REG - Land Sec. Group PLC - Preliminary Results to 31 March 2016 <Origin Href="QuoteRef">LAND.L</Origin> - Part 4
17/05/2016 07:06
- Part 4: For the preceding part double click ID:nRSQ4006Yc
Net rental income/(expense) 34.4 (1.2) 14.4 29.8 1.4 0.8 39.8 1.8 41.6
Segment profit/(loss) before interest 33.4 (1.4) 14.2 28.6 1.2 0.8 38.4 1.3 39.7
Interest expense (32.4) (28.6) (7.2) - (6.0) - (37.1) - (37.1)
Capitalised interest - 28.2 0.2 - 5.6 - 17.0 - 17.0
Net interest expense (32.4) (0.4) (7.0) - (0.4) - (20.1) - (20.1)
Revenue profit 1.0 (1.8) 7.2 28.6 0.8 0.8 18.3 1.3 19.6
Capital and other items
Net surplus on revaluation of investment properties 85.8 87.2 55.8 73.0 19.4 19.4 170.3 1.1 171.4
Movement in impairment of trading properties - - - - - - - 4.4 4.4
Impairment of long-term development contracts - - - - - - - 0.1 0.1
Profit/(loss) on disposal of investment properties 1.2 - (0.2) - - 4.2 2.6 1.0 3.6
Adjustment for non-wholly owned subsidiary(2) - - - - - - - 0.1 0.1
Profit before tax 88.0 85.4 62.8 101.6 20.2 24.4 191.2 8.0 199.2
Taxation - - (1.0) - - (0.4) (0.7) (0.1) (0.8)
Post-tax profit 88.0 85.4 61.8 101.6 20.2 24.0 190.5 7.9 198.4
Other comprehensive income - - (0.2) - - - (0.1) - (0.1)
Total comprehensive income 88.0 85.4 61.6 101.6 20.2 24.0 190.4 7.9 198.3
50% 50% 50% 50% 50% 50%
Land Securities' share of total comprehensive income 44.0 42.7 30.8 50.8 10.1 12.0 190.4 7.9 198.3
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.
Year ended 31 March 2015
Joint ventures 20 Fenchurch Street Limited Partnership Nova, Victoria Metro Shopping Fund Limited Partnership Buchanan Partnership(3) St. David's Limited Partnership Westgate Oxford Alliance Partnership Bristol AllianceLimited Partnership(4) The Oriana Limited Partnership Individually material JVs at Other Total
LS's share
Income statement 100% 100% 100% 100% 100% 100% 100% 100% 50% LS share LS share
£m £m £m £m £m £m £m £m £m £m £m
Revenue(1) 37.4 0.2 17.4 11.6 42.8 4.2 25.0 12.4 75.5 8.8 84.3
Gross rental income (after rents payable) 31.0 - 14.0 10.4 33.6 3.2 21.2 12.0 62.7 6.4 69.1
Net rental income/(expense) 28.8 (2.8) 13.0 8.2 27.6 2.8 17.6 11.6 53.4 5.6 59.0
Segment profit/(loss) before interest 27.8 (3.2) 12.2 8.2 26.6 2.2 17.0 11.2 51.0 5.3 56.3
Interest (expense)/income (28.2) (19.2) (6.6) (4.2) (3.6) - - (7.8) (34.8) 0.3 (34.5)
Capitalised interest 0.4 18.8 0.4 - - 0.2 - 0.6 10.2 - 10.2
Net interest (expense)/ income (27.8) (0.4) (6.2) (4.2) (3.6) 0.2 - (7.2) (24.6) 0.3 (24.3)
Revenue profit - (3.6) 6.0 4.0 23.0 2.4 17.0 4.0 26.4 5.6 32.0
Capital and other items
Net surplus on revaluation of investment properties 187.0 80.0 61.8 - 118.4 21.8 - 63.2 266.1 3.0 269.1
Impairment of trading properties - - - - - - - - - (0.3) (0.3)
(Loss)/profit on disposal of trading properties - - - - (0.2) - - - (0.1) 1.8 1.7
Profit on disposal of investment properties - - - - - 0.2 - 42.4 21.3 4.3 25.6
Fair value movement on interest-rate swaps - - - - 0.6 - - (2.2) (0.8) - (0.8)
Impairment of unamortised finance costs - - - - - - - (3.3) (1.6) - (1.6)
Adjustment for non-wholly owned subsidiary(2) - - - - - - - - - 0.1 0.1
Profit before tax 187.0 76.4 67.8 4.0 141.8 24.4 17.0 104.1 311.3 14.5 325.8
Taxation - - - - - - - - - - -
Post-tax profit 187.0 76.4 67.8 4.0 141.8 24.4 17.0 104.1 311.3 14.5 325.8
Other comprehensive income - - (3.4) - - - - - (1.7) - (1.7)
Total comprehensive income 187.0 76.4 64.4 4.0 141.8 24.4 17.0 104.1 309.6 14.5 324.1
50.0% 50.0% 50.0% 50.0% 50.0% 50.0% 50.0% 50.0%
Land Securities' share of total comprehensive income 93.5 38.2 32.2 2.0 70.9 12.2 8.5 52.1 309.6 14.5 324.1
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. On 31 October 2014, the Group acquired the remaining 50% interest in Buchanan Galleries, Glasgow from its joint
venture partner, therefore the table above only represents the Group's share of comprehensive income up to this date.
4. On 30 October 2014, the Group disposed of its interest in the Bristol Alliance Limited Partnership, therefore the
table above only represents the Group's share of comprehensive income up to this date.
31 March 2016
Joint ventures 20 Fenchurch Street Limited Partnership Nova, Victoria Metro Shopping Fund Limited Partnership St. David's Limited Partnership Westgate Oxford Alliance Partnership The Oriana Limited Partnership Individually material Other Total
JVs at
LS's share
Balance sheet 100% 100% 100% 100% 100% 100% 50% LS share LS share
£m £m £m £m £m £m £m £m £m
Investment properties(1) 1,008.0 680.0 378.4 716.0 247.4 158.6 1,594.2 35.7 1,629.9
Non-current assets 1,008.0 680.0 378.4 716.0 247.4 158.6 1,594.2 35.7 1,629.9
Cash and cash equivalents 12.4 12.4 7.2 6.8 9.4 26.2 37.2 6.0 43.2
Other current assets 70.6 258.0 5.8 21.4 1.2 33.6 195.3 39.9 235.2
Current assets 83.0 270.4 13.0 28.2 10.6 59.8 232.5 45.9 278.4
Total assets 1,091.0 950.4 391.4 744.2 258.0 218.4 1,826.7 81.6 1,908.3
Trade and other payables and provisions (109.0) (119.8) (11.2) (12.6) (5.6) (29.4) (143.8) (9.1) (152.9)
Current liabilities (109.0) (119.8) (11.2) (12.6) (5.6) (29.4) (143.8) (9.1) (152.9)
Non-current financial liabilities - - (174.4) - - - (87.2) - (87.2)
Non-current liabilities - - (174.4) - - - (87.2) - (87.2)
Total liabilities (109.0) (119.8) (185.6) (12.6) (5.6) (29.4) (231.0) (9.1) (240.1)
Net assets 982.0 830.6 205.8 731.6 252.4 189.0 1,595.7 72.5 1,668.2
Market value of investment properties(1) 1,075.0 680.0 381.0 732.0 247.4 158.6 1,637.0 35.7 1,672.7
Net (debt)/cash 12.4 12.4 (167.2) 6.8 9.4 26.2 (50.0) 6.0 (44.0)
31 March 2015
Joint ventures 20 Fenchurch Street Limited Partnership Nova, Victoria Metro Shopping Fund Limited Partnership St. David's Limited Partnership Westgate Oxford Alliance Partnership The Oriana Limited Partnership Individually material Other Total
JVs at
LS's share
100% 100% 100% 100% 100% 100% 50% LS share LS share
Balance sheet £m £m £m £m £m £m £m £m £m
Investment properties(1) 916.4 453.2 308.6 641.6 100.0 242.4 1,331.1 71.9 1,403.0
Non-current assets 916.4 453.2 308.6 641.6 100.0 242.4 1,331.1 71.9 1,403.0
Cash and cash equivalents 6.6 4.0 10.2 6.2 8.6 62.2 48.9 9.3 58.2
Other current assets 35.0 184.8 6.0 23.2 1.0 28.2 139.1 32.5 171.6
Current assets 41.6 188.8 16.2 29.4 9.6 90.4 188.0 41.8 229.8
Total assets 958.0 642.0 324.8 671.0 109.6 332.8 1,519.1 113.7 1,632.8
Trade and other payables and provisions (66.0) (97.0) (5.9) (13.2) (2.6) (41.4) (113.0) (4.8) (117.8)
Current liabilities (66.0) (97.0) (5.9) (13.2) (2.6) (41.4) (113.0) (4.8) (117.8)
Non-current financial liabilities - - (147.0) - - - (73.5) (8.0) (81.5)
Non-current liabilities - - (147.0) - - - (73.5) (8.0) (81.5)
Total liabilities (66.0) (97.0) (152.9) (13.2) (2.6) (41.4) (186.5) (12.8) (199.3)
Net assets 892.0 545.0 171.9 657.8 107.0 291.4 1,332.6 100.9 1,433.5
Market value of investment properties(1) 948.2 453.2 310.6 660.0 100.0 242.6 1,357.3 72.2 1,429.5
Net (debt)/cash 6.6 4.0 (136.8) 6.2 8.6 62.2 (24.6) 1.3 (23.3)
1. The difference between the book value and the market value is the amount recognised in respect of lease incentives,
head leases capitalised and properties treated as finance leases, where applicable.
Joint ventures 20 Fenchurch Street Limited Partnership Nova, Victoria Metro Shopping Fund Limited Partnership St. David's Limited Partnership Westgate Oxford Alliance Partnership The Oriana Limited Partnership Individually material JVs at Other(1) Total
LS's share
Net investment 50% 50% 50% 50% 50% 50% 50% LS share LS share
£m £m £m £m £m £m £m £m £m
At 1 April 2014 330.4 181.3 49.7 195.3 30.7 118.5 905.9 537.4 1,443.3
Total comprehensive income 93.5 38.2 32.2 70.9 12.1 52.2 299.1 25.0 324.1
Cash contributed - - 4.9 - 10.7 - 15.6 1.1 16.7
Loan advances 22.0 53.1 - 78.3 - - 153.4 0.5 153.9
Loan repayments - - - (15.6) - (9.7) (25.3) (11.7) (37.0)
Property and other contributions 0.1 - - - - - 0.1 0.1 0.2
Cash distributions - - (0.9) - - (15.3) (16.2) (43.5) (59.7)
Disposal of investments - - - - - - - (408.0) (408.0)
At 31 March 2015 446.0 272.6 85.9 328.9 53.5 145.7 1,332.6 100.9 1,433.5
Total comprehensive income 44.0 42.7 30.8 50.8 10.1 12.0 190.4 7.9 198.3
Cash contributed - - - - 62.6 - 62.6 - 62.6
Loan advances 1.0 100.0 0.7 - - - 101.7 4.2 105.9
Loan repayments - - - (13.9) - - (13.9) - (13.9)
Property and other distributions - - - - - (55.7) (55.7) - (55.7)
Cash distributions - - (14.5) - - (7.5) (22.0) (40.5) (62.5)
At 31 March 2016 491.0 415.3 102.9 365.8 126.2 94.5 1,595.7 72.5 1,668.2
1. In the prior year, the Group acquired the remaining interest in Buchanan Galleries, Glasgow from its joint venture
partner and disposed of its interest in the Bristol Alliance Limited Partnership. The movements in the Group's interest in
these joint ventures have been included within the 'Other' column in the table above.
12. Trading properties and long-term development contracts
Group
Development land and infrastructure Residential Total Long-term development contracts Total
trading properties
£m £m £m £m £m
At 1 April 2014 96.1 86.1 182.2 10.7 192.9
Capital expenditure 6.5 48.2 54.7 0.6 55.3
Capitalised interest 0.5 3.1 3.6 - 3.6
Disposals (20.1) - (20.1) - (20.1)
Movement in impairment 1.9 - 1.9 - 1.9
Impairment of long-term development contracts - - - (11.3) (11.3)
At 31 March 2015 84.9 137.4 222.3 - 222.3
Capital expenditure 9.7 17.3 27.0 - 27.0
Capitalised interest - 2.3 2.3 - 2.3
Disposals (19.2) (120.5) (139.7) - (139.7)
Movement in impairment 12.2 (0.7) 11.5 - 11.5
At 31 March 2016 87.6 35.8 123.4 - 123.4
The cumulative impairment provision at 31 March 2016 in respect of Development land and infrastructure was £79.1m (31 March
2015: £91.3m); and in respect of Residential was £0.7m (31 March 2015: £nil).
13. Capital structure
Group
31 March 2016 31 March 2015
Group Joint ventures Adjustment for non-wholly owned subsidiaries(1) Combined Group Joint Adjustment for non-wholly owned subsidiaries(1) Combined
ventures
£m £m £m £m £m £m £m £m
Property portfolio
Market value of investment properties 12,832.2 1,672.7 (34.4) 14,470.5 12,634.9 1,429.5 (33.0) 14,031.4
Trading properties and long-term contracts 123.4 157.3 - 280.7 222.3 115.1 - 337.4
Non-current assets held for sale - - - - 283.4 - - 283.4
Total property portfolio (a) 12,955.6 1,830.0 (34.4) 14,751.2 13,140.6 1,544.6 (33.0) 14,652.2
Net debt
Borrowings 2,873.0 85.0 - 2,958.0 3,783.7 79.4 (0.2) 3,862.9
Monies held in restricted accounts and deposits (19.7) - - (19.7) (10.4) - - (10.4)
Cash and cash equivalents (24.7) (43.2) - (67.9) (14.3) (58.2) - (72.5)
Fair value of interest-rate swaps 31.9 2.2 - 34.1 37.7 2.1 - 39.8
Fair value of foreign exchange swaps - - - - 3.8 - - 3.8
Net debt (b) 2,860.5 44.0 - 2,904.5 3,800.5 23.3 (0.2) 3,823.6
Less: Fair value of interest-rate swaps (31.9) (2.2) - (34.1) (37.7) (2.1) - (39.8)
Less: Fair value of foreign exchange swaps - - - - (3.8) - - (3.8)
Reverse bond exchange de-recognition (note 14) 368.3 - - 368.3 391.7 - - 391.7
Adjusted net debt (c) 3,196.9 41.8 - 3,238.7 4,150.7 21.2 (0.2) 4,171.7
Adjusted total equity
Total equity (d) 11,698.9 - - 11,698.9 10,606.3 - - 10,606.3
Fair value of interest-rate swaps 31.9 2.2 - 34.1 37.7 2.1 - 39.8
Fair value of foreign exchange swaps - - - - 3.8 - - 3.8
Reverse bond exchange de-recognition (note 14) (368.3) - - (368.3) (391.7) - - (391.7)
Adjusted total equity (e) 11,362.5 2.2 - 11,364.7 10,256.1 2.1 - 10,258.2
Gearing (b/d) 24.5% 24.8% 35.8% 36.1%
Adjusted gearing (c/e) 28.1% 28.5% 40.5% 40.7%
Group LTV (c/a) 24.7% 22.0% 31.6% 28.5%
Security Group LTV 23.4% 31.5%
Weighted average cost of debt 4.9% 4.9% 4.5% 4.5%
1. This represents the interest in X-Leisure which we do not own, but which is consolidated in the Group numbers.
14. Borrowings
Group
2016 2015
Secured/ Fixed/ Effective Nominal/ notional value£m Fair Book value£m Nominal/ notional value£m Fair Book value£m
unsecured floating interest rate% value£m value£m
Current borrowings
Sterling
5.253% QAG Bond Secured Fixed 5.3 16.2 19.4 16.2 14.6 17.5 14.6
Commercial paper
Sterling Unsecured Floating LIBOR + margin 2.5 2.5 2.5 30.1 30.1 30.1
Euro Unsecured Floating LIBOR + margin - - - 146.0 146.0 146.0
Total current borrowings 18.7 21.9 18.7 190.7 193.6 190.7
Non-current borrowings
Sterling
4.875% MTN due 2019 Secured Fixed 5.0 - - - 400.0 436.0 398.7
5.425% MTN due 2022 Secured Fixed 5.5 255.3 291.4 254.9 255.3 298.3 254.9
4.875% MTN due 2025 Secured Fixed 4.9 300.0 351.3 298.3 300.0 357.2 298.0
5.391% MTN due 2026 Secured Fixed 5.4 210.7 253.9 210.1 210.7 260.1 210.1
5.391% MTN due 2027 Secured Fixed 5.4 608.3 748.8 606.5 608.3 767.1 606.2
5.376% MTN due 2029 Secured Fixed 5.4 317.5 397.5 316.4 317.6 410.1 316.2
5.396% MTN due 2032 Secured Fixed 5.4 322.6 410.0 321.0 322.6 426.5 321.0
5.125% MTN due 2036 Secured Fixed 5.1 500.0 624.1 498.7 500.0 653.5 498.7
Bond exchange de-recognition adjustment (368.3) (391.7)
2,514.4 3,077.0 2,137.6 2,914.5 3,608.8 2,512.1
5.253% QAG Bond Secured Fixed 5.3 273.2 327.1 273.2 289.4 347.0 289.4
Syndicated bank debt Secured Floating LIBOR + margin 430.0 430.0 430.0 180.0 180.0 180.0
Bilateral facilities Secured Floating LIBOR + margin - - - 595.0 595.0 595.0
Amounts payable under finance leases Unsecured Fixed 7.2 13.5 17.8 13.5 16.5 20.7 16.5
Total non-current borrowings 3,231.1 3,851.9 2,854.3 3,995.4 4,751.5 3,593.0
Total borrowings 3,249.8 3,873.8 2,873.0 4,186.1 4,945.1 3,783.7
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