Hyprop Investments Limited

About this report

This integrated annual report covers the activities of Hyprop Investments Limited (Hyprop) for the financial year ended 30 June 2016, and follows a similar report for the year ended 30 June 2015.

Hyprop provides a broad view of the company’s strategy and performance in the integrated annual report, with additional information available online, to enable stakeholders to assess our ability to create and sustain value over the short, medium and long term. This report identifies and explains the material economic, social, governance and environmental issues facing the group and their impact. We regard this as a valuable opportunity to connect with our stakeholder groups and respond to matters raised.

Scope and boundary

Reporting on our sustainability initiatives (in the South African portfolio) covers the group holding company and shopping centres in our sub-Saharan Africa portfolio (including South Africa) and the South-Eastern European portfolio.

Material changes to the size, structure or ownership of the group during the year included:

• The acquisition of a 75% interest in Ikeja City Mall (Nigeria), and 60% interest in two South-Eastern European malls, Delta City Belgrade (Serbia) and Delta City Podgorica (Montenegro)
• The sale of non-core assets, Somerset Value Mart and Glenfield Office Park (post year-end).

Reporting principles and integrated reporting

Hyprop’s sustainable value creation is linked to our approach to ethical leadership and how we employ our six capitals (financial, operational/manufactured, intellectual, human, social and relationship, and natural). This integrated annual report is a holistic presentation of the group’s performance and we believe it fairly reflects Hyprop’s commitment to value creation, sustainability, corporate citizenship and integrated thinking.

We aim to continually improve our integrated reporting. We are embedding the guiding principles and concepts of the International Integrated Reporting Council’s (IIRC) framework. Where practical, we have considered and applied guidelines from King III and the Global Reporting Initiative (GRI G4), and incorporated feedback from our stakeholders.

The group annual financial statements were prepared in accordance with International Financial Reporting Standards (IFRS), the SAICA financial reporting guides issued by the accounting practices committee and financial reporting pronouncements issued by the Financial Standards Council, the JSE Listings Requirements and the South African Companies Act 2008. Accounting policies applied in preparing these financial statements are consistent with those applied for the prior period.

In this reporting period, Hyprop compiled its third submissions to the Carbon Disclosure Project (CDP), a voluntary and comprehensive international benchmark on environmental reporting and carbon disclosure, and to the Global Real Estate Sustainability Benchmark (GRESB). These submissions underscore our commitment to both responsible citizenship and best practice in this area.

Clearwater Mall, Johannesburg, Gauteng

Materiality

The board has considered matters viewed as material to the business of Hyprop and its stakeholders, and addressed issues that:

• Are agreed strategic policy items
• Are peer-based norms
• Are considered social norms, as indicated by current and likely future regulations, and institutionalised norms and standards.

Assurance

Hyprop’s external auditors, KPMG, have audited the group financial statements for the year ended 30 June 2016. Their unqualified audit report can be found here. The scope of the audit was limited to information in the group financial statements. In line with best practice, we take a combined view of our assurance activities to ensure all material aspects are covered.

Board approval

The audit committee acknowledges its responsibility on behalf of the board to ensure the integrity of the Hyprop integrated annual report 2016. The committee has reviewed the report and believes it appropriately and sufficiently addresses all material issues, and fairly presents the integrated performance of Hyprop, its subsidiaries, joint ventures and associates for the period, within the scope set out above.

The board has approved this integrated annual report.

 

Pieter Prinsloo	Laurence Cohen	Lindie Engelbrecht
Chief executive officer	Financial director	Audit committee chairman

 

Forward-looking statement

This integrated annual report contains forward-looking statements that, unless otherwise indicated, reflect our expectations as at 30 June 2016. Actual results may differ materially from the group’s expectations if known and unknown risks or uncertainties affect its business, or if estimates or assumptions prove inaccurate. The group cannot guarantee that any forward-looking statement will materialise and, accordingly, readers are cautioned not to place undue reliance on these statements. The group assumes no obligation to update or revise any forward-looking statement if new information becomes available, other than as stipulated by the JSE Listings Requirements.