REG - Land Sec. Group PLC - LS half-yearly results to 30 September 2014 <Origin Href="QuoteRef">LAND.L</Origin> - Part 2
11/11/2014 08:31
- Part 2: For the preceding part double click ID:nRSK6520Wa
Investment properties 11 11,279.3 9,847.7
Intangible assets 18 35.5 -
Other property, plant and equipment 8.5 7.3
Net investment in finance leases 186.0 186.9
Loan investment 49.7 50.0
Investments in joint ventures 12 1,391.0 1,443.3
Trade and other receivables 42.7 34.3
Derivative financial instruments 3.2 5.3
Pension surplus 2.6 2.3
Total non-current assets 12,998.5 11,577.1
Current assets
Trading properties and long-term development contracts 13 217.1 192.9
Trade and other receivables 382.6 366.3
Monies held in restricted accounts and deposits 16.1 14.5
Cash and cash equivalents 22.0 20.9
Total current assets 637.8 594.6
Non-current asset held for sale 17 264.3 -
Total assets 13,900.6 12,171.7
Current liabilities
Borrowings 15 (13.9) (513.2)
Trade and other payables (355.2) (319.5)
Provisions (2.4) (3.6)
Derivative financial instruments (1.2) (5.5)
Current tax liabilities (0.5) (2.9)
Total current liabilities (373.2) (844.7)
Non-current liabilities
Borrowings 15 (4,111.7) (2,849.0)
Trade and other payables (13.0) (23.6)
Derivative financial instruments (14.6) (3.5)
Redemption liabilities (37.6) (32.6)
Deferred tax 18 (5.9) -
Total non-current liabilities (4,182.8) (2,908.7)
Total liabilities (4,556.0) (3,753.4)
Net assets 9,344.6 8,418.3
Equity
Capital and reserves attributable to the owners of the parent
Ordinary shares 80.1 79.9
Share premium 789.3 788.3
Capital redemption reserve 30.5 30.5
Share-based payments 5.8 6.3
Retained earnings 8,447.0 7,522.5
Own shares (8.1) (9.2)
Total equity 9,344.6 8,418.3
Unaudited statement of changes in equity Attributable to owners of the parent
Ordinary shares Share premium Capital redemption reserve Share-based payments Retained earnings Own Total
shares equity
£m £m £m £m £m £m £m
At 1 April 2013 79.2 787.6 30.5 6.8 6,590.3 (7.7) 7,486.7
Total comprehensive income for the period - - - - 400.1 - 400.1
Transactions with owners:
Exercise of options - 0.7 - - - - 0.7
Dividends to owners of the parent 0.4 (0.4) - - (86.6) - (86.6)
Fair value of share-based payments - - - 2.8 - - 2.8
Release on exercise of share options - - - (3.2) 3.2 - -
Settlement and transfer of shares to employees on exercise of share options, net of proceeds - - - - (6.7) 9.6 2.9
Acquisition of own shares and treasury shares - - - - (0.3) (9.1) (9.4)
Total transactions with owners of the parent 0.4 0.3 - (0.4) (90.4) 0.5 (89.6)
At 30 September 2013 79.6 787.9 30.5 6.4 6,900.0 (7.2) 7,797.2
Total comprehensive income for the period - - - - 712.2 - 712.2
Transactions with owners:
Exercise of options - 0.7 - - - - 0.7
Dividends to owners of the parent 0.3 (0.3) - - (88.8) - (88.8)
Fair value of share-based payments - - - 2.7 - - 2.7
Release on exercise of share options - - - (2.8) 2.8 - -
Settlement and transfer of shares to employees on exercise of share options, net of proceeds - - - - (3.6) 5.2 1.6
Acquisition of own shares and treasury shares - - - - (0.1) (7.2) (7.3)
Total transactions with owners of the parent 0.3 0.4 - (0.1) (89.7) (2.0) (91.1)
At 31 March 2014 79.9 788.3 30.5 6.3 7,522.5 (9.2) 8,418.3
Total comprehensive income for the period - - - - 1,030.3 - 1,030.3
Transactions with owners:
Exercise of options - 1.2 - - - - 1.2
Dividends to owners of the parent 0.2 (0.2) - - (105.0) - (105.0)
Fair value of share-based payments - - - 3.0 - - 3.0
Release on exercise of share options - - - (3.5) 3.5 - -
Settlement and transfer of shares to employees on exercise of share options, net of proceeds - - - - (4.1) 6.8 2.7
Acquisition of own shares - - - - (0.2) (5.7) (5.9)
Total transactions with owners of the parent 0.2 1.0 - (0.5) (105.8) 1.1 (104.0)
At 30 September 2014 80.1 789.3 30.5 5.8 8,447.0 (8.1) 9,344.6
Unaudited statement of cash flows Six months ended
30 September
2014 2013
Notes £m £m
Cash flows from operating activities
Net cash generated from operations 10 210.2 214.9
Interest received 3.4 6.3
Interest paid (97.9) (145.0)
Employer contributions to defined benefit pension scheme (1.4) (2.4)
Capital expenditure on trading properties (22.9) (14.4)
Disposal of trading properties 18.4 4.3
Corporation tax paid - (0.7)
Net cash inflow from operating activities 109.8 63.0
Cash flows from investing activities
Investment property development expenditure (109.0) (78.6)
Acquisition of investment properties and other investments (0.2) (3.5)
Acquisition of subsidiary undertaking (net of cash acquired) 18 (694.3) -
Other investment property related expenditure (23.5) (46.9)
Disposal of investment properties 161.9 172.2
Expenditure on non-property related non-current assets - (1.1)
Disposal of joint ventures - 52.8
Cash contributed to joint ventures 12 (5.7) (1.7)
Loan advances to joint ventures 12 (111.3) (47.5)
Loan repayments by joint ventures 12 7.8 4.7
Distributions from joint ventures 12 10.4 12.6
Net cash (outflow)/ inflow from investing activities (763.9) 63.0
Cash flows from financing activities
Cash received on issue of shares arising from exercise of share options 3.9 3.6
Purchase of own shares and treasury shares (5.9) (9.4)
Increase in investment in subsidiary undertaking (X-Leisure) - (119.7)
Proceeds from new loans (net of finance fees) 15 768.5 204.9
Repayment of loans 15 (6.5) (132.6)
(Increase)/ decrease in monies held in restricted accounts and deposits (1.6) 16.4
Dividends paid to owners of the parent 9 (101.9) (86.7)
Distributions paid by non-wholly owned subsidiaries (1.3) (0.4)
Net cash inflow/ (outflow) from financing activities 655.2 (123.9)
Increase in cash and cash equivalents for the period 1.1 2.1
Cash and cash equivalents at the beginning of the period 20.9 41.7
Cash and cash equivalents at the end of the period 22.0 43.8
Notes to the Financial Statements
1. Basis of preparation
This condensed consolidated interim financial information for the six months ended 30 September 2014 has been prepared on a
going concern basis and in accordance with the Disclosure and Transparency Rules of the Financial Conduct Authority and IAS
34 'Interim Financial Reporting' as adopted by the European Union (EU). In order to satisfy themselves that the Group has
adequate resources to continue in operational existence for the foreseeable future, the Directors have reviewed an 18 month
forecast extracted from the Group's current five year plan, which includes assumptions about future trading performance,
valuation projections and debt requirements. This, together with available market information and experience of the Group's
property portfolio and markets, has given the Directors sufficient confidence to adopt the going concern basis in preparing
the financial statements.
The condensed consolidated interim financial information does not comprise statutory accounts within the meaning of section
434 of the Companies Act 2006. Statutory accounts for the year ended 31 March 2014 were approved by the Board of Directors
on 14 May 2014 and delivered to the Registrar of Companies. The report of the auditor on those accounts was unqualified,
did not contain an emphasis of matter paragraph and did not contain any statement under section 498 of the Companies Act
2006. The condensed consolidated interim financial information has been reviewed, not audited.
The condensed consolidated interim financial information should be read in conjunction with the Group's annual financial
statements for the year ended 31 March 2014, which have been prepared in accordance with International Financial Reporting
Standards as adopted by the EU (IFRSs).
This condensed consolidated interim financial information was approved for issue on 10 November 2014.
Presentation of results
The Group income statement is presented in a columnar format, split into those items that relate to revenue profit and
capital and other items. The total column represents the Group's results presented in accordance with IFRSs; the other
columns provide additional information. This is intended to reflect the way in which the Group's senior management review
the results of the business and to aid reconciliation to the segmental reporting. The Group income statement was presented
in this way for the first time at March 2014. Accordingly the income statement for the period ended 30 September 2013 has
been restated in the current period to be consistent with this presentation.
A number of the financial measures used internally by the Group to measure performance include the results of partly-owned
subsidiaries and joint ventures on a proportionate basis. Measures that are described as being on a proportionate basis
include the Group's share of joint ventures on a line by line basis and are adjusted to exclude the non-owned elements of
our subsidiaries. This is in contrast to the Group's statutory financial statements, where the Group applies equity
accounting to its interest in joint ventures, presenting its interest as one line on the income statement and balance
sheet, and consolidating all subsidiaries at 100% with any non-owned element being adjusted as a non-controlling interest
or redemption liability as appropriate. Measures described as being prepared on a proportionate basis are non-GAAP measures
and therefore not presented in accordance with IFRSs.
Revenue profit is the Group's measure of underlying pre-tax profit, which is used by senior management to assess the
Group's income performance. It excludes all items of a capital nature, such as valuation movements and profits and losses
on the disposal of investment properties, as well as one-off items. A full definition of revenue profit is given in the
glossary. The components of revenue profit are presented on a proportionate basis in note 3. Revenue profit is a non-GAAP
measure.
2. Significant accounting policies
Except as described below, the condensed consolidated interim financial information has been prepared on the basis of the
accounting policies, significant judgements, key assumptions and estimates as set out in the notes to the Group's annual
financial statements for the year ended 31 March 2014. Taxes on income in the interim periods are accrued using the tax
rate that would be applicable to expected total annual earnings.
The following accounting standards or interpretations were effective for the financial year beginning 1 April 2014 and have
been applied in preparing these interim financial statements to the extent they are relevant to the preparation of interim
financial information:
· IFRS 10 'Consolidated Financial Statements'
· IFRS 11 'Joint Arrangements'
· IFRS 12 'Disclosure of Interests in Other Entities'
· IAS 27 (revised) 'Separate Financial Statements'
· IAS 28 (revised) 'Investments in Associates and Joint Ventures'
· IAS 32 (amendment) 'Financial instruments: Presentation' (assets and liability offsetting)
· IAS 36 (amendment) 'Impairment of Assets'
· IAS 39 (amendment) 'Financial Instruments: Recognition and Measurement'
· Amendments to IFRS 10, IFRS 11, IFRS 12 (transition guidance)
IFRS 10 outlines the requirements for the preparation of consolidated financial statements, requiring an entity to
consolidate the results of all investees it is considered to control. Control exists where an entity is exposed to variable
returns and has the ability to affect those returns through its power over the investee. IFRS 11 replaced IAS 31 'Interests
in Joint Ventures' and SIC 13 'Jointly Controlled Entities - Non-monetary Contributions by Venturers'. IFRS 11 defines two
types of joint arrangement (joint operations and joint ventures) and specifies the accounting for each arrangement. Joint
operations must be accounted for by including the owner's share of the assets, liabilities, income and expenses on a line
by line basis. Joint ventures are equity accounted in accordance with IAS 28 (revised). The option previously available
under IAS 31 to account for jointly controlled entities using proportionate consolidation is no longer available. The
adoption of IFRS 10 and IFRS 11 has not resulted in any changes to the Group's financial position or performance.
IFRS 12 sets out the requirements for disclosures relating to an entity's interests in subsidiaries, joint arrangements,
associates and structured entities. As a result of the adoption of IFRS 12 the Group has amended some of its disclosure in
respect of joint arrangements.
None of the other standards above have impacted the Group's reporting.
The following accounting standards and interpretations which are relevant to the Group have been issued, but are not yet
effective:
· IFRS 9 'Financial Instruments'
· IFRS 15 'Revenue from Contracts with Customers'
These standards and interpretations have not been early adopted by the Group. The Group is in the process of assessing the
impact of these new standards and interpretations on its financial reporting.
3. Segmental information
The Group's operations are organised into two operating segments, being the Retail Portfolio and the London Portfolio. The
London Portfolio includes all our London offices and central London shops and the Retail Portfolio includes all our
shopping centres and shops, excluding central London shops, hotels and leisure assets and retail warehouse properties. All
of the Group's operations are in the UK.
Management has determined the Group's operating segments based on the information reviewed by senior management to make
strategic decisions. During the six months, the chief operating decision maker was the Executive Committee ('ExecCom'),
which comprises the Executive Directors, the managing directors of the Retail and London portfolios, the Group General
Counsel and Company Secretary, and the Group HR Director. The information presented to ExecCom includes reports from all
functions of the business as well as strategy, financial planning, succession planning, organisational development and
Group-wide policies.
The Group's primary measure of underlying profit before tax is revenue profit (see note 1). However, segment profit is the
lowest level to which the profit arising from the on-going operations of the Group is analysed between the two segments.
The Group manages its financing structure, with the exception of joint ventures, on a pooled basis and, as such, debt
facilities and interest charges (other than those relating to joint ventures) are not specific to a particular segment.
Unallocated income and expenses ('Group services') are items incurred centrally which are neither directly attributable nor
can be reasonably allocated to individual segments.
The Group's financial performance is not impacted by seasonal fluctuations.
Six months ended 30 September 2014
Retail Portfolio London Portfolio Total
Revenue profit Group£m Joint ventures£m Total£m Group£m Joint ventures£m Total£m Group£m Joint ventures£m Total£m
Rental income 160.3 30.2 190.5 122.1 10.1 132.2 282.4 40.3 322.7
Finance lease interest 0.7 0.1 0.8 4.5 - 4.5 5.2 0.1 5.3
Gross rental income (before rents payable) 161.0 30.3 191.3 126.6 10.1 136.7 287.6 40.4 328.0
Rents payable (1) (4.9) (0.9) (5.8) (0.9) - (0.9) (5.8) (0.9) (6.7)
Gross rental income (after rents payable) 156.1 29.4 185.5 125.7 10.1 135.8 281.8 39.5 321.3
Service charge income 22.8 4.2 27.0 18.0 1.0 19.0 40.8 5.2 46.0
Service charge expense (23.2) (4.6) (27.8) (17.1) (1.2) (18.3) (40.3) (5.8) (46.1)
Net service charge (expense)/ income (0.4) (0.4) (0.8) 0.9 (0.2) 0.7 0.5 (0.6) (0.1)
Other property related income 8.1 0.5 8.6 7.8 0.3 8.1 15.9 0.8 16.7
Direct property expenditure (17.2) (4.1) (21.3) (13.0) (1.2) (14.2) (30.2) (5.3) (35.5)
Net rental income 146.6 25.4 172.0 121.4 9.0 130.4 268.0 34.4 302.4
Indirect property expenditure (12.2) (1.0) (13.2) (9.1) (0.6) (9.7) (21.3) (1.6) (22.9)
Depreciation (0.1) - (0.1) (0.5) - (0.5) (0.6) - (0.6)
Segment profit before interest 134.3 24.4 158.7 111.8 8.4 120.2 246.1 32.8 278.9
Joint venture net interest expense - (5.4) (5.4) - (8.5) (8.5) - (13.9) (13.9)
Segment profit 134.3 19.0 153.3 111.8 (0.1) 111.7 246.1 18.9 265.0
Group services - other income 1.8 - 1.8
- expense (17.6) - (17.6)
Interest income 14.9 - 14.9
Interest expense (94.1) - (94.1)
Revenue profit 151.1 18.9 170.0
1. Included within rents payable is finance lease interest payable of £0.8m and £0.2m for the Retail and London
portfolios, respectively.
Reconciliation of revenue profit to profit before tax Total
Group£m Joint ventures£m Total£m
Revenue profit 151.1 18.9 170.0
Capital and other items
(Loss)/ profit on disposal of trading properties (0.4) 0.2 (0.2)
Profit on disposal of investment properties 36.8 1.4 38.2
Net surplus on revaluation of investment properties 787.3 92.9 880.2
Impairment of trading properties (2) (0.6) (0.4) (1.0)
Fair value movement on interest-rate swaps (8.9) 0.1 (8.8)
Amortisation of bond exchange de-recognition adjustment (10.5) - (10.5)
Revaluation of redemption liabilities (6.3) - (6.3)
Business combination costs (2.7) - (2.7)
Impairment of goodwill (30.6) - (30.6)
Amortisation of intangible asset (0.4) - (0.4)
Adjustment for non-wholly owned subsidiaries (3) 2.9 0.3 3.2
Profit before tax 917.7 113.4 1,031.1
2. Of the impairment of trading properties of £1.0m, an impairment of £0.2m relates to the Retail Portfolio and £0.8m
relates to the London Portfolio.
3. All items in the segment note are presented on a proportionate basis (see note 1). This adjustment represents the
non-owned element of the Group's subsidiaries which is excluded from the numbers presented in the tables above. A
reconciliation from the Group's income statement to the financial information presented in this note is given in table 16
in the Business Analysis section.
Six months ended 30 September 2013
Retail Portfolio London Portfolio Total
Revenue profit Group (1)£m Joint ventures£m Total£m Group (1)£m Joint ventures£m Total£m Group£m Joint ventures£m Total£m
Rental income 151.0 33.0 184.0 124.8 5.8 130.6 275.8 38.8 314.6
Finance lease interest 0.9 0.1 1.0 4.4 - 4.4 5.3 0.1 5.4
Gross rental income (before rents payable) 151.9 33.1 185.0 129.2 5.8 135.0 281.1 38.9 320.0
Rents payable (2) (4.6) (0.8) (5.4) (1.8) - (1.8) (6.4) (0.8) (7.2)
Gross rental income (after rents payable) 147.3 32.3 179.6 127.4 5.8 133.2 274.7 38.1 312.8
Service charge income 20.2 4.4 24.6 18.4 0.1 18.5 38.6 4.5 43.1
Service charge expense (21.4) (5.1) (26.5) (17.8) (0.1) (17.9) (39.2) (5.2) (44.4)
Net service charge expense (1.2) (0.7) (1.9) 0.6 - 0.6 (0.6) (0.7) (1.3)
Other property related income 7.6 0.6 8.2 8.6 0.1 8.7 16.2 0.7 16.9
Direct property expenditure (15.9) (5.4) (21.3) (11.4) (0.3) (11.7) (27.3) (5.7) (33.0)
Net rental income 137.8 26.8 164.6 125.2 5.6 130.8 263.0 32.4 295.4
Indirect property expenditure (11.5) (1.4) (12.9) (7.7) (0.2) (7.9) (19.2) (1.6) (20.8)
Depreciation (0.1) - (0.1) (0.7) - (0.7) (0.8) - (0.8)
Segment profit before interest 126.2 25.4 151.6 116.8 5.4 122.2 243.0 30.8 273.8
Joint venture net interest expense - (7.7) (7.7) - (4.2) (4.2) - (11.9) (11.9)
Segment profit 126.2 17.7 143.9 116.8 1.2 118.0 243.0 18.9 261.9
Group services - other income 1.7 - 1.7
- expense (20.5) - (20.5)
Interest income 12.9 - 12.9
Interest expense (99.5) - (99.5)
Revenue profit 137.6 18.9 156.5
1. The split of net rental income between the London Portfolio and the Retail Portfolio has been restated by £0.7m since
the prior period to reflect the impact of properties transferred from the London Portfolio to the Retail Portfolio during
the current period.
2. Included within rents payable is finance lease interest payable of £1.0m and £0.2m for the Retail and London
portfolios, respectively.
Reconciliation of revenue profit to profit before tax Total
Group£m Joint ventures£m Total£m
Revenue profit 137.6 18.9 156.5
Capital and other items
Profit on disposal of trading properties - 0.3 0.3
Profit on disposal of investment properties 19.7 0.9 20.6
Profit on disposal of investments in joint ventures 4.3 - 4.3
Net surplus on revaluation of investment properties 168.2 41.6 209.8
Impairment of trading properties (3) (0.8) (0.8) (1.6)
Fair value movement on interest-rate swaps 8.4 3.5 11.9
Amortisation of bond exchange de-recognition adjustment (9.6) - (9.6)
Revaluation of redemption liabilities (3.7) - (3.7)
Net gain on business combination 5.0 - 5.0
Joint venture net liabilities adjustment - (0.3) (0.3)
Share of joint venture tax - (0.5) (0.5)
Adjustment for non-wholly owned subsidiaries (4) 4.7 0.5 5.2
Profit before tax 333.8 64.1 397.9
3. Of the impairment of trading properties of £1.6m, £0.2m relates to the Retail Portfolio and £1.4m relates to the
London Portfolio.
4. All items in the segment note are presented on a proportionate basis (see note 1). This adjustment represents the
non-owned element of the Group's subsidiaries which is excluded from the numbers presented in the tables above.
4. Revenue
All revenue is classified within the 'Revenue profit' column of the income statement, with the exception of proceeds on the
sale of trading properties and income arising on long-term development contracts, which are presented in the 'Capital and
other items' column. Also included in the 'Capital and other items' column is the non-owned element of the Group's
subsidiaries which is excluded from revenue profit.
Six months ended Six months ended
30 September 2014 30 September 2013
Revenue Capital and other items Total Revenue Capital and other items Total
profit profit
£m £m £m £m £m £m
Rental income (excluding adjustment for lease incentives) 273.1 1.4 274.5 261.3 8.0 269.3
Adjustment for lease incentives 9.3 0.1 9.4 14.5 0.7 15.2
Rental income 282.4 1.5 283.9 275.8 8.7 284.5
Service charge income 40.8 0.3 41.1 38.6 2.0 40.6
Other property related income 15.9 - 15.9 16.2 (0.7) 15.5
Finance lease interest 5.2 - 5.2 5.3 0.2 5.5
Other income 1.8 - 1.8 1.7 - 1.7
346.1 1.8 347.9 337.6 10.2 347.8
5. Costs
All costs are classified within the 'Revenue profit' column of the income statement, with the exception of the cost of sale
of trading properties, costs arising on long-term development contracts, amortisation of intangible assets and business
combination costs which are presented in the 'Capital and other items' column. Also included in the 'Capital and other
items' column is the non-owned element of the Group's subsidiaries which is excluded from revenue profit.
Six months ended Six months ended
30 September 2014 30 September 2013
Revenue Capital and other items Total Revenue Capital and other items Total
profit profit
£m £m £m £m £m £m
Rents payable 5.8 - 5.8 6.4 0.1 6.5
Service charge expense 40.3 0.3 40.6 39.2 2.2 41.4
Direct property expenditure 30.2 0.2 30.4 27.3 0.7 28.0
Indirect property expenditure (excluding employee costs) 13.1 - 13.1 11.2 0.3 11.5
Employee costs 26.4 - 26.4 29.3 - 29.3
Trading property disposals - 0.4 0.4 - - -
Amortisation of intangible asset - 0.4 0.4 - - -
Business combination costs - 2.7 2.7 - - -
115.8 4.0 119.8 113.4 3.3 116.7
6. Net interest expense Six months ended
30 September
2014 2013
£m £m
Interest expense
Bond and debenture debt (84.9) (88.5)
Bank borrowings (15.2) (17.1)
Other interest payable (0.2) (0.6)
Amortisation of bond exchange de-recognition (10.5) (9.6)
Fair value movement on interest-rate swaps (8.9) -
(119.7) (115.8)
Interest capitalised in relation to properties under development 6.2 3.0
Total interest expense (113.5) (112.8)
Interest income
Short-term deposits - 0.1
Interest received on loan investments 1.4 1.4
Other interest receivable 0.1 0.6
Interest receivable from joint ventures 13.3 10.6
Net pension interest 0.1 0.2
Fair value movement on interest-rate swaps - 12.1
Total interest income 14.9 25.0
Net interest expense (98.6) (87.8)
Included within rents payable (note 3) is finance lease interest payable of £1.0m (2013: £1.2m).
The following table reconciles interest expense and interest income per the Group income statement to interest expense and
interest income included within revenue profit (note 3):
Six months ended
30 September
2014 2013
£m £m
Total interest expense (113.5) (112.8)
Amortisation of bond exchange de-recognition adjustment 10.5 9.6
Fair value movement on interest-rate swaps 8.9 -
Adjustment for non-wholly owned subsidiaries (1) - 3.7
(94.1) (99.5)
Joint venture net interest expense (13.9) (11.9)
Interest expense included in revenue profit (108.0) (111.4)
Total interest income 14.9 25.0
Fair value movement on interest-rate swaps - (8.4)
Adjustment for non-wholly owned subsidiaries (1) - (3.7)
Interest income included in revenue profit 14.9 12.9
1. This represents the non-owned element of the Group's subsidiaries which is excluded from revenue profit.
7. Net assets per share 30 September 31 March
2014 2014
£m £m
Net assets attributable to the owners of the parent 9,344.6 8,418.3
Fair value of interest-rate swaps - Group 12.6 3.7
- Joint ventures - (0.1)
EPRA adjusted net assets 9,357.2 8,421.9
Reverse bond exchange de-recognition adjustment (402.7) (413.2)
Adjusted net assets attributable to the owners of the parent 8,954.5 8,008.7
Reinstate bond exchange de-recognition adjustment 402.7 413.2
Fair value of interest-rate swaps - Group (12.6) (3.7)
- Joint ventures - 0.1
Excess of fair value of debt over book value (note 15) (957.2) (889.1)
EPRA triple net assets 8,387.4 7,529.2
30 September 31 March
2014 2014
million million
Number of ordinary shares in issue 801.0 799.2
Number of treasury shares (10.5) (10.5)
Number of own shares (0.8) (1.1)
Number of ordinary shares - basic net assets per share 789.7 787.6
Dilutive effect of share options 3.4 3.0
Number of ordinary shares - diluted net assets per share 793.1 790.6
30 September 31 March
2014 2014
pence pence
Net assets per share 1,183 1,069
Diluted net assets per share 1,178 1,065
Adjusted net assets per share 1,134 1,017
Adjusted diluted net assets per share 1,129 1,013
EPRA measure - adjusted diluted net assets per share 1,180 1,065
- diluted triple net assets per share 1,058 952
Adjusted net assets per share excludes fair value adjustments on financial instruments used for hedging purposes and the
bond exchange de-recognition adjustment as management consider this better represents the expected future cash flows of the
Group. EPRA measures have been included to assist comparison between European property companies. We believe our measure of
adjusted net assets attributable to the owners of the parent is more indicative of underlying performance.
8. Earnings per share
Earnings per share (EPS) is the amount of post-tax profit attributable to each share.
The Group has also chosen to disclose adjusted earnings per share in order to provide an indication of the Group's
underlying business performance. Adjusted earnings per share exclude items of a capital nature and one-off items. We
believe our measure of adjusted diluted earnings per share is more appropriate than the EPRA measure in the context of our
business.
Six months ended
30 September
2014 2013
£m £m
Profit for the period attributable to the owners of the parent 1,031.2 397.9
Net surplus on revaluation of investment properties (880.2) (209.8)
Profit on disposal of investment properties (38.2) (20.6)
Profit on disposal of investments in joint ventures - (4.3)
Impairment of trading properties 1.0 1.6
Loss/ (profit) on disposal of trading properties 0.2 (0.3)
Fair value movement on interest-rate swaps 8.8 (11.9)
Revaluation of redemption liabilities 6.3 3.7
Business combination costs/ (net gain) 2.7 (5.0)
Impairment of goodwill 30.6 -
Amortisation of intangible asset 0.4 -
Group taxation (0.1) -
Share of joint venture tax - 0.2
Joint venture net liabilities adjustment (1) - 0.3
Adjustment for non-wholly owned subsidiaries (2) (3.2) (5.2)
EPRA adjusted earnings attributable to the owners of the parent 159.5 146.6
Eliminate amortisation of bond exchange de-recognition 10.5 9.6
Adjusted earnings attributable to the owners of the parent 170.0 156.2
1. Joint ventures with net liabilities are carried at zero value in the balance sheet where there is no commitment to
fund the deficit.
2. This adjustment represents the non-owned element of the Group's subsidiaries which is excluded from adjusted
earnings.
Six months ended
30 September
2014 2013
million million
Weighted average number of ordinary shares 800.8 794.4
Weighted average number of treasury shares (10.5) (10.5)
Weighted average number of own shares (1.0) (1.0)
Weighted average number of ordinary shares - basic earnings per share 789.3 782.9
Dilutive effect of share options 3.2 3.4
Weighted average number of ordinary shares - diluted earnings per share 792.5 786.3
Six months ended
30 September
2014 2013
pence pence
Basic earnings per share 130.6 50.8
Diluted earnings per share 130.1 50.6
Adjusted earnings per share 21.5 20.0
Adjusted diluted earnings per share 21.4 19.9
EPRA adjusted earnings per share 20.2 18.7
EPRA adjusted diluted earnings per share 20.1 18.6
9. Dividends Six months ended
30 September
Pence 2014 2013
Ordinary dividends paid Payment date per share £m
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