Our continued focus on asset management during the year including rent reviews, new lettings, lease extensions and the retention of tenants beyond their contractual break clauses resulted in a GBP9.4m valuation increase in the year.

Property portfolio summary 


                             2021      2020 
Property portfolio value     GBP551.9m   GBP559.8m 
Separate tenancies           265       280 
EPRA occupancy rate          91.6%     95.9% 
Assets                       159       161 
WAULT                        5.0 years 5.3 years 
NIY                          6.6%      6.8% 
Weighted average EPC rating  C (63)    C (70)

In what has been a challenging year we have seen that close collaboration with tenants will generate asset management opportunities including lease extensions and re-gears which has seen the Company maintain its weighted average unexpired lease term to first break or expiry ("WAULT") above five years despite the effects of the COVID-19 pandemic.

Key asset management initiatives completed during the year include: 1. Completing a 10 year lease with Life Technologies at an industrial unit in Warrington at an annual rent of GBP378k,

with a tenant only break option and open market rent review in year five, increasing valuation by GBP1.6m; 2. Completing a 20-year lease extension with Bannatyne Fitness on a leisure scheme in Perth, extending lease expiry to

August 2046 and incorporating five yearly RPI linked rent reviews, which increased valuation by GBP1.5m; 3. Completing a lease extension without break with DX Networks at a logistics unit in Nuneaton, with lease expiry

moving from March 2022 to March 2032. The March 2022 rent review is expected to result in an increase in the

annual GBP267k passing rent. This lease extension increased valuation by GBP1.4m; 4. Completing a new lease to Nuffield Health at Stoke for a term of 20 years without break, at an annual rent of GBP300k

subject to five yearly CPI-linked rent reviews, increasing valuation by GBP0.9m; 5. Unconditionally exchanging an agreement for lease with MCC Labels in Daventry on a new ten-year lease without break

commencing in Spring 2021 after the current tenant vacates in December 2020, at a rent of GBP295k pa, which increased

valuation by GBP0.8m; 6. Commencing a letting with Nationwide Building Society on a high street retail unit in Shrewsbury for a term of 10

years without break, at an annual rental of GBP100k, increasing valuation by GBP0.6m; 7. Completing a five year reversionary lease with Worthington Armstrong on an industrial unit in Gateshead at an

increased annual rent of GBP285k, increasing valuation by GBP0.4m; 8. Completing a 10 year lease renewal with Silgan Closures at an industrial unit in Doncaster, with tenant break

options in years three and five at an increased annual rent of GBP400k, increasing valuation by GBP0.3m; 9. Completing a 10 year lease renewal with a break in year five to Royal Mail at an industrial unit in Kilmarnock,

maintaining the current passing rent of GBP95k with an open market rent review in year five, increasing valuation by

GBP0.3m; 10. Completing a lease assignment for a car showroom in Stockport from Benham Specialist Cars to the stronger covenant

of Williams Motor Company, and rebasing the annual rent from GBP740k to GBP640k with a fixed uplift to GBP669k in August

2022, increasing valuation by GBP0.3m; 11. Completing a five-year lease extension with DHL on an industrial unit at Speke, Liverpool, subject to a tenant-only

break in year three, maintaining annual passing rent at GBP119k which increased valuation by GBP0.2m; 12. Varying the lease with Elma Electronics at an industrial unit in Bedford to remove the September 2022 break option,

moving lease expiry out to September 2027, increasing valuation by GBP0.2m; 13. Settling an outstanding rent review with Unilin Distribution at a logistics unit in Manchester, securing an uplift

in annual passing rent from GBP220k to GBP254k, increasing valuation by GBP0.2m; 14. Completing an open market rent review with Yodel at a logistics unit in Bellshill, securing an uplift from GBP275k to

GBP310k, increasing valuation by GBP0.2m; 15. Completing lease renewal with Rexel at an industrial unit in Gateshead on a 10 year term with a tenant break option

in year five and open market rent reviews and annual passing rent increasing from GBP50k to GBP55k, increasing

valuation by GBP0.1m; 16. Completing a five-year lease extension with Erskine Murray at an office building in Leicester, extending the lease

expiry from December 2020 to December 2025 at an increased annual rental of GBP72.5k (previously GBP66.5k) which

increased valuation by GBP0.1m; 17. Completing a deed of variation with Urban Outfitters in Southampton to push the October 2021 tenant only break

option back to April 2024, increasing the term certain to 3.5 years, which increased valuation by GBP0.1m; 18. Settling an open market rent review with Synergy Health at an industrial unit in Sheffield, increasing the annual

rent from GBP142k to GBP158k which increased valuation by GBP0.1m; 19. Completing a five year lease extension with Homebase at Leighton Buzzard, maintaining annual passing rent of GBP341k

and moving lease expiry from December 2023 to 2028, increasing valuation by GBP0.1m; 20. Exchanging an agreement for lease with Just for Pets on a retail warehouse unit in Evesham for a term of 10 years

with a break in year six, at an annual rent of GBP95k, with no impact on valuation; 21. Completing a deed of variation to remove the September 2021 break option with Felldale Group at a retail unit in

Chester, extending the lease expiry to September 2026 with no impact on valuation; 22. Completing a lease assignment from JB Global to Oak Furniture Land Group at a retail warehouse unit in Plymouth,

rebasing the passing rent from GBP250k to GBP150k and including mutual break options in years two and four, with no

impact on valuation; 23. Unconditionally exchanging an agreement for lease with MKM in Lincoln on a new 10 year reversionary lease on a

trade counter unit, extending expiry from June 2022 to June 2032 without break and maintaining annual passing rent

at GBP192k with 12 months' rent free, with no impact on valuation; 24. Re-gearing with The Works in Portsmouth which removed a tenant only break option in October 2021, extending the

term certain to October 2026, with no impact on valuation; 25. Completing a lease renewal with The White Company in Nottingham for a five year lease with 2.5 year tenant only

break option at a reduced annual rent of GBP65k, with the property disposed of since the year end at valuation; 26. Completing a short-term turnover-based lease with mutual breaks to retain Game in Portsmouth following expiry of

its existing lease whilst we re-market the premises, with no impact on valuation; 27. Completing a five-year lease renewal with Sports Direct on a retail park in Weymouth at a rebased annual rent of

GBP90k (previously GBP118k), subject to a 5% turnover top-up clause and featuring rolling mutual break options after 36

months, with no impact on valuation; 28. Commencing the letting of a newly developed drive-through coffee restaurant in Burton upon Trent let to 1 Oak (t/a

Starbucks) on a 20 year lease subject to a tenant break option in year 10, at an annual rent of GBP55k with

five-yearly RPI-linked rent reviews; 29. Exchanging an agreement for lease with Tim Hortons Fast Food Restaurants on a drive-through restaurant in Perth

(formerly a Frankie & Benny's) at an annual rent of GBP90k for a term of 15 years, with a tenant only break option in

year 10, with no impact on valuation; 30. Completing a five year lease renewal with Reiss on a high street retail unit in Guildford at an annual rent of

GBP170k, which reduced Reiss' footprint to allow access to the unused upper floors for potential residential

conversion, with no impact on valuation; and 31. Completing a five year lease to Oak Furniture Land Group in Carlisle with annual tenant break options and landlord

break options in years two and four, at an annual rent of GBP100k, with no impact on valuation. Although these positive asset management outcomes have been tempered by the impact of the following business failures, which have resulted in GBP1,346k (3.3% of rent roll) of lost annual contractual rent since 31 March 2020, in most cases we have subsequently seen positive letting activity: 


                                        Lost annual 
                                        contractual 
                                        rent 
Location      Tenant         Sector     GBP000        Event                           Activity following business failure 
 
                                                    Tenant vacated and in           Comprehensive building 
West Bromwich Office Team    Industrial 280         liquidation                     refurbishment underway, with unit 
                                                                                    being remarketed 
 
                                                    CVA - tenant remains in 
                                                    occupation rent free whilst 
Grantham and                 Retail                 units are remarketed 
Evesham       Poundstretcher warehouse  221                                         Agreement for lease with new tenant 
                                                                                    exchanged for Evesham site 
 
                                                    CVA - rent reduced to 25% in 
                                                    2020 and 70% in 2021 
Portishead    Travelodge     Hotel      167                                         Lease assigned to AGO Hotels at 
                                                                                    above the CVA rent 
 
                                                    CVA - base rent reduced by an

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