Our business model
Our focused business model is all about repositioning properties to unlock their full potential. When combined with the effective reading of the property cycle in a market we know inside out, we deliver attractive long-term returns for shareholders.
The core principles of our model are:
- 100% central London portfolio: West End focus
- Reposition properties let off low rents through lease structuring, refurbishment and re-development
- Flex operational risk through property cycle
- Maintain low financial leverage
- Deliver superior returns by seeking to outperform our KPI benchmarks
Underpinned by our unique combination of attributes:
- Experienced management team supported by specialist in-house asset management, development, investment and finance teams.
- Incentivised to deliver strong total returns for shareholders and outperform our KPIs.
- Entrepreneurial and collegiate culture with disciplined approach to risk management and effective governance structure.
- One of the largest commercial portfolios in the West End.
- We acquire unloved assets in strong locations with angles to exploit and reversionary potential to capture. Every property has a detailed business plan reviewed quarterly.
- Our development activity improves both the local environment and public realm.
- Active capital recycling when value has been maximised: typically rotate 10-20% of the portfolio every year.
Our capital structure
- Consistently strong balance sheet and conservative financial leverage.
- Low cost, diversified debt book.
- Disciplined allocation of capital through analytical, risk adjusted IRR decision making.
- Effective use of joint ventures.
- Tax efficient REIT structure.
- Intense customer-focused approach to understand tenants' needs.
- High tenant retention, low vacancy rates, diverse tenant base.
- Deep relationships with key suppliers (including contractors, debt providers and advisors).
- Positive engagement with local authorities, planning departments and local communities.
How do we measure success?
We measure our absolute and relative performance using a small number of key performance indicators: Total Property Return; Total Shareholder Return; NAV growth; and EPRA Vacancy. We manage the business to drive results consistently in excess of our benchmarks.