Funding Strategy and
Prudent financial strategy
The Group’s financial strategy includes maintaining a profile of adequate liquidity, conservative gearing, and a diverse debt structure, which combines secured and unsecured bank debt with unsecured bonds.
- Investment grade credit rating:
- BBB, negative outlook – Standard & Poor’s
- BBB, stable outlook – Fitch
- Versatile funding profile through a combination of equity issues and debt.
- Debt strategy focused on a targeted 35% loan-to-value (LTV) – 32% (as at 31 December 2019).
- Prudent liquidity profile which includes cash accounts and deposits held with investment grade banks, and significant committed unsecured revolving facilities.
- 83% of the portfolio is unencumbered.
- Long-term interest rate risk hedged via caps and swaps.
- Weighted average cost of debt: 2.4% (for 2019).