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Our value-creation process

Our value-creation process reflects the IIRC model shown below, where the flow of inputs (capitals or resources) is transformed by our business activities into outputs (what we use and produce) and outcomes (benefits or impacts for our stakeholders), all within an external environment that influences our decisions. This is a complex interplay, and our overarching objective is to generate positive outcomes for stakeholders, or at least mitigate negative impacts.


Resource trade-offs in implementing our strategy
  As a REIT, we pay dividends twice a year. The positive impact on our shareholders (social and relationship resources) may be countered by the negative impact on our financial resources.
  Our goal is to create an integrated smart city that works. Large investments in manufactured resources to build infrastructure in Waterfall impact our short-term financial resources. We believe creating a sustainable city will benefit us in the long run, increasing our financial resources.
  Through water-saving strategies and our investment (financial resources) in renewable energy, we reduce the impact on our natural and financial resources, and honour our obligations as a responsible corporate citizen. By reducing the impact on our natural resources, we ensure 'business as usual' in times of service delivery interruptions, in turn reducing the impact on our financial and social and relationship resources (reputational).
  Training and developing employees is a retention strategy and a way to build our intellectual capital. Financial and human resources (lost time at work) are initially affected but increased in the long run by the value employees generate for the company.
  Social & relationships
  We invest time (human resources) and money (financial resources) in our communities and stakeholder groups as the quality of these relationships supports or hampers our ability to operate.
  We invest in intellectual resources and leading technology systems to improve the quality of information. The short-term negative impact on human and financial resources is offset by enhancing our competitive advantage, which translates into a long-term benefit for these resources.











Our challenge: Increased competition for capital



Our four key drivers

  • South Africa portfolio
  • Developments at Waterfall
  • Investment in MAS
  • Rest of Africa retail investments (Manufactured resources)

Our challenge: Oversupply of space in certain nodes in our South African portfolio



Our challenge: Cost and availability of water and electricity



Our challenge: Scarcity of experienced and skilled property professionals


Social & relationships

Quality relationships with

  • Community
  • Employees
  • Government, municipality and regulators
  • Land holder

Our challenge: The maintaining of quality relationships




Our challenge: Shortage of skills and resources to support innovation


Value-adding activities


  Invest     Develop     Grow  


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


We evaluate identified opportunities and invest in assets with potential to deliver sustainable income and capital growth. We seek to optimise our capital allocation


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


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



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



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


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

Recycle capital

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



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


Investing, developing and managing quality real estate investments

Completed seven new buildings




+ Dividend of 81.5 cents per share
Gearing increased to 37.7%
+ Reduced cost of debt to a weighted average of 8.8%
+ 78.7% of total committed debt facilities hedged
+ Improved interest cover ratio of 1.85 times
+ MAS exceeding its dividend guidance
Shareholder loan impairments of R467.5 million on our Rest of Africa retail investments
Reduced value in Waterfall development rights
Total assets decreased to R27.1 billion
Recycled capital totalling R450.0 million from selling assets
+ Reduced vacancies to 6.2%
+ Rental escalations of 7.1%
+ Weighted average lease expiry profile of 6.5 years
+ Average trading density growth of 6.8%
Bulk rolled out of 27 701m2 effective PGLA
+ 12.5% decrease in Scope 2 carbon footprint emissions
+ 36.7% waste recycled
+ Renewable energy-generating capacity of 6 852kWh
+ 13 certified green buildings
± Voluntary employee turnover at 9.1%
+ R4.1 million invested in training over four years
Commitment to transformation demonstrated through our B-BBEE level 3 score (revised property codes, REIT sector)
+ Corporate social investment (CSI) spend of R6.4 million
+ 402 employee hours invested in CSI
+ 681 direct beneficiaries reached through CSI projects
+ 415 jobs created through CSI
+ Included in the FTSE4Good Index series for the third year
+ Effective controls and processes
+ Team of respected industry professionals
+ Recognition and enhanced reputation
+ Various industry awards

Strategic matters








How and why our outcomes created value

We are balancing dividend payouts to shareholders with reinvestment into Developments at Waterfall   By actively managing the quality of our South African portfolio, we are achieving above-market performance in KPIs for the real estate industry     By investing to reduce the impact on our natural resources, we ensure 'business as usual' in times of service delivery interruptions and maintain our standing as a responsible citizen   In the face of an industry-wide shortage of skills, we are focused on training for our own needs, those of the industry and the broader society     We invest time and money in our community as the quality of these relationships supports or hampers our ability to operate (Key relationships)     Investing in innovative solutions and measuring our performance against global benchmarks enhances our competitive advantage  

Risks and opportunities


Meeting shareholder expectations

Availability of capital



Protection of property rights

Impact of disruptive technology

Emerging markets

Cost and availability of water supply

Delivery of Developments at Waterfall

Cost and availability of electricity

Land invasion

Stakeholder activism


Cost and availability of water supply

Cost and availability of electricity


Transformation targets



Stakeholder activism


All risks