O. ADDITIONAL INFORMATION (INCLUDED IN THE AUDITED FINANCIAL STATEMENTS)
O1 GOING CONCERN
 

The financial statements are prepared on the basis of accounting policies applicable to a going concern. This basis takes into account that funds will be available to finance future operations and that the realisation of assets and settlement of liabilities will occur in the ordinary course of business.

At 30 June 2019 the company’s current liabilities exceeded its current assets by R240 million. The increase in current liabilities is due to loans maturing in less than one year. The company proposes to settle these short-term borrowings from existing cash balances and existing and new bank facilities.

In March 2019 the company raised R500 million by the issue of new bonds. R350 million of these proceeds (included in cash balances at 30 June 2019) are earmarked to settle R358 million of bonds which mature in July 2019.

At 30 June 2019 the company had undrawn revolving credit facilities of R500 million. Subsequent to 30 June 2019 term sheets have been signed with commercial banks for an additional R1,1 billion of bank facilities for between three and five-year terms.

Accordingly, the directors consider that the company and the group have adequate resources to continue operating for the ensuing 12 months and that it is appropriate to adopt the going concern basis in preparing the company and group financial statements.
O2 EVENTS AFTER THE REPORTING DATE
O2.1

Disposal of Manda Hill Shopping Centre – Zambia

Subsequent to the year end, Hyprop and AttAfrica disposed of their interests in Manda Hill Shopping Centre in Zambia (the disposal).

The sale price is in line with Hyprop’s valuation of the Manda Hill Shopping Centre at 30 June 2019. Hyprop’s share of the disposal proceeds will be used to settle a portion of its US Dollar denominated debt.
O2.2

Declaration of dividend

On 4 September 2019 the board of directors declared a final dividend of 359,33956 cents per share in respect of the six months ended 30 June 2019.
O3 JSE PROPERTY DISCLOSURES
 

Listed companies that carry out property-related transactions are subject to additional requirements, principally relating to valuations. Property entities are subject to additional requirements (principally relating to valuations and disclosure of their property portfolio) and different requirements with respect to financial information.

GROUP Location   Revenue
attributable
to Hyprop
R000		 Revenue
contribution
%		 Total
GLA m²		 GLA
contribution
%		 Revenue 
per m²		 Retail 
GLA m²		 Retail 
vacancy m²
30 June 2019                  
(excluding properties held-for-sale)                  
GEOGRAPHICAL PROFILE     2 986 920 100,0 706 414 100,0 352 662 946 5 103
South Africa     2 986 920 100,0 706 626 100,0 352 662 946 5 103
   Gauteng     1 679 384 56,2 415 054 58,7 337 381 926 4 619
   Western Cape     1 307 536 43,8 291 572 41,3 374 281 020 484
Sub-Saharan Africa     – – – – – – –
SECTORAL PROFILES                  
Retail     2 972 499 99,5 702 158 99,4 353 662 946 5 103
Shopping centres     2 813 368 94,2 653 732 92,5 359 614 304 4 700
   Super regional     765 607 25,6 158 737 22,5 402 148 188 484
      Canal Walk WC   765 607 25,6 158 737 22,5 402 148 188 484
   Large regional     1 808 702 60,6 456 035 64,5 331 437 642 3 995
      Clearwater Mall GP   452 233 15,1 87 059 12,3 433 87 028 241
      The Glen GP   207 395 6,9 80 431 11,4 215 80 323 3 196
      Woodlands GP   275 610 9,2 71 626 10,1 321 71 629 61
      CapeGate WC   222 269 7,4 63 832 9,0 290 63 831 –
      Somerset Mall WC   319 660 10,7 69 003 9,8 386 69 001 –
      Rosebank Mall GP   331 535 11,1 84 085 11,9 329 65 831 497
   Regional     239 060 8,0 38 737 5,5 515 28 474 222
      Hyde Park Corner GP   239 060 8,0 38 737 5,5 515 28 474 222
      Value centres (Atterbury Value Mart) GP   159 130 5,3 48 649 6,9 273 48 642 403
Offices (standalone offices only) GP   14 421 0,5 4 468 0,6 – – –
TOTAL     2 986 920 100,0 706 626 100,0 352 662 946 5 103

(1) Rental escalations relate to new leases and amendments made during the financial year.

GROUP Location   Retail
vacancy
%		 Office 
GLA m²		 Office 
vacancy m²		 Office
vacancy
%		 Retail –  
rental  
escalation  
per year (1)
%		 Office –
rental
escalation
per year
%		 Average
annualised
rental
property
yield
%		 Average
annualised
NOI
property
yield
%		  
30 June 2019                      
(excluding properties held-for-sale)                      
GEOGRAPHICAL PROFILE     0,8 43 468 4 638 10,7 7,7 7,6 7,5 7,5  
South Africa     0,8 43 468 4 638 10,7 7,7 7,6 7,6 7,5  
Gauteng     1,2 32 959 3 853 11,7 7,4 7,4 7,4 7,6  
Western Cape     0,2 10 509 785 7,5 8,1 8,2 7,7 7,2  
Sub-Saharan Africa     – – – – – – – –  
SECTORAL PROFILES                      
Retail     0,8 39 000 4 235 10,9 7,8 7,5 7,5 7,3  
Shopping centres     0,8 39 000 4 235 10,9 7,9 7,5 7,5 7,2  
   Super regional     0,3 10 509 785 7,5 8,6 8,2 7,2 6,9  
      Canal Walk WC   0,3 10 509 785 7,5 8,6 8,2 7,2 6,9  
   Large regional     0,9 18 249 463 2,5 7,5 8,1 7,7 7,3  
      Clearwater Mall GP   0,3 – – – 8,0 – 7,0 7,2  
      The Glen GP   4,0 – – – 7,2 – 8,6 7,9  
      Woodlands GP   0,1 – – – 7,4 – 7,1 7,0  
      CapeGate WC   0,0 – – – 8,0 – 8,5 7,4  
      Somerset Mall WC   0,0 – – – 7,8 – 7,5 7,2  
      Rosebank Mall GP   0,8 18 249 463 2,5 6,5 8,1 7,3 6,8  
   Regional     0,8 10 242 2 987 29,2 7,7 6,3 7,0 7,0  
      Hyde Park Corner GP   0,8 10 242 2 987 29,2 7,7 6,3 7,0 7,0  
      Value centres (Atterbury Value Mart) GP   0,8 – – – 7,7 – 7,0 8,5  
Offices (standalone offices only) GP   – 4 468 403 9,0 – 7,8 7,9 8,8  
TOTAL     0,8 43 468 4 638 10,7 7,7 7,6 7,5 7,5  

(1) Rental escalations relate to new leases and amendments made during the financial year.

GROUP Location   Revenue
attributable
to Hyprop
R000		 Revenue
contribution
%		 Total
GLA m²		 GLA
contribution
%		 Revenue 
per m²		 Retail 
GLA m²		 Retail 
vacancy m²
30 June 2018                  
(excluding properties held-for-sale)                  
GEOGRAPHICAL PROFILE     3 107 536 100,0 744 682 100,0 348 685 727 11 392
South Africa     2 882 958 92,8 722 460 97,0 333 663 504 10 713
   Gauteng     1 646 005 53,0 431 254 57,9 318 382 430 9 988
   Western Cape     1 236 953 39,8 291 206 39,1 354 281 074 725
Sub-Saharan Africa     224 578 7,2 22 223 3,0 842 22 223 679
SECTORAL PROFILES                  
Retail     3 060 370 98,5 724 329 97,3 352 685 727 11 392
Shopping centres     2 909 156 93,6 675 481 90,7 359 636 880 9 642
   Super regional     726 246 23,4 158 396 21,3 382 148 264 342
      Canal Walk WC   726 246 23,4 158 396 21,3 382 148 264 342
   Large regional     1 730 878 55,7 456 099 61,2 316 437 850 8 084
      Clearwater Mall GP   416 925 13,4 87 083 11,7 399 87 083 1 988
      The Glen GP   223 410 7,2 80 428 10,8 231 80 428 4 378
      Woodlands GP   282 122 9,1 71 643 9,6 328 71 643 618
      CapeGate WC   208 807 6,7 63 756 8,6 273 63 756 308
      Somerset Mall WC   301 900 9,7 69 054 9,3 364 69 054 75
      Rosebank Mall GP   297 714 9,6 84 135 11,3 295 65 886 717
   Regional     452 032 14,5 60 986 8,2 618 50 766 1 216
      Hyde Park Corner GP   227 454 7,3 38 763 5,2 489 28 543 537
      Ikeja City Mall Nigeria   224 578 7,2 22 223 3,0 842 22 223 679
Value centres (Atterbury Value Mart) GP   151 214 4,9 48 848 6,6 258 48 848 1 751
Offices (standalone offices only) GP   47 166 1,5 20 354 2,7 – – –
TOTAL     3 107 536 100,0 744 683 100,0 348 685 727 11 392

(1) Rental escalations relate to new leases and amendments made during the financial year.

GROUP Location   Retail
vacancy
%		 Office
GLA m²		 Office
vacancy m²		 Office
vacancy
%		 Retail – 
rental 
escalation 
per year(1)
% 		 Office –
rental
escalation
per year
%		 Average
annualised
rental
property
yield
%		 Average
annualised
NOI
property
yield
%		  
30 June 2018                      
(excluding properties held-for-sale)                      
GEOGRAPHICAL PROFILE     1,7 58 956 3 255 5,5 6,6 7,4 7,6 7,5  
South Africa     1,6 58 956 3 255 5,5 6,8 7,2 7,7 7,3  
   Gauteng     2,6 48 824 3 120 6,4 6,7 7,3 7,6 7,5  
   Western Cape     0,3 10 132 135 1,3 6,8 7,1 7,8 7,1  
Sub-Saharan Africa     3,1 – – – 3,8 – 7,4 8,4  
SECTORAL PROFILES                      
Retail     1,7 38 602 2 228 5,8 6,6 7,1 7,6 7,4  
Shopping centres     1,5 38 602 2 228 5,8 6,3 7,1 7,4 7,2  
   Super regional     0,2 10 132 135 1,3 6,8 7,1 7,2 6,8  
      Canal Walk WC   0,2 10 132 135 1,3 6,8 7,1 7,2 6,8  
   Large regional     1,8 18 249 296 1,6 6,6 8,0 7,5 7,2  
      Clearwater Mall GP   2,3 – – – 7,2 – 6,6 6,9  
      The Glen GP   5,4 – – – 6,0 – 7,3 7,6  
      Woodlands GP   0,9 – – – 5,8 – 7,4 7,1  
      CapeGate WC   0,5 – – – 7,3 – 8,6 7,4  
      Somerset Mall WC   0,1 – – – 6,3 – 7,4 7,2  
      Rosebank Mall GP   1,1 18 249 296 1,6 7,2 8,0 7,7 6,9  
   Regional     2,4 10 221 1 797 17,6 5,5 6,2 7,3 7,6  
      Hyde Park Corner GP   1,9 10 221 1 797 17,6 7,3 6,2 7,2 6,8  
      Ikeja City Mall Nigeria   3,1 – – – 3,8 – 7,4 8,4  
Value centres (Atterbury Value Mart) GP   3,6 – – – 6,8 – 9,0 8,5  
Offices (standalone offices only) GP   – 20 354 1 027 5,0 – 7,6 8,3 8,4  
TOTAL     1,7 58 956 3 255 5,5 6,6 7,4 7,6 7,5  

(1) Rental escalations relate to new leases and amendments made during the financial year.

Tenants in our portfolio are categorised by grade, although this is largely subjective given the strong retail nature of our portfolio.

  Revenue
attributable
to Hyprop
R000		 Revenue
contribution
%		 Rentable area
(GLA) m²		 Rentable area
contribution
%		 Revenue
per m²		  
Tenant profile – 30 June 2019            
South Africa 2 762 769 100,0 726 706 100,0 316,81  
A grade(i) 1 505 224 54,5 473 391 65,1 264,97  
B grade(ii) 777 658 28,1 155 408 21,4 417,00  
C grade(iii) 479 887 17,4 97 907 13,5 408,46  
Tenant profile – 30 June 2018            
South Africa 2 503 784 100,0 733 606 100,0 284,42  
A grade(i) 1 382 279 55,2 505 254 68,9 227,98  
B grade(ii) 674 057 26,9 142 735 19,5 393,54  
C grade(iii) 447 448 17,9 85 617 11,7 435,51  
Tenant profile – 30 June 2018            
Sub Saharan Africa (Ikeja City Mall) 176 296 100,0 21 029 100,0 698,60  
A grade(i) 38 070 21,6 7 275 34,6 436,06  
B grade(ii) 98 735 56,0 11 280 53,6 729,42  
C grade(iii) 39 491 22,4 2 474 11,8 1 330,11  

(i) A grade: Large national tenants, large listed tenants and major franchises (including all national retailers and tenants in large listed groups).
(ii) B grade: Smaller national and listed tenants, medium-sized franchises, medium to large retailers.
(iii) C grade: Smaller line stores.

    30 June 2019    
GROUP   FY20
%		 FY21
%		 FY22
%		 FY23
%		 FY24+
%		    
Lease expiry profile – by revenue (%)   28 20 17 13 22    
Retail   28 20 16 13 23    
Shopping centres   30 19 16 13 22    
Super regional   19 25 14 18 24    
   Canal Walk   19 25 14 18 24    
Large regional   31 19 17 11 22    
   Clearwater Mall   36 25 17 6 16    
   The Glen   29 16 20 18 17    
   Woodlands   21 35 16 8 20    
   CapeGate   47 10 16 13 15    
   Somerset Mall   21 20 18 12 29    
   Rosebank Mall   32 7 14 9 37    
Regional   35 18 14 18 16    
   Hyde Park Corner   35 18 14 18 16    
Value centres (Atterbury Value Mart)   17 23 16 11 33    
Offices (standalone offices only)   24 21 22 22 12    
    30 June 2018    
GROUP   FY20
%		 FY21
%		 FY22
%		 FY23
%		 FY24+
%		    
Lease expiry profile – by revenue (%)   20 26 20 10 24    
Retail   19 27 20 9 25    
Shopping centres   18 28 19 9 25    
Super regional   15 19 26 8 32    
   Canal Walk   15 19 26 8 32    
Large regional   17 30 18 10 24    
   Clearwater Mall   8 38 25 13 16    
   The Glen   15 23 14 12 37    
   Woodlands   15 24 34 13 15    
   CapeGate   19 48 10 8 15    
   Somerset Mall   21 19 19 8 33    
   Rosebank Mall   26 29 7 7 31    
Regional   23 28 20 8 22    
   Hyde Park Corner   24 25 18 9 23    
   Ikeja City Mall   21 30 21 7 21    
Value centres (Atterbury Value Mart)   24 17 23 10 26    
Offices (standalone offices only)   29 13 22 16 19    

    30 June 2019    
GROUP   Vacancy
%		 FY20
%		 FY21
%		 FY22
%		 FY23
%		 FY24+
%		    
Lease expiry profile – by rentable area %   2 25 15 14 12 32    
Retail   1 26 15 13 12 34    
Shopping centres   1 27 15 12 12 33    
Super regional   – 15 22 10 22 32    
   Canal Walk   – 15 22 10 22 32    
Large regional   1 28 14 14 10 34    
   Clearwater Mall   – 36 19 11 5 28    
   The Glen   4 24 9 17 19 26    
   Woodlands   – 13 32 16 9 30    
   CapeGate   – 50 6 20 8 16    
   Somerset Mall   – 14 13 11 14 48    
   Rosebank Mall   1 28 4 7 7 53    
Regional   1 37 13 8 12 30    
   Hyde Park Corner   1 37 13 8 12 30    
Value centres (Atterbury Value Mart)   1 14 20 16 9 41    
Offices (standalone offices only)   11 24 16 23 14 12    
    30 June 2018    
GROUP   Vacancy
%		 FY19
%		 FY20
%		 FY21
%		 FY22
%		 FY23+
%		    
Lease expiry profile – by rentable area %   2 16 17 24 9 32    
Retail 2 15 16 25 8 34
Shopping centres   2 14 16 26 8 34    
Super regional   – 12 22 16 6 44    
   Canal Walk   – 12 22 16 6 44    
Large regional   2 13 14 26 9 36    
   Clearwater Mall   2 4 20 38 8 27    
   The Glen   5 13 8 19 11 44    
   Woodlands   1 10 32 15 15 27    
   CapeGate   – 19 6 48 10 17    
   Somerset Mall   – 11 14 14 6 54    
   Rosebank Mall   1 20 5 23 3 48    
Regional   2 20 17 33 6 22    
   Hyde Park Corner   2 24 13 31 5 25    
   Ikeja City Mall   2 16 21 35 6 19    
Value centres (Atterbury Value Mart)   4 23 20 13 9 33    
Offices (standalone offices only)   6 26 20 13 19 17