C. SEGMENTAL ANALYSIS
C 1 OVERVIEW AND DEFINITIONS
 

An operating segment is:

  • a component of an entity that engages in business activities from which it may earn revenues
  • the operating results of which are regularly reviewed by the group’s chief operating decision maker to make decisions about resources to be allocated and to assess its performance, and
  • for which financial information is available.

The group’s identification of its segments and the measurement of segment results are based on the group’s internal management reporting used for day-to-day decision-making and reviewed by the chief executive officer. The segments have been identified according to their location, other than assets held-for-sale. The primary measures of segment profit is net operating income and distributable income.

Intersegment revenues and transfers are accounted for as if the transactions were concluded with third parties at arm’s length market prices.

The segments are supported by the group head office, which provides support in the areas of finance, human resources, governance and compliance, risk management and information technology. Additional information relating to other performance measures is provided. Properties (of any previous segment) that have been classified as held-for-sale according to IFRS 5: Non-current assets held-for-sale are reported under their geographic segments. There is one property in this segment (2018: one).

The group comprises the following business segments and sectors:

Business segment   Description and basis of segmentation   Sector
SOUTH AFRICA   The SA portfolio comprises all South African shopping malls and offices irrespective of size. There are nine centres in this segment (2018: nine). Included in this segment are the combined results of the various support services provided to the group from South Africa including: group finance, Stratco, group asset management and development, human resources, legal and compliance, investor relations, group marketing and group facilities management.   SA
EASTERN EUROPE   The EE portfolio comprises interests in dominant shopping centres in the Balkan region of Eastern Europe held through the group’s 60% interest in Hystead. There are six properties in this segment (2018: six).   EE
SUB-SAHARAN AFRICA   The SSA portfolio comprises interests in shopping centres in southern and western Africa, excluding South Africa, held through Hyprop Mauritius, a wholly owned subsidiary.   SSA
C 2 SEGMENTAL ANALYSIS – PROFIT OR LOSS
 
      SOUTH
AFRICA
  EASTERN
EUROPE
  SUB-SAHARAN
AFRICA
  GROUP  
GROUP Note   30 June 2019 
R000 
  30 June 2019 
R000 
  30 June 2019 
R000 
  30 June 2019 
R000 
 
Revenue  D1     3 003 847     –       214 001     3 217 848    
   Rental and other lease income        2 157 540     –       172 637     2 330 177    
   Straight-line rental income accrual        (81 399)    –       (6 488)    (87 887)   
   Recoveries        927 706     –       47 852     975 558    
Impairment of trade receivables        (23 712)    –       (23 340)    (47 052)   
Property expenses  D2     (1 068 708)    –       (63 294)    (1 132 002)   
Net property income        1 911 427           127 367     2 038 794    
Other operating expenses  D2     (44 969)    4 284(1)    (915)    (41 600)   
Operating income        1 866 458     4 284       126 452     1 997 194    
Net interest  D3     (239 190)    –       (221 965)    (461 155)   
   Interest income        74 067     –       81 976     156 043    
   Interest expense        (313 257)    –       (303 941)    (617 198)   
Guarantee fee income        –     40 542       –     40 542    
Dividends received  D4     –     221 190       –     221 190    
Net income/(loss) before fair value adjustments        1 627 268     266 016       (95 513)    1 797 771    
Changes in fair value        (209 128)    (85 229)      (292 726)    (587 083)   
Profit on disposal of investment property        2 825     –       –     2 825    
Impairment of loans receivable  F1     –     –       (1 350 727)    (1 350 727)   
Other impairments        –     –       (29 964)    (29 964)   
Derecognition of financial guarantees        –     185 686       –     185 686    
Profit/(loss) before taxation        1 420 965     366 473       (1 768 930)    18 508    
Taxation        (1 730)    –       94 758     93 028    
Profit/(loss) for the year        1 419 235     366 473       (1 674 172)    111 536    
Calculation of distributable income                               
Net income/(loss) before fair value adjustments        1 627 268     266 016       (95 513)    1 797 771    
Adjusted for:        67 743     –       37 154     104 897    
   Straight-line rental income accrual        81 399     –       6 488     87 887    
   Non-controlling interest        –     –       30 959     30 959    
   Taxation paid        –     –       (427)    (427)   
   Net interest adjustments        –     –       134     134    
   Other fair value adjustments – Edcon        (12 705)    –       –     (12 705)   
   Capital items for distribution purposes        (951)    –       –     (951)   
Distributable income        1 695 011     266 016       (58 359)    1 902 668    
(1) R4 284 (2018: R7 277) relates to foreign exchange gains realised on dividends from Hystead and guarantee fee income from PDI.
      SOUTH
AFRICA
  EASTERN
EUROPE
  SUB-SAHARAN
AFRICA
  GROUP  
GROUP Note   30 June 2018 
R000 
  30 June 2018 
R000 
  30 June 2018 
R000 
  30 June 2018 
R000 
 
Revenue        2 889 135     –       224 578     3 113 713    
   Rental and other lease income  D1     2 071 763     –       172 887     2 244 650    
   Straight-line rental income accrual        (4 696)    –       849     (3 847)   
   Recoveries        822 068     –       50 842     872 910    
Impairment of trade receivables        (12 825)    –       (18 264)    (31 089)   
Property expenses  D2     (943 321)    –       (75 482)    (1 018 803)   
Net property income        1 932 989     –       130 832     2 063 821    
Other operating expenses  D2     (61 960)    7 277(1)    (1 095)    (55 778)   
Operating income  D3     1 871 029     7 277       129 737     2 008 043    
Net interest        (280 812)    –       (1 461)    (282 273)   
   Interest income        70 545     –       242 005     312 550    
   Interest expense        (351 357)    –       (243 466)    (594 823)   
Guarantee fee income              46 671       –     46 671    
Dividends received  D4     2 253     180 525       –     182 778    
Net income before fair value adjustments        1 592 470     234 473       128 276     1 955 219    
Changes in fair value        666 318     87 761       12 973     767 052    
Profit on disposal of investment property        2 697     –       –     2 697    
Impairment of loans receivable  F1     –     –       (166 441)    (166 441)   
Derecognition of financial guarantees        (29 409)    41 393       –     11 984    
Other impairments        (10 102)    –       –     (10 102)   
Profit/(loss) before taxation        2 221 974     363 627       (25 192)    2 560 409    
Taxation        (11 838)    –       (27 648)    (39 486)   
Profit/(loss) for the year        2 210 136     363 627       (52 840)    2 520 923    
Calculation of distributable income                               
Net income before fair value adjustments          1 592 470       234 473         128 276       1 955 219    
Adjusted for:        (796)    –       (49 909)    (50 705)   
   Straight-line rental income accrual        4 696     –       (849)    3 847    
   Non-controlling interest        –     –       2 600     2 600    
   Taxation paid        –     –       (4 381)    (4 381)   
   Net interest adjustments        –     –       (47 279)    (47 279)   
   Capital items for distribution purposes        (5 492)    –       –     (5 492)   
Distributable income        1 591 674     234 473       78 367     1 904 514    
(1) R4 284 (2018: R7 277) relates to foreign exchange gains realised on dividends from Hystead and guarantee fee income from PDI.
C 3 SEGMENTAL ANALYSIS – FINANCIAL POSITION
 
      SOUTH
AFRICA
  EASTERN
EUROPE
  SUB-SAHARAN
AFRICA
  GROUP  
GROUP Note   30 June 2019
R000
  30 June 2019
R000
  30 June 2019
R000
  30 June 2019
R000
 
Assets                    
Non-current assets     28 639 145   237 291     28 876 436  
Current assets     1 151 002   19 262   1 559 025   2 729 289  
Non-current assets classified as held-for-sale E7.3       2 047 847   2 047 847  
Total assets     29 790 147   256 553   3 606 872   33 653 572  
Liabilities                    
Non-current liabilities     3 796 753   110 401   2 671 833   6 578 987  
Current liabilities     1 461 880     22 600   1 484 481  
Liabilities associated with non-current assets held-for-sale E7.4       1 098 300   1 098 300  
Total liabilities     5 258 634   110 401   3 792 733   9 161 768  
GROUP Note   30 June 2018
R000
  30 June 2018
R000
  30 June 2018
R000
  30 June 2018
R000
 
Assets                    
Non-current assets     28 781 990   171 280   4 997 854   33 951 124  
Current assets     790 451   94 273   130 371   1 015 095  
Non-current assets classified as held-for-sale E7.3   199 257       199 257  
Total assets     29 771 698   265 553   5 128 225   35 165 476  
Liabilities                    
Non-current liabilities     3 059 169   185 686   4 958 544   8 203 399  
Current liabilities     436 023     122 660   558 683  
Liabilities associated with non-current assets held-for-sale E7.4   8 157       8 157  
Total liabilities     3 503 349   185 686   5 081 204   8 770 239