Business overview

Key relationships

Our key relationships are those stakeholders with significant influence on how we do business and with whom we engage regularly.

In line with King IV, we follow an inclusive approach and derive our strategy from understanding our stakeholders’ needs, interests and expectations. These relationships enable us to identify risks and opportunities, and address these proactively to create trust between our stakeholders and us.

The quality of our relationships supports or hampers our ability to operate, as almost every issue raised by our stakeholders can be a risk or opportunity in achieving our strategy. We classify the quality of our relationships into five categories:

KEY RELATIONSHIPS

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Community: developing relationship
STAKEHOLDER AND QUALITY
OF RELATIONSHIP
  BENEFITS
OF ENGAGING
  STRATEGIC
MATTERS
  CONTRIBUTION TO VALUE CREATION   MAIN DISCUSSION
POINTS
  OUR ACTIONS

Through frequent meetings, we have a better understanding of community needs and requirements

 
  • Interacting with our communities gives us the opportunity to understand their needs and further align our business with those needs to remain relevant
  • Job creation, social upliftment and investing in our communities
 




 
  • By investing in the community we directly benefit from their support
 
  • Small and medium enterprises in Midrand allege they are not always included in procurement for the Waterfall development (see risks and opportunities)
 
  • We are creating an online Attacq/Waterfall procurement tool to communicate opportunities
  • We are involved in the community through various events per region
Employees: strong relationship
STAKEHOLDER AND QUALITY
OF RELATIONSHIP
  BENEFITS
OF ENGAGING
  STRATEGIC
MATTERS
  CONTRIBUTION TO
VALUE CREATION
  MAIN DISCUSSION
POINTS
  OUR ACTIONS

Through one-on-one engagements, individual personal development plans are agreed with line management and annual 360° feedback surveys are conducted

 
  • Healthy organisational culture that motivates employees to perform, decreases absenteeism, fosters collaboration and strengthens commitment to embrace our values and strategic objectives
 



   
  • Limited advancement prospects due to flat hierarchical structure
  • Perceived lack of engagement with senior management and executives by employees at our malls
  • Some perceived anxiety after key staff members resigned and their roles remained vacant until suitable replacements were appointed
  • Transformation and employment equity (see risks and opportunities)
  • The perceived culture of departments not collaborating
 
  • Personal growth is encouraged by promoting innovative thinking and collaboration with other teams and individuals
  • Monthly CEO update, including question and answer opportunity
  • Regular visits by senior management and executives to our regional malls
  • Transformation is a priority, with all non-equity appointments presented to the CEO for approval
  • Change in leadership and organisational structure addresses collaboration between departments
Government, municipality and regulators: good relationship
STAKEHOLDER AND QUALITY
OF RELATIONSHIP
  BENEFITS
OF ENGAGING
  STRATEGIC
MATTERS
  CONTRIBUTION TO
VALUE CREATION
  MAIN DISCUSSION
POINTS
  OUR ACTIONS

Frequent meetings and regular engagement

 
  • Harmonious communication on compliance, and to effectively manage the building approval process
     
  • Providing utilities and services as well as building approvals
 
  • Contributing and managing infrastructure
  • Water meter installations and readings
 
  • We have an open line of communication with the regional director of the City of Johannesburg and we regularly engage with local authorities in meetings, eg amicably resolving issues on water meter installations and readings
  • We are committed to full compliance with all applicable legislation
  • We engage regularly to ensure our developments are supported by appropriate infrastructure, including traffic impact assessments
Existing and potential providers of capital: good to strong relationship
STAKEHOLDER AND QUALITY
OF RELATIONSHIP
  BENEFITS
OF ENGAGING
  STRATEGIC
MATTERS
  CONTRIBUTION TO
VALUE CREATION
  MAIN DISCUSSION
POINTS
  OUR ACTIONS

Good attendance at our engagement initiatives and open conversations, competitive term sheets and a desire to do business with us

 
  • Create a larger, diverse shareholder base, while increasing share liquidity and enhancing access to capital
  • Existing funding structures support our business strategy
 


 
  • Provide equity and debt capital
 
  • The revised executive management, specifically CEO, CFO and head of developments
  • REIT conversion, maiden distribution and future growth in distribution per share (DPS) (see risks and opportunities)
  • Macroeconomic conditions and the effect on our business, eg DPS, vacancies and tenant failures
  • Our strategy and performance on our four key value drivers
  • A desire to do business with us
 
  • In line with King IV, we proactively engage with shareholders, investment analysts and financiers in results presentations, site visits, road shows and electronic communication on various platforms, giving regular and transparent feedback
  • Key concerns are covered in stakeholder engagements
  • New head of developments appointed in March 2018
  • Executive management changes implemented in June 2018
  • We converted to a REIT in May 2018 and our maiden DPS will be paid in October 2018
  • We expanded our debt funding group by introducing three new lenders
Shoppers: good relationship
STAKEHOLDER AND QUALITY
OF RELATIONSHIP
  BENEFITS
OF ENGAGING
  STRATEGIC
MATTERS
  CONTRIBUTION TO
VALUE CREATION
  MAIN DISCUSSION
POINTS
  OUR ACTIONS

Increased number of shoppers and footcount at our malls and decreased number of complaints logged

 
  • Understanding shopping patterns, consumer experiences, and the impact of online shopping
 


 
  • Consumer behaviour affects the tenant’s cost of occupancy and therefore future rental income, with an indirect impact on the value of our buildings
 
  • Convenient and secure shopping, compliance with Occupational, Health and Safety Act
 
  • Learn and improve campaigns, activities, initiatives based on shopper, customer or mystery-shopper feedback
  • We provide visible security at retail sites
  • Deal with shopper/consumer complaints as quickly as possible
  • Ongoing innovation, eg our ticketless parking app
  • Engagement through social media, our help desks and complain line
Suppliers: good relationship
STAKEHOLDER AND QUALITY
OF RELATIONSHIP
  BENEFITS
OF ENGAGING
  STRATEGIC
MATTERS
  CONTRIBUTION TO
VALUE CREATION
  MAIN DISCUSSION
POINTS
  OUR ACTIONS

Effective feedback loop created through monthly performance tracker

 
  • By maintaining good relationships and open communication with our suppliers and service providers, we benefit from high service levels that enhance our service to tenants and shoppers
 





 
  • High service levels and quality products from suppliers enhance our service to tenants and shoppers
 
  • Fair and transparent tender processes
  • Fair compensation
  • Create equal opportunity for small and medium enterprises (see risks and opportunities)
 
  • We ensure effective processes are applied in selecting suppliers and service providers, as well as for assessment, certification and payments
  • We engage through regular supplier meetings and performance evaluations
Tenants: good relationship
STAKEHOLDER AND QUALITY
OF RELATIONSHIP
  BENEFITS
OF ENGAGING
  STRATEGIC
MATTERS
  CONTRIBUTION TO
VALUE CREATION
  MAIN DISCUSSION
POINTS
  OUR ACTIONS

Strong tenant retention and low vacancy levels

 
  • Tenant retention and expanding tenant footprint
  • Convert potential tenants to actual tenants
 


 
  • Tenants are our primary customers, providing the rental income that underpins our business
 
  • Cost of occupancy
  • Secure environment
  • Connectivity and traffic congestions
  • Tenant mix
  • B-BBEE compliance (see risks and opportunities)
  • Daily operational issues
  • Snagging defects and issues with building design
  • Our response time to address tenant queries
 
  • Engage through personal interaction, newsletters, on‑site support teams, help desk for repair and maintenance issues
  • We continually invest in cost-saving initiatives for water and electricity. We remain committed to implement using green building principles in our developments
  • Through ongoing engagement with tenants and security experts, we strive to remain at the forefront of centre security
  • We monitor our B-BBEE compliance and plan ahead for any adverse impacts
  • Daily operational issues are dealt with timeously
  • Results from tenant surveys are translated into action plans
  • Meeting tenants’ needs is actively managed through employees’ key performance indicators