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Hyprop Investments Limited
Integrated annual report and consolidated financial statements
2017
81
Performance management
KEY PERFORMANCE DELIVERY OUTCOME
(weighted by responsibility and job grade)
+
INDIVIDUAL PERFORMANCE REVIEWOUTCOME
(weighted by responsibility and job grade)
=
PERFORMANCE MANAGEMENT SCORE
Key performance deliverables and targets (KPDs)
KPD targets are set annually at group and company level and are formally measured. These KPD targets are approved by the remuneration committee
every year to ensure employee performance is aligned with the company’s strategy and deliver on shareholders’ expectations. Progress on defined,
measurable KPDs is communicated to management teams at mid-year with final evaluations at the end of the financial year.
Performance against company targets carries a 90% weighting, while individual reviews carry a 10% weighting at executive and senior management level.
Executive directors are measured against key performance deliverable targets.
Key performance deliverable score against targets and outcomes
2016/2017
KPD score Performance achieved
2017/2018
Key performance
indicator
Weighting Target
Stretch target
Total
out of
100
Target
met/
exceeded
Weighting Target
Financial:
net
distributable income
growth (year on year)
33% 8% net income
growth year on year
10% and above
43% 130% 12,1% distributable
earnings growth
33% 7% net income growth
year on year
Financial:
budget
management (%
within budget)
27% On budget
Exceed budget by 3% 31% 115% Exceeded budget by
1,05%
27% On budget
Leasing:
vacancy
movement (year on
year), rentals
achieved, escalations
and administration
17% Vacancy movement –
0% increase year
on year. Rentals
achieved – on budget.
Rental escalation on
new leases – 8%.
Lease administration –
2% outstanding
documentation
Vacancy movement –
reduced by 5% or more.
Rentals achieved –
7,5% above budget.
Rental escalation on
new leases – 10% or
more. Rental
escalation on renewed
leases – 7,5% or more.
Administration –
0% outstanding
documentation
14% 86% Vacancy movement
increased 114% year
on year.
Rentals achieved on
budget.
7,9% rental escalations
on new leases.
Lease administration
– 5% of documentation
to be finalised
17% Vacancy movement –
0% increase year
on year. Rentals
achieved – on budget.
Rental escalation on
new leases – 7,5%.
Lease administration –
2% outstanding
documentation
Tenant arrears:
deposits and total
outstanding
(as % of rent roll
raised)
7% Total arrears
outstanding – 2%
outstanding as % of
charges raised on rent
roll. Deposits – 2%
outstanding as % of
deposits raised
Total arrears
outstanding – 0%
outstanding as % of
charges raised on rent
roll. Deposits – 0%
outstanding as % of
deposits raised
7% 102% 0,4% total arrears
outstanding
4,5% deposits
outstanding
7% Total arrears
outstanding – 2%
outstanding as % of
charges raised on rent
roll. Deposits – 1,5%
outstanding as % of
deposits raised
Operations:
masterfile
4% Masterfile – 95%
complete
Masterfile – 100%
complete
5% 115% Masterfile 97%
complete
4% Masterfile – 96%
complete
Sustainability:
waste recycling
energy saving
2% Waste recycling – 70%
waste recycled. Energy
saving – 3% kWh
saving year on year
Waste recycling – 80%
or more waste
recycled. Energy saving
– 5% or more kWh
saving year on year
2,45% 123% 79% waste recycling
achieved and 3,6%
energy saving achieved
2% Waste recycling – 75%
waste recycled. Energy
saving – 3% kWh
saving year on year
Employment equity:
% of all new
appointments being
black – African,
Coloured and Indian
5% 50%
80%
6% 115% 73%
5% 70%
BBBEE:
% of
procurement from
companies with BEE
level 1 to 4
3% 60%
80%
4% 130% 89%
3% 72%
Trading performance:
turnover and trading
density
3% 5% trading density
increase year on year.
Footcount consistent
with prior year
8% trading density
increase year on year.
3% footcount increase
year on year
2% 80% Trading density
increased 1,4%.
Footcount decreased
2,9%
3% 4% trading density
increase year on year.
Footcount consistent
with prior year
Total
100%
114%
100%