Overview

We develop and invest in high quality real estate which best serves the needs of our occupiers and maximises value.

We realise capital and rental income growth through development, refurbishment and active asset management with a focus on offices and mixed use assets in London and offices in Manchester.

Our strategic priorities and their related performance measures and associated risks for our Portfolio, People and Capital are discussed further below.

PORTFOLIO

Manage a balanced portfolio with clear market focus, combining assets with significant development and asset management potential with high yielding property for income.

  • A focus on London and Manchester, delivering income growth from asset management and capital gains from development activity.
  • Locate sites where complexity presents opportunity to add significant value through innovative development and asset management.
  • Maximise income through attracting a diverse and financially robust portfolio of tenants.
  • Continue a culture that is committed to the highest standards in Health & Safety.
  • Improve the communities in which we are active and ensure sustainability underpins our approach.

Performance Measures

  • Total property return
  • ERV and contracted rental income
  • Vacancy rate
  • WAULT

Principal Associated Risks

  • Property values decline/reduced tenant demand for space
  • Inability to asset manage, develop and let property assets
  • Health and Safety/Bribery and corruption risk
  • The Group’s strategy is inconsistent with the market
  • The Group carries out significant development projects
  • Property acquisitions or disposals are linked to criminal activities

PEOPLE

Attract and retain the best people encouraging their development and progression to ensure future succession is secured. Maintain our excellent reputation and network of trusted partners and advisors.

  • Small and empowered core team supported by valued advisers to allow scalability.
  • Clear plan for succession.
  • Strong relationships and a reputation which generates off-market opportunities.
  • A trusted team of external consultants to enable us to deliver quickly and to a very high standard. 
  • Work with joint venture partners to increase project scale and to manage risk.

Performance Measures

  • Training and development days per employee

Principal Associated Risks

  • Employment and retention of key personnel
  • Poor management of stakeholder relations
  • Reliance on key contractors and suppliers 
  • Disruptions to business from failure of Information Technology systems 
  • Modern Slavery and Human Trafficking 
  • General Data Protection Regulation

CAPITAL

Operate a sustainable capital structure in which the core business costs are covered by income from the investment portfolio. Use gearing on a tactical basis throughout the cycle to accentuate returns.

  • Maintain an appropriate risk-adjusted LTV
  • Use of “equity lite” structures to maximise returns.
  • Strong banking relationships for quick access to finance at competitive pricing.
  • Build cash reserves to weather current climate and take advantage of opportunities as they arise.

Performance Measures

  • LTV
  • Gearing
  • Average cost of debt and maturity
  • Interest cover ratio
  • Cash and undrawn bank facility levels

Principal Associated Risks

  • Availability of bank borrowing and cash resources
  • Breach of loan and covenants
  • Increase in cost of borrowing
  • Political risk

KEY PERFORMANCE INDICATORS AT 31 MARCH 2018

468p
EPRA NAV
6.7%
EPRA NAV CAGR
(3 YEARS)
6.1%
TOTAL SHAREHOLDER RETURN (1 YEAR)
11.1%
IPD UNLEVERAGED RETURN
7.9yrs
AVERAGE EMPLOYEE SERVICE
15.2%
AVERAGE STAFF TURNOVER
ADDITIONAL PERFORMANCE MEASURES
7.0p
EPRA LOSS PER SHARE
5.3%
TOTAL ACCOUNTING RETURN