Our objectives

We aim to provide shareholders with an attractive level of income, together with the potential for income and capital growth.

Dividends

Target

6.2 pence
for the year ending 31 March 2021

As at 30 September 2020

Paid or declared dividends of 3.1 pence per share in respect of the six months ended 30 September 2020 in line with the target for the financial year

Total accounting return

Target

10% per annum

Six months to 30 September 2020

9.5% total accounting return for six months ended 30 September 2020
10.5% annualised total accounting return since IPO

Our strategy

To achieve our objectives, we follow the strategy set out below:

1

Location

We look for attractive sites, close to major transport links and large conurbations, with a high level of occupier demand and suitable local workforce.

Optionality

We look for buildings with a range of different uses which offer long‑term flexibility, such as the ability to sub-divide larger units, and which have the potential to change permitted use.

Buildings

We look through the lens of the occupier, to ensure the buildings match their current and future needs. Multi‑let warehouse estates spread risk and offer more asset management opportunities than single-let assets. Rental increases can also be reflected across the rest of the estate. We generally target buildings of less than 100,000 sq ft, with a typical unit size of 5,000 to 25,000 sq ft.

2

We budget to spend 0.75% of our GAV on capital expenditure each year, with a target return of at least 10%. We also target a vacancy level of 5-7%, since vacant properties allow us to carry out asset management activities.

Improving the sustainability performance of our assets, for example by improving their energy efficiency, is an important part of maintaining property values and occupier appeal.

3

We fund the business through shareholders’ equity, bank debt and any disposal proceeds we generate. We look to raise equity at times when we can make investments that are accretive to shareholders.

Our strategy for debt financing is to maintain a prudent level of debt, with a target LTV of 30-40% in the longer term. We look to hedge the interest on a proportion of our debt, to provide certainty over our financing costs.