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£m
For the year ended 31 March 2013:
Third interim 17 April 2013 7.4 57.8
Final 19 July 2013 7.6 59.4
For the year ended 31 March 2014:
Third interim 11 April 2014 7.6 59.9
Final 22 July 2014 7.9 62.3
Gross dividends 122.2 117.2
Dividends settled in shares (17.2) (30.6)
Dividends in statement of changes in equity 105.0 86.6
Timing difference relating to payment of withholding tax (3.1) 0.1
Dividends in the statement of cash flows 101.9 86.7
The Board has proposed a second interim dividend of 7.9p per Ordinary share (2013: 7.6p) of which 6.0p will be paid as a
PID and 1.9p as an ordinary dividend (non-PID). The second interim dividend will result in a further estimated distribution
of £62.4m (2013: £59.7m). It will be paid on 8 January 2015 to shareholders registered at the close of business on 5
December 2014. The Company paid a first interim dividend of 7.9p per Ordinary share, entirely as a PID, representing £62.4m
in total (2013: 7.6p or £59.6m), on 10 October 2014.
The Company operated a scrip dividend scheme during part of the period and the scrip dividend amount of £17.2m (2013:
£30.6m) comprised a wholly non-PID distribution. A dividend reinvestment plan (DRIP) has been introduced in place of the
scrip dividend scheme.
10. Net cash generated from operations Six months ended
30 September
2014 2013
Reconciliation of operating profit to net cash generated from operations: £m £m
Operating profit 1,053.2 420.3
Adjustments for:
Depreciation 1.4 1.6
Amortisation of intangible asset 0.4 -
Profit on disposal of investment properties (36.8) (19.7)
Loss on disposal of trading properties 0.4 -
Profit on disposal of investments in joint ventures - (4.3)
Net surplus on revaluation of investment properties (788.9) (166.0)
Impairment of trading properties 0.6 0.8
Share-based payment charge 3.0 2.8
Defined benefit pension scheme charge 0.5 0.6
233.8 236.1
Changes in working capital:
Increase in long-term development contracts (0.4) (0.5)
Increase in receivables (11.6) (42.3)
(Decrease)/ increase in payables and provisions (11.6) 21.6
Net cash generated from operations 210.2 214.9
11. Investment properties Six months ended Six months ended Six months ended
30 September 2014 31 March 30 September
2014 2013
£m £m £m
Net book value at the beginning of the period 9,847.7 9,759.5 9,651.9
Acquisitions - - 1.6
Acquired in business combination 635.8 - -
Capital expenditure 139.6 106.0 116.0
Capitalised interest 4.5 3.9 1.6
Disposals (126.1) (464.7) (172.6)
Net movement in finance leases (11.1) 2.4 0.8
Transfer to trading properties - - (5.8)
Valuation surplus 788.9 440.6 166.0
Net book value at the end of the period 11,279.3 9,847.7 9,759.5
The fair value of investment properties at 30 September 2014 was determined by the Group's external valuers; Knight Frank,
CBRE and JLL. The valuations are in line with RICS standards and were arrived at by reference to market evidence of
transactions for similar properties. The valuations performed by the independent valuers are reviewed internally by senior
management and relevant people within the London and Retail business units. This includes discussions of the assumptions
used by the external valuers, as well as a review of the resulting valuations. Discussions of the valuation process and
results are held between senior management, the audit committee and the external valuers on a half-yearly basis.
The market value of the Group's investment properties, as determined by the Group's external valuers, differs from the net
book value presented in the balance sheet due to the Group presenting lease incentives, tenant finance leases and head
leases separately. The following table reconciles the net book value of the investment properties to the market value.
30 September 2014 31 March
2014
£m £m
Net book value 11,279.3 9,847.7
Plus: tenant lease incentives 254.0 251.9
Less: head leases capitalised (19.0) (30.1)
Plus: properties treated as finance leases 233.3 219.3
Market value - Group 11,747.6 10,288.8
- Adjustment for non-wholly owned subsidiaries (1) (30.0) (28.4)
- Joint ventures (note 12) 1,456.4 1,599.0
- Combined portfolio 13,174.0 11,859.4
1. This represents the interest in X-Leisure which we do not own, but is consolidated in the Group numbers.
12. Joint arrangements
The Group's joint arrangements are described below:
Joint ventures Percentage owned & Business Year end date (1) Joint venture partners
voting rights segment
Held at 30 September 2014
20 Fenchurch Street Limited Partnership 50.0% London Portfolio 31 March Canary Wharf Group plc
Nova, Victoria (2) 50.0% London Portfolio 31 March Canada Pension Plan Investment Board
Metro Shopping Fund Limited Partnership 50.0% Retail Portfolio 31 March Delancey Real Estate Partners Limited
Buchanan Partnership (3) 50.0% Retail Portfolio 31 December The Henderson UK Shopping Centre Fund
St. David's Limited Partnership 50.0% Retail Portfolio 31 December Intu Properties plc
Bristol Alliance Limited Partnership (4) 50.0% Retail Portfolio 31 December Hammerson plc
The Oriana Limited Partnership 50.0% London Portfolio 31 March Frogmore Real Estate Partners Limited Partnership
Harvest (5) (6) 50.0% Retail Portfolio 31 March J Sainsbury plc
Westgate Oxford Alliance Limited Partnership (6) 50.0% Retail Portfolio 31 March The Crown Estate Commissioners
The Martineau Galleries Limited Partnership (6) 33.3% Retail Portfolio 31 December Hammerson plcPearl Group Limited
The Ebbsfleet Limited Partnership (6) 50.0% London Portfolio 31 March Lafarge Cement UK PLC
Millshaw Property Co. Limited (6) 50.0% Retail Portfolio 31 March Evans Property Group Limited
Countryside Land Securities (Springhead) Limited (6) 50.0% London Portfolio 30 September Countryside Properties PLC
West India Quay Unit Trust (6) 50.0% Retail Portfolio 31 December Schroder Exempt Property Unit Trust
Disposed of in the year ended 31 March 2014
The Scottish Retail Property Limited Partnership (6) 50.0% Retail Portfolio 31 March The British Land Company PLC
Hungate (York) Regeneration Limited (6) 33.3% Retail Portfolio 30 June Crosby Lend Lease PLCEvans Property Group Limited
The Empress State Limited Partnership (6) 50.0% London Portfolio 31 December Capital & Counties Properties PLC
Joint operations Ownership interest Business Joint operation partners
segment
Bluewater, Kent 30.0% Retail Portfolio M&G Real Estate and GICLend Lease Retail PartnershipHermes and Aberdeen Asset Management
Thomas More Square, E1 50.0% London Portfolio The Cadillac Fairview Corporation Limited
Princesshay, Exeter (3) 50.0% Retail Portfolio The Crown Estate Commissioners
1. The year end date shown is the accounting reference date of the joint venture. In all cases the Group's accounting is
performed using financial information for the Group's own reporting period and reporting date.
2. Nova, Victoria includes the Victoria Circle Limited Partnership and Nova Residential Limited Partnership.
3. On 31 October 2014, the Group simultaneously disposed of its interest in Princesshay, Exeter and acquired the
remaining 50% interest in the Buchanan Partnership. See note 17.
4. Transferred to 'Non-current asset held for sale' at 30 September 2014. On 30 October 2014, the Group disposed of its
interest in the Bristol Alliance Limited Partnership. See note 17.
5. Harvest includes The Harvest Limited Partnership and Harvest Two Limited Partnership.
6. Included within Other in subsequent tables.
All of the Group's joint arrangements have their principal place of business in the United Kingdom. All of the Group's
joint arrangements own and operate investment property with the exception of The Ebbsfleet Limited Partnership and
Countryside Land Securities (Springhead) Limited, which hold development land as trading properties. The 20 Fenchurch
Street Limited Partnership, Nova, Victoria and The Oriana Limited Partnership are also engaged in the development of
investment properties. The activities of all the Group's joint arrangements are therefore strategically important to the
business activities of the Group.
All joint ventures are registered in England and Wales with the exception of The Scottish Retail Property Limited
Partnership, Metro Shopping Fund Limited Partnership and West India Quay Unit Trust which are registered in Jersey.
Six months ended 30 September 2014
Joint ventures 20 Fenchurch Street Limited Partnership Nova, Victoria Metro Shopping Fund Limited Partnership Buchanan Partnership St. David's Limited Partnership Bristol AllianceLimited Partnership The Oriana Limited Partnership Individually material JVs at Other Total
LS's share
Income statement 100% 100% 100% 100% 100% 100% 100% 50% LS share LS share
£m £m £m £m £m £m £m £m £m £m
Revenue (1) 16.4 - 8.8 9.8 21.4 21.8 6.4 42.3 5.4 47.7
Gross rental income (after rents payable) 14.2 - 6.8 8.6 16.4 18.4 6.2 35.3 4.2 39.5
Net rental income/ (expense) 13.8 (2.0) 6.6 7.0 14.0 16.0 6.0 30.7 3.7 34.4
Segment profit/ (loss) before interest 13.2 (2.2) 6.2 7.0 13.4 15.4 5.8 29.4 3.4 32.8
Interest expense (13.2) (0.2) (3.4) (4.2) (3.6) - (3.4) (14.0) 0.1 (13.9)
Revenue profit - (2.4) 2.8 2.8 9.8 15.4 2.4 15.4 3.5 18.9
Capital and other items
Profit on disposal of trading properties - - - - 0.4 - - 0.2 - 0.2
Profit on disposal of investment properties - - - - - - - - 1.4 1.4
Impairment of trading properties - - - - (0.4) - - (0.2) (0.2) (0.4)
Net surplus/ (deficit) on revaluation of investment properties 61.8 25.8 23.4 (1.4) 37.0 - 31.2 88.9 4.0 92.9
Fair value movement on interest-rate swaps - - - - 0.6 - (0.4) 0.1 - 0.1
Adjustment for non-wholly owned - - - - - - - - 0.3 0.3
subsidiary (2)
Profit before tax 61.8 23.4 26.2 1.4 47.4 15.4 33.2 104.4 9.0 113.4
Income tax - - - - - - - - - -
Post-tax profit 61.8 23.4 26.2 1.4 47.4 15.4 33.2 104.4 9.0 113.4
Other comprehensive income - - (0.4) - - - - (0.2) - (0.2)
Total comprehensive income 61.8 23.4 25.8 1.4 47.4 15.4 33.2 104.2 9.0 113.2
50.0% 50.0% 50.0% 50.0% 50.0% 50.0% 50.0%
Land Securities' share of total comprehensive income 30.9 11.7 12.9 0.7 23.7 7.7 16.6 104.2 9.0 113.2
1. Revenue includes gross rental income (before rents payable), service charge income, other property related income,
trading properties disposal proceeds and income from long-term development contracts.
2. The adjustment represents the non-owned element of a Group subsidiary's investment in a joint venture which is
excluded from revenue profit and the 'Net surplus/ (deficit) on revaluation of investment properties' shown in this note.
Six months ended 30 September 2013
Joint ventures 20 Fenchurch Street Limited Partnership Nova, Victoria Metro Shopping Fund Limited Partnership Buchanan Partnership St. David's Limited Partnership Bristol AllianceLimited Partnership The Oriana Limited Partnership Individually material JVs at Other Total
LS's share
Income statement 100% 100% 100% 100% 100% 100% 100% 50% LS share LS share
£m £m £m £m £m £m £m £m £m £m
Revenue (1) 0.2 - 8.4 9.6 21.0 19.8 6.8 32.9 14.8 47.7
Gross rental income (after rents payable) - - 7.0 8.6 16.2 16.8 6.6 27.6 10.5 38.1
Net rental income/ (expense) 0.2 (0.4) 6.2 7.2 13.2 13.8 6.4 23.3 9.1 32.4
Segment profit/ (loss) before interest 0.2 (0.4) 5.8 7.2 12.6 13.4 6.0 22.4 8.4 30.8
Interest expense (3.8) (0.2) (3.4) (4.2) (4.4) - (3.8) (9.9) (2.0) (11.9)
Revenue profit (3.6) (0.6) 2.4 3.0 8.2 13.4 2.2 12.5 6.4 18.9
Capital and other items
Profit on disposal of trading properties - - - - 0.4 - - 0.2 0.1 0.3
Profit on disposal of investment properties - - - - - - - - 0.9 0.9
Impairment of trading properties - - - - (0.4) - - (0.2) (0.6) (0.8)
Net surplus/ (deficit) on revaluation of investment properties 42.6 11.4 4.0 - 4.0 (5.8) 34.6 45.4 (3.8) 41.6
Fair value movement on interest-rate swaps - - - - 1.6 - 2.4 2.0 1.5 3.5
Adjustment for non-wholly owned - - - - - - - - 0.5 0.5
subsidiary (2)
Profit before tax 39.0 10.8 6.4 3.0 13.8 7.6 39.2 59.9 5.0 64.9
Income tax - - (0.4) - (0.4) - - (0.4) (0.1) (0.5)
39.0 10.8 6.0 3.0 13.4 7.6 39.2 59.5 4.9 64.4
Net liabilities adjustment (3) - - - - - - - - (0.3) (0.3)
Post-tax profit 39.0 10.8 6.0 3.0 13.4 7.6 39.2 59.5 4.6 64.1
Other comprehensive income - - 5.0 - - - - 2.5 0.4 2.9
Total comprehensive income 39.0 10.8 11.0 3.0 13.4 7.6 39.2 62.0 5.0 67.0
50.0% 50.0% 50.0% 50.0% 50.0% 50.0% 50.0%
Land Securities' share of total comprehensive income 19.5 5.4 5.5 1.5 6.7 3.8 19.6 62.0 5.0 67.0
1. Revenue includes gross rental income (before rents payable), service charge income, other property related income,
trading properties disposal proceeds and income from long-term development contracts.
2. The adjustment represents the non-owned element of a Group subsidiary's investment in a joint venture which is
excluded from revenue profit and the 'Net surplus/ (deficit) on revaluation of investment properties' shown in this note.
3. Joint ventures with net liabilities are carried at zero value in the balance sheet where there is no commitment to
fund the deficit. Where this is the case distributions are included in the consolidated income statement for the period.
Joint ventures 20 Fenchurch Street Limited Partnership Nova, Victoria Metro Shopping Fund Limited Partnership Buchanan Partnership St. David's Limited Partnership Bristol AllianceLimited Partnership The Oriana Limited Partnership Individually material JVs at Other Total
LS's share
Balance sheet at 30 September 2014 100% 100% 100% 100% 100% 100% 100% 50% LS share LS share
£m £m £m £m £m £m £m £m £m £m
Investment properties (1) 774.0 336.6 263.2 268.6 560.0 - 425.2 1,313.8 121.9 1,435.7
Non-current assets 774.0 336.6 263.2 268.6 560.0 - 425.2 1,313.8 121.9 1,435.7
Cash and cash equivalents 4.6 5.0 4.6 3.8 7.8 - 12.0 18.9 12.4 31.3
Other current assets 20.4 150.4 6.8 3.2 24.6 - 16.2 110.8 66.8 177.6
Current assets 25.0 155.4 11.4 7.0 32.4 - 28.2 129.7 79.2 208.9
Total assets 799.0 492.0 274.6 275.6 592.4 - 453.4 1,443.5 201.1 1,644.6
Trade and other payables and provisions (51.8) (46.9) (6.0) (4.8) (13.4) - (16.0) (69.5) (11.1) (80.6)
Current liabilities (51.8) (46.9) (6.0) (4.8) (13.4) - (16.0) (69.5) (11.1) (80.6)
Trade and other payables and provisions - (18.1) - - - - - (9.0) - (9.0)
Non-current financial liabilities - - (143.4) - - - (167.2) (155.3) (8.7) (164.0)
Non-current liabilities - (18.1) (143.4) - - - (167.2) (164.3) (8.7) (173.0)
Total liabilities (51.8) (65.0) (149.4) (4.8) (13.4) - (183.2) (233.8) (19.8) (253.6)
Net assets 747.2 427.0 125.2 270.8 579.0 - 270.2 1,209.7 181.3 1,391.0
Market value of investment properties (1) 789.0 336.6 265.0 270.0 580.0 - 431.0 1,335.8 120.6 1,456.4
Net (debt)/ cash 4.6 5.0 (138.8) 3.8 7.8 - (155.2) (136.4) 3.7 (132.7)
Balance sheet at 31 March 2014
Investment properties (1) 686.8 265.2 235.4 268.0 523.2 509.2 392.0 1,439.9 131.5 1,571.4
Non-current assets 686.8 265.2 235.4 268.0 523.2 509.2 392.0 1,439.9 131.5 1,571.4
Cash and cash equivalents 3.8 13.2 8.4 1.2 12.2 4.8 12.8 28.2 8.4 36.6
Other current assets 1.0 131.6 4.8 5.2 27.0 34.2 16.0 109.9 43.3 153.2
Current assets 4.8 144.8 13.2 6.4 39.2 39.0 28.8 138.1 51.7 189.8
Total assets 691.6 410.0 248.6 274.4 562.4 548.2 420.8 1,578.0 183.2 1,761.2
Trade and other payables and provisions (30.8) (34.6) (6.4) (4.2) (14.2) (13.6) (17.0) (60.4) (5.2) (65.6)
Current liabilities (30.8) (34.6) (6.4) (4.2) (14.2) (13.6) (17.0) (60.4) (5.2) (65.6)
Trade and other payables and provisions - (12.8) - - - - - (6.4) (1.1) (7.5)
Non-current financial liabilities - - (142.8) - (157.6) (5.2) (166.8) (236.2) (8.6) (244.8)
Non-current liabilities - (12.8) (142.8) - (157.6) (5.2) (166.8) (242.6) (9.7) (252.3)
Total liabilities (30.8) (47.4) (149.2) (4.2) (171.8) (18.8) (183.8) (303.0) (14.9) (317.9)
Net assets 660.8 362.6 99.4 270.2 390.6 529.4 237.0 1,275.0 168.3 1,443.3
Market value of investment properties (1) 687.6 265.2 237.2 270.0 544.4 534.6 398.0 1,468.5 130.5 1,599.0
Net (debt)/ cash 3.8 13.2 (134.4) 1.2 (145.2) (0.2) (153.8) (207.7) (0.5) (208.2)
1. The difference between the book value and the market value is the amount included in prepayments in respect of lease
incentives, head leases capitalised and properties treated as finance leases.
Joint ventures 20 Fenchurch Street Limited Partnership Nova, Victoria Metro Shopping Fund Limited Partnership Buchanan Partnership St. David's Limited Partnership Bristol AllianceLimited Partnership The Oriana Limited Partnership Individually material JVs at Other Total
LS's share
Net investment 50% 50% 50% 50% 50% 50% 50% 50% LS share LS share
£m £m £m £m £m £m £m £m £m £m
At 1 April 2013 175.6 126.5 37.0 138.2 186.1 268.7 82.1 1,014.2 286.8 1,301.0
Total comprehensive income 19.5 5.4 5.5 1.5 6.7 3.8 19.6 62.0 5.0 67.0
Cash contributed - - - 0.1 - - - 0.1 1.6 1.7
Property and other contributions 0.1 - - - - - - 0.1 - 0.1
Distributions - - - (1.9) - (6.2) - (8.1) (4.5) (12.6)
Loan advances 25.8 17.8 - - - - - 43.6 3.9 47.5
Loan repayments - - - - (4.7) - - (4.7) - (4.7)
Disposals - - - - - - - - (48.5) (48.5)
At 30 September 2013 221.0 149.7 42.5 137.9 188.1 266.3 101.7 1,107.2 244.3 1,351.5
Total comprehensive income 74.7 8.7 8.0 (1.2) 12.5 8.3 16.8 127.8 4.2 132.0
Cash contributed - - - 1.2 - - - 1.2 1.8 3.0
Distributions - - (0.8) (2.8) - (9.9) - (13.5) (1.3) (14.8)
Loan advances 34.7 22.9 - - - - - 57.6 12.0 69.6
Loan repayments - - - - (5.3) - - (5.3) (0.9) (6.2)
Disposals - - - - - - - - (91.8) (91.8)
At 31 March 2014 330.4 181.3 49.7 135.1 195.3 264.7 118.5 1,275.0 168.3 1,443.3
Total comprehensive income 30.9 11.7 12.9 0.7 23.7 7.7 16.6 104.2 9.0 113.2
Cash contributed - - - 1.1 - - - 1.1 4.6 5.7
Distributions - - - (1.5) - (8.1) - (9.6) (0.8) (10.4)
Loan advances 12.3 20.5 - - 78.3 - - 111.1 0.2 111.3
Loan repayments - - - - (7.8) - - (7.8) - (7.8)
Transfer to non-current asset held for sale - - - - - (264.3) - (264.3) - (264.3)
At 30 September 2014 373.6 213.5 62.6 135.4 289.5 - 135.1 1,209.7 181.3 1,391.0
13. Trading properties and long-term development contracts
Development land and infrastructure Residential Total Long-term development contracts Total
trading properties
£m £m £m £m £m
At 1 April 2013 86.2 57.2 143.4 9.4 152.8
Capital expenditure 2.1 13.0 15.1 - 15.1
Capitalised interest 0.4 1.0 1.4 - 1.4
Transfer from investment properties - 5.8 5.8 - 5.8
Impairment provision (0.8) - (0.8) - (0.8)
Contract costs deferred - - - 0.5 0.5
At 30 September 2013 87.9 77.0 164.9 9.9 174.8
Capital expenditure 1.6 17.5 19.1 - 19.1
Capitalised interest 0.5 0.9 1.4 - 1.4
Disposals - (9.3) (9.3) -
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