How we've performed

Group key performance indicators

Over the medium term we aim to consistently outperform our benchmarks. The central London property investment market continued to strengthen throughout the period with some parts of the London market recovering to the highs of 2007. These favourable market conditions, combined with the delivery of our strategic priorities, resulted in the Group outperforming all of its benchmarks for the year.

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The measure and benchmark

TSR is the most direct way of measuring the change in shareholder returns during the year.

TSR of the Group is benchmarked against the TSR of the FTSE 350 Real Estate index (excluding agencies).

Relative TSR is one of the performance criteria for the Group’s long-term incentive plans.


The TSR of the Group was 23.9% for the year outperforming the FTSE 350 Real Estate index by 11.1 percentage points as investors continued to support our growth plans.

The Group’s five year TSR of 21.6% outperformed the benchmark of minus 35.3% over the five years to 31 March 2011.


The measure and benchmark

Adjusted net assets per share growth is the traditional industry measure of the Group’s success at creating value.

We compare the growth in net assets per share with the increase in the retail price index (RPI) plus a hurdle of up to 12% over a three year period which is used as a measure under the Group’s long-term incentive plans.


Adjusted net assets per share increased by 27.2% over the year as property values continued to recover and the Group benefited from further accretive acquisitions and returns from its near-term development programme.

Our RPI benchmark increased marginally on last year resulting in a 20.0 percentage point relative outperformance for the year. For the five years to 31 March 2011 the Group’s net assets per share grew by a compound 2.0% p.a. compared with the benchmark RPI based hurdle of 7.2% p.a.


The measure and benchmark

TPR is calculated from capital growth in the portfolio plus net rental income derived from holding these properties plus profit or loss on sale of disposals expressed as a percentage return on the period’s opening value.

The Group’s portfolio TPR is compared to a universe of over £25 billion of similar assets included in the IPD central London benchmark.


The Group generated a portfolio TPR of 22.4% in the year whereas the benchmark produced a return of 18.0% resulting in a relative outperformance of 3.7 percentage points.

Over the last five years the Group’s annualised portfolio TPR was 8.6% outperforming the benchmark by 4.4 percentage points.


The measure and benchmark

The Group’s EPRA vacancy rate is calculated as the ERV of vacant space divided by the ERV of the property portfolio, expressed as a percentage.

The Group’s vacancy rate is compared to the vacancy rate in the IPD central London benchmark.


The EPRA vacancy rate is a new KPI for the year to 31 March 2011. It is designed to show how effective the Group is at letting available space in the portfolio.

The Group’s vacancy rate was 2.7% compared to the benchmark of 8.0% resulting in an outperformance of 5.3 percentage points.