About us
Our objectives and strategy
We aim to create value through a top-down approach to investment, hands-on asset management with best-in-class processes, and an appropriate mix of financing.
Our objectives
We aim to provide shareholders with an attractive total return, underpinned by secure income.
Total accounting return
Target
10% per annum, through a combination of dividends and growth in NAV.
12 months to 31 March 2023
(25.7)% total accounting return for the 12 months ended 31 March 2023
Dividends
Target
6.4 pence for the year ending 31 March 2022
As at 30 September 2023
Paid or declared dividends of 6.4 pence per share in respect of the 12 months ended 31 March 2023 in line with the target for the financial year
Sustainability
Our new environmental performance target is a 4.2% annual reduction in our like for like scope 1 and 2 emissions.
Our strategy
To achieve our objectives, we follow the strategy set out below:
Investment strategy
Read moreWe look for
- sites close to major transport links and large conurbations, with high occupier demand and a suitable workforce;
- buildings or land with a range of uses and long-term flexibility, including the potential to change permitted use;
- assets that match occupiers’ current and future needs, including their ESG objectives; and
- multi-let estates spread risk and offer more asset management opportunities than single-let assets. Rental increases can also be reflected across the estate. We generally target buildings of less than 100,000 sq ft and have an average size of 12,000 sq ft.
Asset management strategy
Read moreWe budget to spend 0.75% of our gross asset value (“GAV”) on capital expenditure each year, with a target return of at least 10%. We also target a vacancy level of 5-7%, since vacant properties allow us to carry out asset management activities.
Improving the sustainability performance of our assets, for example by improving their energy efficiency, is an important part of maintaining property values and occupier appeal.
Financial strategy
Read moreWe fund the business through shareholders’ equity, bank debt and any disposal proceeds we generate. We look to raise equity at times when we can make investments that are accretive to shareholders.
Our strategy for debt financing is to maintain a prudent level of debt, with an LTV range of 30‑40% in the longer term. We look to hedge the interest on a significant proportion of our debt, to provide greater certainty over our financing costs.