Strategic Report Key Performance Indicators
Measuring the success of the business
Total return (%)
A
2021 2020 2019
6.6 4.5 6.5
Why we use this indicator The total return is the key measure of the overall performance of the Group. It is the change in the Group’s net asset value, calculated in accordance with IFRS, over the year, plus dividends paid. The Group’s total return is used to assess whether our aim to be one of the consistently best performing diversified UK REITs is being achieved, and is a measure used to determine the annual bonus.
We have a range of key performance indicators that we use tomeasure the performance and success of the business. We consider that industry standard measures, such as those calculated by MSCI, are appropriate to use alongside certain EPRA measures and others that are relevant to us. This year we have adopted the new EPRA net asset value metrics in this Report, replacing EPRA net asset value per share with EPRA net tangible assets (NTA) per share. In this regard, we consider that the EPRA NTA per share, earnings per share and vacancy rate are the most appropriate measures to use in assessing our performance. Key performance indicators are also used to determine variable remuneration rewards for the Executive Directors and the rest of the Picton team. The indicators used are total return, total shareholder return, total property return and EPRA earnings per share. This is set out more fully in the Remuneration Report.
Our performance in 2021 Our industrial assets helped deliver strong valuation gains over the year, together with an increase in occupancy and cost reductions helping to improve EPRA earnings, which has led to a 50% increase in profit compared to the previous year.
1
3
2
Total shareholder return (%)
B
2021 2020 2019
0.0 3.6 10.1
Remuneration link
For more information on EPRA Best Practices Recommendations see pages 127-129
Why we use this indicator The total shareholder return measures the change in our share price over the year plus dividends paid. We use this indicator because it is the return seen by investors on their shareholdings. Our total shareholder return relative to a comparator group is a performance metric used in the Long-term Incentive Plan.
Our performance in 2021 Despite a strong recovery in the share price in the latter half of the year our total shareholder returnwas flat over the year, reflecting the discount to net asset value.
3
1
2
30
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