REG - Land Sec. Group PLC - Preliminary Results to 31 March 2016 <Origin Href="QuoteRef">LAND.L</Origin> - Part 5
17/05/2016 07:06
- Part 5: For the preceding part double click ID:nRSQ4006Yd
the movement on borrowings Group
2016 2015
£m £m
At the beginning of the year 3,783.7 3,362.2
Repayment of loans (1,206.5) (13.6)
Proceeds from new loans 250.0 431.0
Foreign exchange on commercial paper 23.4 (4.9)
Amortisation of finance fees 2.0 1.1
Amortisation of bond exchange de-recognition adjustment 23.4 21.5
Net movement in finance lease obligations (3.0) (13.6)
At 31 March 2,873.0 3,783.7
Medium term notes (MTNs)
The MTNs are secured on the fixed and floating pool of assets of the Security Group. Debt investors benefit from security
over a pool of investment properties, development properties and the Group's investment in the Westgate Oxford Alliance
Limited Partnership, Nova, Victoria and the St. David's Limited Partnership, valued at £12.6bn at 31 March 2016 (2015:
£12.3bn). The secured debt structure has a tiered operating covenant regime which gives the Group substantial flexibility
when the loan-to-value and interest cover in the Security Group are less than 65% and more than 1.45 times respectively. If
these limits are exceeded, the operating environment becomes more restrictive with provisions to encourage a reduction in
gearing. The interest rate is fixed until the expected maturity, being two years before the legal maturity date for each
MTN, whereupon the interest rate for the last two years is LIBOR plus an increased margin. The effective interest rate
includes the amortisation of issue costs. The MTNs are listed on the Irish Stock Exchange and their fair values are based
on their respective market prices.
On 29 March 2016, the Group repurchased the £400m, 4.875% MTN due in 2019 for a premium of £26.2m. At 31 March 2016, the
Group had £2,514.4m of MTNs outstanding with maturities between 2022 and 2036.
Syndicated and bilateral bank debt
Group
Maturity Authorised Drawn Undrawn
as at
31 March 2016
2016 2015 2016 2015 2016 2015
£m £m £m £m £m £m
Syndicated debt 2021 1,380.0 1,255.0 430.0 180.0 950.0 1,075.0
Bilateral debt 2017-18 485.0 985.0 - 595.0 485.0 390.0
1,865.0 2,240.0 430.0 775.0 1,435.0 1,465.0
The terms of the Security Group funding arrangements require undrawn facilities to be reserved where syndicated and
bilateral facilities mature within one year, or where commercial paper has been issued. Accordingly, the Group's available
undrawn facilities at 31 March 2016 were £1,432.5m (2015: £1,288.9m), compared with undrawn facilities of £1,435.0m (2015:
£1,465.0m).
All syndicated and bilateral facilities are committed and secured on the assets of the Security Group. In the year ended 31
March 2016, the amounts drawn under the Group's bilateral facilities and syndicated bank debt decreased by £345.0m. The
£500.0m bank facility in place at 31 March 2015 was cancelled on 4 November 2015 and not replaced.
Queen Anne's Gate Bond
On 29 July 2009, the Group issued a £360.3m bond secured on the rental cash flows from the commercial lease with the UK
Government over Queen Anne's Gate (QAG). The QAG Bond is a fully amortising bond with a final maturity in February 2027 and
a fixed interest rate of 5.253% per annum. At 31 March 2016, the bond had an amortised book value of £289.4m (2015:
£304.0m).
Fair values
The fair values of any floating rate financial liabilities are assumed to be equal to their nominal value, but adjusted for
the effect of exit fees payable on redemption. The fair values of the MTNs and the QAG Bond fall within Level 1, the
syndicated, bilateral facilities, commercial paper, interest-rate swaps and foreign exchange swaps fall within Level 2, and
the amounts payable under finance leases fall within Level 3, as defined by IFRS 13.
Bond exchange de-recognition
On 3 November 2004, a debt refinancing was completed resulting in the Group exchanging all of its outstanding bond and
debenture debt for new MTNs with higher nominal values. The new MTNs did not meet the IAS 39 requirement to be
substantially different from the debt that they replaced. Consequently the book value of the new debt is reduced to the
book value of the original debt by the 'bond exchange de-recognition' adjustment which is then amortised to zero over the
life of the new MTNs. The amortisation is included in interest expense in the income statement.
15. Monies held in restricted accounts and deposits
Group Company
2016 2015 2016 2015
£m £m £m £m
Cash at bank and in hand 11.6 8.2 3.5 -
Short-term deposits 8.1 2.2 - -
19.7 10.4 3.5 -
The credit quality of monies held in restricted accounts and deposits can be assessed by reference to external credit
ratings of the counterparty where the account or deposit is placed.
Group
2016 2015
£m £m
Counterparties with external credit ratings
A 11.7 10.4
BBB+ 8.0 -
19.7 10.4
16. Cash and cash equivalents
Group Company
2016 2015 2016 2015
£m £m £m £m
Cash at bank and in hand 23.6 6.6 0.1 0.1
Short-term deposits 1.1 7.7 - -
24.7 14.3 0.1 0.1
Short-term deposits
The effective interest rate on short-term deposits was 0.4% during the year ended 31 March 2016 (2015: 0.3%) and they had
an average maturity of 1.4 days (2015: 1.5 days).
The credit quality of cash and cash equivalents can be assessed by reference to external credit ratings of the counterparty
where the account or deposit is placed.
Group
2016 2015
£m £m
Counterparties with external credit ratings
A 23.6 12.8
A- - 1.5
BBB+ 1.1 -
24.7 14.3
17. Events after the reporting period
There are no reportable events after the reporting period.
Business analysis
Table 11: EPRA performance measures
31 March 2016
Definition for EPRA measure Notes Land Securitiesmeasure EPRAmeasure
Adjusted earnings Recurring earnings from core operational activity(1) 7 £362.1m £333.1m
Adjusted earnings per share Adjusted earnings per weighted number of ordinary shares(1) 7 45.9p 42.2p
Adjusted diluted earnings per share Adjusted diluted earnings per weighted number of ordinary 7 45.7p 42.0p
shares(1)
Adjusted net assets Net asset value adjusted to exclude fair value movements on interest-rate swaps(2) 6 £11,364.7m £11,733.0m
Adjusted diluted net assets per share Adjusted diluted net assets per share(2) 6 1,434p 1,481p
Triple net assets Adjusted net assets amended to include the fair value of financial instruments and debt 6 £10,693.2m £10,693.2m
Diluted triple net assets per share Diluted triple net assets per share 6 1,349p 1,349p
Net initial yield (NIY) Annualised rental income less non-recoverable costs as a % of market value plus assumed purchasers' costs(3) 3.5% 4.2%
Topped-up NIY NIY adjusted for rent free periods(3) 4.1% 4.4%
Voids/vacancy rate ERV of vacant space as a % of ERV of Combined Portfolio excluding the development programme(4) 2.3% 2.2%
Cost ratio Total costs as a percentage of gross rental income (including direct vacancy costs)(5) 18.7% 19.9%
Total costs as a percentage of gross rental income (excluding direct vacancy costs)(5) n/a 17.5%
Refer to notes 6 and 7 to the financial statements for further analysis.
1. EPRA adjusted earnings and EPRA adjusted earnings per share include the amortisation of bond exchange de-recognition
of £23.4m and head office relocation costs of £5.6m.
2. EPRA adjusted net assets and adjusted diluted net assets per share include the bond exchange de-recognition
adjustment of £368.3m.
3. Our NIY and Topped-up NIY relate to the Combined Portfolio, excluding properties in the development programme that
have not yet reached practical completion, and are calculated by our external valuers. EPRA NIY and EPRA Topped-up NIY
calculations are consistent with ours, but excludes all developments.
4. Our measure reflects voids in our like-for-like portfolio only. The EPRA measure reflects voids in the Combined
Portfolio excluding only the development programme.
5. The EPRA cost ratio is calculated based on gross rental income after rents payable, whereas our measure is based on
gross rental income before rents payable. We do not calculate a cost ratio excluding direct vacancy costs as we do not
consider this to be helpful.
Table 12: Top 12 occupiers at 31 March 2016
% of Group rent(1)
Accor 5.2
Central Government(2) 4.7
Deloitte 2.6
Mizuho Bank 1.7
Boots 1.5
Taylor Wessing 1.3
Cineworld 1.2
Sainsbury's 1.2
K&L Gates 1.1
Deutsche Bank 1.1
M&S 1.0
Arcadia Group 1.0
23.6
1. On a proportionate basis.
2. Relates entirely to Queen Anne's Gate, SW1.
Table 13: Development pipeline and trading property development schemes at 31 March 2016
Development pipeline
Developments after practical completion
1 & 2 New Ludgate, EC4 Office 100 354,800 93 513 24.2 Apr 2015 248 248
Retail 26,800 100
The Zig Zag Building, SW1(1) Office 100 192,700 89 388 17.3 Nov 2015 178 178
Retail 41,500 78
Developments approved or in progress
20 Eastbourne Terrace, W2 Office 100 92,800 62 121 6.4 May 2016 63 66
1 New Street Square, EC4 Office 100 274,800 100 272 15.5 Jul 2016 127 176
Nova, Victoria, SW1 - Phase I Office 50 481,100 12 325 21.0 Sep 2016 208 248
Retail 79,500 65
Oriana, W1 - Phase II Retail 50 72,500 100 79 3.3 Jan 2017 30 36
Westgate Oxford Retail 50 804,500 43 100 13.9 Oct 2017 77 220
Residential 37,000 -
Proposed developments
Selly Oak, Birmingham Retail 50 200,000 n/a n/a n/a 2017 n/a n/a
Residential 89,000 n/a n/a n/a 2018 n/a n/a
Developments let and transferred or sold
62 Buckingham Gate, SW1 Office 100 259,700 100 n/a(2) 19.1 May 2013 178 178
Retail 15,600 100
20 Fenchurch Street, EC3 Office 50 673,700 100 n/a(2) 22.0 Dec 2014 237 237
Retail 14,200 100
22.0
Dec 2014
237
237
Retail
14,200
100
1. Includes retail within Kings Gate, SW1.
2. Once properties are transferred from the development pipeline, we do not report on their individual value.
Where the property is not 100% owned, floor areas and letting status shown above represent the full scheme whereas all
other figures represent our proportionate share. Letting % is measured by ERV and shows letting status at 31 March 2016.
Trading property development schemes are excluded from the development pipeline.
Total development cost
Refer to glossary for definition. Of the properties in the development pipeline at 31 March 2016, the only properties on
which interest was capitalised on the land cost were Westgate Oxford and Nova, Victoria, SW1 - Phase I. The figures for
total development costs include expenditure on the residential elements of Westgate Oxford (£11.0m).
Net income/ERV
Net income/ERV represents headline annual rent on let units plus ERV at 31 March 2016 on unlet units, both after rents
payable.
Trading property development schemes
Kings Gate, SW1 Residential 100 108,600 100 86 Oct 2015 160 160
Nova, Victoria, SW1 - Phase I Residential 50 166,800 170 81 Sep 2016 124 142
Oriana, W1 - Phase II Residential 50 20,200 18 28 Feb 2017 11 15
Oriana, W1 - Phase II
Residential
50
20,200
18
28
Feb 2017
11
15
Table 14: Combined Portfolio value by location at 31 March 2016
Shopping centres and shops Retail parks Offices Hotels, leisure, residential Total
& other
% % % % %
Central, inner and outer London 14.2 0.2 46.4 3.4 64.2
South East and East 9.6 3.6 - 0.9 14.1
Midlands - 0.7 - 0.9 1.6
Wales and South West 2.6 0.5 - 4.4 7.5
North, North West, Yorkshire and Humberside 7.1 0.9 0.1 1.2 9.3
Scotland and Northern Ireland 2.8 0.3 - 0.2 3.3
Total 36.3 6.2 46.5 11.0 100.0
% figures calculated by reference to the Combined Portfolio value of £14.5bn.
Table 15: Performance relative to IPD
Total property returns - year to 31 March 2016
Land Securities IPD(1)
% %
Retail - Shopping centres 8.3 7.4
- Retail parks 4.9 5.8 (3)
Central London shops 11.5 18.4
Central London offices 14.1 17.5
Total portfolio 11.5 (2) 11.3
1. IPD Quarterly Universe
2. Includes leisure, hotel portfolio and other
3. IPD Retail Warehouses Quarterly Universe
Table 16: Cost analysis
Analysis of costs by nature of spend
Revenue profit Costs analysed Managed operations Tenant Void related costs Other direct Development expenditure Asset
default property management,
costs administration
and
compliance
Year ended 31 March 2016 £m £m £m £m £m £m £m £m
Gross rental income (after rents payable) 648.7
Net service charge expense (3.7) 3.7
Direct property expenditure (41.3) 41.3
Total direct expenses (45.0) 45.0 7.7 9.4 15.2 11.6 1.1
Net rental income 603.7
Indirect costs (44.3) 44.3
Unallocated expenses (net) (34.0) 34.0
Total indirect expenses (78.3) 78.3 19.0 59.3
Net interest - Group (143.2)
Net interest - joint ventures (20.1)
Revenue profit 362.1
Total costs - year ended 31 March 2016 123.3 7.7 9.4 15.2 11.6 20.1 59.3
Total costs % (1) 18.7% 1.2% 1.4% 2.3% 1.8% 3.0% 9.0%
Total costs - year ended 31 March 2015 132.0 8.6 7.2 11.1 7.8 30.9 66.4
Total costs % (1) 20.2% 1.3% 1.1% 1.7% 1.2% 4.7% 10.2%
1. All percentages represent costs divided by gross rental income including finance leases, before rents payable.
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)
31 March 2016 31 March 2015 Surplus/ (deficit) Surplus/ (deficit) 31 March 2016 31 March 2015 31 March 2016 31 March 2016 31 March 2015 31 March 2016 31 March 2015
£m £m £m % £m £m £m £m £m £m £m
Retail Portfolio
Shopping centres and shops 2,871.3 2,726.4 117.1 4.3% 156.4 148.7 146.4 143.2 138.5 150.7 146.0
Retail parks 834.3 835.5 (8.6) (1.0%) 49.5 47.8 48.8 47.7 48.0 48.3 48.2
Leisure and hotels 1,510.9 1,426.4 87.3 6.2% 96.5 89.5 92.7 90.4 88.7 92.2 87.8
Other 20.2 20.8 (0.8) (3.7%) 1.6 1.4 1.5 1.7 1.0 2.3 2.2
Total Retail Portfolio 5,236.7 5,009.1 195.0 3.9% 304.0 287.4 289.4 283.0 276.2 293.5 284.2
London Portfolio
West End 2,083.9 1,985.8 93.8 4.9% 88.1 88.5 84.5 85.5 86.1 97.0 91.9
City 735.9 692.1 47.6 7.3% 27.8 25.0 29.7 32.4 29.8 37.1 32.5
Mid-town 1,053.2 1,002.0 81.4 9.3% 38.6 38.4 40.7 41.7 41.6 49.7 45.1
Inner London 320.1 293.8 4.3 2.6% 13.4 13.6 12.8 8.9 13.0 16.5 15.4
Total London offices 4,193.1 3,973.7 227.1 6.3% 167.9 165.5 167.7 168.5 170.5 200.3 184.9
Central London shops 1,187.4 1,065.4 111.0 10.3% 44.0 42.8 44.9 45.3 41.0 55.5 51.4
Other 45.9 45.7 0.3 0.5% 2.4 2.1 0.5 0.5 0.7 0.6 0.7
Total London Portfolio 5,426.4 5,084.8 338.4 7.1% 214.3 210.4 213.1 214.3 212.2 256.4 237.0
Like-for-like portfolio(10) 10,663.1 10,093.9 533.4 5.5% 518.3 497.8 502.5 497.3 488.4 549.9 521.2
Proposed developments(3) 3.5 2.5 (0.2) (4.2%) - - - - - - -
Completed developments(3) 1,038.5 896.0 109.3 12.4% 34.7 27.8 36.6 17.3 8.9 46.0 43.3
Acquisitions(11) 967.9 825.4 11.9 1.2% 41.1 30.6 41.0 40.8 37.6 42.3 40.2
Sales(12) - 912.7 - - 38.5 82.9 - - 45.2 - 58.6
Development programme(13) 1,797.5 1,300.9 253.0 16.6% 24.5 1.8 30.8 0.6 1.6 104.1 87.5
Combined Portfolio 14,470.5 14,031.4 907.4 7.0% 657.1 640.9 610.9 556.0 581.7 742.3 750.8
Non-current asset held for sale(14) - - - - 3.4 12.8
Properties treated as finance leases (10.2) (10.4)
Combined Portfolio 14,470.5 14,031.4 907.4 7.0% 650.3 643.3
Total portfolio analysis
Market value(1) Valuation Rental income(3) Annualised rental income(4) Annualised netrent(5) Net estimated rental value(6)
movement(2)
31 March 2016 31 March 2015 Surplus/ (deficit) Surplus/ (deficit) 31 March 2016 31 March 2015 31 March 2016 31 March 2016 31 March 2015 31 March 2016 31 March 2015
£m £m £m % £m £m £m £m £m £m £m
Retail Portfolio
Shopping centres and shops 3,790.3 3,564.8 142.2 3.9% 197.0 212.5 184.5 180.2 177.6 204.5 188.5
Retail parks 889.9 1,230.4 (9.6) (1.1%) 68.1 72.3 51.6 49.8 70.9 51.0 72.2
Leisure and hotels 1,541.5 1,440.7 85.6 6.0% 97.7 91.3 94.0 91.7 90.2 93.1 89.0
Other 20.2 32.3 (0.8) (3.7%) 1.8 2.3 1.5 1.7 1.6 2.3 3.1
Total Retail Portfolio 6,241.9 6,268.2 217.4 3.7% 364.6 378.4 331.6 323.4 340.3 350.9 352.8
London Portfolio
West End 3,262.2 2,922.3 306.1 10.7% 109.0 101.8 110.7 97.1 96.6 157.1 152.2
City 1,814.0 1,649.3 139.3 8.8% 61.4 43.3 64.3 35.6 30.9 82.6 78.3
Mid-town 1,325.0 1,276.6 120.9 10.9% 41.3 41.5 40.7 41.5 43.7 67.2 68.4
Inner London 320.0 483.3 4.3 2.6% 27.5 21.3 12.8 8.9 23.5 16.5 32.3
Total London offices 6,721.2 6,331.5 570.6 10.0% 239.2 207.9 228.5 183.1 194.7 323.4 331.2
Central London shops 1,461.4 1,361.3 119.1 8.9% 50.9 52.4 50.2 48.9 45.8 67.2 65.9
Other 46.0 70.4 0.3 0.5% 2.4 2.2 0.6 0.6 0.9 0.8 0.9
Total London Portfolio 8,228.6 7,763.2 690.0 9.7% 292.5 262.5 279.3 232.6 241.4 391.4 398.0
Combined Portfolio 14,470.5 14,031.4 907.4 7.0% 657.1 640.9 610.9 556.0 581.7 742.3 750.8
Non-current asset held for sale(14) - - - - 3.4 12.8
Properties treated as finance leases (10.2) (10.4)
Combined Portfolio 14,470.5 14,031.4 907.4 7.0% 650.3 643.3
Represented by:
Investment portfolio 12,799.4 12,603.5 736.0 6.4% 600.8 572.7 565.4 526.5 550.1 650.1 670.0
Share of joint ventures 1,671.1 1,427.9 171.4 11.8% 49.5 70.6 45.5 29.5 31.6 92.2 80.8
Combined Portfolio 14,470.5 14,031.4 907.4 7.0% 650.3 643.3 610.9 556.0 581.7 742.3 750.8
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)
31 March 2016 31 March 2015 31 March 2016 31 March 2015 31 March 2016 31 March 2015 31 March 2016 31 March 2015
£m £m % % % % % %
Retail Portfolio
Shopping centres and shops 158.2 154.6 4.5% 4.5% 4.7% 4.8% 2.8% 3.2%
Retail parks 48.9 48.9 5.2% 5.3% 5.4% 5.4% - 1.4%
Leisure and hotels 92.3 87.8 5.4% 5.6% 5.5% 5.8% 0.7% 0.9%
Other 2.3 2.2 6.0% 2.3% 8.0% 7.8% 21.7% 22.7%
Total Retail Portfolio 301.7 293.5 4.8% 4.9% 5.1% 5.2% 1.8% 2.4%
London Portfolio
West End 97.1 91.9 3.8% 4.1% 4.5% 4.5% 4.6% 3.3%
City 38.1 33.3 4.0% 4.0% 4.5% 4.3% - -
Mid-town 50.9 46.3 3.8% 3.9% 4.4% 4.2% 0.4% 3.2%
Inner London 16.5 15.4 2.6% 4.2% 4.9% 5.0% - -
Total London offices 202.6 186.9 3.7% 4.1% 4.5% 4.4% 2.3% 2.4%
Central London shops 55.9 51.7 3.5% 3.5% 4.0% 4.4% 4.8% 4.8%
Other 0.6 0.7 1.3% 1.3% 1.5% 1.4% 16.7% -
Total London Portfolio 259.1 239.3 3.7% 3.9% 4.4% 4.4% 2.9% 2.9%
Like-for-like portfolio(10) 560.8 532.8 4.2% 4.4% 4.7% 4.8% 2.3% 2.6%
Proposed developments(3) - - - - n/a n/a n/a n/a
Completed developments(3) 46.0 43.5 1.6% 0.6% 3.8% 4.3% n/a n/a
Acquisitions(11) 42.6 40.2 3.7% 3.8% 4.3% n/a n/a n/a
Sales(12) - 58.7 - 4.1% n/a n/a n/a n/a
Development programme(13) 105.6 87.6 - - 4.1% 4.4% n/a n/a
Combined Portfolio 755.0 762.8 3.5% 3.7% 4.5% n/a n/a n/a
Total portfolio analysis Notes:
Gross estimated 1. The market value figures are determined by the Group's external valuers.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) 31 March 2016 31 March 2015 31 March 2016 31 March 2015 £m £m % % Retail Portfolio Shopping centres and shops 213.3 197.2 4.2% 4.4% Retail parks 51.6 72.9 5.0% 5.3% Leisure and hotels 93.3 89.0 5.3% 5.6% Other 2.3 3.1 6.0% 3.3% Total Retail Portfolio 360.5 362.2 4.6% 4.8% London Portfolio West End 157.1 152.3 2.8% 3.0% City 83.9 79.2 1.7% 1.8% Mid-town 68.6 69.7 3.0% 3.2% Inner London 16.5 32.3 2.6% 3.9% Total London offices 326.1 333.5 2.5% 2.8% Central London shops 67.6 66.2 3.2% 3.3% Other 0.8 0.9 0.5% 0.4% Total London Portfolio 394.5 400.6 2.6% 2.8% Combined Portfolio 755.0 762.8 3.5% 3.7% Represented by: Investment portfolio 661.0 681.0 3.7% 3.9% Share of joint ventures 94.0 81.8 1.7% 1.8% Combined Portfolio 755.0 762.8 3.5% 3.7% 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. Includes all properties acquired since 1 April 2014.12. Includes all properties sold since 1 April 2014.13. 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.14. As at 31 March 2015, the non-current asset held for sale was excluded from the Combined Portfolio and shown separately on the balance sheet as a 'Non
-current asset held for sale'. The sale of the asset completed in the year ended 31 March 2016.
Gross estimated
rental value(7)
Net initial yield(8)
31 March 2016
31 March 2015
31 March 2016
31 March 2015
£m
£m
%
%
Retail Portfolio
Shopping centres and shops
213.3
197.2
4.2%
4.4%
Retail parks
51.6
72.9
5.0%
5.3%
Leisure and hotels
93.3
89.0
5.3%
5.6%
Other
2.3
3.1
6.0%
3.3%
Total Retail Portfolio
360.5
362.2
4.6%
4.8%
London Portfolio
West End
157.1
152.3
2.8%
3.0%
City
83.9
79.2
1.7%
1.8%
Mid-town
68.6
69.7
3.0%
3.2%
Inner London
16.5
32.3
2.6%
3.9%
Total London offices
326.1
333.5
2.5%
2.8%
Central London shops
67.6
66.2
3.2%
3.3%
Other
0.8
0.9
0.5%
0.4%
Total London Portfolio
394.5
400.6
2.6%
2.8%
Combined Portfolio
755.0
762.8
3.5%
3.7%
Represented by:
Investment portfolio
661.0
681.0
3.7%
3.9%
Share of joint ventures
94.0
81.8
1.7%
1.8%
Combined Portfolio
755.0
762.8
3.5%
3.7%
1. The market value figures are determined by the Group's external valuers.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. Includes all properties acquired since 1 April 2014.12. Includes all properties sold since 1 April 2014.13.
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.14. As at 31 March 2015, the non-current asset held for
sale was excluded from the Combined Portfolio and shown separately on the balance sheet as a 'Non-current asset held for
sale'. The sale of the asset completed in the year ended 31 March 2016.
Table 18: Lease lengths
Weighted average unexpired lease term at 31 March 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 6.8 6.8
Retail parks 8.0 8.2
Leisure and hotels 12.8 13.0
Other 2.5 2.5
Total Retail Portfolio 8.8 8.8
London Portfolio
West End 8.6 8.7
City 6.4 9.7
Mid-town 10.1 10.1
Inner London 16.3 16.3
Total London offices 9.2 9.7
Central London shops 5.4 5.7
Other 7.7 7.7
Total London Portfolio 8.4 9.0
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