Our Risk Appetite
The Group’s risk appetite is reviewed annually (in the context of the core strengths of our business model) and approved by the Board. This evaluation guides the actions we take in executing our strategy. The most significant judgements affecting our risk appetite include our assessment of prospective property returns; our asset selection and investment strategy; the level of development exposure and our financial leverage.
We have identified a suite of Key Risk Indicators (KRIs) to monitor our principal risks, which are reviewed quarterly by the Risk Committee, to ensure that the activities of the business remain within our risk appetite and that our risk exposure is well matched to changes in the business and operating environment.
The Board has considered the Group’s risk appetite and it is considered appropriate to achieve our strategic objectives. Our business is both resilient and well placed for the long term. Our portfolio is modern and nearly fully let to quality occupiers on long leases. We have maintained our capital discipline, with investment and development being broadly balanced by asset disposals, and reduced our proportionally consolidated LTV to 32%. Development continues to remain a core part of our business, and whilst our current commitment has reduced as our 2010 programme has recently completed, we are progressing an attractive future pipeline of development opportunities, with the flexibility to move forward when the time is right.
Download ‘Managing Risk’ from our Annual Report.