Business Model

Creating value for stakeholders: inputs, outputs and outcomes defined

As an income-focused REIT-like structure, Hystead creates value for investors and other stakeholders by owning and investing in high quality dominant shopping centres in SEE/ Balkans region, benefiting from active asset management based on ethical leadership and sound corporate governance principles. This results in sustainable real estate investments, which generate long-term capital and income growth.

Inputs

Outputs

Business activities

Product and services delivered

Financial capital

Responsibility: Income growth and capital appreciation

Business activities

Financing activities
Invest capital received from equity investors
Obtain capital from debt funders
Reinvest capital received from disposals

Product and services delivered

Total investment returns to investors
Sustainable dividend growth over the long term

Manufactured capital

Responsibility: To ensure manufactured capital generates capital appreciation and income growth

Business activities

Own and invest
Own high-quality, dominant shopping centres in large metropolitan areas in Continental Europe
Seek expansion and redevelopment opportunities
Pursue appropriate yield-enhancing acquisitions
Effective capital and debt management

Product and services delivered

Ownership of quality shopping centres providing sustainable income. Reinvest through developments and refurbishments
Geographic diversification in other markets
Leverage industry relationships to secure off-market transactions
Utilise strong balance sheet to negotiate favourable financing terms

Intellectual capital

Responsibility: Intellectual property and corporate culture are critical to preserve, grow and retain skills

Business activities

Leasing
Lease administration and management of tenants
Manage occupancy levels
Manage tenant arrears
Manage bad debts

Product and services delivered

Above-inflation contractual rental escalations
Optimal tenant mix to meet customer demands
Growth in turnover densities
Strong internal team with established relationships with tenants

Business activities

Asset management
Internal asset and property management focusing on value-adding opportunities and achieving key performance deliverables

Product and services delivered

Hands-on decentralised teams at each shopping centre supported by specialised and experienced executive management
Increasing property values
Cost efficiencies through:
Standardised internal processes
National service level agreements with suppliers
Using specialists and technology for effective utilities management
Proactive maintenance planning

Business activities

Information management
Secure operating systems

Product and services delivered

Integrated electronic property management system
Integrated electronic human resource system
Electronic email contingency system
Back-up cloud storage facilities

Business activities

Stakeholder communication
Dedicated investor relations manager and marketing executives

Product and services delivered

Effective controls and processes supporting transparent disclosure

Natural capital

Responsibility: To ensure that operations (occupation and redevelopment of properties, day-to-day activities) limit their impact on the environment

Business activities

Improve environmental efficiency of properties
Energy, carbon emission, water and waste-reduction targets
Resource management
Execute environmental strategy

Product and services delivered

Reduced environmental footprint
Voluntary participation in global environmental benchmarks

Human capital

Responsibility: To grow and nurture the talent, knowledge and skills of our people

Business activities

Ethical leadership
Regulatory compliance and corporate governance
Experienced board of directors
Competent executive management

Product and services delivered

Strategic risk and opportunity identification and management
Investment strategy to protect and grow the business

Business activities

Employee management
Fair remuneration
Employee relations
Education and training
Skills retention
Equality

Product and services delivered

Remuneration policy - includes a clear remuneration structure
Salary benchmarks and surveys
Employee benefits applied to all levels of employment
Employee engagement and communication
Inhouse human resource department
Safe and healthy work environment
Company code and policy - defines the HR processes and is reviewed annually
Develop employee knowledge base and productivity
Improved employee productivity
Address skills shortage
Low staff turnover
Share incentive scheme to retain executive management and align with company strategy
Employment equity targets
Recruitment
Equal opportunity
Non-discrimination

Social and relationship capital

Corporate social investment (CSI)

Business activities

Employee management
Culture of involvement

Product and services delivered

Sustainable social responsibility through education, community upliftment and enterprise development
Employee, tenant and customer participation in CSI initiatives
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