Final Results - Part 2

RNS Number : 6166E

British Land Co PLC

14 May 2013

 



Consolidated Income Statement
for the year ended 31 March 2013
					2013					2012
					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	329		-	329		332		-	332
Net rental and related income				3	281		-	281		286		-	286
Fees and other income				4	15		-	15		16		-	16
Joint ventures and funds (see also below)					130		(63)	67		113		69	182
Administrative expenses					(72)		-	(72)		(69)		-	(69)
Net valuation movement (includes result on disposals)				5	-		88	88		-		143	143
Financing costs
	- financing income			6	21		2	23		24		2	26
	- financing charges			6	(101)		(41)	(142)		(101)		(4)	(105)
					(80)		(39)	(119)		(77)		(2)	(79)
Profit (loss) on ordinary activities before taxation					274		(14)	260		269		210	479
Taxation
	- current tax income (expense)			7			8	8				(2)	(2)
	- deferred tax income			7			16	16				3	3
							24	24				1	1
Profit for the year after taxation attributable to shareholders of the Company								284					480
Earnings per share:		-	basic	2				31.7	p				54.1	p
		-	diluted	2				31.5	p				53.8	p
Share of results of joint ventures and funds
Underlying profit before taxation					130		-	130		113		-	113
Net valuation movement (includes result on disposals)					-		(62)	(62)		-		72	72
Non-recurring items					-		(4)	(4)		-		(3)	(3)
Current tax income (expense)					-		2	2		-		(1)	(1)
Deferred tax income					-		1	1		-		1	1
Share of results of joint ventures and funds				9	130		(63)	67		113		69	182
All results derive from continuing operations.
*As defined in note 2

Consolidated Statement of Comprehensive Income
for the year ended 31 March 2013
		2013	2012
		£m	£m
Profit for the year after taxation		284	480
Other comprehensive income:
Items that will not be reclassified subsequently to profit or loss:
Net actuarial loss on pension scheme		(2)	(3)
		(2)	(3)
Items that may be reclassified subsequently to profit or loss:
Losses on cash flow hedges
- Group		(16)	(65)
- Joint ventures and funds		(6)	(50)
		(22)	(115)
Transferred to the income statement (cash flow hedges)
- foreign currency derivatives		(5)	-
- interest rate derivatives		26	18
		21	18
Exchange differences on translation of foreign operations
- hedging and translation		(4)	9
- other		6	(8)
		2	1
Other comprehensive loss for the year		(1)	(99)
Total comprehensive income for the year attributable to shareholders of the Company		283	381

Consolidated Balance Sheet
as at 31 March 2013
		2013		2012*
	Note	£m		£m
ASSETS
Non-current assets
Investment and development properties	8	5,488		5,346
Owner-occupied property	8	42		41
		5,530		5,387
Other non-current assets
Investments in joint ventures and funds	9	2,336		2,191
Other investments	10	76		28
Interest rate derivative assets	15	92		73
		8,034		7,679
Current assets
Trading properties	8	40		47
Debtors	11	60		95
Liquid investments	15	-		200
Cash and short-term deposits	15	135		137
		235		479
Total assets		8,269		8,158
LIABILITIES
Current liabilities
Short-term borrowings and overdrafts	15	(44)		(49)
Creditors	12	(259)		(261)
Corporation tax		(17)		(23)
		(320)		(333)
Non-current liabilities
Debentures and loans	15	(2,134)		(2,572)
Other non-current liabilities	13	(26)		(25)
Deferred tax liabilities	14	(16)		(32)
Interest rate derivative liabilities	15	(86)		(92)
		(2,262)		(2,721)
Total liabilities		(2,582)		(3,054)
Net assets		5,687		5,104
Equity
Share capital	18	249		225
Share premium		1,242		1,237
Merger reserve		213		-
Other reserves		(163)		(164)
Retained earnings		4,146		3,806
Total equity attributable to shareholders of the Company		5,687		5,104
EPRA NAV per share**	2	596	p	595	p
* Comparatives have been re-presented, see note 1.
** As defined in note 2.

Consolidated Statement of Cash Flows
for the year ended 31 March 2013
		2013	2012
	Note	£m	£m
Rental income received from tenants		266	271
Fees and other income received		19	21
Operating expenses paid to suppliers and employees		(88)	(81)
Cash generated from operations		197	211
Interest paid		(113)	(89)
Interest received		31	17
UK corporation tax received		1	3
Distributions and other receivables from joint ventures and funds		74	64
Net cash inflow from operating activities		190	206
Cash flows from investing activities
Development and other capital expenditure		(230)	(106)
Purchase of investment properties		(442)	(382)
Sale of investment properties		699	59
Purchase of investments		-	(22)
Sale of investments		2	-
Deferred consideration received		18	12
Investment in and loans to joint ventures and funds		(318)	(110)
Capital distributions received from joint ventures and funds		72	-
Indirect taxes (paid) received in respect of investing activities		(3)	2
Net cash outflow from investing activities		(202)	(547)
Cash flows from financing activities
Issue of ordinary shares		493	-
Dividends paid	16	(203)	(212)
Closeout of interest rate derivatives		4	-
Movement in other financial liabilities		2	(4)
Disposal of liquid investments	15	210	-
Decrease in bank and other borrowings		(889)	(406)
Drawdowns on bank and other borrowings		-	1,040
Proceeds on convertible bond issue		393	-
Net cash inflow from financing activities		10	418
Net (decrease) increase in cash and cash equivalents		(2)	77
Cash and cash equivalents at 1 April		137	60
Cash and cash equivalents at 31 March		135	137
Cash and cash equivalents consists of:
Cash and short-term deposits	15	135	137

Consolidated Statement of Changes in Equity
for the year ended 31 March 2013
										Hedging and
						Share		Share		translation		Revaluation		Merger		Retained
						capital	*	premium		reserve	*	reserve	*	reserve	*	earnings		Total
						£m		£m		£m	**	£m				£m		£m
Balance at 1 April 2012						225		1,237		(72)		(92)		-		3,806		5,104
Profit for the year after taxation						-		-		-		-		-		284		284
Losses on cash flow hedges						-		-		(16)		-		-		-		(16)
Joint ventures and funds revaluations						-		-		-		(6)		-		-		(6)
Reclassification of losses on cash flow hedges
- foreign currency derivatives						-		-		(5)		-		-		-		(5)
- interest rate derivatives						-		-		26		-		-		-		26
Exchange differences on translation of foreign operations						-		-		(4)		6		-		-		2
Net actuarial loss on pension schemes						-		-		-		-		-		(2)		(2)
Other comprehensive income (loss)						-		-		1		-		-		(2)		(1)
Total comprehensive income for the year						-		-		1		-		-		282		283
Share issues						24		5		-		-		464		-		493
Adjustment for share and share option awards						-		-		-		-		-		9		9
Dividends payable in year (26.3p per share)						-		-		-		-		-		(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
Balance at 1 April 2011						224		1,237		(34)		(34)		-		3,537		4,930
Profit for the year after taxation						-		-		-		-		-		480		480
Losses on cash flow hedges						-		-		(65)		-		-		-		(65)
Joint ventures and funds revaluations						-		-		-		(50)		-		-		(50)
Reclassification of losses on cash flow hedges
- interest rate derivatives						-		-		18		-		-		-		18
Exchange differences on translation of foreign operations						-		-		9		(8)		-		-		1
Net actuarial loss on pension schemes						-		-		-		-		-		(3)		(3)
Other comprehensive loss						-		-		(38)		(58)		-		(3)		(99)
Total comprehensive (loss) income for the year						-		-		(38)		(58)		-		477		381
Share issues						1		-		-		-		-		-		1
Adjustment for share and share option awards						-		-		-		-		-		5		5
Dividends payable in year (26.0p per share)						-		-		-		-		-		(231)		(231)
Adjustment for scrip dividend element						-		-		-		-		-		18		18
Balance at 31 March 2012						225		1,237		(72)		(92)		-		3,806		5,104
* refer to note 18.
** The balance at 1 April 2012 includes £11m relating to foreign exchange and (£83m) relating to hedging.

Notes to the accounts
for the year ended 31 March 2013
1.     Basis of preparation
The financial information set out above does not constitute the Company's statutory accounts for the years ended 31 March 2013 or 2012, but is derived from those accounts.  Statutory accounts for 2012 have been delivered to the Registrar of Companies and those for 2013 will be delivered following the Company's annual general meeting. The auditor has reported on those accounts; their reports were unqualified, did not draw attention to any matters by way of emphasis and did not contain statements under s498(2) or (3) of Companies Act 2006 or equivalent preceding legislation.
The financial statements for the year ended 31 March 2013 have been prepared on the historical cost basis, except for the revaluation of properties, investments and derivatives. The financial statements have also been prepared in accordance with International Financial Reporting Standards (IFRSs) as adopted by the European Union and therefore comply with Article 4 of the EU IAS Regulation.
While the financial information included in this preliminary announcement has been prepared in accordance with the recognition and measurement criteria of IFRSs, this announcement does not itself contain sufficient information to comply with IFRSs. The Company expects to publish full financial statements that comply with IFRSs in June 2013.
The accounting policies used are consistent with those contained in the Group's last annual report and accounts for the year ended 31 March 2012.  Standards and interpretations issued but not effective for the current accounting period were: IFRS 9 - Financial Instruments; IFRS 10 -  Consolidated Financial Statements; IFRS 11 - Joint Arrangements; IFRS 12 - Disclosure of Interests in Other Entities; IFRS 13 - Fair Value Measurement; IAS 1 (amended) - Presentation of Items of Other Comprehensive Income; IAS 12 (amended) - Deferred Tax: recovery of assets; IAS 19 (revised) - Employee Benefits; IAS 27 (revised) - Separate Financial Statements; IAS 28 (revised) - Investments in Associates and Joint Ventures and IAS 32 (amended) - Financial Instruments: Presentation.
The balance sheet has been re-presented to show interest rate derivative assets, interest rate derivative liabilities and corporation tax creditor on the face of the balance sheet, in accordance with IAS 1.  Comparatives on the balance sheet and in the notes to the accounts have been re-presented accordingly.  The tax withheld on dividends, previously disclosed within corporation tax creditors, has been re-presented in other taxation and social security.
The Directors do not expect that the adoption of the standards listed above will have a material impact on the financial statements of the Group in future periods except as follows: IFRS 9 will impact both the measurement and disclosures of financial instruments; IFRS 12 will impact the disclosure of interests the Group has in other entities; IFRS 13 will impact the disclosure of fair value measurements and IAS 19 (revised) will impact the measurement of the various components representing movements in the defined benefit pension obligation.
The financial statements have been prepared on the going concern basis as stated in the directors' responsibility statement.
2.     Performance measures
			2013						2012
Earnings per share (diluted)			Earnings				Pence per share		Earnings			Pence per share
			£m						£m
Underlying pre-tax profit - income statement			274						269
Tax charge relating to underlying profit			(1)						(4)
Underlying earnings			273				30.3	p	265			29.7	p
Mark-to-market on / profit on disposal of liquid investments (held for trading assets)			9						(3)
Mark-to-market on convertible bond			(7)						-
Non-recurring items*			(7)						-
EPRA earnings			268				29.7	p	262			29.4	p
Profit for the year after taxation			284				31.5	p	480			53.8	p
*Non-recurring items for the year ended 31 March 2013 relate to £7m of issue costs for the convertible bond.
The European Public Real Estate Association (EPRA) issued Best Practices Recommendations most recently in September 2011 and additional guidance in January 2013, which gives guidelines for performance measures.    Comparatives have been re-presented in line with the additional guidance.  The EPRA earnings measure excludes investment property revaluations and gains or losses on disposals, intangible asset movements 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 measure, with additional company adjustments.  Adjustments include mark-to-market adjustments on, or profits on disposal of, held for trading assets, mark-to-market adjustments on the convertible bond and issue costs of the convertible bond.
The weighted average number of shares in issue for the year was: basic: 895m (2012: 887m); diluted for the effect of share options: 901m (2012: 892m).  Basic undiluted earnings per share for the year, calculated using profit for the year after taxation of £284m (2012: £480m), was 31.7p (2012: 54.1p). Earnings per share shown in the table above are diluted.
									31 March			31 March
Net asset value (NAV) (diluted)									2013			2012
									£m			£m
Balance sheet net assets									5,687			5,104
Deferred tax arising on revaluation movements									14			31
Mark-to-market on effective cash flow hedges and related debt adjustments									198			189
Surplus on trading properties									10			-
Dilution effect of share options									58			57
EPRA NAV									5,967			5,381
EPRA NAV per share									596		p	595	p
The EPRA NAV per share excludes the mark-to-market on effective cash flow hedges and related debt adjustments, deferred taxation on revaluations and is calculated on a fully diluted basis.
At 31 March 2013, the number of shares in issue was: basic: 986m (2012: 888m); diluted for the effect of share options: 1,001m (2012: 904m).
Total accounting return per share for the year ended 31 March 2013 of 4.6% includes dividends paid of 26.4p (see note 16) in addition to the increase in EPRA NAV of 1p. Total accounting return per share for the year ended 31 March 2012 was 9.5%.
3.     Gross and net rental and related income
						2013				2012
						£m				£m
Rent receivable						269				259
Spreading of tenant incentives and guaranteed rent increases						24				41
Surrender premia						1				-
Gross rental income						294				300
Service charge income						35				32
Gross rental and related income						329				332
Service charge expenses						(35)				(32)
Property operating expenses						(13)				(14)
Net rental and related income						281				286
The cash element of net rental income recognised during the year ended 31 March 2013 from properties which were not subject to a security interest was £159m (2012: £126m).  Property operating expenses relating to investment properties that did not generate any rental income were £1m (2012: £1m).  Contingent rents of £1m (2012: £1m) were recognised in the year.
4.     Fees and other income
						2013				2012
						£m				£m
Performance and management fees (from joint ventures and funds)						10				12
Other fees and commissions						5				4
Fees and other income						15				16
5.     Net revaluation gains on property and investments
						2013				2012
						£m				£m
Consolidated income statement
Revaluation of properties						71				143
Result on property and investment disposals						8				3
Revaluation of investments						9				(3)
						88				143
Share of valuation movements of joint ventures and funds						(62)				72
Net revaluation gains on property and investments						26				215

6.     Net financing costs
	2013	2012
	£m	£m
Interest payable on:
Bank loans and overdrafts	37	27
Other loans	75	76
Obligations under finance leases	1	1
	113	104
Development interest capitalised	(17)	(8)
	96	96
Interest receivable on:
Deposits, securities and liquid investments	(11)	(17)
Loans to joint ventures	(3)	-
	(14)	(17)
Other finance (income) costs:
Expected return on pension scheme assets	(7)	(7)
Interest on pension scheme liabilities	5	5
Valuation movements on translation of foreign currency debt	5	-
Hedging reserve recycling	(5)	-
Net financing expenses - underlying	80	77
Capital and other:
Valuation movements on fair value debt	18	66
Valuation movements on fair value derivatives	(14)	(68)
Net capital movement on convertible bond	14	-
Recycling of fair value movement on close-out of derivatives	20	-
Valuation movement on translation of foreign currency net assets	(2)	-
Fair value movement on non-hedge accounted derivatives	3	4
Net financing costs - capital	39	2
Net financing costs	119	79
Total financing income	(23)	(26)
Total financing charges	142	105
Net financing costs	119	79
Interest on development expenditure is capitalised at a rate of 4.00% (2012: 4.48%).

7.     Taxation
			2013	2012
			£m	£m
Tax (income) expense
Current tax:		UK corporation tax: 24% (2012: 26%)	1	2
			1	2
Adjustments in respect of prior periods			(9)	-
Total current tax expense (income)			(8)	2
Deferred tax on revaluations			(16)	(3)
Group total taxation (net)			(24)	(1)
Attributable to joint ventures and funds			(3)	-
Total taxation income			(27)	(1)
Tax reconciliation
Profit on ordinary activities before taxation			257	479
Less: profit attributable to joint ventures and funds*			(64)	(182)
Group profit on ordinary activities before taxation			193	297
Tax on profit on ordinary activities at UK corporation  tax rate of 24% (2012: 26%)			46	77
Effects of:
	REIT exempt income and gains		(41)	(70)
	Tax losses		(6)	(8)
	Adjustments in respect  of prior years		(23)	-
Group total taxation income			(24)	(1)
*A current tax credit of £2m (2012: charge of £1m) and a deferred tax credit of £1m (2012: credit of £1m) arose on profits attributable to joint ventures and funds.  The low charges reflect the Group's REIT status.
Tax expense attributable to underlying profits for the year ended 31 March 2013 was £1m (2012: £4m). The underlying tax rate for the year ended 31 March 2013 was 0.5% (2012: 1.5%).
Corporation tax payable at 31 March 2013 was £17m (2012: £23m) as shown on the balance sheet.

8.     Property
	Property reconciliation 12 months to 31 March 2013				Investment &	Trading	Owner-
					Development	Properties	occupied	Total
					£m	£m	£m	£m
Carrying value at 1 April 2012					5,346	47	41	5,434
Additions:		- property purchases			453	-	-	453
		- development expenditure			201	5	-	206
		- capitalised interest			15	1	-	16
		- capital expenditure on asset management initiatives			28	-	-	28
					697	6	-	703
Depreciation					-	-	(1)	(1)
Disposals					(651)	(13)	-	(664)
Revaluations included in income statement					72	-	2	74
Movement in tenant incentives and contracted rent uplift balances					24	-	-	24
Carrying value at 31 March 2013					5,488	40	42	5,570
Head lease liabilities (note 13)								(26)
Surplus on trading properties								10
Total Group property portfolio valuation at 31 March 2013								5,554
At 31 March 2013, the Group book value of properties of £5,554m (2012: £5,414m) comprises freeholds of £3,502m (2012: £4,034m); virtual freeholds of £709m (2012: £107m); and long leaseholds of £1,343m (2012: £1,273m). The historical cost of properties was £4,229m (2012: £4,264m).
The property valuation does not include any investment properties held under operating leases (2012: £nil).
Properties valued at £1,724m (2012: £1,827m) were subject to a security interest and other properties of non-recourse companies amounted to £40m (2012: £49m).
Included within the property valuation is £91m (2012: £86m) in respect of accrued contracted rental uplift income, against which the Group holds a provision of £5m (2012: £5m). The balance arises through the IFRS treatment of leases containing such arrangements which requires the recognition of rental income on a straight line basis over the lease term, with the difference between this and the cash receipt changing the carrying value of the property against which revaluations are measured.
Cumulative interest capitalised against investment properties amounts to £56m (2012: £78m).
Included in investment properties are £904m of properties which are in the course of development (2012: £444m).
The Group's total property portfolio was valued by external valuers on the basis of fair value, in accordance with the RICS Valuation - Professional Standards 2012, eighth edition, published by The Royal Institution of Chartered Surveyors.
Copies of the valuation certificates of Knight Frank LLP and CBRE can be found on the website at: www.britishland.com/investors/operational-performance.aspx
A breakdown of valuations split between the Group and its share of joint ventures and funds is shown below:
			2013			2012
			Group	Joint Ventures and Funds	Total	Group	Joint Ventures and Funds	Total
			£m	£m	£m	£m	£m	£m
Knight Frank LLP			5,084	2,680	7,764	5,133	2,577	7,710
CBRE			470	2,265	2,735	281	2,346	2,627
			5,554	4,945	10,499	5,414	4,923	10,337

9.     Joint ventures and funds
Summary movement for the year of the investments in joint ventures and funds
		Joint Ventures	Funds	Total	Equity	Loans	Total
		£m	£m	£m	£m	£m	£m
At 1 April 2012		1,687	504	2,191	1,992	199	2,191
Additions		315	70	385	139	246	385
Disposals		(65)	(35)	(100)	(65)	(35)	(100)
Share of profit after taxation		128	(61)	67	67	-	67
Distributions and dividends:	Capital	(72)	-	(72)	(72)	-	(72)
	Revenue	(110)	(24)	(134)	(134)	-	(134)
Hedging and exchange movements		3	(4)	(1)	(1)	-	(1)
At 31 March 2013		1,886	450	2,336	1,926	410	2,336
PREF, a fund owning a portfolio of retail property in Europe (in which British Land has a net investment of £82m) is externally valued by CBRE.  CBRE have included market uncertainty clauses in the valuation reports of the Spanish, Italian and Portuguese properties due to the lack of transactional evidence and uncertainty over the economic situation in these markets.  In the 2014 calendar year PREF has €89m of bank loans that are due to mature, discussions are on-going with the existing lenders in relation to loan extensions and other alternatives are being explored.
At 31 March 2013 the investment in joint ventures included within the total investment in joint ventures and funds was £1,889m (2012: £1,690m).
Distributions in the year include the receipt of £24m from the Broadgate joint venture, £63m from the Meadowhall joint venture, £23m from the Sainsbury joint venture, £36m from Tesco joint ventures, £17m from HUT, £5m from PREF and £9m from Auchinlea.  Of the total distributions made in the year £146m were settled in cash and £60m were settled via the transfer of other assets.
At 31 March 2013, the valuation of the Group's share of joint ventures and funds properties was £4,945m (2012: £4,923m); external net debt was £2,427m (2012: £2,576m) and the mark-to-market adjustment for external debt was £193m liability (2012: £5m asset).

9.     Joint ventures and funds (continued): Joint ventures' summary financial statements
A detailed breakdown of the 100% results of specific joint ventures and funds is set out on the two following pages. The total column represents the Group's share of all joint ventures and funds. All disclosures have been restated to British Land accounting policies under IFRS eliminating all profits and losses resulting from upstream and downstream transactions with the Group.
	Bluebutton Properties Ltd	MSC Property Intermediate Holdings Ltd	BL Sainsbury Superstores Ltd	Tesco Joint Ventures	*	USS Joint Ventures**	Leadenhall Holding Co (Jersey) Ltd
Partners	Blackstone Group LP funds	Norges Bank Investment Management	J Sainsbury plc	Tesco PLC		Universities Superannuation Scheme	Oxford Properties
Property sector	City Offices	Shopping Centres	Superstores	Superstores		Shopping Centres	City Offices
	Broadgate	Meadowhall					Leadenhall
Group share	50%	50%	50%	50%		50%	50%
Date established	November 2009	February 2009	March 2008	November 1996		May 2007	Dec 2010
Accounting period	31 March	31 March	31 March	31 March		31 March	31 March
	2013	2013	2013	2013		2013	2013
Summarised income statements	£m	£m	£m	£m		£m	£m
Gross rental and related income	198	93	65	106		4	-
Net rental and related income	160	77	65	100		3	-
Other income and expenditure	(1)	(8)	(1)	(2)		-	-
Net interest payable (receivable)	(95)	(51)	(31)	(58)		-	-
Underlying profit before taxation	64	18	33	40		3	-
Surplus  (deficit) on revaluation	53	24	(18)	(11)		18	5
Disposal of fixed assets	-	-	(1)	(1)		-	-
Non-recurring items	-	1	-	(2)		(2)	-
Profit (loss) on ordinary activities before taxation	117	43	14	26		19	5
Current tax	-	-	-	-		-	-
Deferred tax	-	-	-	-		-	-
Profit (loss) on ordinary activities after taxation	117	43	14	26		19	5
Summarised balance sheets	£m	£m	£m	£m		£m	£m
Investment properties	3,042	1,530	1,203	1,700		164	318
Current assets	22	2	1	1		-	5
Upstream loans to joint venture shareholders	-	-	-	-		-	-
Cash and deposits	266	38	21	33		6	1
Gross assets	3,330	1,570	1,225	1,734		170	324
Current liabilities	(238)	(43)	(35)	(174)		(3)	(12)
Bank debt falling due within one year	(185)	-	-	-		-	-
Bank debt falling due after one year	(52)	-	-	(1,007)		-	-
Securitised debt	(1,809)	(766)	(609)	-		-	-
Other non-current liabilities	-	-	-	-		-	-
Obligations under finance leases	-	(5)	-	-		-	-
Deferred tax	-	-	-	-		-	-
Gross liabilities	(2,284)	(814)	(644)	(1,181)		(3)	(12)
Net external assets	1,046	756	581	553		167	312
Represented by:
Shareholder loans	15	204	15	95		12	259
Ordinary shareholders' funds/partners' capital	1,031	552	566	458		155	53
Total investment	1,046	756	581	553		167	312
*Tesco joint ventures include BLT Holdings (2010) Limited, the Tesco British Land Property Partnership, Tesco BL Holdings Limited, Shopping Centres Limited and the Tesco Aqua Limited Partnership.
** USS joint ventures include the Eden Walk Shopping Centre Unit Trust and the Fareham Property Partnership.

9.     Joint ventures and funds (continued): joint ventures' and funds' summary financial statements
A detailed breakdown of the 100% results of specific joint ventures and funds is set out on the current and previous page. The total column represents the Group's share of all joint ventures and funds. All disclosures have been restated to British Land accounting policies under IFRS eliminating all profits and losses resulting from upstream and downstream transactions with the Group.
													Joint Ventures and Funds		Joint Ventures and Funds
						Hercules			Pillar Retail		Other		TOTAL		TOTAL
						Unit			Europark		joint ventures		Group share		Group share
						Trust			Fund	+	and funds	+*	2013		2012
Partners
Property sector						Retail			Retail
						Parks			Parks
Group share						41.24%			65.30%
Date established						September 2000			March 2004
Accounting period						31 March			31 March
						2013			2013
Summarised income statements						£m			£m		£m		£m		£m
Gross rental and related income						95			28		16		306		298
Net rental and related income						85			19		10		260		260
Other income and expenditure						(3)			(1)		4		(4)		(6)
Net interest payable (receivable)						(28)			(7)		8		(126)		(141)
Underlying profit before taxation						54			11		22		130		113
Surplus (deficit) on revaluation						(83)			(91)		(3)		(61)		71
Disposal of fixed assets						-			-		-		(1)		1
Non-recurring items						(4)			-		(1)		(4)		(3)
Profit (loss) on ordinary activities before taxation						(33)			(80)		18		64		182
Current tax						-			-		2		2		(1)
Deferred tax						-			3		(1)		1		1
Profit (loss) on ordinary activities after taxation						(33)			(77)		19		67		182
Summarised balance sheets
Investment properties						1,496			204		220		4,949		4,931
Current assets						5			36		21		62		67
Upstream loans to joint venture shareholders						-			-		4		4		14
Cash and deposits						38			15		7		215		146
Gross assets						1,539			255		252		5,230		5,158
Current liabilities						(36)			(55)		(37)		(340)		(303)
Bank debt falling due within one year						-			(51)		(1)		(127)		(63)
Bank debt falling due after one year						(619)			(24)		(28)		(828)		(702)
Securitised debt						-			-		-		(1,592)		(1,842)
Other non-current liabilities						-			-		-		-		(45)
Obligations under finance leases						-			-		(2)		(5)		(9)
Deferred tax						-			-		(2)		(2)		(3)
Gross liabilities						(655)			(130)		(70)		2,894		(2,967)
Net external assets						884			125		182		2,336		2,191
Represented by:
Shareholder loans						-			62		135		477		266
Ordinary shareholders' funds/partners' capital						884			63		47		1,859		1,925
Total investment						884			125		182		2,336		2,191
+Although the Group's ownership share is 65.30%, it does not exercise control over significant decisions. The Group therefore equity accounts for its interest in Pillar Retail Europark Fund (PREF).
+*Included in the column headed 'Other joint ventures and funds' are contributions from the following:  the BL Goodman Limited Partnership, the Scottish Retail Property Limited Partnership, BL Gazeley Limited, BL Canada Quays Limited, Eurofund Investments Zaragoza S.L., Hercules Income Fund (HIF), the City of London Office Unit Trust (CLOUT), Auchinlea Partnership and Group consolidation adjustments. Amounts are included in this column at the relevant percentage for the Group's interest.
The borrowings of joint ventures and funds and their subsidiaries are non-recourse to the Group.  All joint ventures are incorporated in the United Kingdom, with the exception of Bluebutton Properties Limited,  the Eden Walk Shopping Centre Unit Trust, Leadenhall Holding Co (Jersey) Limited and the Scottish Retail Property Limited Partnership which are domiciled in Jersey and Eurofund Investments Zaragoza S.L. which is domiciled in Spain.  Of the funds, Hercules Unit Trust (HUT) and Hercules Income Fund (HIF) are domiciled in Jersey and PREF in Luxembourg.

9.     Joint ventures and funds (continued)
Operating cash flows of joint ventures and funds (Group share)
							2013			2012
							£m			£m
Rental income received from tenants							264			277
Operating expenses paid to suppliers and employees							(22)			(28)
Cash generated from operations							242			249
Interest paid							(133)			(144)
UK corporation tax paid							(7)			(8)
Cash inflow from operating activities							102			97
Cash inflow from operating activities deployed as:
Surplus cash retained within joint ventures and funds							28			33
Revenue distributions to British Land							74			64
							102			97
10.     Other investments
										£m
At 1 April 2012										28
Additions										53
Disposals										(4)
Depreciation										(1)
At 31 March 2013										76
Included within additions is £53m in relation to a loan to Bluebutton Properties Limited, a joint venture company.
11.     Debtors
							2013			2012
							£m			£m
Trade and other debtors+							15			29
Amounts owed by joint ventures							40			57
Prepayments and accrued income							5			9
Debtors							60			95
+ Included within this balance is deferred consideration of £4m (2012: £4m) arising on the sale of investment properties for which the timing of the receipt is contingent and therefore may fall due after one year.
Comparatives have been re-presented, see note 1.
Trade and other debtors are shown after deducting a provision for bad and doubtful debts of £11m (2012: £10m).  The charge to the income statement was £1m (2012: £1m).
The Directors consider that the carrying amount of trade and other debtors approximates to their fair value.  There is no concentration of credit risk with respect to trade debtors as the Group has a large number of customers who are paying their rent in advance.
12.     Creditors
						2013			2012
						£m			£m
Trade creditors						94			88
Amounts owed to joint ventures						4			15
Other taxation and social security						24			27
Accruals and deferred income						137			131
Creditors						259			261
Comparatives have been re-presented, see note 1.
Trade creditors are interest-free and have settlement dates within one year.  The Directors consider that the carrying amount of trade and other creditors approximates to their fair value.
13.     Other non-current liabilities
						2013			2012
						£m			£m
Trade and other creditors						-			5
Head leases						26			20
Other non-current liabilities						26			25
14.     Deferred Taxation
Deferred tax is calculated on temporary differences under the liability method using a tax rate of 23% (2012: 24%).
The movement in deferred tax is shown below:
				1 April		Credited			31 March
				2012		to income			2013
				£m		£m			£m
Property and investment revaluations				28		(16)			12
Other timing differences				4		-			4
Deferred taxation				32		(16)			16
Under the REIT regime development properties which are sold within three years of completion do not benefit from tax exemption.  At 31 March 2013 the value of such properties is £nil (2012: £763m) and if these properties were to be sold and tax exemption was not available the tax arising would be £nil (2012: £30m)
The deferred tax charge for the year ended 31 March 2013 includes a credit of £1m to reflect reduced deferred tax liabilities arising from the forthcoming reduction in the UK corporation tax rate to 23% (effective from 1 April 2013).
Deferred tax assets of £40m (2012: £41m) arising on losses from previous years have not been recognised in the financial year.
15.     Net debt
								2013			2012
					Footnote			£m			£m
Secured on the assets of the Group
9.125% First Mortgage Debenture Stock 2020					1			37			37
6.125% First Mortgage Debenture Stock 2014					1			45			46
5.264% First Mortgage Debenture Bonds 2035								345			341
5.0055% First Mortgage Amortising Debentures 2035								101			102
5.357% First Mortgage Debenture Bonds 2028								334			322
6.75% First Mortgage Debenture Bonds 2020								181			179
Loan notes								5			5
								1,048			1,032
Unsecured
5.50% Senior Notes 2027								98			98
6.30% Senior US Dollar Notes 2015					2			101			96
3.895% Senior US Dollar Notes 2018					3			28			26
4.635% Senior US Dollar Notes 2021					3			158			145
4.766% Senior US Dollar Notes 2023					3			97			89
5.003% Senior US Dollar Notes 2026					3			62			57
1.5% Convertible Bond 2017								407			-
Bank loans and overdrafts								179			1,078
								1,130			1,589
Gross debt					4			2,178			2,621
Interest rate derivatives: liabilities								86			92
Interest rate derivatives: assets								(92)			(73)
								2,172			2,640
Liquid investments
4.405% Medium Term Note 2015								-			(100)
4.395% Medium Term Note 2015								-			(100)
								-			(200)
Cash and short-term deposits					5			(135)			(137)
Net debt								2,037			2,303
Total borrowings where any instalments are due after five years are £103m (2012: £104m).
								2013			2012
1	These borrowings are obligations of ring-fenced, special purpose companies, with no recourse to other companies or assets in the Group:							£m			£m
			BLD Property Holdings Ltd					82			83
2	Principal and interest on this borrowing was fully hedged into Sterling at the time of issue.
3	Principal and interest on this borrowing was fully hedged into Sterling at a floating rate at the time of issue.
4	The principal amount of gross debt at 31 March 2013 was £2,063m (2012: £2,562m). Included in this, the principal amount of secured borrowings and other borrowings of non-recourse companies was £981m (2012: £982m).
5	Cash and deposits not subject to a security interest amount to £106m (2012: £132m).
Maturity analysis of net debt								2013			2012
								£m			£m
Repayable:		within one year and on demand						44			49
between:		one and two years						188			405
		two and five years						522			776
		five and ten years						441			422
		ten and fifteen years						602			260
		fifteen and twenty years						5			332
		twenty and twenty five years						376			377
								2,134			2,572
Gross debt								2,178			2,621
Interest rate and currency derivatives								(6)			19
Liquid Investments								-			(200)
Cash and short-term deposits								(135)			(137)
Net debt								2,037			2,303

15.     Net debt (continued)
The two financial covenants applicable to the Group unsecured debt including convertible bonds are:
Net Borrowings not to exceed 175% of Adjusted Capital and Reserves
At 31 March 2013, the ratio is 31%:
i. Net Borrowings are £1,962m, being the principal amount of gross debt of £2,063m plus amounts owed to joint ventures of £4m plus TPP Investments Ltd of £30m (see note 17), less the cash and short-term deposits of £135m; and
ii. Adjusted Capital and Reserves are £6,242m, being share capital and reserves of £5,687m (see consolidated statement of changes in equity), adjusted for £14m of deferred tax (see note 2), £10m trading property surplus, £326m exceptional refinancing charges (see below) and £205m fair value adjustments on financial assets and liabilities (£198m mark-to-market on interest rate swaps and £7m fair value adjustment on the convertible bond).
Net Unsecured Borrowings not to exceed 70% of Unencumbered Assets
At 31 March 2013 the ratio is 23%:
i. Net Unsecured Borrowings are £980m, being the principal amount of gross debt of £2,063m plus amounts owed to joint ventures of £4m less cash and deposits not subject to a security interest of £106m less the principal amount of secured and non-recourse borrowings of £981m; and
ii. Unencumbered Assets are £4,313m being properties of £5,554m (see note 8) plus investments in joint ventures and funds of £2,336m (see note 9) and other investments of £76m (see balance sheet) less investments in joint ventures of £1,889m (see note 9) and encumbered assets of £1,764m (see note 8).
In calculating Adjusted Capital and Reserves for the purpose of the unsecured debt financial covenants, there is an adjustment of £326m to reflect the cumulative net amortised exceptional items relating to the refinancings in the years ended 31 March 2005, 2006 and 2007.
Interest rate profile - including effect of derivatives
			2013	2012
			£m	£m
Fixed rate			1,848	1,976
Variable rate (net of cash)			189	327
Net debt			2,037	2,303
Reconciliation of movement in Group net debt to cash flow statement
	2012	Cash flow	Non cash	2013
	£m	£m	£m	£m
Per cash flow statement:
Cash and short-term deposits	(137)	2	-	(135)
Cash and cash equivalents	(137)	2	-	(135)
Term debt (excluding overdrafts)	2,621	(496)	53	2,178
Fair value of interest rate derivatives	19	-	(25)	(6)
Liquid investments	(200)	210	(10)	-
Net debt	2,303	(284)	18	2,037
The Group Loan to Value (LTV) ratio at 31 March 2013 is 24%, being principal value of gross debt of £2,063m less cash and short-term deposits of £135m, divided by total Group property of £5,554m (see note 8) plus investments in joint ventures and funds of £2,336m (balance sheet) and other investments of £76m (see balance sheet).

15.    Net debt (continued)
Maturity of committed undrawn borrowing facilities
		2013	2012
		£m	£m
Maturity date:
between four and five years		108	825
between three and four years		870	-
Total facilities available for more than three years		978	825
between two and three years		-	280
between one and two years		757	100
within one year		369	35
Total		2,104	1,240
The above facilities are available to be drawn for Group purposes.
Comparison of market values and book values at 31 March 2013
	Market	Book
	Value	Value	Difference
	£m	£m	£m
Debentures and unsecured bonds	1,622	1,587	35
Convertible bond	407	407	-
Bank debt and other floating rate debt	189	184	5
Cash and short-term deposits	(135)	(135)	-
	2,083	2,043	40
Other financial (assets) liabilities:
- interest rate derivative assets	(92)	(92)	-
- interest rate derivative liabilities	86	86	-
	(6)	(6)	-
Total	2,077	2,037	40
Short-term debtors and creditors have been excluded from the disclosures.
The fair values of debt and debentures 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.
Convertible Bond
On 10 September 2012 British Land (Jersey) Limited (the Issuer) issued £400 million 1.5 per cent guaranteed convertible bonds due 2017 (the bonds) at par. The Company has unconditionally and irrevocably guaranteed the due and punctual performance by the Issuer of all of its obligations (including payments) in respect of the bonds and the obligations of the Company, as guarantor, constitute direct, unsubordinated unconditional and unsecured obligations of the Company. Subject to their terms, the bonds are convertible into preference shares of the Issuer which are automatically transferred to the Company in exchange for ordinary shares in the Company or, at the Company's election, any combination of ordinary shares and cash. The bonds can be converted from 22 October 2012 up to and including 24 September 2015 if the share price has traded at a level exceeding 130 per cent of the exchange price for a specified period and from 25 September 2015 to (but excluding) the 20th dealing day before 10 September 2017 (the maturity date) at any time. The initial exchange price was 693.07 pence per ordinary share. Under the terms of the bonds, the exchange price is adjusted on the happening of certain events including the payment of dividends by the Company above 26.4 pence in any year. On or after 25 September 2015, the bonds may be redeemed at par at the Company's option subject to the Company's ordinary shares having traded at a price exceeding 130 per cent of the exchange price for a specified period, or at any time once 85 per cent by nominal value of the bonds originally issued have been converted, redeemed, or purchased and cancelled. If not previously converted, redeemed or purchased and cancelled, the bonds will be redeemed at par on the maturity date.

16.     Dividend
The fourth quarter dividend of 6.6 pence per share, totalling £65m (2012: 6.6 pence per share, totalling £58m) was approved by the Board on 13 May 2013 and is payable on 9 August 2013 to shareholders on the register at the close of business on 5 July 2013.
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 four business days before the ex-dividend date of 3 July 2013.  The Board expects to announce the split between PID (Property Income Distribution) and non-PID income at that time. Any 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.
Payment Date	Dividend	PID		Non PID	Pence per share	2013 £m	2012 £m
Current year dividends
09.08.2013	2013 4th interim				6.60	-	-
10.05.2013	2013 3rd interim	6.60	*		6.60	-	-
15.02.2013	2013 2nd interim	6.60	*		6.60	59	-
09.11.2012	2013 1st interim	6.60	*		6.60	59	-
					26.40
Prior year dividends
10.08.2012	2012 4th interim	3.30		3.30	6.60	58	-
9.05.2012	2012 3rd interim	6.50			6.50	58	-
17.02.2012	2012 2nd interim	6.50			6.50	-	58
11.11.2011	2012 1st interim	6.50			6.50	-	58
					26.10
12.08.2011	2011 4th interim	6.50			6.50	-	58
13.05.2011	2011 3rd interim	6.50			6.50	-	57
Dividends in consolidated statement of changes in equity						234	231
Dividends settled in shares						(32)	(18)
Dividends settled in cash						202	213
Timing difference relating to payment of withholding tax						1	(1)
Dividends in cash flow statement						203	212
* Scrip alternative treated as non-PID for this dividend.
17.     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 (2012: £30m) and recourse is only to the partnership assets.

18.     Share capital and reserves
		2013		2012
Number of ordinary shares in issue at 1 April	900,199,638		897,042,298
Share issues	97,491,850		3,157,340
At 31 March	997,691,488		900,199,638
Of the issued 25p ordinary shares, 275,497 shares were held in the ESOP trust (2012: 1,370,161), 11,266,245 shares were held as treasury shares (2012: 11,266,245) and 986,149,746 shares were in free issue (2012: 887,563,232).  No treasury shares were acquired by the ESOP trust during the year.  All issued shares are fully paid.
On 12 March 2013, the Company announced the placing of 89,674,604 new ordinary shares at a price of 550 pence per share.  The new shares are fully paid and rank pari passu in all respects with those ordinary shares of the Company in issue prior to the placing.
Hedging and translation reserve
The hedging and translation reserve comprises the effective portion of the cumulative net change in the fair value of cash flow and foreign currency hedging instruments, as well as all foreign exchange differences arising from the translation of the financial statements of foreign operations. The foreign exchange differences also include the translation of the liabilities that hedge the Company's net investment in a foreign subsidiary.
Revaluation reserve
The revaluation reserve relates to owner-occupied properties and investments in joint ventures and funds.
Merger reserve
This comprises the premium on the share placing in March 2013.  No share premium is recorded in the Company's financial statements, through the operation of the Merger Relief provisions of the Companies Act 2006.

19. Segment Information
Operating segments
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. Prior year comparatives have been updated to reflect this change. The relevant revenue, net rental income, operating result, assets and capital expenditure, being the measure 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 in either year.
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		85		87		176		184		33		29		294		300
Share of joint ventures  and funds		83		82		190		189		-		1		273		272
Total		168		169		366		373		33		30		567		572
Net rental income
British Land Group		82		77		167		175		32		34		281		286
Share of joint ventures  and funds		80		80		180		180		-		-		260		260
Total		162		157		347		355		32		34		541		546
Operating Result
British Land Group		72		77		159		174		(7)		(18)		224		233
Share of joint ventures  and funds		80		80		175		172		1		2		256		254
Total		152		157		334		346		(6)		(16)		480		487
Reconciliation to underlying  profit before taxation
														2013		2012
British Land Group														£m		£m
Total operating result														480		487
British Land Group net  financing costs														(80)		(77)
Share of joint ventures and  funds net financing costs														(126)		(141)
Capital and other														(14)		210
Total profit on ordinary activities before tax														260		479
Of the total revenues above, £19m (2012: £17m) was derived from outside the UK.
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		2,033		2,017		3,071		2,946		450		451		5,554		5,414
Share of joint ventures  and funds		1,684		1,545		3,256		3,372		5		6		4,945		4,923
Total		3,717		3,562		6,327		6,318		455		457		10,499		10,337
Segment assets
British Land Group		2,039		2,023		3,080		2,949		814		995		5,933		5,967
Share of joint ventures  and funds		1,839		1,628		3,367		3,517		12		14		5,218		5,159
Total		3,878		3,651		6,447		6,466		826		1,009		11,151		11,126
Other assets
British Land Group		-		-		-		-		363		533		363		533
Share of joint ventures  and funds		155		83		107		137		7		8		269		228
Total		155		83		107		137		370		541		632		761
Capital expenditure
British Land Group		391		148		315		27		47		347		753		522
Share of joint ventures  and funds		109		113		26		83		-		-		135		196
Total		500		261		341		110		47		347		888		718
Other assets include other investments of £76m (2012: £28m), debtors of £60m (2012: £95m), liquid investments of £nil (2012: £200m), cash of £135m (2012: £137m) and derivatives of £92m (2012: £73m).

Supplementary Disclosures
Table A: SUMMARY INCOME STATEMENT AND BALANCE SHEET
Summary income statement based on proportional consolidation for the year ended 31 March 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.
	31 March 2013						31 March 2012
	Group		Joint ventures		Proportionally		Group	Joint ventures	Proportionally
			and funds		Consolidated			and funds	Consolidated
	£m		£m		£m		£m	£m	£m
Gross rental income	294		273		567		300	272	572
Property operating expenses	(13)		(13)		(26)		(14)	(12)	(26)
Net rental income	281		260		541		286	260	546
Administrative expenses	(72)		(4)		(76)		(69)	(7)	(76)
Fees and other income	15		-		15		16	1	17
Ungeared income return	224		256		480		233	254	487
Net  interest	(80)		(126)		(206)		(77)	(141)	(218)
Underlying profit before taxation	144		130		274		156	113	269
Underlying tax	(1)		-		(1)		(2)	(2)	(4)
Underlying profit after taxation	143		130		273		154	111	265
Underlying earnings per  share - diluted basis					30.3	p			29.7	p
Valuation movement					26				215
Other capital and tax (net)*					(4)				13
Capital and other					22				228
Total return					295				493
*includes other comprehensive income, movement in dilution of share options and the movement in items excluded for EPRA NAV.
The underlying earnings per share is calculated on underlying profit before taxation of £274m, tax attributable to underlying profits of £1m and 901m shares on a diluted basis for the year ended 31 March 2013.

Supplementary Disclosures (continued)
Table A (continued):
Summary balance sheet based on proportional consolidation as at 31 March 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.
	Group	Share of joint ventures & funds	Share options	Deferred tax	Mark-to-Market of interest rate swaps	Head Leases	Valuation surplus on trading properties		EPRA Net assets 2013		EPRA Net assets 2012
	£m	£m	£m	£m	£m	£m	£m		£m		£m
Retail properties	3,080	3,260	-	-	-	(13)	-		6,327		6,318
Office properties	2,039	1,684	-	-	-	(6)	-		3,717		3,562
Other properties	451	5	-	-	-	(11)	10		455		457
Total properties	5,570	4,949	-	-	-	(30)	10		10,499		10,337
Investments in joint	2,336	(2,336)	-	-	-	-	-		-		-
ventures and funds
Other investments	76	(23)	-	-	-	-	-		53		28
Other net (liabilities) assets	(258)	(163)	58	14	-	30	-		(319)		(294)
Net debt	(2,037)	(2,427)	-	-	198	-	-		(4,266)		(4,690)
Net assets	5,687	-	58	14	198	-	10		5,967		5,381
EPRA NAV per share  (note 2)									596	p	595	p
EPRA Net Assets  Movement
						31 March 2013			31 March 2012
						£m	Pence per share		£m		Pence per share
Opening EPRA NAV						5,381	595	p	5,101		567	p
Income return						273	30	p	265		29	p
Capital return						22	2	p	228		25	p
Dividend paid						(202)	(27)	p	(213)		(26)	p
Dilution due to issues  of shares						493	(4)	p	-		-
Closing EPRA NAV						5,967	596	p	5,381		595	p

Supplementary Disclosures (continued)
Table B:  EPRA PERFORMANCE MEASURES
EPRA Performance measures summary table
		2013			2012
	£m	Pence per share		£m	Pence per share
EPRA earnings	268	29.7	p	262	29.4	p
EPRA NAV	5,967	596	p	5,381	595	p
EPRA NNNAV	5,522	552	p	5,148	569	p
EPRA net initial yield		5.5	%		5.2	%
EPRA 'topped-up' net initial yield		5.7	%		5.8	%
EPRA vacancy rate		3.3	%		2.4	%
Calculation of EPRA earnings and EPRA earnings per share				2013	2012
				£m	£m
Profit for the year after taxation				284	480
Exclude
Group - non-underlying current tax				(9)	-
Group - deferred tax				(16)	(3)
Joint ventures and funds - non-underlying current tax				(2)	(1)
Joint ventures and funds - deferred tax				(1)	(1)
Group - net valuation movement (including result on disposals)				(79)	(146)
Joint ventures and funds - net valuation movement (including result on disposals)				62	(72)
Amortisation of intangible assets				1	-
Changes in fair value of financial instruments and associated close-out costs				28	5
EPRA earnings*				268	262
Mark-to-market on / profit on disposal of liquid investments (held for trading assets)				(9)	3
Mark-to-market on convertible bond				7	-
Non-recurring items**				7	-
Underlying earnings				273	265
* Comparatives have been re-presented in line with updated EPRA guidance.
**Non-recurring items for the year ended 31 March 2013 relate to £7m of issue costs for the convertible bond.
				2013	2012
				Number	Number
				million	million
Weighted average number of shares				907	899
Adjustment for treasury shares				(11)	(11)
Adjustment for ESOP shares				(1)	(1)
Weighted average number of shares (basic)				895	887
Dilutive effect of share options				2	2
Dilutive effect of ESOP shares				4	3
Weighted average number of shares (diluted)				901	892
				2013	2012
				Pence	Pence
Earnings per share (basic)				31.7	54.1
Earnings per share (diluted)				31.5	53.8
Underlying earnings per share (diluted)				30.3	29.7
EPRA earnings per share				29.7	29.4
.

Supplementary Disclosures (continued)
Table B (continued):
Net assets per share		2013			2012
	£m	Pence per share		£m	Pence per share
Balance sheet net assets	5,687			5,104
Deferred tax arising on revaluation movements	14			31
Mark-to-market on effective cash flow hedges and related debt adjustments	198			189
Dilution effect of share options	58			57
Surplus on trading properties	10			-
EPRA NAV	5,967	596	p	5,381	595	p
Deferred tax arising on revaluation movements	(14)			(31)
Mark-to-market on effective cash flow hedges and related debt adjustments	(198)			(189)
Mark-to-market on debt	(233)			(13)
EPRA NNNAV	5,522	552	p	5,148	569	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.
EPRA Net Initial Yield and 'topped-up' Net Initial Yield
		2013			2012
		£m			£m
Investment property - wholly-owned		5,554			5,414
Investment property - share of joint ventures and funds		4,945			4,923
Less developments, residential and land		(1,340)			(835)
Completed property portfolio		9,159			9,502
Allowance for estimated purchasers' costs		552			521
Gross up completed property portfolio valuation		9,711			10,023
Annualised cash passing rental income		541			531
Property outgoings		(11)			(8)
Annualised net rents		530			523
Rent expiration of rent-free periods and fixed uplifts*		27			57
'Topped-up' net annualised rent		557			580
EPRA Net Initial Yield		5.5	%		5.2	%
EPRA 'topped-up' Net Initial Yield		5.7	%		5.8	%
Including fixed/minimum uplifts received in lieu of rental growth		26			27
Total 'topped-up' net rents		583			607
Overall 'topped-up' Net Initial Yield		6.0	%		6.1	%
'Topped-up' net annualised rent		557			580
ERV vacant space		19			14
Reversions		-			(18)
Total ERV		576			576
Net Reversionary Yield		5.9	%		5.7	%
* The period over which rent-free periods expire is 2 years (2012: 3 years).
EPRA Vacancy Rate
		2013			2012
		£m			£m
Annualised potential rental value of vacant premises		19			14
Annualised potential rental value for the completed property portfolio		576			576
EPRA vacancy rate		3.3	%		2.4	%

Supplementary Disclosures (continued)
Table C:  GROSS RENTAL INCOME AND ACCOUNTING RETURN
Calculation of gross rental income
				31 March	31 March
				2013	2012
				£m	£m
Rent receivable				538	533
Spreading of tenant incentives and guaranteed rent increases				28	38
Surrender premia				1	1
Gross rental income				567	572
	31 March 2013			31 March 2012
Total accounting return		4.6	%		9.5	%

 

END

 

 

FR UORUROBAVAUR