Climate Change Data

Environmental Metrics

ESG Focus Areas

• Environmental
• Social
• Governance

Environmental Achievements

• The Company’s outsourced business model, which focusses on the employment of agents, advisers and contractors who are local to our property assets, is inherently environmentally friendly. Any development activity undertaken is carried out in accordance with applicable energy and resource saving standards, noise impact reduction requirements, and, where relevant, the need to preserve the character of buildings, including listed properties. Our contractors are required to dispose of waste in accordance with best practice. We continue to take action to upgrade the energy performance of our letting units wherever required.

Social Achievements

• The directors remain conscious that the Company’s ability to operate effectively rests on our reputation for fairness and a straightforward and honest approach to conducting business. We therefore strive to transact business in accordance with the highest professional standards and all those who act on our behalf are expected to do the same. Besides complying with all relevant legislation and professional guidelines, this includes customer care and external complaint procedures. It is our policy to seek to deal constructively with all stakeholders in relation to any community issues that arise in relation to our properties. Our policy is to prefer to use local advisers, agents and contractors whenever appropriate to do so.

Governance Achievements

• The Company has in place an Anti-Bribery and Anti-Corruption Policy which the directors consider fulfils UK Government guidelines for compliance with UK Bribery Act 2010
• The Company is subject to, and seeks to comply with, the Financial Conduct Authority’s (“FCA”) Listing Rules (“Listing Rules”), the Market Abuse Regulation and the Disclosure Guidance and Transparency Rules of the Financial Conduct Authority. The Company is also subject to the UK City Code on Takeovers and Mergers.

Climate Goals & Targets

Environmental Challenges

• The extended impact of Covid-19, rapidly followed by the war in Ukraine and excessive valuations in many markets has resulted in the directors researching and purchasing holdings, which the directors consider to offer better value, outside of the travel and leisure industries, whilst at the same time trying to mitigate market exposure.
• Higher than anticipated property maintenance costs
• Changes to legal environment, planning law or local planning policy
• Failure to comply with regulatory requirements in connection with property portfolio, including health, safety and environmental
• Corporate Governance & Management Non-availability of information technology systems or failure of data security
• Financial and property market conditions

Mitigation Strategies

• The directors will continue to actively manage the Company’s property portfolio and will sell properties only when the directors consider it to be in the best interests of the Company’s shareholders to do so.
• All material expenditure subject to authorisation regime • Capital expenditure subject to regular review
• Monitoring of UK property environment and regulatory proposals • Close liaison with agents and advisers • Membership of and dialogue with relevant industry bodies
• Guidance on regulatory requirements provided by managing agents and professional advisers • Individual properties monitored by asset managers and agents • Managing agents operate formal regulatory certification process for residential accommodation • Ongoing programme of risk assessments for key multi-tenanted sites • Key risks covered by insurance policies
• Provision of effective security regime with automatic off-site data and systems back-up
• The Group is debt-free and debt finance has not been required. • Finance risks reduced with provision of cash reserve • Impact of interest rates on property yields monitored

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Not disclosed

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: Null

Certifications: Null

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Not disclosed

Environmental Metrics

ESG Focus Areas

• Environmental
• Social
• Governance

Environmental Achievements

• The Company’s outsourced business model, which focuses on the employment of agents, advisers and contractors who are local to our property assets, is inherently environmentally friendly. Any development activity undertaken is carried out in accordance with applicable energy and resource saving standards, noise impact reduction requirements, and, where relevant, the need to preserve the character of buildings, including listed properties. Our contractors are required to dispose of waste in accordance with best practice. We continue to take action to upgrade the energy performance of our letting units wherever required.

Social Achievements

• The Group has a formal diversity and equal opportunities policy in place and is committed to a culture of equal opportunities for all regardless of age, race or gender.
• It is our policy to seek to deal constructively with all stakeholders in relation to any community issues that arise in relation to our properties. Our policy is to prefer to use local advisers, agents and contractors whenever appropriate to do so.

Governance Achievements

• The Company has in place an Anti-Bribery and Anti-Corruption Policy which the directors consider fulfils UK Government guidelines for compliance with UK Bribery Act 2010.

Climate Goals & Targets

Environmental Challenges

• The untimely and unforeseen resignation of the Company’s previous auditor caused a delay in presenting the Company’s Accounts.
• Dispute with Argos in Hastings regarding property repairs and asbestos discovery.
• Underperformance of HEIQ due to cyclical weakness in the retail sector.
• Higher than anticipated property maintenance costs.
• Changes to legal environment, planning law or local planning policy.
• Failure to comply with regulatory requirements.
• Non-availability of information technology systems or failure of data security.
• Financial and property market conditions.

Mitigation Strategies

• Significant Board time was spent on repositioning the Company’s property assets.
• Repair of the vacated property in Hastings is nearing completion.
• Monitoring of UK property environment and regulatory proposals.
• Close liaison with agents and advisers.
• Provision of effective security regime with automatic off-site data and systems back-up.
• The Group is debt-free and debt finance has not been required.
• Finance risks reduced with provision of cash reserve.
• Impact of interest rates on property yields monitored.
• Actual and prospective voids and rental arrears continually monitored.
• Early identification of / discussions with tenants in difficulties.
• Regular review of all properties for lease terminations and tenant risk, with early action to take control of units as appropriate.
• Close liaison with local agents enables swift decisions on individual properties.
• All material expenditure subject to authorisation regime.
• Capital expenditure subject to regular review.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Preference for local advisers, agents and contractors

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: Null

Certifications: Null

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Not disclosed

Environmental Metrics

ESG Focus Areas

• Diversity
• Health, Safety and Welfare
• Anti-corruption and Anti-bribery
• Environmental Responsibility (implicitly through property management)

Environmental Achievements

• Continued focus on using local contractors and agents, aiming for environmental friendliness through property management practices. Upgrading energy performance of letting units where needed. Waste disposal in accordance with best practice.

Social Achievements

• Formal diversity and equal opportunities policy in place. No material health, safety, and welfare incidents reported. Constructive stakeholder engagement regarding community issues.

Governance Achievements

• Anti-Bribery and Anti-Corruption Policy in place, fulfilling UK Government guidelines. Whistle-blowing procedure established.

Climate Goals & Targets

Environmental Challenges

• Underperforming property in Brislington due to tenant problems and adjacent building work. Illegal occupancy in Hastings. High building costs hindering refurbishment and expansion projects. Difficulty in finding tenants for vacant units.

Mitigation Strategies

• Monitoring tenant defaults and arrears. Regular property reviews for lease terminations and tenant risk. Close liaison with local agents for swift decisions. Refurbishment of former Argos unit complete. Legal action against illegal tenant settled. Seeking to relet units at prevailing rates. Reviewing operational plans and timing in response to economic changes.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Preference for local advisors, agents, and contractors.

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: Null

Certifications: Null

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Not disclosed