How we create value

In order to unlock potential we apply our specialist skills to reposition properties to produce high quality, sustainable spaces that our customers demand. Our disciplined approach to allocating capital shapes our activities, ensuring we operate in tune with London’s cyclical property markets to maximise returns.

We apply our specialist skills to reposition properties…

…to create value

Acquire

–Disciplined capital allocation approach; must be accretive to existing portfolio. –Tired, inefficient properties, often with poor EPC ratings, with angles to exploit. –Attractive central London locations supported by infrastructure improvements/local investment. –Discount to replacement cost and typically off-market. –Off low rents and low capital values per sq ft. –Optionality: flexible business plans. –Opportunity to enhance sustainability credentials and grow our Flex portfolio.

During the year, we bought 7/15 Gresse Street, W1, to augment our Flex office offer. We anticipate securing vacant possession next year to allow us to convert the building into our Fully Managed offering.

See more on page 29 Reposition

–Through lease restructuring, the delivery of flexible space, refurbishment or redevelopment. –Deliver high quality sustainable spaces into supportive markets that meet and exceed customer needs.

–Manage risk through pre-letting, joint ventures and forward sales. –Deliver climate resilient buildings that integrate market-leading sustainability standards, flexibility, amenity, wellbeing and technological innovation. –Enhance the local environment and public realm. –Deliver a lasting positive social impact in our communities.

Repositioning buildings is key to adding value. This year, our activities focused on further evolving our flexible office offers, pre-letting our on-site development scheme and preparing our near-term development pipeline.

See more on pages 24, 26 and 28

See more on our investment activities on page 29

Sustainability touches everything we do

See more on our development activities on pages 23 to 26

…underpinned by key resources and relationships…

Our stakeholder relationships

–Intense, supportive, customer-focused approach to understand customers’ needs. Utilising regular customer feedback to create bespoke action plans. –Strong levels of customer satisfaction. –Open relationship with debt and equity providers based on clear investment case and transparent disclosure. –Deep relationships with key suppliers (including contractors) and joint venture partners. –Positive engagement with local communities, local authorities, and planning departments.

See more on our stakeholder relationships on pages 56 to 62 Our portfolio and sustainability

–100% central London, in attractive locations well served by local infrastructure with enduring customer demand. –High customer retention, diverse customer base and off low rents from which to grow. –Continual repositioning of buildings to improve the customer experience, future proof value and enhance the environment in which they are located. –Located in markets with high barriers to entry playing to our strengths. –Positioned for future growth; 24% of portfolio in development programme. Potential £1.1 billion commitment across four near-term schemes.

See more on our portfolio and sustainability on pages 34 to 36 and 37 to 51

+27.8

Net promoter score, outperforming the UK office average of +2

£631k

Social value created

85

GPE employees participating in the GPE community day

+6.1%

Like-for-like portfolio valuation growth1

100%

BREEAM ’Excellent’ completions

£403k

Invested through our Decarbonisation Fund

Manage

–Deliver a ‘Customer first’ approach providing efficient, resilient, healthy and innovative space to meet the demands of modern customers.

–Provide a greater choice of spaces to appeal to a variety of customer needs, whether on a Ready to Fit, Fitted or

Fully Managed basis. –Constantly evolving to lead emerging trends, including the use of technology to enhance the customer experience. –Detailed business plan for every property reviewed quarterly to maximise total returns over our cost of capital. –Strong sustainability credentials to maximise customer appeal, enhance the long-term property value and reduce obsolescence.

See more in our case study on pages 06 to 11

Customers increasingly require greater levels of service and amenity. Therefore, the spaces we deliver and the services we provide are evolving to meet this growing demand, including our new Fully Managed offer.

See more on page 28 Recycle

–Disciplined capital recycling through the sale of properties where we have executed our business plans, projected returns are insufficient or where we are able to monetise our expected future profits. –Create a legacy of high quality, sustainable buildings to benefit London and the communities in which they are located.

–Reinvest proceeds into higher return opportunities. –Return excess equity capital to shareholders when reinvestment opportunities are limited.

Given the continued strength of the investment market, we took the opportunity to crystallise the development surplus we created at 160 Old Street, EC1, selling the building for £181.5 million, 5% ahead of the 31 March 2021 valuation.

See more on page 29

See more in our investment activities on page 29

Our people and culture

–Experienced management team supported by specialist in-house portfolio management, occupier services, development, investment, leasing and finance teams and support functions. –Entrepreneurial and collegiate culture based on strong values with disciplined approach to risk management. –Reward linked to purpose, strategy and values with close alignment with stakeholders to deliver value and outperform our KPI benchmarks.

–Effective governance structure. –Strong employee engagement.

See more on our culture and people on pages 52 to 55 Our capital strength

–Consistently strong balance sheet and conservative financial leverage. –Low cost, diversified debt facilities and plentiful liquidity. –Evolving debt book to align with our values via

ESG-linked financing. –Sustainable finance framework in place, –Disciplined allocation of capital through analytical, risk adjusted IRR decision making. –Support low and progressive dividend policy. –Tax efficient REIT structure.

See more on our capital strength on page 32

89%

Employees who recommend GPE as a great place to work

86%

Employee engagement index

81%

Employee retention (stability index)

+7.2%

EPRA NTA NAV growth

20.5%

EPRA loan to value1

£391m

Cash and undrawn facilities1