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Executive management implements controls to ensure the validity, accuracy and completeness of financial information. These controls are reviewed by
internal and external audit. External audit reports on the fair presentation of financial information at statutory reporting level. On an operational level,
this is done by the executive committee.
The risk committee
The risk committee is constituted as a subcommittee of the board. The committee has an independent role, operating as an overseer and makes
recommendations to the board for its consideration and final approval. The committee does not assume the functions of management, which remain
the responsibility of the executive directors, officers and other members of senior management. The role of the committee, inter alia, is to adopt and
implement an appropriate risk management policy, which is in accordance with industry practice. For further detail in respect of the role and mandate
of the risk committee, please refer to the risk committee charter online.
Stakeholder
Strategic response/mitigation
Key performance indicator
Q
Providers of capital (debt and equity
investors and financial institutions)
Q
Tenants
Q
Mall customers
Q
Facilitate strong trading environments by developing shopping
destinations of choice, offering an attractive tenant mix with
exciting brands and flagship stores in a safe, clean and friendly
environment
Arrears, trading densities, rent
affordability
Q
Tenants
Q
Providers of capital (debt and equity
investors, financial institutions)
Q
Mall customers
Q
Hyprop malls are well established, in dominant locations and
often attract flagship stores
Q
Contractual lease income with financially sound tenants (most
tenants are reputable national companies with strong balance
sheets and proven business models)
Q
Increase shopper time spent in malls, through initiatives such as
wi-fi and active marketing and social media strategies
Q
Provide geographic diversification (eg sub-Saharan expansion)
Arrears, trading densities, rent
affordability
Q
Providers of capital (debt and equity
investors and financial institutions)
Q
Increased borrowing costs result in reduced distributable
income
Q
94,5% of debt fixed for 5,2 years, and staggered fixed interest
rate
Q
Proactive management of interest-bearing borrowings
Maturity profile, cost of funding
Q
Providers of capital (debt and equity
investors and financial institutions)
Q
Provide economic and geographic diversification through
sub-Saharan investments
Q
High ratio of fixed debt
Q
Introduction of unsecured debt in the form of debt capital
market funding (DCM)
Distribution growth
Q
Tenants
Q
Mall customers
Q
Providers of capital (debt and equity
investors, financial institutions)
Q
Meet tenant demand through extensions and tenant
relocations
Q
Demand for space in Hyprop centres continues to outstrip
supply, resulting in a strong pipeline of prospective tenants
Q
The executive committee meets monthly to discuss
operational performance
Leasing activity, rental growth,
contractual escalations, workload
(percentage of total leases
expiring in one financial year)
Q
Tenants
Q
Mall customers
Q
Providers of capital (debt and equity
investors, financial institutions)
Q
Close engagement with tenants throughout their tenure
Workload
Q
Stagger major lease expiries
Q
Proactively manage lease expiries
Q
Ensure a strong pipeline of prospective tenants
Q
Monthly lease expiry and related workload reports to executive
committee
29
Hyprop Investments Limited
Integrated Report 2015