Consolidated Income Statement |
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for the year ended 31 March 2013 |
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2013 |
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2012 |
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Underlying |
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Capital |
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Underlying |
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Capital |
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pre-tax* |
and other |
Total |
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pre-tax* |
and other |
Total |
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Note |
£m |
|
£m |
£m |
|
£m |
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£m |
£m |
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Gross rental and related income |
3 |
329 |
|
- |
329 |
|
332 |
|
- |
332 |
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Net rental and related income |
3 |
281 |
|
- |
281 |
|
286 |
|
- |
286 |
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Fees and other income |
4 |
15 |
|
- |
15 |
|
16 |
|
- |
16 |
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Joint ventures and funds (see also below) |
130 |
|
(63) |
67 |
|
113 |
|
69 |
182 |
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Administrative expenses |
(72) |
|
- |
(72) |
|
(69) |
|
- |
(69) |
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Net valuation movement (includes result on disposals) |
5 |
- |
|
88 |
88 |
|
- |
|
143 |
143 |
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Financing costs |
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|||
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- financing income |
6 |
21 |
|
2 |
23 |
|
24 |
|
2 |
26 |
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|
- financing charges |
6 |
(101) |
|
(41) |
(142) |
|
(101) |
|
(4) |
(105) |
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|
(80) |
|
(39) |
(119) |
|
(77) |
|
(2) |
(79) |
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Profit (loss) on ordinary activities before taxation |
274 |
|
(14) |
260 |
|
269 |
|
210 |
479 |
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Taxation |
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- current tax income (expense) |
7 |
|
|
8 |
8 |
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(2) |
(2) |
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- deferred tax income |
7 |
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|
16 |
16 |
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3 |
3 |
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24 |
24 |
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|
1 |
1 |
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Profit for the year after taxation attributable to shareholders of the Company |
284 |
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|
480 |
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Earnings per share: |
- |
basic |
2 |
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|
31.7 |
p |
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54.1 |
p |
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- |
diluted |
2 |
|
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31.5 |
p |
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53.8 |
p |
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Share of results of joint ventures and funds |
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Underlying profit before taxation |
130 |
|
- |
130 |
|
113 |
|
- |
113 |
|
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Net valuation movement (includes result on disposals) |
- |
|
(62) |
(62) |
|
- |
|
72 |
72 |
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Non-recurring items |
|
- |
|
(4) |
(4) |
|
- |
|
(3) |
(3) |
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Current tax income (expense) |
- |
|
2 |
2 |
|
- |
|
(1) |
(1) |
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Deferred tax income |
- |
|
1 |
1 |
|
- |
|
1 |
1 |
|
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Share of results of joint ventures and funds |
9 |
130 |
|
(63) |
67 |
|
113 |
|
69 |
182 |
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All results derive from continuing operations. |
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*As defined in note 2 |
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Consolidated Statement of Comprehensive Income |
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for the year ended 31 March 2013 |
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2013 |
2012 |
|
|
£m |
£m |
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|
|
|
|
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Profit for the year after taxation |
284 |
480 |
|
|
|
|
|
Other comprehensive income: |
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Items that will not be reclassified subsequently to profit or loss: |
|||
Net actuarial loss on pension scheme |
(2) |
(3) |
|
|
|
(2) |
(3) |
|
|
|
|
Items that may be reclassified subsequently to profit or loss: |
|||
Losses on cash flow hedges |
|
||
- Group |
|
(16) |
(65) |
- Joint ventures and funds |
(6) |
(50) |
|
|
|
(22) |
(115) |
|
|
|
|
Transferred to the income statement (cash flow hedges) |
|||
- foreign currency derivatives |
(5) |
- |
|
- interest rate derivatives |
26 |
18 |
|
|
|
21 |
18 |
|
|
|
|
Exchange differences on translation of foreign operations |
|
||
- hedging and translation |
(4) |
9 |
|
- other |
|
6 |
(8) |
|
|
2 |
1 |
|
|
|
|
|
|
|
|
Other comprehensive loss for the year |
(1) |
(99) |
|
|
|
|
|
|
|
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Total comprehensive income for the year attributable to shareholders of the Company |
283 |
381 |
|
|
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|
Consolidated Balance Sheet |
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as at 31 March 2013 |
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2013 |
|
2012* |
|
|
Note |
£m |
|
£m |
|
ASSETS |
|
|
|
|
|
Non-current assets |
|
|
|
|
|
Investment and development properties |
8 |
5,488 |
|
5,346 |
|
Owner-occupied property |
8 |
42 |
|
41 |
|
|
|
5,530 |
|
5,387 |
|
|
|
|
|
|
|
Other non-current assets |
|
|
|
|
|
Investments in joint ventures and funds |
9 |
2,336 |
|
2,191 |
|
Other investments |
10 |
76 |
|
28 |
|
Interest rate derivative assets |
15 |
92 |
|
73 |
|
|
|
8,034 |
|
7,679 |
|
|
|
|
|
|
|
Current assets |
|
|
|
|
|
Trading properties |
8 |
40 |
|
47 |
|
Debtors |
11 |
60 |
|
95 |
|
Liquid investments |
15 |
- |
|
200 |
|
Cash and short-term deposits |
15 |
135 |
|
137 |
|
|
|
235 |
|
479 |
|
|
|
|
|
|
|
Total assets |
|
8,269 |
|
8,158 |
|
|
|
|
|
|
|
LIABILITIES |
|
|
|
|
|
Current liabilities |
|
|
|
|
|
Short-term borrowings and overdrafts |
15 |
(44) |
|
(49) |
|
Creditors |
12 |
(259) |
|
(261) |
|
Corporation tax |
|
(17) |
|
(23) |
|
|
|
(320) |
|
(333) |
|
|
|
|
|
|
|
Non-current liabilities |
|
|
|
|
|
Debentures and loans |
15 |
(2,134) |
|
(2,572) |
|
Other non-current liabilities |
13 |
(26) |
|
(25) |
|
Deferred tax liabilities |
14 |
(16) |
|
(32) |
|
Interest rate derivative liabilities |
15 |
(86) |
|
(92) |
|
|
|
(2,262) |
|
(2,721) |
|
|
|
|
|
|
|
Total liabilities |
|
(2,582) |
|
(3,054) |
|
|
|
|
|
|
|
Net assets |
|
5,687 |
|
5,104 |
|
|
|
|
|
|
|
Equity |
|
|
|
|
|
Share capital |
18 |
249 |
|
225 |
|
Share premium |
|
1,242 |
|
1,237 |
|
Merger reserve |
|
213 |
|
- |
|
Other reserves |
|
(163) |
|
(164) |
|
Retained earnings |
4,146 |
|
3,806 |
|
|
|
|
|
|
|
|
Total equity attributable to shareholders of the Company |
5,687 |
|
5,104 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EPRA NAV per share** |
2 |
596 |
p |
595 |
p |
|
|
|
|
|
|
|
|
|
|
|
|
* Comparatives have been re-presented, see note 1. |
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** As defined in note 2. |
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|
|
|
|
|
|
|
|
|
Consolidated Statement of Cash Flows |
|
||
for the year ended 31 March 2013 |
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|
|
|
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|
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|
|
|
|
2013 |
2012 |
|
Note |
£m |
£m |
|
|
|
|
|
|
|
|
Rental income received from tenants |
266 |
271 |
|
Fees and other income received |
19 |
21 |
|
Operating expenses paid to suppliers and employees |
(88) |
(81) |
|
Cash generated from operations |
197 |
211 |
|
|
|
|
|
|
|
|
|
Interest paid |
(113) |
(89) |
|
Interest received |
31 |
17 |
|
UK corporation tax received |
1 |
3 |
|
Distributions and other receivables from joint ventures and funds |
74 |
64 |
|
Net cash inflow from operating activities |
190 |
206 |
|
|
|
|
|
|
|
|
|
Cash flows from investing activities |
|
||
Development and other capital expenditure |
(230) |
(106) |
|
Purchase of investment properties |
(442) |
(382) |
|
Sale of investment properties |
699 |
59 |
|
Purchase of investments |
- |
(22) |
|
Sale of investments |
2 |
- |
|
Deferred consideration received |
18 |
12 |
|
Investment in and loans to joint ventures and funds |
(318) |
(110) |
|
Capital distributions received from joint ventures and funds |
72 |
- |
|
Indirect taxes (paid) received in respect of investing activities |
(3) |
2 |
|
Net cash outflow from investing activities |
(202) |
(547) |
|
|
|
|
|
|
|
|
|
Cash flows from financing activities |
|
||
Issue of ordinary shares |
493 |
- |
|
Dividends paid |
16 |
(203) |
(212) |
Closeout of interest rate derivatives |
4 |
- |
|
Movement in other financial liabilities |
2 |
(4) |
|
Disposal of liquid investments |
15 |
210 |
- |
Decrease in bank and other borrowings |
(889) |
(406) |
|
Drawdowns on bank and other borrowings |
- |
1,040 |
|
Proceeds on convertible bond issue |
393 |
- |
|
Net cash inflow from financing activities |
10 |
418 |
|
|
|
|
|
|
|
|
|
Net (decrease) increase in cash and cash equivalents |
(2) |
77 |
|
Cash and cash equivalents at 1 April |
137 |
60 |
|
Cash and cash equivalents at 31 March |
135 |
137 |
|
|
|
|
|
|
|
|
|
Cash and cash equivalents consists of: |
|
||
Cash and short-term deposits |
15 |
135 |
137 |
|
|
|
|
Consolidated Statement of Changes in Equity |
|
|
|
|
|
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for the year ended 31 March 2013 |
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||||||||||
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|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Hedging and |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Share |
|
Share |
|
translation |
|
Revaluation |
|
Merger |
|
Retained |
|
|
|
|
|
|
|
|
capital |
* |
premium |
|
reserve |
* |
reserve |
* |
reserve |
* |
earnings |
|
Total |
|
|
|
|
|
|
£m |
|
£m |
|
£m |
** |
£m |
|
|
|
£m |
|
£m |
Balance at 1 April 2012 |
|
225 |
|
1,237 |
|
(72) |
|
(92) |
|
- |
|
3,806 |
|
5,104 |
||||
Profit for the year after taxation |
- |
|
- |
|
- |
|
- |
|
- |
|
284 |
|
284 |
|||||
Losses on cash flow hedges |
- |
|
- |
|
(16) |
|
- |
|
- |
|
- |
|
(16) |
|||||
Joint ventures and funds revaluations |
- |
|
- |
|
- |
|
(6) |
|
- |
|
- |
|
(6) |
|||||
Reclassification of losses on cash flow hedges |
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
- foreign currency derivatives |
- |
|
- |
|
(5) |
|
- |
|
- |
|
- |
|
(5) |
|||||
- interest rate derivatives |
- |
|
- |
|
26 |
|
- |
|
- |
|
- |
|
26 |
|||||
Exchange differences on translation of foreign operations |
- |
|
- |
|
(4) |
|
6 |
|
- |
|
- |
|
2 |
|||||
Net actuarial loss on pension schemes |
- |
|
- |
|
- |
|
- |
|
- |
|
(2) |
|
(2) |
|||||
Other comprehensive income (loss) |
- |
|
- |
|
1 |
|
- |
|
- |
|
(2) |
|
(1) |
|||||
Total comprehensive income for the year |
- |
|
- |
|
1 |
|
- |
|
- |
|
282 |
|
283 |
|||||
Share issues |
24 |
|
5 |
|
- |
|
- |
|
464 |
|
- |
|
493 |
|||||
Adjustment for share and share option awards |
- |
|
- |
|
- |
|
- |
|
- |
|
9 |
|
9 |
|||||
Dividends payable in year (26.3p per share) |
- |
|
- |
|
- |
|
- |
|
- |
|
(234) |
|
(234) |
|||||
Transfer |
|
|
|
|
|
- |
|
- |
|
- |
|
- |
|
(251) |
|
251 |
|
- |
Adjustment for scrip dividend element |
- |
|
- |
|
- |
|
- |
|
- |
|
32 |
|
32 |
|||||
Balance at 31 March 2013 |
|
249 |
|
1,242 |
|
(71) |
|
(92) |
|
213 |
|
4,146 |
|
5,687 |
||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance at 1 April 2011 |
|
224 |
|
1,237 |
|
(34) |
|
(34) |
|
- |
|
3,537 |
|
4,930 |
||||
Profit for the year after taxation |
- |
|
- |
|
- |
|
- |
|
- |
|
480 |
|
480 |
|||||
Losses on cash flow hedges |
- |
|
- |
|
(65) |
|
- |
|
- |
|
- |
|
(65) |
|||||
Joint ventures and funds revaluations |
- |
|
- |
|
- |
|
(50) |
|
- |
|
- |
|
(50) |
|||||
Reclassification of losses on cash flow hedges |
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
- interest rate derivatives |
- |
|
- |
|
18 |
|
- |
|
- |
|
- |
|
18 |
|||||
Exchange differences on translation of foreign operations |
- |
|
- |
|
9 |
|
(8) |
|
- |
|
- |
|
1 |
|||||
Net actuarial loss on pension schemes |
- |
|
- |
|
- |
|
- |
|
- |
|
(3) |
|
(3) |
|||||
Other comprehensive loss |
- |
|
- |
|
(38) |
|
(58) |
|
- |
|
(3) |
|
(99) |
|||||
Total comprehensive (loss) income for the year |
- |
|
- |
|
(38) |
|
(58) |
|
- |
|
477 |
|
381 |
|||||
Share issues |
1 |
|
- |
|
- |
|
- |
|
- |
|
- |
|
1 |
|||||
Adjustment for share and share option awards |
- |
|
- |
|
- |
|
- |
|
- |
|
5 |
|
5 |
|||||
Dividends payable in year (26.0p per share) |
- |
|
- |
|
- |
|
- |
|
- |
|
(231) |
|
(231) |
|||||
Adjustment for scrip dividend element |
- |
|
- |
|
- |
|
- |
|
- |
|
18 |
|
18 |
|||||
Balance at 31 March 2012 |
|
225 |
|
1,237 |
|
(72) |
|
(92) |
|
- |
|
3,806 |
|
5,104 |
||||
* refer to note 18. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
** The balance at 1 April 2012 includes £11m relating to foreign exchange and (£83m) relating to hedging. |
Notes to the accounts |
|||||||||||||||
for the year ended 31 March 2013 |
|||||||||||||||
|
|||||||||||||||
1. Basis of preparation |
|||||||||||||||
|
|||||||||||||||
The financial information set out above does not constitute the Company's statutory accounts for the years ended 31 March 2013 or 2012, but is derived from those accounts. Statutory accounts for 2012 have been delivered to the Registrar of Companies and those for 2013 will be delivered following the Company's annual general meeting. The auditor has reported on those accounts; their reports were unqualified, did not draw attention to any matters by way of emphasis and did not contain statements under s498(2) or (3) of Companies Act 2006 or equivalent preceding legislation. |
|||||||||||||||
|
|||||||||||||||
The financial statements for the year ended 31 March 2013 have been prepared on the historical cost basis, except for the revaluation of properties, investments and derivatives. The financial statements have also been prepared in accordance with International Financial Reporting Standards (IFRSs) as adopted by the European Union and therefore comply with Article 4 of the EU IAS Regulation. |
|||||||||||||||
|
|||||||||||||||
While the financial information included in this preliminary announcement has been prepared in accordance with the recognition and measurement criteria of IFRSs, this announcement does not itself contain sufficient information to comply with IFRSs. The Company expects to publish full financial statements that comply with IFRSs in June 2013. |
|||||||||||||||
|
|||||||||||||||
The accounting policies used are consistent with those contained in the Group's last annual report and accounts for the year ended 31 March 2012. Standards and interpretations issued but not effective for the current accounting period were: IFRS 9 - Financial Instruments; IFRS 10 - Consolidated Financial Statements; IFRS 11 - Joint Arrangements; IFRS 12 - Disclosure of Interests in Other Entities; IFRS 13 - Fair Value Measurement; IAS 1 (amended) - Presentation of Items of Other Comprehensive Income; IAS 12 (amended) - Deferred Tax: recovery of assets; IAS 19 (revised) - Employee Benefits; IAS 27 (revised) - Separate Financial Statements; IAS 28 (revised) - Investments in Associates and Joint Ventures and IAS 32 (amended) - Financial Instruments: Presentation. |
|||||||||||||||
|
|||||||||||||||
The balance sheet has been re-presented to show interest rate derivative assets, interest rate derivative liabilities and corporation tax creditor on the face of the balance sheet, in accordance with IAS 1. Comparatives on the balance sheet and in the notes to the accounts have been re-presented accordingly. The tax withheld on dividends, previously disclosed within corporation tax creditors, has been re-presented in other taxation and social security. |
|||||||||||||||
|
|||||||||||||||
The Directors do not expect that the adoption of the standards listed above will have a material impact on the financial statements of the Group in future periods except as follows: IFRS 9 will impact both the measurement and disclosures of financial instruments; IFRS 12 will impact the disclosure of interests the Group has in other entities; IFRS 13 will impact the disclosure of fair value measurements and IAS 19 (revised) will impact the measurement of the various components representing movements in the defined benefit pension obligation. |
|||||||||||||||
|
|||||||||||||||
The financial statements have been prepared on the going concern basis as stated in the directors' responsibility statement. |
|||||||||||||||
|
|||||||||||||||
2. Performance measures |
|
|
|
|
|
|
|
|
|||||||
|
|
|
|
|
|
|
|
|
|
|
|||||
|
|
|
|
|
|
|
|||||||||
|
|
|
2013 |
|
2012 |
|
|||||||||
Earnings per share (diluted) |
Earnings |
|
Pence |
|
Earnings |
|
Pence |
|
|||||||
|
|
|
£m |
|
|
£m |
|
|
|||||||
|
|
|
|
|
|
|
|
|
|
|
|||||
Underlying pre-tax profit - income statement |
274 |
|
|
|
269 |
|
|
|
|||||||
Tax charge relating to underlying profit |
(1) |
|
|
|
(4) |
|
|
|
|||||||
|
|
|
|
|
|
|
|
|
|
|
|||||
Underlying earnings |
273 |
|
30.3 |
p |
265 |
|
29.7 |
p |
|||||||
|
|
|
|
|
|
|
|
|
|
|
|||||
Mark-to-market on / profit on disposal of liquid investments (held for trading assets) |
9 |
|
|
|
(3) |
|
|
|
|||||||
Mark-to-market on convertible bond |
(7) |
|
|
|
- |
|
|
|
|||||||
Non-recurring items* |
|
(7) |
|
|
|
- |
|
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|||||
EPRA earnings |
268 |
|
29.7 |
p |
262 |
|
29.4 |
p |
|||||||
|
|
|
|
|
|
|
|
|
|
|
|||||
Profit for the year after taxation |
284 |
|
31.5 |
p |
480 |
|
53.8 |
p |
|||||||
|
|
|
|
|
|
|
|
|
|
|
|||||
*Non-recurring items for the year ended 31 March 2013 relate to £7m of issue costs for the convertible bond. |
|||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||
The European Public Real Estate Association (EPRA) issued Best Practices Recommendations most recently in September 2011 and additional guidance in January 2013, which gives guidelines for performance measures. Comparatives have been re-presented in line with the additional guidance. The EPRA earnings measure excludes investment property revaluations and gains or losses on disposals, intangible asset movements and their related taxation. A summary of the EPRA Performance Measures is provided in table B within the Supplementary Disclosures. |
|||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||
Underlying earnings consists of the EPRA earnings measure, with additional company adjustments. Adjustments include mark-to-market adjustments on, or profits on disposal of, held for trading assets, mark-to-market adjustments on the convertible bond and issue costs of the convertible bond. |
|||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||
The weighted average number of shares in issue for the year was: basic: 895m (2012: 887m); diluted for the effect of share options: 901m (2012: 892m). Basic undiluted earnings per share for the year, calculated using profit for the year after taxation of £284m (2012: £480m), was 31.7p (2012: 54.1p). Earnings per share shown in the table above are diluted. |
|||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||
|
|
|
|
|
|
|
|
|
|
|
|||||
|
|
|
|
|
|
|
31 March |
|
31 March |
|
|||||
Net asset value (NAV) (diluted) |
|
|
|
|
2013 |
|
2012 |
|
|||||||
|
|
|
|
|
|
|
£m |
|
£m |
|
|||||
|
|
|
|
|
|
|
|
|
|
|
|||||
Balance sheet net assets |
|
|
|
|
5,687 |
|
5,104 |
|
|||||||
|
|
|
|
|
|
|
|
|
|
|
|||||
Deferred tax arising on revaluation movements |
|
|
14 |
|
31 |
|
|||||||||
Mark-to-market on effective cash flow hedges and related debt adjustments |
|
|
|
198 |
|
189 |
|
||||||||
Surplus on trading properties |
|
|
|
|
10 |
|
- |
|
|||||||
Dilution effect of share options |
|
|
|
|
58 |
|
57 |
|
|||||||
|
|
|
|
|
|
|
|
|
|
|
|||||
EPRA NAV |
|
|
|
|
|
5,967 |
|
5,381 |
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|||||
EPRA NAV per share |
|
|
|
|
596 |
p |
595 |
p |
|||||||
|
|
|
|
|
|
|
|
|
|
|
|||||
|
|
|
|
|
|
|
|
|
|
|
|||||
The EPRA NAV per share excludes the mark-to-market on effective cash flow hedges and related debt adjustments, deferred taxation on revaluations and is calculated on a fully diluted basis. |
|||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||
At 31 March 2013, the number of shares in issue was: basic: 986m (2012: 888m); diluted for the effect of share options: 1,001m (2012: 904m). |
|||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||
Total accounting return per share for the year ended 31 March 2013 of 4.6% includes dividends paid of 26.4p (see note 16) in addition to the increase in EPRA NAV of 1p. Total accounting return per share for the year ended 31 March 2012 was 9.5%. |
|||||||||||||||
3. Gross and net rental and related income |
|
|
|
||||||||||||
|
|
2013 |
2012 |
|
|
||||||||||
|
|
£m |
£m |
|
|
||||||||||
|
|
|
|
|
|
||||||||||
Rent receivable |
|
269 |
259 |
|
|
||||||||||
Spreading of tenant incentives and guaranteed rent increases |
24 |
41 |
|
|
|||||||||||
Surrender premia |
|
1 |
- |
|
|
||||||||||
|
|
|
|
|
|
||||||||||
Gross rental income |
|
294 |
300 |
|
|
||||||||||
|
|
|
|
|
|
||||||||||
Service charge income |
|
35 |
32 |
|
|
||||||||||
|
|
|
|
|
|
||||||||||
Gross rental and related income |
|
329 |
332 |
|
|
||||||||||
|
|
|
|
|
|
||||||||||
Service charge expenses |
|
(35) |
(32) |
|
|
||||||||||
Property operating expenses |
|
(13) |
(14) |
|
|
||||||||||
|
|
|
|
|
|
||||||||||
Net rental and related income |
|
281 |
286 |
|
|
||||||||||
|
|
|
|
|
|
||||||||||
The cash element of net rental income recognised during the year ended 31 March 2013 from properties which were not subject to a security interest was £159m (2012: £126m). Property operating expenses relating to investment properties that did not generate any rental income were £1m (2012: £1m). Contingent rents of £1m (2012: £1m) were recognised in the year. |
|
|
|||||||||||||
|
|
||||||||||||||
|
|
||||||||||||||
|
|
||||||||||||||
|
|
|
|
|
|
||||||||||
|
|
|
|
|
|
||||||||||
4. Fees and other income |
|
|
|
|
|
||||||||||
|
|
2013 |
2012 |
|
|
||||||||||
|
|
£m |
£m |
|
|
||||||||||
|
|
|
|
|
|
||||||||||
Performance and management fees (from joint ventures and funds) |
10 |
12 |
|
|
|||||||||||
Other fees and commissions |
|
5 |
4 |
|
|
||||||||||
|
|
|
|
|
|
||||||||||
Fees and other income |
|
15 |
16 |
|
|
||||||||||
|
|
|
|
|
|
||||||||||
|
|
|
|
|
|
||||||||||
5. Net revaluation gains on property and investments |
|
|
|
||||||||||||
|
|
2013 |
2012 |
|
|
||||||||||
|
|
£m |
£m |
|
|
||||||||||
Consolidated income statement |
|
|
|
|
|
||||||||||
Revaluation of properties |
|
71 |
143 |
|
|
||||||||||
Result on property and investment disposals |
8 |
3 |
|
|
|||||||||||
Revaluation of investments |
|
9 |
(3) |
|
|
||||||||||
|
|
|
|
|
|
||||||||||
|
|
88 |
143 |
|
|
||||||||||
Share of valuation movements of joint ventures and funds |
(62) |
72 |
|
|
|||||||||||
|
|
|
|
|
|
||||||||||
Net revaluation gains on property and investments |
26 |
215 |
|
|
|||||||||||
|
|
|
|
|
|
||||||||||
|
|
|
|
|
|
||||||||||
|
6. Net financing costs |
|
|
|
2013 |
2012 |
|
£m |
£m |
Interest payable on: |
|
|
Bank loans and overdrafts |
37 |
27 |
Other loans |
75 |
76 |
Obligations under finance leases |
1 |
1 |
|
|
|
|
113 |
104 |
Development interest capitalised |
(17) |
(8) |
|
|
|
|
96 |
96 |
Interest receivable on: |
|
|
Deposits, securities and liquid investments |
(11) |
(17) |
Loans to joint ventures |
(3) |
- |
|
|
|
|
(14) |
(17) |
|
|
|
Other finance (income) costs: |
|
|
|
|
|
Expected return on pension scheme assets |
(7) |
(7) |
Interest on pension scheme liabilities |
5 |
5 |
Valuation movements on translation of foreign currency debt |
5 |
- |
Hedging reserve recycling |
(5) |
- |
|
|
|
Net financing expenses - underlying |
80 |
77 |
|
|
|
Capital and other: |
|
|
Valuation movements on fair value debt |
18 |
66 |
Valuation movements on fair value derivatives |
(14) |
(68) |
Net capital movement on convertible bond |
14 |
- |
Recycling of fair value movement on close-out of derivatives |
20 |
- |
Valuation movement on translation of foreign currency net assets |
(2) |
- |
Fair value movement on non-hedge accounted derivatives |
3 |
4 |
|
|
|
Net financing costs - capital |
39 |
2 |
|
|
|
Net financing costs |
119 |
79 |
|
|
|
Total financing income |
(23) |
(26) |
Total financing charges |
142 |
105 |
|
|
|
Net financing costs |
119 |
79 |
|
|
|
|
|
|
Interest on development expenditure is capitalised at a rate of 4.00% (2012: 4.48%). |
||
|
|
|
7. Taxation |
|
|
|
|
|
|
|
|
2013 |
2012 |
|
|
|
|
£m |
£m |
|
Tax (income) expense |
|
|
|
|
|
|
|
|
|
|
|
Current tax: |
|
UK corporation tax: 24% (2012: 26%) |
1 |
2 |
|
|
|
|
|
|
|
|
|
|
1 |
2 |
|
Adjustments in respect of prior periods |
|
(9) |
- |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total current tax expense (income) |
|
(8) |
2 |
|
|
Deferred tax on revaluations |
|
(16) |
(3) |
|
|
|
|
|
|
|
|
Group total taxation (net) |
|
(24) |
(1) |
|
|
|
|
|
|
|
|
Attributable to joint ventures and funds |
|
(3) |
- |
|
|
|
|
|
|
|
|
Total taxation income |
|
|
(27) |
(1) |
|
|
|
|
|
|
|
Tax reconciliation |
|
|
|
|
|
Profit on ordinary activities before taxation |
|
257 |
479 |
|
|
Less: profit attributable to joint ventures and funds* |
(64) |
(182) |
|
||
|
|
|
|
|
|
Group profit on ordinary activities before taxation |
193 |
297 |
|
||
|
|
|
|
|
|
Tax on profit on ordinary activities at UK corporation |
|
|
46 |
77 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Effects of: |
|
|
|
|
|
|
REIT exempt income and gains |
(41) |
(70) |
|
|
|
Tax losses |
|
(6) |
(8) |
|
|
Adjustments in respect |
|
(23) |
- |
|
|
|
|
|
|
|
Group total taxation income |
|
(24) |
(1) |
|
|
|
|
|
|
|
|
*A current tax credit of £2m (2012: charge of £1m) and a deferred tax credit of £1m (2012: credit of £1m) arose on profits attributable to joint ventures and funds. The low charges reflect the Group's REIT status. |
|
||||
|
|
|
|
|
|
Tax expense attributable to underlying profits for the year ended 31 March 2013 was £1m (2012: £4m). The underlying tax rate for the year ended 31 March 2013 was 0.5% (2012: 1.5%). |
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
Corporation tax payable at 31 March 2013 was £17m (2012: £23m) as shown on the balance sheet. |
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
8. Property |
|
|
|
|
|
|
|
||
|
|
|
|
|
|
|
|
|
|
|
Property reconciliation 12 months to 31 March 2013 |
Investment & |
Trading |
Owner- |
|
||||
|
|
|
|
|
Development |
Properties |
occupied |
Total |
|
|
|
|
|
|
£m |
£m |
£m |
£m |
|
|
|
|
|
|
|
|
|
|
|
Carrying value at 1 April 2012 |
|
5,346 |
47 |
41 |
5,434 |
||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Additions: |
- property purchases |
453 |
- |
- |
453 |
||||
|
|
- development expenditure |
201 |
5 |
- |
206 |
|||
|
|
- capitalised interest |
15 |
1 |
- |
16 |
|||
|
|
- capital expenditure on asset management initiatives |
|
- |
- |
|
|||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
697 |
6 |
- |
703 |
|
|
|
|
|
|
|
|
|
|
|
Depreciation |
|
|
|
- |
- |
(1) |
(1) |
||
Disposals |
|
|
|
(651) |
(13) |
- |
(664) |
||
Revaluations included in income statement |
72 |
- |
2 |
74 |
|||||
Movement in tenant incentives and contracted rent uplift balances |
|
- |
- |
|
|||||
|
|
|
|
|
|
|
|
|
|
Carrying value at 31 March 2013 |
|
5,488 |
40 |
42 |
5,570 |
||||
|
|
|
|
|
|
|
|
|
|
Head lease liabilities (note 13) |
|
|
|
|
(26) |
||||
Surplus on trading properties |
|
|
|
|
10 |
||||
|
|
|
|
|
|
|
|
|
|
Total Group property portfolio valuation at 31 March 2013 |
|
|
5,554 |
||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
At 31 March 2013, the Group book value of properties of £5,554m (2012: £5,414m) comprises freeholds of £3,502m (2012: £4,034m); virtual freeholds of £709m (2012: £107m); and long leaseholds of £1,343m (2012: £1,273m). The historical cost of properties was £4,229m (2012: £4,264m). |
|||||||||
|
|
|
|
|
|
|
|
|
|
The property valuation does not include any investment properties held under operating leases (2012: £nil). |
|||||||||
|
|
|
|
|
|
|
|
|
|
Properties valued at £1,724m (2012: £1,827m) were subject to a security interest and other properties of non-recourse companies amounted to £40m (2012: £49m). |
|||||||||
|
|
|
|
|
|
|
|
|
|
Included within the property valuation is £91m (2012: £86m) in respect of accrued contracted rental uplift income, against which the Group holds a provision of £5m (2012: £5m). The balance arises through the IFRS treatment of leases containing such arrangements which requires the recognition of rental income on a straight line basis over the lease term, with the difference between this and the cash receipt changing the carrying value of the property against which revaluations are measured. |
|||||||||
|
|
|
|
|
|
|
|
|
|
Cumulative interest capitalised against investment properties amounts to £56m (2012: £78m). |
|||||||||
|
|
|
|
|
|
|
|
|
|
Included in investment properties are £904m of properties which are in the course of development (2012: £444m). |
|||||||||
|
|
|
|
|
|
|
|
|
|
The Group's total property portfolio was valued by external valuers on the basis of fair value, in accordance with the RICS Valuation - Professional Standards 2012, eighth edition, published by The Royal Institution of Chartered Surveyors. |
|||||||||
Copies of the valuation certificates of Knight Frank LLP and CBRE can be found on the website at: www.britishland.com/investors/operational-performance.aspx |
|||||||||
|
|
|
|
|
|
|
|
|
|
A breakdown of valuations split between the Group and its share of joint ventures and funds is shown below: |
|||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
2013 |
2012 |
|||||
|
|
|
Group |
Joint Ventures |
Total |
Group |
Joint |
Total |
|
|
|
|
£m |
£m |
£m |
£m |
£m |
£m |
|
|
|
|
|
|
|
|
|
|
|
Knight Frank LLP |
|
5,084 |
2,680 |
7,764 |
5,133 |
2,577 |
7,710 |
||
CBRE |
|
470 |
2,265 |
2,735 |
281 |
2,346 |
2,627 |
||
|
|
|
5,554 |
4,945 |
10,499 |
5,414 |
4,923 |
10,337 |
|
|
|
|
|
|
|
|
|
|
9. Joint ventures and funds |
|
|
|
|
|
|||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Summary movement for the year of the investments in joint ventures and funds |
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
Joint Ventures |
Funds |
Total |
Equity |
Loans |
Total |
|
|
|
£m |
£m |
£m |
£m |
£m |
£m |
|
|
|
|
|
|
|
|
|
|
At 1 April 2012 |
1,687 |
504 |
2,191 |
1,992 |
199 |
2,191 |
||
Additions |
315 |
70 |
385 |
139 |
246 |
385 |
||
Disposals |
(65) |
(35) |
(100) |
(65) |
(35) |
(100) |
||
Share of profit after taxation |
128 |
(61) |
67 |
67 |
- |
67 |
||
Distributions and dividends: |
Capital |
(72) |
- |
(72) |
(72) |
- |
(72) |
|
|
Revenue |
(110) |
(24) |
(134) |
(134) |
- |
(134) |
|
Hedging and exchange movements |
3 |
(4) |
(1) |
(1) |
- |
(1) |
||
|
|
|
|
|
|
|
|
|
At 31 March 2013 |
1,886 |
450 |
2,336 |
1,926 |
410 |
2,336 |
||
|
|
|
|
|
|
|
|
|
PREF, a fund owning a portfolio of retail property in Europe (in which British Land has a net investment of £82m) is externally valued by CBRE. CBRE have included market uncertainty clauses in the valuation reports of the Spanish, Italian and Portuguese properties due to the lack of transactional evidence and uncertainty over the economic situation in these markets. In the 2014 calendar year PREF has €89m of bank loans that are due to mature, discussions are on-going with the existing lenders in relation to loan extensions and other alternatives are being explored. |
||||||||
|
|
|
|
|
|
|
|
|
At 31 March 2013 the investment in joint ventures included within the total investment in joint ventures and funds was £1,889m (2012: £1,690m). |
||||||||
|
|
|
|
|
|
|
|
|
Distributions in the year include the receipt of £24m from the Broadgate joint venture, £63m from the Meadowhall joint venture, £23m from the Sainsbury joint venture, £36m from Tesco joint ventures, £17m from HUT, £5m from PREF and £9m from Auchinlea. Of the total distributions made in the year £146m were settled in cash and £60m were settled via the transfer of other assets. |
||||||||
|
|
|
|
|
|
|
|
|
At 31 March 2013, the valuation of the Group's share of joint ventures and funds properties was £4,945m (2012: £4,923m); external net debt was £2,427m (2012: £2,576m) and the mark-to-market adjustment for external debt was £193m liability (2012: £5m asset). |
||||||||
|
|
|
|
|
|
|
|
9. Joint ventures and funds (continued): Joint ventures' summary financial statements |
|
|
|
|
||||
|
|
|
|
|
|
|
|
|
A detailed breakdown of the 100% results of specific joint ventures and funds is set out on the two following pages. The total column represents the Group's share of all joint ventures and funds. All disclosures have been restated to British Land accounting policies under IFRS eliminating all profits and losses resulting from upstream and downstream transactions with the Group. |
||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Bluebutton |
MSC Property |
BL Sainsbury |
Tesco Joint |
|
USS |
Leadenhall |
|
|
|
|
|
|
|
|
|
|
Partners |
Blackstone |
Norges Bank Investment |
J Sainsbury plc |
Tesco PLC |
|
Universities Superannuation Scheme |
Oxford |
|
|
|
|
|
|
|
|
|
|
Property sector |
City Offices |
Shopping Centres |
Superstores |
Superstores |
|
Shopping Centres |
City Offices |
|
|
Broadgate |
Meadowhall |
|
|
|
|
Leadenhall |
|
Group share |
50% |
50% |
50% |
50% |
|
50% |
50% |
|
|
|
|
|
|
|
|
|
|
Date established |
November 2009 |
February 2009 |
March 2008 |
November 1996 |
|
May 2007 |
Dec 2010 |
|
|
|
|
|
|
|
|
|
|
Accounting period |
31 March |
31 March |
31 March |
31 March |
|
31 March |
31 March |
|
|
2013 |
2013 |
2013 |
2013 |
|
2013 |
2013 |
|
Summarised income statements |
£m |
£m |
£m |
£m |
|
£m |
£m |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross rental and related income |
198 |
93 |
65 |
106 |
|
4 |
- |
|
|
|
|
|
|
|
|
|
|
Net rental and related income |
160 |
77 |
65 |
100 |
|
3 |
- |
|
Other income and expenditure |
(1) |
(8) |
(1) |
(2) |
|
- |
- |
|
Net interest payable (receivable) |
(95) |
(51) |
(31) |
(58) |
|
- |
- |
|
|
|
|
|
|
|
|
|
|
Underlying profit before taxation |
64 |
18 |
33 |
40 |
|
3 |
- |
|
Surplus (deficit) on revaluation |
53 |
24 |
(18) |
(11) |
|
18 |
5 |
|
Disposal of fixed assets |
- |
- |
(1) |
(1) |
|
- |
- |
|
Non-recurring items |
- |
1 |
- |
(2) |
|
(2) |
- |
|
|
|
|
|
|
|
|
|
|
Profit (loss) on ordinary activities before taxation |
117 |
43 |
14 |
26 |
|
19 |
5 |
|
Current tax |
- |
- |
- |
- |
|
- |
- |
|
Deferred tax |
- |
- |
- |
- |
|
- |
- |
|
|
|
|
|
|
|
|
|
|
Profit (loss) on ordinary activities after taxation |
117 |
43 |
14 |
26 |
|
19 |
5 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Summarised balance sheets |
£m |
£m |
£m |
£m |
|
£m |
£m |
|
|
|
|
|
|
|
|
|
|
Investment properties |
3,042 |
1,530 |
1,203 |
1,700 |
|
164 |
318 |
|
Current assets |
22 |
2 |
1 |
1 |
|
- |
5 |
|
Upstream loans to joint venture shareholders |
- |
- |
- |
- |
|
- |
- |
|
Cash and deposits |
266 |
38 |
21 |
33 |
|
6 |
1 |
|
Gross assets |
3,330 |
1,570 |
1,225 |
1,734 |
|
170 |
324 |
|
|
|
|
|
|
|
|
|
|
Current liabilities |
(238) |
(43) |
(35) |
(174) |
|
(3) |
(12) |
|
Bank debt falling due within one year |
(185) |
- |
- |
- |
|
- |
- |
|
Bank debt falling due after one year |
(52) |
- |
- |
(1,007) |
|
- |
- |
|
Securitised debt |
(1,809) |
(766) |
(609) |
- |
|
- |
- |
|
Other non-current liabilities |
- |
- |
- |
- |
|
- |
- |
|
Obligations under finance leases |
- |
(5) |
- |
- |
|
- |
- |
|
Deferred tax |
- |
- |
- |
- |
|
- |
- |
|
Gross liabilities |
(2,284) |
(814) |
(644) |
(1,181) |
|
(3) |
(12) |
|
|
|
|
|
|
|
|
|
|
Net external assets |
1,046 |
756 |
581 |
553 |
|
167 |
312 |
|
|
|
|
|
|
|
|
|
|
Represented by: |
|
|
|
|
|
|
||
Shareholder loans |
15 |
204 |
15 |
95 |
|
12 |
259 |
|
Ordinary shareholders' funds/partners' capital |
1,031 |
552 |
566 |
458 |
|
155 |
53 |
|
Total investment |
1,046 |
756 |
581 |
553 |
|
167 |
312 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
*Tesco joint ventures include BLT Holdings (2010) Limited, the Tesco British Land Property Partnership, Tesco BL Holdings Limited, Shopping Centres Limited and the Tesco Aqua Limited Partnership. |
||||||||
** USS joint ventures include the Eden Walk Shopping Centre Unit Trust and the Fareham Property Partnership. |
||||||||
|
|
|
|
|
|
|
|
9. Joint ventures and funds (continued): joint ventures' and funds' summary financial statements |
|
|
|
|||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
A detailed breakdown of the 100% results of specific joint ventures and funds is set out on the current and previous page. The total column represents the Group's share of all joint ventures and funds. All disclosures have been restated to British Land accounting policies under IFRS eliminating all profits and losses resulting from upstream and downstream transactions with the Group. |
|
|
|
|||||||||||||||
|
|
|
||||||||||||||||
|
|
|
||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Joint Ventures and Funds |
|
Joint Ventures and Funds |
|
|
|
|
|
|
|
|
|
Hercules |
|
|
Pillar Retail |
|
Other |
|
TOTAL |
|
TOTAL |
|
|
|
|
|
|
|
|
|
Unit |
|
|
Europark |
|
joint ventures |
|
Group share |
|
Group share |
|
|
|
|
|
|
|
|
|
Trust |
|
|
Fund |
+ |
and funds |
+* |
2013 |
|
2012 |
|
|
|
Partners |
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Property sector |
|
|
|
|
Retail |
|
|
Retail |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Parks |
|
|
Parks |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Group share |
|
|
|
|
|
41.24% |
|
|
65.30% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Date established |
|
|
|
|
September 2000 |
|
|
March 2004 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Accounting period |
|
|
|
|
31 March |
|
|
31 March |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2013 |
|
|
2013 |
|
|
|
|
|
|
|
|
|
Summarised income statements |
£m |
|
|
£m |
|
£m |
|
£m |
|
£m |
|
|
|
|||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross rental and related income |
|
95 |
|
|
28 |
|
16 |
|
306 |
|
298 |
|
|
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net rental and related income |
|
|
85 |
|
|
19 |
|
10 |
|
260 |
|
260 |
|
|
|
|||
Other income and expenditure |
|
(3) |
|
|
(1) |
|
4 |
|
(4) |
|
(6) |
|
|
|
||||
Net interest payable (receivable) |
|
(28) |
|
|
(7) |
|
8 |
|
(126) |
|
(141) |
|
|
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Underlying profit before taxation |
|
54 |
|
|
11 |
|
22 |
|
130 |
|
113 |
|
|
|
||||
Surplus (deficit) on revaluation |
|
|
(83) |
|
|
(91) |
|
(3) |
|
(61) |
|
71 |
|
|
|
|||
Disposal of fixed assets |
|
|
|
- |
|
|
- |
|
- |
|
(1) |
|
1 |
|
|
|
||
Non-recurring items |
|
|
|
(4) |
|
|
- |
|
(1) |
|
(4) |
|
(3) |
|
|
|
||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Profit (loss) on ordinary activities before taxation |
|
(33) |
|
|
(80) |
|
18 |
|
64 |
|
182 |
|
|
|
||||
Current tax |
|
|
|
|
|
- |
|
|
- |
|
2 |
|
2 |
|
(1) |
|
|
|
Deferred tax |
|
|
|
|
|
- |
|
|
3 |
|
(1) |
|
1 |
|
1 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Profit (loss) on ordinary activities after taxation |
|
(33) |
|
|
(77) |
|
19 |
|
67 |
|
182 |
|
|
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Summarised balance sheets |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Investment properties |
|
|
|
1,496 |
|
|
204 |
|
220 |
|
4,949 |
|
4,931 |
|
|
|
||
Current assets |
|
|
|
|
5 |
|
|
36 |
|
21 |
|
62 |
|
67 |
|
|
|
|
Upstream loans to joint venture shareholders |
|
- |
|
|
- |
|
4 |
|
4 |
|
14 |
|
|
|
||||
Cash and deposits |
|
|
|
|
38 |
|
|
15 |
|
7 |
|
215 |
|
146 |
|
|
|
|
Gross assets |
|
|
|
|
|
1,539 |
|
|
255 |
|
252 |
|
5,230 |
|
5,158 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Current liabilities |
|
|
|
|
(36) |
|
|
(55) |
|
(37) |
|
(340) |
|
(303) |
|
|
|
|
Bank debt falling due within one year |
- |
|
|
(51) |
|
(1) |
|
(127) |
|
(63) |
|
|
|
|||||
Bank debt falling due after one year |
|
(619) |
|
|
(24) |
|
(28) |
|
(828) |
|
(702) |
|
|
|
||||
Securitised debt |
|
|
|
|
- |
|
|
- |
|
- |
|
(1,592) |
|
(1,842) |
|
|
|
|
Other non-current liabilities |
|
|
- |
|
|
- |
|
- |
|
- |
|
(45) |
|
|
|
|||
Obligations under finance leases |
|
- |
|
|
- |
|
(2) |
|
(5) |
|
(9) |
|
|
|
||||
Deferred tax |
|
|
|
|
|
- |
|
|
- |
|
(2) |
|
(2) |
|
(3) |
|
|
|
Gross liabilities |
|
|
|
|
(655) |
|
|
(130) |
|
(70) |
|
2,894 |
|
(2,967) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net external assets |
|
|
|
884 |
|
|
125 |
|
182 |
|
2,336 |
|
2,191 |
|
|
|
||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Represented by: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Shareholder loans |
|
|
|
|
- |
|
|
62 |
|
135 |
|
477 |
|
266 |
|
|
|
|
Ordinary shareholders' funds/partners' capital |
|
884 |
|
|
63 |
|
47 |
|
1,859 |
|
1,925 |
|
|
|
||||
Total investment |
|
|
|
|
884 |
|
|
125 |
|
182 |
|
2,336 |
|
2,191 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
+Although the Group's ownership share is 65.30%, it does not exercise control over significant decisions. The Group therefore equity accounts for its interest in Pillar Retail Europark Fund (PREF). |
|
|
|
|||||||||||||||
|
|
|
||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
+*Included in the column headed 'Other joint ventures and funds' are contributions from the following: the BL Goodman Limited Partnership, the Scottish Retail Property Limited Partnership, BL Gazeley Limited, BL Canada Quays Limited, Eurofund Investments Zaragoza S.L., Hercules Income Fund (HIF), the City of London Office Unit Trust (CLOUT), Auchinlea Partnership and Group consolidation adjustments. Amounts are included in this column at the relevant percentage for the Group's interest. |
|
|
|
|||||||||||||||
|
|
|
||||||||||||||||
|
|
|
||||||||||||||||
|
|
|
||||||||||||||||
|
|
|
|
|||||||||||||||
The borrowings of joint ventures and funds and their subsidiaries are non-recourse to the Group. All joint ventures are incorporated in the United Kingdom, with the exception of Bluebutton Properties Limited, the Eden Walk Shopping Centre Unit Trust, Leadenhall Holding Co (Jersey) Limited and the Scottish Retail Property Limited Partnership which are domiciled in Jersey and Eurofund Investments Zaragoza S.L. which is domiciled in Spain. Of the funds, Hercules Unit Trust (HUT) and Hercules Income Fund (HIF) are domiciled in Jersey and PREF in Luxembourg. |
|
|
|
|||||||||||||||
|
|
|
||||||||||||||||
|
|
|
||||||||||||||||
|
|
|
9. Joint ventures and funds (continued) |
|
||||||||||||
|
|
|
|
||||||||||
Operating cash flows of joint ventures and funds (Group share) |
|
||||||||||||
|
2013 |
2012 |
|
||||||||||
|
£m |
£m |
|
||||||||||
|
|
|
|
||||||||||
Rental income received from tenants |
264 |
277 |
|
||||||||||
Operating expenses paid to suppliers and employees |
(22) |
(28) |
|
||||||||||
|
|
|
|
||||||||||
Cash generated from operations |
242 |
249 |
|
||||||||||
|
|
|
|
||||||||||
Interest paid |
(133) |
(144) |
|
||||||||||
UK corporation tax paid |
(7) |
(8) |
|
||||||||||
|
|
|
|
||||||||||
Cash inflow from operating activities |
102 |
97 |
|
||||||||||
|
|
|
|
||||||||||
Cash inflow from operating activities deployed as: |
|
||||||||||||
|
|
|
|
||||||||||
Surplus cash retained within joint ventures and funds |
28 |
33 |
|
||||||||||
|
|
|
|
||||||||||
Revenue distributions to British Land |
74 |
64 |
|
||||||||||
|
|
|
|
||||||||||
|
102 |
97 |
|
||||||||||
|
|
|
|
||||||||||
|
|
|
|
||||||||||
10. Other investments |
|
|
|||||||||||
|
|
£m |
|
||||||||||
|
|
|
|
||||||||||
At 1 April 2012 |
|
28 |
|
||||||||||
Additions |
|
53 |
|
||||||||||
Disposals |
|
(4) |
|
||||||||||
Depreciation |
|
(1) |
|
||||||||||
|
|
|
|
||||||||||
At 31 March 2013 |
|
76 |
|
||||||||||
|
|
|
|
||||||||||
Included within additions is £53m in relation to a loan to Bluebutton Properties Limited, a joint venture company. |
|
||||||||||||
|
|||||||||||||
|
|
|
|
||||||||||
|
|
|
|
||||||||||
11. Debtors |
|
|
|
||||||||||
|
2013 |
2012 |
|
||||||||||
|
£m |
£m |
|
||||||||||
|
|
|
|
||||||||||
Trade and other debtors+ |
15 |
29 |
|
||||||||||
Amounts owed by joint ventures |
40 |
57 |
|
||||||||||
Prepayments and accrued income |
5 |
9 |
|
||||||||||
|
|
|
|
||||||||||
Debtors |
60 |
95 |
|
||||||||||
|
|
|
|
||||||||||
+ Included within this balance is deferred consideration of £4m (2012: £4m) arising on the sale of investment properties for which the timing of the receipt is contingent and therefore may fall due after one year. |
|
||||||||||||
|
|||||||||||||
|
|
|
|
||||||||||
Comparatives have been re-presented, see note 1. |
|
||||||||||||
|
|
|
|
||||||||||
Trade and other debtors are shown after deducting a provision for bad and doubtful debts of £11m (2012: £10m). The charge to the income statement was £1m (2012: £1m). |
|
||||||||||||
|
|||||||||||||
|
|
|
|
||||||||||
The Directors consider that the carrying amount of trade and other debtors approximates to their fair value. There is no concentration of credit risk with respect to trade debtors as the Group has a large number of customers who are paying their rent in advance. |
|
||||||||||||
|
|||||||||||||
|
|||||||||||||
|
|
|
|
||||||||||
12. Creditors |
|
|
|
|
|||||||||
|
|
2013 |
2012 |
|
|||||||||
|
|
£m |
£m |
|
|||||||||
|
|
|
|
|
|||||||||
Trade creditors |
|
94 |
88 |
|
|||||||||
Amounts owed to joint ventures |
4 |
15 |
|
||||||||||
Other taxation and social security |
24 |
27 |
|
||||||||||
Accruals and deferred income |
137 |
131 |
|
||||||||||
|
|
|
|
|
|||||||||
Creditors |
|
259 |
261 |
|
|||||||||
|
|
|
|
|
|||||||||
Comparatives have been re-presented, see note 1. |
|
|
|||||||||||
|
|
|
|
|
|||||||||
Trade creditors are interest-free and have settlement dates within one year. The Directors consider that the carrying amount of trade and other creditors approximates to their fair value. |
|
||||||||||||
|
|||||||||||||
|
|
|
|
|
|||||||||
|
|
|
|
|
|||||||||
|
|
|
|
|
|||||||||
13. Other non-current liabilities |
|
|
|
||||||||||
|
|
2013 |
2012 |
|
|||||||||
|
|
£m |
£m |
|
|||||||||
|
|
|
|
|
|||||||||
Trade and other creditors |
- |
5 |
|
||||||||||
Head leases |
|
26 |
20 |
|
|||||||||
|
|
|
|
|
|||||||||
Other non-current liabilities |
26 |
25 |
|
||||||||||
|
|
|
|
|
|||||||||
|
|
|
|
|
|||||||||
|
|
|
|
|
|||||||||
14. Deferred Taxation |
|
|
|
||||||||||
|
|
|
|
|
|||||||||
Deferred tax is calculated on temporary differences under the liability method using a tax rate of 23% (2012: 24%). |
|
||||||||||||
The movement in deferred tax is shown below: |
|
||||||||||||
|
|
|
|
|
|||||||||
|
1 April |
Credited |
31 March |
|
|||||||||
|
2012 |
to income |
2013 |
|
|||||||||
|
£m |
£m |
£m |
|
|||||||||
|
|
|
|
|
|||||||||
Property and investment revaluations |
28 |
(16) |
12 |
|
|||||||||
Other timing differences |
4 |
- |
4 |
|
|||||||||
|
|
|
|
|
|||||||||
Deferred taxation |
32 |
(16) |
16 |
|
|||||||||
|
|
|
|
|
|||||||||
|
|
|
|
|
|||||||||
Under the REIT regime development properties which are sold within three years of completion do not benefit from tax exemption. At 31 March 2013 the value of such properties is £nil (2012: £763m) and if these properties were to be sold and tax exemption was not available the tax arising would be £nil (2012: £30m) |
|
||||||||||||
|
|||||||||||||
|
|||||||||||||
|
|||||||||||||
The deferred tax charge for the year ended 31 March 2013 includes a credit of £1m to reflect reduced deferred tax liabilities arising from the forthcoming reduction in the UK corporation tax rate to 23% (effective from 1 April 2013). |
|
||||||||||||
|
|||||||||||||
|
|
|
|
|
|||||||||
Deferred tax assets of £40m (2012: £41m) arising on losses from previous years have not been recognised in the financial year. |
|
||||||||||||
|
|||||||||||||
|
|
|
|
|
|||||||||
|
|
|
|
|
|||||||||
|
|
|
|
|
|||||||||
|
|
|
|
|
|||||||||
15. Net debt |
|
|
|
|
|||||||||
|
|
|
|
|
2013 |
2012 |
|||||||
|
|
|
|
Footnote |
£m |
£m |
|||||||
Secured on the assets of the Group |
|
|
|||||||||||
9.125% First Mortgage Debenture Stock 2020 |
1 |
37 |
37 |
||||||||||
6.125% First Mortgage Debenture Stock 2014 |
1 |
45 |
46 |
||||||||||
5.264% First Mortgage Debenture Bonds 2035 |
345 |
341 |
|||||||||||
5.0055% First Mortgage Amortising Debentures 2035 |
101 |
102 |
|||||||||||
5.357% First Mortgage Debenture Bonds 2028 |
334 |
322 |
|||||||||||
6.75% First Mortgage Debenture Bonds 2020 |
181 |
179 |
|||||||||||
Loan notes |
|
|
|
5 |
5 |
||||||||
|
|
|
|
|
|
|
|||||||
|
|
|
|
|
1,048 |
1,032 |
|||||||
Unsecured |
|
|
|
|
|
||||||||
5.50% Senior Notes 2027 |
|
98 |
98 |
||||||||||
6.30% Senior US Dollar Notes 2015 |
2 |
101 |
96 |
||||||||||
3.895% Senior US Dollar Notes 2018 |
3 |
28 |
26 |
||||||||||
4.635% Senior US Dollar Notes 2021 |
3 |
158 |
145 |
||||||||||
4.766% Senior US Dollar Notes 2023 |
3 |
97 |
89 |
||||||||||
5.003% Senior US Dollar Notes 2026 |
3 |
62 |
57 |
||||||||||
1.5% Convertible Bond 2017 |
|
407 |
- |
||||||||||
Bank loans and overdrafts |
|
179 |
1,078 |
||||||||||
|
|
|
|
|
|
|
|||||||
|
|
|
|
|
1,130 |
1,589 |
|||||||
Gross debt |
|
|
4 |
2,178 |
2,621 |
||||||||
|
|
|
|
|
|
|
|||||||
Interest rate derivatives: liabilities |
|
86 |
92 |
||||||||||
Interest rate derivatives: assets |
|
(92) |
(73) |
||||||||||
|
|
|
|
|
|
|
|||||||
|
|
|
|
|
2,172 |
2,640 |
|||||||
Liquid investments |
|
|
|
||||||||||
4.405% Medium Term Note 2015 |
|
- |
(100) |
||||||||||
4.395% Medium Term Note 2015 |
|
- |
(100) |
||||||||||
|
|
|
|
|
- |
(200) |
|||||||
|
|
|
|
|
|
|
|||||||
Cash and short-term deposits |
5 |
(135) |
(137) |
||||||||||
|
|
|
|
|
|
|
|||||||
Net debt |
|
|
|
2,037 |
2,303 |
||||||||
|
|
|
|
|
|
|
|||||||
Total borrowings where any instalments are due after five years are £103m (2012: £104m). |
|||||||||||||
|
|
|
|
|
|
|
|||||||
|
|
|
|
|
2013 |
2012 |
|||||||
1 |
These borrowings are obligations of ring-fenced, special purpose companies, with no recourse to other companies or assets in the Group: |
|
|
|
|
||||||||
|
BLD Property Holdings Ltd |
82 |
83 |
||||||||||
2 |
Principal and interest on this borrowing was fully hedged into Sterling at the time of issue. |
||||||||||||
3 |
Principal and interest on this borrowing was fully hedged into Sterling at a floating rate at the time of issue. |
|
|
||||||||||
4 |
The principal amount of gross debt at 31 March 2013 was £2,063m (2012: £2,562m). Included in this, the principal amount of secured borrowings and other borrowings of non-recourse companies was £981m (2012: £982m). |
||||||||||||
|
|||||||||||||
5 |
Cash and deposits not subject to a security interest amount to £106m (2012: £132m). |
||||||||||||
|
|
|
|
|
|
|
|||||||
|
|
|
|
|
|
|
|||||||
Maturity analysis of net debt |
|
2013 |
2012 |
||||||||||
|
|
|
|
|
£m |
£m |
|||||||
|
|
|
|
|
|
|
|||||||
Repayable: |
within one year and on demand |
44 |
49 |
||||||||||
between: |
one and two years |
|
188 |
405 |
|||||||||
|
|
two and five years |
|
522 |
776 |
||||||||
|
|
five and ten years |
|
441 |
422 |
||||||||
|
|
ten and fifteen years |
602 |
260 |
|||||||||
|
|
fifteen and twenty years |
5 |
332 |
|||||||||
|
|
twenty and twenty five years |
376 |
377 |
|||||||||
|
|
|
|
|
2,134 |
2,572 |
|||||||
Gross debt |
|
|
|
2,178 |
2,621 |
||||||||
Interest rate and currency derivatives |
(6) |
19 |
|||||||||||
Liquid Investments |
|
- |
(200) |
||||||||||
Cash and short-term deposits |
|
(135) |
(137) |
||||||||||
|
|
|
|
|
|
|
|||||||
Net debt |
|
|
|
2,037 |
2,303 |
||||||||
|
|
|
|
|
|
|
|||||||
|
|
|
|
|
|
|
|||||||
|
15. Net debt (continued) |
|
|
|||
|
|
|
|
|
|
The two financial covenants applicable to the Group unsecured debt including convertible bonds are: |
|||||
|
|
|
|
|
|
Net Borrowings not to exceed 175% of Adjusted Capital and Reserves |
|||||
At 31 March 2013, the ratio is 31%: |
|
||||
i. Net Borrowings are £1,962m, being the principal amount of gross debt of £2,063m plus amounts owed to joint ventures of £4m plus TPP Investments Ltd of £30m (see note 17), less the cash and short-term deposits of £135m; and |
|||||
ii. Adjusted Capital and Reserves are £6,242m, being share capital and reserves of £5,687m (see consolidated statement of changes in equity), adjusted for £14m of deferred tax (see note 2), £10m trading property surplus, £326m exceptional refinancing charges (see below) and £205m fair value adjustments on financial assets and liabilities (£198m mark-to-market on interest rate swaps and £7m fair value adjustment on the convertible bond). |
|||||
|
|
|
|
|
|
Net Unsecured Borrowings not to exceed 70% of Unencumbered Assets |
|||||
At 31 March 2013 the ratio is 23%: |
|
||||
i. Net Unsecured Borrowings are £980m, being the principal amount of gross debt of £2,063m plus amounts owed to joint ventures of £4m less cash and deposits not subject to a security interest of £106m less the principal amount of secured and non-recourse borrowings of £981m; and |
|||||
ii. Unencumbered Assets are £4,313m being properties of £5,554m (see note 8) plus investments in joint ventures and funds of £2,336m (see note 9) and other investments of £76m (see balance sheet) less investments in joint ventures of £1,889m (see note 9) and encumbered assets of £1,764m (see note 8). |
|||||
|
|
|
|
|
|
In calculating Adjusted Capital and Reserves for the purpose of the unsecured debt financial covenants, there is an adjustment of £326m to reflect the cumulative net amortised exceptional items relating to the refinancings in the years ended 31 March 2005, 2006 and 2007. |
|||||
|
|
|
|
|
|
Interest rate profile - including effect of derivatives |
|
||||
|
|
|
2013 |
2012 |
|
|
|
|
£m |
£m |
|
|
|
|
|
|
|
Fixed rate |
|
1,848 |
1,976 |
||
Variable rate (net of cash) |
|
189 |
327 |
||
|
|
|
|
|
|
Net debt |
|
2,037 |
2,303 |
||
|
|
|
|
|
|
Reconciliation of movement in Group net debt to cash flow statement |
|||||
|
|
|
|
|
|
|
2012 |
Cash flow |
Non cash |
2013 |
|
|
£m |
£m |
£m |
£m |
|
|
|
|
|
|
|
Per cash flow statement: |
|
|
|
||
Cash and short-term deposits |
(137) |
2 |
- |
(135) |
|
Cash and cash equivalents |
(137) |
2 |
- |
(135) |
|
|
|
|
|
|
|
Term debt (excluding overdrafts) |
2,621 |
(496) |
53 |
2,178 |
|
Fair value of interest rate derivatives |
19 |
- |
(25) |
(6) |
|
Liquid investments |
(200) |
210 |
(10) |
- |
|
|
|
|
|
|
|
Net debt |
2,303 |
(284) |
18 |
2,037 |
|
|
|
|
|
|
|
The Group Loan to Value (LTV) ratio at 31 March 2013 is 24%, being principal value of gross debt of £2,063m less cash and short-term deposits of £135m, divided by total Group property of £5,554m (see note 8) plus investments in joint ventures and funds of £2,336m (balance sheet) and other investments of £76m (see balance sheet). |
|||||
15. Net debt (continued) |
|
|
||
|
|
|
|
|
|
|
|
|
|
Maturity of committed undrawn borrowing facilities |
|
|||
|
|
|
|
|
|
|
2013 |
2012 |
|
|
|
£m |
£m |
|
Maturity date: |
|
|
|
|
|
|
|
|
|
between four and five years |
108 |
825 |
||
between three and four years |
870 |
- |
||
Total facilities available for more than three years |
978 |
825 |
||
|
|
|
|
|
between two and three years |
- |
280 |
||
between one and two years |
757 |
100 |
||
within one year |
|
369 |
35 |
|
|
|
|
|
|
Total |
|
2,104 |
1,240 |
|
|
|
|
|
|
The above facilities are available to be drawn for Group purposes. |
||||
|
|
|
|
|
|
|
|
|
|
Comparison of market values and book values at 31 March 2013 |
||||
|
|
|
|
|
|
Market |
Book |
|
|
|
Value |
Value |
Difference |
|
|
£m |
£m |
£m |
|
|
|
|
|
|
Debentures and unsecured bonds |
1,622 |
1,587 |
35 |
|
Convertible bond |
407 |
407 |
- |
|
Bank debt and other floating rate debt |
189 |
184 |
5 |
|
Cash and short-term deposits |
(135) |
(135) |
- |
|
|
|
|
|
|
|
2,083 |
2,043 |
40 |
|
|
|
|
|
|
Other financial (assets) liabilities: |
|
|
||
- interest rate derivative assets |
(92) |
(92) |
- |
|
- interest rate derivative liabilities |
86 |
86 |
- |
|
|
|
|
|
|
|
(6) |
(6) |
- |
|
|
|
|
|
|
Total |
2,077 |
2,037 |
40 |
|
|
|
|
|
|
Short-term debtors and creditors have been excluded from the disclosures. |
||||
|
|
|
|
|
The fair values of debt and debentures have been established by obtaining quoted market prices from brokers. The bank debt and loan notes have been valued assuming they could be renegotiated at contracted margins. The derivatives have been valued by calculating the present value of expected future cash flows, using appropriate market discount rates, by an independent treasury advisor. |
||||
|
|
|
|
|
Convertible Bond |
||||
On 10 September 2012 British Land (Jersey) Limited (the Issuer) issued £400 million 1.5 per cent guaranteed convertible bonds due 2017 (the bonds) at par. The Company has unconditionally and irrevocably guaranteed the due and punctual performance by the Issuer of all of its obligations (including payments) in respect of the bonds and the obligations of the Company, as guarantor, constitute direct, unsubordinated unconditional and unsecured obligations of the Company. |
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16. Dividend |
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The fourth quarter dividend of 6.6 pence per share, totalling £65m (2012: 6.6 pence per share, totalling £58m) was approved by the Board on 13 May 2013 and is payable on 9 August 2013 to shareholders on the register at the close of business on 5 July 2013. |
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The Board will announce the availability of the Scrip Dividend Alternative via the Regulatory News Service and on its website (www.britishland.com), no later than four business days before the ex-dividend date of 3 July 2013. The Board expects to announce the split between PID (Property Income Distribution) and non-PID income at that time. Any Scrip Dividend Alternative will not be enhanced. PID dividends are paid, as required by REIT legislation, after deduction of withholding tax at the basic rate (currently 20%), where appropriate. Certain classes of shareholders may be able to elect to receive dividends gross. Please refer to our website (www.britishland.com) for details. |
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Payment |
Dividend |
PID |
|
Non PID |
Pence per share |
2013 |
2012 |
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Current year dividends |
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09.08.2013 |
2013 4th interim |
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|
6.60 |
- |
- |
||
10.05.2013 |
2013 3rd interim |
6.60 |
* |
|
6.60 |
- |
- |
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15.02.2013 |
2013 2nd interim |
6.60 |
* |
|
6.60 |
59 |
- |
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09.11.2012 |
2013 1st interim |
6.60 |
* |
|
6.60 |
59 |
- |
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26.40 |
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Prior year dividends |
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10.08.2012 |
2012 4th interim |
3.30 |
|
3.30 |
6.60 |
58 |
- |
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9.05.2012 |
2012 3rd interim |
6.50 |
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|
6.50 |
58 |
- |
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17.02.2012 |
2012 2nd interim |
6.50 |
|
|
6.50 |
- |
58 |
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11.11.2011 |
2012 1st interim |
6.50 |
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|
6.50 |
- |
58 |
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26.10 |
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12.08.2011 |
2011 4th interim |
6.50 |
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6.50 |
- |
58 |
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13.05.2011 |
2011 3rd interim |
6.50 |
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6.50 |
- |
57 |
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Dividends in consolidated statement of changes in equity |
|
234 |
231 |
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Dividends settled in shares |
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|
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(32) |
(18) |
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Dividends settled in cash |
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|
202 |
213 |
|
Timing difference relating to payment of withholding tax |
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1 |
(1) |
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Dividends in cash flow statement |
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|
203 |
212 |
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* Scrip alternative treated as non-PID for this dividend. |
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17. Contingent liabilities |
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The Group has contingent liabilities in respect of legal claims, guarantees and warranties arising in the ordinary course of business. It is not anticipated that any material liabilities will arise from contingent liabilities. |
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TPP Investments Limited, a wholly owned, ring-fenced special purpose subsidiary, is a partner in The Tesco British Land Property Partnership and, in that capacity, has entered into a secured bank loan under which its liability is limited to £30m (2012: £30m) and recourse is only to the partnership assets. |
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18. Share capital and reserves |
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2013 |
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2012 |
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Number of ordinary shares in issue at 1 April |
900,199,638 |
897,042,298 |
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Share issues |
97,491,850 |
3,157,340 |
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At 31 March |
997,691,488 |
900,199,638 |
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Of the issued 25p ordinary shares, 275,497 shares were held in the ESOP trust (2012: 1,370,161), 11,266,245 shares were held as treasury shares (2012: 11,266,245) and 986,149,746 shares were in free issue (2012: 887,563,232). No treasury shares were acquired by the ESOP trust during the year. All issued shares are fully paid. |
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On 12 March 2013, the Company announced the placing of 89,674,604 new ordinary shares at a price of 550 pence per share. The new shares are fully paid and rank pari passu in all respects with those ordinary shares of the Company in issue prior to the placing. |
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Hedging and translation reserve |
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The hedging and translation reserve comprises the effective portion of the cumulative net change in the fair value of cash flow and foreign currency hedging instruments, as well as all foreign exchange differences arising from the translation of the financial statements of foreign operations. The foreign exchange differences also include the translation of the liabilities that hedge the Company's net investment in a foreign subsidiary. |
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Revaluation reserve |
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The revaluation reserve relates to owner-occupied properties and investments in joint ventures and funds. |
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Merger reserve |
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This comprises the premium on the share placing in March 2013. No share premium is recorded in the Company's financial statements, through the operation of the Merger Relief provisions of the Companies Act 2006. |
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19. Segment Information |
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Operating segments |
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The segmental note has been updated to reflect changes to internal management reporting. The Group allocates resources to investment and asset management according to the sectors it expects to perform over the medium term. Its two principal sectors are currently offices and retail. Prior year comparatives have been updated to reflect this change. |
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Segment Result |
|
Offices |
|
Retail |
|
Other / |
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Total |
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|
2013 |
|
2012 |
|
2013 |
|
2012 |
|
2013 |
|
2012 |
|
2013 |
|
2012 |
|
|
£m |
|
£m |
|
£m |
|
£m |
|
£m |
|
£m |
|
£m |
|
£m |
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Revenue |
|
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|
|
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|
|
|
|
|
|
|
|
|
British Land Group |
|
85 |
|
87 |
|
176 |
|
184 |
|
33 |
|
29 |
|
294 |
|
300 |
Share of joint ventures |
|
83 |
|
82 |
|
190 |
|
189 |
|
- |
|
1 |
|
273 |
|
272 |
Total |
|
168 |
|
169 |
|
366 |
|
373 |
|
33 |
|
30 |
|
567 |
|
572 |
|
|
|
|
|
|
|
|
|
|
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|
|
|
|
|
|
Net rental income |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
British Land Group |
|
82 |
|
77 |
|
167 |
|
175 |
|
32 |
|
34 |
|
281 |
|
286 |
Share of joint ventures |
|
80 |
|
80 |
|
180 |
|
180 |
|
- |
|
- |
|
260 |
|
260 |
Total |
|
162 |
|
157 |
|
347 |
|
355 |
|
32 |
|
34 |
|
541 |
|
546 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating Result |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
British Land Group |
|
72 |
|
77 |
|
159 |
|
174 |
|
(7) |
|
(18) |
|
224 |
|
233 |
Share of joint ventures |
|
80 |
|
80 |
|
175 |
|
172 |
|
1 |
|
2 |
|
256 |
|
254 |
Total |
|
152 |
|
157 |
|
334 |
|
346 |
|
(6) |
|
(16) |
|
480 |
|
487 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation to underlying |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2013 |
|
2012 |
British Land Group |
|
|
|
|
|
|
|
|
|
|
|
|
|
£m |
|
£m |
Total operating result |
|
|
|
|
|
|
|
|
|
|
|
|
|
480 |
|
487 |
British Land Group net |
|
|
|
|
|
|
|
|
|
|
|
|
|
(80) |
|
(77) |
Share of joint ventures and |
|
|
|
|
|
|
|
|
|
|
|
|
|
(126) |
|
(141) |
Capital and other |
|
|
|
|
|
|
|
|
|
|
|
|
|
(14) |
|
210 |
Total profit on ordinary |
|
|
|
|
|
|
|
|
|
|
|
|
|
260 |
|
479 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Of the total revenues above, £19m (2012: £17m) was derived from outside the UK. |
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|
|
|
|
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|
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|
|
|
|
|
|
|
|
|
|
|
Segment Assets |
|
Offices |
|
Retail |
|
Other / |
|
Total |
||||||||
|
|
2013 |
|
2012 |
|
2013 |
|
2012 |
|
2013 |
|
2012 |
|
2013 |
|
2012 |
|
|
£m |
|
£m |
|
£m |
|
£m |
|
£m |
|
£m |
|
£m |
|
£m |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Property assets (includes head leases liabilities) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
British Land Group |
|
2,033 |
|
2,017 |
|
3,071 |
|
2,946 |
|
450 |
|
451 |
|
5,554 |
|
5,414 |
Share of joint ventures |
|
1,684 |
|
1,545 |
|
3,256 |
|
3,372 |
|
5 |
|
6 |
|
4,945 |
|
4,923 |
Total |
|
3,717 |
|
3,562 |
|
6,327 |
|
6,318 |
|
455 |
|
457 |
|
10,499 |
|
10,337 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Segment assets |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
British Land Group |
|
2,039 |
|
2,023 |
|
3,080 |
|
2,949 |
|
814 |
|
995 |
|
5,933 |
|
5,967 |
Share of joint ventures |
|
1,839 |
|
1,628 |
|
3,367 |
|
3,517 |
|
12 |
|
14 |
|
5,218 |
|
5,159 |
Total |
|
3,878 |
|
3,651 |
|
6,447 |
|
6,466 |
|
826 |
|
1,009 |
|
11,151 |
|
11,126 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other assets |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
British Land Group |
|
- |
|
- |
|
- |
|
- |
|
363 |
|
533 |
|
363 |
|
533 |
Share of joint ventures |
|
155 |
|
83 |
|
107 |
|
137 |
|
7 |
|
8 |
|
269 |
|
228 |
Total |
|
155 |
|
83 |
|
107 |
|
137 |
|
370 |
|
541 |
|
632 |
|
761 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Capital expenditure |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
British Land Group |
|
391 |
|
148 |
|
315 |
|
27 |
|
47 |
|
347 |
|
753 |
|
522 |
Share of joint ventures |
|
109 |
|
113 |
|
26 |
|
83 |
|
- |
|
- |
|
135 |
|
196 |
Total |
|
500 |
|
261 |
|
341 |
|
110 |
|
47 |
|
347 |
|
888 |
|
718 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other assets include other investments of £76m (2012: £28m), debtors of £60m (2012: £95m), liquid investments of £nil (2012: £200m), cash of £135m (2012: £137m) and derivatives of £92m (2012: £73m). |
Supplementary Disclosures |
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|
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|
|
|
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|
Table A: SUMMARY INCOME STATEMENT AND BALANCE SHEET |
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|
|
|
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|
|
Summary income statement based on proportional consolidation for the year ended 31 March 2013 |
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|
||||||||
|
|
|
|
|
|
|
|
|
|
|
The following pro forma information is unaudited and does not form part of the consolidated primary statements or the notes thereto. It presents the results of the Group, with its share of the results of joint ventures and funds included on a line by line, i.e. proportional, basis. The underlying profit before taxation and underlying profit after taxation are the same as presented in the consolidated income statement. |
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|
31 March 2013 |
|
31 March 2012 |
|
||||||
|
Group |
|
Joint ventures |
|
Proportionally |
|
Group |
Joint ventures |
Proportionally |
|
|
|
|
and funds |
|
Consolidated |
|
|
and funds |
Consolidated |
|
|
£m |
|
£m |
|
£m |
|
£m |
£m |
£m |
|
|
|
|
|
|
|
|
|
|
|
|
Gross rental income |
294 |
|
273 |
|
567 |
|
300 |
272 |
572 |
|
|
|
|
|
|
|
|
|
|
|
|
Property operating expenses |
(13) |
|
(13) |
|
(26) |
|
(14) |
(12) |
(26) |
|
|
|
|
|
|
|
|
|
|
|
|
Net rental income |
281 |
|
260 |
|
541 |
|
286 |
260 |
546 |
|
|
|
|
|
|
|
|
|
|
|
|
Administrative expenses |
(72) |
|
(4) |
|
(76) |
|
(69) |
(7) |
(76) |
|
|
|
|
|
|
|
|
|
|
|
|
Fees and other income |
15 |
|
- |
|
15 |
|
16 |
1 |
17 |
|
|
|
|
|
|
|
|
|
|
|
|
Ungeared income return |
224 |
|
256 |
|
480 |
|
233 |
254 |
487 |
|
|
|
|
|
|
|
|
|
|
|
|
Net interest |
(80) |
|
(126) |
|
(206) |
|
(77) |
(141) |
(218) |
|
|
|
|
|
|
|
|
|
|
|
|
Underlying profit before taxation |
144 |
|
130 |
|
274 |
|
156 |
113 |
269 |
|
|
|
|
|
|
|
|
|
|
|
|
Underlying tax |
(1) |
|
- |
|
(1) |
|
(2) |
(2) |
(4) |
|
|
|
|
|
|
|
|
|
|
|
|
Underlying profit after taxation |
143 |
|
130 |
|
273 |
|
154 |
111 |
265 |
|
|
|
|
|
|
|
|
|
|
|
|
Underlying earnings per |
|
|
|
|
30.3 |
|
|
|
29.7 |
p |
|
|
|
|
|
|
|
|
|
|
|
Valuation movement |
|
|
|
|
26 |
|
|
|
215 |
|
|
|
|
|
|
|
|
|
|
|
|
Other capital and tax (net)* |
|
|
|
|
(4) |
|
|
|
13 |
|
|
|
|
|
|
|
|
|
|
|
|
Capital and other |
|
|
|
|
22 |
|
|
|
228 |
|
|
|
|
|
|
|
|
|
|
|
|
Total return |
|
|
|
|
295 |
|
|
|
493 |
|
|
|
|
|
|
|
|
|
|
|
|
*includes other comprehensive income, movement in dilution of share options and the movement in items excluded for EPRA NAV. |
|
|
||||||||
|
|
|
|
|
|
|
|
|
|
|
The underlying earnings per share is calculated on underlying profit before taxation of £274m, tax attributable to underlying profits of £1m and 901m shares on a diluted basis for the year ended 31 March 2013. |
|
|
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|
|
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|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Supplementary Disclosures (continued) |
|
|
|
|
|
|
|
|
|
|||
|
|
|
|
|
|
|
|
|
|
|
|
|
Table A (continued): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Summary balance sheet based on proportional consolidation as at 31 March 2013 |
|
|
|
|
|
|||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
The following pro forma information is unaudited and does not form part of the consolidated primary statements or the notes thereto. It presents the composition of the EPRA net assets of the Group, with its share of the net assets of the joint venture and fund assets and liabilities included on a line-by-line, i.e. proportional basis and assuming full dilution. |
|
|||||||||||
|
||||||||||||
|
||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Group |
Share of joint ventures & funds |
Share options |
Deferred tax |
Mark-to-Market of interest rate swaps |
Head Leases |
Valuation surplus on trading properties |
|
EPRA Net assets 2013 |
|
EPRA Net assets 2012 |
|
|
£m |
£m |
£m |
£m |
£m |
£m |
£m |
|
£m |
|
£m |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Retail properties |
3,080 |
3,260 |
- |
- |
- |
(13) |
- |
|
6,327 |
|
6,318 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Office properties |
2,039 |
1,684 |
- |
- |
- |
(6) |
- |
|
3,717 |
|
3,562 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other properties |
451 |
5 |
- |
- |
- |
(11) |
10 |
|
455 |
|
457 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total properties |
5,570 |
4,949 |
- |
- |
- |
(30) |
10 |
|
10,499 |
|
10,337 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Investments in joint |
2,336 |
(2,336) |
- |
- |
- |
- |
- |
|
- |
|
- |
|
ventures and funds |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other investments |
76 |
(23) |
- |
- |
- |
- |
- |
|
53 |
|
28 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other net |
(258) |
(163) |
58 |
14 |
- |
30 |
- |
|
(319) |
|
(294) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net debt |
(2,037) |
(2,427) |
- |
- |
198 |
- |
- |
|
(4,266) |
|
(4,690) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net assets |
5,687 |
- |
58 |
14 |
198 |
- |
10 |
|
5,967 |
|
5,381 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EPRA NAV per share |
|
|
|
|
|
|
|
|
596 |
p |
595 |
p |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EPRA Net Assets |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
|
|
|
|
|
|
31 March 2013 |
|
31 March 2012 |
|
|||
|
|
|
|
|
|
£m |
Pence per share |
|
£m |
|
Pence per share |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Opening EPRA NAV |
|
|
|
|
5,381 |
595 |
p |
5,101 |
|
567 |
p |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income return |
|
|
|
|
|
273 |
30 |
p |
265 |
|
29 |
p |
|
|
|
|
|
|
|
|
|
|
|
|
|
Capital return |
|
|
|
|
|
22 |
2 |
p |
228 |
|
25 |
p |
|
|
|
|
|
|
|
|
|
|
|
|
|
Dividend paid |
|
|
|
|
|
(202) |
(27) |
p |
(213) |
|
(26) |
p |
|
|
|
|
|
|
|
|
|
|
|
|
|
Dilution due to issues |
|
|
|
|
|
493 |
(4) |
p |
- |
|
- |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Closing EPRA NAV |
|
|
|
|
5,967 |
596 |
p |
5,381 |
|
595 |
p |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Supplementary Disclosures (continued) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Table B: EPRA PERFORMANCE MEASURES |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EPRA Performance measures summary table |
|
|
|
|
|
|
|
|
2013 |
|
|
2012 |
|
|
£m |
Pence per share |
|
£m |
Pence per share |
|
|
|
|
|
|
|
|
EPRA earnings |
268 |
29.7 |
p |
262 |
29.4 |
p |
|
|
|
|
|
|
|
EPRA NAV |
5,967 |
596 |
p |
5,381 |
595 |
p |
|
|
|
|
|
|
|
EPRA NNNAV |
5,522 |
552 |
p |
5,148 |
569 |
p |
|
|
|
|
|
|
|
EPRA net initial yield |
|
5.5 |
% |
|
5.2 |
% |
|
|
|
|
|
|
|
EPRA 'topped-up' net initial yield |
|
5.7 |
% |
|
5.8 |
% |
|
|
|
|
|
|
|
EPRA vacancy rate |
|
3.3 |
% |
|
2.4 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Calculation of EPRA earnings and EPRA earnings per share |
|
2013 |
2012 |
|
||
|
|
|
|
£m |
£m |
|
|
|
|
|
|
|
|
Profit for the year after taxation |
|
|
|
284 |
480 |
|
Exclude |
|
|
|
|
|
|
Group - non-underlying current tax |
|
|
|
(9) |
- |
|
Group - deferred tax |
|
|
|
(16) |
(3) |
|
Joint ventures and funds - non-underlying current tax |
|
|
(2) |
(1) |
|
|
Joint ventures and funds - deferred tax |
|
|
|
(1) |
(1) |
|
Group - net valuation movement (including result on disposals) |
|
(79) |
(146) |
|
||
Joint ventures and funds - net valuation movement (including result on disposals) |
62 |
(72) |
|
|||
Amortisation of intangible assets |
|
|
|
1 |
- |
|
Changes in fair value of financial instruments and associated close-out costs |
28 |
5 |
|
|||
|
|
|
|
|
|
|
EPRA earnings* |
|
|
|
268 |
262 |
|
|
|
|
|
|
|
|
Mark-to-market on / profit on disposal of liquid investments (held for trading assets) |
|
(9) |
3 |
|
||
Mark-to-market on convertible bond |
|
|
|
7 |
- |
|
Non-recurring items** |
|
|
|
7 |
- |
|
|
|
|
|
|
|
|
Underlying earnings |
|
|
|
273 |
265 |
|
|
|
|
|
|
|
|
* Comparatives have been re-presented in line with updated EPRA guidance. |
||||||
**Non-recurring items for the year ended 31 March 2013 relate to £7m of issue costs for the convertible bond. |
|
|||||
|
|
|
|
|
|
|
|
|
|
|
2013 |
2012 |
|
|
|
|
|
Number |
Number |
|
|
|
|
|
million |
million |
|
|
|
|
|
|
|
|
Weighted average number of shares |
|
|
|
907 |
899 |
|
|
|
|
|
|
|
|
Adjustment for treasury shares |
|
|
|
(11) |
(11) |
|
|
|
|
|
|
|
|
Adjustment for ESOP shares |
|
|
|
(1) |
(1) |
|
|
|
|
|
|
|
|
Weighted average number of shares (basic) |
|
|
895 |
887 |
|
|
|
|
|
|
|
|
|
Dilutive effect of share options |
|
|
|
2 |
2 |
|
|
|
|
|
|
|
|
Dilutive effect of ESOP shares |
|
|
|
4 |
3 |
|
|
|
|
|
|
|
|
Weighted average number of shares (diluted) |
|
|
901 |
892 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2013 |
2012 |
|
|
|
|
|
Pence |
Pence |
|
|
|
|
|
|
|
|
Earnings per share (basic) |
|
|
|
31.7 |
54.1 |
|
|
|
|
|
|
|
|
Earnings per share (diluted) |
|
|
|
31.5 |
53.8 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Underlying earnings per share (diluted) |
|
|
|
30.3 |
29.7 |
|
|
|
|
|
|
|
|
EPRA earnings per share |
|
|
|
29.7 |
29.4 |
|
|
|
|
|
|
|
|
. |
|
|
|
Supplementary Disclosures (continued) |
|
|
|
|
|
||
|
|
|
|
|
|
|
|
Table B (continued): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net assets per share |
|
2013 |
|
|
2012 |
|
|
|
£m |
Pence per share |
|
£m |
Pence per share |
|
|
|
|
|
|
|
|
|
|
Balance sheet net assets |
5,687 |
|
|
5,104 |
|
|
|
|
|
|
|
|
|
|
|
Deferred tax arising on revaluation movements |
14 |
|
|
31 |
|
|
|
Mark-to-market on effective cash flow hedges and related debt adjustments |
198 |
|
|
189 |
|
|
|
Dilution effect of share options |
58 |
|
|
57 |
|
|
|
Surplus on trading properties |
10 |
|
|
- |
|
|
|
EPRA NAV |
5,967 |
596 |
p |
5,381 |
595 |
p |
|
|
|
|
|
|
|
|
|
Deferred tax arising on revaluation movements |
(14) |
|
|
(31) |
|
|
|
Mark-to-market on effective cash flow hedges and related debt adjustments |
(198) |
|
|
(189) |
|
|
|
Mark-to-market on debt |
(233) |
|
|
(13) |
|
|
|
|
|
|
|
|
|
|
|
EPRA NNNAV |
5,522 |
552 |
p |
5,148 |
569 |
p |
|
|
|
|
|
|
|
|
|
EPRA NNNAV is the EPRA NAV adjusted to reflect the fair value of the debt and derivatives and to include the deferred taxation on revaluations. |
|||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EPRA Net Initial Yield and 'topped-up' Net Initial Yield |
|
|
|
|
|||
|
|
2013 |
|
|
2012 |
|
|
|
|
£m |
|
|
£m |
|
|
Investment property - wholly-owned |
5,554 |
|
|
5,414 |
|
||
Investment property - share of joint ventures and funds |
4,945 |
|
|
4,923 |
|
||
Less developments, residential and land |
(1,340) |
|
|
(835) |
|
||
|
|
|
|
|
|
|
|
Completed property portfolio |
|
9,159 |
|
|
9,502 |
|
|
Allowance for estimated purchasers' costs |
552 |
|
|
521 |
|
||
|
|
|
|
|
|
|
|
Gross up completed property portfolio valuation |
9,711 |
|
|
10,023 |
|
||
|
|
|
|
|
|
|
|
Annualised cash passing rental income |
541 |
|
|
531 |
|
||
Property outgoings |
|
(11) |
|
|
(8) |
|
|
|
|
|
|
|
|
|
|
Annualised net rents |
|
530 |
|
|
523 |
|
|
|
|
|
|
|
|
|
|
Rent expiration of rent-free periods and fixed uplifts* |
27 |
|
|
57 |
|
||
|
|
|
|
|
|
|
|
'Topped-up' net annualised rent |
|
557 |
|
|
580 |
|
|
EPRA Net Initial Yield |
|
5.5 |
% |
|
5.2 |
% |
|
EPRA 'topped-up' Net Initial Yield |
|
5.7 |
% |
|
5.8 |
% |
|
|
|
|
|
|
|
|
|
Including fixed/minimum uplifts received in lieu of rental growth |
26 |
|
|
27 |
|
||
|
|
|
|
|
|
|
|
Total 'topped-up' net rents |
|
583 |
|
|
607 |
|
|
Overall 'topped-up' Net Initial Yield |
|
6.0 |
% |
|
6.1 |
% |
|
|
|
|
|
|
|
|
|
'Topped-up' net annualised rent |
|
557 |
|
|
580 |
|
|
ERV vacant space |
|
19 |
|
|
14 |
|
|
Reversions |
|
- |
|
|
(18) |
|
|
Total ERV |
|
576 |
|
|
576 |
|
|
Net Reversionary Yield |
|
5.9 |
% |
|
5.7 |
% |
|
* The period over which rent-free periods expire is 2 years (2012: 3 years). |
|
|
|||||
|
|
|
|
|
|
|
|
EPRA Vacancy Rate |
|
|
|
|
|
|
|
|
|
2013 |
|
|
2012 |
|
|
|
|
£m |
|
|
£m |
|
|
Annualised potential rental value of vacant premises |
19 |
|
|
14 |
|
||
Annualised potential rental value for the completed property portfolio |
576 |
|
|
576 |
|
||
EPRA vacancy rate |
|
3.3 |
% |
|
2.4 |
% |
|
|
|
|
|
|
|
|
Supplementary Disclosures (continued) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Table C: GROSS RENTAL INCOME AND ACCOUNTING RETURN |
|
|
|
|||
|
|
|
|
|
|
|
Calculation of gross rental income |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
31 March |
31 March |
|
|
|
|
|
2013 |
2012 |
|
|
|
|
|
£m |
£m |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Rent receivable |
|
|
|
538 |
533 |
|
Spreading of tenant incentives and guaranteed rent increases |
|
28 |
38 |
|
||
Surrender premia |
|
|
|
1 |
1 |
|
|
|
|
|
|
|
|
Gross rental income |
|
|
|
567 |
572 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
31 March 2013 |
|
31 March 2012 |
|
||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total accounting return |
|
4.6 |
% |
|
9.5 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|