High-Quality Portfolio and Strategy Delivering Resilient Income and Growth
“Covid-19 created a challenging backdrop, but our Company has performed well during the first half of the year delivering high levels of rent collection, stable earnings and an increase in portfolio value and rents driven by effective asset management and development activity. Significant strategic progress has also been made during the period, particularly within our development pipeline including securing a pre-let with Amazon on Europe’s largest logistics facility in addition to a number of lettings in the Symmetry portfolio.
“While our performance during the first half of the year provides reassurance, with the UK experiencing the sharpest reduction in GDP since the 1970s we believe it is appropriate to continue to maintain a cautious approach in the long-term interest of shareholders. In the face of the crisis, we took a number of decisive short-term actions to preserve the financial strength of the Company, including a modest reduction to our quarterly dividend. The long-term impacts of Covid-19 are only just beginning to be felt and we believe it is right to ensure the business has the financial headroom to ride-out a potentially protracted period of economic weakness.
“With high-quality assets, a strong balance sheet and gathering momentum in our development pipeline we believe the Company is well placed to take advantage of the strength of the UK logistics real estate market. As a Board, we will continue to monitor closely the likely long-term impact from Covid-19, with a view to potentially increasing the dividend on a progressive basis over time when we believe there is a sufficient level of economic visibility, financial headroom, and it is in our shareholders’ interest.”
Sir Richard Jewson Chairman
An on-demand recording of the webcast presentation from Thursday, 6 August 2020, is available below.
