Profitability and Cash Flow Maps

(1) I & E Drivers
This shows both average weekly rent per unit and average weekly expenditure per unit increasing steadily in real terms but with rents showing slightly greater growth resulting in slightly improved margins over time, which shows especially in the later years.

(2) Profit Drivers
This shows a steady improvement in asset turnover, initially accompanied by deteriorating operating margins to 2022, then with improving margins to 2032. The net effect is an improvement from low to medium profitability in the later years

(3) Cost of Capital Drivers
The effective interest rate is forecast to fall initially towards 6.75% then rising sharply to 8% by 2032. Leverage is forecast to increase slightly then fall back to its current position. The net effect is to increase the cash cost of capital.

(4) Value Drivers
The improvement in return on assets offsets the increasing cash cost of capital, so value addition falls then rises over the 30-year forecast period.