| NOTES TO THE FINANCIAL STATEMENTS l NOTE 36 |
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36. |
Capital management |
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The company’s borrowings (excluding debentures) are limited to 60% (2013: 55%) of the directors’ bona fide valuation of the consolidated
property portfolio, including listed property securities. Following the conversion to a REIT on 1 July 2013, the maximum permitted
gearing ratio was aligned in the company’s MoI to JSE Listings Requirements, which currently permit a maximum gearing level of 60%.
The company is funded by bank debt, debt capital market funding, and in some instances, new equity (formerly debenture capital).
The company’s capital management objective is to maintain a strong capital base to provide sustainable returns to unitholders and
other stakeholders over the long term.
Hyprop’s unutilised borrowing capacity at 30 June can be summarised as follows: |
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GROUP
June 2014
R000 |
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GROUP
June 2013
R000 |
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COMPANY
June 2014
R000 |
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COMPANY
June 2013
R000 |
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| Value of property portfolio(1) |
25 819 264 |
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22 246 615 |
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24 174 738 |
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22 124 880 |
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| 60%/55% thereof |
15 491 559 |
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12 235 638 |
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14 504 843 |
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12 168 684 |
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| Total gross borrowings (long term and short term) |
7 198 853 |
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5 384 486 |
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5 805 597 |
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5 051 914 |
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| Unutilised borrowing capacity |
8 292 706 |
|
6 851 152 |
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8 699 246 |
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7 116 770 |
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| (1) Includes listed property securities |
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| NOTES TO THE FINANCIAL STATEMENTS l NOTE 36 |
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