REG - British Land Co PLC - Half-year Report- Part 3 <Origin Href="QuoteRef">BLND.L</Origin> - Part 1

British LandAnnouncement

16/11/2016 07:08

RNS Number : 2797P
British Land Co PLC
16 November 2016
SUPPLEMENTARY TABLES
(Data includes Group's share of Joint Ventures and Funds)
From 1 April 2016


Price (Gross)
Price (BL Share)
Annual Passing Rent
Acquisitions 
Sector
Region
m
m
m2
Completed 





New George Street Estate, Plymouth
Retail
South
64
64
5
Hercules Unit Trust unit purchase1
Retail
Various
18
18
1
Dock Offices
Canada Water
London
8
8
-
Total


90
90
6
1 Units purchased over the course of the period. 18m represents purchased GAV


2 BL share of annualised rent topped up for rent frees
From 1 April 2016


Price (Gross)
Price (BL Share)
Annual Passing Rent
Disposals
Sector
Region
m
m
m1
Completed 





Debenhams, Oxford Street
Retail
London
400
400
13
Superstores
Retail
Various
147
79
3
Dumfries Cuckoo Bridge
Retail
Scotland
20
20
1
The Hempel Collection
Residential
London
5
5
-
Aldgate Place
Residential
London
13
6
-
Exchanged 





Portfolio of Retail assets (York Clifton Moor, Debenhams Manchester, Wakefield Westgate)
Retail 
North
191
191
12
The Hempel Collection
Residential
London
8
8
-
Aldgate Place
Residential
London
1
1
-
Total


785
710
29
1 BL share of annualised rent topped up for rent frees
Gross Rental Income1,2
Accounting Basis m
6 months to 30 September 2016
Annualised as at 30 September 2016

Group
JVs & Funds3
Total
Group
JVs & Funds3
Total
Regional
29
43
72
58
84
142
Local 
49
13
62
97
26
123
Multi-lets
78
56
134
155
110
265
Department Stores and Leisure
26
-
26
43
-
43
Superstores
5
16
21
10
31
41
Solus/Other
10
- 
10
20
- 
20
Retail and Leisure
119
72
191
228
141
369
West End
66
- 
66
127
- 
127
City
2
60
62
4
120
124
Offices
68
60
128
131
120
251
Residential4
2
- 
2
3
- 
3
Offices and Residential
70
60
130
134
120
254
Canada Water
5
- 
5
8
- 
8
Total
194
132
326
370
261
631
Table with previous Retail 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 and 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 30 September 2016 
BL Share
Sq ft
Rent
Occupancy
Lease
(excl. developments under construction)
%
'000
m pa1
rate %2,4
length yrs3,4
Broadgate
50 
4,721 
225 
98.7 
8.0 
Regent's Place
100 
1,590 
80 
99.1 
7.1 
Paddington Central
100 
806
34 
99.9 
7.3 
Meadowhall, Sheffield
50 
1,500 
82 
98.3 
6.6 
The Leadenhall Building
50 
603 
40 
99.9 
10.8 
Sainsbury's Superstores5
52 
2,259 
49 
100.0 
10.8 
Drake Circus, Plymouth6
100 
1,132 
21 
98.0 
5.1 
Teesside, Stockton
100 
523 
17 
98.5 
6.1 
Glasgow Fort 
77 
510 
20 
97.4 
6.4 
Ealing Broadway
100 
423 
13 
93.1 
6.1 
1 Annualised EPRA contracted rent including 100% of Joint Ventures and Funds



2 Includes accommodation under offer or subject to asset management at 30 September 2016


3 Weighted average to first break





4 Excludes committed developments (100 Liverpool Street)
5 Comprises stand-alone stores





6 Includes New George Street Estate, Plymouth acquired during the period
 Portfolio Valuation
At 30 September 2016 
Group
JVs &
Funds1
Total1
H1 Change

m
m
m
%
m
Regional
1,087 
1,791 
2,878 
(2.8)
(83)
Local
1,796 
471 
2,267 
(4.8)
(116)
Multi-lets
2,883 
2,262 
5,145 
(3.7)
(199)
Department Stores and Leisure
638 
1 
639 
3.2 
32 
Superstores
139 
542 
681 
(3.0)
(24)
Solus/Other
346 
- 
346 
3.7 
13 
Retail and Leisure
4,006 
2,805 
6,811 
(2.4)
(178)
West End
3,868 
- 
3,868 
(2.4)
(95)
City
103 
2,653 
2,756 
(4.9)
(143)
Offices
3,971 
2,653 
6,624 
(3.5)
(238)
Residential3
173 
22 
195 
- 
-
Offices and Residential
4,144 
2,675 
6,819 
(3.3)
(238)
Canada Water
289 
- 
289 
(2.1)
(6)
Total
8,439 
5,480 
13,919 
(2.8)
(422)
Standing Investments
7,810 
5,287 
13,097 
(2.8)
(395)
Developments
629 
193 
822 
(3.0)
(27)
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 capex) of properties held at the balance sheet date, including developments (classified by end use), purchases and sales
3 Stand-alone residential





 Portfolio Valuation - Previous Classification Basis
At 30 September 2016 
Group
JVs &
Funds1
Total1
H1 Change

m
m
m
%
m
Shopping parks 
 2,104 
1,137 
3,241 
(4.1)
(139)
Shopping centres 
1,125 
1,121 
2,246 
(2.1)
(47)
Superstores 
139 
542 
681 
(3.0) 
(24) 
Department stores 
241 
1 
242 
5.6
34
Leisure 
397 
4 
401 
(0.5) 
(2) 
Retail and Leisure
4,006 
2,805 
6,811 
(2.4)
(178)
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 capex) of properties held at the balance sheet date, including developments (classified by end use), purchases and sales








Portfolio Weighting
At 30 September
2015
2016
2016
2016


(current)
(current)
(pro-forma1)

%
%
m
%
Regional Lifestyle
19.5 
20.7 
2,878
19.5 
Local Lifestyle
16.3 
16.3 
2,267
16.1 
Multi-lets
35.8 
37.0 
5,145
35.6 
Department Stores and Leisure
7.0 
4.6 
639
4.4 
Superstores
6.0 
4.9 
681
4.8 
Solus/Other
2.6 
2.5 
346
2.3 
Retail and Leisure
51.4 
49.0 
6,811
47.1 
West End
25.5 
27.8 
3,868
28.4 
City
19.6 
19.8 
2,756
21.1 
Offices
45.1 
47.6 
6,624
49.5 
Residential2
1.5 
1.4 
195
1.5 
Offices and Residential
46.6 
49.0 
6,819
51.0 
Canada Water
2.0 
2.0 
289
1.9 
Total
100.0 
100.0 
13,919
100.0 
London Weighting
57%
58%
8,508
58%
Table with previous/IPD classification provided on Company website at www.britishland.com/results
1 Pro forma for developments under construction and committed developments at estimated end value (as determined by the Group's external valuers) and post period end transactions 
2 Stand-alone residential
Total Property Return (as calculated by IPD)
6 months to 30 September 2016
Retail
Offices
Total
%
British Land
IPD
British Land
IPD
British Land
IPD
Capital Return
(2.4)
(3.0)
(3.4)
(2.9)
(2.8)
(2.1)
- ERV Growth
0.9 
0.5 
0.1 
1.0 
0.5 
0.8 
- Yield Expansion1
18 bps
20 bps
21 bps
21 bps
19 bps
15 bps
Income Return
2.6 
2.5 
1.7 
1.8 
2.1 
2.3 
Total Property Return
0.1 
(0.5)
(1.8)
(1.1)
(0.8)
0.2 
1 Net equivalent yield movement
Portfolio Yields and ERV Movements 1,2
At 30 September 2016 
EPRA net initial yield %
EPRA topped up net initial yield %3
Overall topped up net initial yield %4
Net equivalent yield %
Net equivalent yield expansion bps5
Net reversionary yield %
ERV 
Growth %5,6
Regional 
4.5 
4.7 
4.7 
5.0 
16 
5.0 

1.3
Local 
5.1 
5.3 
5.4 
5.5 
29 
5.5 

1.3
Multi-lets
4.8 
4.9 
5.0 
5.2 
22 
5.2 

1.3
Department Stores and Leisure
6.0 
6.0 
7.5 
6.1 
4 
4.5 

0.4
Superstores
5.5 
5.5 
5.5 
5.4 
8 
5.3 

(3.0)
Solus/Other
5.7 
5.7 
5.7 
5.3 
9 
4.9 

4.8
Retail and Leisure
5.0 
5.1 
5.3 
5.3 
18 
5.1 

0.9
West End
3.8 
4.0 
4.1 
4.5 
16 
4.8 

0.3
City
3.3 
4.6 
4.6 
4.6 
27 
5.3 

(0.2)
Offices
3.6 
4.2 
4.3 
4.6 
21 
5.0 

0.1
Canada Water
2.7 
2.7 
2.8 
3.3 
4 
3.4 

0.9
Total
4.3 
4.7 
4.8 
4.9 
19 
5.0 

0.5
1 Including notional purchaser's costs
2 Excluding developments under construction, committed developments, 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)
5 6 months to 30 September 2016
6 As calculated by IPD



Portfolio Yields and ERV Movements1,2 - Previous Classification Basis
At 30 September 2016 
EPRA net initial yield %
EPRA topped up net initial yield %3
Overall topped up net initial yield %4
Net equivalent yield %
Net equivalent yield expansion bps5
Net reversionary yield %
ERV 
Growth %5,6
Shopping Parks
5.0 
5.1 
5.2 
5.3 
26 
5.3 

1.6
Shopping Centres
4.6 
4.8 
4.8 
5.0 
14 
5.1 

1.3
Superstores
5.5 
5.5 
5.5 
5.4 
8 
5.3 

(3.0)
Department Stores
5.3 
5.3 
7.3 
5.5 
3 
4.1 

0.4
Leisure
6.4 
6.4 
7.7 
6.5 
4 
4.8 

0.4
Retail and Leisure
5.0 
5.1 
5.3 
5.3 
18 
5.1 

0.9
1 Including notional purchaser's costs
2 Excluding developments under construction, committed developments, 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)
5 6 months to 30 September 2016
6 As calculated by IPD
Lease Length and Occupancy1
At 30 September 2016 
Average lease length yrs
Occupancy rate %

Toexpiry
To break
Occupancy
Occupancy (underlying)2
Regional
8.0 
6.9 
96.6 
98.1 
Local 
8.4 
7.4 
97.6 
98.0 
Multi-lets
8.2 
7.2 
97.1 
98.1 
Department Stores and Leisure
18.3 
18.2 
99.9 
99.9 
Superstores
12.0 
11.6 
100.0 
100.0 
Solus/Other
13.0 
12.8 
100.0 
100.0 
Retail and Leisure
10.0 
9.2 
97.8 
98.5 
West End
9.1 
7.2 
95.5 
96.7 
City
10.1 
8.5 
98.2 
98.5 
Offices
9.6 
7.8 
96.8 
97.5 
Canada Water
7.1 
6.9 
96.9 
98.1 
Total
9.8 
8.5 
97.3 
98.1 
Table with previous or IPD classification provided on Company website at www.britishland.com/results
1 Excluding developments under construction, committed developments, assets held for development and residential assets
2 Including accommodation under offer or subject to asset management and owner-occupied space





Annualised Rent and Estimated Rental Value (ERV)1
At 30 September 2016 
Annualised rent
(valuation basis) m2
ERV m
Average rent psf
Group
JVs & Funds
Total
Total
Contracted3
ERV
Regional 
60
85
145
158
31.2
33.3
Local 
98
28
126
135
24.3
25.2
Multi-lets
158
113
271
293
27.6
29.0
Department Stores and Leisure
41
- 
41
32
13.8
10.6
Superstores
8
32
40
38
20.7
19.7
Solus/Other
20
- 
20
17
19.8
17.0
Retail and Leisure
227
145
372
380
23.7
23.7
West End
137
- 
137
171
53.0
61.7
City
4
88
92
149
51.0
60.2
Offices
141
88
229
320
52.4
60.9
Residential4
4
- 
4
4


Offices and Residential
145
88
233
324


Canada Water
8
- 
8
10
18.5
21.7
Total
380
233
613
714
29.7
31.9
Table with previous classification provided on Company website at www.britishland.com/results
1 Excluding developments under construction, committed developments (100 Liverpool Street with annualised rents 9m and ERV 13m) 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
For period to 31 March 
2017
2018
2019
2020
2021
2017-19
2017-21
At 30 September 2016 
m
m
m
m
m
m
m
Regional 
 6 
 11 
 17 
 10 
 18 
34 
62 
Local 
 4 
 25 
 21 
 12 
 10 
50 
72 
Multi-lets
 10 
 36 
 38 
 22 
 28 
84 
134 
Department Stores and Leisure
 - 
 - 
 - 
 - 
 - 
- 
- 
Superstores
 1 
 4 
 8 
 11 
 13 
13 
37 
Solus/Other
 - 
 - 
 - 
 - 
 - 
- 
- 
Retail and Leisure
11 
40 
46 
33 
41 
97 
171 
West End
4 
22 
20 
15 
9 
46 
70 
City
- 
4 
14 
14 
16 
18 
48 
Offices
4 
26 
34 
29 
25 
64 
118 
Canada Water
- 
2 
- 
- 
- 
2 
2 
Total
15 
68 
80 
62 
66 
163 
291 
Potential uplift at current ERV2
- 
2 
4 
3 
1 
6 
10 
Table with previous classification provided on Company website at www.britishland.com/results
1 Excluding developments under construction, committed developments and assets held for development 
2 As determined by the Group's valuers, excluding near term developments
Rent Subject to Lease Break or Expiry1
For period to 31 March 
2017
2018
2019
2020
2021
2017-19
2017-21
At 30 September 2016 
m
m
m
m
m
m
m
Regional 
6 
15 
9 
13 
10 
30 
53 
Local 
6 
5 
8 
11 
9 
19 
39 
Multi-lets
12 
20 
17 
24 
19 
49 
92 
Department Stores and Leisure
- 
1 
- 
- 
- 
1 
1 
Superstores
- 
- 
- 
- 
- 
- 
- 
Solus/Other
- 
- 
2 
- 
- 
2 
2 
Retail and Leisure
12 
21 
19 
24 
19 
52 
95 
West End
6 
11 
10 
4 
18 
27 
49 
City
10 
- 
18 
11 
8 
28 
47 
Offices
16 
11 
28 
15 
26
55 
96 
Canada Water
1 
- 
- 
- 
1 
1 
2 
Total
29 
32 
47 
39 
46 
108 
193 
% of contracted rent
4.3%
4.7%
6.9%
6.0%
6.7%
15.9%
28.6%
Potential uplift at current ERV (excl. Near and Medium term developments)
2
2
6
1
2
10
13
Table with previous classification provided on Company website at www.britishland.com/results
1 Excluding developments under construction, committed developments and assets held for development
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 yrs
No of Stores
Valuation (BL share)
m
Capital Value
psf
WALL to FB yrs
No of Stores
Valuation (BL share)
m
Capital Value
psf
WALL
to FB yrs
>100
 8 
 171 
 256 
 11.9 
 5 
 339 
 423 
 12.5 
 13 
 510 
 347 
 12.3 
75-100
 11 
 197 
 398 
 12.1 
 3 
 61 
 276 
 15.8 
 14 
 258 
 361 
 13.0 
50-75
 16 
 248 
 353 
 12.1 
 1 
 12 
 189 
 10.6 
 17 
 260 
 339 
 12.0 
25-50
 8 
 50 
 220 
 7.8 
 2 
 27 
 502 
 13.0 
 10 
 77 
 274 
 9.4 
0-25
 2 
 6 
 145 
 8.6 
 18 
 79 
 426 
 10.6 
 20 
 85 
 373 
 10.4 
September 2016
 45 
 672 
 315 
 11.6 
 29 
 518 
 391 
 12.6 
 74 
 1,190 
 344 
 12.1 
March 2016
 47 
 763 
 383 
 13.9 
 28 
 536 
 482 
 12.7 
 75 
 1,299 
 419 
 13.5 













Geographical Spread

Gross Rent (BL Share)
Lease Structure

London and South

54%
Tesco


38m
RPI and Fixed

9%
Rest of UK

46%
Sainsburys


26m
OMRR

91%



Other


5m




1 Excludes 9m non-foodstore occupiers in superstore led assets
2 Excludes non food-format stores e.g. Asda Living








3 Excludes 93m of investments held for trading comprising freehold reversions in a pool of Sainsbury's Superstores

Occupiers Representing over 0.5% of Total Contracted Rent
At 30 September 2016
% of total rent


% of total rent
UBS AG1
5.8 

Microsoft Co
0.9 
Tesco plc
5.7 

Vodafone
0.9 
J Sainsbury plc
4.7 

Aon Plc
0.9 
Debenhams
3.8 

SportsDirect
0.8 
Kingfisher (B&Q)
2.6 

Asda Group
0.8 
Next plc
2.3 

JPMorgan
0.8 
HM Government
2.2 

Deutsche Bank
0.7 
Virgin Active
2.0 

JD Sports
0.7 
Facebook
1.7 

Reed Smith
0.7 
Wesfarmers (Homebase/Bunnings)
1.6 

H&M
0.7 
Spirit Group
1.6 

Mothercare
0.7 
M&S Plc
1.5 

Mayer Brown
0.7 
Alliance Boots
1.5 

Lewis Trust (River Island)
0.6 
Visa Inc
1.4 

ICAP Plc
0.6 
Dixons Carphone
1.4 

Lend Lease
0.6 
Dentsu Aegis
1.4 

TGI Fridays
0.6 
Arcadia Group
1.3 

Pets at Home
0.6 
Herbert Smith
1.2 

Steinhoff
0.5 
RBS
1.1 

MS Amlin Plc
0.5 
TJX Cos Inc (TK Maxx)
1.0 

Credit Agricole
0.5 
Gazprom
1.0 

Henderson
0.5 
New Look
0.9 



1 Rent contracted on both 5 Broadgate and run off of 1-3 Finsbury Avenue and 100 Liverpool Street. 3.0% pro-forma for run off of UBS rent at 1-3 Finsbury Avenue/100 Liverpool Street.

Recently Completed and Committed Developments
At 30 September 2016
Sector
BL Share
Sq ft
PC Calendar Year
Current Value
Cost to complete
ERV
Let & Under Offer
Resi Sales Exchanged & not completed 

%
'000

m1
m2
m3
m
m4










Aldgate Place, Phase 1
Residential
50
221
Completed 
7
9
- 
n/a 
-
Clarges Mayfair - Offices
Offices 
100
51
Completed 
120
9
5.5
2.0
n/a 
Glasgow Fort Leisure Quarter
Retail 
75
12
Completed 
8
- 
0.4
0.3
n/a 
Total Completed in Period


284

135
18
5.9
2.3
-










4 Kingdom Street
Offices 
100
147
Q2 2017
111
39
9.4
- 
n/a 
Clarges Mayfair - Retail and Residential
Residential 
100
114
Q4 2017
322
74
0.8
- 
259
The Hempel Phase 1
Residential
100
25
Q4 2016 
16
1
n/a
n/a 
13
The Hempel Phase 2
Residential
100
32
Q4 2016
55
6
n/a
n/a 
14
100 Liverpool Street
Offices 
50
520
Q4 2019
115
157
18.5
- 
- 
Total Under Construction and Committed

838

619
277
28.7
-
286
Retail Capex5





117



Data includes Group's share of properties in Joint Ventures and Funds (except area which is shown at 100%)
1Excludes completed sales of 93m 
2From 1 October 2016. Cost to complete excludes notional interest as interest is capitalised individually on each development at our capitalisation rate
3Estimated headline rental value net of rent payable under head leases (excluding tenant incentives)
4 At agreed sales price 
5Capex committed and underway within our investment portfolio relating to leasing and asset management
Near term Pipeline 
At 30 September 2016
Sector
BL Share
Sq ft
Start On Site
Total Cost 1
Status
'000
m
1 Finsbury Avenue
Offices 
50
281
2017
102
Consented 
Speke (Leisure)
Retail
67
66
2017
18
Consented
Plymouth (Leisure)
Retail 
100
102
2018
35
Consented
Total Near term


449

155

Retail Capex2




100

1 Total cost including site value. Excludes notional interest as interest is capitalised individually on each development at our capitalisation rate
2 Forecast capital commitments within our investment portfolio over the next 12 months relating to leasing and asset enhancement














Medium term Pipeline 
At 30 September 2016
Sector
BL Share
Sq ft
Status
'000
2-3 Finsbury Avenue
Offices 
50
560
Resolution to grant
135 Bishopsgate
Offices 
50
340
Pre-submission 
Blossom Street
Offices 
100
340
Consented 
1 Triton Square
Offices 
100
338
Submitted 
5 Kingdom Street
Offices 
100
240
Consented 
Gateway Building
Offices 
100
104
Pre-submission 
Aldgate Phase 2
Residential 
50
145
Consented 
Canada Water Phase 11
Mixed Use 
100
5,500
Pre-submission 
Bradford (Retail & Leisure)
Retail 
100
43
Consented 
Meadowhall Leisure
Retail 
50
330
Submitted
Eden Walk Retail and Residential
Mixed Use 
50
562
Resolution to grant 
Total Medium Term


8,502

1 Assumed net area based on gross area of up to 7m sq ft
Residential development programme
At 30 September 2016
Sq Ft
No. Market Units
PC Date/
Status
BL Share
Current Value1
Cost To come2
Sales Exchanged & not Completed1,3
'000


%
m
m
m
Clarges Mayfair4
103
34
Q4 2017
100
308
 72 
259
Mixed Use
103
34


308
 72 
259
The Hempel Phase 1
25
15
Q4 2016
100
16
 1 
13
The Hempel Phase 2
32
19
Q4 2016
100
55
 6 
14
Aldgate Place Phase 1
221
154
Completed
50
7
 9 
-
Resi-led
278
188


78
 16 
27
Total Committed Residential
381
222


386
 88 
286
Data includes Group's share of properties in Joint Ventures and Funds (except area which is shown at 100%)
1Excludes completed sales of 93m 

2From 1 October 2016. Cost to complete excludes notional interest as interest is capitalised individually on each development at our capitalisation rate

3 At agreed sales price 







4Includes 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 capex incurred, expressed as a percentage of capital employed (start value plus capex) 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.
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 capex 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 asset value (EPRA NAV)is a proportionally consolidated measure, representing 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. It includes the valuation surplus on trading properties and is adjusted for the dilutive impact of share options. 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 British Land's ownership share for each asset..
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 financing costs 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 incentive adjustments but excludes properties held for development in either period and lease accounting adjustments related to 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 'NEY' 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 'NIY' 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 British Land's ownership share for each asset.
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 For certain periods, 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 capex 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 accounting return is the growth in EPRA NAV per share for the period plus dividends paid 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 period.
Valuation uplift is the increase in the portfolio valuation and sales receipts of properties sold during the period, net of capex, 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 capex, 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 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. Yield expansion refers to an increase in yields.

This information is provided by RNS
The company news service from the London Stock Exchange
  END
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