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.