REG - Derwent London PLC - INTERIM RESULTS FOR THE SIX MONTHS ENDED 30 JUNE <Origin Href="QuoteRef">DLN.L</Origin> - Part 3
29/10/2014 12:44
- Part 3: For the preceding part double click ID:nRSN0758Pb
0.8 0.1 29.9
Interest effect of dilutive convertible bonds 5.2 - - - (5.2) -
Diluted earnings 370.2 (8.4) (327.6) 0.8 (5.1) 29.9
Earnings per share 355.84p 29.15p
Diluted earnings per share 320.77p 29.02p
Adjustments
IFRS A B C D EPRA
£m £m £m £m £m £m
Half year to 30 June 2013
Net property and other income 59.5 - - - - 59.5
Total administrative expenses (12.0) - - - 0.2 (11.8)
Revaluation surplus 175.3 - (175.3) - - -
Profit on disposal of investment property 0.3 (0.3) - - - -
Net finance costs (20.7) - - - - (20.7)
Movement in fair value of derivative
financial instruments 17.0 - - (17.0) - -
Financial derivative termination costs (0.3) - - 0.3 - -
Share of results of joint ventures 0.7 - 0.3 - - 1.0
Profit before tax 219.8 (0.3) (175.0) (16.7) 0.2 28.0
Tax charge (1.2) - 0.5 - - (0.7)
Profit for the period 218.6 (0.3) (174.5) (16.7) 0.2 27.3
Minority interest (3.9) - 2.5 0.6 - (0.8)
Profit for the period attributable to
equity shareholders 214.7 (0.3) (172.0) (16.1) 0.2 26.5
Interest effect of dilutive convertible bonds 3.3 - - - (3.3) -
Diluted earnings 218.0 (0.3) (172.0) (16.1) (3.1) 26.5
Earnings per share 210.22p 25.95p
Diluted earnings per share 197.31p 25.83p
Adjustments
IFRS A B C D EPRA
£m £m £m £m £m £m
Year to 31 December 2013
Net property and other income 124.3 - - - - 124.3
Total administrative expenses (26.7) - - - 0.3 (26.4)
Revaluation surplus 335.6 - (335.6) - - -
Profit on disposal of investment property 53.5 (53.5) - - - -
Net finance costs (44.4) - - - 3.2 (41.2)
Movement in fair value of derivative
financial instruments 38.5 - - (38.5) - -
Financial derivative termination costs (13.7) - - 13.7 - -
Share of results of joint ventures 0.8 - 0.3 - - 1.1
Profit before tax 467.9 (53.5) (335.3) (24.8) 3.5 57.8
Tax charge (2.4) - 1.3 - - (1.1)
Profit for the period 465.5 (53.5) (334.0) (24.8) 3.5 56.7
Minority interest (8.9) 0.1 6.2 1.0 - (1.6)
Profit for the period attributable to
equity shareholders 456.6 (53.4) (327.8) (23.8) 3.5 55.1
Interest effect of dilutive convertible bonds 8.2 - - - (8.2) -
Diluted earnings 464.8 (53.4) (327.8) (23.8) (4.7) 55.1
Earnings per share 446.40p 53.87p
Diluted earnings per share 412.72p 53.61p
Net asset value and net asset value per share
Undiluted Diluted
£m p p
At 30 June 2014
Net assets attributable to equity shareholders - diluted 2,817.6 2,537
Remove conversion of 2.75% unsecured convertible bonds 2016 (169.1)
Net assets attributable to equity shareholders - undiluted 2,648.5 2,578
Adjustment for:
Revaluation of trading property 2.4
Deferred tax on revaluation surplus 6.3
Fair value of derivative financial instruments 15.9
Fair value adjustment to secured bonds 16.5
Minority interest in respect of the above (2.2)
EPRA net asset value - undiluted 2,687.4 2,616
Adjustment for:
Potential conversion of 2.75% unsecured convertible bonds 2016 169.1
EPRA net asset value - diluted 2,856.5 2,572
Adjustment for:
Deferred tax on revaluation surplus (6.3)
Fair value of derivative financial instruments (15.9)
Mark-to-market of 1.125% unsecured convertible bonds 2019 (5.9)
Mark-to-market of secured bonds (33.3)
Mark-to-market of fixed rate secured loan 6.0
Mark-to-market of fixed rate unsecured private placement notes (0.4)
Unamortised issue and arrangement costs (12.3)
Minority interest in respect of the above 2.2
EPRA triple net asset value - diluted 2,790.6 2,513
Adjustment for 2.75% unsecured convertible bonds 2016:
Remove conversion of bonds (169.1)
Unamortised issue and arrangement costs (1.8)
Mark-to-market of bonds (41.7)
EPRA triple net asset value - undiluted 2,578.0 2,510
Undiluted Diluted
£m p p
At 30 June 2013
Net assets attributable to equity shareholders 2,056.7 2,008 1,999
Adjustment for:
Deferred tax on revaluation surplus 4.6
Fair value of derivative financial instruments 37.3
Fair value adjustment to secured bonds 17.4
Minority interest in respect of the above (2.4)
EPRA net asset value 2,113.6 2,064 2,054
Adjustment for:
Deferred tax on revaluation surplus (4.6)
Fair value of derivative financial instruments (37.3)
Mark-to-market of unsecured convertible bonds (30.2)
Mark-to-market of secured bonds (27.7)
Mark-to-market of fixed rate secured loan 5.6
Unamortised issue and arrangement costs * (9.7)
Minority interest in respect of the above 2.4
EPRA triple net asset value 2,012.1 1,965 1,955
Undiluted Diluted
£m p p
At 31 December 2013
Net assets attributable to equity shareholders - diluted 2,471.7 2,230
Remove conversion of 2.75% unsecured convertible bonds 2016 (167.7)
Net assets attributable to equity shareholders - undiluted 2,304.0 2,248
Adjustment for:
Revaluation of trading property 2.1
Deferred tax on revaluation surplus 5.5
Fair value of derivative financial instruments 15.9
Fair value adjustment to secured bonds 16.9
Minority interest in respect of the above (2.2)
EPRA net asset value - undiluted 2,342.2 2,286
Adjustment for:
Potential conversion of 2.75% unsecured convertible bonds 2016 167.7
EPRA net asset value - diluted 2,509.9 2,264
Adjustment for:
Deferred tax on revaluation surplus (5.5)
Fair value of derivative financial instruments (15.9)
Mark-to-market of 1.125% unsecured convertible bonds 2019 0.1
Mark-to-market of secured bonds (24.0)
Mark-to-market of fixed rate secured loan 8.7
Unamortised issue and arrangement costs (12.3)
Minority interest in respect of the above 2.2
EPRA triple net asset value - diluted 2,463.2 2,222
Adjustment for 2.75% unsecured convertible bonds 2016:
Remove conversion of bonds (167.7)
Unamortised issue and arrangement costs (2.3)
Mark-to-market of bonds (34.5)
EPRA triple net asset value - undiluted 2,258.7 2,204
* Following a review of the components of EPRA triple net asset value at the 2013 year end, the unamortised issue and arrangement costs were excluded from this figure. Accordingly, the 30 June 2013 figures have been amended to provide a comparative basis.
Cost ratios
Half year to 30.06.2014 Half year to 30.06.2013 Year to 31.12.2013
£m £m £m
Administrative expenses 13.1 11.8 26.4
Other property costs 3.3 4.0 6.9
Dilapidation receipts - (0.1) (0.1)
Net service charge costs 0.7 1.2 1.9
Service charge costs recovered through rents
but not separately invoiced (0.1) (0.2) (0.3)
Management fees received less estimated profit element (1.1) (1.1) (2.0)
Share of joint ventures' expenses 0.1 0.2 0.4
EPRA costs (including direct vacancy costs) (A) 16.0 15.8 33.2
Direct vacancy costs (1.2) (2.3) (3.4)
EPRA costs (excluding direct vacancy costs) (B) 14.8 13.5 29.8
Gross rental income 67.9 63.9 130.9
Ground rent (0.2) (0.2) (0.4)
Service charge components of rental income (0.1) (0.2) (0.3)
Share of joint ventures' rental income less ground rent 0.6 1.2 1.9
Adjusted gross rental income (C) 68.2 64.7 132.1
EPRA cost ratio (including direct vacancy costs) (A/C) 23.5% 24.4% 25.1%
EPRA cost ratio (excluding direct vacancy costs) (B/C) 21.7% 20.9% 22.6%
In addition to the two EPRA cost ratios, the Group has calculated an additional cost ratio based on its property portfolio fair value to recognise the 'total return' nature of the Group's activities.
Property portfolio at fair value (D) 3,742.1 3,103.7 3,353.1
Portfolio cost ratio (A/D) - annualised 0.9% 1.0% 1.0%
The Group has not capitalised any overhead or operating expenses in either 2014 or 2013.
12. Property portfolio
Carrying value
Total Owner- Assets Total
investment occupied held for Trading property
Freehold Leasehold property property sale property portfolio
£m £m £m £m £m £m £m
At 1 January 2014 2,773.2 469.7 3,242.9 19.7 - 22.6 3,285.2
Acquisitions 13.6 - 13.6 - - - 13.6
Capital expenditure 38.6 12.4 51.0 - - 6.6 57.6
Interest capitalisation 1.6 0.6 2.2 - - 0.1 2.3
Additions 53.8 13.0 66.8 - - 6.7 73.5
Disposals (23.6) - (23.6) - - - (23.6)
Depreciation - - - (0.1) - - (0.1)
Transfers (35.5) - (35.5) - 35.5 - -
Revaluation 298.7 32.1 330.8 3.5 - - 334.3
At 30 June 2014 3,066.6 514.8 3,581.4 23.1 35.5 29.3 3,669.3
At 1 January 2013 2,296.6 476.0 2,772.6 17.9 16.5 - 2,807.0
Acquisitions 29.6 - 29.6 - - - 29.6
Capital expenditure
- More to follow, for following part double click ID:nRSN0758PdRecent news on Derwent London
See all newsREG - Derwent London PLC - Director/PDMR Shareholding
AnnouncementREG - Derwent London PLC - Director/PDMR Shareholding
AnnouncementREG - Stock Exch Notice Lon. Merch. Secs Ltd - Cancellation - LONDON MERCHANT SECURITIES LD
AnnouncementREG - Derwent London PLC - Redemption of the £175m 6.5% Secured bonds 2026
AnnouncementREG - Derwent London PLC - Network building fully pre-let
Announcement