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Hyprop Investments Limited
Integrated annual report 2016
Strategic response/mitigation
Key performance indicator
Risk
(up/no
change/
down)
•
•
Maintain conservative gearing levels
•
•
Ensure available funding to cover capital requirements
•
•
Diversified sources of funding
•
•
Undrawn facilities and capacity under debt
capital market programme, covenants
•
•
Reduction in borrowing costs enhanced distributions
•
•
89,6% of SA debt fixed for 4,9 years, and 72,4% of USD debt fixed
for 3,7 years
•
•
Proactive management of interest-bearing borrowings
•
•
Maturity profile, cost of funding
•
•
Retention strategy includes performance incentives, remuneration
benchmarking, personal development plans
•
•
Share scheme implemented
•
•
Succession plans reviewed biannually by nomination and remuneration
committee
•
•
Strategy implementation
•
•
Staff turnover
•
•
Matching debt with income (USD)
•
•
Consider hedging exposure in terms of material dividends received
•
•
Size of dividend (current percentage of
income)
•
•
Hyprop malls are well established, in dominant locations and attract
flagship stores
•
•
Strong lease agreements with financially sound tenants (most are
reputable national companies with strong balance sheets and proven
business models)
•
•
Arrears, trading densities, rent affordability
•
•
Employ local, on-site management teams
•
•
Implement optimal holding structures
•
•
Ability to deliver development projects on
time and within budget
•
•
Ability to conduct day-to-day operational
activity
•
•
Investment still a small percentage of Hyprop’s total portfolio
•
•
USD yields
•
•
Reduce size of investment/scale down investment in the face of
risk/elect not to invest at all
•
•
Conduct studies to ensure adequate pre-let requirements are met prior
to developments
•
•
Initial yield on opening
•
•
Consider alternative tax structures
•
•
Low tax rate
no change to risk
risk reduced
risk increased