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REG - Land Sec. Group PLC - Preliminary Results to 31 March 2017 <Origin Href="QuoteRef">LAND.L</Origin> - Part 5

- Part 5: For the preceding part double click  ID:nRSR4610Fd 

                   3.7              (3)  4.6       
 
 
1.    IPD Quarterly Universe 
 
2.    IPD Retail Warehouses Quarterly Universe 
 
3.    Includes leisure, hotel portfolio and other 
 
Table 21: Cost analysis 
 
                                                                                                                                          Year ended 31 March 2017            Year ended 31 March 2016  
                                             £m                                                                                 Total £m  Cost ratio %(1)           Total £m  Cost ratio %(1)           
                                                                                                                                                                                                        
 Gross rental income (before rents payable)  648                                                                                                                                                        
 Gross rental income (after rents payable)   637                         Direct        Managed operations                       8         1.2                       8         1.2                       
 Net service charge expense                  (5)                         property      Tenant default                           2         0.3                       9         1.4                       
 Net direct property expenditure             (32)                        costs         Void related costs                       13        2.0                       15        2.3                       
 Net rental income                           600                         £37m          Other direct property costs              12        1.9                       12        1.8                       
 Indirect costs                              (39)                                                                                                                                                       
 Segment profit before finance expense       561                         Indirect      Development expenditure                  16        2.5                       20        3.0                       
 Net unallocated expenses                    (40)                        expenses                                                                                                                       
 Net finance expense - Group                 (118)                       £79m          Asset management,                                                                                                
 Net finance expense - joint ventures        (21)                                      administration and                                                                                               
 Revenue profit                              382                                       compliance                               65        10.0                      59        9.0                       
                                                    Total                £116m         Total (incl. direct vacancy costs)       116       17.9                      123       18.7                      
                                                    Total cost ratio(1)  17.9%         Head office relocation                   (1)                                 6                                   
                                                                                       EPRA costs (incl. direct vacancy costs)  115       18.1                      129       19.9                      
                                                                                       Less: Direct vacancy costs               (12)                                (15)                                
                                                                                       EPRA (excl. direct vacancy costs)        103       16.2                      114       17.5                      
                                                                                                                                                                                                        
 
 
1.    Percentages represent costs divided by gross rental income including finance leases, before rents payable. This is
with the exception of EPRA measures which represent costs divided by gross rental income including finance leases, after
rents payable. 
 
Table 22: 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 2017    31 March 2016  Surplus/ (deficit)  Surplus/ (deficit)           31 March 2017          31March 2016                   31 March 2017  31 March 2017  31 March 2016  31 March 2017  31 March 2016  
                                       £m               £m             £m                  %                            £m                     £m                             £m             £m             £m             £m             £m             
 Retail Portfolio                                                                                                                                                                                                                                        
 Shopping centres and shops            3,663            3,677          (47)                (1.3%)                       194                    195                            184            179            180            195            190            
 Retail parks                          855              886            (37)                (4.2%)                       52                     52                             52             51             50             51             51             
 Leisure and hotels                    1,361            1,323          30                  2.3%                         82                     84                             81             79             78             82             81             
 Other                                 20               20             -                   (2.0%)                       2                      2                              1              2              2              2              2              
 Total Retail Portfolio                5,899            5,906          (54)                (0.9%)                       330                    333                            318            311            310            330            324            
 London Portfolio                                                                                                                                                                                                                                        
 West End                              2,020            2,084          (87)                (4.3%)                       89                     88                             91             89             84             98             96             
 City                                  797              797            (25)                (3.1%)                       29                     28                             29             32             32             40             37             
 Mid-town                              1,013            1,053          (50)                (5.1%)                       40                     39                             40             43             42             49             49             
 Inner London                          323              320            (13)                (7.8%)                       14                     13                             14             15             9              17             17             
 Total London offices                  4,153            4,254          (175)               (4.4%)                       172                    168                            174            179            167            204            199            
 Central London shops                  1,267            1,181          82                  6.9%                         45                     44                             34             34             45             58             55             
 Other                                 41               45             (4)                 (7.8%)                       2                      2                              1              1              1              1              1              
 Total London Portfolio                5,461            5,480          (97)                (1.8%)                       219                    214                            209            214            213            263            255            
 Like-for-like portfolio (10)          11,360           11,386         (151)               (1.4%)                       549                    547                            527            525            523            593            579            
 Proposed developments (3)             6                4              (3)                 (33.2%)                      -                      -                              -              -              -              -              -              
 Development programme (11)            1,138            1,013          14                  1.3%                         21                     8                              25             1              -              60             63             
 Completed developments (3)            1,841            1,771          (7)                 (0.4%)                       63                     47                             70             40             16             86             85             
 Acquisitions (12)                     94               90             -                   0.4%                         4                      2                              4              4              4              4              3              
 Sales (13)                            -                207            -                   -                            11                     56                             -              -              13             -              12             
 Combined Portfolio                    14,439           14,471         (147)               (1.0%)                       648                    660                            626            570            556            743            742            
 Properties treated as finance leases                                                                                   (10)                   (10)                                                                                                      
 Combined Portfolio                    14,439           14,471         (147)               (1.0%)                       638                    650                                                                                                       
 
 
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 2017    31 March 2016  Surplus/ (deficit)  Surplus/ (deficit)           31 March 2017          31 March 2016                  31 March 2017  31 March 2017  31 March 2016  31 March 2017  31 March 2016  
                                       £m               £m             £m                  %                            £m                     £m                             £m             £m             £m             £m             £m             
 Retail Portfolio                                                                                                                                                                                                                                        
 Shopping centres and shops            3,860            3,790          (37)                (0.9%)                       195                    196                            185            179            180            210            205            
 Retail parks                          861              890            (40)                (4.5%)                       52                     68                             52             51             50             51             51             
 Leisure and hotels                    1,384            1,542          30                  2.2%                         94                     98                             82             80             91             83             93             
 Other                                 20               20             -                   (1.9%)                       2                      2                              1              2              2              2              2              
 Total Retail Portfolio                6,125            6,242          (47)                (0.8%)                       343                    364                            320            312            323            346            351            
 London Portfolio                                                                                                                                                                                                                                        
 West End                              3,247            3,262          (103)               (3.2%)                       123                    109                            127            107            97             156            156            
 City                                  1,853            1,814          (14)                (0.8%)                       66                     65                             67             53             36             88             83             
 Mid-town                              1,336            1,325          (48)                (3.7%)                       48                     41                             55             42             41             67             67             
 Inner London                          323              320            (13)                (7.8%)                       14                     28                             14             15             9              17             17             
 Total London offices                  6,759            6,721          (178)               (2.8%)                       251                    243                            263            217            183            328            323            
 Central London shops                  1,514            1,462          82                  5.7%                         52                     51                             42             40             49             68             67             
 Other                                 41               46             (4)                 (7.9%)                       2                      2                              1              1              1              1              1              
 Total London Portfolio                8,314            8,229          (100)               (1.3%)                       305                    296                            306            258            233            397            391            
 Combined Portfolio                    14,439           14,471         (147)               (1.0%)                       648                    660                            626            570            556            743            742            
 Properties treated as finance leases                                                                                   (10)                   (10)                                                                                                      
 Combined Portfolio                    14,439           14,471         (147)               (1.0%)                       638                    650                                                                                                       
                                                                                                                                                                                                                                                         
 Represented by:                                                                                                                                                                                                                                         
 Investment portfolio                  12,628           12,800         (187)               (1.5%)                       585                    600                            571            523            527            650            650            
 Share of joint ventures               1,811            1,671          40                  2.3%                         53                     50                             55             47             29             93             92             
 Combined Portfolio                    14,439           14,471         (147)               (1.0%)                       638                    650                            626            570            556            743            742            
                                                                                                                                                                                                                                                                     
 
 
Like-for-like segmental analysis 
 
                               Gross estimated   Net initial yield(8)  Equivalent yield(9)  Voids (by ERV)(3)  
                               rental value(7)                                                                 
                               31 March 2017     31 March 2016         31 March 2017        31 March 2016      31 March 2017  31 March 2016  31 March 2017  31 March 2016  
                               £m                £m                    %                    %                  %              %              %              %              
 Retail Portfolio                                                                                                                                                          
 Shopping centres and shops    203               197                   4.3%                 4.4%               4.8%           4.7%           3.9%           2.9%           
 Retail parks                  52                52                    5.5%                 5.1%               5.6%           5.4%           -              -              
 Leisure and hotels            82                81                    5.2%                 5.3%               5.4%           5.5%           0.7%           0.5%           
 Other                         2                 2                     3.8%                 6.3%               8.3%           8.2%           33.3%          21.7%          
 Total Retail Portfolio        339               332                   4.7%                 4.7%               5.0%           5.0%           2.8%           2.0%           
 London Portfolio                                                                                                                                                          
 West End                      98                96                    4.0%                 3.8%               4.6%           4.5%           7.6%           4.7%           
 City                          41                38                    3.8%                 3.7%               4.8%           4.5%           -              -              
 Mid-town                      50                51                    4.0%                 3.8%               4.5%           4.4%           -              0.4%           
 Inner London                  17                17                    4.2%                 2.6%               5.0%           4.9%           -              -              
 Total London offices          206               202                   4.0%                 3.7%               4.7%           4.5%           3.6%           2.3%           
 Central London shops          58                56                    2.5%                 3.5%               4.1%           4.0%           18.6%          4.9%           
 Other                         1                 1                     0.9%                 1.0%               1.3%           1.5%           33.3%          16.7%          
 Total London Portfolio        265               259                   3.6%                 3.6%               4.5%           4.4%           7.0%           2.9%           
 Like-for-like portfolio (10)  604               591                   4.2%                 4.2%               4.8%           4.7%           4.6%           2.4%           
 Proposed developments (3)     -                 -                     -                    -                  n/a            n/a            n/a            n/a            
 Development programme (11)    61                64                    0.1%                 -                  4.2%           4.0%           n/a            n/a            
 Completed developments (3)    87                85                    2.0%                 0.8%               4.2%           4.1%           n/a            n/a            
 Acquisitions (12)             4                 3                     3.7%                 3.6%               3.8%           n/a            n/a            n/a            
 Sales (13)                    -                 12                    -                    5.5%               n/a            n/a            n/a            n/a            
 Combined Portfolio            756               755                   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 SIC15 under IFRS.3.   Refer to glossary for definition.4.   Annualised rental income is annual 'rental income' 
 rental value(7) Net initial yield(8) 31 March 2017 31 March 2016 31 March 2017 31 March 2016 £m £m % % Retail Portfolio Shopping centres and shops 219 213 4.1% 4.2% Retail parks 52 52 5.4% 5.1% Leisure and hotels 83 93 5.2% 5.3% Other 2 2 3.8% 6.3% Total Retail Portfolio 356 360 4.5% 4.6% London Portfolio West End 156 156 3.0% 2.8% City 89 84 2.7% 1.7% Mid-town 68 69 3.0% 3.0% Inner London 17 17 4.2% 2.6% Total London offices 330 326 3.0% 2.5% Central London shops 69 68 2.4% 3.1% Other 1 1 0.9% 1.1% Total London Portfolio 400 395 2.9% 2.6% Combined Portfolio 756 755 3.6% 3.5% Represented by: Investment portfolio 661 661 3.7% 3.7% Share of joint ventures 95 94 2.4% 1.7% Combined Portfolio 756 755 3.6% 3.5%   (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) 
 
31 March 2017 
 
31 March 2016 
 
31 March 2017 
 
31 March 2016 
 
£m 
 
£m 
 
% 
 
% 
 
Retail Portfolio 
 
Shopping centres and shops 
 
219 
 
213 
 
4.1% 
 
4.2% 
 
Retail parks 
 
52 
 
52 
 
5.4% 
 
5.1% 
 
Leisure and hotels 
 
83 
 
93 
 
5.2% 
 
5.3% 
 
Other 
 
2 
 
2 
 
3.8% 
 
6.3% 
 
Total Retail Portfolio 
 
356 
 
360 
 
4.5% 
 
4.6% 
 
London Portfolio 
 
West End 
 
156 
 
156 
 
3.0% 
 
2.8% 
 
City 
 
89 
 
84 
 
2.7% 
 
1.7% 
 
Mid-town 
 
68 
 
69 
 
3.0% 
 
3.0% 
 
Inner London 
 
17 
 
17 
 
4.2% 
 
2.6% 
 
Total London offices 
 
330 
 
326 
 
3.0% 
 
2.5% 
 
Central London shops 
 
69 
 
68 
 
2.4% 
 
3.1% 
 
Other 
 
1 
 
1 
 
0.9% 
 
1.1% 
 
Total London Portfolio 
 
400 
 
395 
 
2.9% 
 
2.6% 
 
Combined Portfolio 
 
756 
 
755 
 
3.6% 
 
3.5% 
 
Represented by: 
 
Investment portfolio 
 
661 
 
661 
 
3.7% 
 
3.7% 
 
Share of joint ventures 
 
95 
 
94 
 
2.4% 
 
1.7% 
 
Combined Portfolio 
 
756 
 
755 
 
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 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 2015.13. Includes all properties sold since 1 April 2015. 
 
Table 23: Lease lengths 
 
                             Weighted average unexpired lease term at 31 March 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                                                     6.5                                                               
 Retail parks                7.6                                                     7.6                                                               
 Leisure and hotels          12.4                                                    12.5                                                              
 Other                       1.9                                                     1.9                                                               
 Total Retail Portfolio      8.2                                                     8.2                                                               
                                                                                                                                                       
 London Portfolio                                                                                                                                      
 West End                    8.0                                                     8.0                                                               
 City                        6.1                                                     10.9                                                              
 Mid-town                    9.5                                                     12.2                                                              
 Inner London                15.8                                                    15.8                                                              
 Total London offices        8.6                                                     10.3                                                              
 Central London shops        6.8                                                     7.2                                                               
 Other                       6.7                                                     6.7                                                               
 Total London Portfolio      8.3                                                     9.9                                                               
                                                                                                                                                       
 Combined Portfolio          8.2                                                     9.1                                                               
 
 
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 24: Development pipeline financial summary 
 
                                                                   Cumulative movements on the development programme to 31 March 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 31 March 2017  Estimated total capital expenditure(3)  Estimated total capitalised interest  Estimated total development cost(4)  Net Income/ ERV(5)  Valuation (deficit)/surplus for the year ended 31 March 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                                                  137                                                                 283                           16                           405                     4                              845                                     277                                   15                                   416                 40                                                               (9)  
                                                                   137                                                                 283                           16                           405                     4                              845                                     277                                   15                                   416                 40                                                               (9)  
 Developments after practical completion, approved or in progress                                                                                                                                                                                                                                                                                                                                                                                                     
 Shopping centres and shops                                        30                                                                  115                           8                            32                      (2)                            183                                     171                                   10                                   211                 14                                                               10   
 Retail parks                                                      -                                                                   -                             -                            -                       -                              -                                       -                                     -                                    -                   -                                                                -    
 London Portfolio                                                  212                                                                 385                           44                           401                     (87)                           955                                     272                                   44                                   528                 46                                                               4    
                                                                   242                                                                 500                           52                           433                     (89)                           1,138                                   443                                   54                                   739                 60                                                               14   
                                                                                                                                                                                                                                                                                                 
                                                                   Movement on proposed developments for the year ended 31 March 2017                                                                                                                                                            
 Proposed developments                                                                                                                                                                                                                                                                                                                                                                                                                                                
 Shopping centres and shops                                        -                                                                   -                             -                            -                       -                              -                                       -                                     -                                    -                   -                                                                -    
 Retail parks                                                      4                                                                   2                             -                            (3)                     3                              6                                       44                                    1                                    51                  3                                                                (3)  
 London Portfolio                                                  -                                                                   -                             -                            -                       -                              -                                       -                                     -                                    -                   -                                                                -    
                                                                   4                                                                   2                             -                            (3)                     3                              6                                       44                                    1                                    51                  3                                                                (3)  
 
 
1.    Total scheme details exclude properties sold in the year. 
 
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 31 March 2017. 
 
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 31 March 2017 is included in the estimated total cost. 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 31 March 2017 on unlet units. 
 
Table 25: Reconciliation of segmental information note to statutory reporting 
 
The table below reconciles the Group's income statement to the segmental information note (note 2 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. 
 
                                                                                                                                      Year ended 31 March 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                                                  587                       53                  (2)                     638                         638          -                          
 Finance lease interest                                         10                        -                   -                       10                          10           -                          
 Gross rental income (before rents payable)                     597                       53                  (2)                     648                         648          -                          
 Rents payable                                                  (10)                      (1)                 -                       (11)                        (11)         -                          
 Gross rental income (after rents payable)                      587                       52                  (2)                     637                         637          -                          
 Service charge income                                          94                        9                   (2)                     101                         101          -                          
 Service charge expense                                         (96)                      (11)                1                       (106)                       (106)        -                          
 Net service charge expense                                     (2)                       (2)                 (1)                     (5)                         (5)          -                          
 Other property related income                                  32                        2                   -                       34                          34           -                          
 Direct property expenditure                                    (58)                      (8)                 -                       (66)                        (66)         -                          
 Net rental income                                              559                       44                  (3)                     600                         600          -                          
 Indirect property expenditure                                  (79)                      (2)                 -                       (81)                        (81)         -                          
 Other income                                                   2                         -                   -                       2                           2            -                          
                                                                482                       42                  (3)                     521                         521          -                          
                                                                                                                                                                                                          
 Profit on disposal of investment properties                    19                        1                   -                       20                          -            20                         
 Loss on disposal of investment in joint venture                (2)                       -                   -                       (2)                         -            (2)                        
 Profit on disposal of other investment                         13                        -                   -                       13                          -            13                         
 Net (deficit)/surplus on revaluation of investment properties  (186)                     40                  (1)                     (147)                       -            (147)                      
 Movement in impairment of trading properties                   12                        -                   -                       12                          -            12                         
 Profit on disposal of trading properties                       29                        7                   -                       36                          -            36                         
 Head office relocation                                         1                         -                   -                       1                           -            1                          
 Other                                                          (3)                       -                   4                       1                           -            1                          
 Operating profit                                               365                       90                  -                       455                         521          (66)                       
 Finance income                                                 37                        -                   -                       37                          37           -                          
 Finance expense                                                (359)                     (21)                -                       (380)                       (176)        (204)                      
 Share of post-tax profit from joint ventures                   69                        (69)                -                       -                           -            -                          
 Profit before tax                                              112                       -                   -                       112                         382          (270)                      
 Taxation                                                       1                         -                   -                       1                           -            1                          
 Profit attributable to owners of the parent                    113                       -                   -                       113                         382          (269)                      
 
 
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. 
 
                                                                                                                            Year ended 31 March 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                                        603                       50                  (3)                     650                         650          -                          
 Finance lease interest                               10                        -                   -                       10                          10           -                          
 Gross rental income (before rents payable)           613                       50                  (3)                     660                         660          -                          
 Rents payable                                        (11)                      (1)                 -                       (12)                        (12)         -                          
 Gross rental income (after rents payable)            602                       49                  (3)                     648                         648          -                          
 Service charge income                                94                        8                   -                       102                         102          -                          
 Service charge expense                               (96)                      (9)                 -                       (105)                       (105)        -                          
 Net service charge expense                           (2)                       (1)                 -                       (3)                         (3)          -                          
 Other property related income                        36                        2                   -                       38                          38           -                          
 Direct property expenditure                          (72)                      (7)                 -                       (79)                        (79)         -                          
 Net rental income                                    564                       43                  (3)                     604                         604          -                          
 Indirect property expenditure                        (80)                      (2)                 -                       (82)                        (82)         -                          
 Other income                                         4                         -                   -                       4                           4            -                          
                                                      488                       41                  (3)                     526                         526          -                          
                                                                                                                                                                                                
 Profit on disposal of investment properties          75                        4                   -                       79                          -            79                         
 Net surplus on revaluation of investment properties  739                       171                 (3)                     907                         -            907                        
 Movement in impairment of trading properties         11                        5                   -                       16                          -            16                         
 Profit on disposal of trading properties             41                        -                   -                       41                          -            41                         
 Head office relocation                               (6)                       -                   -                       (6)                         -            (6)                        
 Other                                                (2)                       (1)                 6                       3                           -            3                          
 Operating profit                                     1,346                     220                 -                       1,566                       526          1,040            

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