How can SREC reduce portfolio risk?
Within my organisation, portfolio risk is monitored regularly. Data such as ULT, break clauses, EPC is reviewed and assessed using a risk colour as per the red amber and green analysis method.
What is SREC?
SREC aims to realign an organisations real estate portfolio with its overall business strategy and ovjectives
What is a business strategy?
This is a long term strategy that an org uses to achieve its goals. A business strategy explains how a company will succeed and grow over time.
What are PHP’s objectives?
PHPs main objective is to create progressive returns to its shareholders. To achieve this PHP invests in healthcare assists let on long term leases, backed by strong secure covenant where majority of income is gov backed.
PHP also seeks to increase its portfolio income and extend its WAULT. Additionally PHP seeks to future proof its portfolio and meet its envieromental commitments.
What is a business plan?
A business plan is a formal document which explains what the business is, what it wants to achieve and how it will achieve it.
Contents of business plan?
- Business description (what the company does, the industry it operates)
- Market analysis (or competitors, target customers)
- Products and services
- Operations plan (location, staff)
- Marketing / Sales startegy
- Financial plan (start up costs, revenue projections)
What are PHP’s environmental goals?
PHP seeks to achieve highest BREEAM STANDARDS. It also seeks to improve its portfolio’s EPC via assetmanagement programmes: A-B 47%; A-C (88%) as of 2024.
What is WAULT?
This is a portfolios/building
rental income * ULT / income
What is the UK net zero target?
The UK has a legally binding net zero greenhouse emissions target to church by 2050. Goal established in 2019.
NHS net zero targets
Net zero by 2040 for emissions it controls directly - 80% reduction by 2032
Net zero by 2045 in line with the UK legally binding target
What is PHP’s business plan?
PHP’s business plan explains how it will achieve it targets, for example maximising the income from its portfolio.
One way is via effective asset management programmes including lease renewals (extend WAULT and favourable terms);
rent reviews (drive rental income) ;
refurbishment - (increasing the asset value via improved rent and mitigating environmental risk)
What is a REIT?
It’s a company or a group of companies that own and manage a real estate. Portfolio that generates rental income and capital gains for shareholders
PHP sustainable development and refurb policy
Aim to deliver only net zero new developments
BREEAM excellent or v good
Min epc B
Minimise waste - easy to maintain
Enhanced biodiversity
Refurb - B by 2030
Over 1.5m - BREEAM v Good
Decommission oil and gas
Solar PV
