Key Performance Indicators
Measuring the success of the business
Financial KPIs
Total return (%)
A
2022 2021 2020
28.3
6.6
4.5
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 to measure 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. 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. We are now reporting EPCs rated A-C and as with occupancy this is expressed as a percentage of ERV. We have amended the methodology to better reflect the risks in relation to MEES.
Our performance in 2022 Our total return this year was driven by strong valuation gains and increased dividends.
3
1
2
Total shareholder return (%)
B
2022 2021 2020
18.7
0.0
3.6
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.
For more information on EPRA Best Practices Recommendations see pages 139–141
Remuneration Link
Strategic pillars
Our performance in 2022 An increase in the share price over the year, as the impacts of the pandemic receded, together with increased dividends, contributed to a return of 18.7%
3
1
Portfolio Performance
3
1
2
2
3
1
Operational Excellence
2
3
1
Acting Responsibly
2
Picton Property Income Limited Annual Report 2022
28
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