Final Results- Part 3

RNS Number : 2774Y

British Land Co PLC

16 May 2016

 

SUPPLEMENTARY TABLES

(Data includes Group's share of Joint Ventures and Funds)

Acquisitions and Disposals

From 1 April 2015			Price (Gross)	Price     (BL Share)	Annual Passing Rent
Acquisitions		Area	£m	£m	£m2
Completed
1 Sheldon Square	Offices	London	210	210	10
Hercules Unit Trust unit purchase1	Retail	Various	95	95	5
19-33 Liverpool Street	Offices	London	22	22	1
Chester, Broughton development land	Retail	North West	5	3	-
Teesside Leisure Park	Retail	North East	2	2	-
Total			334	332	16
1 Units purchased over the course of the period. £95m represents purchased GAV
2 BL share of net rent topped up for rent frees
From 1 April 2015			Price (Gross)	Price     (BL Share)	Annual Passing Rent
Disposals		Area	£m	£m	£m1
Completed
Parkgate Shopping Park, Rotherham	Retail	Yorkshire	170	120	6
39 Victoria Street	Offices	London	139	139	5
Birstall Shopping Park, Leeds	Retail	Yorkshire	107	31	2
PREF - France & Portugal	Retail	Europe	67	43	4
Hatters Way, Luton & Hylton Riverside, Sunderland	Retail	Various	45	34	2
560 London Road, Camberley	Retail	South	38	38	2
Debenhams, Oxford	Retail	South	23	23	1
The Hempel Collection	Residential	London	20	20	-
Superstore disposals	Retail	Various	154	122	6
B&M, Daventry	Retail	Midlands	9	9	1
Bedford Street	Residential	London	4	4	-
Aldgate Place	Residential	London	1	1	-
Exchanged
Aldgate Place	Residential	London	32	16	-
The Hempel Collection	Residential	London	18	18	-
Total			827	618	29
1 BL share of annualised rent topped up for rent frees

Gross Rental Income1,2
Accounting Basis £m	12 mths to 31 March 2016			Annualised as at 31 March 2016
	Group	JVs & Funds3	Total	Group		JVs & Funds3		Total
Regional	55	89	144	52		83		135
Local	100	26	126	97		26		123
Multi-lets	155	115	270	149		109		258
Department Stores & Leisure	57	-	57	56		-		56
Superstores	11	36	47	9		35		44
Solus/Other	21	-	21	18		-		18
Retail & Leisure	244	151	395	232		144		376
West End	125	-	125	125		-		125
City	5	114	119	5		119		124
Offices	130	114	244	130		119		249
Residential4	3	-	3	3		-		3
Offices & Residential	133	114	247	133		119		252
Canada Water	8	-	8	8		-		8
Total	385	265	650	373		263		636
Table shows UK total with previous  classification provided on Company website at www.britishland.com/results
1 Excluding developments under construction and assets held for development
2 Gross rental income will differ from annualised rents due to accounting adjustments for fixed & minimum contracted rental uplifts and lease incentives
3 Group's share of properties in joint ventures and funds including HUT at share
4 Stand-alone residential
Major Holdings At 31 March 2016 BL Share Sq ft Rent Occupancy Lease (excl. developments under construction) % '000 £m pa1 rate %2 length yrs3 Broadgate 50 4,724 226 99.3 7.8 Regent's Place 100 1,590 79 98.7 7.4 Paddington Central 100 806 33 99.8 7.8 Meadowhall Shopping Centre 50 1,500 80 98.3 6.9 Sainsbury's Superstores4 50 2,526 56 100.0 14.0 The Leadenhall Building 50 603 37 97.8 11.6 Debenhams, Oxford Street 100 363 11 100.0 23.0 Teesside Shopping Park 100 569 15 99.1 5.7 Glasgow Fort Shopping Park 100 510 14 94.2 6.5 Drake's Circus Shopping Centre 100 570 16 98.4 5.2 1 Annualised EPRA contracted rent including 100% of Joint Ventures & Funds 2 Includes accommodation under offer or subject to asset management at 31 March 2016 3 Weighted average to first break 4 Comprises stand-alone assets/properties

Occupiers Representing over 0.5% of Total Contracted Rent
At 31 March 2016			% of total rent2								% of total rent2
UBS AG1			5.7				New Look				0.9
Tesco plc			5.6				Vodafone				0.9
Debenhams			5.3				SportsDirect				0.9
J Sainsbury Plc			4.6				Aon Plc				0.8
Kingfisher (B&Q)			2.6				Asda Group				0.8
HM Government			2.2				Home Retail Group				0.8
Next plc			2.1				JPMorgan				0.7
Virgin Active			1.8				Reed Smith				0.7
Facebook			1.7				Hennes				0.7
Spirit Group			1.6				Deutsche Bank AG				0.7
Alliance Boots			1.5				JD Sports				0.7
Wesfarmers			1.4				Mayer Brown				0.7
Visa Inc			1.4				Mothercare				0.7
Dixons Carphone			1.4				ICAP Plc				0.6
Marks & Spencer Plc			1.4				Lend Lease				0.6
Arcadia Group			1.3				Carlson (TGI Friday's)				0.6
Dentsu Aegis			1.3				Pets at Home				0.5
Herbert Smith			1.2				Credit Agricole				0.5
RBS			1.1				Lewis Trust				0.5
TJX Cos Inc (TK Maxx)			1.0				Steinhoff				0.5
Gazprom			1.0
1 Rent contracted on both 5 Broadgate and 1-3 Finsbury Avenue/100 Liverpool Street lease whilst UBS move. 3.0% pro-forma for run off of UBS rent at 1-3 Finsbury Avenue/100 Liverpool Street.
2 Includes the impact of rent free incentives
Portfolio Valuation
At 31 March 2016	Group	JVs & Funds1			Total1				Change %²
	£m	£m			£m			H1	H2	FY
Regional	1,052	1,792			2,844			2.8	0.2	3.0
Local	1,893	485			2,378			1.5	1.1	2.6
Multi-lets	2,945	2,277			5,222			2.2	0.6	2.8
Department Stores & Leisure	1,004	1			1,005			3.4	2.5	6.0
Superstores	153	628			781			(1.7)	(0.5)	(2.1)
Solus/Other	333	-			333			(0.1)	(0.4)	(0.5)
Retail & Leisure3	4,435	2,906			7,341			1.8	0.7	2.4
West End	3,904	-			3,904			8.1	4.6	12.8
City	104	2,782			2,886			8.5	2.4	11.1
Offices	4,008	2,782			6,790			8.3	3.7	12.1
Residential4	173	61			234			6.7	(0.3)	5.7
Offices & Residential3	4,181	2,843			7,024			8.2	3.5	11.8
Canada Water	283	-			283			2.6	(0.9)	1.7
Total	8,899	5,749			14,648			4.7	2.0	6.7
Standing Investments	8,204	5,673			13,877			4.5	1.9	6.4
Developments	695	76			771			6.9	3.1	9.4
Table with previous classification provided on Company website at www.britishland.com/results
1 Group's share of properties in joint ventures and funds including HUT at ownership share
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 committed developments
4 Stand-alone residential

Retail Portfolio Valuation - Previous Classification Basis
At 31 March 2016		Valuation1	Change %²				ERV Growth %3				NEY Yield Compression bps
		£m	H1		H2	FY	H1	H2	FY		H1		H2	FY
Shopping Parks4		3,346	1.1		0.3	1.3	0.9	1.9	2.8		5		2	7
Shopping Centres		2,205	3.8		0.9	4.7	2.0	1.9	3.9		14		5	18
Superstores		781	(1.6)		(0.5)	(2.1)	(0.9)	(0.3)	(1.3)		(5)		1	(6)
Department Stores		606	2.9		3.0	6.0	-	0.3	0.3		12		13	25
Leisure		403	4.2		1.8	6.1	0.3	0.3	0.6		22		23	54
Retail & Leisure5		7,341	1.8		0.7	2.4	0.9	1.5	2.4		8		5	13
1 Group's share of properties in joint ventures and funds including HUT at share
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 As calculated by IPD
4 Solus/Other assets under current Retail segmentation previously included in Shopping Parks
5 Including committed developments
	Portfolio Weighting At 31 March 2015 2016 2016 2016 (current) (current) (pro-forma1) % % £m % Regional 20.2 19.4 2,844 19.0 Local 16.8 16.3 2,378 15.9 Multi-lets 37.0 35.7 5,222 34.9 Department Stores & Leisure 7.1 6.9 1,005 6.7 Superstores 6.7 5.3 781 5.2 Solus/Other 2.8 2.3 333 2.2 Retail & Leisure 53.6 50.2 7,341 49.0 West End 23.9 26.6 3,904 28.0 City 18.8 19.7 2,886 19.3 Offices 42.7 46.3 6,790 47.3 Residential2 1.9 1.6 234 1.8 Offices & Residential 44.6 47.9 7,024 49.1 Canada Water 1.8 1.9 283 1.9 Total 100.0 100.0 14,648 100.0 London Weighting 55% 58% 8,490 59% Table with previous classification provided on Company website at www.britishland.com/results 1 Pro forma for developments under construction at estimated end value (as determined by the Group's external valuers) and post period end transactions 2 Stand-alone residential Portfolio Yield & ERV Movements1
	At 31 March 2016			NEY3		ERV Growth %2				NEY Yield Compression bps3
				%		H1	H2	FY		H1		H2		FY
	Regional			4.8		1.7	1.8	3.5		11		4		15
	Local			5.2		1.0	2.2	3.3		7		2		9
	Multi-lets			5.0		1.4	2.0	3.4		9		3		12
	Department Stores & Leisure			5.1		0.2	0.2	0.4		19		17		37
	Superstores			5.2		(0.9)	(0.3)	(1.3)		(5)		1		(6)
	Solus/Other			5.1		0.1	0.0	0.1		1		1		2
	Retail & Leisure			5.0		0.9	1.5	2.4		8		5		13
	West End			4.4		4.1	5.6	9.9		24		3		28
	City4			4.4		4.8	4.3	9.3		16		(4)		12
	Offices			4.4		4.4	5.0	9.6		20		(0)		21
	Canada Water			3.2		0.2	0.2	0.5		11		1		13
	Total			4.7		2.3	3.0	5.3		13		3		17
	Table with previous classification provided on Company website at www.britishland.com/results
	1 Excluding developments under construction, assets held for development and residential assets
	2 As calculated by IPD
	3 Including notional purchaser's costs
	4 City ERV growth of 7.3% and West End ERV growth of 9.1% on a like-for-like basis

Total Property Return (as calculated by IPD)
FY to 31 March 2016	Retail		Offices		Total
%	British Land	IPD	British Land	IPD	British Land	IPD
Capital Return	2.5	2.3	12.3	11.1	6.8	6.3
- ERV Growth	2.4	1.4	9.6	7.8	5.3	4.0
- Yield Compression1	13 bps	18 bps	21 bps	20 bps	17 bps	23 bps
Income Return	5.2	5.1	3.2	3.9	4.2	4.7
Total Property Return	7.8	7.5	15.8	15.4	11.3	11.3
1 Net equivalent yield movement

Portfolio Net Yields1,2
At 31 March 2016	EPRA net initial yield %	EPRA topped up net initial yield %3	Overall topped up net initial yield %4	Net equivalent yield %	Net reversionary yield %
Regional	4.3	4.4	4.5	4.8	4.8
Local	4.8	5.1	5.2	5.2	5.2
Multi-lets	4.5	4.7	4.8	5.0	5.0
Department Stores & Leisure	4.7	4.8	6.4	5.1	4.0
Superstores	5.3	5.3	5.3	5.2	5.2
Solus/Other	5.6	5.6	5.6	5.1	4.7
Retail & Leisure	4.7	4.8	5.1	5.0	4.9
West End	3.5	3.9	4.0	4.4	4.6
City	3.2	4.4	4.5	4.4	5.3
Offices	3.4	4.2	4.2	4.4	4.9
Canada Water	2.8	2.8	2.8	3.2	3.4
Total	4.1	4.5	4.7	4.7	4.9
1 Including notional purchaser's costs
2 Excluding developments under construction, assets held for development and residential assets
3 Including rent contracted from expiry of rent-free periods and fixed uplifts not in lieu of rental growth
4 Including fixed/minimum uplifts (excluded from EPRA definition)

Portfolio Net Yields1,2 - Previous Classification basis
At 31 March 2016	EPRA net initial yield %	EPRA topped up net initial yield %3	Overall topped up net initial yield %4	Net equivalent yield %	Net reversionary yield %
Shopping Parks	4.7	4.9	4.9	5.1	5.0
Shopping Centres	4.5	4.6	4.7	4.9	4.9
Superstores	5.3	5.3	5.3	5.2	5.2
Department Stores	3.9	3.9	5.6	4.2	3.5
Leisure	6.1	6.1	7.6	6.4	4.8
Retail & Leisure	4.7	4.8	5.1	5.0	4.9
1 Including notional purchaser's costs
2 Excluding developments under construction, assets held for development and residential assets
3 Including rent contracted from expiry of rent-free periods and fixed uplifts not in lieu of rental growth
4 Including fixed/minimum uplifts (excluded from EPRA definition)

Lease Length & Occupancy1
At 31 March 2016		Average lease length yrs									Occupancy rate %
		To expiry					To break				Occupancy				Occupancy (underlying)2
Regional		7.9					6.9				95.8				97.8
Local		8.7					7.5				98.9				99.6
Multi-lets		8.3					7.2				97.3				98.6
Department Stores & Leisure		19.7					19.6				100.0				100.0
Superstores		14.2					13.8				100.0				100.0
Solus/Other		10.5					10.5				100.0				100.0
Retail & Leisure		10.6					9.8				98.0				99.0
West End		9.5					7.5				97.8				98.1
City		10.2					8.3				98.4				99.1
Offices		9.8					7.9				98.1				98.6
Canada Water		7.5					7.4				98.4				99.1
Total		10.2					9.0				98.0				98.8
Table with previous or IPD classification provided on Company website at www.britishland.com/results
1 Excluding developments under construction, residential assets and assets held for development
2 Including accommodation under offer or subject to asset management
Annualised Rent & Estimated Rental Value (ERV)1
At 31 March 2016	Annualised rent (valuation basis) £m2							ERV £m					Average rent £psf
	Group		JVs & Funds		Total			Total					Contracted3			ERV
Regional	54		84		138			155					32.8			35.9
Local	97		27		124			134					24.2			24.7
Multi-lets	151		111		262			289					28.0			29.7
Department Stores & Leisure	51		-		51			44					15.3			13.1
Superstores	9		35		44			43					21.4			20.8
Solus/Other	18		-		18			16					18.8			16.0
Retail & Leisure	229		146		375			392					24.0			24.3
West End	125		-		125			165					51.5			60.6
City	5		94		99			162					50.0			60.3
Offices	130		94		224			327					51.0			60.4
Residential4	3		-		3			4
Offices & Residential	133		94		227			331
Canada Water	8		-		8			9					18.7			21.6
Total	370		240		610			732					30.1			32.6
Table with previous classification provided on Company website at www.britishland.com/results
1 Excluding developments under construction and assets held for development
2 Gross rents 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, excludes contracted rent subject to rent free and future uplift
3 Annualised rent, plus rent subject to rent free
4 Stand-alone residential

Rent Subject to Open Market Rent Review1
At 31 March 2016	2017	2018	2019	2020	2021	2017-19	2017-21
For period to 31 March	£m	£m	£m	£m	£m	£m	£m
Regional	15	12	17	10	18	44	72
Local	11	24	21	12	11	56	79
Multi-lets	26	36	38	22	29	100	151
Department Stores & Leisure	-	-	-	-	-	-	-
Superstores	5	4	8	12	14	17	43
Solus/Other	-	1	-	-	-	1	1
Retail & Leisure	31	41	46	34	43	118	195
West End	6	20	20	15	2	46	63
City	1	4	13	14	16	18	48
Offices	7	24	33	29	18	64	111
Canada Water	-	-	-	-	-	-	-
Total	38	65	79	63	61	182	306
Potential uplift at current ERV	1	2	4	2	1	7	10
Table with previous  classification provided on Company website at www.britishland.com/results
1 Excluding developments under construction, residential assets and assets held for development

Rent Subject to Lease Break or Expiry1
At 31 March 2016	2017	2018	2019	2020	2021	2017-19	2017-21
For period to 31 March	£m	£m	£m	£m	£m	£m	£m
Regional	13	12	9	13	9	34	56
Local	9	6	8	11	9	23	43
Multi-lets	22	18	17	24	18	57	99
Department Stores & Leisure	-	1	-	-	-	1	1
Superstores	-	-	-	-	-	-	-
Solus/Other	1	-	-	-	6	1	7
Retail & Leisure	23	19	17	24	24	59	107
West End	10	8	10	4	19	28	51
City	17	3	17	14	8	37	59
Offices2	27	11	27	18	27	65	110
Canada Water	1	-	1	-	1	2	3
Total	51	30	45	42	52	126	220
% of contracted rent	7.3%	4.4%	6.5%	6.1%	7.6%	18.2%	31.9%
Potential uplift at current ERV3	4	3	11	4	1	18	23
Table with previous  classification provided on Company website at www.britishland.com/results
1 Excluding developments under construction and assets held for development
2 Based on office space only
3 As determined by the Group's valuers, excluding near term developments

Superstores
	Stand-alone Superstores1								In Multi-let assets 2											Total Exposure1,2,3
Store Size '000 SQ FT	No of Stores	Valuation (BL share) £m		Capital Value psf			WALL to FB		No of Stores		Valuation (BL share) £m				Capital Value psf		WALL to FB			No of Stores		Valuation (BL share) £m				Capital Value psf		WALL to FB
>100	8	177		351			12.4		5		357				538		13.0			13		534				457		12.8
75-100	13	270		467			17.9		2		55				415		12.8			15		325				457		17.0
50-75	16	256		404			12.6		1		12				196		11.1			17		268				385		12.3
25-50	8	52		226			8.3		3		32				457		14.6			11		84				281		10.4
0-25	2	8		177			9.1		17		80				436		11.1			19		88				387		10.9
March 2016	47	763		383			13.9		28		536				482		12.7			75		1,299				419		13.5
March 2015	57	924		395			14.5		29		529				491		13.9			86		1,453				426		14.4
Geographical Spread							Gross Rent (BL Share)													Lease Structure
London & South				57%			Tesco										£37m			RPI and Fixed								8%
Rest of UK				43%			Sainsburys										£30m			OMRR								92%
							Other										£5m
1 Excludes £8m non-foodstore occupiers in superstore led assets, and £10m Sainsburys Newquay, sold post period end
2 Excludes non food-format stores e.g. Asda Living
3 Excludes £101m of investments held for trading comprising freehold reversions in a pool of Sainsbury's Superstores
Recently Completed & Committed Developments
At 31 March 2016					Sector			BL Share		Sq ft		PC Calendar Year				Current Value		Cost to complete			ERV				Let & Under Offer		Resi End Value		Resi Sales Exchanged & Completed
								%		'000						£m		£m1			£m2				£m		£m		£m
5 Broadgate					Offices			50		710		Completed				469		8			19.2				19.2		-
Yalding House					Offices			100		29		Completed				37		1			1.9				-		-
Whiteley Leisure, Fareham					Retail			50		57		Completed				12		1			0.6				0.6		-
Glasgow Fort, M&S & Retail Terrace					Retail			75		112		Completed				35		3			2.0				1.7		-
Total Completed in Period										908						553		13			23.7				21.5
4 Kingdom Street					Offices			100		147		Q2 2017				81		64			9.5				-		-
Clarges Mayfair					Mixed Use			100		192		Q4 2017				404		107			6.2				-		456		259
Glasgow Fort (MSCP & Additional retail / leisure units)					Retail			75		12		Q3 2016				2		5			0.4				0.2		-
The Hempel Phase 1					Residential			100		25		Q2 2016				26		2			-				-		50		36
The Hempel Phase 2					Residential			100		32		Q3 2016				48		12			-				-		72		8
Aldgate Place, Phase 1					Residential			50		221		Q2 2016				44		14			-				-		79		55
Total Under Construction										629						605		204			16.1				0.2		657		358
Retail Capital Expenditure 3																		107
Data includes Group's share of properties in Joint Ventures & Funds (except area which is shown at 100%)
1 From 1 April 2016
2 Estimated headline rental value net of rent payable under head leases (excluding tenant incentives)
3 Capex committed and underway within our investment portfolio relating to leasing and asset management

Near term Pipeline
At 31 March 2016	Sector	BL Share	Sq ft	Start On Site			Total Cost 1			Status
			'000				£m
100 Liverpool Street	Offices	50	520	2017			279			Consented
1 Triton Square 2	Offices	100	217	2017			370			Pre-submission
1 Finsbury Avenue	Offices	50	303	2017			150			Consented
5 Kingdom Street 3	Offices	100	240	2017			228			Consented
Blossom Street, Shoreditch	Mixed Use	100	340	2017			256			Consented
Plymouth Leisure	Retail	100	102	2016			41			Consented
New Mersey Shopping Park, Speke - Leisure	Retail	66	66	2016			20			Consented
Crawley Homewares Park	Retail	100	52	2016			26			Consented
Aldgate Place, Phase 2	Residential	50	145	2016			59			Consented
54 The Broadway, Ealing	Residential	100	34	2016			21			Consented
Total Near term			2,019				1,450
Retail Capital Expenditure 4							90
1 Total cost including site value. Excludes notional interest as interest is capitalised individually on each development at our capitalisation rate
2 Existing net areas, scheme in early design stages
3 210,000 sq ft of which is consented
4 Forecast capital commitments within our investment portfolio over the next 2 years relating to leasing & asset enhancement

Medium term Pipeline
At 31 March 2016	Sector	BL Share	Sq ft	Status
			'000
2 - 3 Finsbury Avenue	Offices	50	550	Submitted
Eden Walk Shopping Centre, Kingston	Mixed Use	50	562	Submitted
Canada Water Masterplan 1	Mixed Use	100	5,500	Pre-submission
Forster Retail Park, Bradford, Phase 3	Retail	100	63	Consented
Meadowhall Leisure	Retail	50	330	Pre-submission
Glasgow Fort - Retail Extension	Retail	75	60	Consented
Putney High Street	Residential	100	110	Consented
Total Prospective			7,175
1 Assumed net area based on gross area of up to 7m sq ft

Residential development programme
At 31 March 2016	Sq Ft		No. Market Units		PC Date/ Status		BL Share	Current Value1		Cost To come2		End Value3	Sales Exchanged & Completed
	'000						%	£m		£m		£m	£m
Clarges Mayfair4	103		34		Q4 2017		100	286		88		456	259
Mixed use	103		34					286		88		456	259
The Hempel Phase 1	25		15		Q2 2016		100	26		2		50	36
The Hempel Phase 2	32		18		Q3 2016		100	48		12		72	8
Aldgate Place Phase 1	221		154		Q2 2016		50	44		14		79	55
Resi-led	278		187					118		28		201	99
Aldgate Place Phase 2	145				Consented		50
54 The Broadway, Ealing	34				Consented		100
Near Term prospective	179
Total Committed Residential	381		221					404		116		657	358
Data includes Group's share of properties in Joint Ventures & Funds (except area which is shown at 100%)
1 Excluding completed sales
2 From 1 April 2016. Cost to complete excludes notional interest as interest is capitalised individually on each development at our capitalisation rate
3 Includes completed units (£22.8m)
4 Includes 9,500 sq ft of affordable housing (11 units)

GLOSSARY

Adjusted net debt is the Group net debt and the Group's share of joint venture and funds' net debt excludes the mark-to-market on effective cash flow hedges and related debt adjustments and non-controlling interests. A reconciliation between Group net debt and adjusted net debt is included in table A within the supplementary disclosures.

Annualised rent is the gross property rent receivable on a cash basis as at the reporting date. Additionally, it includes the external valuers' estimate of additional rent in respect of unsettled rent review, turnover rent and sundry income such as that from car parks and commercialisation, less any ground rents payable under head leases.

Assets under management is the full value of all assets owned and managed by British Land and includes 100% of the value of all joint ventures and funds.

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

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 (start value plus capital expenditure) 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 rents subject to a maximum level of uplift at the specified rent reviews as agreed at the time of letting.

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

Contracted rent is the annualised rent adjusting for the inclusion of rent subject to rent free periods.

Customer satisfaction includes consumers as well as occupiers who relate better to our focus on creating Places People Prefer. This includes exit survey data for consumer satisfaction in the retail business, as well as office and retail occupier satisfaction scores, and in future we aim to be able to further expand to include consumer satisfaction for other sectors

Developer's profit is the profit on cost estimated by the valuers that a developer would expect. The developer's 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 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 5% per annum).

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

EPRA Cost Ratio (including direct vacancy costs) is the ratio of net overheads and operating expenses against gross rental income (with both amounts excluding ground rents payable). Net overheads and operating expenses relate to all administrative and operating expenses including the share of joint ventures' overheads and operating expenses, net of any service fees, recharges or other income specifically intended to cover overhead and property expenses.

EPRA Cost Ratio (excluding direct vacancy costs) is the ratio calculated above, but with direct vacancy costs removed from net overheads and operating expenses balance.

EPRA earnings is the IFRS profit after taxation attributable to shareholders of the Company excluding investment and development property revaluations, gains/losses on investing and trading property disposals, changes in the fair value of financial instruments and associated close-out costs and their related taxation. These items are presented in the capital and other column of the income statement. A reconciliation between profit attributable to shareholders of the Company and EPRA earnings is included in table B within the supplementary disclosures.

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

EPRA net assets (EPRA NAV) are a proportionally consolidated measure. They represent the IFRS net assets excluding the mark-to-market on effective cash flow hedges and related debt adjustments, the mark-to-market on the convertible bonds as well as deferred taxation on property and derivative valuations. They include the valuation surplus on trading properties and are adjusted for the dilutive impact of share options and the £400 million convertible bond maturing in 2017. A reconciliation between IFRS net assets and EPRA NAV is included in table B within the Supplementary Disclosures.

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 and residential properties.

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 current annualised rent, net of costs, topped-up for contracted uplifts, where these are not in lieu of rental growth, expressed as a percentage of capital value, after adding  notional purchaser's costs (adding notional purchaser's costs), excluding development and residential properties.

EPRA vacancy rate is the estimated market rental value (ERV) of vacant space divided by ERV of the whole portfolio, excluding developments and residential property.

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.

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. ERV growth is calculated monthly and compounded for the period subject to measurement, as calculated by IPD.

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

Footfall is the annualised number of visitors entering our assets.

Footfall growth movement in footfall against the same period in the prior year, on properties owned throughout both comparable periods, aggregated at 100% share.

Gross investment activity as measured by our share of acquisitions, sales and investment in committed development.

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.

Group is The British Land Company PLC and its subsidiaries and excludes its share of joint ventures and funds (where not treated as a subsidiary) 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. Income returns are calculated monthly and indexed to provide a return over the relevant period.

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 and British Land UK portfolio returns.

Lettings and lease 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.

Letting performance against ERV comparison of achieved letting terms on long term lettings and renewals against valuation assumptions on like for like space, calculated on a net effective basis, aggregated at 100% share.
 

Leverage see loan to value (LTV).

Like-for-like rental income growth is the growth in net 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 and properties with guaranteed rent reviews.

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.

Managed portfolio consists of multi-let properties where we have control of facilities and utilities management.

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

market value.

Managed portfolio consists of multi-let properties where we have control of facilities and utilities management.

Multi-channel retailing is the use of a variety of channels in a customer's shopping experience, including research, before a purchase. Such channels include: retail stores, online stores, mobile stores, mobile app stores, telephone sales and any other method of transacting with a customer. Transacting includes browsing, buying, returning as well as pre- and post-sale service.

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 purchaser's costs). It is based on the valuers view on ERVs, yields, letting voids and tenant incentives.

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

Net equivalent yield is the weighted average income return (after adding 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 is the current annualised rent, net of costs, expressed as a percentage of capital value, after adding notional purchaser's costs.

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 to which the initial yield will rise (or fall) 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 and residential properties. It includes accommodation under offer, subject to asset management (where they have been taken back for refurbishment and are not available to let as at the balance sheet date) or occupied by the Group.

Omni-channel retailing is the evolution of multi-channel retailing, but is concentrated more on a seamless approach to the consumer experience through all available shopping channels i.e. mobile internet devices, computers, bricks and mortar, television, radio, direct mail, catalogue, etc.

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.

Property Income Distributions (PIDs) are profits distributed to shareholders which 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. REITs also pay out normal dividends, called non-PIDs, which are taxed in the same way as dividends received from non REIT companies; these are not subject to withholding tax and for UK individual shareholders qualify for the tax free dividend allowance.

Portfolio valuation is reported by the Group's external valuers. In accordance with usual practice, they report valuations net, after the deduction of the notional purchaser's costs, including stamp duty land tax, agent and legal fees.

Proportionally consolidated measures include the Group's share of joint ventures and funds and exclude non-controlling interests in the Group's subsidiaries.

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.

Rent-free period see Tenant (or lease) incentives.

REITs are property companies that allow people and organisations to invest in commercial property and receive benefits as if they directly owned the properties themselves. The rental income, after costs is passed directly to shareholders in the form of dividends. In the UK REITs are required to distribute at least 90% of their tax exempt property income to shareholders as dividends. As a result, over time, a significant proportion of the total return for shareholders is likely to come from dividends. The effect is that taxation is moved from the corporate level to the investor level as investors are liable for tax as if they owned the property directly. British Land became a REIT in January 2007

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.
 

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.

Retailer sales growth movement in retailer sales against the same period in the prior year, on occupiers providing sales data throughout both comparable periods, aggregated at 100% share.

Retail planning consents are separated between A1, A2 and A3 - as set out in The Town and Country Planning (Use Classes) Order. Within the A1 category, Open A1 permission allows for the majority of types of retail including fashion to be accommodated, while Restricted A1 permission places limits on the types of retail that can operate (for example, 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	Shops, retail warehouses, hairdressers, undertakers, travel and ticket agencies, post offices, pet shops, sandwich bars, showrooms, domestic hire shops dry cleaners, funeral directors and internet cafes.
A2	Financial and professional services	Financial services such as banks and building societies, professional services (other than health and medical services) and including estate and employment agencies. It does not include betting offices or pay day loan shops - these are now classed as "sui generis" uses.
A3	Restaurants and cafes	For the sale of food and drink for consumption on the premises - restaurants, snack bars and cafes.
D2	Assembly and leisure	Cinemas, music and concert halls, bingo and dance halls (but not night clubs), swimming baths, skating rinks, gymnasiums or areas for indoor or outdoor sports and recreations.

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 letting of vacant space or re letting of expiries.
 

Scrip dividend British Land offers its shareholders the opportunity to receive dividends in the form of shares instead of cash. This is known as a Scrip dividend.

Standing investments are assets which are directly held and not in the course of, or held for development.

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.

TMT stands for technology, media and telecommunications.

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.

Topping out is a traditional construction ceremony to mark the occasion when the structure of the building reaches the highest point.

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 property returns are calculated monthly and indexed to provide a return over the relevant period.

Total return (total accounting return) is the growth in EPRA NAV per share 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 than 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 is the pre-tax EPRA earnings measure with additional Company adjustments.

No Company adjustments were made in either the current or prior year.

Valuation uplift is the increase in the portfolio valuation and sales receipts of properties sold during the period, net of capital expenditure, capitalised interest and development team costs, and transaction costs incurred, expressed as a percentage of the portfolio valuation at the start of the period plus net capital expenditure, capitalised interest and development team costs, and transaction costs.

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

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

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

Weighted average unexpired 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 residential leases and properties allocated as developments.

Yield compression occurs when the net equivalent yield of a property decreases, measured in basis points.

Yield on cost is the estimated annual rent of the completed development divided by the total cost of development including site value and notional finance costs to the point of assumed rent commencement, expressed as a percentage return.

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.

 

END

 

 

FR AIMMTMBTBTBF