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Half Yearly Report - Part 2

13th Nov 2013 07:00

RNS Number : 8655S

British Land Co PLC

13 November 2013

Consolidated Income Statement
for the period ended 30 September 2013

Year ended31 March 2013							Six months ended30 September 2013				Six months ended30 September 2012
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



329		329		Gross rental and related income		3	179		179		165		165

281		281		Net rental and related income		3	148		148		142		142

15		15		Fees and other income		3	7		7		8		8

130	(63)	67		Joint ventures and funds (see also below)			63	89	152		63	(19)	44

(72)		(72)		Administrative expenses			(36)		(36)		(37)		(37)

	88	88		Net valuation movement (includes profits & losses on disposals)		3		204	204			6	6

				Net financing costs

21	2	23		- financing income			5	3	8		13	3	16
(101)	(41)	(142)		- financing charges			(41)	(20)	(61)		(52)	(18)	(70)

(80)	(39)	(119)				3	(36)	(17)	(53)		(39)	(15)	(54)


274	(14)	260		Profit on ordinary activities before taxation			146	276	422		137	(28)	109

				Taxation

	8	8		- current tax income (expense)		3		4	4			1	1
	16	16		- deferred tax income (expense)		3		1	1			2	2

	24	24				3		5	5			3	3

		284		Profit for the period after taxation attributable to shareholders of the Company					427				112

		31.7	p	Earnings per share:	basic	2			43.0	p			12.6	p
		31.5	p		diluted	2			42.8	p			12.5	p



				Share of results of joint ventures and funds
130		130		Underlying profit before taxation			63		63		63		63
	(62)	(62)		Net valuation movement (includes profits & losses on disposals)				83	83			(19)	(19)
	(4)	(4)		Non-recurring items								(3)	(3)
	2	2		Current tax income (expense)				(1)	(1)			3	3
	1	1		Deferred tax income (expense)				7	7
130	(63)	67				5	63	89	152		63	(19)	44

*	As defined in note 2

Consolidated Statement of Comprehensive Income
for the period ended 30 September 2013

	Year		Six months	Six months
	ended		ended	ended
	31 March		30 September	30 September
	2013		2013	2012
	Audited		Unaudited	Unaudited
	£m		£m	£m


	284	Profit for the period after taxation	427	112

		Other comprehensive income:
		Items that will not be reclassified subsequently to profit or loss:
	(2)	Net actuarial loss on pension scheme	(2)	(1)

	(2)		(2)	(1)
		Items that may be reclassified subsequently to profit or loss:
		Gains (losses) on cash flow hedges
	(16)	- Group	11	(32)
	(6)	- Joint ventures and funds	35	(17)

	(22)		46	(49)

		Transferred to (from) the income statement (cash flow hedges)
	(5)	- foreign currency derivatives	6	1
	26	- interest rate derivatives	7	13

	21		13	14


		Exchange differences on translation of foreign operations
	(4)	- hedging and translation	(1)	9
	6	- other	1	(7)

	2			2

	(1)	Other comprehensive (loss) income for the period	57	(34)



	283	Total comprehensive income for the period	484	78

Consolidated Balance Sheet
at 30 September 2013

31 March				30 September		30 September
2013				2013		2012
Audited				Unaudited		Unaudited
£m			Note	£m		£m
		Assets
		Non-current assets
5,488		Investment and development properties	4	5,950		5,389
42		Owner-occupied property	4	45		42
5,530				5,995		5,431

		Other non-current assets
2,336		Investments in joint ventures and funds	5	2,676		2,308
76		Other investments	6	124		48
92		Interest rate derivative assets	7	35		105
8,034				8,830		7,892

		Current assets
40		Trading properties	4	242		49
60		Debtors		41		113
		Liquid investments	7			100
135		Cash and short-term deposits	7	112		107
235				395		369

8,269		Total assets		9,225		8,261

		Liabilities
		Current liabilities
(44)		Short-term borrowings and overdrafts	7	(772)		(252)
(259)		Creditors		(241)		(230)
(17)		Corporation tax		(8)		(26)
(320)				(1,021)		(508)

		Non-current liabilities
(2,134)		Debentures and loans	7	(1,989)		(2,507)
(26)		Other non-current liabilities		(30)		(29)
(16)		Deferred tax liabilities		(15)		(30)
(86)		Interest rate derivative liabilities	7	(64)		(110)
(2,262)				(2,098)		(2,676)

(2,582)		Total liabilities		(3,119)		(3,184)

5,687		Net assets		6,106		5,077

		Equity
249		Share capital		252		226
1,242		Share premium		1,250		1,242
213		Merger reserve		213
(163)		Other reserves		(104)		(197)
4,146		Retained earnings		4,495		3,806

		Total equity attributable to shareholders
5,687		of the Company		6,106		5,077

596	p	EPRA NAV per share*	2	623	p	596	p



* As defined in note 2

Consolidated Statement of Cash Flows
for the period ended 30 September 2013


Year			Six months	Six months
ended			ended	ended
31 March			30 September	30 September
2013			2013	2012
Audited			Unaudited	Unaudited
£m		Note	£m	£m


266	Rental income received from tenants		145	125
19	Fees and other income received		10	11
(88)	Operating expenses paid to suppliers and employees		(48)	(44)
197	Cash generated from operations		107	92

(113)	Interest paid		(64)	(61)
31	Interest received		13	10
1	UK corporation tax received (paid)			(1)
74	Distributions received from joint ventures and funds	5	31	62
190	Net cash inflow from operating activities		87	102

	Cash flows from investing activities
(230)	Development and other capital expenditure		(94)	(93)
(442)	Purchase of investment properties		(586)	(47)
699	Sale of investment properties		125	77
	Purchase of investments		(6)
2	Sale of investments
18	Deferred consideration received			13
(318)	Investment in and loans to joint ventures and funds		(99)	(182)
72	Capital distributions and loan repayments from joint ventures and funds		9
(3)	Indirect taxes (paid) in respect of investing activities		(3)	(6)
(202)	Net cash (outflow) from investing activities		(654)	(238)

	Cash flows from financing activities
493	Issue of ordinary shares		4	4
(203)	Dividends paid		(74)	(122)
4	Closeout of interest rate derivatives
2	Movement in other financial liabilities		(10)	11
210	Disposal of liquid investments			100
(889)	Decrease in bank and other borrowings		(49)	(350)
	Drawdowns on bank and other borrowings		673	70
393	Proceeds on convertible bond issue			393
10	Net cash inflow from financing activities		544	106

(2)	Net (decrease) in cash and cash equivalents		(23)	(30)
137	Opening cash and cash equivalents		135	137
135	Closing cash and cash equivalents		112	107

	Cash and cash equivalents consists of:
135	Cash and short-term deposits		112	107

Consolidated Statement of Changes in Equity
for the period ended 30 September 2013

				Hedging &
	Share		Share	translation	Revaluation	Merger	Retained
	capital	*	premium	reserve	reserve	reserve	earnings	Total
	£m		£m	£m	£m	£m	£m	£m

Six month movements in equity


Balance at 1 April 2013	249		1,242	(71)	(92)	213	4,146	5,687

Total comprehensive income for the period				23	36		425	484
Share issues	3		8					11
Adjustment for share and share option awards							(3)	(3)
Dividends payable in the six month period							(130)	(130)
Adjustment for scrip dividend element							57	57
Balance at 30 September 2013	252		1,250	(48)	(56)	213	4,495	6,106


Balance at 1 April 2012	225		1,237	(72)	(92)		3,806	5,104

Total comprehensive income for the period				(9)	(24)		111	78
Share issues	1		5					6
Adjustment for share and share option awards							5	5
Dividends payable in the six month period							(116)	(116)
Balance at 30 September 2012	226		1,242	(81)	(116)		3,806	5,077


Prior year movements in equity

Balance at 1 April 2012	225		1,237	(72)	(92)		3,806	5,104

Total comprehensive income for the period				1			282	283
Share issues	24		5			464		493
Adjustment for share and share option awards							9	9
Dividends payable in the year							(234)	(234)
Transfer						(251)	251
Adjustment for scrip dividend element							32	32
Balance at 31 March 2013	249		1,242	(71)	(92)	213	4,146	5,687

* See note 12 for a summary of the number of shares in issue

Notes to the accounts (unaudited)

1. Basis of preparation

The financial information for the period ended 30 September 2013 does not constitute statutory accounts as defined in section 434 of the Companies Act 2006. A copy of the statutory accounts for the year ended 31 March 2013 has been delivered to the Registrar of Companies. The auditor's report on those accounts was not qualified, did not include a reference to any matters to which the auditor drew attention by way of emphasis without qualifying the report, and did not contain statements under section 498(2) or (3) of the Companies Act 2006.




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) as adopted by the European Union and in accordance with IAS 34 'Interim Financial Reporting'. The current period financial information presented in this document is unaudited.




In the current financial year the Group has adopted the amendments to IAS 1 "Presentation of Items of Other Comprehensive Income", IFRS 13 "Fair Value Measurement" and IAS 19 (revised) "Employee Benefits". Otherwise the same accounting policies, estimates, presentation and methods of computation are followed in the half year report as applied in the Group's latest annual audited financial statements.



• The amendments to IAS 1 require items of other comprehensive income to be grouped by those items that will be reclassified subsequently to profit or loss and those that will be never be reclassified, as well as their associated income tax. The amendments have been applied retrospectively and hence the presentation of items of comprehensive income has been re-grouped accordingly.


• IFRS 13 impacts the disclosure and measurement of financial instruments held at fair value, as set out in note 7.
• IAS 19 (revised) and the related consequential amendments have impacted the accounting for the Group's defined benefit scheme, by replacing the interest cost and expected return on plan assets with a net interest charge on the net defined benefit liability. For the current period, the profit was £1m lower and other comprehensive income was £1m higher than it would have been prior to the adoption of IAS 19 (revised 2011). As the Group has always recognised actual gains and losses immediately there has been no effect on the prior year defined benefit obligation. The comparative period has not been restated as the impact of adopting IAS 19 (revised 2011) is not considered material.





The Group's business activities, financial position, cash flows, liquidity position and financing structure are discussed in the first half of this report. 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 Group's business is not seasonal.



The interim financial information was approved by the Board on 12 November 2013.

2. Performance measures

Year ended					Six months ended			Six months ended
31 March 2013					30 September 2013			30 September 2012
Earnings		Penceper share		Earnings per share (diluted)	Earnings	Penceper share		Earnings		Penceper share
£m		Penceper share			£m	Penceper share		£m		Penceper share

274				Underlying pre tax profit - income statement	146			137
(1)				Tax charge relating to underlying profit	(1)			(1)

273		30.3	p	Underlying earnings per share	145	14.5	p	136		15.2	p

9				Mark-to-market on/profit on disposal of liquid investments (held for trading assets)				4

(7)				Mark-to-market adjustment on convertible bond	(19)
(7)				Non-recurring items *				(7)

268		29.7	p	EPRA earnings per share (diluted)	126	12.6	p	133		14.9	p

284		31.5	p	Profit for the period after taxation	427	42.8	p	112		12.5	p

*Non-recurring items for the six months ended 30 September 2012 and 31 March 2013 relate to the issue costs for the convertible bond.

The European Public Real Estate Association (EPRA) has issued Best Practices Recommendations, the latest update of which was issued in July 2013, which give guidelines for performance measures. The results have been presented to be in line with these recommendations. EPRA earnings (diluted) is the profit after tax excluding investment and development property revaluations and gains or losses on disposals, changes in the fair value of financial instruments and associated close-out costs and their related taxation. A summary of the EPRA Performance Measures is provided in Table B within the Supplementary Disclosures. Underlying earnings consists of the EPRA earnings (diluted) measure, with additional company adjustments. Adjustments include mark to market adjustments on held for trading assets, and mark to market adjustments on the convertible bond.






The weighted average number of shares in issue for the six month period was: basic: 993m (six months ended 30 September 2012: 888m; year ended 31 March 2013: 895m); diluted for the effect of share options: 997m (six months ended 30 September 2012: 894m; year ended 31 March 2013: 901m). Basic undiluted earnings per share for the six month period was 43.0p (six months ended 30 September 2012: 12.6p; year ended 31 March 2013: 31.7p). Earnings per share shown in the table above are diluted.



31 March								30 September		30 September
2013				Net asset value (NAV)				2013		2012
£m								£m		£m

5,687				Balance sheet net assets				6,106		5,077

14				Deferred tax arising on revaluation movements				5		29
198				Mark to market on effective cash flow hedges and related debt adjustments				138		229
10				Surplus on trading properties				12		6
58				Dilution effect of share options				37		51

5,967				EPRA NAV				6,298		5,392

596	p			EPRA NAV per share				623	p	596	p

The EPRA NAV per share excludes the mark to market on effective cash flow hedges and related debt adjustments, deferred taxation on revaluations, surplus on trading properties and is calculated on a fully diluted basis.


At 30 September 2013, the number of shares in issue was: basic: 999m (31 March 2013: 986m; 30 September 2012: 888m); diluted for the effect of share options: 1,011m (31 March 2013: 1,001m; 30 September 2012: 904m).



Total accounting return per share for the six months ended 30 September 2013 of 6.8% includes dividends paid of 13.5p (see note 8) in addition to the increase in EPRA NAV of 27p. Total accounting return per share for the six months ended 30 September 2012 was 2.4% and the year ended 31 March 2013 was 4.6%.

3. Income statement notes

Year ended			Six months ended
31 March			30 September
2013			2013	2012
£m			£m	£m
	Gross and net rental income

269	Rent receivable		149	134
24	Spreading of tenant incentives and guaranteed rent increases		6	14
1	Surrender premia		2	1

294	Gross rental income		157	149

35	Service charge income		22	16

329	Gross rental and related income		179	165

(35)	Service charge expenses		(22)	(16)
(13)	Property operating expenses		(9)	(7)

281	Net rental and related income		148	142

	Fees and other income

10	Performance & management fees (from joint ventures & funds)		5	5
5	Other fees and commission		2	3

15			7	8

	Net revaluation movements on property and investments


71	Revaluation of properties		191	1
8	Gains on property and investment disposals		13	1
9	Revaluation of investments			4

88			204	6
(62)	Share of valuation movements of joint ventures and funds (note 5)		83	(19)


26			287	(13)

Included in the £17m of net financing costs in the Capital and Other column are a £19m increase in the fair value of the convertible bond, less a £1m foreign exchange gain on foreign currency denominated debt and less a £1m foreign exchange gain on investments in foreign operations.

	Tax income (expense)

(1)	Current tax:	UK corporation tax (30 September 2013: 23%; 31 March 2013: 24%; 30 September 2012: 24%)	(1)	1


(1)			(1)	1
9	Adjustments in respect of prior periods		5

8	Total current tax income		4	1
16	Deferred tax on revaluations		1	2

24	Group total taxation (net)		5	3

3	Attributable to joint ventures and funds		6	3
				.
27	Total taxation		11	6

Tax expense attributable to underlying profits for the six months ended 30 September 2013 was £1m (six months ended 30 September 2012: £1m; year ended 31 March 2013: £1m).


The deferred tax charge for the six months ended 30 September 2013 has been calculated using the future enacted UK corporation tax rate of 21% (effective from 1 April 2014).

4. Property

Total property interests are £11,438m at 30 September 2013, comprising properties held by the Group of £6,219m, share of properties held by funds of £777m and share of properties held by joint ventures of £4,442m. Properties were valued on the basis of fair value, supported by market evidence, in accordance with the Appraisal and Valuation Standards published by The Royal Institution of Chartered Surveyors.




31 March							30 September		30 September
2013							2013		2012

£m							£m		£m

5,488		Investment properties					5,950		5,389
42		Owner-occupied property					45		42
5,530		Carrying value of properties on balance sheet					5,995		5,431

40		Trading properties					242		49
5,570		Carrying value of properties on balance sheet					6,237		5,480

(26)		Head lease liabilities					(30)		(20)
10		Surplus on trading properties					12		6

5,554		Total British Land Group property portfolio valuation					6,219		5,466

At 30 September 2013 Group properties valued at £1,695m were subject to a security interest (31 March 2013: £1,724m; 30 September 2012: £1,700m) and other properties of non-recourse companies amounted to £42m (31 March 2013: £40m; 30 September 2012: £39m).



During the period to 30 September 2013, £285m of investment properties were reclassified to trading properties, as since planning consent has been granted it is the Group's intention to redevelop and sell these properties. Some of these trading properties were subsequently sold in the period.



Interest capitalised on development expenditure for the six months ended 30 September 2013 was £11m (six months ended 30 September 2012: £7m; year ended 31 March 2013: £16m).


5. Joint ventures and funds

Summary of British Land's share of investments in joint ventures and funds at 30 September 2013

			Underlying
			profit
			(six	Net	Property		Other		Gross
			months)	Investment	assets*		assets		liabilities*+
			£m	£m	£m		£m		£m
Share of funds			12	457	777		30		(350)
Share of joint ventures			51	2,219	4,442		235		(2,458)
Total			63	2,676	5,219		265		(2,808)

* Head lease liabilities included in property assets+ Liabilities include secured bank loans. The borrowings of joint ventures and funds and their subsidiaries are non-recourse to the Group

At 30 September 2013 British Land had exchanged contracts to sell our 50% interest in Puerto Venecia Shopping Centre and Retail Park in Zaragoza, Spain. This sale was completed on 15 October 2013 for £121m.

PREF, a fund owning a portfolio of retail property in Europe (in which British Land has a net investment of £69m), has its properties externally valued by CBRE. CBRE have included a market uncertainty clause in the valuation report of the Portuguese and Spanish properties, due to a lack of transactional evidence and uncertainty over the economic situation in those markets (Italian properties are not included in this clause at 30 September 2013). In June 2013 PREF made two partial early repayments of debt totalling €15m. PREF now has €74m of bank loans that are due to mature in the calendar year 2014; discussions continue with the existing lenders and other alternatives are being explored.




At 30 September 2013 the investment in joint ventures included within the total investment in joint ventures and funds was £2,219m (31 March 2013: £1,889m; 30 September 2012: £1,817m).

Amounts owed to joint ventures on a proportional basis at 30 September 2013 were £4m (31 March 2013: £4m; 30 September 2012: £5m). Amounts owed from joint ventures on a proportional basis at 30 September 2013 were £51m (31 March 2013: £78m; 30 September 2012: £107m).

British Land's share of the results of joint ventures and funds

Year							Six months		Six months
ended							ended		ended
31 March							30 September		30 September
2013							2013		2012
£m							£m		£m

273		Gross rental income					134		135

260		Net rental and related income					127		130
(4)		Other income and expenditure					(2)		(2)
(126)		Net financing costs					(62)		(65)

130		Underlying profit before taxation					63		63

(62)		Net valuation and disposal movements					83		(19)
(4)		Non-recurring items							(3)

64		Profit on ordinary activities before taxation					146		41

2		Current tax expense					(1)		3
1		Deferred tax income (expense)					7

67		Profit on ordinary activities after taxation					152		44


5. Joint ventures and funds (continued)

Operating cash flows of joint ventures and funds

Year						Six months		Six months
ended						ended		ended
31 March						30 September		30 September
2013						2013		2012
£m						£m		£m

264	Rental income received from tenants					124		124
(22)	Operating expenses paid to suppliers and employees					(15)		(17)

242	Cash generated from operations					109		107

(133)	Interest paid					(66)		(66)
(7)	UK corporation tax paid					(3)		(3)

102	Cash inflow from operating activities					40		38

	Cash inflow from operating activities deployed as:
28	Surplus cash (distributed by) retained within joint ventures and funds					9		(24)
74	Total distributed to British Land					31		62

102	Cash inflow from operating activities					40		38


6. Other investments

Other investments includes a £92m loan to the Bluebutton joint venture under a secured commercial development facility.

7. Net Debt

31 March						30 September	30 September
2013						2013	2012
£m						£m	£m

1,587	Debentures and unsecured bonds					1,528	1,575
407	Convertible bond					426	393
184	Bank debt and other floating rate debt					807	791

2,178	Gross debt					2,761	2,759

86	Interest rate and currency derivative liabilities					64	110
(92)	Interest rate and currency derivative assets					(35)	(105)

2,172						2,790	2,764

	Liquid investments						(100)
(135)	Cash and short-term deposits					(112)	(107)

2,037	Net debt					2,678	2,557

The categories of gross debt have been re-presented to be consistent with the most recent financial statements.

Gross debt includes £772m due within one year at 30 September 2013 (31 March 2013: £44m; 30 September 2012: £252m). In the 6 months ended 30 September 2013, the group has taken advantage of drawing on its cheaper rate facilities with shorter remaining terms. This has contributed to the increase in debt due within one year.


Undrawn committed bank facilities at 30 September 2013 amounted to £1,483m.

The Group Loan to Value (LTV) ratio at 30 September 2013 is 29%, being principal value of gross debt of £2,687m less cash and short-term deposits of £112m, divided by total Group property of £6,219m (see note 4) plus investments in joint ventures and funds of £2,676m (note 5) and other investments of £124m (balance sheet).


Financial Covenants
The two financial covenants applicable to the Group unsecured debt are:

Net Borrowings not to exceed 175% of Adjusted Capital and Reserves.
At 30 September 2013 the ratio is 39%
i. Net Borrowings are £2,609m, being the principal amount of gross debt of £2,687m plus amounts owed to joint ventures of £4m (see note 5) plus TPP Investments Ltd of £30m (see note 10), less the cash and short-term deposits of £112m; and

ii. Adjusted Capital and Reserves are £6,606m, being share capital and reserves of £6,106m (see Consolidated Statement of Changes in Equity), adjusted for £5m of deferred tax (see note 2), £319m exceptional refinancing charges (see below), £164m fair value adjustments on financial assets and liabilities (£138m mark to market on interest rate swaps and £26m adjustment on the convertible bond) and £12m surplus on trading properties (see note 4).



Net Unsecured Borrowings not to exceed 70% of Unencumbered Assets.
At 30 September 2013 the ratio is 33%
i. Net Unsecured Borrowings are £1,664m, being the principal amount of gross debt of £2,687m plus amounts owed to joint ventures of £4m less cash and deposits not subject to a security interest of £50m less the principal amount of secured and non-recourse borrowings of £977m; and

ii. Unencumbered Assets are £5,063m being properties of £6,219m (see note 4) plus investments in joint ventures and funds of £2,676m (see note 5) and other investments of £124m (see balance sheet) less investments in joint ventures of £2,219m (see note 5) and encumbered assets of £1,737m (see note 4).



In calculating Adjusted Capital and Reserves for the purpose of the unsecured debt financial covenants, there is an adjustment of £319m to reflect the cumulative net amortised exceptional items relating to the refinancings in the years ended 31 March 2005, 2006 and 2007.


Comparison of fair values and book values
		30 September 2013			30 September 2012
		Fair	Book		Fair	Book
		Value	Value	Difference	Value	Value	Difference
		£m	£m	£m	£m	£m	£m

Debentures and unsecured bonds		1,546	1,528	18	1,586	1,575	11
Convertible bond		426	426		393	393
Bank debt and other floating rate debt		815	807	8	796	791	5
Liquid investments					(100)	(100)
Cash and short-term deposits		(112)	(112)		(107)	(107)

		2,675	2,649	26	2,568	2,552	16

Other financial (assets) liabilities:
- interest rate derivative assets		(35)	(35)		(105)	(105)
- interest rate derivative liabilities		64	64		110	110

		29	29		5	5

Total		2,704	2,678	26	2,573	2,557	16

Short-term debtors and creditors have been excluded from the disclosures.

The fair values of debt, debentures and the convertible bond have been established by obtaining quoted market prices from brokers. The bank debt and loan notes have been valued assuming they could be renegotiated at contracted margins. The derivatives have been valued by calculating the present value of expected future cash flows, using appropriate market discount rates, by an independent treasury advisor.

7. Net Debt (continued)

Fair value heirachy

The table below analyses financial instruments carried at fair value, by the valuation method. The different levels are defined as follows:

Level 1: Quoted prices (unadjusted) in active markets for identical assets or liabilities.

Level 2: Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly (i.e. as prices) or indirectly (i.e. derived from prices).


Level 3: Inputs for the asset or liability that are not based on observable market data (unobservable inputs).

	30 September 2013
	Level 1	Level 2	Level 3	Total
	£m	£m	£m	£m

Interest rate and currency derivative assets		(35)		(35)


Assets		(35)		(35)

Interest rate and currency derivative liabilities		64		64

Convertible bond	426			426

Liabilities	426	64		490

Total	426	29		455


8. Dividends

The 2014 second quarter dividend of 6.75 pence per share, totalling £68m, is payable on 14 February 2014 to shareholders on the register at close of business on 10 January 2014.


The Board will announce the availability of the Scrip Dividend Alternative via the Regulatory News Service and on its website (www.britishland.com), no later than 4 business days before the ex-dividend date of 08 January 2014. The Board expects to announce the split between PID and non-PID income at that time. A Scrip Dividend Alternative will not be enhanced. PID dividends are paid, as required by REIT legislation, after deduction of withholding tax at the basic rate (currently 20%), where appropriate. Certain classes of shareholders may be able to elect to receive dividends gross. Please refer to our website (www.britishland.com) for details.






The 2014 first quarter dividend of 6.75 pence per share, totalling £67m, was paid on 08 November 2013. 39% of shareholders opted for the Scrip Dividend Alternative. Both the cash dividend and Scrip Dividend Alternative were treated as PIDs. The total cash paid by the Group was £45m, being £35m paid to shareholders and £10m of withholding tax.



The Consolidated Statement of Changes in Equity shows total dividends in the six months to 30 September of £130m, £65m being the third quarter 2013 dividend of 6.6 pence per share paid on 10 May 2013, and the 2013 fourth quarter PID dividend of 6.6 pence per share, paid on 9 August 2013, totalling £65m. A scrip alternative was offered in lieu of cash for both dividends.

9. Segment Information

The segmental note has been updated to reflect changes to internal management reporting. 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. The Offices sector now includes residential, as this is often incorporated into office schemes, and Retail now includes leisure, for a similar rationale. Prior year comparatives have been updated to reflect these changes.The relevant revenue, net rental income, operating result, assets and capital expenditure, being the measures of segment revenue, segment result and segment assets used by the management of the business, are set out below. Revenue is derived from the rental of buildings. Operating result is the net of net rental income, fee income and administration expenses. No customer exceeds 10% of the Group's revenues.

Segment result	Offices		Retail		Other/unallocated		Total
	2013	2012	2013	2012	2013	2012	2013	2012
	£m	£m	£m	£m	£m	£m	£m	£m


Revenue
British Land Group	43	44	114	105			157	149
Share of funds and joint ventures	42	41	83	86	9	8	134	135
Total	85	85	197	191	9	8	291	284

Net rental income
British Land Group	40	42	108	100			148	142
Share of funds and joint ventures	40	40	80	83	7	7	127	130
Total	80	82	188	183	7	7	275	272

Operating Result
British Land Group	33	37	104	97	(18)	(21)	119	113
Share of funds and joint ventures	40	40	78	81	7	7	125	128
Total	73	77	182	178	(11)	(14)	244	241

Reconciliation to underlying profit before taxation
British Land Group net financing costs							(36)	(39)
Share of funds and joint ventures net financing costs							(62)	(65)
Capital and other							276	(28)
Total profit on ordinary activities before tax							422	109


Segment assets	Offices		Retail		Other/unallocated		Total
	2013	2012	2013	2012	2013	2012	2013	2012
	£m	£m	£m	£m	£m	£m	£m	£m


Property assets (includes head leases liabilities)
British Land Group	2,770	2,267	3,449	3,199			6,219	5,466
Share of funds and joint ventures	1,791	1,606	3,187	3,069	241	247	5,219	4,922
Total	4,561	3,873	6,636	6,268	241	247	11,438	10,388

Segment assets
British Land Group	2,779	2,273	3,470	3,213	300	467	6,549	5,953
Share of funds and joint ventures	1,953	1,700	3,263	3,141	272	284	5,488	5,125
Total	4,732	3,973	6,733	6,354	572	751	12,037	11,078

Other assets
British Land Group					312	473	312	473
Share of funds and joint ventures	162	94	72	64	31	37	265	195
Total	162	94	72	64	343	510	577	668

Capital expenditure
British Land Group	553	82	33	14			586	96
Share of funds and joint ventures	45	53	9	51	1	20	55	124
Total	598	135	42	65	1	20	641	220

Other assets include other investments of £124m (31 March 2013: £76m; 30 September 2012: £48m), debtors of £41m (31 March 2013: £60m; 30 September 2012: £113m), liquid investments of £nil (31 March 2013: £nil; 30 September 2012: £100m), cash and short-term deposits of £112m (31 March 2013: £135m; 30 September 2012: £107m) and derivatives of £35m (31 March 2013: £92m; 30 September 2012: £105m).


10. Contingent liabilities

The Group has contingent liabilities in respect of legal claims, guarantees and warranties arising in the ordinary course of business. It is not anticipated that any material liabilities will arise from 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 £30m (31 March 2013: £30m, 30 September 2012: £30m) and recourse is only to the partnership assets.



11. Related party transactions

There have been no material changes in the related party transactions described in the last annual report.

Details of transactions with joint ventures and funds are given in notes 3, 6 and 10. Amounts owed to joint ventures are detailed in note 5.


12. Note to the Consolidated Statement of Changes in Equity

At 30 September 2013, of the issued 25p ordinary shares, 1m were held in the ESOP Trust (31 March 2013: 1m; 30 September 2012: 1m), 11m were held as Treasury shares (31 March 2013: 11m; 30 September 2012: 11m) and 1,010m shares were in free issue (31 March 2013: 986m; 30 September 2012: 900m). All shares are fully paid.

INDEPENDENT REVIEW REPORT TO THE BRITISH LAND COMPANY PLC

We have been engaged by the company to review the condensed set of financial statements in the half-yearly financial report for the six months ended 30 September 2013 which comprises the Consolidated Income Statement, the Consolidated Statement of Comprehensive Income, the Consolidated Balance Sheet, the Consolidated Cash Flow Statement, the Consolidated Statement of Changes in Equity, and related notes 1 to 12. We have read the other information contained in the half-yearly financial report and considered whether it contains any apparent misstatements or material inconsistencies with the information in the condensed set of financial statements.





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 it 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.





Directors' responsibilities

The half-yearly financial report is the responsibility of, and has been approved by, the directors. The directors are responsible for preparing the half-yearly financial report in accordance with the Disclosure and Transparency Rules of the United Kingdom's Financial Conduct Authority.


As disclosed in note 1, 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 half-yearly financial report has been prepared in accordance with International Accounting Standard 34, "Interim Financial Reporting," as adopted by the European Union.


Our responsibility

Our responsibility is to express to the Company a conclusion on the condensed set of financial statements in the half-yearly financial report based on our review.

Scope of Review

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.





Conclusion

Based on our review, nothing has come to our attention that causes us to believe that the condensed set of financial statements in the half-yearly financial report for the six months ended 30 September 2013 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 Conduct Authority.




Deloitte LLP
Chartered Accountants and Statutory Auditor
London, United Kingdom
12 November 2013

Supplementary Disclosures


Table A: REIT Income and Capital Return

Summary income statement based on proportional consolidation for the period ended 30 September 2013

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 joint ventures and funds included on a line by line, i.e. proportional basis. The underlying profit before taxation and underlying profit after taxation are the same as presented in the consolidated income statement.




Year ended 31 March 2013					Six months ended 30 September 2013				Six months ended 30 September 2012

Group	JVs &	Prop			Group	JVs &	Prop		Group	JVs &	Prop
	funds	Consol				funds	Consol			funds	Consol
£m	£m	£m			£m	£m	£m		£m	£m	£m

294	273	567		Gross rental income	157	134	291		149	135	284

(13)	(13)	(26)		Property operating expenses	(9)	(7)	(16)		(7)	(5)	(12)

281	260	541		Net rental income	148	127	275		142	130	272

(72)	(4)	(76)		Administrative expenses	(36)	(2)	(38)		(37)	(2)	(39)

15		15		Fees & other income	7		7		8		8

224	256	480		Profit before interest and tax	119	125	244		113	128	241

(80)	(126)	(206)		Net interest	(36)	(62)	(98)		(39)	(65)	(104)

144	130	274		Underlying profit before tax	83	63	146		74	63	137

		(1)		Underlying tax			(1)				(1)

		273		REIT income return			145				136

		30.3	p	Underlying earnings per share - diluted basis			14.5	p			15.2	p

		26		Valuation movement			287				(13)

		(4)		Other capital and tax (net)*			(28)				4

		22		REIT capital return			259				(9)

		295		REIT total return			404				127

The underlying earnings per share is calculated on underlying profit before taxation of £146m, tax attributable to underlying profits of £1m and 997m shares on a diluted basis, for the six months ended 30 September 2013.


*includes other comprehensive income, movement in dilution of share options and the movement in items excluded for EPRA NAV.

Supplementary Disclosures (continued)

Table A (continued): EPRA Net Assets

Summary balance sheet based on proportional consolidation as at 30 September 2013
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 the joint venture and fund assets and liabilities included on a line by line, i.e. proportional basis and assuming full dilution.



EPRA Net assets31 March 2013		Group	Share of joint ventures & funds	Share options	Deferred tax	Mark to market on effective cash flow hedges and related debt adjs	Head Leases	Valuation surplus on trading properties	EPRA Net assets30 September 2013	EPRA Net assets30 September 2012
£m		£m	£m	£m	£m	£m	£m	£m	£m	£m

6,327	Retail properties	3,470	3,191				(25)		6,636	6,268

3,717	Office properties	2,779	1,791				(9)		4,561	3,873

455	Other properties	(12)	241					12	241	247


10,499	Total properties	6,237	5,223				(34)	12	11,438	10,388

	Investments in joint	2,676	(2,676)
	ventures and funds

53	Other investments	124	(43)						81	46

	Intangible assets

(319)	Other net (liabilities)	(253)	(124)	37	5		34		(301)	(254)
	assets

(4,266)	Net debt	(2,678)	(2,380)			138			(4,920)	(4,788)

5,967	Net assets	6,106		37	5	138		12	6,298	5,392

596 p	EPRA NAV per share (note 2)								623 p	596 p

EPRA Net Assets Movement

Year ended				Six months ended			Six months ended
31 March 2013				30 September 2013			30 September 2012
£m	Pence per share			£m	Pence per share		£m	Pence per share

5,381	595	p	Opening EPRA NAV	5,967	596	p	5,381	595	p

273	30	p	REIT income return	145	14	p	136	15	p

22	2	p	REIT capital return	259	26	p	(9)	(1)	p

(202)	(27)	p	Dividends	(73)	(13)	p	(116)	(13)	p

493	(4)	p	Dilution due to issue of shares

5,967	596	p	Closing EPRA NAV	6,298	623	p	5,392	596	p

Supplementary Disclosures (continued)

Table B: EPRA Performance Measures

EPRA Performance measures summary table

						Six months				Six months
Year ended						ended				ended
31 March 2013						30 September 2013				30 September 2012
£m		Pence per share			£m	Pence per share		£m		Pence per share

268		29.7	p	EPRA Earnings (diluted)	126	12.6	p	133		14.9	p

5,967		596	p	EPRA NAV	6,298	623	p	5,392		596	p

5,522		552	p	EPRA NNNAV	6,016	595	p	5,015		555	p

		5.5	%	EPRA Net Initial Yield		5	%			5.2	%

		5.7	%	EPRA 'topped-up' Net Initial Yield		5.5	%			5.7	%

		3.2	%	EPRA Vacancy Rate		4.6	%			2.6	%


Calculation of EPRA earnings (diluted) per share

						Six months				Six months
Year ended						ended				ended
31 March 2013						30 September 2013				30 September 2012
£m		Pence per share			£m	Pence per share		£m		Pence per share

284		31.5	p	Profit for the period after taxation	427	42.8	p	112		12.5	p
				Exclude:
(9)		(1.0)	p	Group - non-underlying current tax	(5)	(0.5)	p	(2)		(0.2)	p
(16)		(1.8)	p	Group - deferred tax	(1)	(0.1)	p	(2)		(0.2)	p
(2)		(0.2)	p	Joint Ventures and Funds - non-underlying current tax	1	0.1	p	(3)		(0.3)	p
(1)		(0.1)	p	Joint Ventures and Funds - deferred tax	(7)	(0.7)	p
(79)		(8.8)	p	Group - net valuation movement (including resulton disposals)	(204)	(20.5)	p	(2)		(0.2)	p
62		6.9	p	Joint ventures and funds - net valuation movement(including result on disposals)	(83)	(8.3)	p	19		2.1	p
1		0.1	p	Amortisation of intangible assets				1		0.1	p
28		3.1	p	Changes in fair value of financial instruments and associated close-out costs	(2)	(0.2)	p	10		1.1	p

268		29.7	p	EPRA Earnings (diluted) per share (EPS)	126	12.6	p	133		14.9	p

Calculation of EPRA NNNAV per share

Year								Six months		Six months
ended								ended		ended
31 March								30 September		30 September
2013								2013		2012
£m								£m		£m

5,967				EPRA NAV				6,298		5,392
(14)				Deferred tax arising on revaluation movements				(5)		(29)
(198)				Mark to market on effective cash flow hedges and related debt adjustments				(138)		(229)
(233)				Mark to market on debt				(139)		(119)

5,522				EPRA NNNAV				6,016		5,015

552	p			EPRA NNNAV per share				595	p	555	p

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.

Supplementary Disclosures (continued)

Table B (continued): EPRA Performance Measures

EPRA Net Initial Yield and 'topped-up' Net Initial Yield

Year ended			Six months ended		Six months ended
31 March 2013			30 September 2013		30 September 2012
£m			£m		£m
5,554		Investment property - wholly owned	6,219		5,466
4,945		Investment property - share of joint ventures and funds	4,978		4,922
(1,340)		Less developments	(1,008)		(907)

9,159		Completed property portfolio	10,189		9,481
552		Allowance for estimated purchasers' costs	572		543

9,711		Gross up completed property portfolio valuation	10,761		10,024

541		Annualised cash passing rental income	545		530
(11)		Property outgoings	(10)		(12)

530		Annualised net rents	535		518

27		Rent expiration of rent free periods and fixed uplifts*	60		58

557		'Topped-up' net annualised rent	595		576
5.5	%	EPRA Net Initial Yield	5.0	%	5.2	%
5.7	%	EPRA 'topped-up' Net Initial Yield	5.5	%	5.7	%

26		Including fixed/minimum uplifts received in lieu of rental growth	26		27

583		Total 'topped-up' net rents	621		603
6.0	%	Overall 'topped-up' Net Initial Yield	5.8	%	6.0	%

557		'Topped-up' net annualised rent	595		576
19		ERV vacant space	28		15
(13)		Reversions	(15)		(10)
563		Total Net ERV	608		581
5.8	%	Net Reversionary Yield	5.7	%	5.8	%
* The period over which rent free periods expire is 4 years (31 March 2013: 2 years; 30 September 2012: 2 years)
The current period above is stated for the UK portfolio only.


EPRA Vacancy Rate

Year ended			Six months ended		Six months ended
31 March 2013			30 September 2013		30 September 2012
£m			£m		£m
19		Annualised potential gross rental value of vacant premises	28		15
573		Annualised potential gross rental value for the completed property portfolio	617		588
3.2	%	EPRA Vacancy Rate	4.6	%	2.6	%
The EPRA vacancy rate is calculated using the gross ERV.
The current period above is stated for the UK portfolio only.


EPRA Cost Ratios

Year ended			Six months ended		Six months ended
31 March 2013			30 September 2013		30 September 2012
£m			£m		£m
13		Property outgoings	9		7
72		Administrative expenses	36		37
17		Share of joint ventures and funds expenses	9		7
		Less:
(10)		Performance & management fees (from joint ventures & funds)	(5)		(5)
(5)		Other fees and commission	(2)		(3)
(1)		Ground rent costs

86		EPRA Costs (including direct vacancy costs) (A)	47		43
(14)		Direct vacancy costs	(6)		(6)

72		EPRA Costs (excluding direct vacancy costs) (B)	41		37

294		Gross Rental Income less ground rent costs	157		149
273		Share of joint ventures and funds (GRI less ground rent costs)	134		135

567		Total Gross Rental Income (C)	291		284

15.3	%	EPRA Cost Ratio (including direct vacancy costs) (A/C)	16.4	%	15.1	%
12.8	%	EPRA Cost Ratio (excluding direct vacancy costs) (B/C)	14.4	%	13.1	%

		Overhead and operating expenses capitalised (incl. share of joint ventures and funds)
-			-		-

No overhead or operating expenses, including employee costs, are capitalised.


Table C: Calculation of gross rental income

Year ended			Six months ended		Six months ended
31 March			30 September		30 September
2013			2013		2012
£m			£m		£m
538		Rent receivable	281		268
28		Spreading of tenant incentives and guaranteed rent increases	8		15
1		Surrender premia	2		1

567		Gross rental income	291		284

SUPPLEMENTARY TABLES

(Data includes Group’s share of Joint Ventures and Funds)

UK Portfolio Valuation
At 30 September 2013	Group	JVs &Funds1	Total	Change²
	£m	£m	£m	%
Retail3:
Retail parks	1,755	814	2,569	1.1
Superstores	118	1,188	1,306	2.0
Shopping centres	756	1,181	1,937	0.3
Department stores	512	1	513	6.5
Leisure	308	3	311	2.0
UK Retail	3,449	3,187	6,636	1.5
Offices3:
City	57	1,786	1,843	3.6
West End	2,468	-	2,468	6.0
Provincial	85	5	90	4.0
All Offices	2,610	1,791	4,401	5.0
Residential4	160	-	160	2.6
All Offices & Residential	2,770	1,791	4,561	4.9

UK Total	6,219	4,978	11,197	2.8
Table shows UK total, excluding assets held in Europe. Total portfolio valuation including Europe of £11.4bn at period end, +2.7% valuation movement.
1 group’s share of properties in joint ventures and funds
2 valuation movement during the period (after taking account of capital expenditure) of properties held at the balance sheet date, including developments (classified by end use), purchases and sales
³ including committed developments
4 stand-alone residential

UK Portfolio Net Yields1
At 30 September 2013 (excluding developments)	EPRA net initial yield %	EPRA topped up net initial yield %2	Overall topped up net initial yield %3	Net reversionary yield %	Net equivalent yield %
Retail:
Retail parks	5.5	5.7	5.8	5.8	5.9
Superstores	5.1	5.1	5.1	5.1	5.1
Shopping centres	5.4	5.7	5.7	5.8	5.8
Department stores	5.4	5.4	7.8	4.5	6.0
Leisure	7.6	7.6	8.8	6.0	8.4
UK Retail	5.5	5.6	5.9	5.6	5.8
Offices:
City	5.3	6.1	6.1	6.0	5.6
West End	3.0	4.8	4.9	5.6	5.4
Provincial	7.1	7.1	7.1	5.7	6.3
All Offices	4.0	5.3	5.4	5.8	5.5

UK Total	5.0	5.5	5.8	5.7	5.7
Table shows UK total, excluding assets held in Europe.
1 including notional purchaser's costs
2 including rent contracted from expiry of rent-free periods and fixed uplifts not in lieu of growth
3 including fixed/minimum uplifts (excluded from EPRA definition)

UK Annualised Rent & Estimated Rental Value (ERV)
At 30 September 2013 (excluding developments)	Annualised rent (valuation basis) £m1			ERV £m	Average rent £psf
At 30 September 2013 (excluding developments)	Group	JVs & Funds	Total	Total	Contracted2	ERV2
Retail:
Retail parks	103	46	149	159	23.2	23.8
Superstores	7	63	70	70	21.8	21.7
Shopping centres	50	66	116	123	25.3	26.2
Department stores	30	-	30	25	13.4	11.0
Leisure	25	-	25	20	13.4	10.8
UK Retail	215	175	390	397	21.4	21.3
Offices:
City	4	77	81	91	47.4	45.7
West End	69	-	69	124	48.5	50.8
Provincial	6	-	6	5	27.1	21.9
All Offices	79	77	156	220	46.8	47.2
Residential3	3	-	3	3	-	-
All Offices & Residential	82	77	159	223	-	-

UK Total	297	252	549	620	25.7	26.0
Table shows UK total, excluding assets held in Europe.
1 gross rents plus, where rent reviews are outstanding, any increases to ERV (as determined by the Group’s external valuers), less any grounds rents payable under head leases, excludes contracted rent subject to rent free and future uplift
2 Office average rent £psf is based on office space only
3 stand-alone residential

UK Gross Rental Income1
(Accounting Basis) £m	6 mths to 30 September 2013			Annualised as at 30 September 2013
	Group	JVs & Funds	Total	Group	JVs & Funds	Total
Retail:
Retail parks	52	21	73	102	45	147
Superstores	5	32	37	7	63	71
Shopping centres	27	30	57	50	64	114
Department stores	16	-	16	34	-	34
Leisure	14	-	14	28	-	28
UK Retail	114	83	197	221	172	394
Offices:
City	3	42	45	4	82	86
West End	35	-	35	84	-	84
Provincial	3	-	3	6	-	6
All Offices	41	42	83	94	82	176
Residential2	2	-	2	3	-	3
All Offices & Residential	43	42	85	97	82	179

UK Total	157	125	282	318	254	573
Table shows UK total, excluding assets held in Europe.
1 gross rental income will differ from annualised rents due to accounting adjustments for fixed & minimum contracted rental uplifts and lease incentives
2 stand-alone residential

UK Lease Length & Occupancy
At 30 September 2013	Average lease length yrs		Occupancy rate %
(excluding developments)	To expiry	To break	Occupancy	Occupancy (underlying)1
Retail:
Retail parks	9.5	8.6	95.7	97.4
Superstores	15.0	15.0	100.0	100.0
Shopping centres	9.6	8.8	95.6	97.0
Department stores	27.4	24.1	99.5	99.5
Leisure	21.2	21.2	99.8	100.0
UK Retail	12.6	11.8	96.9	98.0
Offices:
City	9.6	7.7	96.5	97.0
West End	11.6	9.6	89.8	92.8
Provincial	8.8	8.4	100.0	100.0
All Offices	10.6	8.7	92.8	94.7

UK Total	11.9	10.7	95.4	96.8
Table shows UK total, excluding assets held in Europe.
1 including accommodation under offer or subject to asset management

UK Rent Subject to Lease Break or Expiry
At 30 September	2014	2015	2016	2017	2018	2014-16	2014-18
	£m	£m	£m	£m	£m	£m	£m
Retail:
Retail parks	4	7	7	9	13	18	40
Superstores	-	-	-	-	-	-	-
Shopping centres	10	7	12	11	6	29	46
Department stores	-	-	-	-	-	-	-
Leisure	-	-	-	-	-	-	-
UK Retail	14	14	19	20	19	47	86
Offices:
City	1	1	19	-	8	21	29
West End	2	4	1	14	9	7	30
Provincial	-	-	-	-	-	-	-
All Offices	3	5	20	14	17	28	59

UK Total	17	19	39	34	36	75	145
% of contracted rent	2.8%	2.9%	6.1%	5.4%	5.6%	11.8%	22.7%
Potential uplift at current ERV	2	1	-	(1)	(1)	3	1

Table shows UK total, excluding assets held in Europe.

UK Rent Subject to Open Market Rent Review
12 months to 30 September	2014	2015	2016	2017	2018	2014-16	2014-18
	£m	£m	£m	£m	£m	£m	£m
Retail:
Retail parks	18	17	22	16	21	57	94
Superstores	8	23	13	4	4	44	52
Shopping centres	14	17	14	14	12	45	71
Department stores	-	-	5	-	1	5	6
Leisure	-	-	-	-	-	-	-
UK Retail	40	57	54	34	38	151	223
Offices:
City	29	6	5	12	3	40	55
West End	5	17	7	21	22	29	72
Provincial	-	1	5	-	-	6	6
All Offices	34	24	17	33	25	75	133

UK Total	74	81	71	67	63	226	356
Potential uplift at current ERV	2	3	1	-	-	6	6

Table shows UK total, excluding assets held in Europe.

Major Holdings
At 30 September 2013	BL Share	Sq ft	Rent	Occupancy	Lease
(excl. developments under construction)	%	'000	£m pa1	rate %2	length yrs3
Broadgate, London EC2	50	3,963	177	97.0	7.6
Regent's Place, London NW1	100	1,589	67	97.6	9.6
Meadowhall Shopping Centre, Sheffield	50	1,374	82	97.4	8.4
Sainsbury’s Superstores	52	2,864	67	100.0	15.7
Tesco Superstores	50	2,687	61	100.0	14.6
Paddington Central	100	609	22	92.9	10.7
Teeside Shopping Park, Stockton-on-Tees	100	451	14	100.0	7.5
Drake Circus Shopping Centre, Plymouth	100	570	15	98.7	6.7
Debenhams, Oxford Street	100	363	10	100.0	25.5
10 Portman Square, W14	100	132	5	51.0	12.5
1 annualised contracted rent including 100% of Joint Ventures & Funds
2 includes accommodation under offer or subject to asset management
3 weighted average to first break 4 development reached practical completion in May 2013

Occupiers Representing over 0.5% of Rent
At 30 September 2013	% of total rent		% of total rent
Tesco plc	7.3	JPMorgan	0.8
Sainsbury Group	5.9	Reed Smith	0.8
Debenhams	5.7	C&W Plc (Cable & Wireless plc)	0.8
UBS AG	3.2	TJX Cos Inc (TK Maxx)	0.8
Home Retail Group	2.7	SportsDirect	0.8
Kingfisher (B&Q)	2.6	Gazprom	0.7
HM Government	2.5	Deutsche Bank AG	0.7
Arcadia Group	2.1	Mayer Brown	0.7
Next plc	2.1	Hennes	0.7
Virgin Active	2.1	JD Sports	0.7
Spirit Group	1.6	Mothercare	0.7
Alliance Boots	1.5	ICAP Plc	0.6
Herbert Smith	1.4	Lend Lease	0.6
DSG International	1.3	Credit Agricole	0.6
Marks & Spencer Plc	1.2	AstraZeneca	0.6
Royal Bank of Scotland plc	1.2	Nokia	0.6
Hutchison Whampoa	1.2	Carlson (TGI Friday's)	0.6
Asda Group	1.1	Lewis Trust (River Island)	0.5
New Look	1.0	Henderson	0.5
House of Fraser	1.0	Pets at Home	0.5
Facebook	0.9	Aramco	0.5
Aegis Group	0.8

Recently Completed & Committed Developments
At 30 September 2013	Sector	BL Share	Sq ft	PC Calendar Year	Current Value	Cost to complete	ERV	Pre-let	Resi End Value3
At 30 September 2013		%	'000	PC Calendar Year	£m	£m1,7	£m2	£m	£m
2010 Programme:
10 - 30 Brock St, Regents Place4	Mixed Use	100	505	Completed	360	6	20.1	17.1	115
5 Broadgate	Offices	50	710	2015	195	87	19.2	19.2	-
The Leadenhall Building	Offices	50	605	2014	195	43	18.6	8.6	-
10 Portman Square	Offices	100	132	Completed	165	5	9.7	4.9	-
Marble Arch House5	Mixed Use	100	86	2013	64	9	3.9	-	18
39 Victoria Street	Offices	100	93	2013	63	6	4.9	-	-
199 Bishopsgate	Offices	50	144	Completed	55	1	3.5	1.8	-
Whiteley Shopping, Fareham	Retail	50	321	Completed	42	1	2.6	2.4	-
Bedford Street	Residential	100	24	2014	26	3	-	-	27
Glasgow Fort (Leisure)	Retail	44	46	Completed	7	2	0.5	0.5	-
Total 2010 Programme:			2,666		1,172	163	83.0	54.5	160

Recently Committed:
The Clarges Estate6	Mixed Use	100	193	2017	170	179	5.6	-	388
Hereford	Retail	100	310	2014	35	40	5.5	2.8	-
The Hempel	Residential	100	40	2015	34	26	-	-	81
Craven Hill Gardens	Residential	100	25	2014	33	8	-	-	50
Aldgate Place, Phase 1	Residential	50	221	2016	8	52	-	-	658
Broadgate Circle	Offices	50	45	2014	7	8	1.2	-	-
Milton Keynes, Kingston Centre	Retail	50	21	2014	4	1	0.3	0.3	-
Broughton Park, Chester	Retail	44	54	2014	2	5	0.5	0.4	-
Meadowhall Surrounding Land	Retail	50	22	2015	1	3	0.4	0.4	-
Whiteley Leisure, Fareham	Retail	50	58	2015	1	6	0.5	0.2	-
Fort Kinnaird, Edinburgh	Retail	22	55	2015	-	3	0.3	0.1	-
Total Recently Committed:			1,044		295	331	14.3	4.2	584

Total Committed			3,710		1,467	494	97.3	58.7	744
Data includes Group's share of properties in Joint Ventures & Funds (except area which is shown at 100%)
1 from 1 October 2013 to practical completion (PC)
2 estimated headline rental value net of rent payable under head leases (excluding tenant incentives)
3 Residential development of which £120 million completed or exchanged
4 includes 126,000 sq ft of residential, of which £93 million has now sold and completed during the half
5 includes 10,000 sq ft of residential
6 includes 103,000 sq ft of residential 7 cost to complete excludes notional interest as interest is capitalised on each development at our capitalisation rate 8 end value excludes hotel site, receipts of £5 million (BL share) estimated

Near-Term Pipeline
At 30 September 2013	Sector	BL Share	Sq ft	Total Cost	Status
At 30 September 2013	Sector	BL Share	'000	£m1	Status
The Shoreditch Estate	Mixed Use	100	322	165	Pre-submission
5 Kingdom Street	Offices	100	2402	154	Consented
4 Kingdom Street	Offices	100	145	93	Consented
Surrey Quays (Extension)	Retail	100	98	24	Consented
Yalding House	Offices	100	29	22	Pre-submission
Glasgow Fort (Retail)	Retail	44	112	17	Planning submitted
Deepdale, Preston	Retail	22	74	3	Consented
Total Near-Term			1,020	478
1 Total cost including site value. Excludes notional interest as interest is capitalised individually on each development at our capitalisation rate 2 210,000 sq ft of which is consented

Medium-Term Pipeline
At 30 September 2013	Sector	BL Share	Sq ft	Status
At 30 September 2013	Sector	BL Share	'000	Status
100 Liverpool Street	Offices	50	496	Pre-submission
Power Court, Luton	Retail	100	158	Pre-submission
Aldgate Place, Phase 2	Residential	50	145	Consented
Wardrobe Court	Residential	100	74	Pre-submission
Fort Kinnaird, Edinburgh	Retail	22	30	Planning submitted
Lancaster	Retail	100	n/a	Pre-submission
Eden Walk Shopping Centre, Kingston	Retail	50	n/a	Pre-submission
Harmsworth Quays	Residential	100	n/a	Pre-submission
Total Medium-Term			903

This information is provided by RNS

The company news service from the London Stock Exchange

END

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