REG - Local Shopping REIT - Final Results <Origin Href="QuoteRef">LSR.L</Origin> - Part 3

Alina HoldingsAnnouncement

17/12/2015 07:10

- Part 3: For the preceding part double click  ID:nRSQ3420Jb 

2015           3,742       1,764         12,956      18,462   
 
 
Investment in Own Shares 
 
At 30 September 2015, 9,164,017 shares were held in treasury (2014: 9,164,017). 
 
Reserves 
 
The value of shares issued to purchase Gilfin Property Holdings Limited in excess of their nominal value has been shown as
a separate reserve in accordance with the Companies Act 2006. 
 
Capital Redemption Reserve 
 
The capital redemption reserve arose in prior years on the cancellation of 8,822,920 Ordinary 20p Shares. 
 
Dividends 
 
No dividends were paid during the current and previous year: 
 
C9. Disposal of shares in subsidiaries 
 
During the preceding year the Company disposed of two subsidiaries, NOS 2 Limited and NOS 3 Limited by the sale of their
entire share capital. 
 
The profit on sale included in the profit and loss account was calculated as follows: 
 
                                                  £000's    
 Sale proceeds                            11,100          
 Deduct:                                                    
 Carrying cost of investments  11,584             
 Less:                                                      
 Assets not disposed of        (1,369)            
                                                            
                                                            
 Fees and other costs          817                
                                                            
                                                  11,032    
                                                            
 Profit                                           68        
                                                            
                                                            
 
 
The difference between the profit\(loss) on disposal in the Company accounts and the consolidated accounts is due to
differences between the net assets of NOS 2 and NOS 3 at the date of disposal and the carrying costs of the investments in
The Local Shopping REIT plc. 
 
Glossary 
 
Adjusted Net Asset Value ("Adjusted NAV") per share 
 
Adjusted NAV is calculated as shareholders' funds, adjusted by the fair value of the derivative financial instruments held
on the Balance Sheet, divided by the number of shares in issue at the year end, excluding treasury shares. 
 
Earnings Per Share ("EPS") 
 
EPS is calculated as profit attributable to shareholders divided by the weighted average number of shares in issue in the
year. 
 
Equivalent Yield 
 
Equivalent yield is a weighted average of the initial yield and reversionary yield and represents the return a property
will produce based upon the timing of the income received.  In accordance with usual practice, the equivalent yields (as
determined by the Group's external valuers) assume rent received annually in arrears and on gross values including
prospective purchasers' costs (including stamp duty, and agents' and legal fees). 
 
Funds From Operations ("FFO") 
 
FFO is a term adopted by the National Association of Real Estate Investment Trusts. It is calculated as net income adjusted
for depreciation of investment properties and gains/losses on sales of investment properties. 
 
Head Lease 
 
A head lease is a lease under which the Group holds an investment property. 
 
Initial Yield 
 
Initial yield is the annualised net rent generated by a property expressed as a percentage of the property valuation. In
accordance with usual practice the property value is grossed up to  include prospective purchasers' costs. 
 
Interest Cover 
 
Interest cover can be calculated in a number of ways. The Group interest cover given in the Finance Review is based on the
percentage of times gross rental income covers financing 
 
expenses. 
 
Actual and Forecast Interest Cover Test (ICR) 
 
The ICRs given in the Finance Review are calculated as defined in the loan facility agreements.  Each bank loan has a
charge on a specific pool of property and the ICRs are calculated based on the gross rental income, less an adjustment for
unrecoverable costs compared to the interest charged on that loan for that particular pool of assets. 
 
Interest Rate Swap 
 
An interest rate swap is a financial instrument where two parties agree to exchange an interest rate obligation for a
predetermined amount of time. These are used by the Group to convert floating rate debt to fixed rates. 
 
Investment Property Databank Ltd ("IPD") 
 
IPD produces an independent benchmark of property returns. 
 
Initial Public Offering ("IPO") 
 
An IPO is the first sale of shares by a privately owned company on a Stock Exchange. LSR issued its shares for sale on 2
May 2007. 
 
London Interbank Offered Rate ("LIBOR") 
 
LIBOR is the interest rate charged by one bank to another bank for lending money. 
 
Loan-to-value ("LTV") 
 
Loan-to-value is the ratio of debt, excluding any mark-to-market adjustments, to the value of investment properties. 
 
Market Value 
 
Market value is the estimated amount for which a property should exchange on the date of valuation between a willing buyer
and willing seller in an arm's length transaction after proper marketing wherein the parties had each acted knowledgeably,
prudently and 
 
without compulsion. 
 
Market Rent 
 
Market rent is the estimated amount for which a property should lease on the date of valuation between a willing lessor and
a willing lessee on appropriate lease terms, in an arm's length transaction, after proper marketing wherein the parties had
each acted knowledgeably, prudently and without compulsion. 
 
Net Asset Value ("NAV") per share 
 
NAV per share is calculated as shareholders' funds divided by the number of shares in issue at the year end excluding
treasury shares. 
 
Real Estate Investment Trust ("REIT") 
 
A REIT is a listed property company which qualifies for and has elected into a tax regime, which exempts qualifying UK
property rental income and gains on investment property disposals from corporation tax. LSR converted to REIT status on 11
May 2007. 
 
Recurring Profit 
 
Recurring profit is calculated by adjusting the statutory IFRS reported result for: the movement in the fair value of the
property portfolio; the movement in the fair value of financial derivatives held; any profit or loss realised on the sale
of properties or other fixed assets; and other one-off, non-recurring income or costs incurred which are not considered to
be sustainable or of a recurring nature. 
 
Rent Roll 
 
Rent roll is the total contractual annualised rent receivable from the portfolio net of any head rent payments. 
 
Reversionary Yield 
 
Reversionary yield is the annualised net rent that would be generated by a property if it were fully let at market rent
expressed as a percentage of the property valuation. In accordance with usual practice the property value is grossed up to
include prospective purchasers' costs. 
 
This information is provided by RNS
The company news service from the London Stock Exchange