Notes to the consolidated and separate financial statementss

SEGMENTAL ANALYSIS

C 1

OVERVIEW AND DEFINITIONS

An operating segment is:

a component of an entity that engages in business activities from which it may earn revenues
the operating results of which are regularly reviewed by the group’s chief operating decision maker to make decisions about resources to be allocated and to assess its performance, and
for which financial information is available.

The group’s identification of its segments and the measurement of segment results are based on the group’s internal management reporting used for day-to-day decision-making and reviewed by the chief executive officer. The segments have been identified according to their location, other than assets held-for-sale. The primary measures of segment profit is net operating income and distributable income.

Intersegment revenues and transfers are accounted for as if the transactions were concluded with third parties at arm’s length market prices.

The segments are supported by the group head office, which provides support in the areas of finance, human resources, governance and compliance, risk management and information technology. Additional information relating to other performance measures is provided. Properties (of any previous segment) that have been classified as held-for-sale according to IFRS 5: Non-current assets held-for-sale are reported under their geographic segments. There is one property in this segment (2018: one).

The group comprises the following business segments and sectors:

Business segment	Description and basis of segmentation	Sector
SOUTH AFRICA	The SA portfolio comprises all South African shopping malls and offices irrespective of size. There are nine centres in this segment (2018: nine). Included in this segment are the combined results of the various support services provided to the group from South Africa including: group finance, Stratco, group asset management and development, human resources, legal and compliance, investor relations, group marketing and group facilities management.	SA
EASTERN EUROPE	The EE portfolio comprises interests in dominant shopping centres in the Balkan region of Eastern Europe held through the group’s 60% interest in Hystead. There are six properties in this segment (2018: six).	EE
SUB-SAHARAN AFRICA	The SSA portfolio comprises interests in shopping centres in southern and western Africa, excluding South Africa, held through Hyprop Mauritius, a wholly owned subsidiary.	SSA

C 2

SEGMENTAL ANALYSIS – PROFIT OR LOSS

		SOUTH AFRICA	EASTERN EUROPE	SUB-SAHARAN AFRICA	GROUP
GROUP	Note	30 June 2019 R000	30 June 2019 R000	30 June 2019 R000	30 June 2019 R000
Revenue	D1	3 003 847	–	214 001	3 217 848
Rental and other lease income		2 157 540	–	172 637	2 330 177
Straight-line rental income accrual		(81 399)	–	(6 488)	(87 887)
Recoveries		927 706	–	47 852	975 558
Impairment of trade receivables		(23 712)	–	(23 340)	(47 052)
Property expenses	D2	(1 068 708)	–	(63 294)	(1 132 002)
Net property income		1 911 427		127 367	2 038 794
Other operating expenses	D2	(44 969)	4 284⁽¹⁾	(915)	(41 600)
Operating income		1 866 458	4 284	126 452	1 997 194
Net interest	D3	(239 190)	–	(221 965)	(461 155)
Interest income		74 067	–	81 976	156 043
Interest expense		(313 257)	–	(303 941)	(617 198)
Guarantee fee income		–	40 542	–	40 542
Dividends received	D4	–	221 190	–	221 190
Net income/(loss) before fair value adjustments		1 627 268	266 016	(95 513)	1 797 771
Changes in fair value		(209 128)	(85 229)	(292 726)	(587 083)
Profit on disposal of investment property		2 825	–	–	2 825
Impairment of loans receivable	F1	–	–	(1 350 727)	(1 350 727)
Other impairments		–	–	(29 964)	(29 964)
Derecognition of financial guarantees		–	185 686	–	185 686
Profit/(loss) before taxation		1 420 965	366 473	(1 768 930)	18 508
Taxation		(1 730)	–	94 758	93 028
Profit/(loss) for the year		1 419 235	366 473	(1 674 172)	111 536
Calculation of distributable income
Net income/(loss) before fair value adjustments		1 627 268	266 016	(95 513)	1 797 771
Adjusted for:		67 743	–	37 154	104 897
Straight-line rental income accrual		81 399	–	6 488	87 887
Non-controlling interest		–	–	30 959	30 959
Taxation paid		–	–	(427)	(427)
Net interest adjustments		–	–	134	134
Other fair value adjustments – Edcon		(12 705)	–	–	(12 705)
Capital items for distribution purposes		(951)	–	–	(951)

Distributable income		1 695 011	266 016	(58 359)	1 902 668

⁽¹⁾

R4 284 (2018: R7 277) relates to foreign exchange gains realised on dividends from Hystead and guarantee fee income from PDI.

		SOUTH AFRICA	EASTERN EUROPE	SUB-SAHARAN AFRICA	GROUP
GROUP	Note	30 June 2018 R000	30 June 2018 R000	30 June 2018 R000	30 June 2018 R000
Revenue		2 889 135	–	224 578	3 113 713
Rental and other lease income	D1	2 071 763	–	172 887	2 244 650
Straight-line rental income accrual		(4 696)	–	849	(3 847)
Recoveries		822 068	–	50 842	872 910
Impairment of trade receivables		(12 825)	–	(18 264)	(31 089)
Property expenses	D2	(943 321)	–	(75 482)	(1 018 803)
Net property income		1 932 989	–	130 832	2 063 821
Other operating expenses	D2	(61 960)	7 277⁽¹⁾	(1 095)	(55 778)
Operating income	D3	1 871 029	7 277	129 737	2 008 043
Net interest		(280 812)	–	(1 461)	(282 273)
Interest income		70 545	–	242 005	312 550
Interest expense		(351 357)	–	(243 466)	(594 823)
Guarantee fee income			46 671	–	46 671
Dividends received	D4	2 253	180 525	–	182 778
Net income before fair value adjustments		1 592 470	234 473	128 276	1 955 219
Changes in fair value		666 318	87 761	12 973	767 052
Profit on disposal of investment property		2 697	–	–	2 697
Impairment of loans receivable	F1	–	–	(166 441)	(166 441)
Derecognition of financial guarantees		(29 409)	41 393	–	11 984
Other impairments		(10 102)	–	–	(10 102)
Profit/(loss) before taxation		2 221 974	363 627	(25 192)	2 560 409
Taxation		(11 838)	–	(27 648)	(39 486)
Profit/(loss) for the year		2 210 136	363 627	(52 840)	2 520 923
Calculation of distributable income
Net income before fair value adjustments		1 592 470	234 473	128 276	1 955 219
Adjusted for:		(796)	–	(49 909)	(50 705)
Straight-line rental income accrual		4 696	–	(849)	3 847
Non-controlling interest		–	–	2 600	2 600
Taxation paid		–	–	(4 381)	(4 381)
Net interest adjustments		–	–	(47 279)	(47 279)
Capital items for distribution purposes		(5 492)	–	–	(5 492)

Distributable income		1 591 674	234 473	78 367	1 904 514

⁽¹⁾

R4 284 (2018: R7 277) relates to foreign exchange gains realised on dividends from Hystead and guarantee fee income from PDI.

C 3

SEGMENTAL ANALYSIS – FINANCIAL POSITION

		SOUTH AFRICA	EASTERN EUROPE	SUB-SAHARAN AFRICA	GROUP
GROUP	Note	30 June 2019 R000	30 June 2019 R000	30 June 2019 R000	30 June 2019 R000
Assets
Non-current assets		28 639 145	237 291	–	28 876 436
Current assets		1 151 002	19 262	1 559 025	2 729 289
Non-current assets classified as held-for-sale	E7.3	–	–	2 047 847	2 047 847
Total assets		29 790 147	256 553	3 606 872	33 653 572
Liabilities
Non-current liabilities		3 796 753	110 401	2 671 833	6 578 987
Current liabilities		1 461 880	–	22 600	1 484 481
Liabilities associated with non-current assets held-for-sale	E7.4	–	–	1 098 300	1 098 300
Total liabilities		5 258 634	110 401	3 792 733	9 161 768

GROUP	Note	30 June 2018 R000	30 June 2018 R000	30 June 2018 R000	30 June 2018 R000
Assets
Non-current assets		28 781 990	171 280	4 997 854	33 951 124
Current assets		790 451	94 273	130 371	1 015 095
Non-current assets classified as held-for-sale	E7.3	199 257	–	–	199 257
Total assets		29 771 698	265 553	5 128 225	35 165 476
Liabilities
Non-current liabilities		3 059 169	185 686	4 958 544	8 203 399
Current liabilities		436 023	–	122 660	558 683
Liabilities associated with non-current assets held-for-sale	E7.4	8 157	–	–	8 157
Total liabilities		3 503 349	185 686	5 081 204	8 770 239

Notes to the consolidated and separate financial statements | Note C

Notes to the consolidated and separate financial statements | Note C

Notes to the consolidated and separate financial statements | Note C

Notes to the consolidated and separate financial statements | Note C

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