We are creating a portfolio comprising modern warehousing, light industrial and higher value use assets (including data centres, retail assets and offices) which are well located with good sustainability credentials, and which will benefit from a low structural void rate and relatively low-intensity asset management requirements. These assets will be concentrated in the strongest European sub-markets which have attractive property market characteristics, including good growth prospects, limited supply availability, and where we already have or can achieve critical mass.

We believe that such a portfolio should deliver attractive, low-risk income-led returns with above-average rental and capital growth when market conditions are positive, and show resilience in a downturn.

We aim to enhance these returns through development, seeking to ensure that the income 'drag' associated with holding land does not outweigh the potential benefits. This should generate an attractive, income-orientated total property return ('TPR') which, if underpinned by an efficient overhead structure and relatively modest financial leverage through the cycle, should translate into attractive total shareholder returns.

Strategy

Our actions are concentrated on delivering against our four strategic priorities:

  1. Reshaping the existing portfolio by divesting assets which do not meet our strategic and financial criteria and reducing non-income producing assets as a proportion of the total portfolio;
  2. Delivering profitable growth and reinvesting in core markets and asset types by taking advantage of attractive development and acquisition opportunities;
  3. Reducing net debt and managing financial leverage over time and introducing further third party capital where appropriate; and
  4. Driving our operational performance across the business through greater customer focus, knowledge sharing, efficiency improvements and cost reductions.