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

Financial capital governance Ensure that systems are in place that monitor and enhance income growth and capital appreciation		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

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