Our integrated strategy

We have a clear but effective strategy aligned to the major long-term, structural drivers influencing our sector. This is underpinned by a disciplined approach to capital allocation and embedding ESG initiatives across all of our activities. Our strategy aims to deliver a sustainable combination of long-term, growing income and capital growth.

ESG

High-quality assets, attracting world-leading clients

Direct and active management

Insight-driven development and innovation

Developing land portfolio at yield on cost of 6-8%

Adding value, compounding income

Portfolio optimisation and recycling capital

High-quality assets, attracting world-leading clients

  • We own assets which are modern, well located and deliver strong ESG performance.
  • This makes them attractive to a wide range of clients.
  • It ensures attractive lease terms, providing resilient and compounding income generation.

Direct and active management

  • We directly and actively manage the assets we own to add value to them.
  • This enables us to respond to evolving client requirements, capture rental reversion and ensure our buildings remain best in class.
  • Where we have maximised value of an asset, we may choose to realise that value through a sale as part of our ongoing portfolio optimisation. Disposal proceeds are accretively redeployed into our development pipeline or investment opportunities.

Insight-driven development and innovation

  • We control the UK’s largest land portfolio for logistics development, providing the opportunity to construct new, high-quality buildings at an attractive 6-8% yield on cost.
  • We leverage the knowledge we gain from being long-term asset owners to provide valuable insights into maximising our development performance.
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Three long-term structural trends

The Covid-19 pandemic showed the extent to which logistics is a critical element of the UK’s infrastructure and how the modern logistics market is still in its relative infancy. Modern distribution assets play an integral role in supporting many industries and underpinning the UK’s economic output.

Our strategy is aligned with three powerful long-term structural drivers that underpin demand for our assets. These trends are expected to increase and sustain demand for quality logistics real estate in prime locations in the UK and are set against constrained demand.

Shifting consumer behaviour

Consumers want fast, flexible and ever more convenient ways to make purchases. This continues to drive strong growth in e-commerce, with online-only and traditional bricks and mortar (now omni-channel) retailers building out their networks to facilitate this.

Meanwhile, our increasingly digital world is driving greater demand for access to, and storage of, data.

Evolving supply chain

Companies continue to review their operations and adjust their supply chain in response. Additional resilience is now a priority, alongside optimising for efficiency, productivity and cost. Occupiers continue to pursue a variety of solutions, including holding more stock, diversifying their supplier base, investing in UK facilities, and improving supply chain visibility.

Drive for sustainability

Organisations are increasingly driven by their decarbonisation and sustainability objectives. Adaptation of their business models is leading to an increased focus on the role of logistics buildings in reducing carbon emissions, cutting energy use, and increasing employee and community engagement. Modern logistics buildings have enhanced sustainability performance, better staff facilities and are often designed with green space, biodiversity, and outdoor amenities in mind.

Long-term positive structural drivers make logistics real estate an attractive and growing sector.

Colin Godfrey, CEO

The value we create

By implementing our strategy, we can create value for each of our stakeholders, and the communities in which they are based.

Clients

Working collaboratively to create suitable logistics real estate solutions, proactively managed to support their long-term ambitions.

Communities

New jobs, tax revenues, local and green infrastructure, community support and enabling skills development.

Environment

Reduced impact through sustainably built assets and more efficient supply chains.

Shareholders

An aim to deliver attractive long-term income and capital growth.

Lenders

Interest and principal payments backed by secure cash flows.

Shareholder Information

Our key reporting dates, dividend calendars, details of AGMs, key documentation, information to manage your shares and much more are available on our shareholder information page.

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