Target development and trading gains per annum
We deliver development and trading gains as we sell land and assets, where we have added value through improved planning, asset management or development. As such, development and trading gains are a key measure of the Group’s success. We target £50m+ development and trading gains per annum and £125-150+ in the next three years.
Target total returns
Total return, the growth in our basic net asset value (NAV) including dividends, is the most direct way of measuring returns to shareholders during the year. We target 12% average post tax total return.
Target investment portfolio total return
The investment portfolio total return includes the capital growth and income growth realised during the financial year across our investment assets. We target 10% total return.
Target gearing on balance sheet
The Group seeks to maintain a conservative level of gearing appropriate to the size of its Balance Sheet. At certain points in time, the Group’s gearing may increase as a result of an increased level of construction debt against specific assets. However, construction finance is usually only on projects where the exit has been secured through pre-sales or forward-funding. This allows us to maintain a low-risk financial structure and protect shareholder value throughout the property and economic cycles. We target 40-50% gearing on balance sheet and 50-60% including our share of joint venture debt.