REG - Land Sec. Group PLC - Preliminary results to 31 March 2015 <Origin Href="QuoteRef">LAND.L</Origin> - Part 5
15/07/2015 18:13
- Part 5: For the preceding part double click ID:nRSS5689Nd
transactions in accordance with IFRS 3 'Business Combinations' and therefore
applied purchase accounting. Further details on each acquisition is below:
Bluewater, Kent
On 24 June 2014, the Group acquired 100% of the ordinary share capital of Greenhithe Holdings Limited (GHL) for a cash
consideration of £694.3m from Lend Lease Bluewater Limited. The Group incurred £2.7m of business combination costs in
connection with the transaction.
GHL owned, through its subsidiary undertakings, a 30% interest in Bluewater, a shopping centre in Kent, full asset
management rights for the centre and 110 acres of surrounding land.
On acquisition, the Group recognised an intangible asset of £30.0m, representing the estimated fair value of the management
rights for the centre, together with a corresponding deferred tax liability of £6.0m. The intangible asset is being
amortised over a period of 20 years.
Goodwill of £35.5m arose on the transaction, primarily representing the difference between the value of the investment
property attributed by our external valuers, and the consideration paid. The difference is largely due to prospective
purchasers' costs, which are deducted by the external valuer in determining the investment property value, as well as a
lower value being attributed to the 110 acres of surrounding land, where management felt it was appropriate to pay a
premium for the land on the basis of its long-term potential and its adjacency to the Group's land at Ebbsfleet. The Group
has considered whether this element of the goodwill is recoverable, and has concluded that it is not. The purchasers' costs
could potentially be recovered if a future sale was structured through a corporate transaction, but the Group does not
consider there to be sufficient certainty to deem this element of the goodwill to be recoverable. Similarly, the Group's
longer term plans for the outer land and the potential synergies with the Group's existing holdings are at an early stage,
making the recoverable amount uncertain at this time. £29.5m of goodwill has therefore been written off to the income
statement in the year.
The remaining goodwill of £6.0m represents goodwill arising on the deferred tax liability. The deferred tax liability will
be released to the income statement as the intangible asset is amortised, and the corresponding element of the goodwill
will be tested for impairment. At 31 March 2015, the carrying value of both the deferred tax liability and the goodwill was
£5.8m.
Buchanan Galleries, Glasgow
On 31 October 2014, the Group acquired the remaining 50% interest in Buchanan Galleries from its joint venture partner, The
Henderson UK Shopping Centre Fund, for total consideration of £137.1m. The consideration consisted of a net cash
consideration of £9.2m as well as the Group's interests in certain investment properties within its Exeter joint operation,
in particular Princesshay, together with associated working capital for a total acquisition date fair value of £127.9m.
Buchanan Galleries currently totals 600,000 sq ft of prime retail space and the Group has planning consent for a leisure
and retail extension which would extend the centre to 1.2m sq ft of retail, leisure and restaurant space.
The fair value of the consideration paid was less than the value of the identifiable assets and, as a result, a gain of
£2.2m has been recognised in the income statement on acquisition within net gain on business combinations. In addition,
£6.1m of transaction related costs are included within costs. The gain on business combination of £2.2m reflects a £0.6m
gain on bargain purchase and a £1.6m gain on revaluation of our existing interest at the date of acquisition.
The fair value of the assets and liabilities recognised at the date of acquisition is set out in the table below:
Bluewater Buchanan Galleries Total
30% 100%
£m £m £m
Assets
Investment property 635.8 275.0 910.8
Intangible asset 30.0 - 30.0
Cash 2.8 1.4 4.2
Trade receivables (Note 1) 6.7 0.7 7.4
Other receivables 1.0 - 1.0
Total assets 676.3 277.1 953.4
Liabilities
Trade and other payables (4.7) (0.1) (4.8)
Accruals and deferred income (6.8) (1.6) (8.4)
Deferred tax (6.0) - (6.0)
Total liabilities (17.5) (1.7) (19.2)
Net assets 658.8 275.4 934.2
Fair value of consideration paid 694.3 137.1 831.4
Fair value of previously held interest - 136.1 136.1
694.3 273.2 967.5
Goodwill/(gain on business combination) recognised 35.5 (2.2) 33.3
Goodwill impairment 29.5 - 29.5
Net gain on business combination - (2.2) (2.2)
Business combination costs 2.7 6.1 8.8
Total loss on business combination recognised in the income statement 32.2 3.9 36.1
Note 1:
Gross contractual amount for trade receivables 7.0 0.7 7.7
Less amounts expected to be irrecoverable (0.3) - (0.3)
Trade receivables 6.7 0.7 7.4
Pro forma information
Since the date of acquisition, the acquisitions have contributed the following to the revenue of the Group and the profit
after tax for the year:
Bluewater Buchanan Galleries Total
£m £m £m
Revenue 27.2 9.3 36.5
Profit after tax 12.8 1.9 14.7
If the acquisitions had been made on 1 April 2014, revenue and profit after tax would have been higher by £14.0m and £7.9m
respectively.
In calculating the pro forma information, the results of the acquired entities for the period before acquisition have been
adjusted to reflect Land Securities' accounting policies and any fair value adjustments made on acquisition. The
information is provided for illustrative purposes only and is not necessarily indicative of the results of the combined
Group that would have occurred had the purchases actually been made at the beginning of the financial year, or indicative
of future results of the combined Group.
Intangible asset and deferred tax liability
The following table shows the movement in intangible assets, together with the associated deferred tax liability:
Goodwill Other intangible Total Deferred
asset intangible tax liability(1)
asset
£m £m £m £m
At 1 April 2014 - - - -
Arising on business combination - Bluewater 35.5 30.0 65.5 (6.0)
Impairment of goodwill arising on acquisition (29.5) - (29.5) -
Amortisation of intangible asset - (1.1) (1.1) -
Impairment of goodwill on unwind of deferred tax liability (0.2) - (0.2) -
Unwind of deferred tax liability - - - 0.2
At 31 March 2015 5.8 28.9 34.7 (5.8)
1. This represents the deferred tax liability arising on business combinations only.
18. Non-current assets held for sale
On 23 March 2015, the Group exchanged contracts for the sale of Times Square, EC4 for consideration of £284.6m. The risks
and returns of ownership had not fully transferred to the buyer as at 31 March 2015. As a result the property was
classified as a Non-current asset held for sale with a carrying value of £283.4m.
19. Events after the reporting period
There are no reportable events after the reporting period.
Business analysis
Table 7: EPRA performance measures
31 March 2015
Definition for EPRA measure Notes Land SecuritiesMeasure EPRAMeasure
Adjusted earnings Recurring earnings from core operational activity (1) 7 £329.1m £296.3m
Adjusted earnings per share Adjusted earnings per weighted number of ordinary shares(1) 7 41.7p 37.5p
Adjusted diluted earnings per share Adjusted diluted earnings per weighted number of ordinary 7 41.5p 37.4p
shares (1)
Adjusted net assets Net asset value adjusted to exclude fair value movements on interest-rate swaps (2) 6 £10,254.4m £10,646.1m
Adjusted diluted net assets per share Adjusted diluted net assets per share(2) 6 1,293p 1,342p
Triple net assets Adjusted net assets amended to include the fair value of financial instruments and debt 6 £9,439.2m £9,439.2m
Diluted triple net assets per share Diluted triple net assets per share 6 1,190p 1,190p
Net initial yield (NIY) Annualised rental income less non-recoverable costs as a % of market value plus assumed purchasers' costs (3) 4.35% 4.38%
Topped-up NIY NIY adjusted for rent free periods(3) 4.63% 4.63%
Voids/vacancy rate ERV of vacant space as a % of ERV of Combined Portfolio excluding the development programme (4) 3.60% 3.60%
Cost ratio Total costs as a percentage of gross rental income (including direct vacancy costs) (5) 20.2% 20.6%
Total costs as a percentage of gross rental income (excluding direct vacancy costs) (5) n/a 18.9%
Refer to notes 6, 7 and table 12 for further analysis.
1. EPRA adjusted earnings and EPRA adjusted earnings per share include the effect of bond exchange de-recognition
charges of £21.5m.
2. EPRA adjusted net assets and adjusted diluted net assets per share include the bond exchange de-recognition
adjustment of £391.7m.
3. Our NIY and Topped-up NIY relate to the Combined Portfolio, excluding properties in the development programme that
have not yet reached practical completion, and are calculated by our external valuers. EPRA NIY and EPRA Topped-up NIY
calculations are consistent with ours, but exclude the full development programme.
4. Our measure reflects voids in our like-for-like portfolio only. The EPRA measure reflects voids in the Combined
Portfolio excluding only the development programme.
5. The EPRA cost ratio is calculated based on gross rental income after rents payable, whereas our measure is based on
gross rental income before rents payable. We do not calculate a cost ratio excluding direct vacancy costs as we do not
consider this to be helpful. For further information on our costs and costs ratio see table 12.
Table 8: Top 12 occupiers at 31 March 2015
% of Group rent(1)
Accor 5.0
Central Government (including Queen Anne's Gate, SW1) (2) 4.7
Deloitte 2.6
Primark 2.1
Boots 1.5
Bank of New York Mellon 1.4
Taylor Wessing 1.4
Next 1.4
Arcadia Group 1.2
Sainsbury's 1.2
Cineworld 1.2
K & L Gates 1.1
24.8
1. On a proportionate basis.
2. Rent from Central Government excluding Queen Anne's Gate, SW1 is 0.1%.
Table 9: Development pipeline and trading property development schemes at 31 March 2015
Development pipeline
Developments after practical completion
62 Buckingham Gate, SW1 Office 100 259,700 68 377 18.6 May 2013 178 178
Retail 15,600 100
20 Fenchurch Street, EC3 Office 50 673,900 92 474 21.8 Dec 2014 229 239
Retail 14,200 100
Developments approved or in progress
1 & 2 New Ludgate, EC4 Office 100 355,300 66 437 23.1 Apr 2015 232 254
Retail 26,200 30
The Zig Zag Building, SW1 (1) Office 100 188,700 32 290 16.0 Jul 2015 158 177
Retail 44,500 52
20 Eastbourne Terrace, W2 Office 100 92,700 - 63 5.3 Apr 2016 43 67
1 New Street Square, EC4 Office 100 274,800 100 177 15.5 Jun 2016 73 180
Retail 100
Nova, Victoria, SW1 - Phase I Office 50 480,300 - 216 20.0 Jul 2016 139 248
Retail 79,900 24
Oriana,W1 - Phase II Retail 50 72,300 64 68 3.3 Nov 2016 28 37
Westgate, Oxford Retail 50 804,450 29 50 13.9 Oct 2017 39 220
Residential 37,018 -
Proposed developments
Buchanan Galleries, Glasgow (2) Retail 100 1,170,000 n/a n/a n/a 2018 n/a n/a
Developments let and transferred or sold
123 Victoria Street, SW1 (3) Office 100 200,100 100 n/a(4) 14.2 Aug 2012 154 154
Retail 28,200 100
Bishop Centre, Taplow Retail 100 101,500 100 n/a(4) 2.7 Jul 2014 38 38
Bishop Centre, Taplow
Retail
100
101,500
100
n/a(4)
2.7
Jul 2014
38
38
1. Includes retail within Kings Gate, SW1.
2. Figures provided are for the scheme as a whole (development and existing scheme).
3. Office refurbishment only. Figures provided are for the property as a whole including the retail element.
4. Once properties are transferred from the development pipeline, we do not report on their individual value.
Where the property is not 100% owned, floor areas and letting status shown above represent the full scheme whereas all
other figures represent our proportionate share. Letting % is measured by ERV and shows letting status at 31 March 2015.
Trading property development schemes are excluded from the development pipeline.
Total development cost
Refer to glossary for definition. Of the properties in the development pipeline at 31 March 2015, the only properties on
which interest was capitalised on the land cost were Westgate, Oxford and Nova, Victoria, SW1 - Phase I. The figures for
total development costs include expenditure on the residential elements of Westgate, Oxford (£10.9m).
Net income/ERV
Net income/ERV represents headline annual rent on let units plus ERV at 31 March 2015 on unlet units, both after rents
payable.
Trading property development schemes
Kings Gate, SW1 Residential 100 108,700 100 85 Jul 2015 138 161
Nova, Victoria, SW1 - Phase I Residential 50 166,400 170 78 Apr 2016 92 141
Oriana, W1 - Phase II Residential 50 20,200 18 - Nov 2016 9 16
Oriana, W1 - Phase II
Residential
50
20,200
18
-
Nov 2016
9
16
Table 10: Combined Portfolio value by location at 31 March 2015
Shopping centres and shops Retail warehouses Offices Hotels, leisure, residential Total
& other
% % % % %
Central, inner and outer London 13.5 0.2 45.1 3.7 62.5
South East and East 9.2 4.3 - 0.7 14.2
Midlands - 0.9 - 0.8 1.7
Wales and South West 2.4 0.5 - 4.3 7.2
North, North West, Yorkshire and Humberside 7.2 2.1 0.1 1.2 10.6
Scotland and Northern Ireland 2.8 0.8 - 0.2 3.8
Total 35.1 8.8 45.2 10.9 100.0
% figures calculated by reference to the Combined Portfolio value of £14.0bn.
Table 11: Performance relative to IPD
Total property returns - year ended 31 March 2015
Land Securities IPD(1)
% %
Retail - Shopping centres 19.8 15.2
- Retail warehouses 8.5 (2) 13.2
Central London shops 23.8 28.9
Central London offices 28.4 22.6
Total portfolio 23.0 (3) 17.1
1. IPD Quarterly Universe
2. Including supermarkets
3. Including leisure, hotel portfolio and other
Table 12: Cost analysis
Analysis of costs by nature of spend
Revenue profit Costs analysed Managed operations Tenant Void related costs Other direct Development expenditure Asset
default property management,
costs administration
and
compliance
Year ended 31 March 2015 £m £m £m £m £m £m £m £m
Gross rental income (after rents payable) 640.8
Net service charge expense (2.2) 2.2
Direct property expenditure (39.1) 39.1
Total direct expenses (41.3) 41.3 8.6 7.2 11.1 7.8 6.6
Net rental income 599.5
Indirect costs (51.3) 51.3
Unallocated expenses (net) (39.4) 39.4
Total indirect expenses (90.7) 90.7 24.3 66.4
Net interest - Group (155.4)
Net interest - joint ventures (24.3)
Revenue profit 329.1
Total costs - year ended 31 March 2015 132.0 8.6 7.2 11.1 7.8 30.9 66.4
Total costs % (1) 20.2% 1.3% 1.1% 1.8% 1.2% 4.7% 10.2%
Total costs - year ended 31 March 2014 121.1 9.7 5.3 11.7 3.9 25.9 64.6
Total costs % (1) 18.8% 1.5% 0.8% 1.8% 0.6% 4.0% 10.0%
1. All percentages represent costs divided by gross rental income including finance leases, before rents payable.
Table 13: 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 2015 31 March 2014 Surplus/ (deficit) Surplus/ (deficit) 31 March 2015 31 March 2014 31 March 2015 31 March 2015 31 March 2014 31 March 2015 31 March 2014
£m £m £m % £m £m £m £m £m £m £m
Retail Portfolio
Shopping centres and shops 2,025.7 1,687.6 327.6 19.5% 116.1 112.3 109.8 104.2 106.4 109.4 109.6
Retail warehouses and food stores 1,130.8 1,087.7 24.1 2.2% 66.7 68.2 67.7 66.7 64.0 66.9 67.5
Leisure and hotels 797.2 677.5 118.1 17.5% 46.8 45.8 47.2 46.9 45.2 46.2 44.3
Other 32.3 26.0 5.8 22.3% 2.1 2.5 2.0 1.6 2.2 3.1 2.9
Total Retail 3,986.0 3,478.8 475.6 13.7% 231.7 228.8 226.7 219.4 217.8 225.6 224.3
London Portfolio
West End 1,826.3 1,550.6 262.7 17.5% 82.3 80.9 82.3 81.5 76.3 85.5 74.6
City 735.3 633.4 107.0 18.1% 26.7 26.5 27.5 30.9 29.5 34.8 33.0
Mid-town 1,101.4 941.7 158.5 19.5% 41.6 42.4 41.8 43.9 41.9 51.8 49.7
Inner London 388.6 316.2 44.6 20.4% 19.4 20.2 18.8 18.3 20.3 23.9 20.8
Total London offices 4,051.6 3,441.9 572.8 18.3% 170.0 170.0 170.4 174.6 168.0 196.0 178.1
Central London Shops 1,094.7 935.2 153.2 16.4% 44.1 38.8 43.4 42.4 40.3 52.7 51.3
Other 70.4 58.3 11.5 19.5% 2.1 1.5 0.7 0.7 0.6 0.7 0.8
Total London 5,216.7 4,435.4 737.5 17.9% 216.2 210.3 214.5 217.7 208.9 249.4 230.2
Like-for-like portfolio(10) 9,202.7 7,914.2 1,213.1 16.0% 447.9 439.1 441.2 437.1 426.7 475.0 454.5
Proposed developments(3) 290.0 135.0 2.9 1.0% 13.7 9.0 16.7 16.7 8.6 17.2 8.6
Completed developments(3) 962.1 835.2 114.5 14.2% 42.3 35.6 42.3 41.8 28.1 48.2 48.5
Acquisitions(11) 1,425.1 586.1 81.2 6.2% 69.2 34.9 82.8 79.5 43.4 84.6 41.8
Sales and restructured interests(12) - 887.3 - - 39.7 105.7 - - 68.2 - 60.1
Development programme(13) 2,151.5 1,249.1 594.4 38.7% 28.1 7.8 31.4 8.8 1.8 128.0 122.7
Combined Portfolio 14,031.4 11,606.9 2,006.1 17.4% 640.9 632.1 614.4 583.9 576.8 753.0 736.2
Non-current asset held for sale(14) n/a 252.5 30.8 12.2% 12.8 12.9
Properties treated as finance leases (10.4) (10.9)
Combined Portfolio 14,031.4 11,859.4 2,036.9 17.3% 643.3 634.1
Total portfolio analysis
31 March 2015 31 March 2014 Surplus/ (deficit) Surplus/ (deficit) 31 March 2015 31 March 2014 31 March 2015 31 March 2015 31 March 2014 31 March 2015 31 March 2014
£m £m £m % £m £m £m £m £m £m £m
Retail Portfolio
Shopping centres and shops 3,564.8 3,020.4 411.6 13.3% 212.6 222.9 183.6 177.7 193.6 188.6 198.8
Retail warehouses and food stores 1,230.8 1,210.4 26.9 2.3% 72.2 71.6 72.5 70.8 68.3 72.2 75.1
Leisure and hotels 1,440.3 1,261.9 173.7 14.0% 91.3 80.8 94.2 92.4 88.8 91.1 86.2
Other 32.3 36.8 5.8 22.3% 2.3 4.2 2.0 1.6 2.6 3.1 3.5
Total Retail 6,268.2 5,529.5 618.0 11.1% 378.4 379.5 352.3 342.5 353.3 355.0 363.6
London Portfolio
West End 2,922.3 2,312.8 470.0 19.8% 101.8 94.0 102.0 96.6 80.5 152.2 140.8
City 1,649.3 1,171.9 379.9 31.3% 43.4 29.2 46.1 30.9 31.8 78.3 76.0
Mid-town 1,276.6 989.6 257.9 29.1% 41.6 42.4 41.8 43.7 41.9 68.4 65.6
Inner London 483.3 316.2 50.4 16.5% 21.2 33.5 24.4 23.5 20.3 32.3 20.8
Total London offices 6,331.5 4,790.5 1,158.2 24.2% 208.0 199.1 214.3 194.7 174.5 331.2 303.2
Central London Shops 1,361.3 1,220.1 218.5 19.2% 52.4 52.0 47.0 45.8 48.4 65.9 68.4
Other 70.4 66.8 11.4 16.8% 2.1 1.5 0.8 0.9 0.6 0.9 1.0
Total London 7,763.2 6,077.4 1,388.1 23.2% 262.5 252.6 262.1 241.4 223.5 398.0 372.6
Combined Portfolio 14,031.4 11,606.9 2,006.1 17.4% 640.9 632.1 614.4 583.9 576.8 753.0 736.2
Non-current asset held for sale(14) n/a 252.5 30.8 12.2% 12.8 12.9
Properties treated as finance leases (10.4) (10.9)
Combined Portfolio 14,031.4 11,859.4 2,036.9 17.3% 643.3 634.1
Represented by:
Investment portfolio 12,603.5 10,260.4 1,767.8 16.2% 572.7 559.2 567.1 552.3 508.0 672.2 627.1
Share of joint ventures 1,427.9 1,599.0 269.1 23.6% 70.6 74.9 47.3 31.6 68.8 80.8 109.1
Combined Portfolio 14,031.4 11,859.4 2,036.9 17.3% 643.3 634.1 614.4 583.9 576.8 753.0 736.2
Like-for-like segmental analysis
Gross estimated Net initial yield(8) Equivalent yield(9) Voids (by ERV)(3)
rental value(7)
31 March 2015 31 March 2014 31 March 2015 31 March 2014 31 March 2015 31 March 2014 31 March 2015 31 March 2014
£m £m % % % % % %
Retail Portfolio
Shopping centres and shops 118.1 117.8 4.6% 5.3% 4.8% 5.6% 3.2% 2.7%
Retail warehouses and food stores 67.6 68.2 5.4% 5.4% 5.5% 5.7% 2.5% 0.6%
Leisure and hotels 46.2 44.3 5.4% 6.2% 5.5% 6.3% 0.6% 0.5%
Other 3.1 2.9 3.4% 6.8% 8.2% 9.7% 19.4% 20.7%
Total Retail Portfolio 235.0 233.2 5.0% 5.5% 5.2% 5.8% 2.7% 1.9%
London Portfolio
West End 85.5 74.5 4.2% 4.7% 4.5% 5.0% 3.5% 2.0%
City 35.6 33.6 3.9% 4.4% 4.4% 4.8% - -
Mid-town 53.0 50.8 3.7% 4.0% 4.3% 4.9% 7.2% 3.3%
Inner London 23.9 20.8 4.0% 5.6% 5.3% 5.9% 7.1% 1.4%
Total London offices 198.0 179.7 4.0% 4.5% 4.5% 5.0% 4.3% 1.9%
Central London shops 53.1 51.8 3.6% 3.9% 4.4% 5.0% 4.5% 0.6%
Other 0.7 0.8 0.7% 0.7% 0.8% 0.9% - -
Total London Portfolio 251.8 232.3 3.9% 4.4% 4.4% 4.9% 4.3% 1.6%
Like-for-like portfolio(10) 486.8 465.5 4.3% 4.9% 4.8% 5.3% 3.6% 1.8%
Proposed developments(3) 17.2 8.6 4.7% 5.4% n/a n/a n/a n/a
Completed developments(3) 48.2 48.5 4.1% 2.8% 4.7% 5.3% n/a n/a
Acquisitions(11) 84.7 41.8 4.7% 6.3% 5.4% n/a n/a n/a
Sales and restructured interests(12) - 62.8 0.0% 6.1% n/a n/a n/a n/a
Development programme(13) 128.1 122.8 0.2% 0.1% 4.4% 5.1% n/a n/a
Combined Portfolio(13) 765.0 750.0 3.7% 4.4% 4.8% n/a n/a n/a
Total portfolio analysis Notes:
31 March 2015 31 March 2014 31 March 2015 31 March 2014 £m £m % % Retail Portfolio Shopping centres and shops 197.2 209.5 4.4% 5.4% Retail warehouses and food stores 72.9 75.8 5.2% 5.1% Leisure and hotels 91.2 86.3 5.6% 6.3% Other 3.1 3.5 3.4% 5.0% Total Retail Portfolio 364.4 375.1 4.8% 5.5% London Portfolio West End 152.3 140.9 3.0% 3.2% City 79.2 76.6 1.8% 3.0% Mid-town 69.7 66.7 3.2% 3.8% Inner London 32.3 20.8 3.9% 5.6% Total London offices 333.5 305.0 2.8% 3.4% Central London shops 66.2 68.9 3.1% 3.6% Other 0.9 1.0 0.7% 0.6% Total London Portfolio 400.6 374.9 2.8% 3.4% Combined Portfolio(13) 765.0 750.0 3.7% 4.4% Represented by: Investment portfolio 683.2 638.9 3.9% 4.6% Share of joint ventures 81.8 111.1 1.8% 3.3% Combined Portfolio(13) 765.0 750.0 3.7% 4.4% 1. The market value figures are determined by the Group's external valuers.2. The valuation movement is stated after adjusting for the effect of SIC 15 under IFRS.3. Refer to glossary for definition.4. Annualised rental income is annual 'rental
income' (as defined in the glossary) at the balance sheet date, except that car park and commercialisation income are included on a net basis (after deduction for operational outgoings). Annualised rental income includes temporary lettings.5. Annualised
net rent is annual cash rent, after the deduction of ground rents, as at the balance sheet date. It is calculated with the same methodology as annualised rental income but is stated net of ground rent and before SIC15 adjustments.6. Net estimated rental
value is gross estimated rental value, as defined in the glossary, after deducting expected ground rents.7. Gross estimated rental value (ERV) - refer to glossary for definition. The figure for proposed developments relates to the existing buildings and
not the schemes proposed.8. Net initial yield - refer to glossary for definition. This calculation includes all properties including those sites with no income.9. Equivalent yield - refer to glossary for definition. Proposed developments are excluded
from the calculation of equivalent yield on the Combined Portfolio.10. The like-for-like portfolio - refer to glossary for definition. Capital expenditure on refurbishments, acquisitions of head leases and similar capital expenditure has been allocated to
the like-for-like portfolio in preparing this table.11. Includes all properties acquired since 1 April 2013.12. Includes all properties sold since 1 April 2013.13. The development programme - refer to glossary for definition. Net initial yield figures are
only calculated for properties in the development programme that have reached practical completion.14. As at 31 March 2015, the non-current asset held for sale has been excluded from the Combined Portfolio and shown separately on the balance sheet as a
'Non-current asset held for sale'.
31 March 2015
31 March 2014
31 March 2015
31 March 2014
£m
£m
%
%
Retail Portfolio
Shopping centres and shops
197.2
209.5
4.4%
5.4%
Retail warehouses and food stores
72.9
75.8
5.2%
5.1%
Leisure and hotels
91.2
86.3
5.6%
6.3%
Other
3.1
3.5
3.4%
5.0%
Total Retail Portfolio
364.4
375.1
4.8%
5.5%
London Portfolio
West End
152.3
140.9
3.0%
3.2%
City
79.2
76.6
1.8%
3.0%
Mid-town
69.7
66.7
3.2%
3.8%
Inner London
32.3
20.8
3.9%
5.6%
Total London offices
333.5
305.0
2.8%
3.4%
Central London shops
66.2
68.9
3.1%
3.6%
Other
0.9
1.0
0.7%
0.6%
Total London Portfolio
400.6
374.9
2.8%
3.4%
Combined Portfolio(13)
765.0
750.0
3.7%
4.4%
Represented by:
Investment portfolio
683.2
638.9
3.9%
4.6%
Share of joint ventures
81.8
111.1
1.8%
3.3%
Combined Portfolio(13)
765.0
750.0
3.7%
4.4%
1. The market value figures are determined by the Group's external valuers.2. The valuation movement is stated after
adjusting for the effect of SIC 15 under IFRS.3. Refer to glossary for definition.4. Annualised rental income is annual
'rental income' (as defined in the glossary) at the balance sheet date, except that car park and commercialisation income
are included on a net basis (after deduction for operational outgoings). Annualised rental income includes temporary
lettings.5. Annualised net rent is annual cash rent, after the deduction of ground rents, as at the balance sheet date.
It is calculated with the same methodology as annualised rental income but is stated net of ground rent and before SIC15
adjustments.6. Net estimated rental value is gross estimated rental value, as defined in the glossary, after deducting
expected ground rents.7. Gross estimated rental value (ERV) - refer to glossary for definition. The figure for proposed
developments relates to the existing buildings and not the schemes proposed.8. Net initial yield - refer to glossary for
definition. This calculation includes all properties including those sites with no income.9. Equivalent yield - refer to
glossary for definition. Proposed developments are excluded from the calculation of equivalent yield on the Combined
Portfolio.10. The like-for-like portfolio - refer to glossary for definition. Capital expenditure on refurbishments,
acquisitions of head leases and similar capital expenditure has been allocated to the like-for-like portfolio in preparing
this table.11. Includes all properties acquired since 1 April 2013.12. Includes all properties sold since 1 April 2013.13.
The development programme - refer to glossary for definition. Net initial yield figures are only calculated for properties
in the development programme that have reached practical completion.14. As at 31 March 2015, the non-current asset held for
sale has been excluded from the Combined Portfolio and shown separately on the balance sheet
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