Climate Change Data

Environmental Metrics

Climate Goals & Targets

Environmental Challenges

• Uncertainty affecting property values due to the debacle in the retail environment and government neglect to adjust property taxes.
• Worsening market conditions leading to a 5.8% bad debt charge (compared to 4.1% in the prior year).

Mitigation Strategies

• Diversified property portfolio across different locations, sizes, types, and tenant qualities.
• Strong management team with the ability to adapt to market changes.
• Access to funds to benefit from investment opportunities.
• Strategies to deal with market cycles: disposing of assets when the market is strong and sourcing bargains when it is weak.
• Block policy to allow for changes in asset use (e.g., converting offices to residential).

Supply Chain Management

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: IFRSs as adopted by the European Union, FRS101 “Reduced Disclosure Framework” (UK GAAP)

Third-party Assurance: Nexia Smith & Williamson

Environmental Metrics

Social Achievements

• Implemented furlough scheme for some staff.
• Donated £20,000 to Land Aid.

Governance Achievements

• Adopted the Quoted Companies Alliance’s 2018 Corporate Governance Code.

Climate Goals & Targets

Environmental Challenges

• COVID-19 pandemic and the demise of tenant JE Beale Ltd.
• Lower income and increased bad debt charge.
• Worsening of swap liability.
• Lenders less confident after realizing losses on certain large shopping centers.

Mitigation Strategies

• Rent collection of circa 80% of invoiced income since the first lockdown.
• Cash funds of £9.2m and £12m available within the loan facility.
• Paid £5 million to vary a long-term swap agreement, reducing fixed rate and saving on cash flow.
• Diversified property portfolio and experienced management team.
• Low gearing levels, supportive lenders and cash reserves.
• Renewal of loan facility to £66 million with a three-year term.
• Unlocking value within the portfolio through planning permissions and lettings of vacant space.

Supply Chain Management

Responsible Procurement

• Prompt payment to suppliers (within 30 days in most instances).

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: IFRSs as adopted by the European Union, UK GAAP including FRS101 “Reduced Disclosure Framework”

Third-party Assurance: Crowe U.K. LLP

Environmental Metrics

ESG Focus Areas

• Community Investment
• Environmental Impact (Energy Efficiency)
• Governance (Corporate Governance)

Environmental Achievements

• Moving towards less paper communication; from 2019 to date our invoices have been emailed as standard to our tenants and we also encourage the receipt of electronic invoices. In 2021 we had a renewed push to move our last few tenants away from cheque payments. We also ensure we upgrade our units to the required EPC levels which by its very nature reduces the longer term environmental impact of the use of these units.

Social Achievements

• In March 2022 the Group donated £20,000 to the Daily Mail Ukrainian appeal. We also made regular other donations in the year including £10,000 to Land Aid and other smaller contributions being mainly adverts within Charity programs or diaries.
• The Group’s investments by their very nature often have a significant impact on local communities, providing services and convenience businesses, or places for local enterprise or employment. By owning a parade of shops, we can ensure where possible that these are viable locations by encouraging a variety of offerings.

Governance Achievements

• The Directors recognise the importance of good corporate governance and have chosen to adopt and apply the Quoted Companies Alliance’s 2018 Corporate Governance Code (the ‘QCA Code’).

Climate Goals & Targets

Environmental Challenges

• Higher costs, many of these items are non-recurring charges, which should not be repeated, but the Group cannot avoid the rising costs that are currently affecting most organisations and individuals.
• Controlling our holding and maintenance costs of our properties.
• Potential additional costs of improving the energy efficiency of our buildings to keep them in line, or even ahead of the EPC (“energy performance certificate”) regime requirements which is constantly being updated.

Mitigation Strategies

• Bringing in further controls and phasing our work programmes.
• Attempting to cost this for our more valuable properties to potentially include in our refinancing request (if required).

Supply Chain Management

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: QCA Corporate Governance Code

Environmental Metrics

ESG Focus Areas

• Energy Performance Certificate (EPC) compliance
• Community Investment
• Charitable Donations
• Political Donations

Environmental Achievements

• Ongoing program to comply with higher standards of energy performance certificate (EPC) requirements
• Introduced DocuSign for leases and agreements, reducing paper and carbon emissions

Social Achievements

• Support of numerous charities, particularly in areas of operation
• £20,000 political donation to the Reform UK party in 2023
• £10,000 donation to Land Aid
• £20,000 to the Daily Mail Ukraine Appeal in March 2022

Governance Achievements

• Strengthened the Board with the appointments of two non-executive directors with expertise in banking and surveying/valuation
• Adoption of the Quoted Companies Alliance’s 2018 Corporate Governance Code

Climate Goals & Targets

Environmental Challenges

• Higher costs of repairs, reconfigurations, and conversions of properties
• Rising costs affecting most organizations and individuals
• Potential additional costs of improving energy efficiency of buildings
• Delays in lease extension due to new political council administration

Mitigation Strategies

• Received £750,000 from dilapidation and surrender settlements
• Implemented further controls and phased works programs to control costs
• Negotiated no loan amortization on the most recent loan for the first two years
• Exploring alternative planning applications and possibilities for Swindon site

Supply Chain Management

Responsible Procurement

• Prompt payment to suppliers (within 30 days)

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: QCA Corporate Governance Code (2018)

Environmental Metrics

Social Achievements

• Donated £10,000 to Land Aid, a property industry charity focused on ending youth homelessness.
• Sponsored Braves Football Club CIC and other local football teams.

Climate Goals & Targets

Supply Chain Management

Climate-Related Risks & Opportunities