Governance Property Valuation Committee Report PropertyValuationCommittee
Terms of reference The Committee shall review the quarterly valuation reports produced by the independent valuers before their submission to the Board, looking in particular at: ӱ Significant adjustments from previous quarters; ӱ Individual property valuations; ӱ Commentary frommanagement; ӱ Significant issues that should be raised with management; ӱ Material and unexplained movements in the Company’s net asset value; ӱ Compliance with applicable standards and guidelines; ӱ Reviewing findings or recommendations of the valuers; and ӱ The appointment, remuneration and removal of the Company’s valuers, making such recommendations to the Board as appropriate.
Richard Jones Chair of the Property Valuation Committee
The Property Valuation Committee is chaired by Richard Jones. The other members of the Committee are Lena Wilson, Mark Batten andMaria Bentley. Richard Jones became Chair of the Committee on 1 October 2020 after Roger Lewis retired fromthe Board.
Activity The Committee met four times during the year ended 31 March 2021. Members of the Property Valuation Committee, together with management, met with the independent valuer each quarter to review the valuations and considered the following matters: ӱ Propertymarket conditions and trends; ӱ Movements compared to previous quarters; ӱ Yields on properties within the portfolio; ӱ Letting activity and vacant properties; ӱ Covenant strength and lease lengths; ӱ Estimated rental values; and ӱ Comparable market evidence. The Committee was satisfied with the valuation process throughout the year.
External valuer CBRE Limited was appointed as the external valuer to the Group, effective from 31 March 2013, and carries out a valuation of the Group’s property assets each quarter, the results of which are incorporated into the Group’s half-year and annual financial statements, and the quarterly net asset statements. The Committee reviewed the performance of the valuer and recommended that the appointment be continued for a further 12 months. Material uncertainty As a result of the Covid-19 pandemic a ‘material uncertainty’ statement was applied to the March 2020 and June 2020 valuations. From 30 September 2020 the statement was removed entirely from the valuers’ reports as there was deemed to be sufficient market evidence to render the qualification unnecessary. Richard Jones Chair of the Property Valuation
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Committee 26 May 2021
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