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.
SEGRO is a leading owner, asset manager and developer of modern warehousing and light industrial properties, with £4.5 billion of assets (including joint ventures at Group share) principally concentrated in London's Western Corridor (including the Thames Valley) and in key conurbations in France, Germany and Poland. It also develops and owns warehouses in important distribution markets in the UK, Belgium, the Netherlands and the Czech Republic, and offices in Slough and Milan.
The Group serves around 1,250 customers spread across a diverse range of industry sectors. It has 5.8 million square metres of built space under management and a gross passing rent roll of £266 million (SEGRO share).
Our KPIs are aligned with our strategic goal to be the best owner, asset manager and developer of industrial property and a leading income-focused REIT which delivers a high-quality and progressive dividend with resilient capital growth.
Our eight KPIs are fundamental metrics for how we measure progress within the business and they play a key role in determining remuneration throughout the organisation.
More information about our KPIs can be viewed here.
In November 2011, we set out our strategy to address areas of historical underperformance and deliver better future returns to our shareholders. 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 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.
In order to implement our strategy, we set out a plan which has four key priorities:
1. Reshaping the existing portfolio by divesting non-core assets which do not meet our strategic and financial criteria and reducing non-income producing assets as a proportion of the total portfolio;
2. Seeking profitable growth by reinvesting in core markets and asset types by taking advantage of attractive development and acquisition opportunities;
3. Reducing net debt and 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.