Hyprop Investments Limited Integrated annual report 2017

Hyprop Investments Limited

Integrated annual report and consolidated financial statements

2017

Framework/process

The board reviews and monitors the effectiveness of internal control systems, assisted by the audit and risk committee. This committee is assisted by

management reporting and periodic reviews, as well as reports from an independent internal audit service provider. The committee reports to the

board on the findings of the internal audit function.

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 a statutory reporting level.

Strategic response/mitigation

Key performance

deliverable

Hyprop shopping centres are well established, in dominant locations and attract flagship stores

Arrears, trading densities,

rent affordability

Contractual lease income with financially sound tenants (most are reputable national companies with strong balance sheets

and proven business models)

Arrears, trading densities,

rent affordability

Geographic diversification (eg sub-Saharan Africa and South-Eastern Europe)

High ratio of fixed interest rate debt

Distribution growth

Introduced unsecured debt via debt capital market funding (DCM)

Strategic imperative. Plan in place to achieve incremental and sustainable improvements

Independent BBBEE rating

Implement alternative water supply and water savings initiatives

Cost of occupancy –

water consumption

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