We measure progress against strategic objectives using the following financial and non-financial performance measures
1. Footfall
Strategic aim
To provide compelling destinations for shoppers
Why is this important?
Footfall is an important measure of a centre’s popularity with customers. Retailers use this measure as a key part of
their decision making process on where to locate their stores.
How is this measured?
Footfall numbers across CSC’s centres, including those managed by our partners, are captured using a combination of person
or car counting cameras located at specific entrance and exit points within the centre.
How have we performed?
Despite tough economic conditions during 2011 footfall has increased by over 2 per cent in the year confirming
the continuing attractiveness to the public of our quality shopping centres.
2. Occupancy
Strategic aim
To be the landlord that retailers want to do business with
Why is this important?
CSC aims to maximise the occupancy of its properties as vacant space will adversely impact on a centre’s trading environment.
How is this measured?
The passing rent of the Group’s properties currently occupied expressed as a percentage of the passing rent of occupied and the ERV of unoccupied properties.
How have we performed?
The attractiveness of the Group’s properties to retailers is evidenced by the continued above average occupancy levels. The small reduction in 2011 was due to a number of tenant administrations in December 2011.
3. Like-for-like net rental income
Strategic aim
To create long-term and sustainable growth in net rental income
Why is this important?
Measures the organic growth in income generated from the Group’s properties in the year.
How is this measured?
Removes from the year-on-year movement in net rental income the impact of acquisitions, developments and disposals.
How have we performed?
After the downturn in the commercial property market in 2009, the Group returned to positive like-for-like net rental income growth in 2010, with a further increase in the growth level achieved in 2011.
4a. Shareholder return
Strategic aim
To generate superior shareholders returns through dividend growth and capital appreciation
Why is this important?
Uses the movement in share price during the year plus dividends paid in the year.†
How have we performed?
REIT share prices fell in 2011 as did the general UK stock market. CSC marginally under performed the REIT index due to a relatively stronger performance from those companies in the index focused on the London property market.
4b.Total financial returnº
Strategic aim
To generate superior shareholders returns through dividend growth and capital appreciation
Why is this important?
This is a measurement of the total return movement in the Group’s balance sheet value through the change in the Group’s property valuations and its capital structure.
How is this measured?
Uses the movement in adjusted net asset value plus the impact of dividends paid in the year.
How have we performed?
Although net asset value per share increased in the year due to property valuation gains the return was affected by exceptional costs incurred in the year.
4c. Income performance
Strategic aim
To generate superior shareholders returns through dividend growth and capital appreciation
Why is this important?
The measure gives the underlying income generated in the year which gives an indication of the Group’s ability to pay dividends.
How is this measured?
Uses underlying earnings per share, which excludes property and derivative valuation movements and exceptional income or charges.
How have we performed?
Underlying earnings per share has grown in 2011 due to improved like-for-like net rental income and tight cost control.
4d. Prime property assets
Strategic aim
To generate superior shareholders returns through dividend growth and capital appreciation
Why is this important?
Measures the capital return on the Group’s property assets and compares this with the IPD index, a recognised industry benchmark.
How is this measured?
Includes the capital growth from the Group’s properties.
How have we performed?
The UK commercial property market experienced more difficult conditions following the significant rebound in values in 2010. The Group continued to outperform its benchmark in 2011.
* Data source: Bloomberg.
† Uses the CSC share price on 11 January 2011 as the opening value being the day on which Simon Property Group announced they had no intention to make a firm offer for the Group. This is consistent with methodology used in 2010.
º No peer group comparable data is provided due to the lack of available data on a comparable time period.