Hyprop Investments Limited Integrated annual report 2017

30 / 148

28 Hyprop Investments Limited
Integrated annual report and consolidated financial statements2017
Value
creation
At Hyprop, we see value as more than financial returns. We
strive to create value for stakeholders, be a good corporate
citizen and operate our business sustainably. This is achieved
by pursuing sustainable total returns, remaining relevant in the
societies in which we operate, and being cognisant of our
impact on the environment and its impact on our business.
Value creation is linked to our approach to good governance and ethical leadership. Management understands that the purpose of business is to increase
profitability, provide sustainable total returns and create value. To achieve this, management considers current opportunities and strengths, and explores
ways in which to mitigate risks and threats.
Good corporate governance as a lever for value creation
Ethical leadership
Align business strategy to corporate values, while considering our impact on the economy, society, stakeholders and the environment.
Governance of the six capitals Key to value creation Value created:
How value is shared
by investors and other
stakeholders
Investment excellence
Grow a specialised portfolio
of high-quality, dominant
shopping centres by
pursuing appropriate yield-
enhancing acquisitions
Active asset management
Maximise efficiencies, seek
expansion and redevelopment
opportunities (for existing
shopping centres)
Effective debt management
Fix interest rates and increase
average period of hedged debt
book
Effective leasing management
Focus on contractual rental
escalations and
improving the tenant mix
Employee development
Targeting and achieving key skills
retention, diversity and effective
succession planning through
proactive human resources
management
Shareholders
Value is received through dividends
and growth in the Hyprop share price
Tenants
The quality of our malls and
superior tenant mix attracts
customers and creates business
opportunities for tenants
Suppliers
Support of local supply chains
provides local job opportunities
Employees
Development, rewards and
long-term incentives to retain skilled
and motivated employees
Communities
Communities benefit from
numerous socio-economic projects
coordinated through the Hyprop
Foundation
Manufactured capital
governance
Ensure that
manufactured capital
generates capital
appreciation and
income growth
Intellectual capital
governance
Intellectual property and
corporate culture are
critical to growth and to
preserving, growing and
retaining skills
Natural capital
governance
Ensure that operations
(including
redevelopments) limit
their impact on the
environment
Human capital
Provide opportunities
for our employees to
apply their knowledge
and skills in a
stimulating
environment
Social and relationship
capital governance
Ensure that interactions
with local stakeholders
are meaningful and
constructive
Financial capital
governance
Ensure that systems are
in place that monitor
and enhance income
growth and capital
appreciation