146 / 156
NOTES TO THE FINANCIAL STATEMENTS
continued
for the year ended 30 June 2015
37. Capital management
The company’s borrowings are limited to 60% (2014: 60%) of the directors’ bona fide valuation of the consolidated property portfolio,
including listed property securities (if applicable). Following the conversion to a REIT on 1 July 2013, the maximum permitted gearing
ratio per the company’s Memorandum of Incorporation was aligned to the 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 shareholders and
other stakeholders over the long term.
Hyprop’s unutilised borrowing capacity at 30 June can be summarised as follows:
GROUP
June 2015
R000
GROUP
June 2014
R000
COMPANY
June 2015
R000
COMPANY
June 2014
R000
Value of property portfolio
28 565 526
25 819 264
26 226 405
24 174 738
60% thereof
17 139 316
15 491 559
15 735 843
14 504 843
Total gross borrowings (long term and short term)
6 691 909
7 198 853
5 259 966
5 805 597
Unutilised borrowing capacity
10 447 407
8 292 706
10 475 877
8 699 246
144
Hyprop Investments Limited
Integrated Report 2015
FINANCIAL STATEMENTS