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9

Hyprop Investments Limited

Integrated annual report 2016

Rosebank Mall, Johannesburg, Gauteng

Key to value creation

Investment excellence:

grow a specialised

portfolio of high-quality, dominant

retail property investments by pursuing

appropriate yield-enhancing acquisitions

in emerging markets

Active asset management:

maximise

efficiencies, seek expansion and

redevelopment opportunities (for existing

shopping centres)

Effective capital and debt management:

fix interest rates and increase average

period of hedged debt book

Effective leasing management:

focus on

contractual rental escalations and improve

tenant mix

Employee development, key skills

retention, diversity and succession

planning:

enhance productivity

through training and proactive focus

on black economic empowerment and

employment equity

Risks*

Low GDP growth

• Slowing consumer spend affects

trading densities and rent ratios

• Volatility of ZAR exchange rate

against USD and EUR

• Possibility of sovereign credit rating

downgrade

• Rising cost of occupancy for tenants

due to increasing municipal services

tariffs

* View full risk matrix on pages 32 to 39.

Opportunities

• Pursue appropriate yield enhancing,

quality acquisitions in emerging

markets; specifically in Eastern

Europe, which benefits from a

low interest rate environment

• Use tenant failures or lease expiries to

enhance the tenant mix in our malls

• International retailers looking to

expand locally

Material focus areas