About this report

Reporting principles and integrated reporting

This integrated annual report presents the performance and activities of Hyprop Investments Limited (Hyprop) for the financial year ended 30 June 2017. It reflects our commitment to good performance, sustainable value creation, ethical leadership, corporate citizenship, legitimate stakeholder interactions and integrated thinking.

With this report, we aim to provide a transparent and balanced appraisal of the issues that are material to the company and their impact on our company. It provides a broad view of the company's strategy and performance, and enables stakeholders to assess our ability to create and sustain value. We regard this as a valuable opportunity to connect with our stakeholder groups and respond to matters raised.

This report should be read in conjunction with the full consolidated financial statements.

We are continually improving our integrated reporting. We have embedded the guiding principles and concepts of the International Integrated Reporting Council's (IIRC) framework. While Hyprop applied King III principles for the review period, where practical we have considered, applied and explained the guidelines of the latest King report on corporate governance (King IV), as well as those of the Global Reporting Initiative (GRI G4), and incorporated feedback from our stakeholders.

The consolidated financial statements were prepared in accordance with International Financial Reporting Standards (IFRS), SAICA and Financial Standards Council financial reporting guides, JSE Listings Requirements and the South African Companies Act 2008. Accounting policies used to prepare these consolidated financial statements are consistent with those applied in the prior period.

In this reporting period, Hyprop was confirmed as a FTSE4Good Emerging Index constituent. We also compiled our fourth submission to the Carbon Disclosure Project (CDP), a comprehensive voluntary international benchmark on environmental reporting and carbon disclosure, and the Global Real Estate Sustainability Benchmark (GRESB). Our CDP submission is audited and assured by KPMG's climate change and sustainability services division.

Scope and boundary

Reporting on our sustainability initiatives covers the group holding company and our South African and Nigerian properties.

Material changes

Material changes to the size, structure or ownership of the group:

  • Acquisition of a 60% interest in a Macedonian property, Skopje City Mall
  • Agreement to acquire a 60% interest in The Mall in Sofia, Bulgaria (post year-end)
  • Completion of Kumasi City Mall in Ghana in April 2017 (AttAfrica)
  • Sale of non-core assets Somerset Value Mart, Glenfield Office Park, Willowbridge South and Glenwood Office Park.

Assurance

Hyprop's external auditors, KPMG Inc, have audited the consolidated financial statements for the year ended 30 June 2017. Their unqualified audit report can be found here. The scope of the audit was limited to information in the consolidated financial statements found here. In line with best practice, we take a combined view of our assurance activities to ensure that all material aspects are covered.

The company does not currently obtain separate assurance on sustainability reporting (apart from the noted assurance on our CDP submission).

Contact

We welcome your feedback on this report. Please direct this to investor relations, at investorrelations@hyprop.co.za.

Board approval

The audit committee acknowledges its responsibility on behalf of the board to ensure the integrity of the Hyprop integrated annual report 2017. The committee has reviewed the report and believes that it appropriately and sufficiently addresses all material issues, and fairly presents the integrated performance of Hyprop, its subsidiaries, joint ventures and associates for the year ended 30 June 2017, within the scope set out above.

The board has approved this integrated annual report.

Gavin Tipper
Chairman
  Pieter Prinsloo
Chief executive officer