ABOUT THIS REPORT

Hyprop is Africa’s leading specialist property fund, with a focus on ownership of high quality shopping centres. The company is headquartered in Rosebank, Johannesburg. During the year under review Hyprop expanded into the rest of Africa by co-investing with the Atterbury Group in the Mauritius based property investment company, Atterbury Africa.

Hyprop’s third integrated report presents the financial results and the environmental, social and governance performance of the group for the year ended 31 December 2012, and follows the previous report published for the financial year ended 31 December 2011. There were no changes to accounting policies adopted in terms of IFRS nor were there any restatements of previously reported information.

The content included in this integrated report is intended to identify and explain the material economic, social, governance and environmental issues facing the group and their impact, and to enable stakeholders to accurately evaluate Hyprop’s ability to create and sustain value over the short, medium and long-term.

For the purpose of this integrated report, Hyprop’s scope of reporting on its sustainability initiatives extends to the group holding company and to each of the shopping centres in Hyprop’s portfolio of assets. Atterbury Africa was added late in the year under review, and will be included in the scope of reporting in the integrated report for the year ending 31 December 2013.

There were no significant changes to the size, structure or ownership of the group during the year, save for the acquisitions and disposals detailed on page 19.

proCeSS For deFInIng report Content

The audited annual financial statements, which form part of the integrated report for the year ended 31 December 2012, were prepared in accordance with International Financial Reporting Standards (IFRS), the Listings Requirements of the JSE, as well as the Companies Act, 71 of 2008, as amended, where relevant. The company has further applied the majority of the principles contained in the King III Report. Any King III principles which have not been applied are explained, where applicable, including wherever possible reference to the part of the year for which the non-compliance occurred. The company has also considered and applied many of the recommendations contained in the Discussion Paper on the Framework for Integrated Reporting and the Integrated Report issued by the Integrated Reporting Committee of South Africa in January 2011 and the draft international integrated Reporting Framework. The integrated report was further prepared based on principles and guidance from the GRi and the relevant Sector Supplement “Construction and Real estate Sector (CRESS)” (collectively the GRi G3.1 Guidelines), and was compiled based on a selfdeclared Application Level C. A comprehensive GRi index is available on the website.

Materiality is a core element in determining the relevance of report information and is one of the four reporting principles for reporting content in terms of the G3.1 Guidelines. The board of Hyprop has duly applied its mind to matters that would be considered material to stakeholders’ understanding of the integrated report, and has addressed issues that:

Stakeholder engagement is an ongoing process, and the group has currently identified the following stakeholder groups as material:

aSSurance

The group’s external auditors, Grant Thornton, have independently audited the annual financial statements. Their unqualified audit report can be found on page 65. The scope of their audit is limited to the information set out in the annual financial statements on pages 67 to 111 and does not extend to the following sections of the integrated report: About Hyprop, integrated Performance Review, Governance, Stakeholder Relations and Sustainability.

reSponSibiLity StateMent

The audit committee acknowledges its responsibility on behalf of the board to ensure the integrity of the Hyprop integrated Report 2012. The committee has accordingly applied its mind to the report and believes that it appropriately and sufficiently addresses all material issues, and fairly presents the integrated performance of Hyprop, its subsidiaries and associates for the year within the scope set out above.

forWard-Looking StateMentS

This integrated report contains forward-looking statements that, unless otherwise indicated, reflect the group’s expectations as at 31 december 2012. Actual results may differ materially from the group’s expectations if known and unknown risks or uncertainties aff ect its business, or if estimates or assumptions prove inaccurate. The group cannot guarantee that any forward-looking statement will materialise and, accordingly, readers are cautioned not to place undue reliance on any forward-looking statements. The group disclaims any intention and assumes no obligation to update or revise any forward-looking statement even if new information becomes available as a result of future events or for any other reason, other than as required by the JSe Listings Requirements.