22nd May 2007 07:04
British Land Co PLC22 May 2007 PRELIMINARY ANNOUNCEMENT OF FINANCIAL RESULTS For the year ended 31 March 2007 Consolidated Income Statement for the year ended 31 March 2007 2007 2006+ -------------------------- -------------------------------- Underlying Capital Underlying Capital pre tax* and other Total pre tax* and other Total Note £m £m £m £m £m £m ---- ---- --- ---- ---- ---- Gross rental and related income 3 649 649 690 690 --------------------------------------------------------------------------------------------------------------------- Net rental and related income 3 561 561 589 589Fees and other income 4 50 33 83 50 50Amortisation of intangible asset (15) (15) (10) (10) Funds and joint ventures (see also below) 9 37 422 459 39 272 311Administrative expenses (78) (13) (91) (81) (81)Net valuation gains (includes profits on disposals) 5 1,167 1,167 1,370 1,370Goodwill impairment (106) (106) (240) (240)Net financing costs financing income 41 41 50 50 financing charges (354) (354) (419) (419) refinancing charges (305) (305) (122) (122) ----------------------------- --------------------------- 6 (313) (305) (618) (369) (122) (491) ----------------------------- --------------------------- Profit on ordinary activities before taxation 257 1,183 1,440 228 1,270 1,498 ------- -------Taxation REIT conversion charge (277) current tax income (expense) 1 (7) deferred tax income (expense) 1,289 (307) ------- ------- 7 1,013 (314)------------------------------------------------------------------------------------------------------------------------Profit for the year after taxation attributable 2,453 1,184to shareholders of the Company ------------------------------------------------------------------------------------------------------------------------ Earnings per share: basic 2 472p 228p ------ ------ diluted 2 470p 227p ------ ------------------------------------------------------------------------------------------------------------------------------Share of results of funds and joint venturesUnderlying profit pre-tax 37 37 39 39Net valuation gains (includes profits on disposals) 257 257 378 378Goodwill impairment (5) (5)REIT conversion charge (48) (48)Current tax (19) (19) (9) (9)Deferred tax 237 237 (97) (97)------------------------------------------------------------------------------------------------------------------------ 9 37 422 459 39 272 311------------------------------------------------------------------------------------------------------------------------ + Restated as described in note 1. * As defined in note 2. Consolidated Balance Sheet as at 31 March 2007 2007 2006+ Note £m £m ---- ----AssetsNon-current assetsInvestment properties 8 12,891 11,081Development properties 8 1,106 597Owner-occupied property 8 50 ------------------------ 14,047 11,678 Other non-current assetsInvestments in funds and joint ventures 9 1,610 1,234Other investments 10 267 248Intangible assets 10 50 65 ------------------------ 15,974 13,225 ------------------------ Current assetsTrading properties 8 36Debtors 11 208 118Cash and short-term deposits 14 198 133 ------------------------ 406 287--------------------------------------------------------------------------------Total assets 16,380 13,512-------------------------------------------------------------------------------- LiabilitiesCurrent liabilitiesShort-term borrowings and overdrafts 14 (54) (129)Creditors 12 (746) (417) ------------------------ (800) (546) ------------------------ Non-current liabilitiesDebentures and loans 14 (6,617) (5,575)Other non-current liabilities 13 (37) (44)Deferred tax liabilities 7 (179) (1,331) ------------------------ (6,833) (6,950) ------------------------ Total liabilities (7,633) (7,496)--------------------------------------------------------------------------------Net assets 8,747 6,016-------------------------------------------------------------------------------- EquityShare capital 18 130 130Share premium 18 1,263 1,253Other reserves 18 532 176Retained earnings 18 6,822 4,457--------------------------------------------------------------------------------Total equity attributable to shareholders ofthe Company 8,747 6,016-------------------------------------------------------------------------------- EPRA NAV per share* 2 1682p 1486p -------- -------- The financial information in this preliminary announcement was approved by theBoard on 21 May 2007. + Restated as described in note 1.* As defined in note 2. Consolidated Statement of Recognised Income and Expensefor the year ended 31 March 2007 2007 2006+ Note £m £m ---- ---- Profit for the year after taxation 2,453 1,184 ----------------Valuation movements- on development properties 5 184 102- on other investments 5 22 92 ---------------- 206 194Gains (losses) on cash flow hedges- Group 93 (26)- Funds and joint ventures 21 2 Actuarial gain (loss) on pension scheme 8 (1) Fair value adjustment on consolidationof former joint venture (7) Tax on items taken directly to equity* 16 (56) -----------------Net gain recognised directly in equity 337 113 Transferred to the income statement (cash flow hedges)- foreign currency derivatives 21 (14)- interest rate derivatives (1) 32 ----------------- 20 18------------------------------------------------------------------------------------------------------Total recognised income and expense for the year 2,810 1,315------------------------------------------------------------------------------------------------------ + Restated as described in note 1. * Includes deferred tax on development property revaluations, where the deferred tax benefit on REIT conversion is £84m. ------------------------------------------------------------------------------------------------------- Reconciliation of Movements in Shareholders' Funds 2007 2006 £m £m ---- ----Capital items- Shares issued 10 4- Purchase of ESOP shares (16) (10)- Adjustment for share and share option awards 18 8- Dividends paid in the year (91) (84) --------------- (79) (82)Total recognised income and expense for the year 2,810 1,315 ---------------Movement in shareholders' funds for the year 2,731 1,233Opening equity shareholders' funds 6,016 4,783------------------------------------------------------------------------------------------------------Closing equity shareholders' funds 8,747 6,016------------------------------------------------------------------------------------------------------ Consolidated Cash Flow Statementfor the year ended 31 March 2007 2007 2006 Note £m £m ---- ---- Cash generated from operations 15 479 455Interest paid (334) (392)Interest received 11 13UK corporation tax paid (10)Foreign tax paid (2) (3)Distributions received: funds and joint ventures 32 25 other investments 18 16 -------- -------Net cash inflow from operating activities 204 104 -------- -------Cash flows from investing activitiesPurchase of investment properties and development expenditure (655) (402)Sale of investment properties 711 1,889Foreign tax paid on property sales (8)Purchase of investments (8) (3)Sale of investments 10Investment in and loans to funds and joint ventures (203) (21)Capital distributions received from funds, joint ventures and other investments 113 277Sale of shares and loans repaid by funds and joint ventures 6 69Purchase of subsidiary companies (net of cash acquired)* (13) (815) -----------------Net cash (outflow) inflow from investing activities (39) 986 -----------------Cash flows from financing activitiesIssue of ordinary shares 10 4Purchase of ESOP shares (16) (10)Dividends paid (91) (84)Issue of Meadowhall Finance PLC securitised debt 840Redemption of MSC (Funding) PLC securitised debt (897)Issue of British Land debentures 263Amounts paid on exchange of British Land debentures (240)Redemption of British Land debentures (20)Issue of BL Superstores Finance PLC securitised debt 753Redemption of BLSSP (Funding) PLC securitised debt (705)Repayment of debt acquired with subsidiary companies (305) (398)Increase (decrease) in bank and other borrowings 354 (669) -----------------Net cash outflow from financing activities (102) (1,109) ----------------- Net increase (decrease) in cash and cash equivalents 63 (19)Cash and cash equivalents at 1 April 2006 128 147------------------------------------------------------------------------------------------------------Cash and cash equivalents at 31 March 2007 191 128------------------------------------------------------------------------------------------------------ Cash and cash equivalents consists of:Cash and short-term deposits 198 133Overdrafts (7) (5)------------------------------------------------------------------------------------------------------ 191 128------------------------------------------------------------------------------------------------------ * Properties of £588m acquired through corporate structures in the year ended 31 March 2007. Notes to the accounts for the year ended 31 March 2007 1. Basis of preparation The financial information set out above does not constitute the company'sstatutory accounts for the years ended 31 March 2007 or 2006, but is derivedfrom those accounts. Statutory accounts for 2006 have been delivered to theRegistrar of Companies and those for 2007 will be delivered following thecompany's annual general meeting. The auditors have reported on those accounts;their reports were unqualified and did not contain statements under section 237(2) or (3) of the Companies Act 1985. The financial statements for the year ended 31 March 2007 have been prepared onthe historical cost basis, except for the revaluation of properties, investmentsand derivatives. The financial statements have also been prepared in accordancewith International Financial Reporting Standards (IFRSs) as adopted by theEuropean Union and therefore comply with Article 4 of the EU IAS Regulation. The accounting policies used are consistent with those contained in the Group's last annual report and accounts for the year ended 31 March 2006, with the exception that following an amendment to IAS 39 - 'Financial Instruments: Recognition and Measurement' revaluation of other investments is now taken toequity rather than recognised directly in the consolidated income statement. This change has no impact on the Group's net assets and the comparative resultshave been restated on a consistent basis. 2. Performance measures 2007 2006 ------------------------ ----------------------------Earnings per share (diluted) Earnings Pence per Earnings Pence per £m share £m share ---- ---- Underlying pre tax profit - income statement 257 228Tax charge relating to underlying profit (31) (43)---------------------------------------------------------------------------------------------------------------Underlying earnings per share 226 43p 185 36p--------------------------------------------------------------------------------------------------------------- Refinancing charges (305) (122)Gains on trading property appropriationsand disposals 71 10Tax and other items (13) 34---------------------------------------------------------------------------------------------------------------EPRA earnings per share (21) (4) p 107 21p---------------------------------------------------------------------------------------------------------------Profit for the period after taxation + 2,453 470 p 1,184 227p--------------------------------------------------------------------------------------------------------------- + Prior year restated as described in note 1. The European Public Real Estate Association(EPRA) issued Best Practices PolicyRecommendations in November 2006, which givesguidelines for performance measures. The EPRAearnings measure excludes investment propertyrevaluations and gains on disposals,intangible asset movements and their relatedtaxation and the REIT conversion charge. Underlying earnings consists of the EPRAearnings measure, with additional companyadjustments. Adjustments have been made toreverse the effects of the refinancing charges(note 6), gains on trading propertyappropriations and disposals and their relatedtaxation, costs relating to REIT conversionand prior year tax items. The weighted average number of shares in issuefor the year was: basic: 520m (2006: 519m);diluted for the effect of share options: 522m(2006: 521m). Basic earnings per share(undiluted) for the year were 472p (2006:228p). Net asset value (NAV) 2007 2006 £m £m ---- ---- Balance sheet net assets 8,747 6,016 Deferred tax arising on revaluation movements, capital allowances and derivatives 168 1,636Mark to market on effective cash flow hedges and related debt adjustments (99) 33Surplus arising on trading and finance lease properties 74Dilution effect of share options 46 43-------------------------------------------------------------------------------------------------------------------EPRA NAV 8,862 7,802-------------------------------------------------------------------------------------------------------------------EPRA NAV per share 1682p 1486p------------------------------------------------------------------------------------------------------------------- The EPRA NAV per share excludes the mark tomarket on effective cash flow hedges andrelated debt adjustments, deferred taxation onrevaluations and is calculated on a fullydiluted basis. At 31 March 2007, the number of shares inissue was: basic: 521m (2006: 519m); dilutedfor the effect of share options: 527m (2006:525m). Total return per share (before charges forREIT conversion and refinancings) of 21.3%represents growth per share in EPRA NAV of196p plus dividends paid of 17p (see note 16),excluding current year refinancing charges of40p and the REIT conversion costs of 64p.Total return per share (before refinancingcharges) for the year ended 31 March 2006 was34.6%. 3. Gross and net rental income 2007 2006 £m £m ---- ----Rent receivable 551 571Spreading of tenant incentives and guaranteed rent increases 37 54Surrender premiums 9 10 -------- -------Gross rental income 597 635 Service charge income 52 55 -------- -------Gross rental and related income 649 690 Service charge expenses (52) (57)Property operating expenses (36) (44)-------------------------------------------------------------------------------Net rental and related income 561 589------------------------------------------------------------------------------- Net rental income for the year ended 31 March 2007 from properties which weresubject to a security interest or held by non recourse companies was £409m(2006: £388m). Property operating expenses relating to investment propertiesthat did not generate any rental income were £3m (2006: £1m). 4. Fees and other income 2007 2006 £m £m ---- ----Performance and management fees 30 29Dividend received from Songbird Estates PLC 18 16Other fees and commission 2 5 -------- -------Underlying 50 50Capital dividend received from Songbird Estates PLC 33------------------------------------------------------------------------------- 83 50------------------------------------------------------------------------------- The £30m (2006: £29m) performance and management fees comprise £17m (2006:£20m) performance fees and £13m (2006: £9m) management fees from funds andjoint ventures. The performance fee receivable from HUT is £27m and £48m for the years ended 31December 2006 and 31 December 2005 respectively, of which the third partyelement available to the Group is £17m and £31m. In total, £16m of the net feehas been recognised in the current year, £19m in 2006 and the remaining £13m isdeferred to later years as it is subject to potential clawback, depending onperformance. If there is no clawback, 50% of the undistributed performance feeis payable in each subsequent year. The net performance fee receivable from HIFfor the year ended 31 December 2006 is £1m (2006: £1m), all of which has beenrecognised in the current year. Following the capital restructuring of Songbird Estates PLC a capital dividendof £33m was received in the year. 5. Net revaluation gains on property and investments 2007 2006 £m £m ---- ----In income statement Revaluation of properties 1,053 1,201Gains on property disposals (including trading propertyappropriations) 115 165Other revaluations and gains (1) 4 -------- ------- 1,167 1,370Share of gains of funds and joint ventures (note 9) 257 378 -------- ------- 1,424 1,748In consolidated statement of recognised income and expenseRevaluation of development properties 184 102Revaluation of investments 22 92------------------------------------------------------------------------------- 1,630 1,942------------------------------------------------------------------------------- 6. Net financing costs 2007 2006 £m £m ---- ----Interest payable on:Bank loans and overdrafts 75 115Other loans 284 274Loans from joint ventures 1Obligations under finance leases 2 2 ------ ------- 361 392Development interest capitalised (37) (12) ------ ------- 324 380 ------ -------Interest receivable on:Deposits and securities (11) (11) Other finance (income) costs: Expected return on pension scheme assets (4) (3)Interest on pension scheme liabilities 4 3 Valuation movements on fair value debt (5) 22Valuation movements on fair value hedges 5 (22) Valuation movements on translation of foreign currency debt (21) 14Hedging reserve recycling 21 (14) ------ -------Net financing expenses 313 369 ------ ------- Refinancing chargesDebenture refinancings 266Meadowhall Shopping Centre securitisation 39Sainsburys Superstores securitisation 99Derivative close-out costs 23 ------ ------- 305 122-----------------------------------------------------------------------------------Net financing costs 618 491----------------------------------------------------------------------------------- Total financing income (41) (50)Total financing expenses 659 541-----------------------------------------------------------------------------------Net financing costs 618 491----------------------------------------------------------------------------------- Interest on development expenditure is capitalised at a rate of 5.5% (2006: 5.6%),with current year tax relief of £8m (2006: £4m). On 29 August 2006 and 20 December 2006 the Group incurred pre tax refinancingcharges of £266m whilst restructuring the existing debentures of the Company andits subsidiary, BL Universal. The Group also refinanced its Meadowhall ShoppingCentre on 19 December 2006 by way of a simplified securitisation, incurring a pretax refinancing charge of £39m. These charges were mainly due to the differencebetween the market and book values of the existing debt. In the previous year the Group incurred a pre tax refinancing charge of £99m inrespect of its securitised Sainsbury's Superstore portfolio and recycled fromequity to the income statement a charge of £23m on closing out derivativesfollowing significant property disposals and consequent debt repayments. 7. Taxation 2007 2006+ £m £m ---- ----Tax (income) chargeCurrent tax UK corporation tax (30%) (8) (3) Foreign tax 3 11 -------- ------- (5) 8Adjustments in respect of prior years 4 (1) -------- -------Total current tax (credit) charge (1) 7REIT conversion charge 277Deferred tax on income and revaluations (1,289) 307-------------------- -------- -------Group total taxation (net) (1,013) 314-------------------- -------- ------- Tax reconciliationProfit on ordinary activities before taxation 1,440 1,498Less: profit attributable to funds and joint ventures (459) (311) -------- -------Group profit on ordinary activities before taxation 981 1,187 -------- ------- Tax on profit on ordinary activities at UK corporation tax rate of 30% (2006: 30%) 294 356 Effects of: REIT conversion charge 277 REIT conversion on investment gains (1,458) (8) REIT conversion on capital allowance provisions (134) (8) REIT exempt income and gains (10) Goodwill impairment 31 72 Tax losses and other timing differences 19 (84) Expenses not deductible for tax purposes (36) (13) Adjustments in respect of prior years 4 (1)-------------------- -------- -------Group total taxation (1,013) 314-------------------- -------- ------- + Restated as described in note 1. Corporation tax payable at 31 March 2007 was £283m (2006: £8masset) as shown in note 12. Deferred tax is calculated ontemporary differences under the liability method using a tax rateof 30% (2006: 30%). The movement on deferred tax is as shownbelow: Deferred taxation Charged (credited) 1 April Acqui- ---------------------- 31 March 2006 sition to income to reserves 2007 £m £m £m £m £m ---- ---- ---- ---- ---- Property and investment revaluations 1,216 151 (1,181) (26) 160Capital allowances 124 2 (126)Other timing differences (29) 23 10 4Intangible assets 20 (5) 15 ------ ------ -------- -------- ------- 1,331 153 (1,289) (16) 179 ------ ------ -------- -------- ------- Under the REIT regime development properties which are soldwithin three years of completion do not benefit from taxexemption. At 31 March 2007 the value of properties underdevelopment is £1,220m and if these properties were to be soldand tax exemption was not available the tax arising would be£100m. No provision is made for this amount as the Group has nocurrent plans to sell these properties. No comparatives are shownas prior to REIT status deferred tax on potential disposals wasprovided in full. 8. Property Investment Development Owner occupied Trading Total £m £m £m £m £m ---- ---- ---- ---- ----Carrying value at 1 April 2006 11,081 597 36 11,714 -------- ------ ------- ------ ------- Additions: corporate acquisitions 912 25 13 950 property purchases 267 58 325 other capital expenditure 145 230 375 -------- ------ ------- ------ ------- 1,324 313 13 1,650 -------- ------ ------- ------ ------- Disposals (666) (1) (667)Reclassifications/appropriations 58 8 50 (48) 68Revaluations: included in income statement 1,049 4 1,053 included in statement of recognised income and expense 184 184Increase in tenant incentives and guaranteed rent uplift balances 45 45 -------- ------ ------- ------ -------Carrying value at 31 March 2007 12,891 1,106 50 14,047 -------- ------ ------- ------ ------- Head lease liabilities (note 13) (30)---------------------- -------- ------ ------- ------ -------Total Group property portfolio valuation 14,017---------------------- -------- ------ ------- ------ ------- At 31 March 2007, the book value of owner-occupied property is £50m (2006: £nil)after charging £nil (2006: £nil) depreciation to the income statement for theyear. At 31 March 2007, the Group book value of properties of £14,047m (2006:£11,714m) comprises freeholds of £13,118m (2006: £11,017m); virtual freeholds of£106m (2006: £109m); long leaseholds of £820m (2006: £577m) and short leaseholdsof £3m (2006: £11m). The historical cost of properties was £8,879m (2006:£7,698m). The Group's total property portfolio was valued by external valuers on the basisof Market Value in accordance with the Appraisal and Valuation Standardspublished by The Royal Institution of Chartered Surveyors. Knight Frank LLPvalued properties to an aggregate value of £14,015m (2006: £11,750m); othervaluers £2m (2006: £3m). During the year trading properties were appropriated to investment properties atmarket value resulting in £68m being recognised in the income statement. Properties valued at £9,194m (2006: £7,709m) were subject to a security interestand other properties of non-recourse companies amounted to £128m (2006: £196m). Cumulative interest capitalised in investment and development properties amountsto £28m and £46m (2006: £40m and £13m) respectively. 9. Funds and joint ventures British Land's summary share of profits of funds and joint ventures 2007 2006 £m £m ---- ----Gross rental income 109 116Service charge income 6 7--------------------- ----- -------Gross rental and related income 115 123--------------------- ----- -------Net rental and related income 100 112Other income and expenditure (6) (6)Net financing costs (57) (67) ----- -------Underlying profit before taxation 37 39 Net valuation gains (including profits on disposals) 257 378Goodwill impairment (5) ----- -------Profit on ordinary activities before taxation 289 417 REIT conversion charge (48)Current tax (19) (9)Deferred tax 237 (97)-------------------------- ----- -------Profit on ordinary activities after taxation 459 311-------------------------- ----- ------- Summary movement for the year of the investments in funds and joint ventures Equity Loans Total £m £m £m ---- ---- ----At 1 April 2006 1,216 18 1,234Additions 170 38 208Disposals (191) (6) (197)Share of profit after taxation 459 459Distributions and dividends: capital (80) (80) revenue (32) (32)Hedging movements 18 18---------------- ------ ------ -------At 31 March 2007 1,560 50 1,610---------------- ------ ------ ------- At 31 March 2007, the total investment in funds and joint ventures of £1,610m(2006: £1,234m) comprises £830m (2006: £599m) of investment in funds being HUT,HIF and PREF (less REIT conversion charge) and £780m (2006: £635m) investmentin joint ventures, being the total of £770m (2006: £589m) and CLOUT of £10m(2006: £46m). Distributions in the year include the receipt of £43m (£42m capital) fromCLOUT; £38m (capital) from Tesco BL Property Partnership; £25m from HUT and £2meach from BL Davidson, HIF and PREF. At 31 March 2007 the Group's share of funds and joint ventures properties is£2,886m (2006: £2,661m) of which £153m (2006: £69m) is carried at directors'valuation; external net debt is £1,238m (2006: £1,124m) and the mark to marketadjustment for external debt is £8m asset (2006: £2m liability). 9. Funds and joint ventures continued: Funds' summary financial statements All disclosures have been restated to British Landaccounting policies under IFRS excluding performance and management fees due to the Group. City of Pillar London Hercules Hercules Retail Office Group Group Unit Income Europark Unit share share Trust Fund Fund Trust Other 2007 2006 ------- ------- ------- ------ ------ ------- ------ Percentage interest: - 2007 36.27% 26.12% 22.35% * 35.94% - 2006 34.64% 26.12% 34.16% 35.94% Date established 22 Sep 16 Sep 17 Mar 6 Nov 2000 2004 2004 2000 Year Year Year YearAccounting period ended ended ended ended 31 Mar 31 Mar 31 Dec 31 Mar 2007 2007 2006 2007 £m £m £m £m £m £m £m ---- ---- ---- ---- ---- ---- ----Summarised incomestatements Gross rental and related 116 7 20 3 49 35income -------------------- ------- ------- ------- ------ ------ ------- ------ Net rental and 107 7 16 3 45 34related incomeOther income and (5) (1) (6) (1) (4) (2)expenditureNet external (63) (1) (7) 1 (24) (20)interest payable ------- ------- ------- ------ ------ ------- ------Underlying profit before 39 5 3 3 17 12taxation Surplus on 321 14 29 126 169revaluationDisposal of fixed 10 2 (2) 18 9 6assetsGoodwill impairment (2) (2) ------- ------- ------- ------ ------ ------- ------Profit on ordinary 368 21 30 21 150 187activities beforetaxation REIT conversion (25) (25)chargeCurrent tax (9) (1) (2) (1) (4) (4)Deferred tax 315 5 3 116 (37) ---------------- ------- ------- ------- ------ ------ ------- ------Profit on ordinary 674 25 31 20 (25) 237 146activities after taxation---------------- ------- ------- ------- ------ ------ ------- ------ Summarised balance sheets Investment 3,408 153 340 1,352 1,225properties ------- ------- ------- ------ ------ ------- ------ Current assets 28 1 24 120 59 71Cash and deposits 29 3 8 12 17 20 ------- ------- ------- ------ ------ ------- ------Gross assets 3,465 157 372 132 1,428 1,316 ------- ------- ------- ------ ------ ------- ------ Current liabilities (52) (3) (18) (36) (25) (61) (54)Bank debt falling due (6) (69) (26) (7)within one yearBank debt falling due after (224) (198) (126) (156)one yearSecuritised debt (1,013) (367) (332)Deferred tax (7) (24) (8) (122) ------- ------- ------- ------ ------ ------- ------Gross liabilities (1,296) (9) (240) (105) (25) (588) (671)---------------- ------- ------- ------- ------ ------ ------- ------Net external assets 2,169 148 132 27 (25) 840 645---------------- ------- ------- ------- ------ ------ ------- ------ Represented by:Investors' capital 2,169 148 132 27 (25) 840 645---------------- ------- ------- ------- ------ ------ ------- ------Total investment 2,169 148 132 27 (25) 840 645---------------- ------- ------- ------- ------ ------ ------- ------ Capital commitments 65 5 154 59 14---------------- ------- ------- ------- ------ ------ ------- ------ * When the fund isfully invested, thiswill reachapproximately 40%. 9. Funds and jointventures continued:Joint ventures' summaryfinancial statements All disclosures have been restated to British Land accounting policiesunder IFRS. Retail British Property BLT Land BL Aqua Limited Properties Property Holdings Limited Partnership Ltd Partnership Ltd Partnership --------- -------- -------- -------- --------All joint ventures areheld equally on a 50:50basis Land SecuritiesPartners Group PLC Tesco plc Tesco plc Tesco Tesco plc plc Date established March November February November March 2004 1996 1998 1999 2007 Accounting period Year Year Year Year 1 month ended ended ended ended ended 31 Mar 31 Mar 31 Mar 31 Mar 31 Mar 2007 2007 2007 2007 2007Summarised income £m £m £m £m £mstatements ---- ---- ---- ---- ---- Gross rental and related 49 17 8 27 1income ------------------- --------- -------- -------- -------- --------Net rental and related 29 16 7 26 1incomeOther income and (1) (1)expenditureNet interest - External (22) (10) (3) (17) (1)- Shareholders 1 --------- -------- -------- -------- --------Net interest (payable) (22) (9) (3) (17) (1)receivable --------- -------- -------- -------- --------Underlying profit before 6 7 4 8taxationSurplus on revaluation 13 53 23 69Disposal of fixed assets 5 30Profit on propertytradingGoodwill impairment (5) --------- -------- -------- -------- --------Profit (loss) on 19 65 57 77 (5)ordinary activitiesbefore taxationREIT conversion chargeCurrent tax 7 (12) (15) (2)Deferred tax (11) (3) 2 (15)------------------- --------- -------- -------- -------- --------Profit on ordinary 15 50 44 60 (5)activities after taxation------------------- --------- -------- -------- -------- -------- Summarised balancesheets Investment properties 714 363 109 705 652Development properties --------- -------- -------- -------- --------Total properties 714 363 109 705 652Current assets 6 20 9 20 5Upstream loans to joint 17venture shareholdersCash and deposits 13 40 3 22 8 --------- -------- -------- -------- --------Gross assets 733 440 121 747 665 --------- -------- -------- -------- --------Current liabilities (7) (18) (22) (29) (10)Bank debt falling duewithin one yearBank debt falling due (185) (45) (314) (487)after one yearSecuritised debt (427)DebenturesObligations under (11)finance leasesDeferred tax (74) (52) (14) (96) --------- -------- -------- -------- --------Gross liabilities (519) (255) (81) (439) (497)------------------- --------- -------- -------- -------- --------Net external assets 214 185 40 308 168------------------- --------- -------- -------- -------- -------- Represented by:Shareholder loans 52Ordinary shareholders' 214 185 40 308 116funds / Partners' capital------------------- --------- -------- -------- -------- --------Total investment 214 185 40 308 168------------------- --------- -------- -------- -------- -------- Capital commitments 17------------------- --------- -------- -------- -------- -------- 9. Funds and joint venturescontinued: Joint ventures'summary financial statements All disclosures have been restated to British Landaccounting policies underIFRS. Group Group BL Fraser BL Davidson share share Ltd Ltd * Other + 2007 2006 --------- ---------- --- ------ ---- ------ ------ All joint ventures are heldequally on a 50:50 basis Manny Davidson,Partners House of his family & Fraser plc trusts Date established July September 1999 2001 Accounting period Year 5 months ended ended 31 Mar 31 Aug 2007 2006Summarised income statements £m £m £m £m £m ---- ---- ---- ---- ---- Gross rental and related 14 15 1 66 88income ---------------------- --------- ---------- ------ ------ ------Net rental and related income 13 14 2 55 78Other income and expenditure (1) (1) (2) (4)Net interest - External (9) (6) (1) (35) (48)- Shareholders 2 2 1 --------- ---------- ------ ------ ------Net interest (payable) (9) (6) 1 (33) (47)receivable --------- ---------- ------ ------ ------Underlying profit before 4 7 2 20 27taxationSurplus on revaluation 10 23 2 98 194Disposal of fixed assets 4 21Profit on property trading 3 3 9Goodwill impairment (3) --------- ---------- ------ ------ ------Profit (loss) on ordinary 14 30 11 139 230activities before taxationREIT conversion charge (23) (23)Current tax (1) (2) (3) (15) (5)Deferred tax 4 (5) 135 121 (60)---------------------- --------- ---------- ------ ------ ------Profit on ordinary activities 17 23 120 222 165after taxation ---------------------- --------- ---------- ------ ------ ------ Summarised balance sheets Investment properties 298 42 1,463 1,425Development properties 77 77 4 --------- ---------- ------ ------ ------Total properties 298 119 1,540 1429Current assets 1 24 54 65Upstream loans to joint 20 28 24venture shareholdersCash and deposits 5 17 63 47 --------- ---------- ------ ------ ------Gross assets 304 180 1,685 1,565 --------- ---------- ------ ------ ------Current liabilities (7) (50) (97) (98)Bank debt falling due within (4) (1) (3) (17)one yearBank debt falling due after (126) (17) (595) (401)one yearSecuritised debt (214) (214)Debentures (57)Obligations under finance (2) (6) (8)leasesDeferred tax (26) 131 (181) --------- ---------- ------ ------ ------Gross liabilities (165) 63 (915) (976)---------------------- --------- ---------- ------ ------ ------Net external assets 139 243 770 589---------------------- --------- ---------- ------ ------ ------ Represented by:Shareholder loans 1 23 50 18Ordinary shareholders' funds / 138 220 720 571Partners' capital ---------------------- --------- ---------- ------ ------ ------Total investment 139 243 770 589---------------------- --------- ---------- ------ ------ ------ Capital commitments 2 11 33---------------------- --------- ---------- ------ ------ ------ * Became a subsidiary witheffect from 31 August 2006.+ Comprises smaller jointventures including Zaragozaand Group adjustments. Amountsare shown at the relevantpercentage for Group share. 10. Other non-current assets Other Intangible investments assets Goodwill £m £m £m ---- ---- ----At 1 April 2006 248 65Additions 7Disposals (10)On corporate acquisitions 106Revaluation 22Amortisation (15)Impairment (106)-------------------------- -------- --------- --------At 31 March 2007 267 50 0-------------------------- -------- --------- -------- Other investments includes British Land's investment in Songbird Estates PLC whichwas acquired for £98m in June 2004 and is valued by a major independent firm ofChartered Accountants on the basis of market value at £255m as at 31 March 2007(2006: £233m). The investment represents 17.8% of the share capital of SongbirdEstates PLC which in turn owns 60.8% of Canary Wharf Group. In view of the controlrights of other shareholders, the investment is not equity accounted. Intangible assets relate to fund management contracts which are amortised over theexpected remaining life of each contract. The original fair value was £75m withaccumulated amortisation at 31 March 2007 being £25m (2006: £10m). On 13 July 2006 the Group acquired 100% of the issued share capital of ProjectSunrise Limited, which owns seven B&Q stores, for £199m. On 31 August 2006 theGroup acquired the outstanding 50% ownership of the BL Davidson joint venture for£258m and on 22 December 2006 the Group acquired 100% of the issued share capitalof 103 Colmore Row B.V, which owns a development site in Birmingham, for £25m. Book value acquired -------------------- Fair BL B&Q Colmore Fair value value Davidson portfolio Row adjustment to Group £m £m £m £m £m ---- ---- ---- ---- ---- Properties 362 198 25 3 588Investment in joint ventures 1 1Cash 3 3Borrowings (106) (197) (9) (9) (321)Other net current liabilities (9) (1) (10) -------- -------- -------- --------- -------- 251 16 (6) 261Deferred tax (61) (29) (1) (91)Goodwill 75 31 106 -------- 276 -------- Satisfied by:Cash paid 20Issue of loan notes 256 --------Total consideration 276 Repayment of loans 206--------------------- -------- -------- -------- --------- --------Total amounts payable 482--------------------- -------- -------- -------- --------- -------- The goodwill generated on the corporate acquisitions is a result primarily of thedeferred tax held on balance sheet as required by IFRS. Following the conversion bythe Group to a REIT this deferred tax is not expected to crystallise and has beeneliminated, and as a consequence the associated goodwill has been fully impaired. 11. Debtors 2007 2006 £m £m ---- ----Trade and other debtors 95 72Prepayments and accrued income 16 12Corporation tax 8Defined benefit pension scheme asset 9(non-current)Interest rate derivatives* 88 26----------------------------- -------- ------- 208 118----------------------------- -------- ------- * Includes contracted cash flow with a maturity greater than one yearat fair value. Trade and other debtors are shown after deducting a provision for badand doubtful debts of £5m (2006: £11m). The charge to the incomestatement was £2m (2006: £3m). The directors consider that the carrying amount of trade and otherdebtors approximates their fair value. There is no concentration ofcredit risk with respect to trade debtors as the Group has a largenumber of customers, who are paying their rental in advance. 12. Creditors 2007 2006 £m £m ---- ----Trade creditors 85 67Amounts owed to joint ventures 32 26Corporation tax 283Other taxation and social security 15 7Accruals and deferred income 312 269Interest rate derivatives* 19 48----------------------------- -------- ------- 746 417----------------------------- -------- ------- * Includes contracted cash flow with a maturity greater than one yearat fair value. Trade payables are interest free and have settlement dates within oneyear. The directors consider that the carrying amount of trade andother payables approximates their fair value. 13. Other non-current liabilities 2007 2006 £m £m ---- ----Obligations under finance leases 30 28Minority interest 7 5Defined benefit pension scheme liability 11----------------------------- -------- ------- 37 44----------------------------- -------- ------- 14. Net debt 2007 2006 Footnote £m £m ---- ----Secured on the assets of the Group------------------------------------Class A1 4.986% Bonds 2037 1.1, 2 602Class A2 Floating Rate Bonds 2037 1.1, 2 60Class B 4.988% Bonds 2037 1.1, 2 174Class A4 4.821% Bonds 2036 1.2 396 3965.920% Secured Notes 2035 1.3, 3 62Class C2 5.098% Bonds 2035 1.2 217 217Class B 4.999% Bonds 2033 1.2 365 365Class A3 4.851% Bonds 2033 1.2 174 175Class A1 Floating Rate Bonds 2032 1.2 224 224Class A2 4.949% Bonds 2031 1.2 302 308Class A2 4.482% Bonds 2030 1.4 257 257Class M1 Floating Rate Bonds 2030 1.4 82 83Class B2 5.270% Bonds 2030 1.4 239 239Class B3 5.578% Bonds 2030 1.4 49 49Class C1 Floating Rate Bonds 2030 1.4 70 69Class D1 Floating Rate Bonds 2030 1.4 43 53Class D Floating Rate Bonds 2025 1.2 144 147Class C1 Floating Rate Bonds 2022 1.2 234 2345.264% First Mortgage Debenture Bonds 4 32720355.0055% First Mortgage Amortising 4 106Debentures 20358.875% First Mortgage Debenture Bonds 4 24720355.357% First Mortgage Debenture Bonds 4 30720289.375% First Mortgage Debenture Stock 4 197202810.50% First Mortgage Debenture Stock 4 132019/2411.375% First Mortgage Debenture Stock 4 202019/249.125% First Mortgage Debenture Stock 1.5 4020206.75% First Mortgage Debenture Bonds 1.6, 4 205 20520206.125% First Mortgage Debenture Stock 1.5 45201410.3125% First Mortgage Debenture Stock 1.5 4520116.75% First Mortgage Debenture Bonds 1.6, 4 100 1032011Floating Rate Secured Loan Notes 2035 5 256Loan notes 5 5 -------- -------- 5,068 3,668 -------- -------- Unsecured-----------Class A1 5.260% Unsecured Notes 2035 1.3, 3 586Class B 5.793% Unsecured Notes 2035 1.3, 3 97Class C Fixed Rate Unsecured Notes 2035 1.3, 3 87Class A2 5.555% Unsecured Notes 2013 1.3, 3 35 -------- -------- 805 -------- -------- 5.50% Senior Notes 2027 6 986.30% Senior US Dollar Notes 2015 7 78 8810.25% Bonds 2012 2 27.35% Senior US Dollar Notes 2007 7 92Bank loans and overdrafts 1,425 1,049 -------- -------- 1,603 2,036 -------- --------Gross debt 8 6,671 5,704 -------- -------- Interest rate derivatives: liabilities 19 48Interest rate derivatives: assets (88) (26) -------- -------- 6,602 5,726Cash and short-term deposits 9 (198) (133)--------------------------- -------- -------- --------Net debt 6,404 5,593--------------------------- -------- -------- -------- 14. Net debt (continued) 2007 2006 £m £m ---- ---- 1 These borrowings are obligations of ring-fenced, special purpose companies, with no recourse to other companies or assets in the Group: 1.1 Meadowhall Finance PLC 836 1.2 Broadgate Financing PLC 2,056 2,066 1.3 MSC (Funding) PLC 867 1.4 BL Superstores Finance PLC 740 750 1.5 BLD Property Holdings Ltd 130 1.6 BL Universal PLC 308 2 A total of £840m Bonds were issued by Meadowhall Finance PLC on 19 December 2006. 3 All the outstanding Notes of MSC (Funding) PLC were redeemed on 19 December 2006. 4 During 2006 the Group's existing Debentures were restructured to form a single £1bn Debenture pool secured on £1.8bn of assets. 5 A total of £256m Loan Notes were issued on 31 August 2006 to finance the acquisition of the remaining 50% in BL Davidson Limited. 6 On 30 January 2007 £98m 5.50% Senior Notes 2027 were issued by the Company. 7 Principal and interest on these borrowings were fully hedged into Sterling at the time of issue. 8 The principal amount of gross debt at 31 March 2007 was £6,684m (2006: £5,716m). Included in this, the principal amount of secured borrowings and other borrowings of non-recourse companies was £5,061m (2006: £4,470m). 9 Cash and deposits not subject to a security interest amount to £27m (2006: £36m). Interest rate profile - including effect of derivatives 2007 2006 £m £m ---- ---- Fixed rate 6,061 5,203Capped rate 100 100Variable rate (net of cash) 243 290------------------------------------------------ -------- -------Net debt 6,404 5,593------------------------------------------------ -------- ------- All the above debt is effectively Sterling based except for £111m (2006:£32m) of Euro debt of which £102m (2006: £nil) is fixed and the balancefloating. At 31 March 2007 the weighted average interest rate of theSterling fixed rate debt is 5.20% (2006: 5.81%) and the weighted averageperiod for which the rate is fixed is 15.1 years (2006: 16.0 years). Theweighted average interest rate for the Euro fixed rate debt is 4.50% andthe weighted average period for which the rate is fixed is 8.9 years.The floating rate debt is set for periods of the Company's choosing atthe relevant LIBOR (or similar) rate. Maturity analysis of net debt 2007 2006 £m £m ---- ----Repayable:within one year and on demand 54 129 -------- ------- between:one and two years 122 64two and five years 1,422 1,348five and ten years 1,212 576ten and fifteen years 797 746fifteen and twenty years 906 835twenty and twenty five years 1,244 854twenty five and thirty years 914 1,152 -------- ------- 6,617 5,575 -------- -------Gross debt 6,671 5,704 -------- -------Interest rate derivatives (69) 22Cash and short term deposits (198) (133)------------------------------------------------ -------- -------Net debt 6,404 5,593------------------------------------------------ -------- ------- Total borrowings where any instalments are due after five years is£3,260m (2006: £3,120m). 14. Net debt (continued) Maturity of committed undrawn borrowing facilities 2007 2006 £m £m ---- ----Expiring: within one year 50 822 between: one and two years 40 25two and three years 130 554three and four years 707 118four and five years 322 763over five years 408--------------------------------------- ------- --------Total 1,657 2,282--------------------------------------- ------- -------- The above facilities are those freely available to be drawnfor Group purposes. There are additional undrawn 364 dayrevolving liquidity facilities of £185m, £115m and £75m whichare only available for requirements of the Broadgate, BLSuperstores and Meadowhall securitisations, respectively. Comparison of market values and book values at 31 March 2007 Market Book Value Value Difference £m £m £m ---- ---- ---- Securitisations 3,552 3,632 (80)Debentures and unsecured bonds 1,366 1,353 13Bank debt and other floating rate debt 1,686 1,686Cash and short-term deposits (198) (198) -------- ------- -------- 6,406 6,473 (67) -------- ------- -------- Other financial (assets) liabilities:interest rate derivative assets (88) (88)interest rate derivative liabilities 19 19 -------- ------- -------- (69) (69)--------------------------------------- -------- ------- --------Total 6,337 6,404 (67)--------------------------------------- -------- ------- -------- Short-term debtors and creditors have been excluded from thedisclosures. The fair values of fixed rate debt have been established byobtaining quoted market prices from brokers. Where marketprices are not available discounted cash flow calculationshave been carried out on behalf of the Group by BarclaysCapital. The bank debt has been valued assuming it could berenegotiated at contracted margins. The derivatives have beenvalued using market data by the independent treasury adviser,Record Currency Management. 15. Notes to the cash flow statement Reconciliation of profit on ordinary activities before tax to cashgenerated from operations 2007 2006+ £m £m ---- ----Profit on ordinary activities before tax 1,440 1,498 Non-cash movements:Net valuation gains on investment properties Revaluation of properties (1,053) (1,201) Gains on property disposals (including trading property (115) (164) appropriations) Other revaluations and gains 1 (4) ------- ------ (1,167) (1,369) ------- ------ Share of profits after tax of funds and joint ventures (459) (311)Spreading of tenant incentives, guaranteed rent uplifts and letting fees (36) (55)Goodwill impairment 106 240Depreciation and amortisation 15 11Share options, share awards and pension funding 20 20 ------- ------ (1,521) (1,464) ------- ------ Changes to working capital and other cash movements:Net financing costs 313 369Refinancing charges (as described in note 6) 305 122Dividends received (51) (16)Pension funding (10) (6)Increase in debtors (29) (9)Increase (decrease) in creditors 32 (39) ------- ------ 560 421---------------------------------------------- ------- ------Cash generated from operations 479 455---------------------------------------------- ------- ------ + Restated as described in note 1. 16. Dividend The proposed final dividend of 8.25 pence per share, totalling £43m(2006: 11.8 pence per share, totalling £61m) was approved by the Boardon 21 May 2007 and is payable on 17 August 2007 to shareholders on theregister at the close of business on 20 July 2007. The first quarterlydividend of 6.5 pence per share, totalling £34m, was paid on 18 May 2007. The reconciliation of movements in shareholders' funds shows totaldividends paid in the year of £91m (17.4 pence per share) comprising the2007 interim dividend of £30m (5.6 pence per share) paid on 16 February2007, and the 2006 final dividend of £61m (11.8 pence per share) paid on18 August 2006. 17. Contingent liabilities There were no contingent liabilities of the Parent for guarantees tothird parties at 31 March 2007 (2006: £Nil). TPP Investments Limited, a wholly owned ring-fenced special purposesubsidiary, is a partner in The Tesco British Land Property Partnershipand, in that capacity, has entered into a secured bank loan under whichits liability is limited to £23m (2006: £44m) and recourse is only tothe partnership assets. 18. Share capital and reserves Number Share Share Other Retained of capital premium reserves earnings Total shares m £m £m £m £m £m --- ---- ---- ---- ---- ---- At 1 April 2005 - as previously 518 130 1,249 12 3,392 4,783publishedRestatement (note 1) 32 (32)---------------------- ------- ------ ------- ------- ------- -------Restated position at 1 April 518 130 1,249 44 3,360 4,7832005 Total recognised income and 132 1,183 1,315expenseShare issues 1 4 4Purchase of ESOP shares (10) (10)Adjustment for share and share option awards 8 8Dividends paid in the year (84) (84)---------------------- ------- ------ ------- ------- ------- -------At 31 March 2006 519 130 1,253 176 4,457 6,016---------------------- ------- ------ ------- ------- ------- ------- At 1 April 2006 519 130 1,253 176 4,457 6,016 Total recognised income and 356 2,454 2,810expenseShare issues 2 10 10Purchase of ESOP shares (16) (16)Adjustment for share and share option awards 18 18Dividends paid in the year (91) (91)---------------------- ------- ------ ------- ------- ------- -------At 31 March 2007 521 130 1,263 532 6,822 8,747---------------------- ------- ------ ------- ------- ------- ------- The authorised share capital is 800,000,000 25p ordinary shares (2006: 800,000,000). Other reserves Other reserves comprise the following reserve accounts: (i) Hedging reserve - The hedging reserve comprises the effective portion of the cumulative net change in the fair value of cash flow and foreign currency hedging instruments. (ii) Translation reserve - The translation reserve comprises all foreign exchange differences arising from the translation of the financial statements of foreign operations as well as the translation of the liabilities that hedge the Company's net investment in a foreign subsidiary. (iii) Revaluation reserve - The revaluation reserve relates to development properties and other investments. (iv) Equity reserve - represented the equity component of the irredeemable convertible bonds, which were converted during the year ended 31 March 2005, net of the related deferred tax asset. Table A--------- Summary income statement based on proportionalconsolidationfor the year ended 31 March 2007 The following pro forma information is unaudited and does not formpart of the consolidated primary statements or the notes thereto.It presents the results of the Group, with funds and joint venturesconsolidated on a line by line, i.e. proportional basis. Theunderlying profit before tax and total profit after tax are thesame as presented in the consolidated income statement. Q4 Q3 Q2 Q1 3 months ended Year ended --------------------------------------- ------------ 31 Mar 31 Dec 30 Sep 30 Jun 31 Mar 31 Mar 2007 2006 2006 2006 2007 2006+ £m £m £m £m £m £m ---- ---- ---- ---- ---- ----Gross rental income 173 180 177 176 706 751 ------ ------ ------ ------ ------- ------ Net rental income 162 169 166 164 661 701 Fees and other income 7 10 10 24 51 51 Administrative expenses (17) (22) (23) (23) (85) (88) Net interest costs (89) (93) (96) (92) (370) (436) ------ ------ ------ ------ ------- ------Underlying profit before taxation 63 64 57 73 257 228 Debt refinancing costs (77) (228) (305) (122) Net valuation gains (incls profits on 304 310 355 455 1,424 1,748disposals) Amortisation of intangible asset (4) (3) (4) (4) (15) (10) Songbird dividend (capital) 33 33 Goodwill impairment * (3) (106) (2) (111) (240) REIT conversion costs * (13) (13) ------ ------ ------ ------ ------- ------Profit on ordinary activities before 393 175 180 522 1,270 1,604taxation Tax charge relating to underlying (4) (1) (12) (14) (31) (43)profit REIT conversion charge * (325) (325) Deferred tax benefit * 1,673 1,673 Other taxation (3) (33) (5) (93) (134) (377)---------------------------- ------ ------ ------ ------ ------- ------Profit for the period after taxation 386 1,489 163 415 2,453 1,184---------------------------- ------ ------ ------ ------ ------- ------ Underlying earnings per share - 11p 12p 9p 11p 43p 36pdiluted basis ---------------------------- ------ ------ ------ ------ ------- ------ + Restated as described in note 1. The underlying earnings per share is calculated on underlying pre tax profit of £257m (2006: £228m),tax attributable to underlying profits of £31m (2006: £43m) andfully diluted shares numbering 522m (2006: 521m). Gross rentalincome excludes service charge receivable. -------------------------------------------------------------------------- ------ * Effect of REIT conversion £m ---- Deferred tax benefit +on investment properties 1,673on development properties (included in the consolidated statement of recognised income and 84expense)Goodwill impairment (106) ------Elimination of deferred tax, net of 1,651goodwillREIT conversion charge and costs (338)-------------------------------------------------------------------------- ------Net effect of REIT conversion 1,313-------------------------------------------------------------------------- ------ + The deferred tax benefit shown is the deferred tax which wouldhave been recorded at 31 December 2006 had the Group not convertedto REIT status. Table A (continued)--------------------- Pro forma summary balance sheets based on proportionalconsolidation The following pro forma information is unaudited and doesnot form part of the consolidated primary statements orthe notes thereto. It presents the composition of the EPRA netassets of the Group, with share of funds and jointventure assets and liabilities included on a line byline, i.e. proportional basis and assuming full dilution. 2007 2006 £m £m ---- ---- Retail properties 10,173 8,775Office properties 6,165 5,200Other properties 565 439 ------- -------Total properties 16,903 14,414 Other investments 267 250Intangible assets 50 65Other net liabilities (617) (243)Net debt (7,741) (6,684)------------------------------------- ------- -------EPRA NAV 8,862 7,802------------------------------------- ------- -------EPRA NAV per share (note 2) 1682 p 1486 p------------------------------------- ------- ------- Calculation of EPRA NNNAV per share EPRA NAV 8,862 7,802 Deferred tax arising on revaluation movements, (168) (1,530) capital allowances and derivativesMark to market on effective cash flow hedges and related 99 (33)debt adjustmentsMark to market on debt 75 (386)Tax relief arising thereon 125------------------------------------- ------- -------EPRA NNNAV 8,868 5,978------------------------------------- ------- -------EPRA NNNAV per share 1683 p 1139 p------------------------------------- ------- ------- EPRA NNNAV is the EPRA NAV adjusted to reflect the fairvalue of debt and derivatives and to include the deferredtaxation on revaluations. Total property valuations including share of funds andjoint ventures 2007 2006 £m £m ---- ----British Land Group 14,017 11,753 Share of funds and joint venturesInvestment properties 2,815 2,651Development properties 77Trading and finance lease properties at valuation 18Head lease liabilities (6) (8) ------- ------- 2,886 2,661------------------------------------- ------- -------Total property portfolio valuation 16,903 14,414------------------------------------- ------- ------- This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
British Land