Half Yearly Report - Part 1

RNS Number : 5104R

British Land Co PLC

20 November 2012

THE BRITISH LAND COMPANY PLC HALF YEAR RESULTS

Continued Outperformance Driven by Management Actions

Good results in tough markets; continued outperformance vs IPD

· Net rental income 1.1% ahead; UK like for like growth +1.2%

· Underlying PBT¹ up 3.8% to £137 million; IFRS PBT of £109 million (HY 2011/12: £331 million)

· Portfolio valuation in line with 31 March 2012 at £10.4 billion (UK +0.2%)

· Continued outperformance vs IPD benchmarks: total returns +170 bps; capital returns +200 bps

· EPRA NAV¹ ahead at 596 pence, +0.8% increase over 12 months; +0.2% over 6 months

· IFRS Net Assets flat at £5.1 billion (HY 2011/12: £5.1 billion)

· Quarterly dividend of 6.6 pence; bringing the half year to 13.2 pence (+1.5%)

Good leasing activity in slow market reflects portfolio strength and asset management expertise

· Outperforming the market on all key operational metrics

· 953,000 sq ft of lettings and lease renewals/extensions at 4.5% above ERV; occupancy maintained at high levels (like-for-like UK 98.3%)

· Rental value growth at +0.3% outperforming IPD benchmark by 40 bps

· UK retail footfall +0.3% outperforming Experian benchmark by 300 bps

Successfully crystallising value from office developments

· 6.9% increase in value of committed office developments

· 54,000 sq ft of pre-lets agreed since 1 April: 56% of office programme now pre-let

· Further 34,400 sq ft of space under offer post half year end

· £216 million of profit (24 pence per share) crystallised to date on the programme

· £175 million of profit yet to come (19 pence per share) based on valuers' current estimates

Disposals release capital to invest in future growth and replenish development pipeline

· £351 million of disposals (£235 million BL share) exchanged or completed; 3.1% ahead of March 2012 valuation

· £316 million of acquisitions (£274 million BL share) exchanged or completed since 1 April 2012: focused on replenishing development pipeline

· Acquisitions include: Clarges Estate (£130 million), a 191,000 sq ft office/residential development opportunity in Mayfair and a retail development in Hereford (£90 million forward funding)

Continued access to diverse range of low cost financing

· Achieved £917 million (BL share £703 million) of new financings since the beginning of the financial year; successful convertible bond issue: £400 million raised with a coupon of 1.5%

· Proportionally consolidated loan to value (LTV) at 46.0% (March 2012 45.3%)

Chris Grigg, Chief Executive said: "Today we're reporting a good set of numbers in what continues to be a tough market. Our income, profits and NAV are up on the same period last year and we have continued to outperform the UK property market on all key metrics - rental growth, capital returns and total returns. Our results underline the strength and resilience of British Land's business. The decisions we have taken in recent years are ensuring we are not only delivering good results today but are also building growth into our portfolio for the future."

Income statement metrics	H1 2012/13	H1 2011/12	Change
Underlying profit before tax¹	£137m	£132m	+3.8%
IFRS profit before tax	£109m	£331m
Diluted Underlying EPS	15.2p	14.6p	+4.1%
Diluted EPS	12.5p	37.2p
Dividend per share	13.2p	13.0p
Balance sheet metrics	H1 2012/13	YE 2011/12	Change
Portfolio at valuation	£10,388m	£10,337m	0.0%²
EPRA Net Asset Value¹ per share	596p	595p	+0.2%
IFRS net assets	£5,077m	£5,104m
Loan to value ratio	46.0%	45.3%

¹ See Note 2 to the condensed set of financial statements

² Valuation movement during the period (after taking account of capital expenditure) of properties held at the balance sheet date, purchases and sales

Investor Presentation

A presentation of the results will take place 9:30 am today, 20 November 2012, and will be broadcast live via webcast (www.britishland.com) and conference call. The details for the conference call are as follows:

UK Toll Free Number: 0800 279 4841

UK Number: +44 207 7136 2055

Passcode: 6438141

A dial in replay will be available later in the day and the details are:

Replay number: +44 207 7111 1244

Passcode: 6438141

For Information Contact

Investor Relations

Sally Jones, British Land 020 7467 2942

Media

Pip Wood, British Land 020 7467 2838

Gordon Simpson, Finsbury Group 020 7251 3801

Guy Lamming, Finsbury Group

Forward-Looking Statements

This document contains certain "forward-looking" statements reflecting, among other things, current views on our markets, activities and prospects. By their nature, forward-looking statements involve risk and uncertainty because they relate to future events and circumstances that may or may not occur and which may be beyond British Land's ability to control or predict (such as changing political, economic or market circumstances). Actual outcomes and results may differ materially from any outcomes or results expressed or implied by such forward-looking statements. Any forward-looking statements made by or on behalf of British Land speak only as of the date they are made and no representation or warranty is given in relation to them, including as to their completeness or accuracy or the basis on which they were prepared. Except to the extent required by law, British Land does not undertake to update or revise forward-looking statements to reflect any changes in British Land's expectations with regard thereto or any changes in information, events, conditions or circumstances on which any such statement is based.

Notes to Editors:

About British Land

British Land is one of Europe's largest Real Estate Investment Trusts (REITs) with total assets, owned or managed, of £16.3 billion (British Land share £10.4 billion), as valued at 30 September 2012. Through our property and finance expertise we attract experienced partners to create properties and environments which are home to over 1,000 different organisations and visited by over 300 million people each year. Our property portfolio is focused on prime retail locations and Central London offices which attract high quality occupiers committed to long leases. Our occupancy rate of 97.3% and average lease length to first break of 11.1 years are among the highest of the major UK REITs.

Retail assets account for 60% of our portfolio with around 28 million sq ft of retail space across 82 retail parks, 92 superstores, 13 shopping centres and 9 department stores. The retail portfolio is modern, flexible and adaptable to a wide range of formats and our active asset management delivers space which is attractive and meets the needs of both retailers and consumers. 80% of our retail parks have open A1 consent.

London offices, located in the City and West End, comprise 35% of the portfolio (which will rise to an estimated 40% on completion of current developments). Our 7 million sq ft of high quality offices includes Broadgate, the premier City office campus (50% share) and Regent's Place in the West End. Over the last 2 years, we have committed £1.2 billion to create Central London's largest committed office development programme which will deliver 2.3 million sq ft of high quality space by 2014, including a 700,000 sq ft building at 5 Broadgate, the 610,000 sq ft Leadenhall Building in London's insurance district and a 500,000 sq ft mixed office and residential scheme at Regent's Place in the West End.

Managing our environmental, economic and social impacts is central to the way we do business and deliver value for our shareholders. We assess the issues that matter most to us and our stakeholders on an on-going basis and, where appropriate, adjust our strategic focus to reflect this. We focus on managing our buildings efficiently, supporting communities, developing sustainable buildings and engaging our staff. For each of these priorities we are targeting our efforts and resources at initiatives where we can achieve the biggest impacts.

Further details can be found on the British Land website at www.britishland.com

CHIEF EXECUTIVE'S REVIEW

We are reporting another good set of numbers in a tough economic environment: income, profit and NAV were ahead and we significantly outperformed the market on all key measures including total and capital returns which were 170 bps and 200 bps ahead of the IPD benchmark respectively. In a market where leasing activity has been generally slow and valuations have continued to weaken, our results underline the strength and resilience of our business and the actions we have taken in recent years to drive performance.

The results show the benefits of our scale; our focus on high quality retail in the UK and Central London offices; our focus on strengthening and growing rental income through asset management and acquisitions; our early investment in a significant development programme in Central London; our ongoing access to low cost funding; and our ability to secure attractive new investment opportunities.

The valuation of the group's portfolio at £10.4 billion, was flat over the half, with a 0.2% increase in our UK portfolio offset by Europe where values were lower. Our decision to invest in a major development programme has been a significant contributor to our performance and we continued to crystallise profits from our committed office developments (value +6.9%). To date, this programme has generated £216 million of profit (24 pence per share) with a further £175 million (19 pence per share) to come, based on valuers' current estimates.

Asset management is a core strength of British Land which, combined with the quality of our properties, means we continued to let space ahead of estimated rental value and kept our portfolio almost fully occupied. All of the operating metrics within our investment portfolio remain strong - and we continued to outperform the overall UK market: on rental values (ERV +0.3%); occupancy (like-for-like 98.3%); lease length (11.1 years); rents expiring over the next three years (9.1%) and in retail, footfall (+0.3%, 300 bps ahead of the Experian benchmark). Leasing activity in the half added £5.9 million of new rent on a net effective basis with lettings, lease extensions and lease renewals signed at 4.5% ahead of ERV.

We were particularly pleased to sign a new long-term joint venture agreement at Meadowhall, our large super-regional shopping centre, with Norges Bank Investment Management ("Norges"), one of the largest sovereign wealth funds in the world. Meadowhall has performed strongly in recent years, benefiting from a targeted programme to attract a broader range of shoppers to the centre, extend its catchment area and increase dwell time. We look forward to working with Norges to continue to grow and develop Meadowhall.

Investor demand for secure, income generating assets remains strong and we sold a number of our more mature assets. We completed or exchanged £351 million (BL share £235 million) of disposals in the half at a 3.1% premium to valuation. We reinvested the capital in acquisitions (£316 million gross, £274m BL share, exchanged or completed since 1 April), the majority of which have significant current or future development potential, further increasing our prospective pipeline. These included: the Clarges Estate, a prime mixed office and residential development site in the heart of Mayfair; Eden Walk, a shopping centre in an affluent and underserved market in south west London; and a £90 million forward funding of a retail development in Hereford.

Our ability to continue to access low cost flexible finance from a diverse range of sources is a key competitive advantage. Since the beginning of the financial year, we have arranged £917 million of new financings (BL share £703 million) bringing the total new finance raised over the last eighteen months to £2.5 billion, equivalent to nearly one third of the total debt book we manage. New financings in the half included a £400 million convertible bond with a five year term and highly attractive coupon of 1.5% where we benefited from being the first European real estate company to access this market after the summer.

Board Change

In October, it was announced that Steve Smith, currently Chief Investment Officer and an executive Board director, would be standing down from the Board at the end of the financial year (31 March 2013) and leaving the company in June.

Today, we are announcing that the Chairman, Chris Gibson-Smith will be stepping down from the Board on 31 December 2012 on conclusion of his second three-year term as Chairman. He will be succeeded with effect on 1 January 2013, by John Gildersleeve, who joined British Land as a Non-executive Director in 2008 and is currently Senior Independent Director.

Outlook

British Land continues to be well placed. We are executing successfully against a clear strategy and as a result continue to deliver good results in tough markets as well as build growth into the business for the future. We expect market trends to continue to favour our business mix: we believe London will remain highly attractive to occupiers and investors; polarisation will continue, particularly in Retail; and with debt funding in short supply, development returns will remain attractive. We still have significant profits to come from our committed development programme and are successfully redeploying capital into replenishing our pipeline. So although we remain cautious about the overall economic environment and expect property values in the UK to be variable in the near term, British Land remains not only defensive in today's more challenging environment but also increasingly well positioned to deliver in the future as the economy improves.

Chris Grigg

Chief Executive

BUSINESS REVIEW

PORTFOLIO PERFORMANCE

The performance of the portfolio has been resilient in a tough economic environment, with our overall valuation unchanged over the half year and total and capital returns both significantly ahead of IPD at 170 bps and 200 bps respectively. We continued to benefit from our focus on prime UK retail and Central London offices alongside our successful development programme.

Total Property Return (as calculated by IPD excluding Europe)
6 mths to 30 September 2012	Retail		Offices		Total
%	British Land	IPD	British Land	IPD	British Land	IPD
Income Return	2.8	2.9	1.9	2.6	2.5	2.8
Capital Return	(1.0)	(2.3)	2.3	(1.0)	0.3	(1.7)
- ERV Growth	0.0	(0.3)	1.0	0.5	0.3	(0.1)
- Yield Movement Out¹	6 bps	14 bps	1 bps	24 bps	4 bps	20 bps
Total Property Return	1.8	0.5	4.3	1.6	2.8	1.1
¹net equivalent yield movement

ERVs across the UK portfolio were 0.3% ahead, compared with a decline of 0.1% for the property market as a whole. We saw modest outward yield shift of 4 bps overall which was significantly less than the market where yields increased by 20 bps. In terms of our sectors, UK Retail values were 1% lower with asset management and the fixed uplifts in the portfolio, especially superstores, only partially offsetting outward yield shift. A 2.2% valuation increase in Offices was driven by development. The Offices investment portfolio was 1% ahead, benefiting from lease extensions and new lettings, particularly at Broadgate.

Portfolio Valuation, Yield and ERV Movement
At 30 September 2012	Portfolio¹	Change²	Net equivalent yield %	Net equivalent yield movement³	ERV Growth⁴
	£m	%	Net equivalent yield %	Net equivalent yield movement³	ERV Growth⁴
Retail⁵:
Retail parks	2,651	(2.3)	5.9	12	0.0
Superstores	1,310	0.5	5.1	0	0.3
Shopping centres	1,556	(0.3)	5.8	(2)	(0.3)
Department stores	430	(0.6)	6.6	8	0.8
UK Retail	5,947	(1.0)	5.7	6	0.0
Europe Retail	247	(9.3)	8.0	48
All Retail	6,194	(1.4)	5.8	7
Offices⁵:
City	2,145	1.5	5.7	1	1.0
West End	1,527	3.2	5.6	2	1.2
Provincial	88	1.3	6.5	(2)	0.0
All Offices	3,760	2.2	5.7	1	1.0
Other⁵	434	1.2	8.5	2	0.1
UK Total	10,141	0.2	5.8	4	0.3
Total	10,388	0.0	5.9	5
¹ Including group's share of properties in joint ventures and funds
² valuation movement during the period (after taking account of capital expenditure) of properties held at the balance sheet date, including developments (classified by end use), purchases and sales ³ a positive movement in yields represents an increase in yields, a negative movement represents a reduction in yields
⁴ like for like (as calculated by IPD), excluding Europe
⁵ includes developments

INVESTMENT ACTIVITY

Investment activity increased in the half, reflecting both on-going investment in the group's committed development programme and a more active period for acquisitions and disposals. Institutional demand for high quality property remains strong both from international and domestic institutions. We are taking advantage of this demand by selectively disposing of more mature assets to reinvest the capital in higher returning opportunities. The gross value of investment activity during the half, as measured by acquisitions, disposals and capital investment in developments was £695 million. When the post period end acquisition of Hereford is included this increases to £785 million. Capital spend on developments was £118 million.

Developments

At 30 September, the balance sheet value of our total committed development pipeline was £792 million with an increase of 6.9% over the half driven by the committed office programme. Based on our valuers' assumptions, the committed office development programme is expected to deliver a further £175 million (19 pence per share) of development profit.

Committed Developments
	Sq ft	Current Value	Cost to complete	Notional interest	ERV	Pre-let	Pre-sold
	'000	£m	£m¹	£m^1,2	£m	£m	£m

Retail³	673	19	98	10	8.2	4.8	-
Offices - inc mixed use residential ⁴	2,122	724	370	55	75.2	36.3	87
Residential - standalone	62	49	22	4	-	-	10
Total Committed	2,857	792	490	69	83.4	41.1	97
Data includes Group's share of properties in Joint Ventures & Funds (except area which is shown at 100%)
¹ from 1 October 2012 to practical completion (PC)
² including notional cost of finance of 6%
³ including Hereford acquired post half end, see supplementary table for details
⁴ including 136,000 sq ft of residential (estimated end value of £128 million)

Acquisitions and Disposals

During the half we completed or exchanged sales of £351 million of assets (BL share £235 million) at a 3.1% premium to the March 2012 valuation. Most of these were retail properties which were sold to a range of institutional investors. The largest disposal was the Beehive Centre, a wholly owned BL retail park in Cambridge, for £109 million. At a blended yield of 5.25%, and 3.8% above valuation this provides good support for prime retail park yields. We also sold seven of our smaller food superstores for a gross value of £118 million (BL share £62 million), on a NIY range of 4.95% to 5.7%.

Since 1 April 2012, we exchanged or completed acquisitions for £316 million (BL share £274 million), all of which are current or potential development opportunities which are generating only modest current rental income. The largest of these was the Clarges Estate, a significant mixed office and residential development site in Mayfair, Central London. Acquisition included the £90 million forward funding agreement to enable the development of a 310,000 sq ft scheme in Hereford city centre which we signed in October.

Acquisitions and Disposals - Completed/Exchanged since 1 April 2012*

Disposals	Price	BL Share	BL Share Annual
	(gross) £m	£m	Passing Rent £m
Beehive Centre, Cambridge¹	109	109	5
Seven food superstores³	118	62	4
Hercules Income Fund⁴	73	19	1
Residential²	22	22	-
The Electric Press, Leeds	13	13	1
Other	16	10	1
Total	351	235	12
Acquisitions
Clarges Estate¹	130	130	-
Eden Walk Shopping Centre, Kingston	83	41	2
Harmsworth Quays, Canada Water⁵	13	13	-
Hereford⁶	90	90	-
Total	316	274	2

* Acquisitions and disposals not previously reported

¹ Exchanged in the period, completed post half end.

² Residential sales included £17 million of pre-sold development units which will complete once the developments reach practical completion.

³ Seven food superstores sold - two Sainsbury's and one Waitrose were sold by our Sainsbury's JV; one Tesco was sold by our Tesco JV and the remaining three stores (two Co-ops and an Aldi) were wholly owned BL group properties.

⁴ Hercules Income Fund was a closed-ended Jersey domiciled Property Unit Trust. On sale it had a portfolio of seven Retail Parks across the UK.

⁵ Conditionally exchanged in the period.

⁶Hereford exchanged post period end.

RETAIL REVIEW

· Focus on quality retail and asset management continues to drive significant outperformance in a tough market - total returns outperforming IPD All Retail by 130 bps

· UK Retail portfolio valuation down 1% at £5.9 billion; capital returns outperformed IPD by 130 bps

· 403,000 sq ft of lettings and lease renewals on average 3.1% ahead of ERV

· Tenants in administration 0.6% of total group rent at 30 September

· Footfall at +0.3% continues to significantly outperform UK market benchmark - by 300 bps

· UK occupancy stable at 98.3%

· £329 million (BL share £213 million) of retail assets sold at 2% ahead of March valuation

· Acquisitions increase future growth potential including Eden Walk and Hereford

· Long-term joint venture signed with Norges Bank Investment Management at Meadowhall

Performance

Our retail business had a busy and productive half year delivering total returns significantly ahead at an All Retail market level (by 130 bps) as well as at the individual retail individual subsector level. This outperformance clearly demonstrates the combined benefits of our scale, our range of high quality retail assets and the market leading customer service we offer occupiers. This outperformance is not just short-term: our retail portfolio has generated strong relative total returns over each of the last three years.

The value of our UK retail portfolio was 1.0% lower at £5.9 billion with the benefits of asset management initiatives and another positive performance from superstores partially offsetting outward yield shift across the rest of the retail portfolio. Our retail capital returns outperformed the All UK Retail benchmark by 130 bps. Yield shift across the UK portfolio at 6 bps was significantly less than the market at 14 bps.

Our occupational metrics in the UK remain strong. ERVs were maintained across the portfolio outperforming on both a sector level (by 40 bps) and a subsector basis; occupancy remained high at 98.3%, in line with 31 March 2012; and footfall at 0.3% ahead, outperforming the market by 300bps with retail parks showing the strongest relative performance at 430 bps. Leases in administration were 0.6% of total rent at the half year end, including the impact of JJB, of which a significant proportion have now been re-let or reassigned. UK like for like net rental income growth was strong at 1.9% with all subsectors positive.

In Europe, which accounts for 2% of our portfolio, the value of our portfolio fell by 9.3% to £247 million. This was principally driven by falls in the value of the assets in PREF, the European fund in which we have a 65.3% share, which were impacted by both outward yield shift and rental concessions.

Asset Management

Although the market remains tough and overall deals are taking longer to conclude, we continue to benefit from the changes taking place in the market as retailers respond to the significant changes in consumers' shopping behaviour. Retailers are aggressively managing their portfolios to ensure they are in the best quality spaces to satisfy consumers' demands for experiential, convenient and functional shopping. Our portfolio is well matched to these changing requirements. Because our estate remains nearly fully occupied and in demand, we continue to agree lettings ahead of ERV. Lettings have now been ahead of ERV for each period since 30 September 2010, over which period, our ERVs have grown by 2.1% (IPD: -0.7%). Our pipeline remains encouraging with just under 380,000 sq ft of space under offer, overall ahead of ERV.

We agreed 403,000 sq ft of lettings and renewals in the half, on average 3.1% ahead of ERV and ahead of ERV for each subsector. Over 70% of the lettings were above or in line with ERV. Our letting activity was focused on improving and evolving the retail environment on our schemes by leveraging our relationships with existing retailers; improving the retail offer with new trading formats; and increasing the proportion of food and leisure.

At Fort Kinnaird in Edinburgh, we signed 70,000 sq ft of leasing initiatives which included the expansion and refitting of Next's existing store. Smyth's Toys and Mamas and Papas also recently opened new units. Further to this, subject to planning, we are extending the park to include a cinema, 6 restaurants and a 60,000 sq ft department store (including a 30,000 sq ft mezzanine) which has been pre-let to Debenhams.

At Meadowhall, we continued our successful strategy to broaden the centre's overall appeal by widening its catchment area, attracting more affluent consumers and by extending the time people spend there. 41,000 sq ft of lettings since the beginning of the year include Armani Exchange, Tessuti, Lego and Crocs with Carluccio's also opening in the new refurbished food court. These lettings further improved the overall quality of the retail and food offer and maintaining high occupancy levels. Footfall grew by 2.8%.

Development

We have 673,000 sq ft of committed retail development underway in the UK which will take advantage of the lack of new high quality retail space. These include the major redevelopment of Whiteley Shopping Centre, a 317,000 sq ft next generation scheme between Southampton and Portsmouth which is scheduled to open in May 2013. Works are progressing well and the scheme is nearly 80% pre-let to the likes of M&S, Next, H&M, River Island, Boots and JD Sports. At Glasgow Fort, our fully pre-let 45,000 sq ft cinema and restaurant extension which will improve the scheme's leisure offer, is scheduled to open in September 2013. Our committed pipeline also includes the forward funding of a 310,000 sq ft retail and leisure development in Hereford which we will own on completion.

We are progressing with planning on a further 713,000 sq ft of prospective development initiatives in the UK. This includes: cinema additions at Broughton Park Chester and Fort Kinnaird Edinburgh; and an extension to our existing shopping centre at Surrey Quays. We have also recently received planning permission for a major external refurbishment of Debenhams' flagship store in Oxford Street.

In Europe, the new 1.4 million sq ft Puerto Venecia shopping centre in Zaragoza successfully opened on schedule in early October. On opening, the shopping centre was 90% pre-let/under offer to an extensive range of international and national brands including all of the Inditex Group's brands, Desigual, H&M and Mango along with key anchors El Corte Inglés and Primark. The centre has traded well since opening with footfall of over 2 million in the first 4 weeks.

Investment Activity

We agreed or exchanged £329 million of retail properties including seven superstores and the Beehive retail park in Cambridge. Details of the sales are provided in the Business Review.

In July, we entered into a 50:50 joint venture at Eden Walk Shopping Centre in Kingston-upon-Thames with the existing owner Universities Superannuation Scheme (USS). The purchase price of £41.5 million, represents a net initial yield of 5.35%. Eden Walk is a 276,000 sq ft open shopping centre in the centre of Kingston, anchored by Marks & Spencer, Sainsbury's, Boots and BHS. Kingston, which is in the south west of London, has one of the strongest consumer catchment areas in the UK with a high proportion of young affluent residents. We are responsible for asset management of the centre and are also acting as development manager to assess and progress what we believe is a significant medium-term development opportunity.

In October, we signed a joint venture agreement at Meadowhall with Norges Bank Investment Management, following their purchase of a 50% stake from our previous partner, London and Stamford. Under the agreement, we will continue to manage the asset.

After the half year end, we signed a £90 million forward funding agreement to enable the development of a 310,000 sq ft scheme in Hereford city centre which we will own on completion. The open air scheme, on the site of Hereford's former cattle market, will comprise 22 retail units, seven restaurants and a six-screen cinema. More than 50% of the space has already been pre-let. Debenhams will anchor the scheme with an 84,000 sq ft department store with Waitrose, Next, TK Maxx, Frankie & Benny's and the Odeon all committing to the scheme. Work is expected to start on site later this year with completion in spring 2014.

OFFICES REVIEW

Highlights

· Our focus on Central London drives continued outperformance - total returns outperformed IPD All Offices by 270 bps

· Offices portfolio valuation +2.2% to £3.8bn; investment portfolio +1.0%

· 547,000 sq ft of leasing activity; lettings and extensions on average 7.5% ahead of ERV

· Over 300,000 sq ft of lease extensions at Broadgate to an average lease term of 9 years

· Like-for-like occupancy up 30 bps to 98.3%; occupancy including 199 Bishopsgate following practical completion at 96.6%

· Ahead of investment case on developments: further £50 million of profit crystallised; £175 million of profit still to come on current valuers' estimates

· Developments 56% pre-let/under offer; 97% contracts placed; projects on time and budget

· Greater focus on West End (44% of Central London portfolio), reflecting Clarges purchase and development progress

Performance

Our Offices business had another good period due not only to our focus on the right locations in London but also to the quality of our customer services and the success of our development programme. We outperformed the broader All Offices IPD benchmark and the individual City and West End subsectors on both total and capital returns.

The value of our Offices portfolio rose by 2.2% to £3.8 billion: capital returns were 2.3% outperforming the All Office benchmark by 330 bps. Of the £80 million uplift, around 30% was contributed by asset management initiatives (mainly lettings and lease extensions at Broadgate) and the expiry of rent frees in the investment portfolio with development contributing the remainder. We have now crystallised £216 million of profit (24 pence per share) from the current development programme, already generating a 10.7% profit on cost, ahead of our original investment case, with another £175 million still expected to be realised based on our valuers' current estimates.

Our operational metrics remain robust: our ERV growth continued to be positive (at +1.0%); we signed lettings and lease extensions comfortably ahead of ERV (+7.5%); and on a like-for-like basis, occupancy rose by 30 bps to 98.3%. Including our 199 Bishopsgate development, which only achieved practical completion in September, our occupancy was 96.6%. Rents subject to break or expiry over the next three years have significantly reduced from 21.2% at September 2009 to 6.4%. Like for like net rental income fell 0.4% as lease extensions impacted near term rental income, through short-term rent incentives.

Asset management

The quality of our buildings and our customer service means occupiers are not only choosing to come to our buildings but are also signing significant extensions to stay in our properties. Our asset management activity builds on our successful track record of attracting and retaining occupiers in recent years.

Since the beginning of the year, we have signed leasing initiatives on 547,000 sq ft of space with lettings and lease extensions (including pre-lets) signed on average at 7.5% ahead of ERV. Our activity primarily focused on lease extensions which accounted for 412,000 sq ft of total leasing. We also let 99,000 sq ft reflecting the high occupancy levels in our investment portfolio at 8.7% above ERV. A significant proportion of our leasing activity was at Broadgate, where we agreed long term extensions with Herbert Smith (315,000 sq ft) and F&C (54,000 sq ft) at Exchange House and 10 Exchange Square. At Broadgate Tower, we agreed 50,000 sq ft of lettings with Itochu, Banco Itau and Hill Dickinson at rents accretive to ERV increasing occupancy to 93.2%. All of this leasing activity has increased the average weighted lease length at Broadgate to 8.1 years, excluding pre-lets.

In addition, after the end of the half year, we signed a minimum 2 year extension with ICAP (174,000 sq ft) at 1-2 Broadgate which secures their lease until at least 2019.

Development

We are generating significant incremental returns from our development programme in Central London and we remain well ahead of our investment case. The value of our committed office developments rose by 6.9% to £724 million. The uplift in the first half was driven by a combination of profit release on buildings in the West End due for practical completion next year; the pre-letting of additional space at NEQ; increases in estimated rental values and the release of certain contingencies following the successful placing of building contracts.

In the West End, we are on schedule to complete our developments at Regent's Place (10, 20 and 30 Brock Street), 10 Portman Square and Marble Arch House during 2013. We are encouraged by the levels of interest we have seen from potential occupiers ahead of practical completion which is less common in the West End than the City. At 10 Brock Street, where we are progressing well with cladding and Cat. A fit out, we let a further 29,500 sq ft of office space to Debenhams, taking their total pre-let to 174,000 sq ft, around half the building. Post the end of the half year, we completed a 24,500 sq ft pre-let to Aspect Capital at 10 Portman Square at a headline rent of over £90 psf taking our development programme to 56% pre-let. We have a further 34,400 sq ft under offer after the year end including 24,400 sq ft at 10 Portman Square. In total, all the pre-lettings agreed and under offer at 10 Portman Square are 7% ahead of September ERVs.

In the City, where we are already nearly 70% pre-let, we have reached practical completion at 199 Bishopsgate and are making good progress on our two remaining developments. At The Leadenhall Building, building works have now reached the 29^th floor and at 5 Broadgate, which is fully let to UBS, work has commenced on the first core which is up to level 3.

We have a strong track record in residential development in Central London: since December 2009, we have committed £250 million to 230,000 sq ft of residential developments both within our West End office developments and on a standalone basis. During the half, we sold 18 residential units for a total of £17 million. Prices achieved were well ahead of investment case bringing our total proceeds from our residential developments since December 2009 to £126 million. We currently have a further £8.3 million of units under offer. We also have further potential residential development opportunities at Aldgate Place, a development site conditionally acquired in a joint venture with Barratt's last year.

Investment Activity

We believe that selective development in Central London will generate good returns over the medium term given the continuing attractions of the capital to occupiers and investors and the on-going relative short supply of high quality space. We are investing in replenishing our office and residential pipeline and continue our strategy of a moving the weighting of our portfolio from the City toward the West End.

In July, we agreed to purchase the Clarges Estate for £130 million, a development site of nearly one acre in the heart of Mayfair, Central London with an existing planning consent for a 191,000 sq ft mixed office and residential scheme. The transaction was completed after the year end and we are well advanced on developing a revised scheme and expect to submit a further planning application in the New Year.

FINANCIAL REVIEW

Highlights

· Underlying PBT up 3.8% to £137 million, IFRS PBT of £109 million (HY 2011/12: £331 million)

· Underlying diluted EPS up 4.1% to 15.2p driven by acquisitions

· EPRA Net Asset Value per share at 596 pence, 0.2% ahead of 31 March 2012 (595 pence)

· Total accounting return of 5.3% for the 12 months to 30 September 2012

· Dividend increased to 6.6 pence per share for Q2; half year dividend of 13.2 pence

· £917 million of financing signed, improving liquidity, reducing the cost of debt and diversifying the debt investor base

Income Statement

The group financial statements are prepared under IFRS. The income statement includes valuation movements on investment properties and the after tax results of joint ventures and funds are shown as a single line. The balance sheet includes the net investment in joint ventures and funds as a single line.

Management reviews the performance of the business principally on a proportionally consolidated basis (i.e. on a line-by-line basis) and comments on movements in the income statement provided in the financial review below are made on this basis. Income statements and balance sheets which show British Land's interests on this basis are also included in Table A within the supplementary disclosures.

6 months to 30 September	2012			2011
	Group	JVs & Funds	Prop Consol	Group	JVs & Funds	Prop Consol
	£m	£m	£m	£m	£m	£m
Gross rental income	149	135	284	146	137	283
Property outgoings	(7)	(5)	(12)	(7)	(7)	(14)
Net rental income	142	130	272	139	130	269
Net financing costs	(39)	(65)	(104)	(34)	(73)	(107)
Net rental income less finance	103	65	168	105	57	162
Fees & other income	8	-	8	8	-	8
JVs & Funds underlying profit	63			54
Administrative expenses	(37)	(2)	(39)	(35)	(3)	(38)
JVs & Funds underlying profit		63			54
Underlying profit before tax	137		137	132		132
IFRS profit before taxation	109		109	331		331
Underlying diluted EPS	15.2p		15.2p	14.6p		14.6p
Dividend per share	13.2p		13.2p	13.0p		13.0p

Net rental income, including our share of joint ventures and funds, increased 1.1% to £272 million for the 6 months ending 30 September 2012. The impact of acquisitions added £7 million, including the Virgin Active portfolio. This more than offset the impact of disposals and assets transferred to the development program (£5 million).

On a like-for-like basis, UK net rental income was 1.2% higher than a year ago. In UK retail, like-for-like net rental income increased 1.9%, with improvements across all subsectors. This has been offset by a 0.4% downward movement in the office portfolio. West End offices have been impacted by lease extensions and space taken back, which we plan to re-let once refurbished, partially offset with City offices delivering a 1.4% increase, driven by new lettings. UK occupancy remains strong at 98.3% on a like for like basis and 97.7% including 199 Bishopsgate which achieved practical completion in September. Our average lease length is 11.1 years. A quarter of rents are subject to annual RPI or fixed uplifts. Leases in administration account for only 0.6% of our rent profile as at 30 September 2012.

Administrative costs have increased by £1m as a result of the Group's investment in our asset management and analytical functions and inflation, partially offset by our continued focus on cost containment.

The Group measures its operating efficiency as the proportion of gross rental income represented by its net operating costs (representing property outgoings and administrative expenses, net of fees and other income). The ratio for the half year was 15.1% (half year 2011: 15.5%) and this remains efficient and competitive. In the near term we expect this to increase as the cost of our current developments reaching practical completion increases property outgoings.

Net financing costs have decreased in the half year due principally to the impact of disposals and increased interest capitalised on developments offset by the interest impact of financing acquisitions. In the current half year, £7 million of financing costs have been capitalised into development projects. Capitalisation of financing costs is expected to increase as we move into the peak phase of these developments over the next 18 months. Interest capitalisation will cease on practical completion of these developments.

The key drivers discussed above have increased underlying profit before tax by £5 million, or 3.8%, to £137 million for the 6 months ended 30 September 2012. Underlying diluted earnings per share for the 6 months ended 30 September 2012 increased 4.1% to 15.2 pence (half year 2011: 14.6 pence) based on underlying profit after tax of £136 million (half year 2011: £130 million) and weighted average diluted number of shares of 894 million (half year 2011: 893 million).

Rental Growth Potential

The Group has significant rental growth potential in its property portfolio. The table below shows how current rents will grow following expiry of rent free periods, contracted rental uplifts and development lettings.

	Annualised Gross Rent
	Cash flow basis £m¹	Accounting basis £m
Current (passing) rent	528²
Expiry of rent free periods³	51	561²
Fixed and minimum uplifts^3,4	15
RPI uplifts^3,5	8	8
Developments - pre-let²	41	35
Developments - to let²	42	36
Rent review uplifts³	6	6
Uplift from reletting of expiries and vacancies³	23	18
Total	714	664
Of which contracted	635	596

¹ gross rents on a cash basis plus, where rent reviews are outstanding, any increases to ERV (as determined by the Group's external valuers), less any ground rents payable under head leases

² adjusting for acquisitions, disposals and pre-lets made post period end.

³ over the next 5 years

⁴ All contracted fixed and minimum uplifts (EPRA and non-EPRA)

⁵ Illustrative impact based on growth in RPI of 2.5%pa

BALANCE SHEET

	As at 30 September 2012			As at 31 March 2012
	Group	JVs & Funds	Prop Consol	Group	JVs & Funds	Prop Consol
	£m	£m	£m	£m	£m	£m
Properties at valuation	5,466	4,922	10,388	5,414	4,923	10,337
Investment in JVs & Funds	2,442			2,309
Other non-current assets	48	(2)	46	28	(11)	17
	7,956	4,920	10,434	7,751	4,912	10,354
Other net current liabilities	(91)	(74)	(165)	(132)	(110)	(242)
Net debt	(2,460)	(2,328)	(4,788)	(2,229)	(2,461)	(4,690)
Other non-current liabilities	(13)	(76)	(89)	(9)	(32)	(41)
JVs & Funds' net assets		2,442			2,309
EPRA net assets¹	5,392		5,392	5,381		5,381
EPRA adjustments¹			(315)			(277)
IFRS net assets			5,077			5,104
EPRA NAV per share			596p			595p

¹ EPRA net assets exclude the mark to market on effective cash flow hedges and related debt adjustments and deferred taxation on revaluations. It also includes trading properties at fair value and is diluted for the impact of share options

At 30 September 2012, EPRA Net Asset Value per share was 596 pence, an increase of 0.2% on the 31 March 2012 comparative. Property revaluation movements are flat for the half year, outperforming the market with capital returns 200 bps ahead of IPD, demonstrating the resilience of our portfolio in a tough investment market. Our total accounting return for the 6 months ended 30 September 2012 is 2.4% (5.3% for the 12 months to 30 September 2012).

Net Debt and Financing

Net debt (EPRA) basis at 30 September 2012 was £2.5 billion for the Group and £4.8 billion including our share of joint ventures and funds. The principal value of gross debt excluding cash, short term deposits and liquid investments was £2.7 billion for the Group and £5.1 billion on a proportionally consolidated basis. The strength of the Group's balance sheet has been reflected in British Land's senior unsecured credit rating which remains rated by Fitch at A-.

The proportionally consolidated LTV increased marginally to 46.0% at 30 September 2012 (31 March 2012: 45.3%), due to expenditure on developments. With prospective development spend of £490 million on our committed development programme, principally in the next 18 months, our LTV is expected to increase further. However, asset recycling is likely and the proceeds may partially offset the development spend .

Financing statistics	Group	Prop Consol
EPRA Net debt	£2,460m	£4,788m
Principal value of gross debt	£2,672m	£5,122m
Weighted average debt maturity	8.9 years	9.4 years
Weighted average interest rate of drawn debt	4.0%	4.4%
% of debt at fixed/capped rates	89%	95%
Interest cover¹	2.9 times	2.3 times
Loan to value²	31.5%	46.0%

¹Underlying profit before interest and tax / net interest

² debt to property and investments

At 30 September 2012 the Group had £2.3 billion of available committed banking facilities. We now have £1 billion of facilities with maturities of more than 3 years. The Group also has £207 million of liquid investments and cash and short-term deposits. Cash and short-term deposits are temporarily high at each quarter end due to rents received just before each quarter end and interest and scheduled debt amortisation being paid just after.

We continued to achieve attractive financings, raising £917 million (BL share £703 million) of bonds and facilities since the start of this financial year on competitive terms and which improve liquidity. The number of new institutions involved further diversifies the debt investor base and brings total new financings arranged over the last 18 months to £2.5 billion (BL share £2.0 billion).

In May 2012, HUT signed a new £350 million five year loan facility. A £250 million term loan was used to fully repay the existing credit facility. The interest rate on the term loan has been swapped to a fixed rate, resulting in an all-in rate including margin and arrangement fees below the fixed interest rate under the previous financing. A further £100 million revolving loan facility will provide flexibility for HUT in respect of acquisitions, capital projects, disposals and general business purposes.

In September 2012, the Group issued a £400 million 5 year convertible bond on highly attractive terms benefiting from strong investor demand. The coupon is 1.5% and if converted, British Land has the option to settle in shares or cash or a combination of shares and cash. The conversion price was set at 693 pence, a 31.25% premium to the share price at the time and will be adjusted down to reflect any incremental dividends paid over the current level of 26.4 pence per share. The convertible has further improved our diversity of sources of finance with only 15% of our debt currently drawn comprising unsecured revolving bank facilities.

Since the beginning of the year, we also completed over £140 million of new bi-lateral committed revolving loan facilities for British Land with several banks on our usual unsecured financial covenants.

The weighted average interest rate reduced from 4.6% to 4.4% on a proportionally consolidated basis principally incorporating the benefits of refinancings. Average debt maturity of 9.4 years compares with average lease lengths of 11.1 years.

CASH FLOW

Net cash inflow from operating activities for the six months was £92 million including receipts from joint ventures and funds of £62 million. Investing activity absorbed a net £238 million, of which £47 million was spent on purchases, £93 million on development and capital expenditure, £182 million on investments in and loans to funds and joint ventures, partially offset by receipts from disposals of £90 million. Disposals in the period include: Liverpool Church Street, Leeds Electric Press and our investment in HIF. Acquisitions include Eden Walk in Kingston. Since the end of the half year, we have completed the disposal of the Beehive Centre, Cambridge (£109 million proceeds) and the acquisition of the Clarges Estate, Mayfair (£122 million payment made on completion).

DIVIDENDS

The second quarter dividend of 6.6 pence per share, totalling £59 million, is payable on 15 February 2013 to shareholders on the register at close of business on 11 January 2013. The Board will announce the availability of the Scrip Dividend Alternative via the Regulatory News Service and on our website (www.britishland.com), no later than 4 business days before the ex-dividend date of 9 January 2013. In respect of the first quarter dividend for 2012-13, some 39% of shareholders opted for the scrip alternative, in lieu of £23 million in cash dividends. The Board expects to announce the split between PID and non-PID income at that time.

The total dividend for the half year is 13.2 pence per share, an increase of 1.5% on the 2011/12 half year dividend. This is in line with the announcement made by the Board at the full year results in May 2012. In line with this announcement the Board's intention is for the 2012/13 financial year dividend to be 26.4 pence per share.

ACCOUNTING JUDGEMENTS

In preparing these financial statements, the key accounting judgement relates to the carrying value of the properties and investments, which are stated at market value. The Group uses external professional valuers to determine the relevant amounts.

The primary source of evidence for property valuations should be recent, comparable market transactions on an arms-length basis. However, the valuation of the Group's property portfolio is inherently subjective, as it is made on the basis of assumptions made by the valuers which may not prove to be accurate. It should be noted that the external valuations received for our properties in Portugal, Spain and Italy include a market uncertainty clause due to the lack of transactional evidence and uncertainty over the economic situation in those markets.

REIT status: the Company has elected for REIT status. To continue to benefit from this regime, the Group is required to comply with certain conditions as defined in the REIT legislation. Management intends that the Group should continue as a REIT for the foreseeable future.

Accounting for joint ventures and funds: an assessment is required to determine the degree of control or influence the Group exercises and the form of any control to ensure that financial statement treatment is appropriate. Interest in the Group's joints ventures is commonly driven by the terms of the partnership agreements which ensure that control is shared between the partners. These are accounted for under the equity method, whereby the consolidated balance sheet incorporates the Group's share of the net assets of its joint ventures and associates. The consolidated income statement incorporates the Group's share of joint venture and associate profits after tax upon elimination of upstream transactions.

PRINCIPAL RISKS AND UNCERTAINTIES

Effective management of risk is considered to be fundamental to the success of the company's operations and delivery of performance. The company's approach to risk management remains as set out on pages 38-39 of the Annual Report and Accounts published in May 2012. Governance and oversight of the processes has been enhanced by the establishment of a Risk Committee in the period. This committee of the executive directors holds responsibility for delivery of both strategic and operational aspects of risk management.

The Directors' assessment is that the principal risks and uncertainties that the company is exposed to and which may impact performance in the remaining six months of the financial year, are unchanged from those set out on pages 40-42 of the Annual Report and Accounts published in May 2012.

Within those principal risks and uncertainties, the Directors consider the interlinked external risks of economic uncertainty, occupier demand and tenant default, investor demand, and availability and cost of finance to have the greatest scope to impact performance in the remaining six months of the financial year.

Whilst in many respects the UK economy appears to have stabilised, this position remains fragile with little growth anticipated in the short term. Major threats to global economic stability, and hence the UK economy, include the pending fiscal cliff in the United States and potential economic failure of one or more members of the Eurozone or a disorderly break-up of that monetary union. Whilst British Land does have some exposure to specific country and currency risk through ownership of properties located within the Eurozone, this is limited, with total Eurozone exposure representing only 2% of gross assets.

A greater risk area for British Land is the potential dislocation in property and financing markets which may arise from a disorderly break-up the Eurozone or further slowing in global economic growth if the fiscal cliff is not resolved. The resultant reduction in liquidity and availability of financing coupled with the impact on the economic outlook may result in significant adverse property valuation movements affecting our financial position and performance.

In order to ensure that our business is sustained should this eventuality arise, we consider such scenarios in monitoring our covenant headroom. We also mitigate the impact of such dislocation by maintaining an appropriate level of committed financing, in terms of maturity, diversity of sources and available undrawn facilities. This provides adequate comfort that we would be able to meet our funding requirements in the event of a deterioration of liquidity in lending markets.

The medium term outlook is for interest rates to remain low but a risk of increasing benchmark rates or credit spreads exists which may adversely impact the cost of finance and consequently dampen investor appetite or inflate required investor returns.

With public spending cuts continuing, consumer confidence, although stable, is expected to remain fragile meaning that an elevated risk of occupier default exists. We actively manage our tenant mix to minimise exposure to occupiers at risk and have a strong record of re-letting space that does become available, evidenced by our continuing high occupancy rate.

British Land's identified principal risks and uncertainties are summarised below. Further information on these, including the approach to mitigating these risks can be found on pages 40-42 of the Annual Report and Accounts published in May 2012.

External Risks

Economic uncertainty (notably Eurozone) - Continued global economic uncertainty presents risks to financing and property markets as well as the businesses of our occupiers. Notably, failure of one or more members of the Eurozone could cause serious dislocation to the property and finance markets and could directly impact valuations and performance of British Land's limited property holdings in mainland Europe as well as treasury liquidity.

Investor demand - Reduction in investor demand for UK real estate may result in falls in asset valuations and could arise from variations in the health of the UK economy, the attractiveness of investment in the UK, availability of finance to property investors and the relative attractiveness of other asset classes.

Occupier demand and tenant default - Underlying income, rental growth and capital performance could be adversely affected by weakening occupier demand resulting from variations in health of the UK economy and corresponding weakening of consumer confidence and business activity and investment. In addition, occupier failures may adversely impact underlying income and capital performance. Changing consumer and business practices (e.g. Internet shopping, flexible working practices and demand for energy efficient buildings), new technologies and alternative locations may result in earlier than anticipated obsolescence of our buildings if evolving occupier requirements are not met.

Availability and cost of finance - Reduced availability of financing to real estate investors may result in weaker investor demand for real estate and adversely impact British Land's ability to refinance expiring facilities. Increasing finance costs would reduce British Land's underlying income and increase required returns for real estate investors.

Catastrophic business event - An external event such as a civil emergency, including a large scale terrorist attack, or environmental disaster could severely disrupt global markets (including property and finance) and cause significant damage and disruption to British Land's portfolio and operations.

Internal Strategic Risks

Investment strategy - Significant underperformance could result from inappropriate determination of property investment strategy, including consideration of: sector selection and weighting; timing of investment and divestment decisions; exposure to developments; sector, asset, tenant, region concentration; and engagement with co-investment partners.

Development - Development risks could adversely impact underlying income and capital performance including: development letting exposure; construction timing and costs; major contractor failure; and adverse planning judgements.

Income sustainability - Sustainability of our income streams is required to be considered in: execution of investment strategy and capital recycling, notably timing of reinvestment of sale proceeds; nature and structure of leasing activity; and nature and timing of asset management and development activity. Inappropriate decision-making and execution in respect of the above may result in disruptions to underlying profit growth outside the scope of strategic plans.

Capital Structure - gearing - An inappropriate gearing level may result in significant net asset value underperformance. An increase in the gearing level increases the risk of a breach of covenants on borrowing facilities and may increase finance costs.

Financing strategy execution - Failure to manage the refinancing requirement may result in a shortage of funds to sustain the operations of the business or repay facilities as they fall due.

Corporate and Compliance Risks

Communication - Failure to adequately communicate the Company's strategy and explain performance in respect of this may result in an increased disconnect between investor perceptions of value and actual performance.

People - Failure to recruit, develop and retain staff and directors with the right skills and experience may result in significant underperformance.

DIRECTORS' RESPONSIBILITY STATEMENT

We confirm that to the best of our knowledge:

(a) the condensed set of financial statements has been prepared in accordance with IAS 34;

(b) the interim management report includes a fair review of the information required by DTR 4.2.7R (indication of important events during the first six months and description of principal risks and uncertainties for the remaining six months of the year); and

(c) the interim management report includes a fair review of the information required by DTR 4.2.8R (disclosure of related party transactions and changes therein).

GOING CONCERN

The Group's business activities, together with the factors likely to affect its future development, performance and position are set out in the Chief Executive's and Business Review. The financial position of the Group, its cash flows, liquidity position and borrowing facilities, are described in the accounts below.

The Group has considerable undrawn debt facilities and cash deposits in excess of current drawn banking facilities. There is substantial headroom against the covenants for its unsecured banking facilities, details of which are included in Note 6 to the accounts. It also benefits from a diverse and secure income stream from leases with long average lease terms. As a consequence, the directors believe that the Group is well placed to manage its business risks satisfactorily despite the current uncertain economic outlook.

The directors have a reasonable expectation that the Company and the Group have adequate resources to continue in operational existence for the foreseeable future. Thus, they continue to adopt the going concern basis in preparing the financial statements.

By order of the Board, Lucinda Bell, Finance Director

SUPPLEMENTARY TABLES (Data includes Group's share of Joint Ventures and Funds) Portfolio Valuation
At 30 September 2012	Group	JVs & Funds¹	Total	Change²
	£m	£m	£m	%
Retail³:
Retail parks	1,848	803	2,651	(2.3)
Superstores	135	1,175	1,310	0.5
Shopping centres	470	1,086	1,556	(0.3)
Department stores	430	-	430	(0.6)
UK Retail	2,883	3,064	5,947	(1.0)
Europe Retail	-	247	247	(9.3)
All Retail	2,883	3,311	6,194	(1.4)
Offices³:
City	542	1,603	2,145	1.5
West End	1,527	-	1,527	3.2
Provincial	84	4	88	1.3
All Offices	2,153	1,607	3,760	2.2
Other³	429	5	434	1.2
UK Total	5,465	4,676	10,141	0.2
Total	5,465	4,923	10,388	0.0
¹ group's share of properties in joint ventures and funds
² valuation movement during the period (after taking account of capital expenditure) of properties held at the balance sheet date, including developments (classified by end use), purchases and sales
³ including developments

Portfolio Net Yields¹
At 30 September 2012 (excluding developments)	EPRA net initial yield %	EPRA topped up net initial yield %²	Overall topped up net initial yield %³	Net reversionary yield %	Net equivalent yield %
Retail:
Retail parks	5.6	5.7	5.9	5.8	5.9
Superstores	5.1	5.1	5.1	5.0	5.1
Shopping centres	5.4	5.6	5.7	6.0	5.8
Department stores	5.9	5.9	8.9	4.8	6.6
UK Retail	5.4	5.6	5.9	5.6	5.7
Europe Retail	6.7	6.7	6.7	7.8	8.0
All Retail	5.5	5.6	5.9	5.7	5.8
Offices:
City	4.1	6.0	6.0	6.1	5.7
West End	4.4	5.4	5.6	5.8	5.6
Provincial	7.2	7.2	7.2	5.8	6.5
All Offices	4.3	5.8	5.9	6.0	5.7
Other	7.6	7.6	9.7	6.0	8.5
UK Total	5.1	5.7	6.0	5.7	5.8
Total	5.2	5.7	6.0	5.8	5.9
¹including notional purchaser's costs
²including rent contracted from expiry of rent-free periods and fixed uplifts not in lieu of growth
³ including fixed/minimum uplifts (excluded from EPRA definition)

Portfolio Weighting
At 30 September	2011	2012	2012
%		(current)	(pro-forma¹)
Retail:
Retail parks	26.5	25.5	23.0
Superstores	13.3	12.6	11.7
Shopping centres	15.0	15.0	14.8
Department stores	4.4	4.1	3.9
UK Retail	59.2	57.2	53.4
Europe Retail	2.7	2.4	2.2
All Retail	61.9	59.6	55.6
Offices:
City	19.7	20.7	22.4
West End	12.9	14.7	17.3
Provincial	1.0	0.8	0.8
All Offices	33.6	36.2	40.5
Other	4.5	4.2	3.9
Total	100.0	100.0	100.0
¹ pro forma for committed developments to date at estimated end value (as determined by the Group's external valuers, except post valuation acquisitions which are determined by management) and disposals completed post half end.

Gross Rental Income¹
(Accounting Basis) £m	6mths to 30 September 2012			Annualised as at 30 September 2012
	Group	JVs & Funds	Total	Group	JVs & Funds	Total
Retail:
Retail parks	54	22	76	108	45	153
Superstores	4	32	36	8	62	70
Shopping centres	17	31	48	32	62	94
Department stores	16	-	16	31	-	31
UK Retail	91	85	176	179	169	348
Europe Retail	-	8	8	-	22	22
All Retail	91	93	184	179	191	370
Offices:
City	13	41	54	26	81	107
West End	27	-	27	51	-	51
Provincial	3	-	3	6	-	6
All Offices	43	41	84	83	81	164
Other	16	-	16	32	-	32
Total	150	134	284	294	272	566
¹gross rental income will differ from annualised rents due to accounting adjustments for fixed & minimum contracted rental uplifts and lease incentives

Annualised Rent & Estimated Rental Value (ERV)
At 30 September 2012 (excluding developments)	Annualised rent (valuation basis) £m¹			ERV £m	Average rent £psf
At 30 September 2012 (excluding developments)	Group	JVs & Funds	Total	Total	Contracted²	ERV²
Retail:
Retail parks	109	45	154	161	22.9	23.3
Superstores	8	62	70	70	21.4	21.3
Shopping centres	33	61	94	101	25.7	26.9
Department stores	27	-	27	22	12.5	10.2
UK Retail	177	168	345	354	21.9	22.4
Europe Retail		22	22	24	8.7	9.4
All Retail	177	190	367	378	20.1	20.6
Offices:
City	5	77	82	120	46.1	44.9
West End	50	-	50	65	43.8	44.3
Provincial	6	-	6	5	27.1	22.0
All Offices	61	77	138	190	44.3	43.5
Other	28	-	28	23	13.1	10.7
Total	266	267	533	591	23.2	23.4
¹ gross rents plus, where rent reviews are outstanding, any increases to ERV (as determined by the Group's external valuers), less any grounds rents payable under head leases, excludes contracted rent subject to rent free and future uplift
² Office average rent £psf is based on office space only.

Rent Subject to Open Market Rent Review
12 months to 30 September	2013	2014	2015	2016	2017	2013-15	2013-17
	£m	£m	£m	£m	£m	£m	£m
Retail:
Retail parks	28	20	18	26	17	66	109
Superstores	3	9	24	13	4	36	53
Shopping centres	9	9	15	12	12	33	57
Department stores	1	-	-	5	-	1	6
UK Retail	41	38	57	56	33	136	225
Europe Retail	-	-	-	-	-	-	-
All Retail	41	38	57	56	33	136	225
Offices:
City	8	37	26	5	13	71	89
West End	6	2	13	4	9	21	34
Provincial	-	-	1	5	-	1	6
All Offices	14	39	40	14	22	93	129
Other	-	-	-	-	-	-	-
Total	55	77	97	70	55	229	354
Potential uplift at current ERV	2	1	2	1	-	5	6

Rent Subject to Lease Break or Expiry
At 30 September	2013	2014	2015	2016	2017	2013-15	2013-17
	£m	£m	£m	£m	£m	£m	£m
Retail:
Retail parks	5	4	8	7	9	17	33
Superstores	-	-	-	-	-	-	-
Shopping centres	8	3	5	7	10	16	33
Department stores	-	-	-	-	-	-	-
UK Retail	13	7	13	14	19	33	66
Europe Retail	4	3	3	2	4	10	16
All Retail	17	10	16	16	23	43	82
Offices:
City¹	3	1	1	18	5	5	28
West End	2	1	4	1	14	7	22
Provincial	-	-	-	-	-	-	-
All Offices¹	5	2	5	19	19	12	50
Other	1	-	-	-	-	1	1
Total¹	23	12	21	35	42	56	133
% of contracted rent	3.7%	1.9%	3.5%	5.7%	6.7%	9.1%	21.5%
Potential uplift at current ERV	2	1	1	2	(2)	4	4

Lease Length & Occupancy
At 30 September 2012	Average lease length yrs		Occupancy rate %
(excluding developments)	To expiry	To break	Occupancy	Occupancy (overall)¹
Retail:
Retail parks	10.3	9.4	97.8	98.3
Superstores	15.7	15.7	100.0	100.0
Shopping centres	9.9	9.3	95.8	96.7
Department stores	29.1	25.5	100.0	100.0
UK Retail	12.7	11.8	97.8	98.3
Europe Retail	10.5	4.3	87.1	87.2
All Retail	12.6	11.4	97.2	97.6
Offices:
City	11.2	9.3	94.9²	95.9²
West End	10.3	8.0	96.8	97.6
Provincial	9.8	9.4	100.0	100.0
All Offices	10.9	8.9	95.7²	96.6²
Other	21.8	21.8	99.0	99.0
UK Total	12.5	11.3	97.1²	97.7²
Total	12.4	11.1	96.7²	97.3²
¹including accommodation under offer or subject to asset management
² including 199 Bishopsgate (development which reached practical completion immediately prior to the period end). When excluded occupancy (overall) for All Offices and UK Total is 98.3%, portfolio total 97.9%.

Major Assets
At 30 September 2012	BL Share	Sq ft	Rent	Occupancy	Lease
(excluding developments)	%	'000	£m pa¹	rate %²	length yrs³
Broadgate, London EC2	50	4,009	174	94.7	8.1
Regent's Place, London NW1	100	1,210	49	96.9	8.4
Meadowhall Shopping Centre, Sheffield	50	1,374	82	98.8	9.1
Tesco Superstores	50	2,659	60	100.0	15.6
Sainsburys Superstores	50	2,905	67	100.0	16.2
Ropemaker Place, London EC2	100	593	27	100.0	13.8
Teesside Shopping Park, Stockton-on-Tees	100	451	15	100.0	7.9
Drake Circus Shopping Centre, Plymouth	100	570	15	96.9	7.4
Debenhams, Oxford Street	100	363	16	100.0	26.5
York House, London W1	100	132	5	100.0	5.1
Glasgow Fort Shopping Park	41	442	16	98.7	7.2
St Stephens Shopping Centre, Hull	100	410	9	99.1	7.9
¹annualised contracted rent including 100% of Joint Ventures & Funds
² includes accommodation under offer or subject to asset management
³ to first break

Occupiers Representing over 0.5% of Rent
At 30 September 2012	% of total rent		% of total rent
Tesco plc	7.0	New Look	0.9
Sainsbury Group	6.0	TJX Cos Inc	0.9
Debenhams	4.2	Aegis Group	0.9
UBS AG	3.6	JPMorgan Chase Bank	0.9
Home Retail Group	2.9	Reed Smith LLP	0.8
Government	2.3	Cable & Wireless plc	0.8
Kingfisher (B&Q)	2.2	Gazprom	0.8
Virgin Active	2.0	Deutsche Bank AG	0.8
Next plc	2.0	Mayer Brown	0.8
Arcadia Group	2.0	Comet Group	0.7
Spirit Group	1.7	SportsDirect	0.7
Bank of Tokyo-Mitsubishi UFJ Ltd	1.6	Mothercare	0.7
Macquarie Group Limited	1.5	ICAP Plc	0.7
Asda Group	1.5	Lend Lease	0.7
DSG International	1.4	Markit Group	0.6
Herbert Smith	1.4	Hennes	0.6
Alliance Boots	1.3	Credit Lyonnais	0.6
The Royal Bank of Scotland plc	1.2	JD Sports	0.6
Marks and Spencer Plc	1.2	Pets at Home	0.6
Hutchison Wh	1.1	Henderson	0.6
House of Fraser	1.0	Carlson	0.5

Committed Developments
	BL Share	Sq ft	PC Calendar	Current Value	Cost to complete	Notional interest	ERV	Pre-let	Resi End Value⁴
	%	'000	Year	£m	£m¹	£m^1,2	£m³	£m	£m
Offices:
5 Broadgate	50	700	Q4 2014	139	123	22	19.2	19.2	-
The Leadenhall Building	50	610	Q2 2014	121	104	17	18.6	5.6	-
NEQ, Regents Place⁵	100	500	Q2 2013	288	68	8	19.6	9.4	113
10 Portman Square⁶	100	134	Q2 2013	101	25	2	9.0	2.1	-
Marble Arch House⁷	100	86	Q4 2013	33	27	3	3.9	-	15
39 Victoria Street	100	92	Q3 2013	42	23	3	4.9	-	-
Total Offices		2,122		724	370	55	75.2	36.3	128

Retail:
Whiteley Village, Fareham	50	317	Q2 2013	16	16	2	2.4	1.9	-
Glasgow Fort (Leisure)	41	46	Q3 2013	3	3	-	0.5	0.5	-
Hereford⁸	100	310	Q2 2014	-	79	8	5.3	2.4	-
Total Retail		673		19	98	10	8.2	4.8	-
Total Residential		62		49	22	4	-	-	91
Total Committed		2,857		792	490	69	83.4	41.1	219
Data includes Group's share of properties in Joint Ventures & Funds (except area which is shown at 100%)
¹ from 1 October 2012 to practical completion (PC)
² based on a notional cost of finance of 6%
³ estimated headline rental value net of rent payable under head leases (excluding tenant incentives)
⁴ parts of residential development expected to be sold, no rent allocated - of which £97 million completed or exchanged
⁵ includes 126,000 sq ft of residential
⁶ excludes 25,000 sq ft of off-site residential and retail (95-99 Baker Street), which was sold in the previous financial year. Also adjusted for lettings agreed post period end
⁷ includes 10,000 sq ft of residential
⁸ Hereford was acquired post half end, the information is therefore management estimates

Prospective Developments
At 30 September 2012	Sector	BL Share	Sq ft '000
Colmore Row, Birmingham	Office	100	284	Detailed planning consent
Glasgow Fort	Retail	41	170	Detailed planning consent
Surrey Quays	Retail	50	100	Detailed planning consent
Fort Kinnaird, Edinburgh	Retail	21	110	Planning submitted
Broughton Park, Chester	Retail	41	55	Planning submitted
Meadowhall Surrounding Land	Retail	50	47	Planning submitted
Power Court, Luton	Retail	100	200	Planning pending
Superstores extensions	Retail	50	31	Planning pending
Clarges House	Mixed use	100	191	Feasibility
Total Prospective			1,188

GLOSSARY

Annualised rent is the gross rent receivable on a cash basis as at the reporting date. Additionally where rent reviews are outstanding, any increases to applicable estimated rental value (as determined by the Group's external valuers), less any ground rents payable under head leases.

BREEAM (Building Research Establishment Environmental Assessment Method) assesses the sustainability of buildings against a range of criteria.

CACI Ltd is a wholly owned subsidiary of Consolidated Analysis Center Incorporated (CACI) providing marketing solutions and informational systems to local and central Government and to business from most industry sectors (including retail).

Capital return is calculated as the change in capital value of the UK portfolio, less any capital expenditure incurred, expressed as a percentage of capital employed over the period, as calculated by IPD. Capital returns are calculated monthly and indexed to provide a return over the relevant period.

Capped rents are subject to a maximum level of uplift at the specified rent reviews as agreed at the time of letting.

Collar rents are subject to a minimum level of uplift at the specified rent reviews as agreed at the time of letting.

CRC Energy Efficiency Scheme (previously known as the Carbon Reduction Commitment) is the UK Government's new mandatory scheme for carbon emissions reporting and pricing.

Credit rating A rating from an independent institution that assess creditworthiness or the credit risk, and provides publicly available credit ratings used by investors as well as analysts as a guide for investment decisions in regard to relative credit standing or strength. British Land are assessed by the credit rating agency Fitch. Other examples of credit rating agencies are Standard & Poor's and Moody's Investor Service.

Developer's profit is the profit on cost estimated by the valuers. The developers profit is typically calculated by the valuers to be a percentage of the estimated total development costs, including land and notional finance costs.

Development uplift is the total increase in the value (after taking account of capital expenditure and capitalised interest) of properties held for development during the period. It also includes any developer's profit recognised by valuers in the period.

Development construction cost is the total cost of construction of a project to completion, excluding site values and finance costs (finance costs are assumed by the valuers at a notional rate of 6% per annum).

EPRA is the European Public Real Estate Association, the industry body for European REITs.

EPRA Net Initial Yield is the annualised rents generated by the portfolio, after the deduction of an estimate of annual recurring irrecoverable property outgoings, expressed as a percentage of the portfolio valuation (adding notional purchaser's costs), excluding development properties.

EPRA earnings is the profit after taxation excluding investment property revaluations and gains/losses on disposals, intangible asset movements and their related taxation.

EPRA NAV per share is EPRA NAV divided by the diluted number of shares at the period end.

EPRA net assets (EPRA NAV) are the balance sheet net assets excluding the mark to market on effective cash flow hedges and related debt adjustments, deferred taxation on revaluations and diluting for the effect of those shares potentially issuable under employee share schemes.

EPRA NNNAV is the EPRA NAV adjusted to reflect the fair value of debt and derivatives and to include deferred taxation on revaluations.

EPRA 'topped-up' Net Initial Yield is the annualised rents generated by the portfolio, after the deduction of an estimate of annual recurring irrecoverable property outgoings, plus rent contracted from expiry of rent-free periods and uplifts agreed at the balance sheet date which are not intended to compensate for future inflation, expressed as a percentage of the portfolio valuation (adding notional purchaser's costs), excluding development properties.

EPRA vacancy rate is the estimated market rental value (ERV) of vacant space divided by ERV of the whole portfolio, excluding developments. This is the inverse of the occupancy rate.

Estimated rental value (ERV) is the external valuers' opinion as to the open market rent which, on the date of valuation, could reasonably be expected to be obtained on a new letting or rent review of a property.

Estimated (Net) Development Value is the estimated end value of a development project as determined by the external valuers for when the building is completed and fully let (taking into account tenant incentives and notional purchasers costs). It is based on the valuers view on ERVs, yields, letting voids and rent-frees.

Fair value is the estimated amount for which a property should exchange on the valuation date between a willing buyer and a willing seller in an arm's length transaction after proper marketing and where parties had each acted knowledgeably, prudently and without compulsion.

Fair value movement An accounting adjustment to change the book value of an asset or liability to its market value.

Gearing see Loan to Value (LTV).

Gross rental income is the gross accounting rent receivable (quoted either for the period or on an annualised basis) prepared under IFRS which requires that rental income from fixed/minimum guaranteed rent reviews and tenant incentives is spread on a straight-line basis over the entire lease to first break. This can result in income being recognised ahead of cash flow.

Gross Value Added (GVA) provides a snapshot of a company's overall contribution to the UK economy, both directly through activities and indirectly through spending.

Group is The British Land Company PLC and its subsidiaries and excludes its share of joint ventures and funds on a line-by-line basis (i.e. not proportionally consolidated).

Headline rent is the contracted gross rent receivable which becomes payable after all the tenant incentives in the letting have expired.

IFRS are the International Financial Reporting Standards as adopted by the European Union.

Income return is calculated as net income expressed as a percentage of capital employed over the period, as calculated by IPD.

Interest cover is the number of times net interest payable is covered by underlying profit before net interest payable and taxation.

IPD is Investment Property Databank Ltd which produces an independent benchmark of property returns.

Key performance indicators (KPIs) Activities and behaviours, aligned to both business objectives and individual goals, against which the performance of Land Securities employees is annually assessed. Performance measured against them is referenced in the Annual Report.

Lettings and Lease Renewals are divided between short term (less than two years lease length) and long-term (over two years lease length). Lettings and renewals are compared both to the previous passing rent as at the start of the financial year; and the ERV immediately prior to letting. Both comparisons are made on a net effective basis.

Like-for-like ERV growth is the change in ERV over a period on the standing investment properties expressed as a percentage of the ERV at the start of the period. Like-for-like ERV growth is calculated monthly and compounded for the period subject to measurement.

Like-for-like rental income growth is the growth in gross rental income on properties owned throughout the current and previous periods under review. This growth rate includes revenue recognition and lease accounting adjustments but excludes properties held for development in either period, properties with guaranteed rent reviews, asset management determinations and surrender premiums.

Loan to Value (LTV) is the ratio of principal value of gross debt less cash, short-term deposits and liquid investments to the aggregate value of properties and investments.

Mark-to-market is the difference between the book value of an asset or liability and its market value.

Net effective rent is the contracted gross rent receivable taking into account any rent-free period or other tenant incentive. The incentives are treated as a cost to rent and spread over the lease to the earliest termination date.

Net Equivalent Yield (NEY) is the weighted average income return (after allowing for notional purchaser's costs) a property will produce based upon the timing of the income received. In accordance with usual practice, the equivalent yields (as determined by the external valuers) assume rent is received annually in arrears.

Net Initial Yield (NIY) is the annualised rents generated by the portfolio, after the deduction of an estimate of annual recurring irrecoverable property outgoings, expressed as a percentage of the portfolio valuation (adding notional purchaser's costs), excluding development properties.

Net operating costs are property operating expenses and administrative expenses net of fees and other income.

Net rental income is the rental income receivable in the period after payment of direct property outgoings which typically comprise ground rents payable under head leases, void costs, net service charge expenses, and other direct irrecoverable property expenses. Net rental income is quoted on an accounting basis. Net rental income will differ from annualised net cash rents and passing rent due to the effects of income from rent reviews, net property outgoings and accounting adjustments for fixed and minimum contracted rent reviews and lease incentives.

Net reversionary yield is the anticipated yield, which the initial yield will rise to once the rent reaches the estimated rental value.

Occupancy rate is the estimated rental value of let units as a percentage of the total estimated rental value of the portfolio, excluding development properties. It includes accommodation under offer or subject to asset management (where they have been taken back for refurbishment and are not available to let as at the balance sheet date).

Over rented is the term used to describe when the contracted rent is above the estimated rental value (ERV).

Overall 'topped-up' Net Initial Yield is the EPRA Net 'topped-up' Initial Yield, adding all contracted uplifts to the annualised rents.

Passing rent is the gross rent, less any ground rent payable under head leases.

Planning

The 1947 Town and Country Planning Act requires all proposals, with a few exclusions, to secure planning permission from the local authority. It extends not only to new construction, but also to substantive changes of use of a property. There are various 'use classes'. Change of use to a different use class generally requires planning consent.

Planning consent gives consent for a development, and covers matters such as use and design. Full details of the development scheme must be provided in an application for full planning consent, including detailed design, external appearance and landscaping before a project can proceed. Outline planning consent establishes the broad outline of the scheme and is subject to the later approval of the details of the design.

Portfolio valuation movement is the increase in value of the portfolio (after taking account of capital expenditure and capitalised interest) of properties held at the balance sheet date and sales during the period, expressed as a percentage of the capital value at the start of the period plus net capital expenditure.

Property Income Distributions (PIDs) Profits distributed as PIDs are subject to tax in the hands of the shareholders as property income. PIDs are normally paid net of withholding tax currently at 20% which the REIT pays to the tax authorities on behalf of the shareholder. Certain types of shareholder (i.e. pension funds) are tax exempt and receive PIDs without withholding tax. Property companies also pay out normal dividends, called non- PIDs, which are treated as normal dividends and not subject to withholding tax.

Property valuation In accordance with usual practice, the Group's external valuers report valuations net, after the deduction of the prospective purchaser's costs, including stamp duty land tax, agent and legal fees.

Rack rented is the term used to describe when the contracted rent is in line with the estimated rental value (ERV), implying a nil reversion.

REIT (Real Estate Investment Trust)

The Government established REIT status in the UK in 2007 to remove tax inequalities between different real estate investors and aimed to improve overall investor access to real estate. REITs are companies which are exempt from corporate taxation on profits from property rental income and capital gains on the sale of investment properties.

REITs must distribute 90% of UK rental income in the form of property income dividends (PIDs). This makes the tax implications of investing in REITs equivalent to investing directly in property. REITs are also required to meet certain conditions including the proportion of total profits and assets accounted for by their property rental businesses. They remain liable to corporation tax on non-property investment businesses e.g. management fees and interest receivable.

The UK has had a tax exempt real estate regime since 1 January 2007. A number of other countries, notably the US, Australia and France also have tax exempt REIT regimes. British Land has been a REIT since 1 January 2007. The Government is looking to encourage the growth of the REIT sector. The 2011 budget proposals are looking to relax qualifying conditions to encourage new entrants.

Rent free period see Tenant (or lease) incentives.

Rent reviews take place at intervals agreed in the lease (typically every five years) and their purpose is usually to adjust the rent to the current market level at the review date. For upwards only rent reviews, the rent will either remain at the same level or increase (if market rents have increased) at the review date.

Rent roll see Annualised Rents.

Rents with fixed and minimum uplifts are either where rents are subject to contracted uplifts at a level agreed at the time of letting; or where the rent is subject to an agreed minimum level of uplift at the specified rent review.

Retail planning consents are separated between A1, A2 and A3 - as set out in The Town and Country Planning (Use Classes) Order 2005. Within the A1 consent category, Open A1 consent grants planning for any type of retail, while Restricted A1 consent places limits on the types of retail that can operate (this is typically a restriction that only bulky goods operators are allowed to trade at that site).

Class	Description	Use for all/any of the following purposes
A1	Shops	Retail sale of goods other than hot food; post office; sale of tickets or as a travel agency; sale of sandwiches or other cold food off the premises; hairdressing; direction of funerals; display of goods for sale; hiring out of domestic or personal goods/articles; the reception of goods to be washed, cleaned or repaired; a retail warehouse club being a retail club where goods are sold, or displayed for sale, only to persons who are members of that club; or as a night club.
A2	Financial and professional services	Financial services; professional services (other than professional health or medical); or other services (including betting) services appropriate for a shopping area.
A3	Restaurants	Sale of food/drink and cafés (i.e. restaurants).
A4	Drinking establishments	Pub, wine bar or other drinking establishment.
A5	Hot food take-aways	Sale of hot food for consumption off premises.

Reversion is the increase in rent estimated by the external valuers, where the passing rent is below the estimated rental value. The increases to rent arise on rent reviews and lettings.

Tenant (or lease) incentives are incentives offered to occupiers to enter into a lease. Typically this will be an initial rent free period, or a cash contribution to fit-out. Under accounting rules the value of lease incentives is amortised through the income statement on a straight-line basis to the earliest lease termination date.

The residual site value of a development is calculated as the estimated (net) development value, less development profit, all development construction costs, finance costs (assumed at a notional rate) of a project to completion and notional site acquisition costs. The residual is determined to be the current site value.

Total occupancy rate is the occupancy rate excluding accommodation under offer or subject to asset management.

Total Property Return is calculated as the change in capital value, less any capital expenditure incurred, plus net income, expressed as a percentage of capital employed over the period, as calculated by IPD.

Total return (total accounting return) is the growth in EPRA NAV plus dividends paid, and this can be expressed as a percentage of EPRA NAV per share at the beginning of the period.

Total shareholder return is the growth in value of a shareholding over a specified period, assuming dividends are reinvested to purchase additional units of stock.

Total Tax Contribution is a more comprehensive view of tax contributions that the accountancy-defined tax figure quoted in most financial statements. It comprises taxes and levies paid directly, as well as taxes collected from others which we administered.

Turnover rents is where all or a portion of the rent is linked to the sales or turnover of the occupier.

Under rented is the term used to describe when the contracted rent is below the estimated rental value (ERV), implying a positive reversion.

Underlying earnings per share (EPS) consists of underlying profit after tax divided by the diluted weighted average number of shares in issue during the period.

Underlying profit before tax is the pre-tax EPRA earnings measure with additional company adjustments, including realisation of cash flow hedges and nonrecurring items.

Virtual freehold represents a long leasehold tenure for a period up to 999 years. A 'peppercorn', or nominal, rental is paid annually.

Weighted average debt maturity each tranche of Group debt is multiplied by the remaining period to its maturity and the result is divided by total Group debt in issue at the period end.

Weighted average interest rate is the Group loan interest and derivative costs per annum at the period end, divided by total Group debt in issue at the period end.

Weighted average lease term is the average lease term remaining to first break, or expiry, across the portfolio weighted by contracted rental income (including rent-frees). The calculation excludes short-term lettings, residential leases and properties allocated as developments.

Yield shift is a movement (usually expressed in bps) in the yield of a property asset, or like-for-like portfolio, over a given period. Yield compression is a commonly used term for a reduction in yields.

This information is provided by RNS

The company news service from the London Stock Exchange

END

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