Business overview

Our value-creation process

Inputs
RESOURCES
 Financial    Manufactured    Natural    Human    Social and relationship    Intellectual
  • Debt and equity financing
  • Reinvestment/recycling capital
  Our four key value drivers:
  • South African portfolio
  • Waterfall development
  • Investment in MAS
  • Rest of Africa retail investments
 
  • Waste
  • Water
  • Electricity
  • Transport
  • Technology
 
  • High-calibre, motivated employees
  • Skilled professionals
  • Experienced leadership
  Quality relationships with
  • Community
  • Employees
  • Government, municipality and regulators
  • Providers of capital
  • Shoppers
  • Suppliers
  • Tenants
 
  • Knowledge, systems, policies and procedures
  • Brand and reputation
 
 
 
 
 
What we do
VALUE-ADDING ACTIVITIES
Invest     Develop     Grow
1

Source

Through internal and external resources, we source the best investment and development opportunities


2

Assess

We evaluate identified opportunities and invest in assets with the greatest potential to deliver exceptional and sustainable returns. We seek to optimise our capital allocation


3

Secure

We secure the opportunity, once we have assessed and approved our investment decision


4

Fund

By prudently managing our funding, we have the financial flexibility to execute value-enhancing investments, develop new assets or redevelop existing assets

   
5

Develop

We develop buildings to meet tenant and consumer needs and, by doing so, we generate a pipeline of investment properties

   
6

Enhance

Through proactive property and asset management, we strive for exceptional and sustainable total returns. Total return includes both income and capital growth with the focus on distribution growth


7

Evaluate

We optimise our total return through proactive asset management, using our sector insight and expertise to regularly review our entire asset portfolio and value the potential return of our assets to generate maximum shareholder value


8

Recycle capital

We optimise our capital allocation by recycling capital from mature assets into assets with higher growth prospects

       
       
       
       
       
       
       

9

Support

All our activities are underpinned by shared corporate services such as finance, human resources, legal and marketing

Outputs
 
  • Investing, developing and managing quality real estate investments
  • Completed five new buildings and one extension
 
Outcomes
STRATEGIC
MATTER
  RESOURCE   RESOURCE TRADE-OFFS IN
IMPLEMENTING OUR STRATEGY
  RISKS AND
OPPORTUNITIES
FINANCIAL
 
  • Maiden distribution of 74.0 cents per share
  • Like-for-like total return of 8.6%
  • Gearing improved to 35.8%
  • Reduced cost of debt to a weighted average of 8.7%
  • 95.0% of total committed debt facilities hedged
  • Improved interest cover ratio of 1.6 times
 

As a REIT, we will pay distributions twice a year. The positive impact on our shareholders (social and relationship resources) may be countered by the negative impact on our financial resources.

  Liquidity risk
Meeting shareholder expectation
Emerging markets
MANUFACTURED


 
  • Total assets increased to R29.1 billion
  • Recycled capital totalling R524.0 million from selling assets
  • 7.8% vacancies
  • Rental escalations of 7.2%
  • Weighted average lease expiry profile of 6.8 years
  • Bulk rolled out of 103 541m2 effective PGLA
  • Average trading density growth of 5.3%
 

To create an integrated smart city that works, high investments in manufactured resources to build infrastructure in the Waterfall precinct impact our short-term financial resources. We believe creating a sustainable city will benefit us in the long run, positively impacting our financial resources.

  Delivery of Waterfall development
Fibre reliability
Liquidity
Land invasion
Cost and availability of electricity
Cost and availability of water supply
B-BBEE score
HUMAN
 
  • Carbon footprint: 174 863tCO2e
  • 29.6% waste recycled
  • Renewable energy-generating capacity: 6 851kWh
  • 13 certified green buildings
 

Through water-saving strategies and our investment (financial resources) in renewable energy resources we improve the impact on our natural and financial resources, making us responsible corporate citizens.

  Cost and availability of water supply
Cost and availability of electricity
SOCIAL AND RELATIONSHIP
 
  • Employee turnover at 20.3%
  • 3 778 training hours for employees as per personal development plans
  • R1.0 million spend on training and development
 

Training and developing employees is a retention strategy and a way to build our intellectual capital. Financial resources are initially negatively affected, but boosted in the long run through the value that employees generate for the company.

  B-BBEE score
NATURAL
 
  • Good to strong relationship with our key stakeholders
  • Commitment to transformation demonstrated through our B-BBEE level 2 score (revised property codes)
  • Corporate social investment (CSI) spend of R6.8 million
  • 309 employee hours invested in CSI
  • 2 337 beneficiaries reached through CSI projects
  • Tenant general satisfaction score of 7.5 out of 10.0
  • 177 jobs created through CSI
 

We invest time (human resources) and money (financial resources) into our social and relationship resources as the quality of our relationships supports or hampers our ability to operate (Social and relationship resources).

  B-BBEE score
Stakeholder activism
INTELLECTUAL
 
  • Included in the FTSE4Good Index series for the second year
  • Effective controls and processes
  • Team of respected industry professionals
  • Recognition and enhanced reputation
  • Various industry awards
 

Investing in intellectual resources by automating systems improves the quality of information but has a negative impact on short-term financial resources. To have a competitive edge, automation is vital and will benefit our financial resources in the long term.

  All risks