REG - British Land Co PLC - Final Results- Part 2 <Origin Href="QuoteRef">BLND.L</Origin> - Part 3
16/05/2016 07:07
- Part 3: For the preceding part double click ID:nRSP2775Yb
- - - (30) - - 7,341 7,314
Office properties 4,118 2,835 - - - - (16) - 87 7,024 6,050
Canada Water properties 283 - - - - - (6) - 6 283 273
Other properties - - - - - - - - - - 40
Total properties 10,063 4,944 (400) - - - (52) - 93 14,648 13,677
Investments in joint ventures and funds 3,353 (3,353) - - - - - - - - -
Other investments 142 (4) - - - - - - - 138 256
Other net (liabilities) assets (322) (121) 3 36 5 - 52 - - (347) (380)
Net debt (3.617) (1,466) 120 - - 198 - - - (4,765) (4,918)
Dilution due to convertible bond - - - - - - - 400 - 400 400
Net assets 9,619 - (277) 36 5 198 - 400 93 10,074 9,035
EPRA NAV per share (note 2) 919p 829p
EPRA Net Assets Movement
Year ended Year ended
31 March 2016 31 March 2015
£m Pence per share £m Pence per share
Opening EPRA NAV 9,035 829 7,027 688
Income return 365 34 313 31
Capital return 909 77 1,523 145
Dividend paid (235) (21) (228) (27)
Dilution due to 2012 convertible bond - - 400 (8)
Closing EPRA NAV 10,074 919 9,035 829
Table B: EPRA Performance measures
EPRA Performance measures summary table
2016 2015
£m Pence per share £m Pence per share
EPRA Earnings - basic 365 35.6 313 30.8
- diluted 371 34.1 319 29.5
EPRA Net Initial Yield 4.1% 4.3%
EPRA 'topped-up' Net Initial Yield 4.5% 4.8%
EPRA Vacancy Rate 2.0% 2.9%
2016 2015
Net assets Net asset Net assets Net asset
value per share pence value per share pence
EPRA NAV 10,074 919 9,035 829
EPRA NNNAV 9,640 880 8,359 767
Calculation and reconciliation of EPRA/IFRS earnings and EPRA/IFRS earnings per share
2016£m 2015£m
Profit attributable to the shareholders of the Company 1,345 1,710
Exclude:
Group - current taxation (2) 1
Group - deferred taxation (31) 23
Joint ventures and funds - current taxation 1 2
Joint ventures and funds - deferred taxation - (4)
Group - valuation movement (616) (884)
Group - profit on disposal of investment properties and investments (35) (20)
Group - profit on disposal of trading properties (10) (6)
Joint ventures and funds - net valuation movement (including result on disposals) (263) (595)
Changes in fair value of financial instruments and associated close-out costs (31) 47
Non-controlling interests in respect of the above 5 39
Underlying Profit 363 313
Group - underlying current taxation 2 -
EPRA earnings - basic 365 313
Dilutive effect of 2012 convertible bond 6 6
EPRA earnings - diluted 371 319
Profit attributable to the shareholders of the Company 1,345 1,710
Dilutive effect of 2012 convertible bond 6 -
IFRS earnings - diluted 1,351 1,710
2016Numbermillion 2015Numbermillion
Weighted average number of shares 1,036 1,027
Adjustment for Treasury shares (11) (11)
IFRS/EPRA Weighted average number of shares (basic) 1,025 1,016
Dilutive effect of share options 2 2
Dilutive effect of ESOP shares 4 4
Dilutive effect of 2012 convertible bond 58 -
IFRS Weighted average number of shares (diluted) 1,089 1,022
Dilutive effect of 2012 convertible bond - 58
EPRA Weighted average number of shares (diluted) 1,089 1,080
Net assets per share
2016 2015
£m Pence £m Pence
per share per share
Balance sheet net assets 9,619 8,565
Deferred tax arising on revaluation movements 5 13
Mark-to-market on effective cash flow hedges and related debt adjustments 198 257
Dilution effect of share options 36 37
Surplus on trading properties 93 96
Convertible bond adjustment 400 400
Less non-controlling interests (277) (333)
EPRA NAV 10,074 919 9,035 829
Deferred tax arising on revaluation movements (24) (13)
Mark-to-market on effective cash flow hedges and related debt adjustments (153) (257)
Mark-to-market on debt (257) (406)
EPRA NNNAV 9,640 880 8,359 767
EPRA NNNAV is the EPRA NAV adjusted to reflect the fair value of the debt and derivatives and to include the deferred
taxation on revaluations and derivatives.
2016Numbermillion 2015Numbermillion
Number of shares at year end 1,040 1,031
Adjustment for treasury shares (11) (11)
IFRS / EPRA number of shares (basic) 1,029 1,020
Dilutive effect of share options 2 4
Dilutive effect of ESOP shares 7 8
Dilutive effect of 2012 convertible bond 58 -
IFRS number of shares (diluted) 1,096 1,032
Dilutive effect of 2012 convertible bond - 58
EPRA number of shares (diluted) 1,096 1,090
EPRA Net Initial Yield and 'topped-up' Net Initial Yield
2016 2015
£m £m
Investment property - wholly-owned 9,787 9,068
Investment property - share of joint ventures and funds 4,861 4,569
Less developments, residential and land (894) (1,148)
Completed property portfolio 13,754 12,489
Allowance for estimated purchasers' costs 985 784
Gross up completed property portfolio valuation 14,739 13,273
Annualised cash passing rental income 607 575
Property outgoings (8) (8)
Annualised net rents 599 567
Rent expiration of rent-free periods and fixed uplifts1 63 64
'Topped-up' net annualised rent 662 631
EPRA Net Initial Yield 4.1% 4.3%
EPRA 'topped-up' Net Initial Yield 4.5% 4.8%
Including fixed/minimum uplifts received in lieu of rental growth 24 26
Total 'topped-up' net rents 686 657
Overall 'topped-up' Net Initial Yield 4.7% 4.9%
'Topped-up' net annualised rent 662 631
ERV vacant space 14 20
Reversions 42 18
Total ERV 718 669
Net Reversionary Yield 4.9% 5.0%
1 The weighted average period over which rent-free periods expire is 1 year (2014/15: 1 year).
The above is stated for the UK portfolio only.
EPRA Net Initial Yield (NIY) basis of calculation
EPRA NIY is calculated as the annualised net rent (on a cash flow basis), divided by the gross value of the completed
property portfolio. The valuation of our completed property portfolio is determined by our external valuers as at 31 March
2016, plus an allowance for estimated purchaser's costs. Estimated purchaser's costs are determined by the relevant stamp
duty liability, plus an estimate by our valuers of agent and legal fees on notional acquisition. The net rent deduction
allowed for property outgoings is based on our valuers' assumptions on future recurring non-recoverable revenue
expenditure.
In calculating the EPRA 'topped-up' NIY, the annualised net rent is increased by the total contracted rent from expiry of
rent-free periods and future contracted rental uplifts where defined as not in lieu of growth. Overall 'topped-up' NIY is
calculated by adding any other contracted future uplift to the 'topped-up' net annualised rent.
The net reversionary yield is calculated by dividing the total estimated rental value (ERV) for the completed property
portfolio, as determined by our external valuers, by the gross completed property portfolio valuation.
The EPRA vacancy rate is calculated as the ERV of the unrented, lettable space as a proportion of the total rental value of
the completed property portfolio.
EPRA Vacancy Rate
2016£m 2015£m
Annualised potential rental value of vacant premises 14 20
Annualised potential rental value for the completed property portfolio 728 692
EPRA Vacancy Rate 2.0% 2.9%
The above is stated for the UK portfolio only.
EPRA Cost Ratios
2016£m 2015£m
Property operating expenses 25 23
Administrative expenses 90 84
Share of joint ventures and funds expenses 13 14
Less: Performance & management fees (from joint ventures & funds) (9) (9)
Net other fees and commissions (8) (8)
Ground rent costs (3) (3)
EPRA Costs (including direct vacancy costs) (A) 108 101
Direct vacancy costs (11) (11)
EPRA Costs (excluding direct vacancy costs) (B) 97 90
Gross Rental Income less ground rent costs 429 374
Share of joint ventures and funds (GRI less ground rent costs) 222 241
Total Gross Rental Income less ground rent costs (C) 651 615
EPRA Cost Ratio (including direct vacancy costs) (A/C) 16.6% 16.4%
EPRA Cost Ratio (excluding direct vacancy costs) (B/C) 14.9% 14.6%
Overhead and operating expenses capitalised (including share of joint ventures and funds) 4 -
In the current year, employee costs in relation to staff time on development projects have been capitalised into the base
cost of relevant development assets.
Table C: Gross rental income
2016£m 2015£m
Rent receivable 615 581
Spreading of tenant incentives and guaranteed rent increases 36 33
Surrender premia 3 4
Gross rental income 654 618
The current and prior period information is presented on a proportionally consolidated basis, excluding non-controlling
interests.
Table D: Property related capital expenditure
Acquisitions 238 - 238 147 - 147
Development 104 58 162 64 83 147
Like-for-like portfolio 99 6 105 67 23 90
Other 25 15 40 25 8 33
Total property related capex 466 79 545 303 114 417
25
8
33
Total property related capex
466
79
545
303
114
417
The above is presented on a proportionally consolidated basis, excluding non-controlling interests and business
combinations. The 'Other' category contains amounts owing to tenant incentives of £27m (2014/15: £18m), capitalised staff
costs of £4m (2014/15: £nil) and capitalised interest of £9m (2014/15: £15m).
This information is provided by RNS
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