Outlook The impact of the pandemic and consequent lockdowns has led to a very uncertain operating environment. We have been able to adapt to the ‘new normal’ and although occupational requirements have, outside the industrial sector, been far more muted, we have secured new occupiers. We have achieved this through embracing new technologies, creating virtual tours, and thinking more laterally as to how we can market our buildings with social distancing measures in place. Our focus remains on working with our occupiers and this year has shown more than any the importance of our long-standing relationships and the benefit of our approach. This has enabled us to navigate through these uncertain times and to end the year in a positive position. As at 31 March 2021 the portfolio had £9 million of reversionary income potential,
The retail and leisure sector has been severely affected by the Covid-19 pandemic; however, we are more positive about retail warehousing which makes up 60% of our retail allocation. We have succeeded in letting retail warehouse units during the year at our two parks which were refurbished in 2020 and have strong interest in our last remaining retail warehouse void. Our high street portfolio is over 90% leased and we have no shopping centre exposure. We remain in a strong position with advantageous portfolio weightings, good quality assets and a proven occupier focused approach. Looking forward, we remain focused on continuing to grow occupancy and income, engaging with our occupiers and investing further into our assets.
£4 million from letting the vacant space, £3 million from expiring rent- free periods and £2 million where the passing rent is belowmarket level. Demand for our industrial properties remains robust as proven by our high occupancy and growing ERVs. With this sector accounting for 53% of the total portfolio by value, we believe it will continue to contribute strongly to our outperformance. Business activity is beginning to pick up in the office sector where 36% of our portfolio is allocated, and we have attractive refurbished space in which we have increasing interest. We believe there is pent-up demand, especially in the regions, and this will come through as the year progresses with demand focusing on flexible Grade A space. In addition, we are now offering fitted space, ready to occupy, which we believe is where the market is heading in respect of smaller suites, especially in London.
Jay Cable Senior Director and Head of Asset Management 26 May 2021
Top ten occupiers The largest occupiers, based as a percentage of contracted rent, as at 31 March 2021, are as follows:
Contracted rent (£m)
Occupier
%
Public sector Whistl UK Limited
2.1 1.6 1.2 1.2
5.0 3.9 3.0 2.8 2.8 2.3 1.9 1.9 1.6 1.5
B&Q Plc
The RandomHouse Group Limited
Snorkel Europe Limited
1.2 1.0 0.8 0.8 0.7 0.6 11.2
XMA Limited
Portal Chatham LLP DHL Supply Chain Limited
Canterbury Christ Church University PA Consulting Services Limited
Total
26.7
37
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