REG - Land Sec. Group PLC - Half-yearly results <Origin Href="QuoteRef">LAND.L</Origin> - Part 2
14/11/2017 07:06
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and thus leasing activity has slowed. Despite this, the catering and leisure elements within all our destinations
remain virtually fully let, and we recently completed a transaction with Cine UK in which they committed to upgrade and
refurbish their cinemas and increased their lease lengths to 25 years at four of our centres.
We are delivering a number of innovations across our portfolio to add to the customer and consumer experience. Initiatives
include introducing 'smart' parking to our centre car parks, installing more energy efficient LED lighting systems, and
digital innovations such as Bluewater's new online shopping portal are underway throughout our portfolio. At White Rose,
Leeds, we completed the installation of the biggest solar photovoltaic (PV) system at a retail site in the UK, and the
3,000 rooftop panels will supply 39% of the daytime electricity used in the centre's common parts, enhancing White Rose's
sustainability credentials and reducing occupational costs.
Our voids remain low and have decreased slightly to 2.6%. These voids are mainly within our shopping centres, as our retail
parks, hotels and leisure destinations remain almost fully let.
Sell
There were no major disposals during the period.
Net rental income
Table 14: Net rental income(1)
30 September 2017 30 September 2016 Change
£m £m £m
Like-for-like investment properties 146 147 (1)
Proposed developments - - -
Development programme - - -
Completed developments - - -
Acquisitions since 1 April 2016 9 - 9
Sales since 1 April 2016 - 7 (7)
Non-property related income 4 5 (1)
Net rental income 159 159 -
1. On a proportionate basis.
Net rental income at £159m is in line with the comparative period. The acquisition of three outlet centres has resulted in
a £9m increase to net rental income which is largely offset by a £7m reduction from assets sold. These include our 50%
share of The Junction Centre, Clapham and three Accor hotels this period, and The Cornerhouse, Nottingham, Printworks,
Manchester and four Accor hotels all sold in the second half of last year. The £1m reduction in our like-for-like portfolio
is mainly due to lower surrender receipts and an increase in car park rates, partly offset by additional income following
the opening of the White Rose leisure extension and a reduction in bad debt provisions.
Outlook
We have continued to strengthen our portfolio: launching Westgate Oxford; enhancing and expanding space at our regionally
dominant centres; and acquiring earnings accretive assets with the potential for growth. Consumers and retailers continue
to face an uncertain outlook as rising costs put pressure on disposable incomes and retail margins. Achieving rental growth
will be challenging while these conditions continue, but we believe the best destinations will be more resilient as they
enable retailers to develop and deliver their multichannel offer and to engage with their customers.
Principal risks and uncertainties
The principal risks of the business are set out on pages 44-45 of the 2017 Annual Report alongside their potential impact
and related mitigations. These risks fall into nine categories: customers; market cyclicality; disruption; people and
skills; major health and safety incident; security threat or attack; cyber threat or attack; sustainability; and
development.
The Board has reviewed the principal risks in the context of the second half of the current financial year. The Board
believes there has been no material change to the risks outlined in the 2017 Annual Report and that the existing mitigation
actions remain appropriate to manage them.
Statement of Directors' Responsibilities
Each of the Directors, whose names and functions appear below, confirm to the best of their knowledge that the condensed
consolidated interim financial statements have been prepared in accordance with IAS 34, 'Interim Financial Reporting', as
issued by the IASB and adopted by the European Union and that the interim management report herein includes a fair review
of the information required by the Disclosure and Transparency Rules (DTR), namely:
- DTR 4.2.7 (R): an indication of important events that have occurred during the six month period ended 30 September 2017
and their impact on the condensed interim financial statements, and a description of the principal risks and uncertainties
for the remaining six months of the financial year; and
- DTR 4.2.8 (R): any related party transactions in the six month period ended 30 September 2017 that have materially
affected, and any changes in the related party transactions described in the 2017 Annual Report that could materially
affect, the financial position or performance of the enterprise during that period.
The Directors of Land Securities Group PLC as at the date of this announcement are as set out below:
Dame Alison Carnwath, Chairman*
Robert Noel, Chief Executive
Martin Greenslade, Chief Financial Officer
Edward Bonham Carter, Senior Independent Director*
Chris Bartram*
Simon Palley*
Stacey Rauch*
Cressida Hogg*
Nicholas Cadbury*
*Non-executive Directors
A list of the current Directors is maintained on the Land Securities Group PLC website at: www.landsec.com.
The Directors are responsible for the maintenance and integrity of the corporate and financial information included on the
Company's website. Legislation in the United Kingdom governing the preparation and dissemination of financial information
differs from legislation in other jurisdictions.
By order of the Board
Tim Ashby
Group General Counsel and Company Secretary
13 November 2017
Independent review report to Land Securities Group PLC
Introduction
We have been engaged by the Company to review the condensed set of financial statements in the half-yearly financial report
for the six months ended 30 September 2017 which comprises the consolidated income statement, the consolidated statement of
comprehensive income, the consolidated balance sheet, the consolidated statement of changes in equity, the consolidated
statement of cash flows and the related notes to the financial statements 1 to 17. We have read the other information
contained in the half-yearly financial report and considered whether it contains any apparent misstatements or material
inconsistencies with the information in the condensed set of financial statements.
This report is made solely to the Company in accordance with guidance contained in International Standard on Review
Engagements 2410 (UK and Ireland) "Review of Interim Financial Information Performed by the Independent Auditor of the
Entity" issued by the Auditing Practices Board. To the fullest extent permitted by law, we do not accept or assume
responsibility to anyone other than the Company, for our work, for this report, or for the conclusions we have formed.
Directors' responsibilities
The half-yearly financial report is the responsibility of, and has been approved by, the Directors. The Directors are
responsible for preparing the half-yearly financial report in accordance with the Disclosure Guidance and Transparency
Rules of the United Kingdom's Financial Conduct Authority.
As disclosed in note 1, the annual financial statements of the Group are prepared in accordance with IFRS 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.
Our responsibility
Our responsibility is to express to the Company a conclusion on the condensed set of financial statements in the
half-yearly financial report based on our review.
Scope of review
We conducted our review in accordance with International Standard on Review Engagements (UK and Ireland) 2410, "Review of
Interim Financial Information Performed by the Independent Auditor of the Entity" issued by the Auditing Practices Board
for use in the United Kingdom. A review of interim financial information consists of making enquiries, primarily of persons
responsible for financial and accounting matters, and applying analytical and other review procedures. A review is
substantially less in scope than an audit conducted in accordance with International Standards on Auditing (UK) and
consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be
identified in an audit. Accordingly, we do not express an audit opinion.
Conclusion
Based on our review, nothing has come to our attention that causes us to believe that the condensed set of financial
statements in the half-yearly financial report for the six months ended 30 September 2017 is not prepared, in all material
respects, in accordance with International Accounting Standard 34 as adopted by the European Union and the Disclosure
Guidance and Transparency Rules of the United Kingdom's Financial Conduct Authority.
Ernst & Young LLP
London
13 November 2017
Financial statements
Unaudited income statement Six months ended Six months ended30 September 2016
30 September 2017
Revenue Capital and other items Total Revenue Capital and other items Total
profit profit
Notes £m £m £m £m £m £m
Revenue 5 366 30 396 353 23 376
Costs 6 (123) (22) (145) (112) (10) (122)
243 8 251 241 13 254
Profit on disposal of investment properties - 1 1 - 9 9
Profit/(loss) on disposal of investment in joint venture - 66 66 - (2) (2)
Net deficit on revaluation of investment properties 10 - (29) (29) - (278) (278)
Operating profit/(loss) 243 46 289 241 (258) (17)
Share of post-tax profit from joint ventures 12 5 18 23 13 20 33
Finance income 7 19 5 24 18 - 18
Finance expense 7 (64) (305) (369) (79) (50) (129)
Loss before tax 203 (236) (33) 193 (288) (95)
Taxation - (1) (1) - (1) (1)
Loss attributable to shareholders 203 (237) (34) 193 (289) (96)
Earnings per share attributable to shareholders:
Basic loss per share 4 (4.3)p (12.1)p
Diluted loss per share 4 (4.3)p (12.1)p
Unaudited statement of comprehensive income Six months ended Six months ended30 September 2016
30 September 2017
Total Total
£m £m
Loss attributable to shareholders (34) (96)
Items that may be subsequently reclassified to the income statement:
Fair value gain on cash flow hedges arising during the period 19 -
Items that will not be subsequently reclassified to the income statement:
Net re-measurement loss on defined benefit pension scheme (1) (11)
Deferred tax credit on re-measurement above - 2
Other comprehensive income/(loss) attributable to shareholders 18 (9)
Total comprehensive loss attributable to shareholders (16) (105)
Unaudited balance sheet 30 September 31 March
2017 2017
Notes £m £m
Non-current assets
Investment properties 10 12,503 12,144
Intangible assets 35 36
Net investment in finance leases 164 165
Investments in joint ventures 12 1,147 1,734
Trade and other receivables 150 123
Other non-current assets 51 51
Total non-current assets 14,050 14,253
Current assets
Trading properties 11 111 122
Trade and other receivables 490 418
Monies held in restricted accounts and deposits 9 21
Cash and cash equivalents 205 30
Total current assets 815 591
Total assets 14,865 14,844
Current liabilities
Borrowings 14 (349) (404)
Trade and other payables (792) (302)
Other current liabilities (5) (7)
Total current liabilities (1,146) (713)
Non-current liabilities
Borrowings 14 (2,789) (2,545)
Trade and other payables (24) (25)
Other non-current liabilities (6) (9)
Redemption liability (37) (36)
Total non-current liabilities (2,856) (2,615)
Total liabilities (4,002) (3,328)
Net assets 10,863 11,516
Equity
Capital and reserves attributable to shareholders
Ordinary shares 80 80
Share premium 15 317 791
Capital redemption reserve 31 31
Own shares (11) (9)
Share-based payments 9 8
Retained earnings 10,437 10,615
Total equity 10,863 11,516
The financial statements on pages 21 to 42 were approved by the Board of Directors on 13 November 2017 and were signed on
its behalf by:
R M Noel M F Greenslade
Directors
Unaudited statement of changes in equity Attributable to shareholders
Ordinary shares Share premium Capital redemption reserve Own Share-based payments Retained earnings Total
shares equity
£m £m £m £m £m £m £m
At 1 April 2016 80 790 31 (14) 11 10,801 11,699
Total comprehensive loss for the financial period - - - - - (105) (105)
Transactions with shareholders:
Share-based payments - - - 8 (5) 1 4
Dividends paid to shareholders - - - - - (147) (147)
Acquisition of own shares - - - (5) - - (5)
Total transactions with shareholders - - - 3 (5) (146) (148)
At 30 September 2016 80 790 31 (11) 6 10,550 11,446
Total comprehensive income for the financial period - - - - - 208 208
Transactions with shareholders:
Share-based payments - 1 - 3 2 (1) 5
Dividends paid to shareholders - - - - - (142) (142)
Acquisition of own shares - - - (1) - - (1)
Total transactions with shareholders - 1 - 2 2 (143) (138)
At 31 March 2017 80 791 31 (9) 8 10,615 11,516
Total comprehensive loss for the financial period - - - - - (16) (16)
Transactions with shareholders:
Share-based payments - 1 - 3 1 1 6
Capital distribution - (475) - - - - (475)
Dividends paid to shareholders - - - - - (163) (163)
Acquisition of own shares - - - (5) - - (5)
Total transactions with shareholders - (474) - (2) 1 (162) (637)
At 30 September 2017 80 317 31 (11) 9 10,437 10,863
Unaudited statement of cash flows Six months ended
30 September
2017 2016
Notes £m £m
Cash flows from operating activities
Net cash generated from operations 9 159 217
Interest received 11 9
Interest paid (68) (83)
Capital expenditure on trading properties (12) (6)
Disposal of trading properties 55 50
Other operating cash flows (3) -
Net cash inflow from operating activities 142 187
Cash flows from investing activities
Investment property development expenditure - (21)
Acquisition of investment properties (331) (14)
Other investment property related expenditure (49) (39)
Disposal of investment properties 24 14
Disposal of investment in joint venture 633 4
Cash contributed to joint ventures 12 (67) (32)
Loan advances to joint ventures (72) (30)
Loan repayments by joint ventures 12 - 7
Cash distributions from joint ventures 12 146 41
Other investing cash flows - (7)
Net cash inflow/(outflow) from investing activities 284 (77)
Cash flows from financing activities
Proceeds from new borrowings (net of finance fees) 23 324
Repayment of borrowings 14 (151) (294)
Redemption of medium term notes 14 (502) (10)
Premium paid on redemption of medium term notes 14 (171) -
Redemption of QAG Bond 14 (273) -
Premium paid on redemption of QAG Bond 14 (61) -
Issue of medium term notes (net of finance fees) 14 988 -
Net cash receipt from derivative financial instruments 38 -
Dividends paid to shareholders 8 (150) (136)
Other financing cash flows 8 (2)
Net cash outflow from financing activities (251) (118)
Increase/(decrease) in cash and cash equivalents for the period 175 (8)
Cash and cash equivalents at the beginning of the period 30 25
Cash and cash equivalents at the end of the period 205 17
Notes to the financial statements
1. Basis of preparation
Basis of preparation
This condensed consolidated interim financial information (financial statements) for the six months ended 30 September 2017
has been prepared on a going concern basis and in accordance with the Disclosure and Transparency Rules of the Financial
Conduct Authority and IAS 34 'Interim Financial Reporting' as adopted by the European Union (EU). In order to satisfy
themselves that the Group has adequate resources to continue in operational existence for the foreseeable future, the
Directors have reviewed an 18-month cash flow forecast extracted from the Group's current five-year plan, which includes
assumptions about future trading performance and debt requirements, and an assessment of the potential impact of
significant changes to those cash flows. This, together with available market information and experience of the Group's
property portfolio and markets, has given the Directors sufficient confidence to adopt the going concern basis in preparing
the financial statements.
Consistent with the financial statements presented for the year ended 31 March 2017, the Group has reviewed the
presentation of the financial statements and has made some changes with the intention of simplifying the way in which the
Group's results are presented. One of the main changes from the previous half-yearly report is to move from reporting to
the nearest hundred thousand pounds to reporting to the nearest million pounds. Additionally, certain insignificant line
items that were previously presented separately in the financial statements have been aggregated.
The condensed consolidated interim financial information does not comprise statutory accounts within the meaning of section
434 of the Companies Act 2006. Statutory accounts for the year ended 31 March 2017, presented in accordance with
International Financial Reporting Standards as adopted by the EU (IFRS), were approved by the Board of Directors on 17 May
2017 and delivered to the Registrar of Companies. The report of the auditor on those accounts was unqualified, did not
contain an emphasis of matter paragraph and did not contain any statement under section 498 of the Companies Act 2006. The
condensed consolidated interim financial information has been reviewed, not audited and should be read in conjunction with
the Group's annual financial statements for the year ended 31 March 2017.
This condensed consolidated interim financial information was approved for issue on 13 November 2017.
Presentation of results
The Group income statement is presented in a columnar format, split into those items that relate to revenue profit and
Capital and other items. The Total column represents the Group's results presented in accordance with IFRS; the other
columns provide additional information. This is intended to reflect the way in which the Group's senior management review
the results of the business and to aid reconciliation to the segmental information.
A number of the financial measures used internally by the Group to measure performance include the results of partly-owned
subsidiaries and joint ventures on a proportionate basis. Measures that are described as being on a proportionate basis
include the Group's share of joint ventures on a line-by-line basis and are adjusted to exclude the non-owned elements of
our subsidiaries. These measures are non-GAAP measures and therefore not presented in accordance with IFRS. This is in
contrast to the condensed consolidated interim financial information presented in these half-yearly results, where the
Group applies equity accounting to its interest in joint ventures, presenting its interest as one line on the income
statement and balance sheet, and consolidating all subsidiaries at 100% with any non-owned element being adjusted as a
non-controlling interest or redemption liability, as appropriate. Our joint operations are presented on a proportionate
basis in all financial measures used internally by the Group.
Revenue profit is the Group's measure of underlying pre-tax profit. It excludes all items of a capital nature, such as
valuation movements and profits and losses on the disposal of investment properties, as well as exceptional items. The
Group believes that revenue profit better represents the results of the Group's operational performance to shareholders and
other stakeholder groups. A full definition of revenue profit is given in the glossary. The components of revenue profit
are presented on a proportionate basis in note 3. Revenue profit is a non-GAAP measure.
2. Significant accounting policies
The condensed consolidated interim financial information has been prepared on the basis of the accounting policies,
significant judgements, key assumptions and estimates as set out in the notes to the Group's annual financial statements
for the year ended 31 March 2017, as amended where relevant to reflect the new standards, amendments and interpretations
which became effective in the period. These amendments have not had an impact on the interim financial information.
A number of new standards and amendments have been issued but are not yet effective for the Group. These standards and
interpretations have not been early adopted by the Group. During the period, the Group has substantially completed its
detailed assessment of the impact of IFRS 9 Financial Instruments and IFRS 15 Revenue from Contracts with Customers, both
effective from 1 April 2018.
The Group expects the adoption of IFRS 9 to result in a change to the value of the bond exchange de-recognition adjustment
recognised on the balance sheet as part of the carrying value of the Group's borrowings, and consequently the amounts
amortised to the income statement each period and the brought-forward retained earnings. The Group is in the process of
quantifying the adjustment required and expects to have completed this exercise by 31 March 2018. Any other impact on the
Group's reported results arising on adoption of the standard is not expected to be material.
Consistent with the position disclosed in the 2017 Annual Report, based on the transactions impacting the current financial
period and future known transactions, the Group does not expect the adoption of IFRS 15 to have a material impact on the
Group's reported results.
The Group continues to assess the impact of IFRS 16 Leases, effective from 1 April 2019.
3. Segmental information
The Group's operations are organised into two operating segments, being the London Portfolio and the Retail Portfolio. The
London Portfolio includes all our London offices and central London shops and the Retail Portfolio includes all our
shopping centres and shops (excluding central London shops), hotel and leisure assets and retail parks. All of the Group's
operations are in the UK.
Management has determined the Group's operating segments based on the information reviewed by senior management to make
strategic decisions. During the period, the chief operating decision maker was the Executive Committee (ExecCom), which
comprised the Executive Directors, the managing directors of the Retail and London portfolios, the Group General Counsel
and Company Secretary, the Group HR Director and the Corporate Affairs and Sustainability Director. The information
presented to ExecCom includes reports from all functions of the business as well as strategy, financial planning,
succession planning, organisational development and Group-wide policies.
The Group's primary measure of underlying profit before tax is revenue profit. However, segment profit is the lowest level
to which the profit arising from the on-going operations of the Group is analysed between the two segments. The Group
manages its financing structure, with the exception of joint ventures, on a pooled basis and, as such, debt facilities and
finance expenses (other than those relating to joint ventures) are not specific to a particular segment. Unallocated income
and expenses (Group services) are items incurred centrally which are neither directly attributable nor can be reasonably
allocated to individual segments.
All items in the segmental information note are presented on a proportionate basis. A reconciliation from the Group income
statement to the information presented in the segmental information note is included in table 24.
Six months ended Six months ended
30 September 2017 30 September 2016
RetailPortfolio London Portfolio Total RetailPortfolio LondonPortfolio Total
Revenue profit £m £m £m £m £m £m
Rental income 176 151 327 172 142 314
Finance lease interest - 4 4 1 4 5
Gross rental income (before rents payable) 176 155 331 173 146 319
Rents payable(1) (5) (1) (6) (4) (1) (5)
Gross rental income (after rents payable) 171 154 325 169 145 314
Service charge income 27 23 50 25 22 47
Service charge expense (32) (23) (55) (27) (22) (49)
Net service charge expense (5) - (5) (2) - (2)
Other property related income 10 8 18 10 5 15
Direct property expenditure (17) (18) (35) (18) (11) (29)
Net rental income 159 144 303 159 139 298
Indirect property expenditure (11) (8) (19) (11) (7) (18)
Depreciation - (1) (1) - - -
Segment profit before finance expense 148 135 283 148 132 280
Joint venture finance expense (4) (12) (16) (2) (6) (8)
Segment profit 144 123 267 146 126 272
Group services - other income 1 1
- expense (20) (19)
Finance income 19 18
Finance expense (64) (79)
Revenue profit 203 193
1. Included within rents payable is finance lease interest payable of £1m (2016: £nil) for the London Portfolio.
Reconciliation of revenue profit to loss before tax Six months ended Six months ended
30 September 2017 30 September 2016
Total Total
£m £m
Revenue profit 203 193
Capital and other items
Valuation and profits on disposals
Profit on disposal of investment properties 2 11
Profit/(loss) on disposal of investment in joint venture 66 (2)
Net deficit on revaluation of investment properties (19) (260)
Movement in impairment of trading properties (1) 10
Profit on disposal of trading properties 16 2
64 (239)
Net finance expense
Fair value movement on interest-rate swaps 5 (17)
Amortisation of bond exchange de-recognition adjustment (10) (12)
Other (3) (4)
(8) (33)
Exceptional items
Head office relocation - 2
Redemption of medium term notes (MTNs) (173) (10)
Amortisation of bond exchange de-recognition adjustment on redeemed MTNs (57) (7)
Redemption of QAG Bond (62) -
(292) (15)
Other - (1)
Loss before tax (33) (95)
4. Performance measures
Three of the Group's key financial performance measures are adjusted diluted earnings per share, adjusted diluted net
assets per share and total business return. In the tables below we present earnings per share and net assets per share
calculated in accordance with IFRS, together with our own adjusted measures and certain measures required by EPRA. We also
present the calculation of total business return.
Adjusted earnings, which is a tax adjusted measure of revenue profit, is the basis for the calculation of adjusted earnings
per share. We believe adjusted earnings and adjusted earnings per share better represent the results of the Group's
operational performance to stakeholders as they focus on the rental income performance of the business and exclude Capital
and other items which can vary significantly from year to year.
Adjusted net assets excludes the fair value of interest-rate swaps used for hedging purposes and the bond exchange
de-recognition adjustment. We believe this better reflects the underlying net assets attributable to shareholders as it
more accurately reflects the future cash flows associated with our debt instruments.
Total business return is calculated as the cash dividends paid in the period plus the change in adjusted diluted net assets
per share, divided by the opening adjusted diluted net assets per share. We consider this to be a useful measure for
shareholders as it gives an indication of the total return on investment over the period.
EPRA measures for both earnings per share and net assets per share have been included to assist comparison between European
property companies.
Earnings per share Six months ended30 September 2017 Six months ended30 September 2016
Loss for the financial period EPRA earnings Adjusted earnings Loss for the financial period EPRA earnings Adjusted earnings
£m £m £m £m £m £m
Loss attributable to shareholders (34) (34) (34) (96) (96) (96)
Taxation - 1 1 - 1 1
Valuation and profits on disposal - (64) (64) - 239 239
Net finance expense(1) - (2) 8 - 21 33
Exceptional items(2) - 292 292 - 17 15
Other - - - - 1 1
(Loss)/profit used in per share calculation (34) 193 203 (96) 183 193
IFRS EPRA Adjusted IFRS EPRA Adjusted
Basic (loss)/earnings per share (4.3)p 24.5p 25.7p (12.1)p 23.0p 24.4p
Diluted (loss)/earnings per share (4.3)p 24.5p 25.7p (12.1)p 23.0p 24.3p
1. The difference in the adjustment for EPRA earnings and adjusted earnings relates to the amortisation of the bond
exchange de-recognition adjustment, which is included in EPRA earnings, but excluded from adjusted earnings.
2. The difference in the adjustment for EPRA earnings and adjusted earnings in 2016 relates to the head office
relocation costs, which are included in EPRA earnings, but excluded from adjusted earnings.
Net assets per share 30 September 2017 31 March 2017
Net assets EPRA net assets(1) Adjusted net assets Net assets EPRA net assets(1) Adjusted net assets
£m £m £m £m £m
Net assets attributable to shareholders 10,863 10,863 10,863 11,516 11,516 11,516
Fair value of interest-rate swaps - Group - (3) (3) - 2 2
- Joint ventures - - - - 2 2
Bond exchange de-recognition adjustment - - (247) - - (314)
Deferred tax liability arising on business combination - 4 4 - 4 4
Goodwill on deferred tax liability - (4) (4) - (4) (4)
Net assets used in per share calculation 10,863 10,860 10,613 11,516 11,520 11,206
IFRS EPRA Adjusted IFRS EPRA Adjusted
Net assets per share 1,468p n/a 1,434p 1,458p n/a 1,418p
Diluted net assets per share 1,466p 1,466p 1,432p 1,456p 1,456p 1,417p
1. EPRA diluted triple net assets per share at 30 September 2017 were 1,376p (31 March 2017: 1,328p).
4. Performance measures continued
Number of shares Six months ended30 September 2017Weighted average 30 September 2017 Six months ended30 September 2016Weighted average 31 March 2017
million million million million
Ordinary shares 800 751 801 801
Treasury shares (10) (10) (10) (10)
Own shares (1) (1) (1) (1)
Number of shares - basic 789 740 790 790
Dilutive effect of share options(1) - 1 1 1
Number of shares - diluted 789 741 791 791
1. Share options are excluded from the calculation of the weighted average diluted number of shares because they are not
dilutive in the period ended 30 September 2017.
Total business return Six months ended Six months ended
30 September 2017 30 September 2016
pence pence
Increase/(decrease) in adjusted diluted net assets per share 15 (26)
Dividend paid per share in the period (note 8) 21 19
Total return (a) 36 (7)
Adjusted diluted net assets per share at the beginning of the period (b) 1,417 1,434
Total business return (a/b) 2.5% (0.5%)
5. Revenue
All revenue is classified within the Revenue profit column of the income statement, with the exception of proceeds on the
sale of trading properties and the non-owned element of the Group's subsidiaries which are presented in the Capital and
other items column.
Six months ended30 September 2017 Six months ended30 September 2016
Revenue Capital and other items Total Revenue Capital and other items Total
profit profit
£m £m £m £m £m £m
Rental income (excluding adjustment for lease incentives) 282 1 283 271 - 271
Adjustment for lease incentives 17 - 17 19 - 19
Rental income 299 1 300 290 - 290
Service charge income 46 - 46 43 - 43
Other property related income 16 - 16 14 - 14
Trading property sales proceeds - 29 29 - 23 23
Finance lease interest 4 - 4 5 - 5
Other income 1 - 1 1 - 1
Revenue per the income statement 366 30 396 353 23 376
The following table reconciles revenue per the income statement to the individual components of revenue presented in note
3.
Six months ended30 September 2017 Six months ended30 September 2016
Group Joint ventures Adjustment for non-wholly owned subsidiaries(1) Total Group Joint Adjustment for non-wholly owned subsidiaries(1) Total
ventures
£m £m £m £m £m £m £m £m
Rental income 300 28 (1)
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