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.
1 / 3

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.

The growth of e-commerce

Consumers want faster, more flexible and more convenient ways to make purchases, which has driven strong growth in e-commerce over the past decade and beyond. Logistics real estate plays a fundamental role in delivering online orders to consumers and managing returns rapidly and efficiently. Online sales accounted for 27% of retail sales in 2023 (2019: 19%).

(Source: ONS)

Supply chain resilience and optimisation

Global supply chains continue to face intense pressure even though Covid-19 related challenges have subsided. Companies continue to review how they operate and adjust their supply chain accordingly. Additional resilience is now a priority alongside optimising for efficiency, productivity, and cost. Occupiers continue to pursue a variety of solutions including:

- Consolidating into larger, often purpose-built distribution centres.

- Deploying automation and technology at scale.

- Holding more inventory onshore or closer to end users.

- Outsourcing supply chain functions to specialists.

 

As part of their resilience strategies, 29% of occupiers plan to diversify their supply chain by sourcing from multiple locations, and 22% through near-shoring.

(Source:TI)

ESG

Organisations continue to work towards being more sustainable, reducing their environmental impact, cutting energy use, and increasing employee and community engagement. Modern logistics units have enhanced sustainability features, better staff facilities and are often designed with green space, biodiversity, and outdoor amenities in mind. 90% of logistics occupiers have a net zero carbon target.

(Source: CBRE)

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.

Find out more