Strategic Priorities

We aim to deliver sustainable, progressive earnings and long term capital value through the execution of our strategy. We continue to use seven key performance indicators to monitor the performance of the Group and its share of joint ventures. A number of the key performance indicators are also used to evaluate management performance and remunerate senior employees.

Objective KPI measure/numbers Performance 2016/17 ambition
Deliver long-term shareholder returns  Total shareholder return in % - 2016:5.9;2015-19.7;2014-41.7;

Total Shareholder Return, being the share price movement together with the dividend, in the three years post merger was 80%, outperforming the FTSE 350 Real Estate Super Sector Index of 47% by 1.7 times.

12 month Total Shareholder Return delivered 5.9% compared to a fall of 6% in the FTSE 350 Super Sector.

Three year TSR performance to be in the upper quartile of the FTSE 350 Real Estate companies.
Maximise long-term total accounting return  Total accounting return in % - 2016-11.5;2015-21.7;2014-16.5;

Total Accounting Return of EPRA NAV movement together with dividend paid over the year.

12 month Total Accounting Return delivered a return of 11.5%.

Three year total accounting return to be in the upper quartile of FTSE 350 Real Estate companies.
Maximise property portfolio returns  Total property return in % - 2016-10.5;2015-17.5;2014-17.0

Unlevered Total Property Return, including capital and income return, of the portfolio as calculated by IPD.

12 months Total Property Return delivered a return of 10.5% compared to IPD benchmark of 10.1%.

One year TPR outperformance against relevant IPD Quarterly Universe benchmark.
Deliver sustainable growth in EPRA earnings  EPRA earnings per share - 2016-7.8;2015-6.6;2014-4.2

Recurring earnings per share from core operational activities have grown by 18% over the last 12 months. In the last three years since merger, EPRA earnings per share have grown by 100%.

Deliver and sustain EPRA earnings growth and dividend progression.
Drive like-for-like income growth through management actions  EPRA like-for-like income growth in % - 2016-3.1;2015-2.9;2014-3.4

Year-on-year movement of net rental income on properties owned through the period increased by 3.1%.

Deliver like-for-like income growth ahead of inflation plus 1.5%.
Maintain strong occupier contentment  EPRA vacancy in % - 2016-0.7;2015-0.3;2014-0.4

Occupancy rate of investment portfolio of 99.3% against IPD all property benchmark of 93.0%.

Maintain high occupancy across the investment portfolio, targeting > 99%.
Maintain a higher than market benchmark weighted average unexpired lease term (WAULT)  WAULT(years) - 2016-12.8;2015-13.1;2014-12.7

Weighted average unexpired lease term across the investment portfolio (excluding residential and development) of 12.8 years as at 31 March 2016, which outperformed the IPD all property benchmark of 11.2 years.

Maintain high weighted average unexpired lease term targeting > 12 years.
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