
Strategy and objectives
Great Portland Estates plc has a clear and straightforward
strategy; we aim to deliver superior returns to shareholders with a
focus on applying our asset management and development skills to
properties with value angles to exploit in central London.
1. Develop
- lease new space from developments above target ERV
- manage development risks to gain maximum returns
- deliver near-term programme on time and budget
- add to medium and lon-term pipe line
2. Recycle capital
Buy properties
- with low relative rents
- with angles to exploit
- to grow medium and longer- term development programme
Sell properties
- with historically high capital values
- with limited further angles
- where capturing rental growth will be difficult
3. Asset Manage
- drive rental values and rental income higher
- execute individual property strategies
- create value through asset repositioning
Throughout this site you will find examples of the team delivering
on our strategic aims.
We use numerous benchmarks to define our financial objectives and
to measure the success of our strategy in creating long-term value
for shareholders, including:
- Portfolio Internal Rate of Return (IRR) – each of our
properties has a business plan with an IRR projection which, when
amalgamated, produce the Portfolio IRR.We aim to beat this
target.
- Portfolio Total Property Return – we aim to generate capital
growth, net of capital expenditure, in the portfolio greater than
that of the IPD central London Capital Growth Index.
- Return on Capital Employed (ROCE) – we measure the Group’s ROCE
against our weighted average cost of capital.
- NAV per Share Growth – we aim to produce growth in adjusted NAV
per share of greater than RPI plus 4% over a three year period;
and
- Total Shareholder Return (TSR) – we aim to produce a TSR ahead
of both the median of our comparator peer group and the FTSE 350
Real Estate Index (excluding agencies).
The remuneration of the Executive Directors and every member of
staff is linked to our performance against these measures.
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