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; West End focus
- Reposition properties let off low rents
- Flex operational risk through the property cycle
- Maintain low financial leverage
- Deliver superior total returns by seeking to outperform our KPI benchmarks
...underpinned by our unique combination of attributes...
Our capital structure
- Consistently strong balance sheet and conservative financial leverage.
- Low cost, diversified debt book and plentiful liquidity.
- Disciplined allocation of capital through analytical, risk adjusted IRR decision making.
- Detailed business plan for every property reviewed quarterly.
- Support progressive dividend policy.
- 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 advisers) and joint venture partners.
- Positive engagement with local authorities, planning departments and local communities.
- 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 KPI benchmarks.
- Entrepreneurial and collegiate culture with disciplined approach to risk management and effective governance structure.
...and our proactive management of our portfolio.
- Unloved assets in strong locations with angles to exploit.
- Below replacement cost and typically off-market.
- Off low rents.
- Through lease restructuring, refurbishment or redevelopment.
- Deliver new space into supportive market conditions that meet tenant needs.
- Manage risk through pre-letting, JVs and forward sales.
- Enhance the local environment and public realm.
- Disciplined capital recycling through the sale of properties where we have executed our business plans or we are able to monetise our expected future profits.
- Reinvest proceeds into higher return opportunities.