9th Feb 2010 07:00
|
Consolidated Income Statement for the nine month period ended 31 December 2009 |
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|
Year ended 31 March 2009 |
|
|
Nine months ended 31 December 2009 |
Nine months ended 31 December 2008 |
||||||
|
|
|
|||||||||
|
Audited |
|
|
Unaudited |
Unaudited |
||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
Underlying |
Capital |
|
|
|
Underlying |
Capital |
|
Underlying |
Capital |
|
|
pre tax* |
and other |
Total |
|
|
pre tax* |
and other |
Total |
pre tax* |
and other |
Total |
|
£m |
£m |
£m |
|
Note |
£m |
£m |
£m |
£m |
£m |
£m |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
554 |
|
554 |
Gross rental and related income |
2 |
327 |
|
327 |
420 |
|
420 |
|
|
|
|
|
|
|
|
|
|
|
|
|
453 |
|
453 |
Net rental and related income |
2 |
279 |
|
279 |
366 |
|
366 |
|
|
|
|
|
|
|
|
|
|
|
|
|
18 |
|
18 |
Fees and other income |
2 |
7 |
|
7 |
13 |
|
13 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(14) |
(14) |
Amortisation of intangible assets |
|
|
(11) |
(11) |
|
(11) |
(11) |
|
|
|
|
|
|
|
|
|
|
|
|
|
55 |
(822) |
(767) |
Funds and joint ventures (see also below) |
|
52 |
189 |
241 |
38 |
(605) |
(567) |
|
|
|
|
|
|
|
|
|
|
|
|
|
(51) |
|
(51) |
Administrative expenses |
|
(41) |
|
(41) |
(45) |
|
(45) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(3,241) |
(3,241) |
Net valuation movement (includes profits & losses on disposals) |
2 |
|
133 |
133 |
|
(2,491) |
(2,491) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net financing costs |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
52 |
|
52 |
- financing income |
|
20 |
|
20 |
19 |
|
19 |
|
(259) |
(119) |
(378) |
- financing charges |
|
(130) |
|
(130) |
(184) |
(41) |
(225) |
|
|
|
|
|
|
|
|
|
|
|
|
|
(207) |
(119) |
(326) |
|
|
(110) |
|
(110) |
(165) |
(41) |
(206) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
268 |
(4,196) |
(3,928) |
Profit (loss) on ordinary activities before taxation |
|
187 |
311 |
498 |
207 |
(3,148) |
(2,941) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Taxation |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(2) |
(2) |
- current tax income (expense) |
2 |
|
22 |
22 |
|
(1) |
(1) |
|
|
49 |
49 |
- deferred tax (expense) income |
2 |
|
(9) |
(9) |
|
43 |
43 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
47 |
47 |
|
2 |
|
13 |
13 |
|
42 |
42 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(3,881) |
Profit (loss) for the period after taxation attributable to shareholders of the Company |
|
|
|
511 |
|
|
(2,899) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(616)p |
Earnings (loss) per share: basic |
1 |
|
|
60p |
|
|
(472)p** |
|
|
|
(614)p |
diluted |
1 |
|
|
60p |
|
|
(470)p** |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Share of results of funds and joint ventures |
|
|
|
|
|
|
|
|
55 |
|
55 |
Underlying profit before taxation |
|
52 |
|
52 |
38 |
|
38 |
|
|
(833) |
(833) |
Net valuation movement (includes profits & losses on disposals) |
|
|
202 |
202 |
|
(616) |
(616) |
|
|
|
|
Non-recurring items |
|
|
(9) |
(9) |
|
|
|
|
|
2 |
2 |
Current tax (expense) income |
|
|
(4) |
(4) |
|
4 |
4 |
|
|
9 |
9 |
Deferred tax income |
|
|
|
|
|
7 |
7 |
|
55 |
(822) |
(767) |
|
4 |
52 |
189 |
241 |
38 |
(605) |
(567) |
|
|
|
|
|
|
|
|
|
|
|
|
|
* |
As defined in note 1 |
|
|
|
|
|
|
|
||
|
** |
As restated for the Rights Issue |
|
|
|
|
|
|
|
||
|
Consolidated Income Statement for the three month period ended 31 December 2009 |
|
|
|
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|
|
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|
|
|
|
|
|
|
|
|
|
|
Year ended 31 March 2009 |
|
|
Three months ended 31 December 2009 |
Three months ended 31 December 2008 |
|||||||
|
|
|
||||||||||
|
Audited |
|
|
Unaudited |
Unaudited |
|||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Underlying |
Capital |
|
|
|
Underlying |
Capital |
|
Underlying |
Capital |
|
|
|
pre tax* |
and other |
Total |
|
|
pre tax* |
and other |
Total |
pre tax* |
and other |
Total |
|
|
£m |
£m |
£m |
|
Note |
£m |
£m |
£m |
£m |
£m |
£m |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
554 |
|
554 |
Gross rental and related income |
2 |
87 |
|
87 |
137 |
|
137 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
453 |
|
453 |
Net rental and related income |
2 |
71 |
|
71 |
118 |
|
118 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
18 |
|
18 |
Fees and other income |
2 |
1 |
|
1 |
4 |
|
4 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(14) |
(14) |
Amortisation of intangible assets |
|
|
(4) |
(4) |
|
(4) |
(4) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
55 |
(822) |
(767) |
Funds and joint ventures (see also below) |
|
20 |
236 |
256 |
11 |
(348) |
(337) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(51) |
|
(51) |
Administrative expenses |
|
(12) |
|
(12) |
(15) |
|
(15) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(3,241) |
(3,241) |
Net valuation movement (includes profits & losses on disposals) |
2 |
|
321 |
321 |
|
(1,284) |
(1,284) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net financing costs |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
52 |
|
52 |
- financing income |
|
2 |
|
2 |
9 |
|
9 |
|
|
(259) |
(119) |
(378) |
- financing charges |
|
(24) |
|
(24) |
(64) |
(41) |
(105) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(207) |
(119) |
(326) |
|
|
(22) |
|
(22) |
(55) |
(41) |
(96) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
268 |
(4,196) |
(3,928) |
Profit (loss) on ordinary activities before taxation |
|
58 |
553 |
611 |
63 |
(1,677) |
(1,614) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Taxation |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(2) |
(2) |
- current tax income (expense) |
2 |
|
19 |
19 |
|
3 |
3 |
|
|
|
49 |
49 |
- deferred tax (expense) income |
2 |
|
(7) |
(7) |
|
24 |
24 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
47 |
47 |
|
2 |
|
12 |
12 |
|
27 |
27 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(3,881) |
Profit (loss) for the period after taxation attributable to shareholders of the Company |
|
|
|
623 |
|
|
(1,587) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(616)p |
Earnings (loss) per share: basic |
1 |
|
|
72p |
|
|
(258)p** |
|
|
|
|
(614)p |
diluted |
1 |
|
|
72p |
|
|
(257)p** |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Share of results of funds and joint ventures |
|
|
|
|
|
|
|
|
|
55 |
|
55 |
Underlying profit before taxation |
|
20 |
|
20 |
11 |
|
11 |
|
|
|
(833) |
(833) |
Net valuation movement (includes profits & losses on disposals) |
|
|
246 |
246 |
|
(351) |
(351) |
|
|
|
|
|
Non-recurring items |
|
|
(9) |
(9) |
|
|
|
|
|
|
2 |
2 |
Current tax income |
|
|
|
|
|
|
|
|
|
|
9 |
9 |
Deferred tax (expense) income |
|
|
(1) |
(1) |
|
3 |
3 |
|
|
55 |
(822) |
(767) |
|
4 |
20 |
236 |
256 |
11 |
(348) |
(337) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
* |
As defined in note 1 |
|
|
|
|
|
|
|
|||
|
** |
As restated for the Rights Issue |
|
|
|
|
|
|
|
|||
|
Consolidated Statement of Comprehensive Income |
|
|
|
|
|
||
|
for the period ended 31 December 2009 |
|
|
|
|
|
||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year ended |
|
|
Three months ended |
Nine months ended |
||
|
|
31 March |
|
|
31 December |
31 December |
||
|
|
2009 |
|
|
2009 |
2008 |
2009 |
2008 |
|
|
Audited |
|
|
Unaudited |
Unaudited |
Unaudited |
Unaudited |
|
|
£m |
|
Note |
£m |
£m |
£m |
£m |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(3,881) |
Profit (loss) for the period after taxation |
|
623 |
(1,587) |
511 |
(2,899) |
|
|
|
|
|
|
|
|
|
|
|
|
Other comprehensive income: |
|
|
|
|
|
|
|
|
Valuation movements |
|
|
|
|
|
|
|
(44) |
- on development properties |
2 |
|
|
|
(44) |
|
|
(3) |
- on owner-occupied property |
2 |
|
|
|
(3) |
|
|
(88) |
- on other investments |
2 |
|
(15) |
|
(88) |
|
|
|
|
|
|
|
|
|
|
|
(135) |
|
|
|
(15) |
|
(135) |
|
|
|
Gains (losses) on cash flow hedges |
|
|
|
|
|
|
|
(182) |
- Group |
|
2 |
(226) |
(3) |
(210) |
|
|
(46) |
- Funds and joint ventures |
|
7 |
(51) |
10 |
(50) |
|
|
|
|
|
|
|
|
|
|
|
|
Transferred to the income statement |
|
|
|
|
|
|
|
|
(cash flow hedges) |
|
|
|
|
|
|
|
(30) |
- foreign currency derivatives |
|
|
(19) |
12 |
(28) |
|
|
109 |
- interest rate derivatives |
|
7 |
38 |
21 |
27 |
|
|
|
|
|
|
|
|
|
|
|
79 |
|
|
7 |
19 |
33 |
(1) |
|
|
|
|
|
|
|
|
|
|
|
5 |
Exchange differences on translation of foreign operations |
1 |
8 |
|
8 |
|
|
|
|
|
|
|
|
|
|
|
|
(2) |
Actuarial loss on pension scheme |
|
|
(1) |
|
(2) |
|
|
|
|
|
|
|
|
|
|
|
24 |
Tax on items taken directly to equity |
|
|
6 |
|
24 |
|
|
|
|
|
|
|
|
|
|
|
(257) |
Other comprehensive income for the period |
17 |
(260) |
40 |
(366) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(4,138) |
Total comprehensive income for the period |
640 |
(1,847) |
551 |
(3,265) |
|
|
|
|
|
|
|
|
|
|
|
Consolidated Statement of Changes in Equity |
|
|
|
|||
|
for the period ended 31 December 2009 |
|
|
|
|
||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Share |
|
Share |
Other |
Retained |
|
|
|
capital |
* |
premium |
reserves |
earnings |
Total |
|
|
£m |
|
£m |
£m |
£m |
£m |
|
|
|
|
|
|
|
|
|
Nine month movements in Equity |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance at 1 April 2009 |
217 |
|
1,244 |
(139) |
1,887 |
3,209 |
|
|
|
|
|
|
|
|
|
Total comprehensive income for the period |
|
|
|
75 |
476 |
551 |
|
Dividends payable in the nine month period |
|
|
|
|
(159) |
(159) |
|
Adjustment for scrip dividend element |
2 |
|
(2) |
|
44 |
44 |
|
Balance at 31 December 2009 |
219 |
|
1,242 |
(64) |
2,248 |
3,645 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance at 1 April 2008 |
131 |
|
1,269 |
335 |
5,055 |
6,790 |
|
|
|
|
|
|
|
|
|
Total comprehensive income for the period |
|
|
|
(583) |
(2,682) |
(3,265) |
|
Share issues |
|
|
2 |
|
|
2 |
|
Adjustment for share and share option awards |
|
|
|
|
3 |
3 |
|
Dividends payable in the nine month period |
|
|
|
|
(138) |
(138) |
|
Balance at 31 December 2008 |
131 |
|
1,271 |
(248) |
2,238 |
3,392 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three month movements in Equity |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance at 1 October 2009 |
218 |
|
1,243 |
(116) |
1,696 |
3,041 |
|
|
|
|
|
|
|
|
|
Total comprehensive income for the period |
|
|
|
52 |
588 |
640 |
|
Adjustment for share and share option awards |
|
|
|
|
(1) |
(1) |
|
Dividends payable in the three month period |
|
|
|
|
(56) |
(56) |
|
Adjustment for scrip dividend element |
1 |
|
(1) |
|
21 |
21 |
|
Balance at 31 December 2009 |
219 |
|
1,242 |
(64) |
2,248 |
3,645 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance at 1 October 2008 |
131 |
|
1,271 |
11 |
3,876 |
5,289 |
|
|
|
|
|
|
|
|
|
Total comprehensive income for the period |
|
|
|
(259) |
(1,588) |
(1,847) |
|
Adjustment for share and share option awards |
|
|
|
|
(1) |
(1) |
|
Dividends payable in the three month period |
|
|
|
|
(49) |
(49) |
|
Balance at 31 December 2008 |
131 |
|
1,271 |
(248) |
2,238 |
3,392 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Prior year movements in Equity |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance at 1 April 2008 |
131 |
|
1,269 |
335 |
5,055 |
6,790 |
|
|
|
|
|
|
|
|
|
Total comprehensive income for the period |
|
|
|
(474) |
(3,664) |
(4,138) |
|
Share issues |
86 |
|
(25) |
682 |
|
743 |
|
Transfer |
|
|
|
(682) |
682 |
|
|
Adjustment for share and share option awards |
|
|
|
|
(1) |
(1) |
|
Dividends payable in the year |
|
|
|
|
(185) |
(185) |
|
Balance at 31 March 2009 |
217 |
|
1,244 |
(139) |
1,887 |
3,209 |
|
|
|
|
|
|
|
|
|
* See note 11 for a summary of the number of shares in issue |
||||||
|
Consolidated Balance Sheet as at 31 December 2009 |
|
|
|
|
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
31 March |
|
|
|
31 December |
|
31 December |
|
30 September |
|
|
2009 |
|
|
|
2009 |
|
2008 |
|
2009 |
|
|
Audited |
|
|
|
Unaudited |
|
Unaudited |
|
Unaudited |
|
|
£m |
|
|
Note |
£m |
|
£m |
|
£m |
|
|
|
|
Assets |
|
|
|
|
|
|
|
|
|
|
Non-current assets |
|
|
|
|
|
|
|
|
5,436 |
|
Investment properties |
3 |
3,703 |
|
7,258 |
|
5,313 |
|
|
358 |
|
Development properties |
3 |
|
|
374 |
|
202 |
|
|
30 |
|
Owner-occupied property |
3 |
30 |
|
39 |
|
25 |
|
|
5,824 |
|
|
|
3,733 |
|
7,671 |
|
5,540 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other non-current assets |
|
|
|
|
|
||
|
952 |
|
Investments in funds and joint ventures |
4 |
1,391 |
|
973 |
|
973 |
|
|
38 |
|
Other investments |
5 |
302 |
|
51 |
|
65 |
|
|
25 |
|
Intangible assets |
13 |
|
29 |
|
17 |
|
|
|
6,839 |
|
|
|
5,439 |
|
8,724 |
|
6,595 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Current assets |
|
|
|
|
|
|
|
|
123 |
|
Debtors |
|
103 |
|
98 |
|
72 |
|
|
616 |
|
Cash and short-term deposits |
6 |
342 |
|
475 |
|
638 |
|
|
739 |
|
|
|
445 |
|
573 |
|
710 |
|
|
|
|
|
|
|
|
|
|
|
|
|
7,578 |
|
Total assets |
|
5,884 |
|
9,297 |
|
7,305 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities |
|
|
|
|
|
|
|
|
|
|
Current liabilities |
|
|
|
|
|
|
|
|
(49) |
|
Short-term borrowings and overdrafts |
6 |
(38) |
|
(123) |
|
(51) |
|
|
(524) |
|
Creditors |
|
(357) |
|
(665) |
|
(467) |
|
|
(573) |
|
|
|
(395) |
|
(788) |
|
(518) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-current liabilities |
|
|
|
|
|
|
|
|
(3,716) |
|
Debentures and loans |
6 |
(1,769) |
|
(5,021) |
|
(3,673) |
|
|
(45) |
|
Other non-current liabilities |
(31) |
|
(55) |
|
(34) |
|
|
|
(35) |
|
Deferred tax liabilities |
(44) |
|
(41) |
|
(39) |
|
|
|
(3,796) |
|
|
|
(1,844) |
|
(5,117) |
|
(3,746) |
|
|
|
|
|
|
|
|
|
|
|
|
|
(4,369) |
|
Total liabilities |
|
(2,239) |
|
(5,905) |
|
(4,264) |
|
|
|
|
|
|
|
|
|
|
|
|
|
3,209 |
|
Net assets |
|
3,645 |
|
3,392 |
|
3,041 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Equity |
|
|
|
|
|
|
|
|
217 |
|
Share capital |
|
219 |
|
131 |
|
218 |
|
|
1,244 |
|
Share premium |
|
1,242 |
|
1,271 |
|
1,243 |
|
|
(139) |
|
Other reserves |
|
(64) |
|
(248) |
|
(116) |
|
|
1,887 |
|
Retained earnings |
2,248 |
|
2,238 |
|
1,696 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total equity attributable to shareholders |
|
|
|
|
|||
|
3,209 |
|
of the Company |
3,645 |
|
3,392 |
|
3,041 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
398 |
p |
EPRA NAV per share* |
1 |
438 |
p |
595 |
p** |
372 |
p |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
* As defined in note 1 |
|
|
|
|
|
|
|
||
|
** As restated for the Rights Issue |
|
|
|
|
|
|
|
||
|
Consolidated Statement of Cash Flows |
|
|
|
|
|
|
for the period ended 31 December 2009 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year |
|
Three months |
Nine months |
||
|
ended |
|
ended |
ended |
||
|
31 March |
|
31 December |
31 December |
||
|
2009 |
|
2009 |
2008 |
2009 |
2008 |
|
Audited |
|
Unaudited |
Unaudited |
||
|
£m |
|
£m |
£m |
£m |
£m |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
455 |
Rental income received from tenants |
48 |
120 |
248 |
355 |
|
30 |
Fees and other income received |
2 |
4 |
13 |
26 |
|
(79) |
Operating expenses paid to suppliers and employees |
(18) |
(21) |
(66) |
(62) |
|
406 |
Cash generated from operations |
32 |
103 |
195 |
319 |
|
|
|
|
|
|
|
|
(270) |
Interest paid |
(36) |
(51) |
(138) |
(185) |
|
20 |
Interest received |
2 |
11 |
7 |
18 |
|
16 |
UK corporation tax received (paid) |
1 |
19 |
(1) |
17 |
|
33 |
Distributions received from funds and joint ventures |
18 |
6 |
34 |
17 |
|
205 |
Net cash inflow from operating activities |
17 |
88 |
97 |
186 |
|
|
|
|
|
|
|
|
|
Cash flows from investing activities |
|
|
|
|
|
(107) |
Purchase of investment properties |
(42) |
(107) |
(42) |
(107) |
|
(436) |
Development and other capital expenditure |
(39) |
(99) |
(128) |
(358) |
|
904 |
Sale of investment properties |
43 |
87 |
241 |
864 |
|
(6) |
REIT conversion charge paid |
|
|
|
(6) |
|
|
Purchase of investments |
(43) |
|
(43) |
|
|
|
Sale of investments |
13 |
|
13 |
|
|
3 |
Indirect taxes in respect of investing activities |
1 |
(6) |
(4) |
(4) |
|
115 |
Establishment of Meadowhall Joint Venture |
|
|
|
|
|
|
Establishment of Broadgate Joint Venture |
31 |
|
31 |
|
|
|
Investment in Shopping Centres Joint Venture with Tesco |
(26) |
|
(26) |
|
|
(57) |
Investment in and loans to funds and joint ventures |
(3) |
(15) |
(55) |
(42) |
|
2 |
Capital distributions received from funds and joint ventures |
7 |
|
7 |
2 |
|
418 |
Net cash (outflow) inflow from investing activities |
(58) |
(140) |
(6) |
349 |
|
|
|
|
|
|
|
|
|
Cash flows from financing activities |
|
|
|
|
|
743 |
Issue of ordinary shares |
|
|
|
2 |
|
(188) |
Dividends paid |
(39) |
(50) |
(116) |
(136) |
|
(11) |
Repayment of debt acquired with subsidiary undertaking |
|
|
|
|
|
(76) |
Movement in other financial liabilities |
(6) |
(45) |
(16) |
5 |
|
|
Establishment of Broadgate Joint Venture - cash collateral |
(266) |
|
(266) |
|
|
(714) |
Increase (decrease) in bank and other borrowings |
56 |
242 |
33 |
(173) |
|
(246) |
Net cash (outflow) inflow from financing activities |
(255) |
147 |
(365) |
(302) |
|
|
|
|
|
|
|
|
377 |
Net (decrease) increase in cash and cash equivalents |
(296) |
95 |
(274) |
233 |
|
239 |
Opening cash and cash equivalents |
638 |
377 |
616 |
239 |
|
616 |
Closing cash and cash equivalents |
342 |
472 |
342 |
472 |
|
|
|
|
|
|
|
|
|
Cash and cash equivalents consists of: |
|
|
|
|
|
616 |
Cash and short-term deposits |
342 |
475 |
342 |
475 |
|
|
Overdrafts |
|
(3) |
|
(3) |
|
616 |
|
342 |
472 |
342 |
472 |
|
|
|
|
|
|
|
|
Notes to the accounts (unaudited) |
|
|
|
|
|
|
|
||||
|
|
|
|
|
|
|
|
|
|
|
||
|
1. Performance measures |
|
|
|
|
|
|
|
||||
|
|
|
|
|
|
|
|
|
|
|
||
|
Year ended |
|
Nine months ended |
|
Nine months ended |
|
||||||
|
31 March 2009 |
|
31 December 2009 |
|
31 December 2008 |
|
||||||
|
Earnings |
Pence per share |
Earnings (loss) per share (diluted) |
Earnings |
Pence per share |
|
Earnings |
|
Pence per share |
|
||
|
£m |
|
£m |
|
£m |
|
|
|||||
|
|
|
|
|
|
|
|
|
|
|
||
|
268 |
|
Underlying pre tax profit - income statement |
187 |
|
|
207 |
|
|
|
||
|
(9) |
|
Tax charge relating to underlying profit |
(4) |
|
|
(6) |
|
|
|
||
|
|
|
|
|
|
|
|
|
|
|
||
|
259 |
41p |
Underlying earnings per share |
183 |
21 |
p |
201 |
|
32 |
p* |
||
|
|
|
|
|
|
|
|
|
|
|
||
|
(119) |
|
Realisation of cash flow hedges/ non-recurring items |
(9) |
|
|
(41) |
|
|
|
||
|
|
|
|
|
|
|
|
|
|
|
||
|
140 |
22p |
EPRA earnings per share |
174 |
20 |
p |
160 |
|
26 |
p* |
||
|
|
|
|
|
|
|
|
|
|
|
||
|
(3,881) |
(614)p |
Profit (loss) for the period after taxation |
511 |
60 |
p |
(2,899) |
|
(470) |
p* |
||
|
|
|
|
|
|
|
|
|
|
|
||
|
Year ended |
|
Three months ended |
|
Three months ended |
|
||||||
|
31 March 2009 |
|
31 December 2009 |
|
31 December 2008 |
|
||||||
|
Earnings |
Pence per share |
Earnings (loss) per share (diluted) |
Earnings |
Pence per share |
|
Earnings |
|
Pence per share |
|
||
|
£m |
|
£m |
|
£m |
|
|
|||||
|
|
|
|
|
|
|
|
|
|
|
||
|
268 |
|
Underlying pre tax profit - income statement |
58 |
|
|
63 |
|
|
|
||
|
(9) |
|
Tax charge relating to underlying profit |
(1) |
|
|
(2) |
|
|
|
||
|
|
|
|
|
|
|
|
|
|
|
||
|
259 |
41p |
Underlying earnings per share |
57 |
7 |
p |
61 |
|
10 |
p* |
||
|
|
|
|
|
|
|
|
|
|
|
||
|
(119) |
|
Realisation of cash flow hedges/ non-recurring items |
(9) |
|
|
(41) |
|
|
|
||
|
|
|
|
|
|
|
|
|
|
|
||
|
140 |
22p |
EPRA earnings per share |
48 |
6 |
p |
20 |
|
3 |
p* |
||
|
|
|
|
|
|
|
|
|
|
|
||
|
(3,881) |
(614)p |
Profit (loss) for the period after taxation |
623 |
72 |
p |
(1,587) |
|
(257) |
p* |
||
|
* As restated for the Rights Issue |
|
|
|
|
|
|
|
||||
|
|
|
|
|
|
|
|
|
|
|
||
|
The European Public Real Estate Association (EPRA) issued Best Practices Recommendations in July 2009, which gives guidelines for performance measures. The EPRA earnings measure excludes investment property revaluations and gains or losses on disposals, intangible asset movements and their related taxation. |
|||||||||||
|
|
|
|
|
|
|
|
|
|
|
||
|
Underlying earnings consists of the EPRA earnings measure, with additional company adjustments. Adjustments include realisation of cash flow hedges. |
|||||||||||
|
|
|
|
|
|
|
|
|
|
|
||
|
The weighted average number of shares in issue for the three month period was: basic: 860m (nine months ended 31 December 2009: 855m; year ended 31 March 2009: 630m; three months ended 31 December 2008 restated: 614m; nine months ended 31 December 2008 restated: 614m); diluted for the effect of share options: 863m (nine months ended 31 December 2009: 858m; year ended 31 March 2009: 632m; three months ended 31 December 2008 restated: 617m; nine months ended 31 December 2008 restated: 617m). Basic undiluted earnings per share for the three month period was 72p (nine months ended 31 December 2009: 60p; year ended 31 March 2009: 616p loss; three months ended 31 December 2008 restated: 258p loss; nine months ended 31 December 2008 restated: 472p loss). Earnings per share shown in the table above are diluted. |
|||||||||||
|
|
|
|
|
|
|
|
|
|
|
||
|
31 March |
|
|
|
31 December |
|
31 December |
|
30 September |
|
||
|
2009 |
|
Net asset value (NAV) |
|
2009 |
|
2008 |
|
2009 |
|
||
|
£m |
|
|
|
£m |
|
£m |
|
£m |
|
||
|
|
|
|
|
|
|
|
|
|
|
||
|
3,209 |
|
Balance sheet net assets |
3,645 |
|
3,392 |
|
3,041 |
|
|||
|
|
|
|
|
|
|
|
|
|
|
||
|
25 |
|
Deferred tax arising on revaluation movements |
39 |
|
33 |
|
30 |
|
|||
|
153 |
|
Mark to market on effective cash flow hedges and related debt adjustments |
100 |
|
257 |
|
128 |
|
|||
|
|
|
Dilution effect of share options |
29 |
|
10 |
|
1 |
|
|||
|
|
|
|
|
|
|
|
|
|
|
||
|
3,387 |
|
EPRA NAV |
|
3,813 |
|
3,692 |
|
3,200 |
|
||
|
|
|
|
|
|
|
|
|
|
|
||
|
398p |
|
EPRA NAV per share |
|
438 |
p |
595 |
p* |
372 |
p |
||
|
* As restated for the Rights Issue |
|
|
|
|
|
|
|
||||
|
|
|
|
|
|
|
|
|
|
|
||
|
The EPRA NAV per share excludes the mark to market on effective cash flow hedges and related debt adjustments, deferred taxation on revaluations and is calculated on a fully diluted basis. |
|||||||||||
|
|
|
|
|
|
|
|
|
|
|
||
|
At 31 December 2009, the number of shares in issue was: basic: 862m (31 March 2009: 850m; 30 September 2009: 857m; 31 December 2008 restated: 616m); diluted for the effect of share options: 871m (31 March 2009: 851m; 30 September 2009: 860m; 31 December 2008 restated: 620m). |
|||||||||||
|
|
|
|
|
|
|
|
|
|
|
||
|
Total return per share for the three months ended 31 December 2009 of 19.5% includes dividends paid of 6.5p (see note 7) in addition to the increase in EPRA NAV of 66p. Total return per share for the nine months ended 31 December 2009 of 15.3% includes dividends paid of 20.77p (see note 7) in addition to the increase in EPRA NAV of 40p. Total return per share for the year ended 31 March 2009 was minus 61.6%. |
|||||||||||
|
|
|||||||||||
|
2. Income statement notes |
|
|
|
|
|
||
|
|
|
|
|
|
|
|
|
|
Year ended |
|
|
Three months ended |
Nine months ended |
|||
|
31 March |
|
|
31 December |
31 December |
|||
|
2009 |
|
|
2009 |
2008 |
2009 |
2008 |
|
|
£m |
|
|
£m |
£m |
£m |
£m |
|
|
|
Gross and net rental income |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
462 |
Rent receivable |
|
69 |
117 |
262 |
357 |
|
|
34 |
Spreading of tenant incentives and guaranteed rent increases |
5 |
8 |
19 |
26 |
||
|
1 |
Surrender premiums |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
497 |
Gross rental income |
|
74 |
125 |
281 |
383 |
|
|
|
|
|
|
|
|
|
|
|
57 |
Service charge income |
|
13 |
12 |
46 |
37 |
|
|
|
|
|
|
|
|
|
|
|
554 |
Gross rental and related income |
|
87 |
137 |
327 |
420 |
|
|
|
|
|
|
|
|
|
|
|
(57) |
Service charge expenses |
|
(13) |
(12) |
(46) |
(37) |
|
|
(44) |
Property operating expenses |
|
(3) |
(7) |
(2) |
(17) |
|
|
|
|
|
|
|
|
|
|
|
453 |
Net rental and related income |
|
71 |
118 |
279 |
366 |
|
|
|
|
|
|
|
|
|
|
|
|
Fees and other income |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
14 |
Performance & management fees (from funds and joint ventures) |
1 |
3 |
5 |
10 |
||
|
4 |
Other fees and commission |
|
|
1 |
2 |
3 |
|
|
|
|
|
|
|
|
|
|
|
18 |
|
|
1 |
4 |
7 |
13 |
|
|
|
|
|
|
|
|
|
|
|
|
Net revaluation movements on property and investments |
|
|
|
|||
|
|
|
|
|
|
|
|
|
|
|
Income statement |
|
|
|
|
|
|
|
(2,994) |
Revaluation of properties |
|
333 |
(1,197) |
159 |
(2,356) |
|
|
(177) |
Result on property disposals |
|
(12) |
(30) |
(14) |
(78) |
|
|
(69) |
Revaluation of investments |
|
|
(57) |
(12) |
(57) |
|
|
(1) |
Other revaluations and losses |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(3,241) |
|
|
321 |
(1,284) |
133 |
(2,491) |
|
|
(833) |
Share of profits (losses) of funds and joint ventures (note 4) |
246 |
(351) |
202 |
(616) |
||
|
|
|
|
|
|
|
|
|
|
(4,074) |
|
|
567 |
(1,635) |
335 |
(3,107) |
|
|
|
Consolidated statement of comprehensive income |
|
|
|
|
||
|
(44) |
Revaluation of development properties |
|
|
|
(44) |
||
|
(3) |
Revaluation of owner-occupied property |
|
|
|
(3) |
||
|
(88) |
Revaluation of investments |
|
|
(15) |
|
(88) |
|
|
|
|
|
|
|
|
|
|
|
(4,209) |
|
|
567 |
(1,650) |
335 |
(3,242) |
|
|
|
|
|
|
|
|
|
|
|
|
Tax income (expense) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(6) |
Current tax: |
UK corporation tax (28%) |
(1) |
3 |
(2) |
(1) |
|
|
(1) |
|
Foreign tax |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(7) |
|
|
(1) |
3 |
(2) |
(1) |
|
|
5 |
Adjustments in respect of prior periods |
20 |
|
24 |
|
||
|
|
|
|
|
|
|
|
|
|
(2) |
Total current tax income (expense) |
19 |
3 |
22 |
(1) |
||
|
49 |
Deferred tax on revaluations |
|
(7) |
24 |
(9) |
43 |
|
|
|
|
|
|
|
|
|
|
|
47 |
Group total taxation (net) |
|
12 |
27 |
13 |
42 |
|
|
|
|
|
|
|
|
|
|
|
11 |
Attributable to funds and joint ventures |
(1) |
3 |
(4) |
11 |
||
|
|
|
|
|
|
|
|
|
|
58 |
Total taxation |
|
11 |
30 |
9 |
53 |
|
|
|
|
|
|
|
|
|
|
|
Tax expense attributable to underlying profits for the three months ended 31 December 2009 was £1m (nine months ended 31 December 2009: £4m; year ended 31 March 2009: £9m; three months ended 31 December 2008: £2m; nine months ended 31 December 2008: £6m). |
|||||||
|
3. Property |
|
|
|
|
|||
|
|
|
|
|
|
|
||
|
Total property interests are £7,899m at 31 December 2009 comprising properties held by the Group of £3,726m, share of properties held by funds of £820m and share of properties held by joint ventures of £3,353m. Properties were valued on the basis of market value, supported by market evidence, in accordance with the Appraisal and Valuation Standards published by The Royal Institution of Chartered Surveyors. |
|||||||
|
|
|
|
|
|
|
||
|
|
|
|
|
|
|
||
|
31 March |
|
|
31 December |
31 December |
30 September |
||
|
2009 |
|
|
2009 |
2008 |
2009 |
||
|
|
|
|
|
|
|
||
|
£m |
|
|
£m |
£m |
£m |
||
|
|
|
|
|
|
|
||
|
5,436 |
Investment properties |
|
3,703 |
7,258 |
5,313 |
||
|
358 |
Development properties |
|
|
374 |
202 |
||
|
30 |
Owner-occupied property |
30 |
39 |
25 |
|||
|
5,824 |
Carrying value of properties on balance sheet |
3,733 |
7,671 |
5,540 |
|||
|
|
|
|
|
|
|
||
|
(14) |
Head lease liabilities |
|
(7) |
(20) |
(8) |
||
|
|
|
|
|
|
|
||
|
5,810 |
Total British Land Group property portfolio valuation |
3,726 |
7,651 |
5,532 |
|||
|
|
|
|
|
|
|
||
|
At 31 December 2009 Group properties valued at £2,128m were subject to a security interest (31 March 2009: £3,665m; 30 September 2009: £3,667m; 31 December 2008: £5,286m) and other properties of non-recourse companies amounted to £nil (31 March 2009: £1m; 30 September 2009: £nil; 31 December 2008: £2m). |
|||||||
|
|
|
|
|
|
|
||
|
4. Funds and joint ventures |
|
|
|
|
|||
|
|
|
|
|
|
|
||
|
Summary of British Land's share of investments in funds and joint ventures at 31 December 2009 |
|||||||
|
|
|
|
|
|
|
||
|
|
Underlying |
Underlying |
|
|
|
||
|
|
profit |
profit |
|
|
|
||
|
|
(nine |
(three |
Net |
Gross |
Gross |
||
|
|
months) |
months) |
Investment |
assets |
liabilities |
||
|
|
£m |
£m |
£m |
£m |
£m |
||
|
Share of funds |
11 |
3 |
405 |
994 |
(589) |
||
|
Share of joint ventures |
41 |
17 |
986 |
3,575 |
(2,589) |
||
|
Total |
52 |
20 |
1,391 |
4,569 |
(3,178) |
||
|
|
|
|
|
|
|
||
|
At 31 December 2009 the investment in Joint Ventures included within the total net investment in Funds and Joint Ventures was £988m (31 March 2009: £585m; 30 September 2009: £600m; 31 December 2008: £500m). |
|||||||
|
|
|
|
|
|
|
||
|
Amounts owed to joint ventures at 31 December 2009 were £39m (31 March 2009: £33m; 30 September 2009: £39m; 31 December 2008: £31m). |
|||||||
|
|
|
|
|
|
|
||
|
British Land's share of the results of funds and joint ventures |
|||||||
|
|
|
|
|
|
|
||
|
Year ended |
|
Three months ended |
Nine months ended |
||||
|
31 March |
|
31 December |
31 December |
||||
|
2009 |
|
2009 |
2008 |
2009 |
2008 |
||
|
£m |
|
£m |
£m |
£m |
£m |
||
|
|
|
|
|
|
|
||
|
153 |
Gross rental income |
60 |
34 |
148 |
107 |
||
|
|
|
|
|
|
|
||
|
145 |
Net rental and related income |
57 |
33 |
140 |
102 |
||
|
(5) |
Other income and expenditure |
(5) |
(1) |
(8) |
(3) |
||
|
(85) |
Net financing costs |
(32) |
(21) |
(80) |
(61) |
||
|
|
|
|
|
|
|
||
|
55 |
Underlying profit before taxation |
20 |
11 |
52 |
38 |
||
|
|
|
|
|
|
|
||
|
(833) |
Net valuation and disposal movements |
246 |
(351) |
202 |
(616) |
||
|
|
Non-recurring items - debt break costs |
(9) |
|
(9) |
|
||
|
|
|
|
|
|
|
||
|
(778) |
Profit (loss) on ordinary activities before taxation |
257 |
(340) |
245 |
(578) |
||
|
|
|
|
|
|
|
||
|
2 |
Current tax |
|
|
(4) |
4 |
||
|
9 |
Deferred tax |
(1) |
3 |
|
7 |
||
|
|
|
|
|
|
|
||
|
(767) |
Profit (loss) on ordinary activities after taxation |
256 |
(337) |
241 |
(567) |
||
|
|
|
|
|
|
|
||
|
All joint ventures are non-recourse to the Group. Where a joint venture has net liabilities, as required under IFRS, the Group does not account for its share of the deficit in its total share of joint venture results. |
|||||||
|
|
|
|
|
|
|
||
|
5. Other investments |
|
|
|
|
|||
|
|
|
|
|
|
|
||
|
The increase in other investments in the quarter to December 2009 is substantially due to the commercial loan to the Broadgate Joint Venture of £209m and the investment in the HUT convertible bond of £43m. |
|||||||
|
|
|||||||
|
6. Net Debt |
|
|
|
|
|||
|
|
|
|
|
|
|||
|
31 March |
|
31 December |
31 December |
30 September |
|||
|
2009 |
|
2009 |
2008 |
2009 |
|||
|
£m |
|
£m |
£m |
£m |
|||
|
|
|
|
|
|
|||
|
1,991 |
Securitisations |
|
2,834 |
1,968 |
|||
|
1,168 |
Debentures |
1,166 |
1,169 |
1,167 |
|||
|
139 |
Bank loans and overdrafts |
188 |
677 |
134 |
|||
|
467 |
Other bonds and loan notes |
453 |
464 |
455 |
|||
|
|
|
|
|
|
|||
|
3,765 |
Gross debt |
1,807 |
5,144 |
3,724 |
|||
|
|
|
|
|
|
|||
|
109 |
Interest rate and currency derivative liabilities |
36 |
214 |
86 |
|||
|
(16) |
Interest rate and currency derivative assets |
(1) |
(16) |
(1) |
|||
|
3,858 |
|
1,842 |
5,342 |
3,809 |
|||
|
(616) |
Cash and short-term deposits |
(342) |
(475) |
(638) |
|||
|
|
|
|
|
|
|||
|
3,242 |
Net debt |
1,500 |
4,867 |
3,171 |
|||
|
|
|
|
|
|
|||
|
Gross debt includes £38m due within one year at 31 December 2009 (31 March 2009: £49m; 30 September 2009: £51m; 31 December 2008: £123m). |
|||||||
|
|
|
|
|
|
|||
|
Undrawn committed bank facilities at 31 December 2009 amounted to £2,830m. |
|||||||
|
|
|
|
|
|
|||
|
The financial covenants applicable to the Group unsecured debt are: |
|||||||
|
a. Net Borrowings not to exceed 175% of Adjusted Capital and Reserves. At 31 December 2009 the ratio is 37%: |
|||||||
|
i. Net Borrowings are £1,519m, being the principal amount of gross debt of £1,799m plus amounts owed to joint ventures of £39m (see note 4) and TPP Investments Ltd of £23m (see note 9), less the cash and short-term deposits of £342m; and |
|||||||
|
ii. Adjusted Capital and Reserves are £4,151m, being share capital and reserves of £3,645m (balance sheet), adjusted for £39m of deferred tax (see note 1), £100m mark to market on interest rate swaps (see note 1) and £367m exceptional refinancing charges (being the cumulative net amortised exceptional items relating to the refinancings in the years ended 31 March 2005, 2006 and 2007); and |
|||||||
|
b. Net Unsecured Borrowings not to exceed 70% of Unencumbered Assets. At 31 December 2009 the ratio is 13%: |
|||||||
|
i. Net Unsecured Borrowings are £300m, being the principal amount of gross debt of £1,799m plus amounts owed to joint ventures of £39m (see note 4) less cash and deposits not subject to a security interest of £123m less the principal amount of secured and non-recourse borrowings of £1,415m; and |
|||||||
|
ii. Unencumbered Assets are £2,303m being properties of £3,726m (see note 3) plus investments in funds and joint ventures of £1,391m (balance sheet) and other investments of £302m (balance sheet) less investments in joint ventures of £988m (see note 4) and encumbered assets of £2,128m (see note 3). |
|||||||
|
The Group Loan to Value ratio at 31 December 2009 is 27%, being gross debt of £1,807m less cash and short-term deposits of £342m, divided by total Group property of £3,726m (see note 3) plus investments in Funds and Joint Ventures of £1,391m (balance sheet) and other investments of £302m (balance sheet). |
|||||||
|
|
|
|
|
|
|||
|
7. Dividends |
|
|
|
|
|||
|
|
|
|
|
|
|||
|
The third quarter dividend of 6.5 pence per share, totalling £56 million, is payable on 14 May 2010 to shareholders on the register at close of business on 9 April 2010. This dividend will be entirely a 'normal' dividend i.e. not a PID (Property Income Distribution). |
|||||||
|
|
|
|
|
|
|||
|
The 2010 second quarter dividend of 6.5 pence per share, totalling £56m, is payable on 12 February 2010. |
|||||||
|
|
|
|
|
|
|||
|
In respect of the 2010 first quarter dividend of 6.5 pence per share, totalling £56m, 39% of shareholders opted for the enhanced scrip alternative in lieu of £22m in cash dividends. The remaining cash element of £34m was paid on 13 November 2009. |
|||||||
|
|
|
|
|
|
|||
|
The Consolidated Statement of Changes in Equity shows total dividends in the nine months to 31 December 2009 of £159m, £48m being the third 2009 interim dividend of 7.77 pence per share (restated for Rights Issue) paid on 15 May 2009, £55m being the fourth 2009 interim dividend of 6.5 pence per share and £56m being the first 2010 interim dividend disclosed above. |
|||||||
|
|
|
|
|
|
|||
|
An enhanced scrip alternative with a 5% bonus (above the equivalent cash value) is being offered to shareholders with the third quarter dividend. Shareholders will be able to choose between cash or shares. If a scrip dividend mandate form has already been completed, and not withdrawn, no action needs to be taken to receive this dividend payment as shares. |
|||||||
|
|
|
|
|
|
|||
|
If required, scrip dividend scheme mandate forms are available from our registrars, Equiniti, whose helpline is 0871 384 2268 and the form must be returned to the Registrars no later than 5.00pm on 22 April 2010. |
|||||||
|
|
|
|
|
|
|||
|
The scrip dividend booklet provides further details of the scheme and is available on our website - http://www.britishland.com/investors/dividends/scrip. |
|||||||
|
|
|||||||
|
8. Segment information |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
The Group allocates resources to investment and asset management according to the sectors it expects to perform over the medium term. Its two principal sectors are currently offices and retail. |
|||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
Offices |
Retail |
Other |
Total |
|||||
|
|
2009 |
2008 |
2009 |
2008 |
2009 |
2008 |
2009 |
2008 |
|
|
|
£m |
£m |
£m |
£m |
£m |
£m |
£m |
£m |
|
|
Nine months ended 31 December |
|
|
|
|
|
|
|
|
|
|
Revenue |
177 |
201 |
140 |
215 |
17 |
17 |
334 |
433 |
|
|
Net rental income |
134 |
175 |
135 |
176 |
10 |
15 |
279 |
366 |
|
|
Segment assets |
1,520 |
3,926 |
3,415 |
4,510 |
949 |
861 |
5,884 |
9,297 |
|
|
Capital expenditure |
197 |
312 |
24 |
148 |
12 |
|
233 |
460 |
|
|
Three months ended 31 December |
|
|
|
|
|
|
|
|
|
|
Revenue |
40 |
65 |
43 |
71 |
5 |
5 |
88 |
141 |
|
|
Net rental income |
27 |
58 |
41 |
55 |
3 |
5 |
71 |
118 |
|
|
Capital expenditure |
109 |
74 |
14 |
116 |
10 |
|
133 |
190 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue is derived from the rental of buildings, fund management and performance fees and investments. Corporate costs, including administrative and interest expenses, are not allocated to the segments shown, therefore a sectoral profit or loss is not disclosed. Segment assets include the Group's investment in funds and joint ventures. No customer exceeds 10% of the Group's revenues. |
|||||||||
|
|
|
|
|
|
|
|
|
|
|
|
9. Contingent liabilities |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TPP Investments Limited, a wholly owned ring-fenced special purpose subsidiary, is a partner in The Tesco British Land Property Partnership and, in that capacity, has entered into a secured bank loan under which its liability is limited to £23m (31 March 2009: £23m, 30 September 2009: £23m, 31 December 2008: £23m) and recourse is only to the partnership assets. |
|||||||||
|
|
|
|
|
|
|
|
|
|
|
|
10. Related party transactions |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Details of transactions with funds and joint ventures including debt guarantees by the Company are given in notes 2 and 9. Amounts owed to joint ventures are detailed in note 4. |
|||||||||
|
|
|
|
|
|
|
|
|
|
|
|
There have been no material changes in the related party transactions described in the last annual report. |
|||||||||
|
|
|
|
|
|
|
|
|
|
|
|
11. Note to the Consolidated Statement of Changes in Equity |
|||||||||
|
|
|
|
|
|
|
|
|
|
|
|
At 31 December 2009, of the issued 25p ordinary shares, 2m were held in the ESOP Trust (31 March 2009: 2m; 30 September 2009: 2m; 31 December 2008: 2m), 11m were held as Treasury shares (31 March 2009: 11m; 30 September 2009: 11m; 31 December 2008: 11m) and 862m shares were in free issue (31 March 2009: 850m; 30 September 2009: 857m; 31 December 2008: 510m). All shares are fully paid. |
|||||||||
|
|
|
|
|
|
|
|
|
|
|
|
12. Basis of preparation |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
The financial information for the year ended 31 March 2009 does not constitute statutory accounts as defined in section 240 of the Companies Act 1985. A copy of the statutory accounts for that year has been delivered to the Registrar of Companies. The auditors' report on those accounts was not qualified, did not include a reference to any matters to which the auditors drew attention by way of emphasis without qualifying the report, and did not contain statements under section 237(2) or (3) of the Companies Act 1985. |
|||||||||
|
|
|
|
|
|
|
|
|
|
|
|
The financial information included in this announcement has been prepared on a going concern basis using accounting policies consistent with International Financial Reporting Standards (IFRS) and in accordance with IAS 34 'Interim Financial Reporting'. The same accounting policies, estimates, presentation and methods of computation are followed in the quarterly report as applied in the Group's latest annual audited financial statements, with the exception of the adoption of the amendments to IAS 1 (Revised) Presentation of Financial Statements, IAS 40 Investment Property and IAS 16 Property, Plant and Equipment. The current period financial information presented in this document is unaudited. |
|||||||||
|
|
|
|
|
|
|
|
|
|
|
|
The Group's business activities, financial position, cash flows, liquidity position and financing structure are discussed on pages 3 to 13. The Directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. Thus they continue to adopt the going concern basis of accounting in preparing the financial statements. |
|||||||||
|
|
|
|
|
|
|
|
|
|
|
|
The interim financial information was approved by the Board on 8 February 2010. |
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Table A |
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Summary income statement based on proportional consolidation for the period ended 31 December 2009 |
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The following pro forma information is unaudited and does not form part of the consolidated primary statements or the notes thereto. It presents the results of the Group, with its share of the results of funds and joint ventures included on a line by line, i.e. proportional basis. The underlying profit before taxation and total profit after taxation are the same as presented in the consolidated income statement. |
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Year |
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ended |
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Three months ended |
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Nine months ended |
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31 March |
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31 December |
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31 December |
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31 December |
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31 December |
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2009 |
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2009 |
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2008 |
|
2009 |
|
2008 |
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|
£m |
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£m |
|
£m |
|
£m |
|
£m |
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|
650 |
Gross rental income |
134 |
|
159 |
|
429 |
|
490 |
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|
598 |
Net rental income |
128 |
|
151 |
|
419 |
|
468 |
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20 |
Fees and other income |
1 |
|
4 |
|
7 |
|
14 |
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|
(58) |
Administrative expenses |
(17) |
|
(16) |
|
(49) |
|
(49) |
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|
(292) |
Net interest costs |
(54) |
|
(76) |
|
(190) |
|
(226) |
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268 |
Underlying profit before taxation |
58 |
|
63 |
|
187 |
|
207 |
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(4,074) |
Net valuation movement (includes profits and losses on disposal) |
567 |
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(1,635) |
|
335 |
|
(3,107) |
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(119) |
Realisation of cash flow hedges/non-recurring items |
(9) |
|
(41) |
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(9) |
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(41) |
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(14) |
Amortisation of intangible assets |
(4) |
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(4) |
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(11) |
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(11) |
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(3,939) |
Profit (loss) on ordinary activities before taxation |
612 |
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(1,617) |
|
502 |
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(2,952) |
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(9) |
Tax charge relating to underlying profit |
(1) |
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(2) |
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(4) |
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(6) |
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58 |
Deferred tax |
(8) |
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27 |
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(9) |
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50 |
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9 |
Other taxation |
20 |
|
5 |
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22 |
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9 |
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(3,881) |
Profit (loss) for the period after taxation |
623 |
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(1,587) |
|
511 |
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(2,899) |
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41p |
Underlying earnings per share - diluted basis |
7 |
p |
10 |
p* |
21 |
p |
32 |
p* |
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* As restated for the Rights Issue |
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The underlying earnings per share is calculated on underlying profit before taxation of £187m, tax attributable to underlying profits of £4m and 858m shares on a diluted basis, for the nine months ended 31 December 2009 and underlying profit before taxation of £58m, tax attributable to underlying profits of £1m and 863m shares on a diluted basis, for the three months ended 31 December 2009. |
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Summary balance sheet based on proportional consolidation as at 31 December 2009 |
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The following pro forma information is unaudited and does not form part of the consolidated primary statements or the notes thereto. It presents the composition of the EPRA net assets of the Group, with its share of the net assets of funds and joint ventures included on a line by line, i.e. proportional basis and assuming full dilution. |
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31 March |
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31 December |
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31 December |
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30 September |
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2009 |
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2009 |
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2008 |
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2009 |
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£m |
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£m |
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£m |
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£m |
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4,867 |
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Retail properties |
5,254 |
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6,018 |
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4,760 |
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3,570 |
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Office properties |
2,458 |
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3,925 |
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3,350 |
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|
188 |
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Other properties |
187 |
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228 |
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183 |
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8,625 |
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Total properties |
7,899 |
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10,171 |
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8,293 |
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38 |
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Other investments |
197 |
|
51 |
|
65 |
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|
25 |
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Intangible assets |
13 |
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29 |
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17 |
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(360) |
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Other net liabilities |
(239) |
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(455) |
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(351) |
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(4,941) |
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Net debt |
(4,057) |
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(6,104) |
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(4,824) |
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3,387 |
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EPRA NAV (note 1) |
3,813 |
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3,692 |
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3,200 |
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|
398 |
p |
EPRA NAV per share (note 1) |
438 |
p |
595 |
p* |
372 |
p |
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Total property valuations including share of funds and joint ventures |
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5,810 |
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British Land Group |
3,726 |
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7,651 |
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5,532 |
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Share of funds and joint ventures |
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2,775 |
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Investment properties |
4,181 |
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2,526 |
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2,735 |
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49 |
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Development properties |
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35 |
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(9) |
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Head lease liabilities |
(8) |
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(6) |
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(9) |
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2,815 |
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4,173 |
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2,520 |
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2,761 |
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8,625 |
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Total property portfolio valuation |
7,899 |
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10,171 |
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8,293 |
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Calculation of EPRA NNNAV per share |
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3,387 |
|
EPRA NAV |
3,813 |
|
3,692 |
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3,200 |
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(25) |
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Deferred tax arising on revaluation movements |
(39) |
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(33) |
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(30) |
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(153) |
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Mark to market on effective cash flow hedges and related debt adjustments |
(100) |
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(257) |
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(128) |
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1,116 |
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Mark to market on debt |
387 |
|
1,022 |
|
725 |
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4,325 |
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EPRA NNNAV |
4,061 |
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4,424 |
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3,767 |
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|
508 |
p |
EPRA NNNAV per share |
466 |
p |
861 |
p* |
438 |
p |
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*As restated for the Rights issue |
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EPRA NNNAV is the EPRA NAV adjusted to reflect the fair value of the debt and derivatives and to include the deferred taxation on revaluations. |
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INDEPENDENT REVIEW REPORT TO THE BRITISH LAND COMPANY PLC |
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We have been engaged by the company to review the condensed set of financial statements in the quarterly financial report for the nine months ended 31 December 2009 which comprises the Consolidated Income Statement, the Consolidated Statement of Comprehensive Income, the Consolidated Statement of Changes in Equity, the Consolidated Balance Sheet, the Consolidated Statement of Cash flows and the related notes 1 to 12. We have read the other information contained in the quarterly financial report and considered whether it contains any apparent misstatements or material inconsistencies with the information in the condensed set of financial statements. |
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This report is made solely to the company in accordance with International Standard on Review Engagements (UK and Ireland) 2410 "Review of Interim Financial Information Performed by the Independent Auditor of the Entity" issued by the Auditing Practices Board. Our work has been undertaken so that we might state to the company those matters we are required to state to them in an independent review report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company, for our review work, for this report, or for the conclusions we have formed. |
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Directors' responsibilities |
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The quarterly financial report is the responsibility of, and has been approved by, the directors. The directors are responsible for preparing the quarterly financial report in accordance with the Disclosure and Transparency Rules of the United Kingdom's Financial Services Authority. |
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As disclosed in note 12, the annual financial statements of the group are prepared in accordance with IFRSs as adopted by the European Union. The condensed set of financial statements included in this quarterly financial report has been prepared in accordance with International Accounting Standard 34, "Interim Financial Reporting," as adopted by the European Union. |
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Our responsibility |
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Our responsibility is to express to the Company a conclusion on the condensed set of financial statements in the quarterly financial report based on our review. |
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Scope of Review |
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We conducted our review in accordance with International Standard on Review Engagements (UK and Ireland) 2410 "Review of Interim Financial Information Performed by the Independent Auditor of the Entity" issued by the Auditing Practices Board for use in the United Kingdom. A review of interim financial information consists of making inquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with International Standards on Auditing (UK and Ireland) and consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion. |
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Conclusion |
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Based on our review, nothing has come to our attention that causes us to believe that the condensed set of financial statements in the quarterly financial report for the nine months ended 31 December 2009 is not prepared, in all material respects, in accordance with International Accounting Standard 34 as adopted by the European Union and the Disclosure and Transparency Rules of the United Kingdom's Financial Services Authority. |
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Deloitte LLP |
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Chartered Accountants and Statutory Auditors |
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London, United Kingdom |
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8 February 2010 |
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Related Shares:
British Land