- Part 5: For the preceding part double click ID:nRSO1493Pd
to the Combined Portfolio value of £14.4bn.
Table 16: Combined Portfolio performance relative to IPD
Total property returns - six months to 30 September 2016
Land Securities IPD (1)
% %
Retail - Shopping centres 0.2 (1.6)
- Retail parks (1.7) (1.7) (2)
Central London shops 0.5 3.8
Central London offices 0.2 (1.0)
Total 0.5 (3) 0.2
1. IPD Quarterly Universe
2. IPD Retail Warehouses Quarterly Universe
3. Includes leisure, hotel portfolio and other
Table 17: Combined Portfolio analysis
Like-for-like segmental analysis
Market value(1) Valuation Rental income(3) Annualised rental income(4) Annualised netrent(5) Net estimated rental value(6)
movement(2)
30 September 2016 31 March 2016 Surplus/ (deficit) Surplus/ (deficit) 30 September 2016 30 September 2015 30 September 2016 30 September 2016 31 March 2016 30 September 2016 31 March 2016
£m £m £m % £m £m £m £m £m £m £m
Retail Portfolio
Shopping centres and shops 3,621.1 3,680.2 (81.3) (2.2%) 96.3 96.0 185.6 182.0 180.7 193.1 189.8
Retail parks 851.9 886.4 (36.9) (4.2%) 25.9 27.0 52.3 50.6 49.8 50.8 51.0
Leisure and hotels 1,518.3 1,510.9 3.7 0.2% 49.1 46.4 92.4 90.5 90.4 92.3 92.2
Other 19.8 20.2 (0.3) (1.5%) 0.9 0.7 1.4 1.5 1.7 2.3 2.3
Total Retail Portfolio 6,011.1 6,097.7 (114.8) (1.9%) 172.2 170.1 331.7 324.6 322.6 338.5 335.3
London Portfolio
West End 2,016.2 2,084.0 (76.8) (3.8%) 43.9 44.3 87.8 85.3 85.4 96.7 97.0
City 795.0 796.5 (16.0) (2.1%) 14.2 14.0 29.0 31.2 32.1 37.6 36.8
Mid-town 1,021.1 1,053.2 (37.4) (3.9%) 19.8 19.0 40.6 43.1 41.7 49.2 49.7
Inner London 312.9 320.1 (12.2) (7.1%) 6.7 6.8 13.6 10.0 8.9 16.5 16.5
Total London offices 4,145.2 4,253.8 (142.4) (3.6%) 84.6 84.1 171.0 169.6 168.1 200.0 200.0
Central London shops 1,175.3 1,181.0 (5.1) (0.4%) 23.3 21.0 47.1 47.2 44.9 55.9 55.1
Other 42.5 44.9 (2.3) (5.1%) 0.8 1.0 0.4 0.4 0.5 0.6 0.6
Total London Portfolio 5,363.0 5,479.7 (149.8) (2.9%) 108.7 106.1 218.5 217.2 213.5 256.5 255.7
Like-for-like portfolio (10) 11,374.1 11,577.4 (264.6) (2.4%) 280.9 276.2 550.2 541.8 536.1 595.0 591.0
Proposed developments (3) 5.1 3.5 (2.7) (34.8%) - - - - - - -
Development programme (11) 1,415.2 1,284.6 30.9 2.3% 9.5 2.1 37.8 0.3 (0.3) 78.4 80.0
Completed developments (3) 1,493.2 1,499.0 (23.9) (1.7%) 27.1 21.4 55.5 20.5 16.2 67.2 67.5
Acquisitions (12) 93.6 89.8 0.7 0.8% 1.8 0.6 3.8 3.8 3.6 4.0 3.4
Sales (13) - 16.2 - - 0.1 28.7 - - 0.4 - 0.4
Combined Portfolio 14,381.2 14,470.5 (259.6) (1.8%) 319.4 329.0 647.3 566.4 556.0 744.6 742.3
Properties treated as finance leases (5.0) (5.2)
Combined Portfolio 14,381.2 14,470.5 (259.6) (1.8%) 314.4 323.8
Total portfolio analysis
Market value(1) Valuation Rental income(3) Annualised rental income(4) Annualised netrent(5) Net estimated rental value(6)
movement(2)
30 September 2016 31 March 2016 Surplus/ (deficit) Surplus/ (deficit) 30 September 2016 30 September 2015 30 September 2016 30 September 2016 31 March 2016 30 September 2016 31 March 2016
£m £m £m £m £m £m £m £m £m £m £m
Retail Portfolio
Shopping centres and shops 3,773.3 3,790.3 (80.4) (2.1%) 96.5 96.7 186.4 181.7 180.2 208.1 204.5
Retail parks 857.0 889.9 (39.6) (4.5%) 25.9 37.8 52.3 50.6 49.8 50.8 51.0
Leisure and hotels 1,541.6 1,541.5 3.7 0.2% 49.7 47.2 93.6 91.8 91.7 93.6 93.1
Other 19.8 20.2 (0.3) (1.7%) 0.9 0.9 1.4 1.5 1.7 2.3 2.3
Total Retail Portfolio 6,191.7 6,241.9 (116.6) (1.9%) 173.0 182.6 333.7 325.6 323.4 354.8 350.9
London Portfolio
West End 3,262.5 3,262.2 (49.8) (1.6%) 59.3 53.0 124.0 98.6 97.1 156.6 157.1
City 1,816.6 1,814.0 (28.5) (1.6%) 32.6 32.6 66.9 36.3 35.6 83.2 82.6
Mid-town 1,336.9 1,325.0 (41.7) (3.3%) 20.7 20.7 55.2 42.8 41.5 66.6 67.2
Inner London 312.9 320.0 (12.2) (7.1%) 6.7 15.0 13.6 10.0 8.9 16.5 16.5
Total London offices 6,728.9 6,721.2 (132.2) (2.1%) 119.3 121.3 259.7 187.7 183.1 322.9 323.4
Central London shops 1,418.1 1,461.4 (8.5) (0.6%) 26.2 24.0 53.4 52.6 48.9 66.2 67.2
Other 42.5 46.0 (2.3) (5.2%) 0.9 1.1 0.5 0.5 0.6 0.7 0.8
Total London Portfolio 8,189.5 8,228.6 (143.0) (1.8%) 146.4 146.4 313.6 240.8 232.6 389.8 391.4
Combined Portfolio 14,381.2 14,470.5 (259.6) (1.8%) 319.4 329.0 647.3 566.4 556.0 744.6 742.3
Properties treated as finance leases (5.0) (5.2)
Combined Portfolio 14,381.2 14,470.5 (259.6) (1.8%) 314.4 323.8
Represented by:
Investment portfolio 12,645.9 12,799.4 (277.4) (2.2%) 289.6 299.2 594.5 534.6 526.5 653.1 650.1
Share of joint ventures 1,735.3 1,671.1 17.8 1.1% 24.8 24.6 52.8 31.8 29.5 91.5 92.2
Combined Portfolio 14,381.2 14,470.5 (259.6) (1.8%) 314.4 323.8 647.3 566.4 556.0 744.6 742.3
Table 17: Combined Portfolio analysis continued
Like-for-like segmental analysis
Gross estimated Net initial yield(8) Equivalent yield(9) Voids (by ERV)(3)
rental value(7)
30 September 2016 31 March 2016 30 September 2016 31 March 2016 30 September 2016 31 March 2016 30 September 2016 31 March 2016
£m £m % % % % % %
Retail Portfolio
Shopping centres and shops 200.6 197.4 4.4% 4.4% 4.8% 4.7% 3.0% 2.9%
Retail parks 51.5 51.6 5.4% 5.1% 5.6% 5.4% 0.2% -
Leisure and hotels 92.4 92.3 5.4% 5.4% 5.5% 5.5% 0.6% 0.7%
Other 2.3 2.3 3.9% 6.3% 8.4% 8.2% 30.4% 21.7%
Total Retail Portfolio 346.8 343.6 4.8% 4.7% 5.1% 5.0% 2.1% 2.0%
London Portfolio
West End 96.7 97.0 3.9% 3.8% 4.6% 4.5% 6.6% 4.6%
City 38.9 38.1 3.7% 3.7% 4.7% 4.5% 2.1% -
Mid-town 50.4 50.9 4.0% 3.8% 4.5% 4.4% - 0.4%
Inner London 16.5 16.5 3.1% 2.6% 5.0% 4.9% - -
Total London offices 202.5 202.5 3.9% 3.7% 4.6% 4.5% 3.6% 2.3%
Central London shops 56.4 55.5 3.5% 3.5% 4.1% 4.0% 4.6% 4.9%
Other 0.6 0.6 0.9% 1.1% 1.3% 1.5% 33.3% 16.7%
Total London Portfolio 259.5 258.6 3.8% 3.6% 4.5% 4.4% 3.9% 2.9%
Like-for-like portfolio (10) 606.3 602.2 4.3% 4.2% 4.8% 4.7% 2.9% 2.4%
Proposed developments (3) - - - - n/a n/a n/a n/a
Development programme (11) 80.0 81.5 0.0% 0.0% 4.1% 4.0% n/a n/a
Completed developments (3) 67.3 67.5 1.3% 1.0% 4.1% 4.0% n/a n/a
Acquisitions (12) 4.0 3.4 3.7% 3.6% 3.8% n/a n/a n/a
Sales (13) - 0.4 - 2.3% n/a n/a n/a n/a
Combined Portfolio 757.6 755.0 3.6% 3.5% 4.7% n/a n/a n/a
Total portfolio analysis Notes:
Gross estimated 1. The market value figures are determined by the Group's external valuer.2. The valuation movement is stated after adjusting for the effect of SIC 15 under IFRS.3. Refer to glossary for definition.4. Annualised rental income is annual 'rental
rental value(7) Net initial yield(8) 30 September 2016 31 March 2016 30 September 2016 31 March 2016 £m £m % % Retail Portfolio Shopping centres and shops 216.8 213.3 4.2% 4.2% Retail parks 51.5 51.6 5.3% 5.1% Leisure and hotels 93.7 93.3 5.4% 5.3% Other 2.3 2.3 3.9% 6.3% Total Retail Portfolio 364.3 360.5 4.7% 4.6% London Portfolio West End 156.6 157.1 2.8% 2.8% City 84.6 83.9 1.9% 1.7% Mid-town 68.1 68.6 3.0% 3.0% Inner London 16.5 16.5 3.1% 2.6% Total London offices 325.8 326.1 2.6% 2.5% Central London shops 66.8 67.6 3.3% 3.1% Other 0.7 0.8 0.9% 1.2% Total London Portfolio 393.3 394.5 2.7% 2.6% Combined Portfolio 757.6 755.0 3.6% 3.5% Represented by: Investment portfolio 664.3 661.0 3.8% 3.7% Share of joint ventures 93.3 94.0 1.7% 1.7% Combined Portfolio 757.6 755.0 3.6% 3.5% income' (as defined in the glossary) at the balance sheet date, except that car park and commercialisation income are included on a net basis (after deduction for operational outgoings). Annualised rental income includes temporary lettings.5. Annualised
net rent is annual cash rent, after the deduction of ground rents, as at the balance sheet date. It is calculated with the same methodology as annualised rental income but is stated net of ground rent and before SIC15 adjustments.6. Net estimated rental
value is gross estimated rental value, as defined in the glossary, after deducting expected ground rents.7. Gross estimated rental value (ERV) - refer to glossary for definition. The figure for proposed developments relates to the existing buildings and
not the schemes proposed.8. Net initial yield - refer to glossary for definition. This calculation includes all properties including those sites with no income.9. Equivalent yield - refer to glossary for definition. Proposed developments are excluded
from the calculation of equivalent yield on the Combined Portfolio.10. The like-for-like portfolio - refer to glossary for definition. Capital expenditure on refurbishments, acquisitions of head leases and similar capital expenditure has been allocated to
the like-for-like portfolio in preparing this table.11. The development programme - refer to glossary for definition. Net initial yield figures are only calculated for properties in the development programme that have reached practical completion.12.
Includes all properties acquired since 1 April 2015.13. Includes all properties sold since 1 April 2015.
Gross estimated
rental value(7)
Net initial yield(8)
30 September 2016
31 March 2016
30 September 2016
31 March 2016
£m
£m
%
%
Retail Portfolio
Shopping centres and shops
216.8
213.3
4.2%
4.2%
Retail parks
51.5
51.6
5.3%
5.1%
Leisure and hotels
93.7
93.3
5.4%
5.3%
Other
2.3
2.3
3.9%
6.3%
Total Retail Portfolio
364.3
360.5
4.7%
4.6%
London Portfolio
West End
156.6
157.1
2.8%
2.8%
City
84.6
83.9
1.9%
1.7%
Mid-town
68.1
68.6
3.0%
3.0%
Inner London
16.5
16.5
3.1%
2.6%
Total London offices
325.8
326.1
2.6%
2.5%
Central London shops
66.8
67.6
3.3%
3.1%
Other
0.7
0.8
0.9%
1.2%
Total London Portfolio
393.3
394.5
2.7%
2.6%
Combined Portfolio
757.6
755.0
3.6%
3.5%
Represented by:
Investment portfolio
664.3
661.0
3.8%
3.7%
Share of joint ventures
93.3
94.0
1.7%
1.7%
Combined Portfolio
757.6
755.0
3.6%
3.5%
1. The market value figures are determined by the Group's external valuer.2. The valuation movement is stated after
adjusting for the effect of SIC 15 under IFRS.3. Refer to glossary for definition.4. Annualised rental income is annual
'rental income' (as defined in the glossary) at the balance sheet date, except that car park and commercialisation income
are included on a net basis (after deduction for operational outgoings). Annualised rental income includes temporary
lettings.5. Annualised net rent is annual cash rent, after the deduction of ground rents, as at the balance sheet date.
It is calculated with the same methodology as annualised rental income but is stated net of ground rent and before SIC15
adjustments.6. Net estimated rental value is gross estimated rental value, as defined in the glossary, after deducting
expected ground rents.7. Gross estimated rental value (ERV) - refer to glossary for definition. The figure for proposed
developments relates to the existing buildings and not the schemes proposed.8. Net initial yield - refer to glossary for
definition. This calculation includes all properties including those sites with no income.9. Equivalent yield - refer to
glossary for definition. Proposed developments are excluded from the calculation of equivalent yield on the Combined
Portfolio.10. The like-for-like portfolio - refer to glossary for definition. Capital expenditure on refurbishments,
acquisitions of head leases and similar capital expenditure has been allocated to the like-for-like portfolio in preparing
this table.11. The development programme - refer to glossary for definition. Net initial yield figures are only calculated
for properties in the development programme that have reached practical completion.12. Includes all properties acquired
since 1 April 2015.13. Includes all properties sold since 1 April 2015.
Table 18: Lease lengths
Weighted average unexpired lease term at 30 September 2016
Like-for-like portfolio Like-for-like portfolio, completed developments and acquisitions
Mean(1) Mean(1)
Years Years
Retail Portfolio
Shopping centres and shops 6.6 6.6
Retail parks 8.0 8.0
Leisure and hotels 12.4 12.5
Other 2.2 2.2
Total Retail Portfolio 8.5 8.5
London Portfolio
West End 8.4 8.4
City 6.0 11.4
Mid-town 9.8 9.8
Inner London 16.3 16.3
Total London offices 8.9 10.1
Central London shops 5.1 5.6
Other 7.2 7.2
Total London Portfolio 8.2 9.3
Combined Portfolio 8.3 8.9
1. Mean is the rent weighted average of the unexpired lease term across all leases (excluding short-term leases). Term
is defined as the earlier of tenant break or expiry.
Table 19: Development pipeline financial summary
Cumulative movements on the development programme to 30 September 2016 Total scheme details(1)
Market value at start of scheme Capital expenditure incurred to date Capitalised interest to date Valuation surplus/(deficit) Disposals, SIC15 rent Market value at 30 September 2016 Estimated total capital expenditure(3) Estimated total capitalised interest Estimated total development cost(4) Net Income/ ERV(5) Valuation (deficit)/surplus for the six months ended 30 September 2016(2)
to date(2) and other adjustments
£m £m £m £m £m £m £m £m £m £m £m
Developments let and transferred or sold
Shopping centres and shops - - - - - - - - - - -
Retail parks - - - - - - - - - - -
London Portfolio 101.9 153.8 8.0 265.4 (11.9) 517.2 153.8 8.0 263.7 25.2 (4.6)
101.9 153.8 8.0 265.4 (11.9) 517.2 153.8 8.0 263.7 25.2 (4.6)
Developments after practical completion, approved or in progress
Shopping centres and shops 30.0 78.9 5.4 22.1 2.2 138.6 181.2 10.9 222.1 14.0 0.2
Retail parks - - - - - - - - - - -
London Portfolio 243.2 501.8 49.7 571.5 (89.6) 1,276.6 408.3 51.3 702.8 61.6 30.7
273.2 580.7 55.1 593.6 (87.4) 1,415.2 589.5 62.2 924.9 75.6 30.9
Movement on proposed developments for the six months ended 30 September 2016
Proposed developments
Shopping centres and shops - - - - - - - - - - -
Retail parks 3.5 4.3 - (2.7) - 5.1 43.9 0.7 49.7 2.5 (2.7)
London Portfolio - - - - - - - - - - -
3.5 4.3 - (2.7) - 5.1 43.9 0.7 49.7 2.5 (2.7)
1. Total scheme details exclude properties sold in the period.
2. Includes profit realised on the disposal of investment properties and any surplus or deficit on investment properties
transferred to trading.
3. For proposed development properties the estimated total capital expenditure represents the outstanding costs required
to complete the scheme as at 30 September 2016.
4. Includes the property at its market value at the start of the financial year in which the property was added to the
development programme together with estimated capitalised interest. For proposed development properties, the market value
of the property at 30 September 2016 is included in the estimated total cost. Estimated total development cost includes the
cost of residential properties in the development programme (£12.2m for the Retail Portfolio). Estimated costs for proposed
schemes could still be subject to material change prior to final approval.
5. Net headline annual rent on let units plus net ERV at 30 September 2016 on unlet units.
Table 20: Reconciliation of segment reporting to statutory reporting
The table below reconciles the Group's income statement to the segment note (note 3 to the financial statements). The
Group's income statement is prepared using the equity accounting method for joint ventures and includes 100% of the results
of the Group's non-wholly owned subsidiaries. In contrast, the segment note is prepared on a proportionately consolidated
basis and excludes the non-wholly owned share of the Group's subsidiaries. This is consistent with the financial
information reviewed by management.
Six months ended 30 September 2016
Group income statement£m Joint Proportionate share of Total£m Revenue Capital and other items£m
ventures(1)£m earnings(2)£m profit£m
Rental income 290.7 24.8 (1.1) 314.4 314.4 -
Finance lease interest 5.0 - - 5.0 5.0 -
Gross rental income (before rents payable) 295.7 24.8 (1.1) 319.4 319.4 -
Rents payable (4.5) (0.5) - (5.0) (5.0) -
Gross rental income (after rents payable) 291.2 24.3 (1.1) 314.4 314.4 -
Service charge income 43.0 3.8 (0.3) 46.5 46.5 -
Service charge expense (44.3) (4.8) 0.3 (48.8) (48.8) -
Net service charge expense (1.3) (1.0) - (2.3) (2.3) -
Other property related income 13.7 0.8 - 14.5 14.5 -
Direct property expenditure (26.1) (2.5) 0.1 (28.5) (28.5) -
Net rental income 277.5 21.6 (1.0) 298.1 298.1 -
Indirect expenses (37.2) (0.8) 0.1 (37.9) (37.9) -
Other income 1.3 - - 1.3 1.3 -
241.6 20.8 (0.9) 261.5 261.5 -
Net (deficit)/surplus on revaluation of investment properties (277.4) 17.9 (0.1) (259.6) - (259.6)
Movement in impairment of trading properties 9.6 - - 9.6 - 9.6
Profit on disposal of trading properties 1.8 - - 1.8 - 1.8
Profit on disposal of investment properties 9.0 2.0 - 11.0 - 11.0
Loss on disposal of investment in joint venture (1.9) - - (1.9) - (1.9)
Amortisation of intangible asset (0.8) - - (0.8) - (0.8)
Impairment of goodwill (0.1) - - (0.1) - (0.1)
Head office relocation 1.7 - - 1.7 - 1.7
Operating (loss)/profit (16.5) 40.7 (1.0) 23.2 261.5 (238.3)
Interest income 17.5 - - 17.5 17.5 -
Interest expense (127.3) (7.8) - (135.1) (86.5) (48.6)
Revaluation of redemption liabilities (1.6) - 1.0 (0.6) - (0.6)
Share of post-tax profit from joint ventures 32.9 (32.9) - - - -
Loss before tax (95.0) - - (95.0) 192.5 (287.5)
Income tax (0.8) - - (0.8) - (0.8)
Loss for the period (95.8) - - (95.8) 192.5 (288.3)
1. Reallocation of the share of post-tax profit from joint ventures reported in the Group income statement to the
individual line items reported in the segment note.
2. Removal of the non-wholly owned share of results of the Group's subsidiaries. The non-wholly owned subsidiaries are
consolidated at 100% in the Group's income statement, but only the Group's share is included in revenue profit reported in
the segment note.
Table 21: Acquisitions and disposals
Six months ended 30 September 2016
Group (excl. joint Joint ventures£m Adjustment for proportionate share£m Combined Portfolio£m
ventures)£m
Investment properties
Net book value at the beginning of the period 12,357.7 1,629.9 (33.6) 13,954.0
Acquisitions 13.6 0.9 - 14.5
Capital expenditure 86.3 65.6 (0.1) 151.8
Capitalised interest 3.5 8.2 - 11.7
Disposals (16.1) (36.7) - (52.8)
Net movement in finance leases 14.8 - - 14.8
Valuation (deficit)/surplus (277.4) 17.9 (0.1) (259.6)
Net book value at the end of the period 12,182.4 1,685.8 (33.8) 13,834.4
Profit on disposal of investment properties 9.0 2.0 - 11.0
Trading properties
Net book value at the beginning of the period 123.4 157.1 - 280.5
Capital expenditure 14.3 13.4 - 27.7
Capitalised interest - 2.5 - 2.5
Disposals (20.3) (7.0) - (27.3)
Movement in impairment 9.6 - - 9.6
Net book value at the end of the period 127.0 166.0 - 293.0
Profit on disposal of trading properties 1.8 - - 1.8
Investment in joint ventures
Loss on disposal of investment in joint venture (1.9) - - (1.9)
Acquisitions, development and refurbishment expenditure £m
Acquisitions of investment property 14.5
Capital expenditure - investment property 151.8
Capital expenditure - trading property 27.7
Acquisitions, development and refurbishment expenditure 194.0
Disposals £m
Net book value - investment property disposals 52.8
Net book value - trading property disposals 27.3
Profit on disposal - investment property 11.0
Profit on disposal - trading property 1.8
Loss on disposal - investment in joint venture (1.9)
Other (0.1)
Total disposal proceeds 90.9
Investor information
1. Company website:
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