Key Performance Indicators
Measuring the success of the business
We have a range of key performance indicators that we use to measure the performance and success of the business.
Strategic pillars
Operational Excellence
Portfolio Performance
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3
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Acting Responsibly
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3
Financial KPIs
2
Total return (%)
Total shareholder return (%)
Total property return (%)
A
B
C
2023 2022 2021
2023 2022 2021
2023 2022 2021
–26.4
–13.9
–8.7
18.7
28.3
24.3
0.0
6.6
7.3
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 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.
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.
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Our performance in 2023 Although the EPRA earnings component of total return was stable this year, the adverse valuation movements in the year resulted in a negative total return.
Our performance in 2023 In line with the property sector generally our share price has declined over the year, reflecting the rising interest rate environment.
Our performance in 2023 We have outperformed the MSCI UK Quarterly Property Index for the tenth consecutive year, delivering a return of -8.7% compared to the Index return of -12.6% for the year. We have also delivered upper quartile outperformance against MSCI over three, five and ten years, and since inception.
22
Picton Property Income Limited Annual Report 2023
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