CorporateStrategy
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Political and economic Risk Uncertainty in the UK economy, whether arising frompolitical events or otherwise, brings risks to the propertymarket and to occupiers’ businesses. This can result in lower shareholder returns, lower asset liquidity and increased occupier failure.
Risk trend
Strategic Pillar
Mitigation The Board considers economic conditions and market uncertainty when setting strategy, considering the financial strategy of the business and in making investment decisions.
Commentary The impact of the pandemic in 2020 saw the largest ever contraction in UK GDP. A further decline occurred in the first quarter of 2021, with GDP contracting -1.5% to stand at -8.7% below the pre-pandemic level. With the rollout of the vaccine continuing, a rebound is forecast during the latter part of 2021, although with the risk of inflationary pressure.
Connected KPIs
A B C G H
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Market cycle
Risk trend
Risk The propertymarket is cyclical and returns can be volatile. There is an ongoing risk that the Company fails to react appropriately to changing market conditions, resulting in an adverse impact on shareholder returns.
Mitigation The Board reviews the Group’s strategy and business objectives on a regular basis and considers whether any change is needed, in light of current and forecast market conditions.
Commentary It is likely that uncertainty in the property market will decline as restrictions ease.
Connected KPIs C D
Strategic Pillar
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Regulatory and tax Risk The Group could fail to comply with legal, fiscal, health and safety or regulatorymatters which could lead to financial loss, reputational damage or loss of REIT status.
Risk trend
Strategic Pillar
Mitigation The Board and senior management receive regular updates on relevant laws and regulations. The Group is a member of the BPF and EPRA, and management attend industry briefings.
Commentary There are no significant changes expected to the regulatory environment in which the Group operates.
Connected KPIs A F
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Climate change
Risk trend
Strategic Pillar
Risk Failure to react to climate change could lead to the Group’s assets becoming obsolete and unable to attract occupiers.
Mitigation Sustainability is embedded within the Group’s business model and strategy. We are committed to developing our pathway to carbon net zero over the course of the coming year. All refurbishment projects consider environmental impact and where possible seek improvements.
Commentary There is an increasing momentum to the issue of addressing climate change. Investors are putting a greater emphasis on ESG credentials and occupiers are seeking more sustainable buildings.
Connected KPIs
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