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%
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
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
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%)
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
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)
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