Final Results- Part 2

		2016		20152
Revenue	3	569	21	590	505	51	556
Costs	3	(128)	(11)	(139)	(115)	(45)	(160)
	3	441	10	451	390	6	396
Joint ventures and funds (see also below)	8	135	262	397	129	597	726
Administrative expenses		(93)	-	(93)	(85)	-	(85)
Valuation movement	4	-	616	616	-	884	884
Profit on disposal of investment properties and investments		-	35	35	-	20	20
Net financing costs
- financing income	5	5	65	70	7	-	7
- financing charges	5	(111)	(34)	(145)	(112)	(47)	(159)
		(106)	31	(75)	(105)	(47)	(152)
Profit on ordinary activities before taxation		377	954	1,331	329	1,460	1,789
Taxation	6		33	33		(24)	(24)
Profit for the year after taxation				1,364			1,765
Attributable to non-controlling interests		14	5	19	16	39	55
Attributable to shareholders of the Company		363	982	1,345	313	1,397	1,710
Earnings per share:
- basic	2			131.2p			168.3p
- diluted	2			124.1p			167.3p

		2016		20152
Results of joint ventures and funds accounted for using the equity method
Underlying Profit		135	-	135	129	-	129
Valuation movement	4	-	245	245	-	589	589
Profit on disposal of investment properties, trading properties and investments		-	18	18	-	6	6
Taxation		-	(1)	(1)	-	2	2
	8	135	262	397	129	597	726

	2016 £m	2015 £m
Profit for the year after taxation	1,364	1,765
Other comprehensive income:
Items that will not be reclassified subsequently to profit or loss:
Net actuarial loss on pension scheme	(1)	(5)
Valuation movements on owner-occupied property	19	10
	18	5
Items that may be reclassified subsequently to profit or loss:
(Losses) gains on cash flow hedges
- Group	(24)	(71)
- Joint ventures and funds	(3)	3
- Reclassification of items from the statement of comprehensive income	-	30
	(27)	(38)
Transferred to the income statement (cash flow hedges)
- Foreign currency derivatives	2	(11)
- Interest rate derivatives	10	8
	12	(3)
Exchange differences on translation of foreign operations
- Hedging and translation	(3)	6
- Other	3	(6)
	-	-

Deferred tax on items of other comprehensive income	(15)	10

Other comprehensive loss for the year	(12)	(26)
Total comprehensive income for the year	1,352	1,739
Attributable to non-controlling interests	19	53
Attributable to shareholders of the Company	1,333	1,686

	Note	2016 £m	2015 £m
ASSETS
Non-current assets
Investment and development properties	7	9,643	9,120
Owner-occupied property	7	95	60
		9,738	9,180
Other non-current assets
Investments in joint ventures and funds	8	3,353	2,901
Other investments	9	142	379
Deferred tax assets	13	3	-
Interest rate and currency derivative assets	14	167	139
		13,403	12,599
Current assets
Trading properties	7	325	274
Debtors	10	33	20
Cash and short-term deposits	14	114	108
		472	402
Total assets		13,875	13,001
LIABILITIES
Current liabilities
Short-term borrowings and overdrafts	14	(74)	(102)
Creditors	11	(218)	(261)
Corporation tax		(18)	(9)
		(310)	(372)
Non-current liabilities
Debentures and loans	14	(3,687)	(3,847)
Other non-current liabilities	12	(122)	(79)
Deferred tax liabilities	13	-	(12)
Interest rate and currency derivative liabilities	14	(137)	(126)
		(3,946)	(4,064)
Total liabilities		(4,256)	(4,436)
Net assets		9,619	8,565
EQUITY
Share capital		260	258
Share premium		1,295	1,280
Merger reserve		213	213
Other reserves		(93)	(82)
Retained earnings		7,667	6,563
Equity attributable to shareholders of the Company		9,342	8,232
Non-controlling interests		277	333
Total equity		9,619	8,565
EPRA NAV per share*	2	919p	829p

	Note	2016 £m	20151 £m
Rental income received from tenants		435	397
Fees and other income received		58	49
Operating expenses paid to suppliers and employees		(152)	(128)
Cash generated from operations		341	318

Interest paid		(124)	(124)
Interest received		11	18
Corporation taxation repayments received		8	-
Distributions and other receivables from joint ventures and funds	8	58	73
Net cash inflow from operating activities		294	285

Cash flows from investing activities
Development and other capital expenditure		(256)	(157)
Purchase of investment properties		(243)	(172)
Sale of investment and trading properties		564	415
Payments received in respect of future trading property sales		40	32
Purchase of investments		-	(7)
Acquisition of Speke Unit Trust		-	(90)
Tesco property swap		-	(93)
Investment in and loans to joint ventures and funds		(241)	(173)
Capital distributions and loan repayments from joint ventures and funds		366	134
Net cash inflow (outflow) from investing activities		230	(111)

Cash flows from financing activities
Issue of ordinary shares		5	12
Dividends paid	15	(235)	(228)
Dividends paid to non-controlling interests		(16)	(19)
Acquisition of units in Hercules Unit Trust		(61)	(93)
Closeout of interest rate derivatives		15	(12)
Cash collateral transactions		(24)	10
Decrease in bank and other borrowings		(919)	(581)
Drawdowns on bank and other borrowings		373	703
Issue of zero coupon 2015 convertible bond		344	-
Net cash outflow from financing activities		(518)	(208)

Net increase (decrease) in cash and cash equivalents		6	(34)
Cash and cash equivalents at 1 April		108	142
Cash and cash equivalents at 31 March		114	108

Cash and cash equivalents consists of:
Cash and short-term deposits	14	114	108

	Share capital £m	Share premium £m	Hedging and translation reserve1 £m	Re- valuation reserve £m	Merger reserve £m	Retained earnings £m	Total £m	Non-controlling interests £m	Total equity £m
Balance at 1 April 2015	258	1,280	(76)	(6)	213	6,563	8,232	333	8,565
Profit for the year after taxation	-	-	-	-	-	1,345	1,345	19	1,364
Losses on cash flow hedges	-	-	(24)	-	-	-	(24)	-	(24)
Revaluation of owner-occupied property	-	-	-	19	-	-	19	-	19
Exchange and hedging movements in joint ventures and funds	-	-	-	(3)	-	-	(3)	-	(3)
Reclassification of gains on cash flow hedges
- Foreign currency derivatives	-	-	2	-	-	-	2	-	2
- Interest rate derivatives	-	-	10	-	-	-	10	-	10
Exchange differences on translation of foreign operations	-	-	(3)	3	-	-	-	-	-
Net actuarial loss on pension schemes	-	-	-	-	-	(1)	(1)	-	(1)
Deferred tax on items of other comprehensive income	-	-	(16)	1	-	-	(15)	-	(15)
Other comprehensive (loss) income	-	-	(31)	20	-	(1)	(12)	-	(12)
Total comprehensive income for the year	-	-	(31)	20	-	1,344	1,333	19	1,352
Share issues	2	15	-	-	-	(12)	5	-	5
Fair value of share and share option awards	-	-	-	-	-	8	8	-	8
Purchase of units from non-controlling interests	-	-	-	-	-	-	-	(59)	(59)
Loss on purchase of units from non-controlling interests	-	-	-	-	-	(1)	(1)	-	(1)
Dividends payable in year (28.0p per share)	-	-	-	-	-	(287)	(287)	-	(287)
Dividends payable by subsidiaries	-	-	-	-	-	-	-	(16)	(16)
Adjustment for scrip dividend element	-	-	-	-	-	52	52	-	52
Balance at 31 March 2016	260	1,295	(107)	14	213	7,667	9,342	277	9,619

Balance at 1 April 2014	255	1,257	(32)	(38)	213	5,091	6,746	371	7,117
Profit for the year after taxation	-	-	-	-	-	1,710	1,710	55	1,765
Losses on cash flow hedges	-	-	(69)	-	-	-	(69)	(2)	(71)
Revaluation of owner-occupied property	-	-	-	10	-	-	10	-	10
Exchange and hedging movements in joint ventures and funds	-	-	-	3	-	-	3	-	3
Reclassification of items from the statement of comprehensive income	-	-	-	30	-	-	30	-	30
Reclassification of (losses) gains on cash flow hedges
- Foreign currency derivatives	-	-	(11)	-	-	-	(11)	-	(11)
- Interest rate derivatives	-	-	8	-	-	-	8	-	8
Exchange differences on translation of foreign operations	-	-	6	(6)	-	-	-	-	-
Net actuarial loss on pension schemes	-	-	-	-	-	(5)	(5)	-	(5)
Deferred tax on items of other comprehensive income	-	-	22	(5)	-	(7)	10	-	10
Other comprehensive (loss) income	-	-	(44)	32	-	(12)	(24)	(2)	(26)
Total comprehensive income for the year	-	-	(44)	32	-	1,698	1,686	53	1,739
Share issues	3	23	-	-	-	(10)	16	-	16
Non-controlling interest on acquisition of subsidiary	-	-	-	-	-	-	-	31	31
Fair value of share and share option awards	-	-	-	-	-	10	10	-	10
Purchase of units from non-controlling interests	-	-	-	-	-	2	2	(103)	(101)
Dividends payable in year (27.3p per share)	-	-	-	-	-	(277)	(277)	-	(277)
Dividends payable by subsidiaries	-	-	-	-	-	-	-	(19)	(19)
Adjustment for scrip dividend element	-	-	-	-	-	49	49	-	49
Balance at 31 March 2015	258	1,280	(76)	(6)	213	6,563	8,232	333	8,565

	2016		2015
Underlying
Underlying basic	365	1,025	35.6	313	1,016	30.8
Underlying diluted	371	1,089	34.1	313	1,022	30.6
EPRA
EPRA basic	365	1,025	35.6	313	1,016	30.8
EPRA diluted	371	1,089	34.1	319	1,080	29.5
IFRS
Basic	1,345	1,025	131.2	1,710	1,016	168.3
Diluted	1,351	1,089	124.1	1,710	1,022	167.3

	2016		2015
EPRA
EPRA NAV	10,074	1,096	919	9,035	1,090	829
EPRA NNNAV	9,640	1,096	880	8,359	1,090	767
IFRS
Basic	9,619	1,029	935	8,565	1,020	840
Diluted	10,019	1,096	914	8,565	1,032	830

	2016		2015
Total accounting return	90	28.02	14.2%		141	27.30	24.5%

	2016
Rent receivable	437	-	369	-
Spreading of tenant incentives and guaranteed rent increases	12	-	26	-
Surrender premia	2	-	4	-
Gross rental income	451	-	399	-
Trading property sales proceeds	-	21	-	51
Service charge income	72	-	65	-
Management and performance fees (from joint ventures and funds)	8	-	7	-
Other fees and commissions	38	-	34	-
Revenue	569	21	505	51

Trading property cost of sales	-	(11)	-	(45)
Service charge expenses	(72)	-	(65)	-
Property operating expenses	(26)	-	(24)	-
Other fees and commissions expenses	(30)	-	(26)	-
Costs	(128)	(11)	(115)	(45)
	441	10	390	6

	2016 £m	2015 £m
Consolidated income statement
Revaluation of properties	616	884
Revaluation of properties held by joint ventures and funds accounted for using the equity method	245	589
	861	1,473
Consolidated statement of comprehensive income
Revaluation of owner-occupied properties	19	10
	880	1,483

	2016 £m	2015 £m
Underlying

Financing charges
Bank loans, overdrafts and derivatives	(30)	(36)
Other loans	(88)	(88)
Obligations under head leases	(2)	(2)
	(120)	(126)
Development interest capitalised	9	14
	(111)	(112)
Financing income
Deposits, securities and liquid investments	3	2
Loans to joint ventures	2	5
	5	7
Net financing charges - underlying	(106)	(105)

Capital and other

Financing charges
Valuation movements on translation of foreign currency debt	2	(11)
Hedging reserve recycling	(2)	11
Valuation movements on fair value derivatives	54	108
Valuation movements on fair value debt	(53)	(104)
Recycling of fair value movement on close-out of derivatives	(6)	(12)
Capital financing costs1	(29)	(2)
Fair value movement on convertible bonds	-	(35)
Valuation movement on translation of foreign currency net assets	-	(1)
Fair value movement on non-hedge accounted derivatives	-	(1)
	(34)	(47)
Financing income
Fair value movement on convertible bonds	64	-
Fair value movement on non-hedge accounted derivatives	1	-
	65	-
Net financing income (charges) - capital	31	(47)


Net financing costs
Total financing income	70	7
Total financing charges	(145)	(159)
Net financing costs	(75)	(152)

	2016 £m	2015 £m
Taxation income (expense)
Current taxation:
UK corporation taxation: 20% (2014/15: 21%)	(15)	(1)
Adjustments in respect of prior years	17	-
Total current taxation income (expense)	2	(1)
Deferred taxation on revaluations and derivatives	31	(23)
Group total taxation	33	(24)
Attributable to joint ventures and funds	(1)	2
Total taxation income (expense)	32	(22)

Taxation reconciliation
Profit on ordinary activities before taxation	1,331	1,789
Less: profit attributable to joint ventures and funds1	(397)	(726)
Group profit on ordinary activities before taxation	934	1,063
Taxation on profit on ordinary activities at UK corporation taxation rate of 20% (2014/15: 21%)	(187)	(223)
Effects of:
REIT exempt income and gains	161	232
Taxation losses	11	(10)
Deferred taxation on revaluations and derivatives	31	(23)
Adjustments in respect of prior years	17	-
Group total taxation income (expense)	33	(24)

	Investment
Carrying value at 1 April 2015	5,584	2,902	249	385	9,120	274	60	9,454
Additions
- property purchases	4	234	-	-	238	-	-	238
- development expenditure	4	6	1	43	54	59	-	113
- capitalised interest and staff costs	-	-	1	3	4	5	-	9
- capital expenditure on asset management initiatives	91	24	1	-	116	-	-	116
	99	264	3	46	412	64	-	476
Depreciation	-	-	-	-	-	-	(1)	(1)
Disposals	(372)	(130)	-	(7)	(509)	(11)	-	(520)
Reclassifications	135	22	-	(172)	(15)	(2)	17	-
Revaluations included in income statement	161	369	4	82	616	-	-	616
Revaluation included in OCI	-	-	-	-	-	-	19	19
Movement in tenant incentives and contracted rent uplift balances	10	9	-	-	19	-	-	19
Carrying value at 31 March 2016	5,617	3,436	256	334	9,643	325	95	10,063
Head lease liabilities (note 12)								(37)
Valuation surplus on trading properties							85
Group property portfolio valuation at 31 March 2016							10,111
Non-controlling interests								(324)
Group property portfolio valuation at 31 March 2016 attributable to shareholders			9,787

	2016		2015
Knight Frank LLP	7,529	3,576	11,105	6,795	3,313	10,108
CBRE	2,582	1,361	3,943	2,714	1,401	4,115
Total property portfolio valuation	10,111	4,937	15,048	9,509	4,714	14,223
Non-controlling interests	(324)	(76)	(400)	(441)	(105)	(546)
Total property portfolio valuation attributable to shareholders	9,787	4,861	14,648	9,068	4,609	13,677

Investment			ERV per sq ft		Equivalent Yield	Costs to complete per sq ft
Retail & leisure	5,608	Investment methodology	2	75	22	3	11	5	-	45	8
Offices & residential1,2	3,492	Investment methodology	4	136	53	1	8	4	-	150	15
Canada Water	250	Investment methodology	15	25	22	1	5	3	-	5	4
Developments2	343	Residual methodology	65	107	73	4	5	4	-	664	447
Total	9,693
Trading properties at fair value	418
Group property portfolio valuation	10,111

Summary movement for the year of the investments in joint ventures and funds	Joint ventures £m	Funds £m	Total £m	Equity £m	Loans £m	Total £m
At 1 April 2015	2,586	315	2,901	2,598	303	2,901
Additions	246	-	246	14	232	246
Disposals	(2)	(13)	(15)	-	(15)	(15)
Share of profit on ordinary activities after taxation	365	32	397	397	-	397
Distributions and dividends:
- Capital	-	(76)	(76)	(76)	-	(76)
- Revenue	(90)	(13)	(103)	(103)	-	(103)
Hedging and exchange movements	4	(1)	3	3	-	3
At 31 March 2016	3,109	244	3,353	2,833	520	3,353

	2016 £m	2015 £m
Rental income received from tenants	208	234
Fees and other income received	1	1
Operating expenses paid to suppliers and employees	(18)	(26)
Cash generated from operations	191	209
Interest paid	(86)	(114)
Interest received	1	2
UK corporation tax paid	(3)	(7)
Foreign tax paid	(1)	(2)
Cash inflow from operating activities	102	88
Cash inflow from operating activities deployed as:
Surplus cash retained within joint ventures and funds	44	15
Revenue distributions per consolidated statement of cash flows	58	73
Revenue distributions split between controlling and non-controlling interests
Attributable to non-controlling interests	4	7
Attributable to shareholders of the Company	54	66

	2016		2015
At 1 April	99	280	379	92	170	262
Additions	-	35	35	-	113	113
Disposals	-	(272)	(272)	-	(2)	(2)
Revaluation	2	-	2	7	-	7
Depreciation	-	(2)	(2)	-	(1)	(1)
At 31 March	101	41	142	99	280	379

	2016 £m	2015 £m
Trade and other debtors	24	16
Prepayments and accrued income	9	4
	33	20

	2016 £m	2015 £m
Trade creditors	39	61
Other taxation and social security	34	31
Accruals	72	98
Deferred income	73	71
	218	261

	2016 £m	2015 £m
Other creditors	70	32
Head leases1	46	41
Net pension liabilities	6	6
	122	79

	1 April 2015 £m	Credited to income £m	Credited (debited) to equity £m	Transferred to joint ventures £m	31 March 2016 £m
Interest rate and currency derivative revaluations	-	-	5	-	5
Other timing differences	-	6	-	-	6
	-	6	5	-	11

	£m	£m	£m	£m	£m
Property and investment revaluations	(5)	-	(2)	-	(7)
Interest rate and currency derivative revaluations	(4)	25	(21)	-	-
Other timing differences	(3)	-	-	2	(1)
	(12)	25	(23)	2	(8)

Net deferred tax (liability) asset	(12)	31	(18)	2	3

	Footnote	2016 £m	2015 £m
Secured on the assets of the Group
9.125% First Mortgage Debenture Stock 2020	1.1	34	35
5.264% First Mortgage Debenture Bonds 2035		371	355
5.0055% First Mortgage Amortising Debentures 2035		100	99
5.357% First Mortgage Debenture Bonds 2028		349	344
6.75% First Mortgage Debenture Stock 2020		62	176
Bank loans	1.2, 1.3	733	963
Loan notes		2	2
		1,651	1,974
Unsecured
5.50% Senior Notes 2027		101	98
6.30% Senior US Dollar Notes 2015		-	104
3.895% Senior US Dollar Notes 2018	2	28	28
4.635% Senior US Dollar Notes 2021	2	165	158
4.766% Senior US Dollar Notes 2023	2	105	99
5.003% Senior US Dollar Notes 2026	2	69	64
3.81% Senior Notes 2026		113	111
3.97% Senior Notes 2026		116	114
1.5% Convertible Bond 2017		445	493
0% Convertible Bond 2020		334	-
Bank loans and overdrafts		634	706
		2,110	1,975
Gross debt	3	3,761	3,949
Interest rate and currency derivative liabilities		137	126
Interest rate and currency derivative assets		(167)	(139)
Cash and short-term deposits	4,5	(114)	(108)
Total net debt		3,617	3,828
Net debt attributable to non-controlling interests		(104)	(190)
Net debt attributable to shareholders of the Company		3,513	3,638

	2016 £m	2015 £m
1.1 BLD Property Holdings Ltd	34	35
1.2 Hercules Unit Trust	443	645
1.3 TBL Properties Limited and subsidiaries	290	318
	767	998

	2016 £m	2015 £m
Repayable: within one year and on demand	74	102
Between: one and two years	504	71
two and five years	1,491	1,707
five and ten years	807	943
ten and fifteen years	500	747
fifteen and twenty years	385	6
twenty and twenty five years	-	373
	3,687	3,847
Gross debt	3,761	3,949
Interest rate and currency derivatives	(30)	(13)
Cash and short-term deposits	(114)	(108)
Net debt	3,617	3,828

	2016		2015
Debentures and unsecured bonds	1,637	1,613	24	1,925	1,785	140
Convertible bonds	779	779	-	493	493	-
Bank debt and other floating rate debt	1,384	1,369	15	1,691	1,671	20
Gross debt	3,800	3,761	39	4,109	3,949	160
Interest rate and currency derivative liabilities	137	137	-	126	126	-
Interest rate and currency derivative assets	(167)	(167)	-	(139)	(139)	-
Cash and short-term deposits	(114)	(114)	-	(108)	(108)	-
Net debt	3,656	3,617	39	3,988	3,828	160
Net debt attributable to non-controlling interests	(106)	(104)	(2)	(192)	(190)	(2)
Net debt attributable to shareholders of the Company	3,550	3,513	37	3,796	3,638	158

	2016 £m	2015 £m
Group loan to value (LTV)	25%	28%

Principal amount of gross debt	3,552	3,717
Less debt attributable to non-controlling interests	(109)	(200)
Less cash and short-term deposits (balance sheet)	(114)	(108)
Plus cash attributable to non-controlling interests	8	10
Total net debt for LTV calculation	3,337	3,419
Group property portfolio valuation (note 7)	10,111	9,509
Investments in joint ventures and funds (note 8)	3,353	2,901
Other investments (note 9)	142	379
Less property and investments attributable to non-controlling interests	(384)	(528)
Total assets for LTV calculation	13,222	12,261

	2016 £m	2015 £m
Proportionally consolidated loan to value (LTV)	32%	35%

Principal amount of gross debt	5,217	5,404
Less debt attributable to non-controlling interests	(128)	(200)
Less cash and short-term deposits	(353)	(300)
Plus cash attributable to non-controlling interests	9	10
Total net debt for proportional LTV calculation	4,745	4,914
Group property portfolio valuation (note 7)	10,111	9,509
Share of property of joint ventures and funds (note 7)	4,937	4,714
Other investments (note 9)	142	379
Less other investments attributable to joint ventures and funds	(4)	(123)
Less property attributable to non-controlling interests	(400)	(546)
Total assets for proportional LTV calculation	14,786	13,933

	2016 £m	2015 £m
Net Borrowings not to exceed 175% of Adjusted Capital and Reserves	34%	38%

Principal amount of gross debt	3,552	3,717
Less the relevant proportion of borrowings of the partly-owned subsidiary / non-controlling interests	(109)	(200)
Less cash and deposits (balance sheet)	(114)	(108)
Plus the relevant proportion of cash and deposits of the partly-owned subsidiary / non-controlling interests	8	10
Net Borrowings	3,337	3,419
Share capital and reserves (balance sheet)	9,619	8,565
EPRA deferred tax adjustment (EPRA Table A)	5	13
Trading property surpluses (EPRA Table A)	93	96
Exceptional refinancing charges (see below)	287	300
Fair value adjustments of financial instruments (EPRA Table A)	198	257
Less reserves attributable to non-controlling interests (balance sheet)	(277)	(333)
Adjusted Capital and Reserves	9,925	8,898

	2016 £m	2015 £m
Net Unsecured Borrowings not to exceed 70% of Unencumbered Assets	29%	28%

Principal amount of gross debt	3,552	3,717
Less cash and deposits not subject to a security interest (being £93m less the relevant proportion of cash and deposits of the partly owned subsidiary / non-controlling interests of £5m)	(88)	(77)
Less principal amount of secured and non-recourse borrowings	(1,563)	(1,906)
Net Unsecured Borrowings	1,901	1,734
Group property portfolio valuation (note 7)	10,111	9,509
Investments in joint ventures and funds (note 8)	3,353	2,901
Other investments (note 9)	142	379
Less investments in joint ventures (note 8)	(3,348)	(2,869)
Less encumbered assets (note 7)	(3,803)	(3,844)
Unencumbered Assets	6,455	6,076

	2015	Cash flows	Business combinations	Transfers3	Foreign exchange	Fair value	Arrangement costs amortisation	2016
Short term borrowings	102	(104)	-	74	2	-	-	74
Long term borrowings	3,847	(98)	-	(74)	14	(9)	7	3,687
Derivatives1	(13)	22	-	-	(13)	(26)	-	(30)
Total liabilities from financing activities	3,936	(180)	-	-	3	(35)	7	3,731

Cash and cash equivalents	(108)	(6)	-	-	-	-	-	(114)
Net debt	3,828	(186)	-	-	3	(35)	7	3,617

	2014	Cash flows	Business combinations	Transfers3	Foreign exchange	Fair value	Arrangement costs amortisation	2015
Short term borrowings	495	(495)	-	102	-	-	-	102
Long term borrowings	2,803	616	379	(102)	40	104	7	3,847
Derivatives2	25	(4)	-	-	(47)	13	-	(13)
Total liabilities from financing activities	3,323	117	379	-	(7)	117	7	3,936

Cash and cash equivalents	(142)	34	-	-	-	-	-	(108)
Net debt	3,181	151	379	-	(7)	117	7	3,828

	2016		2015
Interest rate and currency derivative assets	-	(167)	-	(167)	-	(139)	-	(139)
Other investments - held for trading	-	-	(101)	(101)	-	-	(99)	(99)
Assets	-	(167)	(101)	(268)	-	(139)	(99)	(238)
Interest rate and currency derivative liabilities	-	137	-	137	-	126	-	126
Convertible bonds	779	-	-	779	493	-	-	493
Liabilities	779	137	-	916	493	126	-	619
Total	779	(30)	(101)	648	493	(13)	(99)	381

	2016 £m	2015 £m
Financial assets
Fair value through income statement
Other investments - held for trading	101	99

Derivatives in designated hedge accounting relationships	164	139
Derivatives not in designated hedge accounting relationships	3	-

Amortised cost
Trade and other debtors	24	16
Cash and short term deposits	114	108
Other investments - loans and receivables	41	280
	447	642
Financial liabilities
Fair value through income statement
Convertible bonds	(779)	(493)

Derivatives in designated hedge accounting relationships	(137)	(126)

Amortised cost
Gross debt	(2,982)	(3,456)
Head leases payable	(46)	(41)

Creditors	(133)	(178)
	(4,077)	(4,294)
Total	(3,630)	(3,652)

	2016 £m	2015 £m
Maturity date: over five years	-	-
between four and five years	1,113	930
between three and four years	95	-
Total facilities available for more than three years	1,208	930

Between two and three years	85	61
Between one and two years	-	235
Within one year	60	10
Total	1,353	1,236

	2016	2015
Number of ordinary shares in issue at 1 April	1,031,788,286	1,019,766,481
Share issues	8,774,037	12,021,805
At 31 March	1,040,562,323	1,031,788,286

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British Land Company (BLND)

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Payment date	Dividend	Pence per share	2016 £m	2015 £m
Current year dividends
05.08.2016	2016 4th interim	7.09
06.05.2016	2016 3rd interim	7.09
12.02.2016	2016 2nd interim	7.09	73
06.11.2015	2016 1st interim	7.09	72
		28.36
Prior year dividends
07.08.2015	2015 4th interim	6.921	71
06.05.2015	2015 3rd interim	6.92	71
13.02.2015	2015 2nd interim	6.92		71
07.11.2014	2015 1st interim	6.92		70
		27.68

08.08.2014	2014 4th interim	6.751		68

Dividends in consolidated statement of changes in equity			287	277
Dividends settled in shares			(52)	(49)
Dividends settled in cash			235	228
Timing difference relating to payment of withholding tax			-	-
Dividends in cash flow statement			235	228

	Group £m	Share of joint ventures & funds £m	Less non-controlling interests £m	Share options £m	Deferred tax £m	Mark-to-market on effective cash flow hedges and related debt adjustments £m	Head leases £m	Convertible bond adjustment £m	Valuation surplus on trading properties £m	EPRA Net assets 31 March 2016 £m	EPRA Net assets 31 March 2015 £m
Retail properties	5,662	2,109	(400)	-	-	-	(30)	-	-	7,341	7,314
Office properties	4,118	2,835	-	-	-	-	(16)	-	87	7,024	6,050
Canada Water properties	283	-	-	-	-	-	(6)	-	6	283	273
Other properties	-	-	-	-	-	-	-	-	-	-	40
Total properties	10,063	4,944	(400)	-	-	-	(52)	-	93	14,648	13,677
Investments in joint ventures and funds	3,353	(3,353)	-	-	-	-	-	-	-	-	-
Other investments	142	(4)	-	-	-	-	-	-	-	138	256
Other net (liabilities) assets	(322)	(121)	3	36	5	-	52	-	-	(347)	(380)
Net debt	(3.617)	(1,466)	120	-	-	198	-	-	-	(4,765)	(4,918)
Dilution due to convertible bond	-	-	-	-	-	-	-	400	-	400	400
Net assets	9,619	-	(277)	36	5	198	-	400	93	10,074	9,035
EPRA NAV per share (note 2)										919p	829p

	2016			2015
Earnings per share	Relevant earnings £m	Relevant number of shares million	Earnings per share pence	Relevant earnings £m	Relevant number of shares million	Earnings per share pence
Underlying
Underlying basic	365	1,025	35.6	313	1,016	30.8
Underlying diluted	371	1,089	34.1	313	1,022	30.6
EPRA
EPRA basic	365	1,025	35.6	313	1,016	30.8
EPRA diluted	371	1,089	34.1	319	1,080	29.5
IFRS
Basic	1,345	1,025	131.2	1,710	1,016	168.3
Diluted	1,351	1,089	124.1	1,710	1,022	167.3

	2016			2015
Net asset value per share	Relevant net assets £m	Relevant number of shares million	Net asset value per share pence	Relevant net assets £m	Relevant number of shares million	Net asset value per share pence
EPRA
EPRA NAV	10,074	1,096	919	9,035	1,090	829
EPRA NNNAV	9,640	1,096	880	8,359	1,090	767
IFRS
Basic	9,619	1,029	935	8,565	1,020	840
Diluted	10,019	1,096	914	8,565	1,032	830

	2016		2015
	Underlying £m	Capital and other £m	Underlying £m	Capital and other £m
Rent receivable	437	-	369	-
Spreading of tenant incentives and guaranteed rent increases	12	-	26	-
Surrender premia	2	-	4	-
Gross rental income	451	-	399	-
Trading property sales proceeds	-	21	-	51
Service charge income	72	-	65	-
Management and performance fees (from joint ventures and funds)	8	-	7	-
Other fees and commissions	38	-	34	-
Revenue	569	21	505	51

Trading property cost of sales	-	(11)	-	(45)
Service charge expenses	(72)	-	(65)	-
Property operating expenses	(26)	-	(24)	-
Other fees and commissions expenses	(30)	-	(26)	-
Costs	(128)	(11)	(115)	(45)
	441	10	390	6

	Investment
	Retail & leisure Level 3 £m	Offices & residential Level 3 £m	Canada Water Level 3 £m	Developments Level 3 £m	Investment and development properties Level 3 £m	Trading properties £m	Owner- occupied Level 3 £m	Total £m
Carrying value at 1 April 2015	5,584	2,902	249	385	9,120	274	60	9,454
Additions
- property purchases	4	234	-	-	238	-	-	238
- development expenditure	4	6	1	43	54	59	-	113
- capitalised interest and staff costs	-	-	1	3	4	5	-	9
- capital expenditure on asset management initiatives	91	24	1	-	116	-	-	116
	99	264	3	46	412	64	-	476
Depreciation	-	-	-	-	-	-	(1)	(1)
Disposals	(372)	(130)	-	(7)	(509)	(11)	-	(520)
Reclassifications	135	22	-	(172)	(15)	(2)	17	-
Revaluations included in income statement	161	369	4	82	616	-	-	616
Revaluation included in OCI	-	-	-	-	-	-	19	19
Movement in tenant incentives and contracted rent uplift balances	10	9	-	-	19	-	-	19
Carrying value at 31 March 2016	5,617	3,436	256	334	9,643	325	95	10,063
Head lease liabilities (note 12)								(37)
Valuation surplus on trading properties								85
Group property portfolio valuation at 31 March 2016								10,111
Non-controlling interests								(324)
Group property portfolio valuation at 31 March 2016 attributable to shareholders								9,787

	2016			2015
	Group £m	Joint ventures and funds £m	Total £m	Group £m	Joint ventures and funds £m	Total £m
Knight Frank LLP	7,529	3,576	11,105	6,795	3,313	10,108
CBRE	2,582	1,361	3,943	2,714	1,401	4,115
Total property portfolio valuation	10,111	4,937	15,048	9,509	4,714	14,223
Non-controlling interests	(324)	(76)	(400)	(441)	(105)	(546)
Total property portfolio valuation attributable to shareholders	9,787	4,861	14,648	9,068	4,609	13,677

	Broadgate REIT Ltd	MSC Property Intermediate Holdings Ltd	BL Sainsbury Superstores Ltd	Tesco Joint Ventures1
Partners	Euro Bluebell LLP (GIC)	Norges Bank Investment Management	J Sainsbury plc	Tesco PLC
Property sector	City Offices Broadgate	Shopping Centres Meadowhall	Superstores	Superstores
Group share	50%	50%	50%	50%

Summarised income statements	£m	£m	£m	£m
Revenue5	244	102	56	19
Costs	(48)	(23)	(1)	-
	196	79	55	19
Administrative expenses	-	-	-	-
Net interest payable	(86)	(36)	(24)	(9)
Underlying Profit	110	43	31	10
Net valuation movement	334	50	(36)	(9)
Profit on disposal of investment properties and investments	-	-	2	-
Profit on ordinary activities before taxation	444	93	(3)	1
Taxation	-	-	-	1
Profit on ordinary activities after taxation	444	93	(3)	2
Other comprehensive income (expenditure)	5	-	-	3
Total comprehensive income	449	93	(3)	5
British Land share of total comprehensive income	225	46	(2)	3
British Land share of distributions payable	44	17	11	4

Summarised balance sheets	£m	£m	£m	£m
Investment and trading properties	4,622	1,786	946	354
Current assets	4	5	2	-
Cash and deposits	293	32	80	6
Gross assets	4,919	1,823	1,028	360
Current liabilities	(77)	(31)	(30)	(3)
Bank and securitised debt	(1,842)	(694)	(462)	(184)
Other non-current liabilities	(65)	(24)	-	(15)
Gross liabilities	(1,984)	(749)	(492)	(202)
Net external assets	2,935	1,074	536	158
British Land share of net assets	1,467	537	269	79

The SouthGate Limited Partnership	USS Joint Ventures2	Leadenhall Holding Co (Jersey) Ltd	Hercules Unit Trust joint ventures and sub-funds3	Other joint ventures and funds4	TOTAL 2016	TOTAL Group share 2016
Aviva Investors	Universities Superannuation Scheme Group PLC	Oxford Properties
Shopping Centres	Shopping Centres	City Offices Leadenhall	Retail Parks
50%	50%	50%	Various

£m	£m	£m	£m	£m	£m	£m
19	12	35	38	6	531	266
(6)	(3)	(10)	(7)	(1)	(99)	(44)
13	9	25	31	5	432	222
(1)	-	(1)	(6)	(2)	(10)	(5)
(1)	-	-	(8)	-	(164)	(82)
11	9	24	17	3	258	135
4	12	124	4	7	490	245
-	-	-	-	30	32	18
15	21	148	21	40	780	398
-	-	-	-	(3)	(2)	(1)
15	21	148	21	37	778	397
-	-	-	(2)	-	6	3
15	21	148	19	37	784	400
8	11	74	10	25	400
4	6	3	59	31	179

£m	£m	£m	£m	£m	£m	£m
267	252	942	612	108	9,889	4,944
2	1	-	4	14	32	18
5	7	5	9	33	470	239
274	260	947	625	155	10,391	5,201
(4)	(6)	(6)	(7)	(51)	(215)	(111)
-	-	-	(139)	-	(3,321)	(1,660)
(28)	-	-	(4)	(18)	(154)	(77)
(32)	(6)	(6)	(150)	(69)	(3,690)	(1,848)
242	254	941	475	86	6,701	3,353
121	128	471	237	44	3,353

	2016			2015
	Investment held for trading £m	Loans, receivables and other £m	Total £m	Investment held for trading £m	Loans, receivables and other £m	Total £m
At 1 April	99	280	379	92	170	262
Additions	-	35	35	-	113	113
Disposals	-	(272)	(272)	-	(2)	(2)
Revaluation	2	-	2	7	-	7
Depreciation	-	(2)	(2)	-	(1)	(1)
At 31 March	101	41	142	99	280	379

			Outside credit terms but not impaired
	Total £m	Within credit terms £m	0-1 month £m	1-2 months £m	More than 2 months £m
2016	24	12	11	1	-
2015	16	9	7	-	-

	2016			2015
	Fair value £m	Book value £m	Difference £m	Fair value £m	Book value £m	Difference £m
Debentures and unsecured bonds	1,637	1,613	24	1,925	1,785	140
Convertible bonds	779	779	-	493	493	-
Bank debt and other floating rate debt	1,384	1,369	15	1,691	1,671	20
Gross debt	3,800	3,761	39	4,109	3,949	160
Interest rate and currency derivative liabilities	137	137	-	126	126	-
Interest rate and currency derivative assets	(167)	(167)	-	(139)	(139)	-
Cash and short-term deposits	(114)	(114)	-	(108)	(108)	-
Net debt	3,656	3,617	39	3,988	3,828	160
Net debt attributable to non-controlling interests	(106)	(104)	(2)	(192)	(190)	(2)
Net debt attributable to shareholders of the Company	3,550	3,513	37	3,796	3,638	158

	2016				2015
	Level 1 £m	Level 2 £m	Level 3 £m	Total £m	Level 1 £m	Level 2 £m	Level 3 £m	Total £m
Interest rate and currency derivative assets	-	(167)	-	(167)	-	(139)	-	(139)
Other investments - held for trading	-	-	(101)	(101)	-	-	(99)	(99)
Assets	-	(167)	(101)	(268)	-	(139)	(99)	(238)
Interest rate and currency derivative liabilities	-	137	-	137	-	126	-	126
Convertible bonds	779	-	-	779	493	-	-	493
Liabilities	779	137	-	916	493	126	-	619
Total	779	(30)	(101)	648	493	(13)	(99)	381

	Offices and residential		Retail and leisure		Canada Water		Other/unallocated		Total
	2016 £m	2015 £m	2016 £m	2015 £m	2016 £m	2015 £m	2016 £m	2015 £m	2016 £m	2015 £m
Gross rental income
British Land Group	133	121	291	248	8	6	-	-	432	375
Share of joint ventures and funds	114	89	104	146	-	-	4	8	222	243
Total	247	210	395	394	8	6	4	8	654	618

Net rental income
British Land Group	124	112	277	233	7	6	-	-	408	351
Share of joint ventures and funds	110	85	99	141	-	-	3	8	212	234
Total	234	197	376	374	7	6	3	8	620	585

Operating result
British Land Group	112	101	260	218	7	6	(46)	(41)	333	284
Share of joint ventures and funds	109	82	102	138	-	-	(1)	10	210	230
Total	221	183	362	356	7	6	(47)	(31)	543	514

Reconciliation to Underlying Profit									2016 £m	2015 £m
Operating result									543	514
Net financing costs									(180)	(201)
Underlying Profit									363	313
Reconciliation to profit on ordinary activities before taxation
Underlying Profit									363	313
Capital and other									954	1,460
Underlying Profit attributable to non-controlling interests									14	16
Total profit on ordinary activities before taxation									1,331	1,789

	Year ended 31 March 2016				Year ended 31 March 2015
	Group £m	Joint ventures and funds £m	Less non-controlling interests £m	Proportionally consolidated £m	Group £m	Joint ventures and funds £m	Less non-controlling interests £m	Proportionally consolidated £m
Gross rental income	451	231	(28)	654	399	250	(31)	618
Property operating expenses	(26)	(9)	1	(34)	(24)	(10)	1	(33)
Net rental income	425	222	(27)	620	375	240	(30)	585

Administrative expenses	(93)	(5)	4	(94)	(85)	(4)	1	(88)
Net fees and other income	16	-	1	17	15	-	2	17
Ungeared Income Return	348	217	(22)	543	305	236	(27)	514

Net financing costs	(106)	(82)	8	(180)	(105)	(107)	11	(201)
Underlying Profit	242	135	(14)	363	200	129	(16)	313
Underlying taxation	2	-	-	2	-	-	-	-
Underlying Profit after taxation	244	135	(14)	365	200	129	(16)	313
Valuation movement				861				1,473
Other capital and taxation (net)1				48				50
Capital and other				909				1,523
Total return				1,274				1,836

	Year ended 31 March 2016		Year ended 31 March 2015
	£m	Pence per share	£m	Pence per share
Opening EPRA NAV	9,035	829	7,027	688
Income return	365	34	313	31
Capital return	909	77	1,523	145
Dividend paid	(235)	(21)	(228)	(27)
Dilution due to 2012 convertible bond	-	-	400	(8)
Closing EPRA NAV	10,074	919	9,035	829

	2016 £m	2015 £m
Profit attributable to the shareholders of the Company	1,345	1,710
Exclude:
Group - current taxation	(2)	1
Group - deferred taxation	(31)	23
Joint ventures and funds - current taxation	1	2
Joint ventures and funds - deferred taxation	-	(4)
Group - valuation movement	(616)	(884)
Group - profit on disposal of investment properties and investments	(35)	(20)
Group - profit on disposal of trading properties	(10)	(6)
Joint ventures and funds - net valuation movement (including result on disposals)	(263)	(595)
Changes in fair value of financial instruments and associated close-out costs	(31)	47
Non-controlling interests in respect of the above	5	39
Underlying Profit	363	313
Group - underlying current taxation	2	-
EPRA earnings - basic	365	313
Dilutive effect of 2012 convertible bond	6	6
EPRA earnings - diluted	371	319

Profit attributable to the shareholders of the Company	1,345	1,710
Dilutive effect of 2012 convertible bond	6	-
IFRS earnings - diluted	1,351	1,710

	2016 Number million	2015 Number million
Weighted average number of shares	1,036	1,027
Adjustment for Treasury shares	(11)	(11)
IFRS/EPRA Weighted average number of shares (basic)	1,025	1,016
Dilutive effect of share options	2	2
Dilutive effect of ESOP shares	4	4
Dilutive effect of 2012 convertible bond	58	-
IFRS Weighted average number of shares (diluted)	1,089	1,022
Dilutive effect of 2012 convertible bond	-	58
EPRA Weighted average number of shares (diluted)	1,089	1,080

	2016		2015
	£m	Pence per share	£m	Pence per share
Balance sheet net assets	9,619		8,565
Deferred tax arising on revaluation movements	5		13
Mark-to-market on effective cash flow hedges and related debt adjustments	198		257
Dilution effect of share options	36		37
Surplus on trading properties	93		96
Convertible bond adjustment	400		400
Less non-controlling interests	(277)		(333)
EPRA NAV	10,074	919	9,035	829
Deferred tax arising on revaluation movements	(24)		(13)
Mark-to-market on effective cash flow hedges and related debt adjustments	(153)		(257)
Mark-to-market on debt	(257)		(406)
EPRA NNNAV	9,640	880	8,359	767

	2016 Number million	2015 Number million
Number of shares at year end	1,040	1,031
Adjustment for treasury shares	(11)	(11)
IFRS / EPRA number of shares (basic)	1,029	1,020
Dilutive effect of share options	2	4
Dilutive effect of ESOP shares	7	8
Dilutive effect of 2012 convertible bond	58	-
IFRS number of shares (diluted)	1,096	1,032
Dilutive effect of 2012 convertible bond	-	58
EPRA number of shares (diluted)	1,096	1,090

	2016 £m	2015 £m
Investment property - wholly-owned	9,787	9,068
Investment property - share of joint ventures and funds	4,861	4,569
Less developments, residential and land	(894)	(1,148)
Completed property portfolio	13,754	12,489
Allowance for estimated purchasers' costs	985	784
Gross up completed property portfolio valuation	14,739	13,273
Annualised cash passing rental income	607	575
Property outgoings	(8)	(8)
Annualised net rents	599	567
Rent expiration of rent-free periods and fixed uplifts1	63	64
'Topped-up' net annualised rent	662	631
EPRA Net Initial Yield	4.1%	4.3%
EPRA 'topped-up' Net Initial Yield	4.5%	4.8%
Including fixed/minimum uplifts received in lieu of rental growth	24	26
Total 'topped-up' net rents	686	657
Overall 'topped-up' Net Initial Yield	4.7%	4.9%
'Topped-up' net annualised rent	662	631
ERV vacant space	14	20
Reversions	42	18
Total ERV	718	669
Net Reversionary Yield	4.9%	5.0%

	2016 £m	2015 £m
Annualised potential rental value of vacant premises	14	20
Annualised potential rental value for the completed property portfolio	728	692
EPRA Vacancy Rate	2.0%	2.9%
The above is stated for the UK portfolio only.

	2016			2015
	Group	Joint ventures and funds	Total	Group	Joint ventures and funds	Total
Acquisitions	238	-	238	147	-	147
Development	104	58	162	64	83	147
Like-for-like portfolio	99	6	105	67	23	90
Other	25	15	40	25	8	33
Total property related capex	466	79	545	303	114	417