Interim Results - Part 4

British Land Co PLC
29 November 2001


PART 4




  15. Net debt  
                                                              
31 March                                                                    
    2001                                                     2001      2000    
     £m                                                        £m        £m     
                                Secured on the assets of                      
                                the Group                                     

   97.6                    +    6.5055% Notes 2038           97.7      97.6    
  246.5                         8.875% FMD Bonds 2035       246.6     246.5   
  197.1                         9.375% FMD Stock 2028       197.1     197.1   
                           +    7.743% Notes 2025            19.6              
   12.6                         10.5% FMD Stock 2019/24      12.6      12.6    
   20.4                         11.375% FMD Stock 2019/24    20.4      20.4    
    1.8                    +    5.66% 135 Bishopsgate         1.9      27.5    
                                Securitisation 2018                           
    7.1                    +    8.49% 135 Bishopsgate         7.1     105.6   
                                Securitisation 2018                           
  583.1                                                     603.0     707.3   
                                Unsecured                                     
   73.2                    +    Class C2 6.4515% Notes       73.2      73.2    
                                2032                                          
  219.6                    +    Class B 6.0875% Notes 2031  219.7     219.5   
  146.4                    +    Class A3 5.7125% Notes      146.5     146.4   
                                2031                                          
  295.7                    +    Class A2 5.67% Notes 2029   293.8     297.7   
                           +    Class A2 (C) 6.457% Notes   156.8             
                                2025                                          
                           +    Class B2 6.998% Notes 2025  205.5             
                           +    Class B3 7.243% Notes 2025   20.5              
  317.2                    +    Class A1 Fixed Rate Notes   317.4     317.1   
                                2024                                          
  147.6                    **   8.875% Bonds 2023                     147.6   
   25.2                    +    5.66% 135 Bishopsgate        24.9              
                                Securitisation 2018                           
   97.2                     +    8.49% 135 Bishopsgate       96.5              
                                Securitisation 2018                           
                           +    Class A1 6.389% Notes 2016   64.1              
                           +    Class B1 7.017% Notes 2016   98.3              
  150.0                    **   12.5% Bonds 2016                      150.0   
  170.8                    +    Class C1 6.7446% Notes      170.9     170.7   
                                2014                                          
  127.4                    +    Class D Fixed / Floating    112.8     141.4   
                                Rate Notes 2014                               
    1.7                           10.25% Bonds 2012           1.7       1.7     
   97.8                     *    7.35% Senior US Dollar      97.8      97.8    
                                Notes 2007                                    
  894.2                         Bank loans and overdrafts  1,011.4   1,030.0 
2,764.0                                                    3,111.8   2,793.1 
                                Convertible Bonds                             
  146.6                         6% Subordinated              146.7     146.6   
                                Irredeemable Convertible                      
                                Bonds                                         
  317.3                         6.5% Convertible Bonds       317.7     317.0   
                                2007                                          
  463.9                                                      464.4     463.6   
3,811.0                         Gross debt                  4,179.2   3,964.0 
 (94.2)                         Cash and deposits           (142.7)   (395.2) 
3,716.8                         Net debt                    4,036.5   3,568.8 

  + These borrowings are obligations of ringfenced, default remote, special   
  purpose companies, with no recourse to other companies or assets in the     
  Group.                                                                      
  * These borrowings have been hedged into Sterling since the date of issue.  
  ** These bonds were repurchased on 1 May 2001 (Note 4).                     
                                                                              
  15. Net debt (continued)                                                    

31 March             Maturity analysis                                      
                       of net debt                                            
    2001                                                     2001      2000    
      £m                                                       £m        £m     
                       Repayable:                                             

  289.8                within one year                      337.2     269.6   
                       and on demand                                          
  283.1                between: one and                     506.0     265.8   
                       two years                                              
  509.4                                     two and five    395.2     674.0   
                                            years                             
  637.3                                     five and ten    710.4     639.6   
                                            years                             
  381.0                                     ten and         317.7     234.0   
                                            fifteen years                     
  197.6                                     fifteen and     324.5     350.4   
                                            twenty years                      
  382.2                                     twenty and      481.3     376.4   
                                            twenty five                       
                                            years                             
  555.9                                     twenty five     569.9     522.8   
                                            and thirty                        
                                            years                             
  428.1                                     thirty and      390.3     462.6   
                                            thirty five                       
                                            years                             
                                            thirty five                22.2    
                                            and forty                         
                                            years                             
  146.6                Irredeemable                         146.7     146.6   
3,811.0                Gross debt                         4,179.2   3,964.0 
 (94.2)                Less cash and                      (142.7)   (395.2) 
                       deposits                                                
3,716.8                Net debt                           4,036.5   3,568.8 

  31 March             Maturity of committed undrawn                          
                       borrowing facilities                                   
     2001                                                      2001      2000   
                            
      £m                                                         £m        £m   
  
                       Expiring:                                              

   239.5               Within one year                        206.8     212.3   
   219.5               between: one and                       105.0     240.5   
                       two years                                               
    81.8                                    two and three      29.0     168.8   
                                            years                             
   252.5                                    three and         345.0      29.0   
                                            four years                        
   360.0                                    four and five     315.0     345.0   
                                            years                             
    75.4                                    over five          40.5     124.9   
                                            years                             
 1,228.7              Total                                 1,041.3   1,120.5 


         31 March   Interest rate profile - including                      
                    effect of derivatives                                  
             2001                                    2001      2000    
               £m                                      £m        £m      
           3,095.1   Fixed rate                    3,444.2   3,179.1 
             200.0   Capped rate                     200.0     200.0   
             421.7   Variable rate (net of cash)     392.3     189.7   
           3,716.8   Net debt                      4,036.5   3,568.8 
                                                                              

  15. Net debt (continued)                                                    

  Comparison of market values and book values at 30 September 2001            

                                                 Market      Book               
                                                  Value     Value  Difference 
                                                    £m        £m          £m    
    
  Fixed rate debt:                                                            
  Securitised debt                             2,230.1   2,127.2        102.9   
  Other fixed rate debt                          703.5     576.2        127.3   
  Convertible debt                               469.5     464.4          5.1   
  Bank debt (net)                                868.7     868.7                
  Derivatives                                     18.7                   18.7   
  Net debt                                     4,290.5   4,036.5        254.0   
  

  The Market Value and Difference are shown before any tax                    
  relief.                                                                     
                                                                              
  16. Notes to the cash flow statement                                        

  Reconciliation of operating profit to net cash inflow from operating        
  activities                                                                  
                                                                              
  Year ended                                                                  
    31 March                                                                    
        2001                                                  2000     2000    
  (restated)                                                      (restated)
     £m                                                         £m       £m     

  373.8        Operating profit                              183.6    192.2   
  (6.8)        Dividends received                            (4.8)    (6.3)   
    0.6        Depreciation                                    0.9      0.1     
   15.7        Decrease in                                             16.8    
               trading properties                                               
 (29.4)        Decrease                                       37.4   (13.6)  
               (increase) in                                                  
               debtors                                                        
   26.4        Increase in                                    13.3      8.9     
               creditors                                                      
  380.3        Net cash inflow                               230.4    198.1   
               from operating                                                 
               activities                                                     

  Analysis of Group net debt                                                  
                                       1                         30       30    
                                   April Cash  Non cash   September September
                                    2001 flow  movements       2001     2000    
                                     £m    £m        £m          £m       £m    
 
  Cash at                        (29.2) (32.7)               (61.9)   (363.0) 
  bank                                                          
  Overdraft                         6.0  (3.4)                  2.6      4.6    
                                                                      
  Net cash per cash flow         (23.2) (36.1)     0.0       (59.3)   (358.4) 
  statement                                                         
  Term debt                     3,341.1  367.2     3.9      3,712.2   3,495.8 
                                                               
  Convertible Bonds               463.9            0.5        464.4     463.6   
                                                                             
  Term                           (65.0)         (15.8)       (80.8)    (32.2)  
  deposits                                                    
  Group net debt                3,716.8  315.3     4.4      4,036.5   3,568.8 
                          

  Reconciliation of net cash flow to                                 
  movement in Group net debt                                                  

  Year ended                                                                  
    31 March                                                                    
        2001                                             2001            2000   
         £m                                                £m              £m   
  

  3,762.3      Brought                                3,716.8         3,762.3 
               forward                                                        
               Movement                                                       
               in net                                                         
               debt in                                                        
               the                                                            
               period                                                         
     25.1                 (Increase)                   (36.1)         (310.1) 
                          decrease in cash                                    
   (78.0)                 Cash inflow (outflow)         367.2            84.3   
                          from movement in debt                               
    (1.0)                 Cash (outflow) inflow in     (15.8)            31.8   
                          term deposits                                       
                                                                                
   (53.9)    Changes resulting from cash flows           315.3        (194.0) 
      8.4     Other non cash movements                     4.4            0.5   
   (45.5)                                                319.7        (193.5) 
  3,716.8   Carried forward                            4,036.5        3,568.8 
                                                                              

17. Net Asset Value per share

                                                                              
           31 March      31 March                                             
               2001          2001                                             
                         Adjusted   *                                         
                Net           Net                                             
 Shares      Assets        Assets                                             
           (restated)                                                       
     m          £m            £m                                              
                                       Net Asset                              
                                       Value                                  
                                       (undiluted)                            
  518.2     3,914.5       3,914.5      Shareholders'                          
                                       funds as                               
                                       shown on                               
                                       balance sheet                          
                             90.5      Prior year                             
                                       adjustment                             
                          4,005.0      Adjusted to                            
                                       exclude the                            
                                       effects of                             
                                       FRS 19 and                             
                                       UITF 28                                
                                       Total                                  
                                       external                               
                                       valuation                              
                                       surplus on                             
                                       development                            
              149.4         149.4                     and trading properties  
                                                      (note 8)                
            4,063.9       4,154.4      Net assets                             
                                       attributable                           
                                       to ordinary                            
                                       shares                                 

                784   p       802  p*  Net Asset                              
                                       Value per                              
                                       share                                  
                                       (undiluted)                            
                                       Fully diluted Net Asset                
                                       Value                                  

  518.2     4,063.9       4,154.4      Net assets attributable                
                                       to ordinary shares                     
                                       Adjust to fully diluted                
                                       on conversion of:                      

  30.0        146.6         146.6                                 6%          
                                                                  Irredeemable
                                                                  Convertible 
                                                                  Bonds       

  48.1        317.3         317.3                                 6.5%        
                                                                  Convertible 
                                                                  Bonds 2007  
                                       Net assets attributable                
                                       to fully diluted                       

  596.3     4,527.8       4,618.3                                 ordinary    
                                                                  shares      

                759   p       774  p*  Fully                                  
                                       diluted Net                            
                                       Asset Value                            
                                       per share                              
 
 
The NAV includes the surplus of the external property valuation over the book
value of both development and trading properties. Such properties are
included in the balance sheet at the lower of cost and net realisable value.

* Adjusted NAV is calculated by excluding the balance sheet effects of FRS 19
and UITF 28, as set out in Note 1.

17. Net Asset Value per share

                                                                              
                                   30       30                 30       30    
                            September September         September September     
                                 2001     2001              2000       2000
                                      Adjusted *                   Adjusted *
                                  Net      Net                Net       Net    
                       Shares  Assets   Assets   Shares    Assets    Assets    
                                                       (restated)             
                           m       £m       £m        m        £m        £m     
  Net Asset                                                                   
  Value                                                                       
  (undiluted)                                                                 
  Shareholders'         518.4 3,992.6  3,992.6    518.0   3,547.3    3,547.3    
  funds as shown            
  on balance              
  sheet                                                                       
  Prior year                              93.3                          82.6    
  adjustment                             
  Adjusted to                          4,085.9                       3,629.9    
  exclude the                           
  effects of FRS                      
  19 and UITF 28                                                              
  Total external                                                              
  valuation                                                                   
  surplus on                                                                  
  development                                                                 
                   and          130.4    130.4               158.2     158.2    
                   trading  
                                                    
                   proper                                                     
                   ties                                                       
                   (note                                                      
                   8)                                                         
  Net assets                  4,123.0  4,216.3             3,705.5   3,788.1    
  attributable                 
  to ordinary                
  shares                                                                      
  Net Asset                       795 p    813 p*              715 p     731 p*
  Value per      
  share                                                                       
  (undiluted)                                                                 
           Fully                                                              
           diluted                                                             
           Net                                                              
           Asset                                                              
           Value                                                              
           Net          518.4 4,123.0  4,216.3    518.0    3,705.5   3,788.1    
           assets        
           attrib           
           utable           
           to                                                                 
           ordinary                                                             
           shares                                                             
           Adjust                                                             
           to                                                                 
           fully                                                              
           diluted
           on                                                               
           conver                                                             
           sion                                                               
           of:                                                                
                   6%    30.0   146.7    146.7     30.0      146.6     146.6    
                   Irrede    
                   emable  
                   Conver                                                     
                   tible                                                      
                   Bonds                                                      
                   6.5%  48.1   317.7    317.7     48.1      317.0     317.0

                   Conver  
                   tible   
                   Bonds                                                      
                   2007                                                       
           Net                                                                
           assets                                                             
           attrib                                                             
           utable                                                             
           to                                                                 
           fully                                                              
           diluted                                                             
                                                                             
                   ordi 596.5 4,587.4  4,680.7    596.1    4,169.1   4,251.7    
                   nary        
                   shares  
                                           
  Fully diluted                   769 p    785 p*              699 p     713 p*
  Net Asset                                                                   
  Value per share   
                                                          
The NAV includes the surplus of the external property valuation over the book
value of both development and trading properties. Such properties are
included in the balance sheet at the lower of cost and net realisable value.

* Adjusted NAV is calculated by excluding the balance sheet effects of FRS 19
and UITF 28, as set out in Note 1.

                                                                              
  18. Reserves                                                                  
 
                               Share     Other  Revaluation   Profit     Total
                             premium  reserves      reserve      and          
                                                                loss          
                                                             account          
                                 £m        £m           £m       £m        £m 
  At 1 April                 1,105.3     (1.9)      2,092.1    679.9   3,875.4
  2001                                                                        
  Prior year                                                  (90.5)    (90.5)
  adjustment                                                                  
  (see Note                                                                   
  1)                                                                          
  Restated                   1,105.3     (1.9)      2,092.1    589.4   3,784.9
  at 1 April                                                                  
  2001                                                                        
  Issues                         0.6                                       0.6
  Retained                                                      43.6      43.6
  profit for                                                                  
  the period                                                                  
  Realisation                                                                 
  of prior                                                                    
  year                                                                        
               revaluations                          (56.2)     56.2       0.0
  Current                                              43.8               43.8
  year                                                                        
  revaluation                                                                 
  Exchange                                                                    
  movements                                                                   
  on net                                                                      
               investments                 0.4        (0.3)                0.1
  Taxation                                                                    
  on                                                                          
  realisation                                                                 
  of                                                                          
               prior year                                     (10.0)    (10.0)
               revaluations                                                   
  At 30                      1,105.9     (1.5)      2,079.4    679.2   3,863.0
  September                                                                   
  2001      
                                                                  
  19. Contingent liabilities                                                    
            

It is estimated that, in the event of the realisation of all investment
properties and fixed asset investments at book value, the liability for tax,
after capital losses and available reliefs at 30 September 2001 would not be
more than £570m (31 March 2001 - £590m) and at the total value of investment,
development and trading properties as shown in Note 8, £600m (31 March 2001 -
£630m).

The deferred tax provision (see Note 14) relating to capital allowances on
investment properties whisch would be released on such realisation, assuming
no balancing charge would be incurred, is £79.7m (31 March 2001 - £76.6m).

Contingent liabilities of the Parent for guarantees to third parties amounted
to £33.0m (31 March 2001 - £33.0m).