Strategic Report Chief Executive’s Review
We have increased occupancy and continued to deliver upper quartile returns, whilst supporting our occupiers through an incredibly difficult period.
Michael Morris Chief Executive
Despite the challenges of this year, we have been able to successfully navigate the disruption caused by the Covid-19 pandemic and deliver positive results which highlight the strength and resilience of the business.
Portfolio Performance We have continued to outperform the MSCI UK Quarterly Property Index and have delivered upper quartile performance for the sixth consecutive year. Over the year we ranked 24 out of the 232 portfolios in the MSCI benchmark and over the longer-term have ranked 15 out of 99 portfolios over the 15 years since inception. Despite the impact of lower rent collection, we have been able to grow income across the portfolio on a like-for-like basis through letting and asset management activity, which has generated additional income. We have had to think creatively around some of the occupier assistance that we have given this year. Despite having a short-term impact on income, this has delivered longer- term value for our investors. Examples of this are where leases have been extended, rent reviews have been agreed in advance or longer-term payment plans have been put in place. Pleasingly, the contractual passing rent and ERV of the portfolio have both grown during the year.
It has probably been one of the hardest 12-month periods in which to operate, and few could have foreseen the scale and extent of the disruption caused by lockdown rules. As a team, we have worked remotely for the whole year and have only all been able to meet in person on one socially distanced occasion. The team has pulled together incredibly well and we have been able to run the business effectively, helped to some extent by our small size and nimble approach. We have not made redundancies, furloughed any employees or needed any form of Government support. We have supported our occupiers this year and provided help where needed. This has required a delicate balance, but to have achieved the financial results we have, whilst simultaneously supporting so many of our occupiers throughout the year, is an accomplishment we are particularly proud of. Set out below is a summary of our performance against our strategic priorities. Almost all our KPIs show progress against the previous year and further details are provided in that section of the Report.
£34m Profit after tax £528m
Net assets 97p
NAV per share 6.6% Total return
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