About this report

In 2013, Hyprop changed its year-end from 31 December to 30 June. In line with JSE regulations, our previous integrated report presented the financial results and non-financial performance of the group for the six months to 30 June 2013, and followed the integrated report for the year ended 31 December 2012 which was published in May 2013. Financial comparisons in this report are against the six or 12 months to 30 June 2013, as specified. Non-financial comparatives are 30 June 2014 against 30 June 2013.

The content of this integrated report identifies and explains the material economic, social, governance and environmental issues facing the group and their impact. This enables stakeholders to accurately evaluate our ability to create and sustain value over the short, medium and long term.

The scope of reporting on our sustainability initiatives covers the group holding company and shopping centres in our South African portfolio.

In terms of material changes to the size, structure or ownership of the group, the acquisition of Somerset Mall in exchange for the majority of Hyprop’s investment in Sycom Property Fund (Sycom) was concluded on 1 October 2013. In addition, Hyprop converted to a REIT structure effective 1 July 2013 (page 5) and acquired an 87% interest in African Land Investments Limited on 5 December 2013. As part of the REIT conversion process, Hyprop’s combined unit structure was converted to an all share structure effective on 18 August 2014. Future distributions will be classified as dividends.

Results have been prepared in accordance with International Financial Reporting Standards (IFRS), the SAICA Financial Reporting Guides as issued by the Accounting Practices Committee and Financial Reporting Pronouncements as issued by the Financial Standards Council, the JSE Limited Listings Requirements and the South African Companies Act 2008.

Accounting policies applied in preparing these results are consistent with those applied in the audited financial statements for the prior financial period.

We have applied many of the recommendations in the International Integrated Reporting Committee’s 2013 framework. We have also considered the guidelines of the Global Reporting Initiative and its construction and real estate sector supplement (collectively GRI G3.1), as well as new disclosure standards in GRI G4 which become effective for our 2015 financial year. In financial year 2014, Hyprop compiled its first submission to the Carbon Disclosure Project, a voluntary and comprehensive international benchmark on environmental reporting.

Materiality

Materiality is a defining principle in determining relevant information for this report and is one of four principles for reporting content under the GRI G3.1 guidelines. As detailed on our website, the board has considered matters deemed material to the business of Hyprop and its stakeholders, and has addressed issues that:

	Have direct short-term significant financial impacts
	Are agreed strategic policy statements
	Are peer-based norms
	Are considered important enough to act on by stakeholders (internal and external)
	Are considered social norms, as indicated by current and possible future regulations, and institutionalised norms and standards

Assurance

Hyprop’s external auditors, Grant Thornton, have audited the financial statements for the year ended 30 June 2014. Their unqualified audit report appears on page 74. The scope of their audit was limited to information in the financial statements on pages 78 to 135. In line with best practice, we take a combined view of our assurance activities to ensure all material aspects are covered.

Board approval

The audit committee acknowledges its responsibility on behalf of the board to ensure the integrity of the Hyprop integrated report 2014. The committee has accordingly reviewed the report and believes it appropriately and sufficiently addresses all material issues, and fairly presents the integrated performance of Hyprop, its subsidiaries and associates for the period, within the scope set out above.

The board has approved this integrated report.

Forward-looking statement

This integrated report contains forward-looking statements that, unless otherwise indicated, refl ect our expectations as at 30 June 2014. Actual results may diff er materially from the group’s expectations if known and unknown risks or uncertainties aff ect its business, or if estimates or assumptions prove inaccurate. The group cannot guarantee that any forward-looking statement will materialise and, accordingly, readers are cautioned not to place undue reliance on these statements. The group assumes no obligation to update or revise any forward-looking statement if new information becomes available, other than as stipulated by the JSE Listings Requirements.