144 / 156
NOTES TO THE FINANCIAL STATEMENTS
continued
for the year ended 30 June 2015
36. Financial risk management
continued
Company
Note
Weighted
average
effective
interest rate
%
One year
or less
R000
One to
five years
R000
More than
five years
R000
Total
R000
Year ended 30 June 2014
Financial assets
Derivative instruments
19
32 978
32 978
Loans receivable
10
47 674
47 674
Receivables
11
102 629
102 629
Cash and cash equivalents
12
61 257
61 257
Total financial assets
211 560
32 978
244 538
Financial liabilities
Debenture capital
(1)
Variable
5 730 187
5 730 187
Interest-bearing borrowings
18
8,20
2 013 031
3 792 566
5 805 597
Payables
21
335 626
335 626
Combined shareholders for distribution
Variable
585 877
585 877
Derivative instruments
19
39 811
39 811
Total financial liabilities
2 934 534
3 832 377
5 730 187
12 497 098
(1)
Transferred to stated capital (converted to equity) in August 2014
Interest rates are monitored and appropriate steps taken to ensure that Hyprop’s exposure to interest rate fluctuations is limited.
Interest rates have been fixed for periods ranging from 2016 to 2024 with an average maturity of 5,2 years. The average maturity of
the fixed interest rate agreements and interest rate swaps is disclosed in note 18 and 19. The average rate of interest at year-end
(applicable to total debt) was 7,1% (2014: 7,5%). The primary reason for the reduction in the average interest rate for the year was due
to an increase in the proportion that US Dollar funding comprises of total debt.
Credit risk
Credit risk arises from the risk that a counterparty may default or not meet its obligations timeously. Credit risk is limited to the
carrying amount of financial assets at the reporting date.
Receivables
Trade receivables consist of a large, widespread tenant base. The financial position of tenants is monitored on an ongoing basis. An
allowance is made for all specific doubtful debts at year-end. Management does not consider there to be any material credit risk
exposure that is not already covered by a doubtful debt allowance. The carrying value of receivables is considered to be a reasonable
approximation of fair value.
142
Hyprop Investments Limited
Integrated Report 2015
FINANCIAL STATEMENTS