REG - Land Sec. Group PLC - Half-yearly results <Origin Href="QuoteRef">LAND.L</Origin> - Part 5
14/11/2017 07:06
- Part 5: For the preceding part double click ID:nRSN3778Wd
Investment portfolio 13,008 12,628 (29) (0.2%) 299 290 605 554 523 673 650
Share of joint ventures 1,223 1,811 10 0.9% 28 24 45 27 47 65 93
Combined Portfolio 14,231 14,439 (19) (0.1%) 327 314 650 581 570 738 743
Table 21: 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 2017 31 March 2017 30 September 2017 31 March 2017 30 September 2017 31 March 2017 30 September 2017 31 March 2017
£m £m % % % % % %
Retail Portfolio
Shopping centres and shops 203 201 4.3% 4.3% 4.8% 4.8% 3.6% 4.0%
Retail parks 52 52 5.5% 5.5% 5.6% 5.6% - -
Leisure and hotels 83 82 5.0% 5.2% 5.4% 5.4% 0.7% 0.7%
Other 2 2 2.4% 3.8% 8.4% 8.3% 37.5% 33.3%
Total Retail Portfolio 340 337 4.7% 4.7% 5.1% 5.1% 2.6% 2.8%
London Portfolio
West End 117 117 4.1% 4.0% 4.6% 4.6% 6.3% 6.4%
City 40 41 4.2% 4.2% 4.8% 4.8% - -
Mid-town 50 50 4.1% 4.0% 4.5% 4.5% 0.6% -
Inner London 17 17 4.2% 4.2% 4.9% 5.0% - -
Total London offices 224 225 4.1% 4.0% 4.6% 4.6% 3.4% 3.3%
Central London shops 61 61 2.6% 2.5% 4.1% 4.0% 2.1% 1.7%
Other 1 1 1.1% 0.9% 1.3% 1.3% 66.7% 33.3%
Total London Portfolio 286 287 3.8% 3.7% 4.5% 4.5% 3.3% 3.0%
Like-for-like portfolio(10) 626 624 4.2% 4.2% 4.8% 4.8% 2.9% 2.9%
Proposed developments(3) - - - - n/a n/a n/a n/a
Development programme(11) 37 36 0.1% - 4.5% 4.5% n/a n/a
Completed developments(3) 64 65 0.5% 0.3% 4.2% 4.2% n/a n/a
Acquisitions(12) 24 - 6.0% 5.5% 6.0% n/a n/a n/a
Sales(13) - 31 - 3.2% n/a n/a n/a n/a
Combined Portfolio 751 756 3.7% 3.6% 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 SIC15 under IFRS.3. Refer to glossary for definition.4. Annualised rental income is annual 'rental
rental value(7) Net initial yield(8) 30 September 2017 31 March 2017 30 September 2017 31 March 2017 £m £m % % Retail Portfolio Shopping centres and shops 242 219 4.2% 4.1% Retail parks 53 52 5.3% 5.5% Leisure and hotels 83 83 5.0% 5.2% Other 2 2 2.4% 3.8% Total Retail Portfolio 380 356 4.5% 4.5% London Portfolio West End 156 156 3.1% 3.0% City 64 89 2.5% 2.7% Mid-town 67 68 3.1% 3.0% Inner London 17 17 4.2% 4.2% Total London offices 304 330 3.0% 3.0% Central London shops 66 69 2.5% 2.4% Other 1 1 1.2% 0.9% Total London Portfolio 371 400 2.9% 2.9% Combined Portfolio 751 756 3.7% 3.6% Represented by: Investment portfolio 684 661 3.8% 3.7% Share of joint ventures 67 95 2.0% 2.4% Combined Portfolio 751 756 3.7% 3.6% 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 2016.13. Includes all properties sold since 1 April 2016.
Gross estimated
rental value(7)
Net initial yield(8)
30 September 2017
31 March 2017
30 September 2017
31 March 2017
£m
£m
%
%
Retail Portfolio
Shopping centres and shops
242
219
4.2%
4.1%
Retail parks
53
52
5.3%
5.5%
Leisure and hotels
83
83
5.0%
5.2%
Other
2
2
2.4%
3.8%
Total Retail Portfolio
380
356
4.5%
4.5%
London Portfolio
West End
156
156
3.1%
3.0%
City
64
89
2.5%
2.7%
Mid-town
67
68
3.1%
3.0%
Inner London
17
17
4.2%
4.2%
Total London offices
304
330
3.0%
3.0%
Central London shops
66
69
2.5%
2.4%
Other
1
1
1.2%
0.9%
Total London Portfolio
371
400
2.9%
2.9%
Combined Portfolio
751
756
3.7%
3.6%
Represented by:
Investment portfolio
684
661
3.8%
3.7%
Share of joint ventures
67
95
2.0%
2.4%
Combined Portfolio
751
756
3.7%
3.6%
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 SIC15 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 2016.13. Includes all properties sold since 1 April 2016.
Table 22: Lease lengths
Weighted average unexpired lease term at 30 September 2017
Like-for-like portfolio Like-for-like portfolio, completed developments and acquisitions
Mean(1) Mean(1)
Years Years
Retail Portfolio
Shopping centres and shops 6.5 6.2
Retail parks 7.3 7.3
Leisure and hotels 12.9 12.9
Other 2.2 2.2
Total Retail Portfolio 7.9 7.9
London Portfolio
West End 8.0 8.9
City 5.6 9.2
Mid-town 9.0 11.7
Inner London 15.3 15.3
Total London offices 8.3 9.9
Central London shops 6.5 6.8
Other 6.2 6.2
Total London Portfolio 8.1 9.5
Combined Portfolio 8.2 8.7
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 23: Development pipeline financial summary
Cumulative movements on the development programme to 30 September 2017 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 2017 Estimated total capital expenditure Estimated total capitalised interest Estimated total development cost(3) Net Income/ ERV(4) Valuation (deficit)/surplus for the six months ended 30 September 2017(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 123 166 11 238 (20) 518 115 11 249 23 (2)
123 166 11 238 (20) 518 115 11 249 23 (2)
Developments after practical completion, approved or in progress
Shopping centres and shops 30 158 11 38 3 240 171 11 212 14 7
Retail parks 6 3 - 4 (1) 12 23 1 30 3 4
London Portfolio 71 213 33 144 (50) 411 155 33 259 20 11
107 374 44 186 (48) 663 349 45 501 37 22
Movement on proposed developments for the six months ended 30 September 2017
Proposed developments
Shopping centres and shops - - - - - - - - - - -
Retail parks - - - - - - - - - - -
London Portfolio 73 18 1 18 - 110 n/a n/a n/a n/a 18
73 18 1 18 - 110 n/a n/a n/a n/a 18
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. 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.
4. Net headline annual rent on let units plus net ERV at 30 September 2017 on unlet units.
Table 24: Reconciliation of segmental information note to statutory reporting
The table below reconciles the Group's income statement to the segmental information 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 segmental information 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 2017
Group income statement£m Jointventures(1)£m Proportionate share of Total£m Revenue Capital and other items£m
earnings(2)£m profit£m
Rental income 300 28 (1) 327 327 -
Finance lease interest 4 - - 4 4 -
Gross rental income (before rents payable) 304 28 (1) 331 331 -
Rents payable (5) (1) - (6) (6) -
Gross rental income (after rents payable) 299 27 (1) 325 325 -
Service charge income 46 4 - 50 50 -
Service charge expense (49) (6) - (55) (55) -
Net service charge expense (3) (2) - (5) (5) -
Other property related income 16 2 - 18 18 -
Direct property expenditure (30) (5) - (35) (35) -
Net rental income 282 22 (1) 303 303 -
Indirect property expenditure (39) (1) - (40) (40) -
Other income 1 - - 1 1 -
244 21 (1) 264 264 -
Profit on disposal of investment properties 1 1 - 2 - 2
Profit on disposal of investment in joint venture 66 - - 66 - 66
Net (deficit)/surplus on revaluation of investment properties (29) 10 - (19) - (19)
Movement in impairment of trading properties 1 (2) - (1) - (1)
Profit on disposal of trading properties 7 9 - 16 - 16
Other (1) - 1 - - -
Operating profit 289 39 - 328 264 64
Finance income 24 - - 24 19 5
Finance expense (369) (16) - (385) (80) (305)
Share of post-tax profit from joint ventures 23 (23) - - - -
Loss before tax (33) - - (33) 203 (236)
Taxation (1) - - (1) - (1)
Loss for the period (34) - - (34) 203 (237)
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 segmental information 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 segmental information note.
Six months ended 30 September 2016
Group income statement£m Jointventures(1)£m Proportionate share of Total£m Revenue Capital and other items£m
earnings(2)£m profit£m
Rental income 290 24 - 314 314 -
Finance lease interest 5 - - 5 5 -
Gross rental income (before rents payable) 295 24 - 319 319 -
Rents payable (5) - - (5) (5) -
Gross rental income (after rents payable) 290 24 - 314 314 -
Service charge income 43 4 - 47 47 -
Service charge expense (44) (5) - (49) (49) -
Net service charge expense (1) (1) - (2) (2) -
Other property related income 14 1 - 15 15 -
Direct property expenditure (26) (3) - (29) (29) -
Net rental income 277 21 - 298 298 -
Indirect property expenditure (37) - - (37) (37) -
Other income 1 - - 1 1 -
241 21 - 262 262 -
Profit on disposal of investment properties 9 2 - 11 - 11
Loss on disposal of investment in joint venture (2) - - (2) - (2)
Net (deficit)/surplus on revaluation of investment properties (278) 18 - (260) - (260)
Movement in impairment of trading properties 10 - - 10 - 10
Profit on disposal of trading properties 2 - - 2 - 2
Head office relocation 2 - - 2 - 2
Other (1) - - (1) - (1)
Operating profit (17) 41 - 24 262 (238)
Finance income 18 - - 18 18 -
Finance expense (129) (8) - (137) (87) (50)
Share of profit from joint ventures 33 (33) - - - -
Loss before tax (95) - - (95) 193 (288)
Taxation (1) - - (1) - (1)
Loss for the period (96) - - (96) 193 (289)
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 segmental information 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 segmental information note.
Table 25: Acquisitions, disposals and capital expenditure
Six months ended 30 September 2017 Six months ended 30 September 2016
Group (excl. joint ventures)£m Joint ventures£m Adjustment for proportionate share(1)£m Combined Portfolio£m Combined Portfolio£m
Investment properties
Net book value at the beginning of the period 12,144 1,763 (34) 13,873 13,954
Acquisitions 348 - - 348 14
Transfer from trading properties 1 1 - 2 -
Capital expenditure 55 47 (1) 101 152
Capitalised interest 1 3 - 4 12
Disposals (17) (612) - (629) (53)
Net movement in finance leases - - - - 15
Net (deficit)/surplus on revaluation of investment properties (29) 10 - (19) (260)
Net book value at the end of the period 12,503 1,212 (35) 13,680 13,834
Profit on disposal of investment properties 1 1 - 2 11
Trading properties
Net book value at the beginning of the period 122 124 - 246 281
Capital expenditure 11 3 - 14 27
Capitalised interest - - - - 2
Disposals (22) (47) - (69) (27)
Transfer to investment properties (1) (1) - (2) -
Movement in impairment 1 (2) - (1) 10
Net book value at the end of the period 111 77 - 188 293
Profit on disposal of trading properties 7 9 - 16 2
Investment in joint ventures
Profit/(loss) on disposal of investment in joint venture 66 - - 66 (2)
Acquisitions, development and refurbishment expenditure £m £m
Acquisitions of investment properties 348 14
Capital expenditure - investment properties 56 116
Development capital expenditure - investment properties 45 36
Capital expenditure - trading properties 12 10
Development capital expenditure - trading properties 2 17
Acquisitions, development and refurbishment expenditure 463 193
Disposals £m £m
Net book value - investment property disposals 629 53
Net book value - trading property disposals 69 27
Net book value - other net assets of joint venture disposals 46 -
Profit on disposal - investment properties 2 11
Profit on disposal - trading properties 16 2
Profit/(loss) on disposal - investment in joint venture 66 (2)
Other 2 -
Total disposal proceeds 830 91
1. This represents the interest in X-Leisure which we do not own, but which is consolidated in the Group numbers.
Investor information
1. Company website: landsec.com
The Group's half-yearly and annual reports to shareholders, results announcements and presentations, are available to view
and download from the Company's website. The website also provides details of the Company's current share price, the latest
news about the Group, its properties and operations, and details of future events and how to obtain further information.
2. Registrar: Equiniti Group PLC
Enquiries concerning shareholdings, dividends and changes in personal details should be referred to the Company's
registrar, Equiniti Group PLC (Equiniti), in the first instance. They can be contacted using the details below:
Telephone:
- 0371 384 2128 (from the UK)
- +44 121 415 7049 (from outside the UK)
- Lines are open from 08:30 to 17:30, Monday to Friday, excluding UK public holidays.
Correspondence address:
Equiniti Group PLC
Aspect House
Spencer Road
Lancing
West Sussex
BN99 6DA
Information on how to manage your shareholding can be found at https://help.shareview.co.uk. If you are not able to find
the answer to your question within the general Help information page, a personal enquiry can be sent directly through
Equiniti's secure e-form on their website. Please note that you will be asked to provide your name, address, shareholder
reference number and a valid e-mail address. Alternatively, shareholders can view and manage their shareholding through the
Landsec share portal which is hosted by Equiniti - simply visit https://portfolio.shareview.co.uk and follow the
registration instructions.
3. Shareholder enquiries
If you have an enquiry about the Company's business or about something affecting you as a shareholder (other than queries
which are dealt with by the Registrar), please email Investor Relations (see details in 8. below).
4. Share dealing services: shareview.co.uk
The Company's shares can be traded through most banks, building societies and stockbrokers. They can also be traded through
Equiniti. To use their service, shareholders should contact Equiniti: 0345 603 7037 from the UK. Lines are open Monday to
Friday 8:00am to 4:30pm for dealing and until 6:00pm for enquiries, excluding UK public holidays.
5. 2017/18 second quarterly dividend
The Board has declared a second quarterly dividend for the year ending 31 March 2018 of 9.85p per ordinary share will be
paid on 5 January 2018 to shareholders registered at the close of business on 1 December 2017. This will be paid wholly as
an ordinary dividend. Together with the first quarterly dividend of 9.85p already paid on 6 October 2017 wholly as a
Property Income Distribution (PID), the first half dividend will be 19.7p per ordinary share (six months ended 30 September
2016: 17.9p).
6. Dividend related services
- Dividend payments to UK shareholders - Dividend Mandates
We recommend that dividends are paid directly into a nominated bank or building society account through the Bankers
Automated Clearing System (BACS). This service provides cleared funds on the dividend payment date, is more secure than
sending a cheque by post and avoids the inconvenience of paying each dividend by cheque. This arrangement is only available
in respect of dividends paid in sterling.
- Dividend payments to overseas shareholders - International Payment Service
For international shareholders who would prefer to receive payment of their dividends in local currency and directly into
their local bank account, an Overseas Payment Service (OPS) is available. This can be more convenient and effective than
otherwise receiving dividend payments by sterling cheque or into a UK bank account.
The OPS service is available from Equiniti who, in partnership with Citibank, may be able to convert sterling dividends
into your local currency at competitive rates and either arrange for those funds to be sent to you by currency draft or
credited to your bank account directly.
- Dividend Reinvestment Plan (DRIP)
A DRIP is available from Equiniti. This facility provides an opportunity by which shareholders can conveniently and easily
increase their holding in the Company by using their cash dividends to buy more shares. Participation in the DRIP will mean
that your dividend payments will be reinvested in the Company's shares and these will be purchased on your behalf in the
market on, or as soon as practical after, the dividend payment date.
You may only participate in the DRIP if you are resident in the European Economic Area, Channel Islands or Isle of Man.
For further information (including terms and conditions) and to register for any of these dividend-related services, simply
visit www.shareview.co.uk.
7. Financial reporting calendar
2018
Financial year end 31 March
Preliminary results announcement 15 May
Half-yearly results announcement 13 November*
* Provisional date only
8. Investor relations enquiries
For investor relations enquiries, please contact Edward Thacker, Head of Investor Relations at Landsec, by telephone on +44
(0)20 7413 9000 or by email at enquiries@landsec.com.
Glossary
Adjusted earnings per share (Adjusted EPS)
Earnings per share based on revenue profit after related tax.
Adjusted net assets per share
Net assets per share adjusted to remove the effect of the de-recognition of the 2004 bond exchange and cumulative fair
value movements on interest-rate swaps and similar instruments.
Adjusted net debt
Net debt excluding cumulative fair value movements on interest-rate swaps, the adjustment arising from the de-recognition
of the bond exchange and amounts payable under finance leases. It generally includes the net debt of subsidiaries and joint
ventures on a proportionate basis.
Book value
The amount at which assets and liabilities are reported in the financial statements.
BREEAM
Building Research Establishment's Environmental Assessment Method.
Combined Portfolio
The Combined Portfolio comprises the investment properties of the Group's subsidiaries, on a proportionately consolidated
basis when not
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