REG - Great Portland Ests. - Great Portland Estates Half Year Results 2017 <Origin Href="QuoteRef">GPOR.L</Origin> - Part 2
15/11/2017 07:08
- Part 2: For the preceding part double click ID:nRSO5097Wa
Notes Six months to Six months to
31 March 30 September 30 September
2017 2017 2016
Audited Unaudited Unaudited
£m £m £m
Operating activities
(137.5) Operating profit/(loss) 57.9 (102.3)
192.4 Adjustments for non-cash items 18 (29.6) 128.5
8.8 Deposits received on forward sale of residential units 0.5 5.9
(75.0) Development of trading property (12.5) (49.7)
(12.7) (Increase)/decrease in receivables (5.8) 0.8
(5.4) Increase/(decrease) in payables 5.3 (4.1)
(29.4) Cash generated/(absorbed) by operations 15.8 (20.9)
(29.0) Interest paid (8.4) (13.7)
0.1 Tax received 0.4 -
(58.3) Cash inflow/(outflow) from operating activities 7.8 (34.6)
Investing activities
56.2 Distributions from joint ventures 8.4 23.6
(187.3) Purchase and development of property (107.7) (145.1)
(4.9) Purchase of plant and equipment (0.2) (3.0)
346.5 Sale of properties 243.0 26.7
(6.7) Investment in joint ventures (4.1) (4.0)
203.8 Cash inflow/(outflow) from investing activities 139.4 (101.8)
Financing activities
109.0 Revolving credit facility (repaid)/drawn (47.0) 169.0
- Issue of private placement notes 174.1 -
(159.7) Redemption of private placement notes (127.7) -
(51.5) Premium paid on redemption of private placement notes (36.6) -
34.7 Termination of cross currency swaps 23.1 -
(33.6) Funds to joint ventures (15.1) (18.1)
(31.6) Equity dividends paid (129.7) (18.2)
(132.7) Cash (outflow)/inflow from financing activities (158.9) 132.7
12.8 Net (decrease)/increase in cash and cash equivalents (11.7) (3.7)
12.7 Cash and cash equivalents at 1 April 25.5 12.7
25.5 Cash and cash equivalents at balance sheet date 13.8 9.0
Condensed group statement of changes in equity
For the six months ended 30 September 2017 (unaudited)
Share capital£m Share premium account£m Capital Retained earnings Investment in own shares£m Total equity£m
redemption £m
reserve
£m
Total equity at 1 April 2017 43.0 352.0 16.4 2,330.8 (3.8) 2,738.4
Profit for the period - - - 25.3 - 25.3
Actuarial gain on defined benefit scheme - - - 1.1 - 1.1
Total comprehensive income for the period - - - 26.4 - 26.4
Employee Long-Term Incentive Plan and Share Matching Plan charge - - - - 0.8 0.8
Transfer to retained earnings - - - 0.6 (0.6) -
Dividends to shareholders - - - (130.8) - (130.8)
Total equity at 30 September 2017 43.0 352.0 16.4 2,227.0 (3.6) 2,634.8
Condensed group statement of changes in equity
For the six months ended 30 September 2016 (unaudited)
Share capital£m Share premium account£m Capital Retained earnings Investment in own shares£m Total equity£m
redemption £m
reserve
£m
Total equity at 1 April 2016 43.0 352.0 16.4 2,509.9 (9.1) 2,912.2
Loss for the period - - - (62.8) - (62.8)
Actuarial deficit on defined benefit scheme - - - (4.8) - (4.8)
Total comprehensive expense for the period - - - (67.6) - (67.6)
Employee Long-Term Incentive Plan and Share Matching Plan charge - - - - 1.3 1.3
Transfer to retained earnings - - - (4.3) 4.3 -
Dividends to shareholders - - - (19.1) - (19.1)
Total equity at 30 September 2016 43.0 352.0 16.4 2,418.9 (3.5) 2,826.8
Condensed group statement of changes in equity
For the year ended 31 March 2017 (audited)
Share capital£m Share premium account£m Capital Retained earnings Investment in own shares Total equity£m
redemption £m £m
reserve
£m
Total equity at 1 April 2016 43.0 352.0 16.4 2,509.9 (9.1) 2,912.2
Loss for the year - - - (139.4) - (139.4)
Actuarial deficit on defined benefit scheme - - - (3.6) - (3.6)
Total comprehensive expense for the year - - - (143.0) - (143.0)
Employee Long-Term Incentive Plan and Share Matching Plan charge - - - - 1.0 1.0
Transfer to retained earnings - - - (4.3) 4.3 -
Dividends to shareholders - - - (31.8) - (31.8)
Total equity at 31 March 2017 43.0 352.0 16.4 2,330.8 (3.8) 2,738.4
Condensed notes forming part of the half year results
1 Basis of preparation
The information for the year ended 31 March 2017 does not constitute statutory
accounts as defined in section 434 of the Companies Act 2006. A copy of the
statutory accounts for that year has been delivered to the Registrar of
Companies. The auditor's report on those accounts was not qualified, did not
include a reference to any matters to which the auditors drew attention by way
of emphasis without qualifying the report and did not contain statements under
section 498(2) or (3) of the Companies Act 2006.
The annual financial statements of Great Portland Estates plc are prepared in
accordance with IFRSs as adopted by the European Union. The condensed set of
financial statements included in this half-yearly financial report has been
prepared in accordance with International Accounting Standard 34 Interim
Financial Reporting, as adopted by the European Union. The same accounting
policies, presentation and methods of computation are followed and there have
been no changes in the nature of the Significant Judgements and Key Sources of
Estimation Uncertainty in the condensed set of financial statements to those
applied in the Group's latest annual audited financial statements. The Group's
performance is not subject to seasonal fluctuations.
The directors do not expect that the adoption of the new and revised IFRSs
that have been issued but are not yet effective will have a material impact on
the financial statements of the Group in future periods, except that IFRS 9
will impact both the measurement and disclosures of financial instruments,
IFRS 16 will require the Group to include its limited lease liabilities and
associated right of use assets onto its balance sheet and IFRS 15 may have an
impact on revenue recognition and related disclosures. Beyond the information
above, it is not practicable to provide a reasonable estimate of the effect of
these new standards until a detailed review is complete.
Going concern
Details of the market in which the Group operates, together with factors
likely to affect its future development and performance, are set out in the
"Our market" and "Our business" sections of this report. The financial
position of the Group, its liquidity position and borrowing facilities are
described in "Our financial results" and in the notes of the half year
results.
The Directors have reviewed the current and projected financial position of
the Group, making reasonable assumptions about future trading performance.
After making enquiries, the Directors have a reasonable expectation that the
Company and the Group have adequate resources to continue in operational
existence for the foreseeable future. Accordingly, they continue to adopt the
going concern basis in preparing the half year results.
2 Total revenue
Year to Six months to 30 September 2017 £m Six months to
31 March 30 September
2017 2016
£m £m
77.7 Gross rental income 42.1 37.6
3.1 Spreading of lease incentives 3.1 1.0
11.8 Service charge income 6.5 6.7
4.1 Joint venture fee income 1.1 1.6
25.2 Development management revenue 12.6 10.5
121.9 65.4 57.4
3 Net rental income
Year to Six months to Six months to
31 March 30 September 30 September
2017 2017 2016
£m £m £m
77.7 Gross rental income 42.1 37.6
3.1 Spreading of lease incentives 3.1 1.0
(0.6) Ground rent (0.5) (0.3)
80.2 44.7 38.3
4 Property expenses
Year to Six months to Six months to
31 March 30 September 30 September
2017 2017 2016
£m £m £m
(11.8) Service charge income (6.5) (6.7)
13.9 Service charge expenses 7.9 7.6
5.2 Other property expenses 2.3 2.3
7.3 3.7 3.2
5 Finance income
Year to Six months to Six months to
31 March 30 September 30 September
2017 2017 2016
£m £m £m
9.0 Interest income on joint venture balances 5.2 4.3
9.0 5.2 4.3
6 Finance costs
Year to Six months to Six months to
31 March 30 September 30 September
2017 2017 2016
£m £m £m
3.3 Interest on revolving credit facilities 1.4 1.6
12.9 Interest on private placement notes 1.9 6.4
8.0 Interest on debenture stock 4.0 4.0
1.5 Interest on convertible bond 0.8 0.8
1.8 Interest on obligations under finance leases 0.9 1.0
27.5 Gross finance costs 9.0 13.8
(18.3) Less: capitalised interest at an average interest cost of 3.3% (2016: 3.9%) (4.5) (10.4)
9.2 Finance costs before finance income and fair value movements 4.5 3.4
7 Tax
Year to Six months to Six months to
31 March 30 September 30 September
2017 2017 2016
£m £m £m
Current tax
- UK corporation tax - current period - -
(0.1) UK corporation tax - prior periods - -
(0.1) Total current tax - -
(0.7) Deferred tax (2.5) 0.1
(0.8) Tax (credit)/charge for the period (2.5) 0.1
The difference between the standard rate of tax and the effective rate of tax
arises from the items set out below:
Year to Six months to Six months to
31 March 30 September 30 September
2017 2017 2016
£m £m £m
(140.2) Profit/(loss) before tax 22.8 (62.7)
(28.0) Tax charge/(credit) on profit/(loss) at standard rate of 19% (2016: 20%) 4.3 (12.5)
32.8 Changes in the fair value of properties, not subject to tax (5.7) 25.3
(2.9) Changes in the fair value of financial instruments, not subject to tax 4.2 (7.7)
(4.0) REIT tax-exempt rental income and gains (5.2) (5.6)
(0.1) Prior periods' corporation tax - -
1.4 Other (0.1) 0.6
(0.8) Tax (credit)/charge for the period (2.5) 0.1
The Group's deferred tax assets and liabilities have been calculated using tax
rates that have been enacted or substantively enacted at the balance sheet
date and are expected to apply when the liability is settled or the asset is
realised.
During the period £nil (2016: £nil) of deferred tax was credited directly to
equity. The Group's net deferred tax at 30 September 2017 was an asset of
£4.5 million (2016: £1.2 million). This consists of a deferred tax liability
of £2.8 million (2016: £nil) and deferred tax assets of £7.3 million (2016:
£1.2 million).
Movement in deferred tax:
At1 April 2017 Recognised in the income statement At 30September 2017
£m £m £m
Deferred tax liability in respect of £150 million 1.00% convertible bonds 2018 (2.8) - (2.8)
Deferred tax asset in respect of revenue losses 4.0 2.6 6.6
Deferred tax asset in respect of other temporary differences 0.8 (0.1) 0.7
Net deferred tax asset 2.0 2.5 4.5
A further deferred tax asset of £2.8 million, mainly relating to revenue
losses, the pension liability and contingent share awards was not recognised
because it is uncertain whether future taxable profits will arise against
which this asset can be utilised.
As a REIT, the Group is largely exempt from corporation tax in respect of its
rental profits and chargeable gains relating to its property rental business.
The Group is otherwise subject to corporation tax. In particular, the Group's
REIT exemption does not extend to either profits arising from the sale of
investment properties in respect of which a major redevelopment has completed
within the preceding three years or profits arising from trading properties
(including the sale of the residential units at Rathbone Square, W1).
In order to ensure that the Group is able to both retain its status as a REIT
and to avoid financial charges being imposed, a number of tests (including a
minimum distribution test) must be met by both Great Portland Estates plc and
by the Group as a whole on an ongoing basis. These conditions are detailed in
the Corporation Tax Act 2010.
8 Performance measures and EPRA metrics
Adjusted earnings and net assets per share are calculated in accordance with
the Best Practice Recommendations issued by the European Public Real Estate
Association (EPRA). The recommendations are designed to make the financial
statements of public real estate companies clearer and more comparable across
Europe enhancing the transparency and coherence of the sector. The directors
consider these standard metrics to be the most appropriate method of reporting
the value and performance of the business.
Weighted average number of ordinary shares
Year to Six months to Six months to
31 March 30 September 30 September
2017 2017 2016
No. of shares No. of shares No. of shares
343,926,149 Issued ordinary share capital at 1 April 343,926,149 343,926,149
- Share consolidation (12,755,495) -
(1,933,616) Investment in own shares (1,538,561) (2,073,445)
341,992,533 Weighted average number of ordinary shares - basic 329,632,093 341,852,704
Basic and diluted earnings per share
Year to 31 March Six months to 30 September Six months to 30 September Six months to 30 September Six months to 30 September Six months to 30 September Six months to 30 September
2017 2017 2017 2017 2016 2016 2016
Loss Profit after tax No. of Earnings Loss after No. of Loss
per share £m shares per share tax shares per share
pence million pence £m million pence
(40.8) Basic 25.3 329.6 7.7 (62.8) 341.9 (18.4)
- Dilutive effect of LTIP shares - - - - 0.6 -
- Dilutive effect of convertible bond (5.4) 20.7 (2.0) (9.5) 21.0 (1.5)
(40.8) Diluted 19.9 350.3 5.7 (72.3) 363.5 (19.9)
EPRA Earnings per share
Year to 31 March Six months to 30 September Six months to 30 September Six months to 30 September Six months to 30 September Six months to 30 September Six months to 30 September
2017 2017 2017 2017 2016 2016 2016
(Loss)/earnings Profit/(loss) after tax No. of Earnings/(loss) (Loss)/profit after tax No. of (Loss)/earnings
per share £m shares per share £m shares per share
pence million pence million pence
(40.8) Basic 25.3 329.6 7.7 (62.8) 341.9 (18.4)
40.1 (Surplus)/deficit from investment property (16.9) - (5.1) 90.3 - 26.4
17.4 (Surplus)/deficit from joint venture investment property (9.7) - (2.9) 38.3 - 11.2
15.1 Premium paid on cancellation of private placement notes 36.6 - 11.1 - - -
(11.4) Movement in fair value of derivatives 5.4 - 1.6 (28.4) - (8.3)
(3.0) Movement in fair value of convertible bond (6.2) - (1.9) (10.3) - (3.0)
- Movement in fair value of derivatives in joint ventures (0.5) - (0.1) 0.8 - 0.3
0.1 Trading property - costs of sale 0.1 - - 0.3 - 0.1
(0.2) Deferred taxation (2.5) - (0.8) 0.1 - -
17.3 Basic EPRA earnings 31.6 329.6 9.6 28.3 341.9 8.3
- Dilutive effect of LTIP shares - - - - 0.6 -
- Dilutive effect of convertible bond - - - - - -
17.3 Diluted EPRA earnings 31.6 329.6 9.6 28.3 342.5 8.3
8 Performance measures and EPRA metrics (continued)
EPRA Net assets per share
31 March 30 September 30 September 30 September 30 September 30 September 30 September
2017 2017 2017 2017 2016 2016 2016
Net assets Net assets No. of Net assets Net assets No. of Net assets
per share £m shares per share £m shares per share
pence million pence million pence
796 Basic 2,634.8 326.7 806 2,826.8 343.9 822
4 Investment in own shares - (1.4) 4 - (1.8) 4
- Dilutive effect of convertible bond - - - - - -
(1) Dilutive effect of LTIP shares - 0.2 (1) - 0.7 (1)
799 Diluted net assets 2,634.8 325.5 809 2,826.8 342.8 825
5 Surplus on revaluation of trading property 12.8 - 4 2.0 - -
3 Fair value of convertible bond 3.2 - 1 9.2 - 3
(8) Fair value of derivatives - - - (52.7) - (16)
- Fair value of derivatives in joint ventures 0.8 - - 2.1 - 1
- Deferred tax (4.5) - (1) (1.2) - -
799 EPRA NAV 2,647.1 325.5 813 2,786.2 342.8 813
(21) Fair value of financial liabilities (27.5) - (8) (111.8) - (32)
(3) Fair value of convertible bond (3.2) - (1) (9.2) - (3)
(1) Fair value of financial liabilities in joint ventures (1.4) - - (2.9) - (1)
8 Fair value of derivatives - - - 52.7 - 16
- Fair value of derivatives in joint ventures (0.8) - - (2.1) - (1)
(1) Tax arising on sale of trading properties (2.4) - (1) (0.4) - -
1 Deferred tax 4.5 - 1 1.2 - -
782 EPRA NNNAV 2,616.3 325.5 804 2,713.7 342.8 792
The Group has £150.0 million of convertible bonds in issue with an initial
conversion price of £7.27 per share. The dilutive effect of the contingently
issuable shares within the convertible bond is required to be recognised in
accordance with IAS 33 - Earnings per Share. In accordance with the EPRA Best
Practice Recommendations, we have presented EPRA earnings per share on a basic
and diluted basis.
Total Accounting return
31 March 30 September 30 September
2017 2017 2016
per sharepence per share pence per share pence
847.0 Opening EPRA NAV (A) 799.0 847.0
799.0 Closing EPRA NAV 813.0 813.0
(48.0) Increase/(decrease) in EPRA NAV 14.0 (34.0)
9.3 Ordinary dividend paid in period 6.4 5.6
(38.7) Total return (B) 20.4 (28.4)
(4.6)% Total return % (B/A) 2.6% (3.3)%
8 Performance measures and EPRA metrics (continued)
Loan-to-property value
31 March 30 September 30 September
2017 2017 2016
£m £m £m
143.9 £142.9 million 5.625% debenture stock 2029 143.9 143.9
107.0 £450 million revolving credit facility 60.4 166.8
127.4 Private placement notes 174.1 286.8
150.0 £150.0 million 1.00% convertible bonds 2018 (at nominal value) 150.0 150.0
(25.5) Less: cash and cash equivalents (13.8) (9.0)
502.8 Net debt excluding joint ventures 514.6 738.5
84.6 Joint venture interest bearing loans and borrowings (at share) 84.6 84.5
(10.6) Joint venture cash and cash equivalents (at share) (12.2) (10.4)
576.8 Net debt including joint ventures (A) 587.0 812.6
2,580.0 Group properties at market value 2,682.9 3,155.5
565.5 Joint venture properties at market value 594.9 595.0
3,145.5 Property portfolio at market value including joint ventures (B) 3,277.8 3,750.5
18.3% Loan-to-property value (A/B) 17.9% 21.7%
9 Investment property
Investment property
Freehold Leasehold Total
£m £m £m
Book value at 1 April 2017 1,222.9 1,041.1 2,264.0
Acquisitions 53.7 - 53.7
Costs capitalised 9.3 13.5 22.8
Disposals (8.7) - (8.7)
Net valuation (deficit)/surplus (2.0) 13.3 11.3
Book value at 30 September 2017 1,275.2 1,067.9 2,343.1
Investment property under development
Freehold Leasehold Total
£m £m £m
Book value at 1 April 2017 87.9 - 87.9
Costs capitalised 7.9 - 7.9
Interest capitalised 0.6 - 0.6
Net valuation surplus 9.1 - 9.1
Book value at 30 September 2017 105.5 - 105.5
Book value of total investment property at 30 September 2017 1,380.7 1,067.9 2,448.6
Surplus/(deficit) from investment property
Year to 31 March Six months to 30 September Six months to 30 September
2017£m 2017 2016
£m £m
(111.4) Net valuation surplus/(deficit) on investment property 20.4 (91.2)
(25.5) (Loss)/profit on sale of investment properties (3.5) 0.9
(136.9) Surplus/(deficit) from investment property 16.9 (90.3)
9 Investment property (continued)
The Group's investment properties, including those held in joint ventures
(note 11), were valued on the basis of Fair Value by CBRE Limited (CBRE),
external valuers, as at 30 September 2017. The valuations have been prepared
in accordance with the RICS Valuation - Global Standards 2017 which
incorporate the International Valuation Standards and the RICS Valuation -
Professional Standards UK January 2014 (revised April 2015) ("the Red Book")
and have been primarily derived using comparable recent market transactions on
arm's length terms. CBRE have advised us that the total fees paid to CBRE by
the Group represent less than five per cent of their total revenue in any
year.
Real estate valuations are complex and derived using comparable market
transactions, which are not publicly available and involve an element of
judgement. Therefore, in line with EPRA guidance, we have classified the
valuation of the property portfolio as Level 3 as defined by IFRS 13. There
were no transfers between levels during the period. Inputs to the valuation,
including capitalisation yields (typically the true equivalent yield) and
rental values, are defined as 'unobservable' as defined by IFRS 13.
Key inputs to the valuation (by building)
ERV True equivalent yield
Average Range Average Range
£ per sq ft £ per sq ft % %
North of Oxford Street Office 70 47 - 86 4.5 3.9 - 6.2
Retail 68 34 - 181 3.7 2.9 - 5.9
Rest of West End Office 80 61 - 93 4.5 3.7 - 6.0
Retail 108 15 - 295 4.0 2.8 - 5.7
City, Midtown and Southwark Office 50 45 - 60 5.1 4.6 - 5.5
Retail 81 28 - 122 4.6 4.6 - 4.7
Capital value
Average Range
£ per sq ft £ per sq ft
Residential 1,926 1,575 - 2,700 n/a n/a
Everything else being equal, there is a positive relationship between rental
values and the property valuation, such that an increase in rental values will
increase the valuation of a property and a decrease in rental values will
reduce the valuation of a property. However, the relationship between
capitalisation yields and the property valuation is negative; therefore, an
increase in capitalisation yields will reduce the valuation of a property and
a reduction will increase its valuation. There are interrelationships between
these inputs as they are determined by market conditions and the valuation
movement in any one period depends on the balance between them. If these
inputs move in opposite directions (i.e. rental values increase and yields
decrease) valuation movements can be amplified whereas if they move in the
same direction they may offset reducing the overall net valuation movement.
The book value of investment properties includes £40.7 million (2016: £35.9
million) in respect of the present value of future ground rents. Net of these
amounts, the market value of the investment properties together with the
market value of the trading properties was £2,682.9 million. During the
period, the Group capitalised £0.4 million (2016: £1.1 million) of employee
costs in respect of its development team into trading properties and
investment properties under development. At 30 September 2017, the Group had
capital commitments of £9.9 million (2016: £136.1 million).
10 Trading property
31 March 30 September 30 September
2017£m 2017£m 2016£m
172.4 At beginning of the period 246.7 172.4
66.0 Costs capitalised 11.6 54.1
8.3 Interest capitalised 3.9 5.6
246.7 At the end of the period 262.2 232.1
The Group is developing a large mixed-use scheme at Rathbone Square, W1. Part
of the approved scheme consists of residential units, which the Group holds
for sale. As a result, the residential element of the scheme is held as
trading property. The fair value of the trading property was £275.0 million at
30 September 2017, representing a revaluation above cost of £12.8 million.
At 30 September 2017, the Group had exchanged contracts to sell £262.1 million
of the residential units and received initial cash deposits of £66.5 million
from the purchasers (see note 14).
11 Investment in joint ventures
Equity Balances with partners £m Total
£m £m
At 1 April 2017 250.6 230.2 480.8
Movement on joint venture balances - 20.3 20.3
Additions 4.1 - 4.1
Share of profit of joint ventures 1.5 - 1.5
Share of revaluation surplus of joint ventures 9.6 - 9.6
Profit on sale of investment property 0.1 - 0.1
Share of results of joint ventures 11.2 - 11.2
Distributions (8.4) - (8.4)
At 30 September 2017 257.5 250.5 508.0
The investments in joint ventures comprise the following:
Ownership31 March Country of Incorporation/registration Ownership30 September Ownership30 September
2017 2017 2016
50% The GHS Limited Partnership Jersey 50% 50%
50% The Great Capital Partnership (dormant) United Kingdom 50% 50%
50% The Great Ropemaker Partnership United Kingdom 50% 50%
50% The Great Victoria Partnerships United Kingdom 50% 50%
50% The Great Wigmore Partnership United Kingdom 50% 50%
11 Investment in joint ventures (continued)
Summarised balance sheets
31 March The GHS Limited Partnership £m The Great Capital Partnership £m The Great The Great The Great 30 September 30 September 30 September
2017 Ropemaker Victoria Wigmore 2017 2017 2016
At share Partnership£m Partnerships£m Partnership£m Total At share At share
£m £m £m £m
570.7 Investment property 238.1 - 730.7 231.3 - 1,200.1 600.1 600.1
0.9 Current assets 0.1 - 0.6 0.5 - 1.2 0.6 0.8
10.6 Cash and cash equivalents 3.1 0.1 17.4 3.5 0.2 24.3 12.2 10.4
(230.2) Balances (from)/to partners (94.8) - (417.1) 10.9 - (501.0) (250.5) (210.0)
(84.6) Interest bearing loans and borrowings - - (89.6) (79.6) - (169.2) (84.6) (84.5)
(1.3) Derivatives - - (1.5) - - (1.5) (0.8) (2.1)
(10.3) Current liabilities (7.8) - (16.0) (4.5) (0.2) (28.5) (14.3) (9.0)
(5.2) Finance leases - - (10.3) - - (10.3) (5.2) (5.1)
250.6 Net assets 138.7 0.1 214.2 162.1 - 515.1 257.5 300.6
Summarised income statements
31 March The GHS Limited Partnership £m The Great Capital Partnership£m The Great The Great The Great 30 September 30 September 30 September
2017 Ropemaker Victoria Wigmore 2017 2017 2016
At share Partnership£m Partnerships£m Partnership£m Total At share At share
£m £m £m £m
17.4 Net rental income - - 11.5 5.7 - 17.2 8.6 8.9
(4.1) Property and administration costs (0.7) - (2.4) (0.4) (0.1) (3.6) (1.8) (2.5)
(10.8) Net finance costs (2.3) - (7.8) (1.5) - (11.6) (5.8) (5.2)
(0.1) Movement in fair value of derivatives - - 1.0 - - 1.0 0.5 (0.8)
2.4 Share of profit of joint ventures (3.0) - 2.3 3.8 (0.1) 3.0 1.5 0.4
(55.6) Revaluation of investment property (0.9) - 17.4 2.8 - 19.3 9.6 (38.4)
(4.0) Profit/(loss) on sale of investment property - - - - 0.2 0.2 0.1 0.1
(57.2) Share of results of joint ventures (3.9) - 19.7 6.6 0.1 22.5 11.2 (37.9)
11 Investment in joint ventures (continued)
The non-recourse loans of the joint ventures at 30 September 2017 are set out
below:
Joint venture debt facilities Nominal value Maturity Fixed/Floating Interest rate
£m
The Great Ropemaker Partnership 90.0 December 2020 Floating LIBOR +1.25%
The Great Victoria Partnership 80.0 July 2022 Fixed 3.74%
Total 170.0
The Great Ropemaker Partnership has entered into two interest rate swaps with
a fixed rate of 1.42%, which expire conterminously with the bank loan in 2020,
with a notional principal amount of £90.0 million. The loan has an all-in
hedged coupon of 2.67%.
At 30 September 2017, the Great Victoria Partnership loan had a fair value of
£83.3 million (2016: £85.7 million). All interest-bearing loans are in
sterling. At 30 September 2017, the joint ventures had £nil undrawn facilities
(2016: £nil).
The investment properties include £5.2 million (2016: £5.1 million) in respect
of the present value of future ground rents, net of these amounts the market
value of our share of the total joint venture properties is £594.9 million. At
30 September 2017, the Group's share of joint venture capital commitments was
£37.4 million (2016: £62.3 million).
Transactions during the period between the Group and its joint ventures, who
are related parties, are set out below:
31 March 30 September 30 September
2017 2017 2016
£m £m £m
(42.6) Movement on joint venture balances during the period (20.3) (22.4)
(230.2) Balances receivable at the period end from joint ventures (250.5) (210.0)
56.2 Distributions 8.4 23.6
4.1 Fee income 1.1 1.6
The joint venture balances bear interest as follows: the GHS Limited
Partnership at 5.3% on balances at inception and 4.0% on any subsequent
balances, the Great Ropemaker Partnership at 4.0% and the Great Wigmore
Partnership at 4.0%.
The Group earns fee income from its joint ventures for the provision of
management services. All of the above transactions are made on terms
equivalent to those that prevail in arm's length transactions.
12 Plant and equipment
Leasehold Fixtures and Total
improvements fittings £m
£m £m
Cost or valuation
At 1 April 2017 5.2 1.0 6.2
Additions 0.1 0.1 0.2
At 30 September 2017 5.3 1.1 6.4
Depreciation
At 1 April 2017 0.7 0.4 1.1
Charge for the period 0.3 0.1 0.4
At 30 September 2017 1.0 0.5 1.5
Carrying amount at 30 September 2017 4.3 0.6 4.9
13 Trade and other receivables
31 March 30 September 30 September
2017 2017 2016
£m £m £m
4.0 Trade receivables 3.9 3.9
(0.1) Allowance for doubtful debts (0.2) (0.4)
3.9 3.7 3.5
0.7 Prepayments and accrued income 1.0 1.4
14.7 Work in progress on development management contracts 20.9 1.0
3.2 Other trade receivables 3.7 3.2
300.8 Deferred consideration on property sales 61.7
- More to follow, for following part double click ID:nRSO5097WcRecent news on Great Portland Estates
See all newsREG - Great Portland Ests. - Holding(s) in Company
AnnouncementREG - Great Portland Ests. - Director/PDMR Shareholding
AnnouncementREG - Great Portland Ests. - Holding(s) in Company
AnnouncementREG - Great Portland Ests. - Director/PDMR Shareholding
AnnouncementREG - Great Portland Ests. - Delivering our growth strategy
Announcement