Business model

Our strategy and objectives

Our strategy

Our strategy is to create value through a top-down approach to investment, followed by hands-on asset management with best-in-class processes. We believe the key to outperformance is stock selection, which includes:

Location Buildings Optionality
We look for well located sites, close to major road, rail and air transport links and to large conurbations. We look through the lens of the occupier, to ensure the buildings’ design, size and configuration will match tenants’ current and future requirements. We look for buildings with a range of different uses, which offer long-term flexibility and have the potential to change permitted use.

In addition, before we make an investment decision, we consider the level, quality and diversity of existing income from the assets, and the current supply and demand for space in the local market. In implementing this strategy, we follow the investment policy described below.

Investment policy

Our policy is to invest is a diversified portfolio of small and medium sized (<50,000 sqft) urban warehouse assets in the UK. We look for investments where there is the potential to add value through active asset management.

Our objectives

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

Dividend policy

At IPO, we set out the following dividend policy, in line with the REIT requirements to distribute at least 90% of our property income

Period Target dividend per share Equivalent yield*
IPO to 31 March 2018 2.5p 4.5%
Year ending 31 March 2019 5.5p 5.5%

* Based on the issue price at IPO of 100p

The targeted dividend for the year ending 31 March 2019 has now increased to 6.0p and is expected to be covered by earnings.

For years after 2018/19, we intend to adopt a progressive dividend policy, in line with anticipated growth in earnings, with a target dividend yield equivalent to at least 6%* based on the issue price.

Total returns

Our target is to achieve a total return of at least 10% per annum, through a combination of dividends and growth in NAV.