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HYPROP CAPITALS
GROUP OVERVIEW
Hyprop capitals
*
Focus
areas
Operational
– Upgrading
and enlarging our existing
portfolio; pursuing
appropriate acquisitions
and disposing of non-core
assets
Human
– Black economic
empowerment and
employment equity
Financial
– Fixed interest
rates of 94,5% of debt
(from 71,4%) and increased
average period of cover to
5,2 years (from 4,2 years)
Social and relationship
–
Support local communities
and stakeholders
Intellectual
– Optimal use
of technology
Measure
Operational
– Dividend/
distribution growth;
shopping centre
contribution to net
income; refurbishments
and expansions
Human
– Key skills
retention; skills
development; diversity;
succession planning
Financial
– Occupancy
level; tenant arrears; rent
collections; cost of funding
Natural
– Resource
management: implementing
environmental strategy
(page 53)
Social and relationship
–
Community development;
connecting with shoppers
Material
issues
Operational
– Turnover
densities; tenant mix;
increases in cost of
occupancy
Natural
– Energy, water and
waste management
Financial
– Africa expansion;
growth in South Africa
Human
– Succession
planning; diversity
Intellectual
– Use of
technology
Material risks identified
by the group in terms
of probability, as well as
potential impact, are set
out on pages 28 to 31
Risks
Operational
– Slowing
consumer spend; increased
supply of retail space;
impact of extensions on
existing operations; cost
of occupancy (municipal
and electricity tariffs);
deterioration of municipal
services and administration;
black economic
empowerment rating
Financial
– Lack of available
funding; rising interest rates;
sub-Saharan Africa: currency
risk, political risk
Natural
– Cost and security
of electricity and water
supply; increased legislation
Intellectual
– Inefficient
use of technology escalates
operating costs; loss of data
New technology
– Footfall;
changes in technology (high-
speed wi-fi) in our business
* Capitals (financial, operational, intellectual, human, social and relationship and natural) are further defined in the Hyprop business model on page 26.
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Hyprop Investments Limited
Integrated Report 2015