Portfolio management
We regularly review our assets, to ensure our portfolio supports our objectives.
We look for an appropriate balance of high-quality core assets that generate attractive, secure and long-term income, and value-add assets with potential to create further value for shareholders and our wider stakeholders. We regularly assess the balance of our portfolio to identify asset management and capital recycling opportunities.
We categorise each asset as follows:
Core
These assets are the primary contributors to our long-term, stable income.
- Good-quality buildings with a useful life that is longer than the lease
- Invested to an appropriate standard
- Stable trading, contributing to a sustainable level of rent cover
Value-add
Value-assets are candidates for asset management initiatives.
- Present opportunities to invest to improve the asset and its performance
- May be a smaller home, have fewer ensuite bathrooms, require upgrades to its facilities or need environmental performance improvements
- May be opportunities to add value by enabling the tenant to offer a new service, such as dementia care and/or targeting private residents
Non-core
Non-core assets may be candidates for sale and are likely to have been acquired as part of larger portfolios.
- Homes with limited lifespans and where many aspects of the property are now obsolete
- Higher alternative use value
- Could be geographically isolated from our other assets