Hyprop Investments : Integrated Report

01 Home

02 Definitions

Definitions

African Land

AFS

ARC

AttAfrica

Board

CDP

CEO

CFO

CIO

Companies Act

Company/Hyprop

Covid-19

CUP

EE

EmpiriQ

ESG

GHG

GLA

GRESB

Group

Gruppo

Hyprop Europe transaction

Hyprop Foundation

Hystead

IAR

IFRS

IIRC

African Land Investments Ltd

Annual Financial Statements

Audit and Risk committee

AttAfrica Ltd

The Board of directors of Hyprop Investments Limited

Carbon Disclosure Project

Chief executive officer

Chief financial officer

Chief investment officer

The South African Companies Act 71 of 2008

Hyprop Investments Ltd

A novel strain of coronavirus that became a global pandemic in early 2020

The Group long-term employee incentive scheme/The conditional share plan which operated prior to the LTIP

Eastern Europe

EmpiriQ Technologies (Pty) Ltd, the co-investor in Natalmahogany

Environmental, Social and Governance

Greenhouse gas

Gross lettable area

Global Real Estate Sustainability Benchmark

Hyprop Investments Ltd and its subsidiaries

Gruppo Investment Nigeria Ltd (owner of Ikeja City Mall)

The acquisition by Hyprop of four EE properties from Hystead, as set out in the circular to shareholders dated 22 February 2022

Hyprop Foundation NPC

Hystead Ltd (a UK registered company)

Integrated Annual Report

International Financial Reporting Standards

International Integrated Reporting Council

Ikeja/Ikeja City Mall

JSE

JSE Listing Requirements

King IVTM

LTIP

LTV

MOI

Natalmahogany

NAV

NED

PDI

REIT

SA

SAICA

SA REIT

Scope 1 emissions

Scope 2 emissions

Scope 3 emissions

SOKO/SOKO district

SSA

WALE

WDP

Ikeja City Mall, the property owned by Gruppo

The JSE Limited

The JSE Listings Requirements

King IV Report on Corporate Governance for South Africa 2016

The new Long-term Incentive Plan approved by shareholders on 20 July 2022

Loan to value ratio

Memorandum of Incorporation

Natalmahogany (Pty) Ltd, the owner and operator of SOKO District

Net asset value

Non-executive directors

PDI Investment Holdings Ltd (and/or its successors in title Homestead Group Holdings Limited and AMZ Holdings), the non-controlling shareholder(s) in Hystead

Real Estate Investment Trust

South Africa

South African Institute of Chartered Accountants

The SA REIT Association, a representative umbrella body for South African REITs

Direct GHG emissions that occur from sources that are controlled or owned by Hyprop

Indirect GHG emissions associated with the purchase of electricity

All indirect emissions not included in Scope 2

A digital and physical marketplace/platform operated by Natalmahogany which forms part of the Group's non-tangible asset strategy

Sub-Saharan Africa (other than SA)

Weighted average lease expiry period in years

Water Disclosure Project

03 About

About our integrated report

In this Integrated Annual Report we tell the story of how the Hyprop Group creates and delivers sustained value by executing our purpose.

Our IAR focuses on the issues that impact our enterprise value. We take you through our purpose and strategy, investment proposition and plans to create value over the short, medium and long-term, our material risks and how we manage them, and provide a concise and transparent assessment of what we do so you can make informed decisions. We report on our performance and governance over the past year, and progress towards delivering the Group's strategic objectives.

Our ESG Data Packis published as a separate report and, for the first time, includes all our ESG-related data in an accessible format.

Reporting scope and boundary

Hyprop is a retail focused REIT that creates spaces and connects people by owning and managing a portfolio of dominant retail centres in key economic nodes in SA and EE.

Our reporting process is guided by the principles contained in the International Integrated Reporting Council's framework and King IV™.

The Consolidated and Separate Financial Statements were prepared in accordance with IFRS, the South African Institute of Chartered Accountants and the Financial Standards Council financial reporting guides, the JSE Listings Requirements and the Companies Act.

The accounting policies used to prepare the Financial Statements are consistent with those applied in the prior year.

This report covers an update on all operations in which we hold 100% and of the SSA operations which we jointly hold with Attacq Limited.

The four EE centres were only consolidated effective 31 March 2022, and a consolidated view of our environmental impact will be disclosed for the 2023 financial year.

Our approach to double-materiality

Double materiality requires us to report on ESG-related performance and prospects that may impact enterprise value as well as the economy, society and the environment. Our starting point in responding to double materiality is the Golden Thread connecting our distinctive, differentiated centres within

communities, from tenants and shoppers to suppliers, investors and other stakeholders. This interconnectedness is much more than that between landlord and tenant or retailer and shopper, but one which helps define a shared daily reality for those within our communities.

Given the relationship and responsibilities this carries, we provide information we believe is relevant to assessing the financial position and performance of the Group and how we protect enterprise value, while we also report on how we seek to positively enhance our societal impact. A detailed report on our societal impact is contained in our ESG Reportand ESG Data Pack.

Material changes

During the year under review, we acquired 100% of four properties previously owned by Hystead, namely Skopje City Mall, The Mall in Sofia and City Center one East, and West, in Croatia. The acquisitions simplified the Group's debt structure, and resulted in the consolidation of the results of these four properties, as well as Hystead at 30 June 2022.

We sold three properties - Atterbury Value Mart in SA, and Delta City Belgrade, Serbia and Delta City Podgorica, Montenegro, in EE.

Assurance

Hyprop's external auditor, KPMG Inc., has audited the Group and Company Financial Statements for the year ended 30 June 2022.

KPMG's unqualified audit report is on page 100. The scope of the audit was limited to the information in the Consolidated and Separate Financial Statements on pages 105to 235.

Forward-looking statements

This integrated annual report contains forward-looking statements that, unless otherwise indicated, reflect our expectations at 30 June 2022. Actual results may differ materially from the Group's expectations if known and unknown risks

or uncertainties affect the Group's business, or if estimates or assumptions prove inaccurate.

The Group cannot guarantee that any forward-looking statements will materialise and, accordingly, readers are cautioned not to place undue reliance on these statements. The Group assumes no obligation to update or revise any forward-looking statements if new information becomes available, other than as stipulated by the JSE Listings Requirements.

Contact

We regard this report as a valuable opportunity to connect to and communicate with our stakeholders, and welcome any feedback or questions you may have.

Please direct them to investorrelations@hyprop.co.za.

Board approval

The Board acknowledges its responsibility to ensure the integrity of this IAR. In the Board's opinion it addresses the issues material to Hyprop's ability to create value and impact society, and fairly presents the integrated performance of Hyprop for the 2022 financial year.

The consolidated and separate financial statements included in this report were approved by the Board on 29 September 2022.

The remainder of this integrated report was approved by the Board on 21 October 2022.

04 At a glance

Hyprop at a glance

Canal Walk Shopping Centre

Cape Town, South Africa