Our ambition is to be the best owner-manager and developer of 'industrial' properties in Europe and a leading income-focused REIT. We are aiming to deliver attractive returns for shareholders in the form of a low-risk, progressive dividend stream, supported by long-term growth in net asset value per share.
In order to achieve that vision, we are creating a portfolio comprised predominantly of modern warehousing, light industrial and data centre assets which are well specified and 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 sub-markets which have attractive property market characteristics, including good growth prospects and limited supply availability, where we already have, or can achieve, critical mass. We believe such a portfolio should deliver attractive, low risk income 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, but seeking to ensure that the 'drag' associated with holding land does not outweigh the potential benefits. Our overall portfolio strategy will be underpinned with an efficient overhead structure and relatively modest financial leverage through the cycle.
Fundamental to the implementation of our strategy are two key pillars of activity:
- Disciplined Capital Allocation, which consists of picking the right geographical markets and assets, creating the right portfolio shape and actively managing the portfolio composition in order to time the property market cycle and individual asset lifecycles; and,
- Operational Excellence, which consists of optimising performance from the portfolio through customer service, expert asset management, development and operational efficiency.
Through Disciplined Capital Allocation and Operational Excellence we aim to apply our business model of 'Buy Smart, Add Value and Sell Well' with the goal of producing attractive, income-oriented total property returns ('TPR'). We believe that strong TPR, if underpinned by the right capital structure and a lean overhead base, should translate into the attractive shareholder returns referred to above.
In order to implement our strategy, we set out a plan which has four key priorities to reshape the existing portfolio by divesting non-core assets and reinvesting in our core markets and asset types, reduce financial leverage and drive operational performance across the business.