A strategy underpinned by capital discipline and sustainability
In order to achieve our vision, we have a clear and compelling strategy to capture the opportunities our market presents. Underpinned by a disciplined approach to capital allocation, our strategy is aligned with positive long-term structural drivers and has three mutually reinforcing aspects (see below), enabling it to deliver sustainable income and capital growth, while ensuring we meet our wider environmental and social responsibilities.
1. High-quality assets attracting world-leading companies
Our logistics assets are critical to the supply chains of some of the world’s leading companies. We continue to craft a portfolio that will perform well through the economic cycle, providing resilient long-term income even during challenging times. We weight our customer exposure to defensive and high-growth sectors.
2. Direct and active management
We actively and directly manage our existing property portfolio, developing long-term relationships with our customers, ensuring their needs are met while identifying and realising opportunities to add value. We also monitor the broader market for opportunities where we can acquire assets and add value through active asset management. By constantly evaluating and managing the portfolio, we aim to grow 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.
3. Insight driven development and innovation
We create value through the Group’s acquisition of the development site at Littlebrook, Dartford, and the capital-efficient acquisition of Tritax Symmetry, we have access to the UK’s largest land bank for the development of logistics assets. The customer insights developed from our existing investment portfolio and long-established successful track record inform the development process, ensuring we tailor the development pipeline to meet demand at an attractive 6-8% yield on cost. Most of the Group’s development will be undertaken 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 that the returns are appropriate and attractive to our shareholders.
Our Littlebrook, Dartford site is an example of our development strategy in action. The following short video explains how this has driven value for our shareholders: