In order to achieve our vision, we have a clear and compelling strategy designed to capture the significant opportunities our market creates, underpinned by a disciplined approach to capital allocation and a commitment to ESG, which is intrinsic to each element of our strategy.
The strategy has three interlinked components that aim to deliver sustainable income and capital growth, as well as an attractive performance through the economic cycle that underpins a reliable and progressive dividend:
We continue to build a portfolio that can perform well through the economic cycle, providing resilient long-term income even during challenging times. As part of this, we weight our customer exposure towards defensive and high-growth sectors.
We monitor the market for opportunities to acquire assets and add value through active asset management.
We actively and directly manage our existing property portfolio, developing long term relationships with our customers and realising opportunities to add value and generate secure and increasing income.
When we believe an asset has reached its full potential within our ownership, we look to crystallise this value through disposals, recycling capital into higher returning development and investment opportunities.
We tailor the development pipeline to meet demand, at an attractive 6-8% yield on cost target. In doing so, we utilise customer insights from our investment portfolio and implement innovations in areas such as ESG and power.
Most of our development is on a demand driven pre-let basis, significantly de-risking the process and ensuring we only deploy significant amounts of the Group’s capital when we are confident the returns are appropriate.
Our business model supports our purpose through our focus on delivering modern, well-located and sustainable logistics properties. These are thoughtfully designed to meet the current and future needs of fast-growing, ambitious companies.
High-quality buildings that play a central role in fulfilling their business needs.
Job creation, tax revenues, local and green infrastructure, community support, enabling online shopping.
Reduced impact through sustainably built assets and more efficient supply chains.
Long-term income and capital growth.
Interest payments backed by secure cash flows.
Our objective is to deliver attractive, low-risk returns to shareholders, by executing the Group’s Investment Policy and operational strategy. We track our progress against eight financial and non-financial Key Performance Indicators, on which we report each year.
