2 / 160
Hyprop Investments Limited
Integrated annual report 2016
ABOUT THIS REPORT
CONTENTS
This integrated annual report covers the activities of Hyprop
Investments Limited (Hyprop) for the financial year ended 30 June
2016, and follows a similar report for the year ended 30 June 2015.
Hyprop provides a broad view of the company’s strategy and
performance in the integrated annual report, with additional
information available online, to enable stakeholders to assess our
ability to create and sustain value over the short, medium and long
term. This report identi es and explains the material economic, social,
governance and environmental issues facing the group and their
impact. We regard this as a valuable opportunity to connect with
our stakeholder groups and to respond to matters raised.
Scope and boundary
Reporting on our sustainability initiatives covers the group holding
company and shopping centres in our sub-Saharan Africa portfolio
(including South Africa) and the South-Eastern European portfolio.
Material changes to the size, structure or ownership of the group
during the year included:
•
•
The acquisition of a 75% interest in Ikeja City Mall (Nigeria), and a
60% interest in two South-Eastern European malls, Delta City
Belgrade (Serbia) and Delta City Podgorica (Montenegro)
•
•
The sale of non-core assets, Somerset Value Mart and Glenfield
Office Park (post year-end).
Reporting principles and integrated reporting
Hyprop’s sustainable value creation is linked to our approach to
ethical leadership and how we employ our six capitals (financial,
operational/manufactured, intellectual, human, social and relationship,
and natural). This integrated annual report is a holistic presentation
of the group’s performance and we believe it fairly reflects Hyprop’s
commitment to value creation, sustainability, corporate citizenship
and integrated thinking.
We aim to continually improve our integrated reporting. We are
embedding the guiding principles and concepts of the International
Integrated Reporting Council’s (IIRC) framework. Where practical, we
have considered and applied guidelines from King III and the Global
Reporting Initiative (GRI G4), and incorporated feedback from our
stakeholders.
The group annual financial statements were prepared in accordance
with International Financial Reporting Standards (IFRS), the SAICA
financial reporting guides issued by the Accounting Practices
Committee and financial reporting pronouncements issued by the
Financial Standards Council, the JSE Listings Requirements and the
South African Companies Act 2008. Accounting policies applied in
preparing these financial statements are consistent with those applied
in the prior period.
In this reporting period, Hyprop compiled its third submissions to
the Carbon Disclosure Project (CDP), a voluntary and comprehensive
international benchmark on environmental reporting and carbon
disclosure, and to the Global Real Estate Sustainability Benchmark
(GRESB). These submissions underscore our commitment to both
responsible citizenship and best practice in this area.
About this report
IFC
Group overview
Group profile
4
Strategic intent
5
Investment proposition
5
Performance highlights
6
Material focus areas
9
Hyprop’s business structure
10
Management structure
11
Leadership review
Chairman’s report
14
Chief executive officer’s report
16
Financial director’s report
20
Five-year review
24
Value added statement
25
Value creation overview
Hyprop’s business model
28
Stakeholder engagement
30
Risk management
32
Portfolio review
The market in which we operate
42
Property portfolio – South Africa
44
Property portfolio – sub-Saharan Africa
52
Property portfolio – South-Eastern Europe
54
Hyprop’s history
55
Sustainability review
Social and ethics committee report
58
Natural capital: environmental impact
59
Human capital: employee development
63
Social and relationship capital
67
Intellectual capital
69
Governance review
Board of directors
72
Corporate governance
74
King III application (chapter 2)
78
Remuneration review
Remuneration report
84
Group annual financial statements
Approval of the group annual financial statements
93
Declaration of company secretary
93
Report of the audit committee
94
Directors’ report
95
Independent auditor’s report
97
Group annual financial statements
98
Notes to the financial statements
102
Segment analysis
152
Shareholder information
Shareholder analysis
156
Shareholders’ diary
IBC
Distribution details
IBC
Administration
IBC
Separate booklet
Notice of annual general meeting and proxy
Cover: Rosebank Mall, Johannesburg, Gauteng