About this report
This integrated annual report for the year ended 30 June 2018 presents Hyprop's performance and activities for the financial year as well as the company's strategy to optimise value for all our stakeholders. We aim to create value in a sustainable and responsible manner, as described in this report.
Reporting scope and boundary
Hyprop is a specialist shopping centre Real Estate Investment Trust (REIT), which operates a portfolio of premium shopping centres in South Africa, sub-Saharan Africa (excluding South Africa) and South-Eastern Europe.
This report should be read in conjunction with the full annual financial statements for a comprehensive understanding of Hyprop and the year under review. Reporting on our sustainability initiatives covers only the South Africa and Nigeria-based operations, in line with the requirement that Hyprop reports on direct holdings that are consolidated.
The reporting process has been guided by the principles contained in the International Integrated Reporting Council's (IIRC) framework and the King Code on Corporate Governance 2016 (King IV). The annual financial statements were prepared in accordance with International Financial Reporting Standards (IFRS), SAICA and Financial Standards Council financial reporting guides, the JSE Listings Requirements and the South African Companies Act 2008. Accounting policies used to prepare these financial statements are consistent with those applied in the prior year.
Our approach to materiality
This report provides information that we believe is of material interest to stakeholders who wish to make an informed assessment of Hyprop's ability to create value over the short-, medium- and long-term.
Material changes to the size, structure or ownership of the group in the year under review include:
- Acquisition of The Mall in Sofia, Bulgaria, and a 90% interest in City Center One East and City Center One West, both in Zagreb, Croatia, via Hystead
- Completion of R276 million of capital projects in South Africa
- Disposal of non-core assets – Willowbridge North.
Hyprop's external auditor, KPMG Inc, has audited the ﬁnancial statements for the year ended 30 June 2018. KPMG's unqualified audit report can be found here. The scope of the audit was limited to information in the consolidated ﬁnancial statements can be found here.
We regard this report as a further valuable opportunity to connect with our shareholders and respond to matters raised. We welcome your feedback on this report. Please direct this to investor relations, at email@example.com.
The audit and risk committee acknowledges its responsibility on behalf of the board to ensure the integrity of the Hyprop integrated annual report 2018. The committee has reviewed the report and believes that it appropriately and sufficiently addresses all material issues, and fairly presents the performance of Hyprop, its subsidiaries and joint ventures for the year ended 30 June 2018.
The consolidated annual financial statements included in this report, were approved by the board on 31 August 2018.
The remainder of the integrated report was approved on 22 October 2018.
Chief executive officer
22 October 2018
This integrated annual report contains forward-looking statements that, unless otherwise indicated, reﬂect our expectations as at 30 June 2018. Actual results may differ materially from the group's expectations if known and unknown risks or uncertainties affect its business, or if estimates or assumptions prove inaccurate. The group cannot guarantee that any forward-looking statements will materialise and, accordingly, readers are cautioned not to place undue reliance on these statements. The group assumes no obligation to update or revise any forward-looking statements if new information becomes available, other than as stipulated by the JSE Listings Requirements.