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Hyprop Investments Limited
Integrated annual report 2016
Top 10 beneficial shareholders
Rank Beneficial shareholder
% of
issued
share
capital
1
Government Employees Pension Fund
13,90
2
Stanlib
4,69
3
Old Mutual
4,57
4 Vanguard
3,39
5
Investec
3,01
6 Eskom Pension and Provident Fund
2,81
7
Prudential Investment Managers
2,40
8 Sasol Pension Fund
2,37
9 Government of Singapore Investment Corporation
2,31
10 Investment Solutions
2,27
Outlook and focus
The resilience of our growth strategies is reflected in our focus on
owning quality shopping centres, catering to middle and higher-
income consumers. Given Hyprop’s geographic diversity, it is pertinent
to examine the outlook by region.
In South Africa, the current low economic growth rate is expected
to be protracted. Any substantial weakening in the Rand exchange
rate raises the likelihood of further hikes in interest rates, with
concomitant impacts along our value chain. However, Hyprop has
excellent assets and a quality management team: we will focus on
these assets by improving the tenant mix, maintain strong operational
performances across the board, continue our programme of
refurbishments and extensions where we see opportunities in our
portfolio, and dispose of non-core assets.
For our operations in sub-Saharan Africa, we expect lower economic
growth for calendar 2016, accompanied by more short-term currency
volatility, particularly in Nigeria. However, consensus market analysis
indicates a possible recovery towards the end of 2017 and into 2018.
Our focus is to bed down our current developments to ensure they
trade successfully and improve our operational performance.
The outlook for South-Eastern Europe is much more positive.
Regionally, there are still good investment opportunities, obviously
only at the right price and yields. Most of these countries are
recording good economic growth. Equally, international brands
are keen to enter these markets and prepared to pay a premium
to establish their presence. This should support income growth in
these centres. We will focus on expansion opportunities, potential
acquisitions and appropriate development proposals.
Against this background, we forecast growth in distributions of
around 10% for the financial year ahead. This forecast has not been
reviewed or reported on by the company’s auditors.
Appreciation
Our board members continue to provide wise counsel and support,
which are deeply appreciated. Equally, I thank our executive team and
all our employees for their commitment and hard work, as well as our
loyal service providers and tenants for their continued support.
Pieter Prinsloo
Chief executive officer