilled property and asset management team Experienced executive team Seasoned board members Information management |
Internal asset and property management focusing on value-enhancing opportunities and achieving key performance deliverables Integrated property management – and human resources systemsEffective leasing management by managing all areas of tenant interaction and relationships |
Diverse tenant mix Vacancy rate improved to 1,9% Arrears at 0,6% of rent roll Contractual rental escalations of 7,7% Roll out of system for standardisation of leases Less than 1% server downtime (interrupted productivity) across the group (mainly due to maintenance) |
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| Natural capital | Energy-efficiency programmes Water-saving programme Carbon emission measurement |
Small and contained environmental footprint Environmentally efficient properties Participation in global environmental benchmarks |
271 479 kilolitres of water saved (2017: 8 917 kilolitres) 29 128 MWh electricity saved (2017: 15 628 MWh) 83% of waste in South African portfolio recycled (2017: 79%) Third phase solar photovoltaic plant at Clearwater Mall completed R12,2 million cost savings to South African portfolio from energy-efficiency initiatives |
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