REG - British Land Co PLC - Final Results- Part 2 <Origin Href="QuoteRef">BLND.L</Origin> - Part 2
16/05/2016 07:07
- Part 2: For the preceding part double click ID:nRSP2775Ya
- (8) - (164) (82)
11 9 24 17 3 258 135
4 12 124 4 7 490 245
- - - - 30 32 18
15 21 148 21 40 780 398
- - - - (3) (2) (1)
15 21 148 21 37 778 397
- - - (2) - 6 3
15 21 148 19 37 784 400
8 11 74 10 25 400
4 6 3 59 31 179
£m £m £m £m £m £m £m
267 252 942 612 108 9,889 4,944
2 1 - 4 14 32 18
5 7 5 9 33 470 239
274 260 947 625 155 10,391 5,201
(4) (6) (6) (7) (51) (215) (111)
- - - (139) - (3,321) (1,660)
(28) - - (4) (18) (154) (77)
(32) (6) (6) (150) (69) (3,690) (1,848)
242 254 941 475 86 6,701 3,353
121 128 471 237 44 3,353
1 Tesco joint ventures include BLT Holdings (2010) Limited as at 31 March 2016.
2 USS joint ventures include the Eden Walk Shopping Centre Unit Trust and the Fareham Property Partnership.
3 Hercules Unit Trust joint ventures and sub-funds includes 50% of the results of Deepdale Co-Ownership Trust, Gibraltar
Limited Partnership and Valentine Co-Ownership Trust and 41.25% of Birstall Co-Ownership Trust. The balance sheet shows
50% of the assets of these joint ventures and sub-funds.
4Included in the column headed 'Other joint ventures and funds' are contributions from the following: BL Goodman Limited
Partnership, The Aldgate Place Limited Partnership, Bluebutton Property
Management UK Limited, City of London Office Unit Trust and Pillar Retail Europark Fund (PREF). The Group's ownership share
of PREF is 65%, however as the group is not able to exercise control over significant decisions of the fund, the Group
equity accounts for its interest in PREF.
5 Revenue includes gross rental income at 100% share of £495m (2014/15: £451m).
The borrowings of joint ventures and funds and their subsidiaries are non-recourse to the Group. All joint ventures are
incorporated in the United Kingdom, with
the exception of Broadgate REIT Limited, the Eden Walk Shopping Centre Unit Trust and Leadenhall Holding Co (Jersey)
Limited which are incorporated in Jersey.
Of the funds, the Hercules Unit Trust (HUT) joint ventures and sub-funds are incorporated in Jersey and PREF in
Luxembourg.
These financial statements include the results and financial position of the Group's interest in the Fareham Property
Partnership, the Aldgate Place Limited Partnership, the BL Goodman Limited Partnership, the Auchinlea Partnership and the
Gibraltar Limited Partnership. Accordingly, advantage has been taken of the exemptions provided by Regulation 7 of the
Partnership (Accounts) Regulations 2008, not to attach the partnership accounts to these financial statements.
Operating cash flows of joint ventures and funds (Group share)
Rental income received from tenants 208 234
Fees and other income received 1 1
Operating expenses paid to suppliers and employees (18) (26)
Cash generated from operations 191 209
Interest paid (86) (114)
Interest received 1 2
UK corporation tax paid (3) (7)
Foreign tax paid (1) (2)
Cash inflow from operating activities 102 88
Cash inflow from operating activities deployed as:
Surplus cash retained within joint ventures and funds 44 15
Revenue distributions per consolidated statement of cash flows 58 73
Revenue distributions split between controlling and non-controlling interests
Attributable to non-controlling interests 4 7
Attributable to shareholders of the Company 54 66
Attributable to shareholders of the Company
54
66
9 Other investments
At 1 April 99 280 379 92 170 262
Additions - 35 35 - 113 113
Disposals - (272) (272) - (2) (2)
Revaluation 2 - 2 7 - 7
Depreciation - (2) (2) - (1) (1)
At 31 March 101 41 142 99 280 379
-
(1)
(1)
At 31 March
101
41
142
99
280
379
The investment held for trading comprises interests as a trust beneficiary. The trust's assets comprise freehold reversions
in a pool of commercial properties, comprising Sainsbury's superstores. The interest was categorised as Level 3 in the fair
value hierarchy, is subject to the same inputs as those disclosed in note 7, and its fair value was determined by
independent external valuers.
Included within the loans, receivables and other balance is £nil (2014/2015: £243m) in relation to a loan to the Broadgate
joint venture, which is carried at amortised cost, and was fully repaid in the year.
10 Debtors
Trade and other debtors 24 16
Prepayments and accrued income 9 4
33 20
33
20
Trade and other debtors are shown after deducting a provision for bad and doubtful debts of £16m (2014/15: £16m). The
charge to the income statement in relation to bad and doubtful debts was £1m (2014/15: £1m).
The Directors consider that the carrying amount of trade and other debtors is approximate to their fair value. There is no
concentration of credit risk with respect to trade debtors as the Group has a large number of customers who are paying
their rent in advance.
As at 31 March, trade and other debtors outside their payment terms yet not provided for are as follows:
Outside credit terms but not impaired
Total£m Within credit terms 0-1 month 1-2 months More than
£m £m £m 2 months
£m
2016 24 12 11 1 -
2015 16 9 7 - -
11 Creditors
Trade creditors 39 61
Other taxation and social security 34 31
Accruals 72 98
Deferred income 73 71
218 261
218
261
Trade creditors are interest-free and have settlement dates within one year. The Directors consider that the carrying
amount of trade and other creditors is approximate to their fair value.
12 Other non-current liabilities
Other creditors 70 32
Head leases1 46 41
Net pension liabilities 6 6
122 79
122
79
1 Includes £9m in relation to head lease liabilities on trading properties held at cost.
13 Deferred tax
The movement on deferred tax is as shown below:
Deferred tax assets year ended 31 March 2016
Interest rate and currency derivative revaluations - - 5 - 5
Other timing differences - 6 - - 6
- 6 5 - 11
-
6
5
-
11
Deferred tax liabilities year ended 31 March 2016
Property and investment revaluations (5) - (2) - (7)
Interest rate and currency derivative revaluations (4) 25 (21) - -
Other timing differences (3) - - 2 (1)
(12) 25 (23) 2 (8)
Net deferred tax (liability) asset (12) 31 (18) 2 3
Net deferred tax (liability) asset
(12)
31
(18)
2
3
Deferred tax assets year ended 31 March 2015
1 April Expensedto income£m Credited to Transferred to joint ventures£m 31 March
2014 equity£m 2015£m
£m
- - - - -
Deferred tax liabilities year ended 31 March 2015
£m £m £m £m £m
Property and investment revaluations - (5) - - (5)
Interest rate and currency derivative revaluations - (19) 15 - (4)
Other timing differences (4) 1 - - (3)
(4) (23) 15 - (12)
Net deferred tax (liability) asset (4) (23) 15 - (12)
The following corporation tax rates have been substantively enacted; 20% effective from 1 April 2015 reducing to 19%
effective from 1 April 2017
and 18% effective from 1 April 2020. The deferred tax assets and liabilities have been calculated at the tax rate effective
in the period that the tax is expected to crystallise.
The Group has recognised a deferred tax asset calculated at 18% (2014/2015: 20%) of £6m (2014/2015: £nil) in respect of
capital losses from previous years available for offset against future capital profit. Further unrecognised deferred tax
assets in respect of capital losses of £60m (2014/2015: £87m) exist at 31 March 2016.
The Group has recognised deferred tax assets on derivative revaluations to the extent that future matching taxable profits
are expected to arise.
At 31 March 2016 the Group had an unrecognised deferred tax asset calculated at 18% (2014/2015: 20%) of £51m (2014/2015:
£38m) in respect of UK revenue tax losses from previous years.
Under the REIT regime, development properties which are sold within three years of completion do not benefit from tax
exemption. At 31 March 2016 the value of such properties is £967m (2014/2015: £1,008m) and if these properties were to be
sold and no tax exemption was available, the tax arising would be £56m (2014/15: £66m).
14 Net debt
Secured on the assets of the Group
9.125% First Mortgage Debenture Stock 2020 1.1 34 35
5.264% First Mortgage Debenture Bonds 2035 371 355
5.0055% First Mortgage Amortising Debentures 2035 100 99
5.357% First Mortgage Debenture Bonds 2028 349 344
6.75% First Mortgage Debenture Stock 2020 62 176
Bank loans 1.2, 1.3 733 963
Loan notes 2 2
1,651 1,974
Unsecured
5.50% Senior Notes 2027 101 98
6.30% Senior US Dollar Notes 2015 - 104
3.895% Senior US Dollar Notes 2018 2 28 28
4.635% Senior US Dollar Notes 2021 2 165 158
4.766% Senior US Dollar Notes 2023 2 105 99
5.003% Senior US Dollar Notes 2026 2 69 64
3.81% Senior Notes 2026 113 111
3.97% Senior Notes 2026 116 114
1.5% Convertible Bond 2017 445 493
0% Convertible Bond 2020 334 -
Bank loans and overdrafts 634 706
2,110 1,975
Gross debt 3 3,761 3,949
Interest rate and currency derivative liabilities 137 126
Interest rate and currency derivative assets (167) (139)
Cash and short-term deposits 4,5 (114) (108)
Total net debt 3,617 3,828
Net debt attributable to non-controlling interests (104) (190)
Net debt attributable to shareholders of the Company 3,513 3,638
Net debt attributable to shareholders of the Company
3,513
3,638
1 These are non-recourse borrowings with no recourse for repayment to other companies or assets in the Group:
1.1 BLD Property Holdings Ltd 34 35
1.2 Hercules Unit Trust 443 645
1.3 TBL Properties Limited and subsidiaries 290 318
767 998
767
998
2 Principal and interest on this borrowing was fully hedged into Sterling at a floating rate at the time of issue.
3 The principal amount of gross debt at 31 March 2016 was £3,552m (2014/15: £3,717m). Included in this is the principal
amount of secured borrowings and other borrowings of non-recourse companies of £1,563m of which the borrowings of the
partly-owned subsidiary, Hercules Unit Trust, not beneficially owned by the Group
is £109m.
4 Included within cash and short-term deposits is the cash and short-term deposits of Hercules Unit Trust, of which £8m is
the proportion not beneficially owned
by the Group.
5 Cash and deposits not subject to a security interest amount to £93m (2014/15: £84m).
Maturity analysis of net debt
Repayable: within one year and on demand 74 102
Between: one and two years 504 71
two and five years 1,491 1,707
five and ten years 807 943
ten and fifteen years 500 747
fifteen and twenty years 385 6
twenty and twenty five years - 373
3,687 3,847
Gross debt 3,761 3,949
Interest rate and currency derivatives (30) (13)
Cash and short-term deposits (114) (108)
Net debt 3,617 3,828
Net debt
3,617
3,828
1.5% Convertible bond 2012 (maturity 2017)
On 10 September 2012 British Land (Jersey) Limited (the 2012 Issuer), a wholly-owned subsidiary of the Group, issued £400
million 1.5% guaranteed convertible bonds due 2017 (the 2012 bonds) at par. The 2012 Issuer is fully guaranteed by the
Company in respect of the 2012 bonds.
Subject to their terms, the 2012 bonds are convertible into preference shares of the 2012 Issuer which are automatically
transferred to the Company in exchange for ordinary shares in the Company or, at the Company's election, any combination of
ordinary shares and cash. Bondholders may exercise their conversion right at any time up to (but excluding) the 20th
dealing day before 10 September 2017 (the maturity date).
The initial exchange price was 693.07 pence per ordinary share. The exchange price is adjusted based on certain events.
From 25 September 2015, the Company has the option to redeem the 2012 bonds at par if the Company's share price has traded
above 130% of the exchange price for a specified period, or at any time once 85% by nominal value of the 2012 bonds have
been converted, redeemed, or purchased and cancelled. The 2012 bonds will be redeemed at par on 10 September 2017 (the
maturity date) if they have not already been converted, redeemed or purchased and cancelled. No redemption of the bonds
occurred in the year.
0% Convertible bond 2015 (maturity 2020)
On 9 June 2015 British Land (White) 2015 Limited (the 2015 Issuer), a wholly owned subsidiary of the Group, issued £350
million zero coupon guaranteed convertible bonds due 2020 (the 2015 bonds) at par. The 2015 Issuer is fully guaranteed by
the Company in respect of the 2015 bonds.
Subject to their terms, the 2015 bonds are convertible into preference shares of the Issuer which are automatically
transferred to the Company in exchange for ordinary shares in the Company or, at the Company's election, any combination of
ordinary shares and cash. From 20 July 2015 up to and including 29 June 2018, a bondholder may exercise its conversion
right if the share price has traded at a level exceeding 130% of the exchange price for a specified period. Thereafter, and
up to but excluding the 7th dealing day before 9 June 2020 (the maturity date), a bondholder may convert at any time.
The initial exchange price was 1103.32 pence per ordinary share. The exchange price is adjusted based on certain events
(such as the Company paying dividends in any year above 14.18 pence per ordinary share).
From 30 June 2018, the Company has the option to redeem the 2015 bonds at par if the Company's share price has traded above
130% of the exchange price for a specified period, or at any time once 85% by nominal value of the 2015 bonds have been
converted, redeemed, or purchased and cancelled. The 2015 bonds will be redeemed at par on 9 June 2020 (the maturity date)
if they have not already been converted, redeemed or purchased and cancelled.
Fair value and book value of net debt
Debentures and unsecured bonds 1,637 1,613 24 1,925 1,785 140
Convertible bonds 779 779 - 493 493 -
Bank debt and other floating rate debt 1,384 1,369 15 1,691 1,671 20
Gross debt 3,800 3,761 39 4,109 3,949 160
Interest rate and currency derivative liabilities 137 137 - 126 126 -
Interest rate and currency derivative assets (167) (167) - (139) (139) -
Cash and short-term deposits (114) (114) - (108) (108) -
Net debt 3,656 3,617 39 3,988 3,828 160
Net debt attributable to non-controlling interests (106) (104) (2) (192) (190) (2)
Net debt attributable to shareholders of the Company 3,550 3,513 37 3,796 3,638 158
(192)
(190)
(2)
Net debt attributable to shareholders of the Company
3,550
3,513
37
3,796
3,638
158
The fair values of debt, debentures and the convertible bonds have been established by obtaining quoted market prices from
brokers. The bank debt and loan notes have been valued assuming they could be renegotiated at contracted margins. The
derivatives have been valued by calculating the present value of expected future cash flows, using appropriate market
discount rates, by an independent treasury advisor.
Short-term debtors and creditors and other investments have been excluded from the disclosures on the basis that the fair
value is equivalent
to the book value.
Group loan to value (LTV)
Group loan to value (LTV) 25% 28%
Principal amount of gross debt 3,552 3,717
Less debt attributable to non-controlling interests (109) (200)
Less cash and short-term deposits (balance sheet) (114) (108)
Plus cash attributable to non-controlling interests 8 10
Total net debt for LTV calculation 3,337 3,419
Group property portfolio valuation (note 7) 10,111 9,509
Investments in joint ventures and funds (note 8) 3,353 2,901
Other investments (note 9) 142 379
Less property and investments attributable to non-controlling interests (384) (528)
Total assets for LTV calculation 13,222 12,261
Total assets for LTV calculation
13,222
12,261
Proportionally consolidated loan to value (LTV)
Proportionally consolidated loan to value (LTV) 32% 35%
Principal amount of gross debt 5,217 5,404
Less debt attributable to non-controlling interests (128) (200)
Less cash and short-term deposits (353) (300)
Plus cash attributable to non-controlling interests 9 10
Total net debt for proportional LTV calculation 4,745 4,914
Group property portfolio valuation (note 7) 10,111 9,509
Share of property of joint ventures and funds (note 7) 4,937 4,714
Other investments (note 9) 142 379
Less other investments attributable to joint ventures and funds (4) (123)
Less property attributable to non-controlling interests (400) (546)
Total assets for proportional LTV calculation 14,786 13,933
Total assets for proportional LTV calculation
14,786
13,933
British Land Unsecured Financial Covenants
The two financial covenants applicable to the Group unsecured debt including convertible bonds are shown below:
Net Borrowings not to exceed 175% of Adjusted Capital and Reserves 34% 38%
Principal amount of gross debt 3,552 3,717
Less the relevant proportion of borrowings of the partly-owned subsidiary / non-controlling interests (109) (200)
Less cash and deposits (balance sheet) (114) (108)
Plus the relevant proportion of cash and deposits of the partly-owned subsidiary / non-controlling interests 8 10
Net Borrowings 3,337 3,419
Share capital and reserves (balance sheet) 9,619 8,565
EPRA deferred tax adjustment (EPRA Table A) 5 13
Trading property surpluses (EPRA Table A) 93 96
Exceptional refinancing charges (see below) 287 300
Fair value adjustments of financial instruments (EPRA Table A) 198 257
Less reserves attributable to non-controlling interests (balance sheet) (277) (333)
Adjusted Capital and Reserves 9,925 8,898
Adjusted Capital and Reserves
9,925
8,898
In calculating Adjusted Capital and Reserves for the purpose of the unsecured debt financial covenants, there is an
adjustment of £287m (2014/15: £300m) to reflect the cumulative net amortised exceptional items relating to the refinancings
in the years ended 31 March 2005, 2006 and 2007.
Net Unsecured Borrowings not to exceed 70% of Unencumbered Assets 29% 28%
Principal amount of gross debt 3,552 3,717
Less cash and deposits not subject to a security interest (being £93m less the relevant proportion of cash and deposits of the partly owned subsidiary / non-controlling interests of £5m) (88) (77)
Less principal amount of secured and non-recourse borrowings (1,563) (1,906)
Net Unsecured Borrowings 1,901 1,734
Group property portfolio valuation (note 7) 10,111 9,509
Investments in joint ventures and funds (note 8) 3,353 2,901
Other investments (note 9) 142 379
Less investments in joint ventures (note 8) (3,348) (2,869)
Less encumbered assets (note 7) (3,803) (3,844)
Unencumbered Assets 6,455 6,076
Unencumbered Assets
6,455
6,076
Reconciliation of movement in Group net debt for the year ended 31 March 2016
Short term borrowings 102 (104) - 74 2 - - 74
Long term borrowings 3,847 (98) - (74) 14 (9) 7 3,687
Derivatives1 (13) 22 - - (13) (26) - (30)
Total liabilities from financing activities 3,936 (180) - - 3 (35) 7 3,731
Cash and cash equivalents (108) (6) - - - - - (114)
Net debt 3,828 (186) - - 3 (35) 7 3,617
Net debt
3,828
(186)
-
-
3
(35)
7
3,617
Reconciliation of movement in Group net debt for the year ended 31 March 2015
Short term borrowings 495 (495) - 102 - - - 102
Long term borrowings 2,803 616 379 (102) 40 104 7 3,847
Derivatives2 25 (4) - - (47) 13 - (13)
Total liabilities from financing activities 3,323 117 379 - (7) 117 7 3,936
Cash and cash equivalents (142) 34 - - - - - (108)
Net debt 3,181 151 379 - (7) 117 7 3,828
Net debt
3,181
151
379
-
(7)
117
7
3,828
1 Cash flows on derivatives include £7m of net receipts on derivative interest.
2 Cash flows on derivatives include £8m of net receipts on derivative interest.
3 Transfers comprises debt maturing from long term to short term borrowings.
Fair value hierarchy
The table below provides an analysis of financial instruments carried at fair value, by the valuation method. The fair
value hierarchy levels are defined in note 7.
Interest rate and currency derivative assets - (167) - (167) - (139) - (139)
Other investments - held for trading - - (101) (101) - - (99) (99)
Assets - (167) (101) (268) - (139) (99) (238)
Interest rate and currency derivative liabilities - 137 - 137 - 126 - 126
Convertible bonds 779 - - 779 493 - - 493
Liabilities 779 137 - 916 493 126 - 619
Total 779 (30) (101) 648 493 (13) (99) 381
126
-
619
Total
779
(30)
(101)
648
493
(13)
(99)
381
Categories of financial instruments
Financial assets
Fair value through income statement
Other investments - held for trading 101 99
Derivatives in designated hedge accounting relationships 164 139
Derivatives not in designated hedge accounting relationships 3 -
Amortised cost
Trade and other debtors 24 16
Cash and short term deposits 114 108
Other investments - loans and receivables 41 280
447 642
Financial liabilities
Fair value through income statement
Convertible bonds (779) (493)
Derivatives in designated hedge accounting relationships (137) (126)
Amortised cost
Gross debt (2,982) (3,456)
Head leases payable (46) (41)
Creditors (133) (178)
(4,077) (4,294)
Total (3,630) (3,652)
Total
(3,630)
(3,652)
Gains and losses on financial instruments, as classed above, are disclosed in note 5 (net financing costs), note 10
(debtors), note 4 (valuation movements on property), the consolidated income statement and the consolidated statement of
comprehensive income. The Directors consider that the carrying amounts of other investments and head leases payable are
approximate to their fair value, and that the carrying amounts are recoverable.
Maturity of committed undrawn borrowing facilities
Maturity date: over five years - -
between four and five years 1,113 930
between three and four years 95 -
Total facilities available for more than three years 1,208 930
Between two and three years 85 61
Between one and two years - 235
Within one year 60 10
Total 1,353 1,236
Total
1,353
1,236
The above facilities are comprised of British Land undrawn facilities of £1,150m, plus undrawn facilities of Hercules Unit
Trust totalling £203m.
15 Dividend
The fourth quarter interim dividend of 7.09 pence per share, totalling £73m (2014/15: 6.92 pence per share, totalling £71m)
was approved by the Board
on 16 May 2016 and is payable on 5 August 2016 to shareholders on the register at the close of business on 1 July 2016.
The Board will announce the availability of the Scrip Dividend Alternative, if available, via the Regulatory News Service
and on its website (www.britishland.com/dividends), no later than four business days before the ex-dividend date of 30 June
2016. The Board expects to announce the split between Property Income Distributions (PID) and non-PID income at that time.
Any Scrip Dividend Alternative will not be enhanced. PID dividends are paid, as required by REIT legislation, after
deduction of withholding tax at the basic rate (currently 20%), where appropriate. Certain classes of shareholders may be
able to elect to receive dividends gross. Please refer to our website www.britishland.com/dividends for details.
Payment date Dividend Pence per share 2016 2015
£m £m
Current year dividends
05.08.2016 2016 4th interim 7.09
06.05.2016 2016 3rd interim 7.09
12.02.2016 2016 2nd interim 7.09 73
06.11.2015 2016 1st interim 7.09 72
28.36
Prior year dividends
07.08.2015 2015 4th interim 6.921 71
06.05.2015 2015 3rd interim 6.92 71
13.02.2015 2015 2nd interim 6.92 71
07.11.2014 2015 1st interim 6.92 70
27.68
08.08.2014 2014 4th interim 6.751 68
Dividends in consolidated statement 287 277
of changes in equity
Dividends settled in shares (52) (49)
Dividends settled in cash 235 228
Timing difference relating to payment - -
of withholding tax
Dividends in cash flow statement 235 228
1 Scrip alternative treated as non-PID for this dividend.
16 Share capital and reserves
Number of ordinary shares in issue at 1 April 1,031,788,286 1,019,766,481
Share issues 8,774,037 12,021,805
At 31 March 1,040,562,323 1,031,788,286
At 31 March
1,040,562,323
1,031,788,286
Of the issued 25p ordinary shares, 627 shares were held in the ESOP trust (2014/15: 98,453), 11,266,245 shares were held as
treasury shares (2014/15: 11,266,245) and 1,029,295,451 shares were in free issue (2014/15: 1,020,423,588). No treasury
shares were acquired by the ESOP trust during the year. All issued shares are fully paid.
Hedging and translation reserve
The hedging and translation reserve comprises the effective portion of the cumulative net change in the fair value of cash
flow and foreign currency hedging instruments, as well as all foreign exchange differences arising from the translation of
the financial statements of foreign operations.
The foreign exchange differences also include the translation of the liabilities that hedge the Company's net investment in
a foreign subsidiary.
Revaluation reserve
The revaluation reserve relates to owner-occupied properties and investments in joint ventures and funds.
Merger reserve
This comprises the premium on the share placing in March 2013. No share premium is recorded in the Company's financial
statements, through
the operation of the merger relief provisions of the Companies Act 2006.
17 Segment information
The Group allocates resources to investment and asset management according to the sectors it expects to perform over the
medium term. Its three principal sectors are Offices, Retail and Canada Water. The Office sector includes residential, as
this is often incorporated into Office schemes, and Retail includes leisure, for a similar rationale. Canada Water was
added as a principal sector in the year, reflecting the key role the campus has in the strategy of the Group. Consequently
the prior year comparatives in this note have been restated to reflect this additional principal sector.
The relevant gross rental income, net rental income, operating result and property assets, being the measures of segment
revenue, segment result and segment assets used by the management of the business, are set out below. Management reviews
the performance of the business principally on a proportionally consolidated basis, which includes the Group's share of
joint ventures and funds on a line-by-line basis and excludes non-controlling interests in the Group's subsidiaries. The
chief operating decision maker for the purpose of segment information is the Executive Committee.
Gross rental income is derived from the rental of buildings. Operating result is the net of net rental income, fee income
and administrative expenses. No customer exceeded 10% of the Group's revenues in either year.
Segment result
Offices and residential Retail and leisure Canada Water Other/unallocated Total
2016£m 2015£m 2016£m 2015£m 2016£m 2015£m 2016£m 2015£m 2016£m 2015£m
Gross rental income
British Land Group 133 121 291 248 8 6 - - 432 375
Share of joint ventures and funds 114 89 104 146 - - 4 8 222 243
Total 247 210 395 394 8 6 4 8 654 618
Net rental income
British Land Group 124 112 277 233 7 6 - - 408 351
Share of joint ventures and funds 110 85 99 141 - - 3 8 212 234
Total 234 197 376 374 7 6 3 8 620 585
Operating result
British Land Group 112 101 260 218 7 6 (46) (41) 333 284
Share of joint ventures and funds 109 82 102 138 - - (1) 10 210 230
Total 221 183 362 356 7 6 (47) (31) 543 514
Reconciliation to Underlying Profit 2016£m 2015£m
Operating result 543 514
Net financing costs (180) (201)
Underlying Profit 363 313
Reconciliation to profit on ordinary activities before taxation
Underlying Profit 363 313
Capital and other 954 1,460
Underlying Profit attributable 14 16
to non-controlling interests
Total profit on ordinary activities before taxation 1,331 1,789
Of the total revenues above, £4m (2014/15: £8m) was derived from outside the UK.
Segment assets
Offices and residential Retail and leisure Canada Water Other/unallocated Total
2016£m 2015£m 2016£m 2015£m 2016£m 2015£m 2016£m 2015£m 2016£m 2015£m
Property assets
British Land Group 4,181 3,520 5,323 5,275 283 273 - - 9,787 9,068
Share of joint ventures and funds 2,843 2,530 2,018 2,039 - - - 40 4,861 4,609
Total 7,024 6,050 7,341 7,314 283 273 - 40 14,648 13,677
Reconciliation to net assets
British Land Group 2016£m 2015£m
Property assets 14,648 13,677
Other non-current assets 138 256
Non-current assets 14,786 13,933
Other net current liabilities (257) (307)
Adjusted net debt (4,765) (4,918)
Other non-current liabilities (90) (73)
EPRA net assets (undiluted) 9,674 8,635
Convertible dilution 400 400
EPRA net assets (diluted) 10,074 9,035
Non-controlling interests 277 333
EPRA adjustments (732) (803)
Net assets 9,619 8,565
SUPPLEMENTARY DISCLOSURES
Table A: Summary income statement and balance sheet
Summary income statement based on proportional consolidation for the year ended 31 March 2016
The following pro forma information is unaudited and does not form part of the consolidated primary statements or the notes
thereto. It presents the results of the Group, with its share of the results of joint ventures and funds included on a
line-by-line basis and excluding non-controlling interests.
Year ended 31 March 2016 Year ended 31 March 2015
Group£m Joint ventures and funds£m Less non-controlling interests£m Proportionally consolidated£m Group£m Joint ventures and funds£m Less non-controlling interests£m Proportionally consolidated£m
Gross rental income 451 231 (28) 654 399 250 (31) 618
Property operating expenses (26) (9) 1 (34) (24) (10) 1 (33)
Net rental income 425 222 (27) 620 375 240 (30) 585
Administrative expenses (93) (5) 4 (94) (85) (4) 1 (88)
Net fees and other income 16 - 1 17 15 - 2 17
Ungeared Income Return 348 217 (22) 543 305 236 (27) 514
Net financing costs (106) (82) 8 (180) (105) (107) 11 (201)
Underlying Profit 242 135 (14) 363 200 129 (16) 313
Underlying taxation 2 - - 2 - - - -
Underlying Profit after taxation 244 135 (14) 365 200 129 (16) 313
Valuation movement 861 1,473
Other capital and taxation (net)1 48 50
Capital and other 909 1,523
Total return 1,274 1,836
1 Includes other comprehensive income, movement in dilution of share options and the movement in items excluded for EPRA
NAV.
Table A (continued)
Summary balance sheet based on proportional consolidation as at 31 March 2016
The following pro forma information is unaudited and does not form part of the consolidated primary statements or the notes
thereto. It presents
the composition of the EPRA net assets of the Group, with its share of the net assets of the joint venture and fund assets
and liabilities included
on a line-by-line basis, and excluding non-controlling interests, and assuming full dilution.
Group£m Share of joint ventures Less non-controlling interests£m Share Deferred Mark-to-market on effective cash flow hedges and related debt adjustments£m Head Convertible bond adjustment£m Valuation surplus on trading properties£m EPRA Net assets 31 March 2016£m EPRA Net assets31 March 2015£m
& funds£m options£m tax£m leases£m
Retail properties 5,662 2,109 (400)
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