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Hyprop Investments Limited
Integrated annual report 2016
well as reports from an outsourced internal audit service provider. The
committees report to the board on the findings of the internal audit
function.
Executive management implements controls to ensure the validity,
accuracy and completeness of financial information. These controls
are reviewed by internal and external audit. External audit reports on
the fair presentation of financial information at statutory reporting
level. On an operational level, this is done by the executive
committee.
Risk committee
This board committee has an independent oversight role, making
recommendations to the board for its consideration and final
approval. The committee does not assume the functions of
management, which remain the responsibility of the executive
directors and senior management. The main role of the committee
is to adopt and oversee an appropriate risk management policy,
aligned with industry practice. For further detail on the role and
mandate of this committee, please refer to its charter online.
Strategic response/mitigation
Key performance indicator
Risk
(up/no
change/
down)
•
•
Hyprop malls are well established, in dominant locations and attract
flagship stores
•
•
Arrears, trading densities, rent affordability
•
•
Contractual lease income with financially sound tenants (most are
reputable national companies with strong balance sheets and proven
business models)
•
•
Geographic diversification (eg sub-Saharan and South-Eastern expansion)
•
•
Arrears, trading densities, rent affordability
•
•
High ratio of fixed interest rate debt
•
•
Introduction of unsecured debt in the form of debt capital market (DCM)
funding
•
•
Distribution growth
•
•
Meet tenant demand through extensions and tenant relocations
•
•
Demand for space in Hyprop centres continues to outstrip supply,
resulting in a strong pipeline of prospective tenants
•
•
Leasing activity, rental growth, contractual
escalations, workload (percentage of total
leases expiring in one financial year)
•
•
Stagger major lease expiries
•
•
96% of expired leases renewed on time
•
•
Proactively manage lease expiries
•
•
Ensure a strong pipeline of prospective tenants
•
•
Not to enter into new leases with restrictive clauses
•
•
Monitoring of leases with restrictive
clauses
no change to risk
risk reduced
risk increased