Overview

We create buildings for today’s occupiers who demand more inspiring space with distinctive architectural detail, carefully curated public realm, market leading amenities, high quality management and our flexible approach to leasing.

Applying this philosophy we seek to maximise Shareholder returns through delivering income growth from creative asset management and capital gains from our development activity.

GROWTH

Maximise Shareholder return by increasing the net asset value of the Group through capital gains and growing our rental income stream to cover dividends.

  • Deliver long-term sustainable growth.
  • Clear focus on Total Shareholder Return, delivering capital growth and income.
  • Purpose and values embedded effectively in the operational policies and practices of the Group.
  • Continue a culture that is committed to the highest standards in Health & Safety.
  • Incentivise management to outperform the Group’s competitors by setting challenging levels of performance targets, against which rewards are measured

Performance Measures

  • Total Shareholder Return
  • Total Accounting Return
  • EPRA NAV
  • EPRA loss per share

Principal Associated Risks

  • Poor management of stakeholder relations
  • Political risk
  • The Group’s strategy is inconsistent with the market
  • Non-compliance with prevailing legislation

PROPERTY

Manage a balanced portfolio with a clear market focus, combining assets with significant development and asset management potential with a strong rental income stream.

  • 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

  • Portfolio Return – MSCI (1 year)
  • Portfolio Return – MSCI (3 year)
  • ERV and contracted rental income
  • Vacancy rate
  • WAULT
  • Total Property Return

Principal Associated Risks

  • Property values decline/reduced tenant demand for space
  • Inability to asset manage, develop and let property assets
  • Health and safety risk
  • The Group carries out significant development projects

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
  • Average employee service
  • Average staff turnover

Principal Associated Risks

  • Employment and retention of key personnel
  • Reliance on key contractors and suppliers 
  • Business disruption and cyber security

FINANCING

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

  • See-through loan to value
  • See-through net gearing
  • Average cost of debt and maturity
  • Average maturity of secured debt
  • Cash and undrawn bank facility levels

Principal Associated Risks

  • Availability of bank borrowing and cash resources
  • Breach of loan and covenants

KEY PERFORMANCE INDICATORS AT 31 MARCH 2019

482p
EPRA NAV
9.0%
EPRA NAV CAGR
(3 YEARS)
5.2%
TOTAL SHAREHOLDER RETURN (1 YEAR)
8.4%
TOTAL ACCOUNTING RETURN
10.1%
MSCI UNLEAVERAGED PORTFOLIO RETURNS
8.7 years
AVERAGE EMPLOYEE SERVICE