Total property return (%)
Loan tovalue ratio (%)
C
E
2021 2020 2019
7.3 5.3 7.5
2021 2020 2019
20.9 21.7 24.7
Why we use this indicator The total property return is the combined income and capital return from our property portfolio for the year, as calculated by MSCI. We use this indicator because it shows the success of the portfolio strategy without the impact of gearing and corporate costs. Our total property return relative to the MSCI UK Quarterly Property Index is a performance condition for both the annual bonus and the Long-term Incentive Plan.
Why we use this indicator The loan to value ratio is total Group borrowings, net of cash, as a percentage of the total portfolio value. This is a recognised measure of the Company’s level of borrowings and is a measure of financing risk. See the Supplementary Disclosures section for further details.
Our performance in 2021 We have outperformed theMSCI UKQuarterly Property Index, delivering an upper quartile return of 7.3%compared to the Index return of 1.2% for the year, andwe have also outperformed on a three, five and ten year, and since inception basis.
Our performance in 2021 The loan to value ratio has reduced further this year as the portfolio value has risen and there has been continued amortisation of the debt. No newborrowings were taken out in the year.
3
1
1
3
2
2
Property income return (%)
Cost ratio (%)
D
F
2021 2020 2019
4.7 4.8 5.6
2021 2020 2019
1.0 1.1 1.1
Why we use this indicator The property income return, as calculated by MSCI, is the income return of the portfolio. Income is an important component of total return and our portfolio is biased towards income generation.
Why we use this indicator The cost ratio, recurring administration expenses as a proportion of the average net asset value, shows how efficiently the business is being run, and the extent to which economies of scale are being achieved. See the Supplementary Disclosures section for further details.
Our performance in 2021 The income return for the year of 4.7%was ahead of theMSCI UKQuarterly Property Index of 4.5%, andwe have also outperformed on a three, five and ten year, and since inception basis.
Our performance in 2021 The cost ratio has reduced to 1.0% this year as savings in administrative expenses have been made, together with the increase in net asset value.
3
1
1
3
2
2
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