C. SEGMENTAL ANALYSIS
C1 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 (who is the Group's chief operating decision maker). The segments have been identified according to their location, other than assets held-for-sale. The primary measures of segment performance are 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, legal, human resources, governance and compliance, risk management and information technology.

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 (2019: one).

The Group comprises of 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 (2019: 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 (2019: six).

 

EE

 

Sub-Saharan Africa

 

The SSA portfolio comprises interests in shopping centres in western Africa, excluding South Africa, held through Hyprop Mauritius, a wholly owned subsidiary. The property held-for-sale forms part of the SSA portfolio.

 

SSA


C2 Segmental analysis – profit or loss
 
South Africa     Eastern Europe  Sub-Saharan 
Africa
 
Group    
June 2020 
R'000
 
   June 2020 
R'000
 
   June 2020 
R'000
 
   June 2020 
R'000
 
  
Revenue  2 890 219          212 123     3 102 342    
   Rental and other lease income  2 078 212     –  182 910  2 261 122    
   Straight-line rental income accrual  125 927  –  (7 641) 118 286    
   Recoveries  686 080     –     36 854     722 934     
Impairment of trade receivables  (35 786) –  (41 896) (77 682)   
Property expenses  (1 069 565)   –     (70 156)    (1 139 721)   
Net property income  1 784 868    100 071  1 884 939    
Other operating income (1)  22 705  215  (2 049) 20 871    
Other operating expenses  (87 933)    –     (1 197)    (89 130)   
Operating income  1 719 640  215  96 825  1 816 680    
Net interest  (357 028)    –     (191 367)    (548 395)   
   Interest income  55 105  –  33 892  88 997    
   Interest expense  (412 133)    –     (225 259)    (637 392)   
Net operating income  1 362 612     215     (94 542)    1 268 285    
Guarantee fee income  –  22 111  –  22 111    
Dividends received  –     120 630     –     120 630    
Net income/(loss) before fair value adjustments  1 362 612  142 956  (94 542) 1 411 026    
Changes in fair value  (4 540 750) 297 863  (394 041) (4 636 928)   
Impairment of loans receivables  –     –     (289 974)    (289 974)   
(Loss)/Profit before taxation  (3 178 138) 440 819  (778 557) (3 515 876)   
Taxation  (7 637)    –     487     (7 150)   
(Loss)/Profit for the year  (3 185 775)    440 819     (778 070)    (3 523 026)   
(1) R215 000 (2019: R4 284 000) relates to foreign exchange gains realised on dividends from Hystead and guarantee fee income from PDI. 
 
Calculation of distributable income 
Net income/(loss) before fair value adjustments  1 362 612  142 956  (94 542) 1 411 026    
Adjusted for:  (175 049)    –     22 064     (152 985)   
   Straight-line rental income accrual  (125 927) –  7 641  (118 286)   
   Non-controlling interest  –  –  21 449  21 449    
   Net interest adjustments  –  –  (4 036) (4 036)   
   Other fair value adjustments – Edcon  (45 172) –  –  (45 172)   
   Gruppo non-remittable income  –  –  (5 039) (5 039)   
   Capital items for distribution purposes  (3 950)    –     2 049     (1 901)   
Distributable income  1 187 563     142 956     (72 478)    1 258 041    

 

South Africa  Eastern Europe  Sub-Saharan 
Africa
 
Group    
June 2019 
R'000
 
   June 2019 
R'000
 
   June 2019 
R'000
 
   June 2019 
R'000
 
  
Revenue  3 003 847          214 001     3 217 848    
   Rental and other lease income  2 372 402  –  194 748  2 567 150    
   Straight-line rental income accrual  (81 399) –  (6 488) (87 887)   
   Recoveries  712 844     –     25 741     738 585    
Impairment of trade receivables  (23 712) –  (23 340) (47 052)   
Property expenses  (1 068 708) –  (63 294) (1 132 002)   
Net property income  1 911 427    127 367  2 038 794    
Other operating income (1) 26 544  4 284  –  30 828    
Other operating expenses  (71 513) –  (915) (72 428)   
Operating income  1 866 458  4 284  126 452  1 997 194    
Net interest  (239 190)    –     (221 965)    (461 155)   
   Interest income  74 067  –  81 976  156 043    
   Interest expense  (313 257)    –     (303 941)    (617 198)   
Net operating income  1 627 268     4 284     (95 513)    1 536 039    
Guarantee fee income  –  40 542  –  40 542    
Dividends received  –     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 receivables  –  –  (1 350 727) (1 350 727)   
Other impairments  –  –  (29 964) (29 964)   
Derecognition of financial guarantees  –     185 686     –     185 686    
Profit before taxation  1 420 965  366 473  (1 768 930) 18 508    
Taxation  (1 730)    –     94 758     93 028    
Profit for the year  1 419 235     366 473     (1 674 172)    111 536    
(1) R215 000 (2019: R4 284 000) relates to foreign exchange gains realised on dividends from Hystead and guarantee fee income from PDI. 
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    

C3 Segmental analysis – financial position
 
South Africa  Eastern Europe  Sub-Saharan 
Africa
 
Group    
June 2020 
R'000
 
   June 2020 
R'000
 
   June 2020 
R'000
 
   June 2020 
R'000
 
  
Assets 
Non-current assets  24 657 174  532 972  –  25 190 146    
Current assets  881 147  22 759  766 734  1 670 640    
Assets classified as held-for-sale  –     –     2 098 918     2 098 918    
Total assets  25 538 321     555 731     2 865 652     28 959 704    
Liabilities 
Non-current liabilities  4 403 050  127 066  –  4 530 116    
Current liabilities  1 749 285  –  2 049 629  3 798 914    
Liabilities associated with assets classified as held-for-sale  –     –     1 359 216     1 359 216    
Total liabilities  6 152 335     127 066     3 408 845     9 688 246    
 
   June 2019 
R'000
 
June 2019 
R'000
 
June 2019 
R'000
 
June 2019 
R'000
 
  
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    
Assets classified as held-for-sale  –     –     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  1 461 881  –  22 600  1 484 481    
Liabilities associated with assets classified as held-for-sale  –     –     1 098 300     1 098 300    
Total liabilities  5 258 634     110 401     3 792 733     9 161 768