Portfolio

Company Announcements

Final Results - Part 3

Related Companies

By LSE RNS

RNS Number : 3584F
British Land Co PLC
17 May 2017
 



 

 

SUPPLEMENTARY TABLES

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

 

From 1 April 2016


Price (Gross)

Price      

(BL Share)

Annual Passing Rent

Acquisitions

Sector

£m

£m

£m4

Completed





New George Street Estate, Plymouth

Retail

64

64

5

10-40 The Broadway, Ealing1

Retail

49

49

2

Harlech, Newport - Tesco exchange2

Retail

41

20

1

Tesco, Brislington - Tesco exchange2

Retail

46

23

2

Hercules Unit Trust unit purchase3

Retail

18

18

1

Teesside Leisure Park

Retail

13

13

1

Dock Offices

Canada Water

8

8

-

Total


239

195

12

1  Property acquisition exchanged and completed post year end

 

2 Property acquisitions exchanged and completed post year end as part of a Tesco JV swap transaction resulting in a net £73m disposal of superstore assets

 

 

3 Units purchased over the course of the year. £18m represents purchased GAV 

 

4 BL share of annualised rent topped up for rent frees

 

 

 

From 1 April 2016


Price

(Gross)

Price     

  (BL Share)

Annual Passing Rent

 

Disposals

Sector

£m

£m

£m3

 

Completed





 

Debenhams, Oxford Street

Retail

400

400

13

 

Superstores1

Retail

410

226

12

 

Portfolio of retail assets (Debenhams Manchester, York Clifton Moor, Wakefield Westgate)

Retail

191

191

12

 

Ebury Gate

Offices

34

34

2

 

Dumfries Cuckoo Bridge

Retail

20

20

1

 

56 - 70 Putney High Street

Retail

20

20

1

 

Lisnagelvin, Londonderry

Retail

15

15

1

 

Luton Power Court

Retail

9

9

-

 

The Hempel Collection

Residential

14

14

-

 

Aldgate Place

Residential

46

23

-

 

Exchanged2





 

The Leadenhall Building

Offices

1,150

575

17

 

Clarges, Mayfair

Residential

19

19

-

 

Total


2,328

1,546

59

 

1 Of which £116m (BL share) exchanged and completed post year end as part of a Tesco JV swap transaction resulting in a net £73m disposal of superstore assets

 

2 Sales completing post year end

 

3 BL share of annualised rent topped up for rent frees

 

Portfolio Valuation1

 

At 31 March 2017

Group

JVs &
Funds

Total


Change %²


 


£m

£m

£m

H1

H2

FY

 

Regional Lifestyle

1,120

1,834

2,954

(2.8)

1.0

(1.8)

 

Local Lifestyle

1,671

477

2,148

(4.8)

0.4

(4.5)

 

Multi-lets

2,791

2,311

5,102

(3.7)

0.7

(3.0)

 

Department Stores & Leisure

574

1

575

3.2

3.1

5.1

 

Superstores

106

526

632

(3.0)

(2.5)

(5.2)

 

Solus/Other

345

-

345

3.7

1.8

5.5

 

Retail & Leisure

3,816

2,838

6,654

(2.4)

0.7

(1.8)

 

West End

3,960

3,960

(2.4)

1.7

(0.6)

 

City

108

2,776

2,884

(4.9)

4.4

(0.8)

 

Offices

4,068

2,776

6,844

(3.5)

2.8

(0.7)

 

Residential3

156

15

171

5.4

4.2

 

Offices & Residential

4,224

2,791

7,015

(3.3)

2.9

(0.5)

 

Canada Water

271

271

(2.1)

(9.0)

(10.8)

 

Total

8,311

5,629

13,940

(2.8)

1.6

(1.4)

 

Standing Investments

7,821

5,487

13,308

(2.8)

1.3

(1.6)

 

Developments

490

142

632

(3.0)

4.8

1.7

 

1 On a proportionally consolidated basis including the Group's share of joint ventures and funds

 

2 Valuation movement during the year (after taking account of capital expenditure) of properties held at the balance sheet date, including developments (classified by end use), purchases and sales

 

3 Stand-alone residential



 

 

Gross Rental Income1,2

Accounting Basis £m

12 months to 31 March 2017

Annualised as at 31 March 2017


Group

JVs & Funds

Total

Group

JVs & Funds

Total

Regional Lifestyle

60

86

146

61

86

147

Local Lifestyle

98

27

125

88

26

114

Multi-lets

158

113

271

149

112

261

Department Stores & Leisure

48

-

48

38

-

38

Superstores

9

32

41

6

32

38

Solus/Other

20

-

20

20

-

20

Retail & Leisure

235

145

380

213

144

357

West End

129

-

129

125

-

125

City

5

116

121

4

104

108

Offices

134

116

250

129

104

233

Residential3

4

-

4

4

-

4

Offices & Residential

138

116

254

133

104

237

Canada Water

9

-

9

8

-

8

Total

382

261

643

354

248

602

1 Gross rental income will differ from annualised rents due to accounting adjustments for fixed & minimum contracted rental uplifts and lease incentives

2 On a proportionally consolidated basis including the Group's share of joint ventures and funds

3 Stand-alone residential



 

Portfolio Yield & ERV Movements1

At 31 March 2017

NEY3

ERV Growth %2

NEY Yield Movement bps3


%

H1

H2

FY

H1

H2

FY

Regional Lifestyle

4.9

1.3%

1.0%

2.3%

16

(4)

12

Local Lifestyle

5.4

1.3%

1.2%

2.5%

29

(1)

27

Multi-lets

5.1

1.3%

1.1%

2.4%

22

(3)

18

Department Stores & Leisure

5.9

0.4%

(0.1%)

0.4%

4

(18)

(15)

Superstores

5.5

(3.0%)

(1.0%)

(4.0%)

8

13

21

Solus/Other

5.2

4.8%

0.0%

4.8%

9

(9)

(4)

Retail & Leisure

5.2

0.9%

0.7%

1.6%

18

(3)

14

West End

4.5

0.3%

0.4%

0.7%

16

(1)

15

City4

4.5

(0.2%)

0.4%

0.2%

27

(13)

15

Offices

4.5

0.1%

0.4%

0.5%

21

(6)

15

Canada Water

3.4

0.9%

(0.1%)

0.9%

4

5

9

Total

4.8

0.5%

0.6%

1.1%

19

(5)

15

1 On a proportionally consolidated basis including the Group's share of joint ventures and funds. Excluding committed developments and residential assets



2 As calculated by IPD








3 Including notional purchaser's costs








4 City NEY is 4.6% pro-forma for sale completion of our 50% interest in The Leadenhall Building which exchanged in the year

 

 

 

 

 

Retail Portfolio Valuation - Previous Classification Basis1

At 31 March 2017

Valuation

Change %²

ERV Growth %3

NEY Yield Movement
bps


£m

H1

H2

FY

H1

H2

FY

H1

H2

FY

Shopping Parks

3,167

(4.1)

0.7

(3.3)

1.6%

0.8%

2.4%

26

(4)

20

Shopping Centres

2,276

(2.1)

0.8

(1.3)

1.3%

1.3%

2.6%

14

(3)

12

Superstores

632

(3.0)

(2.5)

(5.2)

(3.0%)

(1.0%)

(4.0%)

8

13

21

Department Stores

166

5.6

3.0

6.7

0.4%

0.3%

0.7%

3

(10)

(8)

Leisure

413

(0.5)

3.2

2.7

0.4%

(0.2%)

0.2%

4

(21)

(17)

Retail & Leisure

6,654

(2.4)

0.7

(1.8)

0.9%

0.7%

1.6%

18

(3)

14

1 On a proportionally consolidated basis including the Group's share of joint ventures and funds

2 Valuation movement during the year (after taking account of capital expenditure) of properties held at the balance sheet date, including developments (classified by end use), purchases and sales

3 As calculated by IPD










 



 

Portfolio Net Yields1,2,3

At 31 March 2017

EPRA net initial yield %

EPRA topped up net initial yield %4

Overall topped up net initial yield %5

Net equivalent yield %

Net reversionary yield %

Regional Lifestyle

4.5

4.6

4.7

4.9

5.0

Local Lifestyle

5.1

5.2

5.3

5.4

5.4

Multi-lets

4.7

4.9

4.9

5.1

5.2

Department Stores & Leisure

6.0

6.0

7.2

5.9

4.4

Superstores

5.6

5.6

5.6

5.5

5.3

Solus/Other

5.6

5.6

5.6

5.2

4.8

Retail & Leisure

4.9

5.1

5.2

5.2

5.1

West End

3.5

3.7

3.8

4.5

4.8

City6

3.7

4.1

4.1

4.5

5.1

Offices

3.6

3.9

3.9

4.5

4.9

Canada Water

2.8

2.9

2.9

3.4

3.5

Total

4.3

4.5

4.6

4.8

5.0

1 On a proportionally consolidated basis including the Group's share of joint ventures and funds

2 Including notional purchaser's costs

3 Excluding committed developments and residential assets

4 Including rent contracted from expiry of rent-free periods and fixed uplifts not in lieu of rental growth

5 Including fixed/minimum uplifts (excluded from EPRA definition)

6 City net equivalent yield is 4.6% and EPRA net initial yield is 4.2% pro-forma for sale completion of our 50% interest in The Leadenhall Building which exchanged in the year

 

 

 

Portfolio Net Yields1,2,3 - Previous Classification Basis

At 31 March 2017

EPRA net initial yield %

EPRA topped up net initial yield %4

Overall topped up net initial yield %5

Net equivalent yield %

Net reversionary yield %







Shopping parks

4.9

5.1

5.1

5.2

5.2

Shopping centres

4.5

4.7

4.7

5.0

5.1

Superstores

5.6

5.6

5.6

5.5

5.3

Department stores

5.1

5.1

6.6

5.0

3.9

Leisure

6.3

6.3

7.4

6.2

4.7

Retail & Leisure

4.9

5.1

5.2

5.2

5.1

1 On a proportionally consolidated basis including the Group's share of joint ventures and funds

2 Including notional purchaser's costs

3 Excluding committed developments

4 Including rent contracted from expiry of rent-free periods and fixed uplifts not in lieu of rental growth

5 Including fixed/minimum uplifts (excluded from EPRA definition)

 



 

 

Total Property Return (as calculated by IPD)1

Full Year to 31 March 2017

Retail

Offices

Total

%

British Land

IPD

British Land

IPD

British Land

IPD

Capital Return

(1.7)

(2.3)

(0.6)

(1.0)

(1.2)

(0.1)

 - ERV Growth

1.6

0.9

0.5

2.0

1.1

1.9

 - Yield Expansion2

14 bps

12 bps

15 bps

13 bps

15 bps

4 bps

Income Return

5.3

5.1

3.5

3.8

4.3

4.7

Total Property Return

3.5

2.8

2.8

2.8

3.1

4.6

1 On a proportionally consolidated basis including the Group's share of joint ventures and funds

2 Net equivalent yield movement

 

 

Occupiers Representing over 0.5% of Total Contracted Rent1

At 31 March 2017

% of total rent



% of total rent

Tesco plc2

5.4


Vodafone

0.9

J Sainsbury plc

4.8


Asda Group

0.9

UBS AG

3.4


Aon Plc

0.9

Debenhams

3.3


SportsDirect

0.9

Kingfisher (B&Q)

2.8


Microsoft

0.9

HM Government

2.6


JD Sports

0.8

Next plc

2.4


Deutsche Bank

0.8

Virgin Active

1.9


Reed Smith

0.8

Facebook

1.8


H&M

0.7

Dentsu Aegis

1.7


Mayer Brown

0.7

Spirit Group

1.7


Mothercare

0.7

M&S plc

1.6


TGI Fridays

0.6

Wesfarmers (Homebase/Bunnings)

1.6


ICAP Plc

0.6

Alliance Boots

1.6


River Island

0.6

Visa Inc

1.5


MS Amlin Plc

0.6

Dixons Carphone

1.4


Credit Agricole

0.6

Arcadia Group

1.3


Pets at Home

0.5

Herbert Smith

1.3


Henderson

0.5

RBS

1.2


Primark

0.5

TK Maxx

1.0


Aramco

0.5

Gazprom

1.0


House of Fraser

0.5

New Look

1.0


Steinhoff

0.5

1 On a proportionally consolidated basis including the Group's share of joint ventures and funds

2 4.7% pro-forma for post year end net disposal of £73m in a Tesco JV swap transaction


 



 

Major Holdings

At 31 March 2017

BL Share

Sq ft

Rent

Occupancy

Lease


%

'000

£m pa1

rate %2

length yrs3

Broadgate

50

4,850

190

98.3

8.2

Regent's Place

100

1,590

76

99.1

7.4

Paddington Central

100

958

33

94.1

6.8

Meadowhall, Sheffield

50

1,500

84

97.9

6.4

The Leadenhall Building4

50

603

40

99.9

10.3

Sainsbury's Superstores5

51

2,184

48

100.0

10.4

Teesside, Stockton6

100

569

17

96.9

5.6

Drake's Circus, Plymouth7

100

1,132

21

95.9

8.9

Glasgow Fort

77

510

21

98.3

5.9

Ealing Broadway

100

470

13

93.7

5.9

1 Annualised EPRA contracted rent including 100% of Joint Ventures & Funds




2 Including accommodation under offer (including post year transactions at 2 Finsbury Avenue and 4 Kingdom Street) or subject to asset management (incl. space being prepared for flexible working) or assets being readied for development in the near term (1 Finsbury Avenue)

3 Weighted average to first break






4 Sale exchanged in March 2017 with completion due post year end






5 Comprises stand-alone stores






6 Includes Teesside Leisure Park acquired in the year




7 Includes New George Street Estate, Plymouth acquired during the year




 

 

 

Lease Length & Occupancy1

At 31 March 2017

Average lease length yrs

Occupancy rate %


To expiry

To break

EPRA Occupancy

Occupancy2

Regional Lifestyle

7.9

6.7

97.3

97.7

Local Lifestyle

7.9

6.8

97.3

97.9

Multi-lets

7.9

6.8

97.3

97.8

Department Stores & Leisure

17.4

17.4

99.8

99.8

Superstores

11.7

11.3

100.0

100.0

Solus/Other

12.5

12.3

100.0

100.0

Retail & Leisure

9.5

8.6

97.9

98.3

West End

9.0

7.3

93.0

97.0

City3

9.8

8.5

91.1

98.6

Offices

9.4

7.8

92.1

97.7

Canada Water

6.8

6.5

97.6

98.8

Total

9.4

8.3

95.2

98.0

1 On a proportionally consolidated basis including the Group's share of joint ventures and funds

2 Including accommodation under offer (including post year transactions at 2 Finsbury Avenue and 4 Kingdom Street) or subject to asset management (incl. space being prepared for flexible working) or assets being readied for development in the near term (1 Finsbury Avenue)

3 City average lease length to break is 8.2 yrs pro-forma for completion of the sale of our 50% interest in The Leadenhall Building

Portfolio Weighting1

 

At 31 March

2016

2017

2017

2017

 



(current)

(current)

(pro-forma2)

 


%

%

£m

%

 

Regional Lifestyle

19.4

21.3

2,954

21.6

 

Local Lifestyle

16.3

15.4

2,148

16.1

 

Multi-lets

35.7

36.7

5,102

37.7

 

Department Stores & Leisure

6.9

4.1

575

4.2

 

Superstores

5.3

4.5

632

3.9

 

Solus/Other

2.3

2.5

345

2.5

 

Retail & Leisure

50.2

47.8

6,654

48.3

 

West End

26.6

28.4

3,960

29.8

 

City

19.7

20.7

2,884

18.7

 

Offices

46.3

49.1

6,844

48.5

 

Residential3

1.6

1.2

171

1.2

 

Offices & Residential

47.9

50.3

7,015

49.7

 

Canada Water

1.9

1.9

271

2.0

 

Total

100.0

100.0

13,940

100.0

 

Of which London

58%

58%

8,050

58%

 

1 On a proportionally consolidated basis including the Group's share of joint ventures and funds

 

2 Pro forma for developments under construction and committed developments at estimated end value (as determined by the Group's external valuers) and post year end transactions including the expected completion of the sale of our 50% interest in The Leadenhall Building and the Tesco JV swap transaction

 

3 Stand-alone residential

 

 

Annualised Rent & Estimated Rental Value (ERV)1

At 31 March 2017

Annualised rent
(valuation basis) £m2

ERV £m

Average rent £psf

Group

JVs &

Funds

Total

Total

Contracted3

ERV

Regional Lifestyle

61

87

148

164

31.1

33.1

Local Lifestyle

90

28

118

126

24.9

26.1

Multi-lets

151

115

266

290

28.0

29.6

Department Stores & Leisure

36

-

36

28

14.9

11.4

Superstores

6

32

38

36

21.3

20.1

Solus/Other

20

-

20

17

19.8

17.0

Retail & Leisure

213

147

360

371

24.5

24.6

West End4

132

-

132

179

54.2

62.2

City4,5

4

103

107

150

52.5

60.2

Offices4

136

103

239

329

53.4

61.2

Residential6

4

-

4

4



Offices & Residential

140

103

243

333



Canada Water

8

-

8

10

16.4

21.0

Total

361

250

611

714

30.3

33.2

1 On a proportionally consolidated basis including the Group's share of joint ventures and funds

2 Gross rents plus, where rent reviews are outstanding, any increases to ERV (as determined by the Group's external valuers), less any ground rents payable under head leases, excludes contracted rent subject to rent free and future uplift

3 Annualised rent, plus rent subject to rent free



4 £psf metrics shown for office space only



5 City average rent psf  on a contracted basis is £50.1 and on an ERV basis is £57.4 pro-forma for completion of the sale of our 50% interest in The Leadenhall Building.

6 Stand-alone residential



Rent Subject to Open Market Rent Review1

 

At 31 March 2017

2018

2019

2020

2021

2022

2018-20

2018-22

 

For year to 31 March

£m

£m

£m

£m

£m

£m

 

Regional Lifestyle

             13

             17

             12

             18

            13

42

73

 

Local Lifestyle

             24

             17

             10

             11

             6

51

68

 

Multi-lets

             37

             34

             22

             29

           19

93

141

 

Department Stores & Leisure

               -  

               -  

               -  

               -  

               -  

-

-

 

Superstores

                4

                7

             10

             12

              3

21

36

 

Solus/Other

               -  

               -  

               -  

               -  

               -  

-

-

 

Retail & Leisure

41

32

41

22

114

177

 

West End

24

20

15

10

9

59

78

 

City

4

14

14

15

1

32

48

 

Offices

28

29

25

10

91

126

 

Canada Water

1

-

-

-

2

2

 

Total

70

76

61

66

32

207

305

 

1 On a proportionally consolidated basis including the Group's share of joint ventures and funds

 


 

 

Rent Subject to Lease Break or Expiry1

At 31 March 2017

2018

2019

2020

2021

2022

2018-20

2018-22

For year to 31 March

£m

£m

£m

£m

£m

£m

£m

Regional Lifestyle

19

10

14

10

15

43

68

Local Lifestyle

8

7

10

9

11

25

45

Multi-lets

27

17

24

19

26

68

113

Department Stores & Leisure

-

-

-

-

-

-

-

Superstores

-

-

-

-

-

-

-

Solus/Other

-

1

-

-

-

1

1

Retail & Leisure

27

18

24

19

26

69

114

West End

6

10

3

17

21

19

57

City

7

11

11

9

2

29

40

Offices

13

21

14

26

23

48

97

Canada Water

1

1

-  

1

-

2

3

Total

41

40

38

46

49

119

214

% of contracted rent

6.3%

6.3%

6.0%

7.1%

7.7%

18.6%

33.4%

1 On a proportionally consolidated basis including the Group's share of joint ventures and funds

 

 



 

 

Superstores


Stand-alone Superstores1

In Multi-let assets 2

Total Exposure1,2,3

Store Size
'000 SQ FT

No of Stores

Valuation (BL share)
£m

Capital Value
psf

Lease length4

No of Stores

Valuation (BL share)
£m

Capital Value
psf

Lease length4

No of Stores

Valuation (BL share)
£m

Capital Value
psf

Lease length4

>100

6

152

  340

11.1

 4

286

419

11.1

10

 438

388

 11.1

75-100

10

171

384

11.3

3

73

274

15.0

13

244

342

12.5

50-75

12

179

364

10.8

-

-

 -

-

12

179

364

10.8

25-50

3

15

272

8.1

3

32

456

18.5

6

47

375

14.7

0-25

2

6

138

 8.1

21

 98

465

  10.2

 23

  104

409

10.0

March 2017

33

523

352

10.9

31

489

397

12.6

64

1,012

373

11.7

March 2016

 47

 763

383

 13.9

28

537

482

  12.7

75

1,301

419

13.5














Geographical Spread


Gross Rent (BL Share)

Lease Structure



London & South


58%

Tesco



£29m

RPI and Fixed


10%

Rest of UK


42%

Sainsbury's



£26m

OMRR


90%




Other



£5m





Table reflects post year end disposals of £116m and purchase of £23m as part of a property exchange transaction with Tesco

1 Excludes £13m non-foodstore occupiers in superstore led assets

2 Excludes non-food format stores e.g. Asda Living









3 Excludes £93m of investments held for trading comprising freehold reversions in a pool of Sainsbury's Superstores

4 Weighted average lease length to first break

 

 



 

Recently Completed & Committed Developments1  

  At 31 March 17

 Sector

 BL Share

 Sq ft

 PC Calendar Year

 Current Value

 Cost to come

 ERV

 Let & Under Offer


 %

 '000

 £m2

 £m3

 £m4

 £m










 4 Kingdom Street

Office

100

147

 Q2 2017

151

18

9.5

7.0

 Clarges Mayfair - Offices

Office

100

51

 Q2 2016

135

6

5.6

4.3

 Glasgow Fort Leisure Quarter

Retail

77

12

 Q3 2016

8

-

0.4

0.2

 The Hempel Phase 1

Residential

100

25

 Q4 2016

4

3

-

-

 The Hempel Phase 2

Residential

100

33

 Q4 2016

45

3

-

-

 Aldgate Place Phase 1

Residential

50

221

 Q2 2016

-

7

-

-

 Total Completed in Year



489


343

37

15.5

11.5










 100 Liverpool Street

Office

50

520

Q4 2019

112

152

18.6

-

 Speke (Leisure)

Retail

67

66

Q2 2018

4

14

1.2

0.8

 Clarges Mayfair - Retail and Residential5

Mixed Use

100

104

Q4 2017

362

52

0.8

-

 Total Committed



690


478

218

20.6

0.8

 Retail Capex 6






111



1 On a proportionally consolidated basis including the Group's share of joint ventures and funds (except area which is shown at 100%)

2 Excludes completed sales of £120m

3 From 1 April 2017. Cost to come excludes notional interest as interest is capitalised individually on each development at our capitalisation rate

4 Estimated headline rental value net of rent payable under head leases (excluding tenant incentives)

5 Current value includes units exchanged and not completed of £278m

6 Capex committed and underway within our investment portfolio relating to leasing and asset management

 

 

 

 

 

Near Term Development Pipeline1

  At 31 March 17

 Sector

 BL Share

 Sq ft

 Expected Start On Site

 Current Value

Cost to Come

ERV

 Status

%

 '000


 £m

 £m2

£m3










 135 Bishopsgate

 Office

50

325

2017

107

55

9.4

 Submitted

 1 Triton Square

 Office

100

366

2018

161

200

23.3

 Resolution to grant

 1 Finsbury Avenue

 Office

50

288

2017

77

35

7.7

 Submitted

 Plymouth (Leisure)

 Retail

100

104

2018

-

48

3.1

 Consented

 Total Near-Term



1,083


345

338

43.5


Retail Capex4






75



1 On a proportionally consolidated basis including the Group's share of joint ventures and funds (except area which is shown at 100%)

2 From 1 April 2017. Cost to come excludes notional interest as interest is capitalised individually on each development at our capitalisation rate

3 Estimated headline rental value net of rent payable under head leases (excluding tenant incentives)

4 Forecast capital commitments within our investment portfolio over the next 12 months relating to leasing and asset enhancement

 

 

 

 

Medium Term Development Pipeline

  At 31 March 17

 Sector

 BL Share

%

 Sq ft

 Status

 '000






 2-3 Finsbury Avenue

Office

50

563

Consented

 1-2 Broadgate

Office

50

375

Pre-submission

 Blossom Street

Office

100

340

Consented

 5 Kingdom Street1

Office

100

332

Consented

 Gateway Building

Office

100

105

Pre-submission

 Meadowhall (Leisure)

Retail

50

322

Submitted

 Peterborough (Leisure)

Retail

100

182

Pre-submission

 Teesside (Leisure)

Retail

100

80

Pre-submission

 Bradford (Leisure)

Retail

100

49

Pre-submission

 Aldgate Place Phase 2

Resi

50

145

Consented

 Eden Walk Retail & Residential

Mixed Use

50

538

Consented

Total Medium Term excl. Canada Water



3,031


 Canada Water2

Mixed Use

100

5,500

Pre-submission

1  Planning consent for previous 240,000 sq ft scheme

 2 Assumed net area based on gross area of up to 7m sq ft

 

 

 

 

Residential development programme1

At 31 March 2017

BL Share

Sq Ft

Total No. Units

No. Units to sell

PC

Date

Current Value2

Cost To Come3

Sales Exchanged & not Completed2,4

Value

to sell

%

'000




£m

£m

£m

£m

Clarges Mayfair

100

94

34

11

Q4 2017

347

52

278

150

The Hempel Phase 1

100

25

15

1

Q4 2016

4

          3

-

7

The Hempel Phase 2

100

33

18

13

Q4 2016

45

3

-

46

Aldgate Place Phase 1

50

221

154

1

Q2 2016

-

          7

-

7

Total Committed Residential


373

221

 26


396

65

278

210

1 On a proportionally consolidated basis including the Group's share of joint ventures and funds (except area which is shown at 100%)

2 Excludes completed sales of £120m

3 From 1 April 2017. Cost to come excludes notional interest as interest is capitalised individually on each development at our capitalisation rate

4 At agreed sales price

 



 

GLOSSARY

 

Adjusted net debt is the Group net debt and the Group's share of joint venture and funds' net debt excluding the mark-to-market on effective cash flow hedges and related debt adjustments and non-controlling interests. A reconciliation between Group net debt and adjusted net debt is included in table A within the supplementary disclosures.

 

AGM is the Annual General Meeting of The British Land Company plc. The 2017 AGM will be held on 18 July 2017 at The Hyatt Regency London - The Churchill, 30 Portman Square, London W1H 7BH commencing at 11.00am.

 

Annualised rent is the gross property rent receivable on a cash basis as at the reporting date. Additionally, it includes the external valuers' estimate of additional rent in respect of unsettled rent reviews, turnover rent and sundry income such as that from car parks and commercialisation, less any ground rents payable under head leases.

 

Assets under management is the full value of all assets owned and managed by British

Land and includes 100% of the value of all assets owned by joint ventures and funds.

 

BREEAM (Building Research Establishment Environmental Assessment Method) assesses the sustainability of buildings against a range of social and environmental criteria.

 

Capital return is calculated as the change in capital value of the portfolio, less any capex incurred, expressed as a percentage of capital employed (start value plus capital expenditure) over the period, as calculated by IPD. Capital returns are calculated monthly and indexed to provide a return over the relevant period.

 

Contracted rent is the annualised rent adjusting for the inclusion of rent subject to rent free periods.

 

Customer satisfaction combines survey results on overall experience ratings from decision makers, property directors, store managers and visitors across our retail and office businesses.

 

Developer's profit is the profit on cost estimated by the valuers that a developer would expect. The developer's profit is typically calculated by the valuers to be a percentage of the estimated total development costs, including land and notional finance costs.

 

Development cost is the total cost of construction of a project to completion, excluding site values and finance costs (finance costs are assumed by the valuers at a notional rate of 5% per annum).

 

Development uplift is the total increase in the value (after taking account of capex and capitalised interest) of properties held for development during the period. It also includes any developer's profit recognised by valuers in the period.

 

Dividend yield is calculated as dividends per share expressed as a percentage of EPRA NAV per share.

 

EPRA is the European Public Real Estate Association, the industry body for European REITs.

 

EPRA cost ratio (including direct vacancy costs) is a proportionally consolidated measure of the ratio of net overheads and operating expenses against gross rental income (with both amounts excluding ground rents payable). Net overheads and operating expenses relate to all administrative and operating expenses, net of any service fees, recharges or other income specifically intended to cover overhead and property expenses.

 

EPRA cost ratio (excluding direct vacancy costs) is the ratio calculated above, but with direct vacancy costs removed from the net overheads and operating expenses balance.

 

EPRA earnings is the IFRS profit after taxation attributable to shareholders of the Company excluding investment and development property revaluations, gains/losses on investing and trading property disposals, changes in the fair value of financial instruments and associated close-out costs and their related taxation. These items are presented in the capital and other column of the income statement. A reconciliation between profit attributable to shareholders of the Company and EPRA earnings is included in table B within the supplementary disclosures.

 

EPRA NAV per share is EPRA NAV divided by the diluted number of shares at the period end.

 

EPRA net asset value (EPRA NAV) is a proportionally consolidated measure, representing the IFRS net assets excluding the mark-to-market on effective cash flow hedges and related debt adjustments, the mark-to-market on the convertible bonds as well as deferred taxation on property and derivative valuations. It includes the valuation surplus on trading properties and is adjusted for the dilutive impact of share options. A reconciliation between IFRS net assets and EPRA NAV is included in table B within the Supplementary Disclosures.

 

EPRA net initial yield is the annualised rents generated by the portfolio, after the deduction of an estimate of annual recurring irrecoverable property outgoings, expressed as a percentage of the portfolio valuation (adding notional purchaser's costs), excluding development and residential properties.

 

EPRA NNNAV is the EPRA NAV adjusted to reflect the fair value of debt and derivatives and to include deferred taxation on revaluations.

 

EPRA occupancy rate is the ERV of occupied space divided by ERV of the whole portfolio, excluding developments and residential property.

 

EPRA topped-up net initial yield is the current annualised rent, net of costs, topped up for contracted uplifts, where these are not in lieu of rental growth, expressed as a percentage of capital value (adding notional purchasers costs).

 

EPRA vacancy rate is the ERV of vacant space divided by ERV of the whole portfolio, excluding developments and residential property.

 

Estimated rental value (ERV) is the external valuers' opinion of the open market rent which, on the date of valuation, could reasonably be expected to be obtained on a new letting or rent review of a property.

 

ERV growth is the change in ERV over a period on the standing investment properties expressed as a percentage of the ERV at the start of the period. ERV growth is calculated monthly and compounded for the period subject to measurement, as calculated by IPD.

 

Fair value movement is the accounting adjustment to change the book value of an asset or liability to its market value.

 

Footfall is the estimated annualised number of visitors entering our assets.

 

Footfall growth is the like-for-like movement in footfall against the same period in the prior year, on properties owned throughout both comparable periods, aggregated at British Land's ownership share for each asset.

 

Gross investment activity as measured by our share of acquisitions, sales and capital expectations on investments and development.

 

Gross rental income is the gross accounting rent receivable (quoted either for the period or on an annualised basis) prepared under IFRS which requires that rental income from fixed/minimum guaranteed rent reviews and tenant incentives is spread on a straight-line basis over the entire lease to first break. This can result in income being recognised ahead of cash flow.

 

Group is The British Land Company PLC and its subsidiaries and excludes its share of joint ventures and funds (where not treated as a subsidiary) on a line-by-line basis (i.e. not proportionally consolidated).

 

Headline rent is the contracted gross rent receivable which becomes payable after all the tenant incentives in the letting have expired.

 

IFRS are the International Financial Reporting Standards as adopted by the European Union.

 

Income return is calculated as net income expressed as a percentage of capital employed over the period, as calculated by IPD. Income returns are calculated monthly and indexed to provide a return over the relevant period.

 

Interest cover is the number of times net financing costs are covered by underlying profit before net financing costs and taxation.

 

IPD is a brand of real estate indices, owned by MSCI, which produce independent benchmarks of property returns and British Land UK portfolio returns.

 

Lettings and lease renewals are compared both to the previous passing rent as at the start of the financial year and the ERV immediately prior to letting. Letting performance against ERV comparison of achieved letting terms on long term lettings and renewals against valuation assumptions on like-for-like space, calculated on a net effective basis, aggregated at British Land's ownership share for each asset.

 

Leverage see loan to value (LTV).

 

Like-for-like rental income growth is the growth in net rental income on properties owned throughout the current and previous periods under review. This growth rate includes revenue recognition and lease incentive adjustments but excludes properties held for development in either period and lease accounting adjustments related to fixed and minimum rent reviews.

 

Loan to value (LTV) is the ratio of principal value of gross debt less cash, short term deposits and liquid investments to the aggregate value of properties and investments.

 

Managed portfolio consists of multi-let properties where we have control of facilities and utilities management.

 

Mark-to-market is the difference between the book value of an asset or liability and its market value.

 

Multi-channel retailing is the use of a variety of channels in a customer's shopping experience, including research, before a purchase. Such channels include: retail stores, online stores, mobile stores, mobile app stores, telephone sales and any other method of transacting with a customer. Transacting includes browsing, collecting, buying, returning as well as pre and post-sale service.

 

Net development value is the estimated end value of a development project as determined by the external valuers when the building is completed and fully let (taking into account tenant incentives and notional purchaser's costs). It is based on the valuer's view on ERVs, yields, letting voids and tenant incentives.

 

Net effective rent is the contracted gross rent receivable taking into account any rent-free period or other tenant incentives. The incentives are treated as a cost-to-rent and spread over the lease to the earliest termination date.

 

Net equivalent yield (NEY) is the time weighted average return (after adding notional purchasers costs) that a property will produce. In accordance with usual practice, the equivalent yield (as determined by the external valuers) assume rent is received annually in arrears.

 

Net initial yield (NIY) is the current annualised rent, net of costs, expressed as a percentage of capital value, after adding notional purchaser's costs.

 

Net rental income is the rental income receivable in the period after payment of direct property outgoings which typically comprise ground rents payable under head leases, void costs, net service charge expenses and other direct irrecoverable property expenses. Net rental income is quoted on an accounting basis. Net rental income will differ from annualised net cash rents and passing rent due to the effects of income from rent reviews, net property outgoings and accounting adjustments for fixed and minimum contracted rent reviews and lease incentives.

 

Net reversionary yield (NRY) is the anticipated yield to which the initial yield will rise (or fall) once the rent reaches the estimated rental value.

 

Occupancy rate is the estimated rental value of let units as a percentage of the total estimated rental value of the portfolio, excluding development and residential properties. It includes accommodation under offer, subject to asset management (where they have been taken back for refurbishment and are not available to let as at the measurement date) or occupied by the Group.

 

Omni-channel retailing seeks to provide the customer with a seamless shopping experience across channels, including stores, online and mobile.  This empowers customers to switch between channels during the shopper journey according to their preferences. For example, they can use mobile in-store to research or make a purchase, buy online and collect in-store, or they can buy in-store and initiate a return online.

 

Over rented is the term used to describe when the contracted rent is above the estimated rental value.

 

Overall 'topped-up' net initial yield (TUNIY) is the EPRA 'topped-up' net initial yield, adding all contracted uplifts to the annualised rents.

 

Passing rent is the gross rent, less any ground rent payable under head leases.

 

Property income distributions (PIDs) are profits distributed to shareholders which are subject to tax in the hands of the shareholders as property income. PIDs are normally paid net of withholding tax currently at 20% which the REIT pays to the tax authorities on behalf of the shareholder. Certain types of shareholder (e.g. pension funds) are tax exempt and receive PIDs without withholding tax. REITs also pay out normal dividends, called non-PIDs, which are taxed in the same way as dividends received from non REIT companies; these are not subject to withholding tax and for UK individual shareholders qualify for the tax free dividend allowance.

 

Portfolio valuation is reported by the Group's external valuers. In accordance with usual practice, they report valuations net, after the deduction of notional purchaser's costs, including stamp duty land tax, agent and legal fees.

 

Proportionally consolidated measures include the Group's share of joint ventures and funds and exclude non-controlling interests in the Group's subsidiaries.

 

Rack rented is the term used to describe when the contracted rent is in line with the estimated rental value, implying nil reversion.

 

Rent-free period see Tenant (or lease) incentives.

 

REITs are property companies that allow people and organisations to invest in commercial property and receive benefits as if they directly owned the properties themselves. The rental income, after costs, is passed directly to shareholders in the form of dividends. In the UK REITs are required to distribute at least 90% of their tax exempt property income to shareholders as dividends. As a result, over time, a significant proportion of the total return for shareholders is likely to come from dividends. The effect is that taxation is moved from the corporate level to the investor level as investors are liable for tax as if they owned the property directly. British Land became a REIT in January 2007.

 

Rent reviews take place at intervals agreed in the lease (typically every five years) and their purpose is usually to adjust the rent to the current market level at the review date. For upwards-only rent reviews, the rent will either remain at the same level or increase (if market rents have increased) at the review date.

 

Rents with fixed and minimum uplifts are either where rents are subject to contracted uplifts at a level agreed at the time of letting; or where the rent is subject to an agreed minimum level of uplift at the specified rent review.

 

Retailer sales growth is the like-for-like movement in retailer in-store sales against the same period in the prior year, on occupiers providing sales data throughout both comparable periods, aggregated at British Land's ownership share for each asset.

 

Retail planning consents are separated between A1, A2 and A3 - as set out in The Town and Country Planning (Use Classes) Order. Within the A1 category, Open A1 permission allows for the majority of types of retail including fashion to be accommodated, while Restricted A1 permission places limits on the types of retail that can operate (for example, a restriction that only bulky goods operators are allowed to trade at that site).

 

Class

Use for all/any of the following purposes

A1

Shops

Shops, retail warehouses, hairdressers, undertakers,

travel and ticket agencies, post offices, pet shops, sandwich bars, showrooms, domestic hire shops dry cleaners, funeral directors and internet cafes.

A2

Financial and professional services

Financial services such as banks and building societies, professional services (other than health and medical services) and including estate and employment agencies. It does not include betting offices or pay day loan shops - these are now classed as "sui generis" uses.

A3

Restaurants and cafes

For the sale of food and drink for consumption on the premises - restaurants, snack bars and cafes.

D2

Assembly and leisure

Cinemas, music and concert halls, bingo and dance

halls (but not night clubs), swimming baths, skating rinks, gymnasiums or areas for indoor or outdoor sports and recreations.

 

Reversion is change in rent estimated by the external valuers, where the passing rent is different to the estimated rental value. The increase or decrease of rent arises on rent reviews and letting of vacant space or re letting of expiries.

 

Scrip dividend For certain periods, British Land offers its shareholders the opportunity to receive dividends in the form of shares instead of cash. This is known as a Scrip dividend.

 

Standing investments are assets which are not in the course of, or held for, development.

 

Tenant (or lease) incentives are incentives offered to occupiers to enter into a lease. Typically this will be an initial rent-free period, or a cash contribution to fit-out. Under accounting rules the value of lease incentives is amortised through the income statement on a straight line basis to the earliest lease termination date.

 

The residual site value of a development is calculated as the estimated net development value, less development profit, all development construction costs, finance costs (assumed at a notional rate) of a project to completion and notional site acquisition costs. The residual is determined to be the current site value.

 

Topping out is a traditional construction ceremony to mark the occasion when the structure of the building reaches the highest point.

 

Total property return is calculated as the change in capital value, less any capex incurred, plus net income, expressed as a percentage of capital employed over the period, as calculated by IPD. Total property returns are calculated monthly and indexed to provide a return over the relevant period.

 

Total accounting return is the growth in EPRA NAV per share plus dividends paid, and this can be expressed as a percentage of EPRA NAV per share at the beginning of the period.

 

Total shareholder return is the growth in value of a shareholding over a specified period, assuming dividends are reinvested to purchase additional units of stock.

 

Total tax contribution is a more comprehensive view of tax contributions than the accountancy-defined tax figure quoted in most financial statements. It comprises taxes and levies paid directly, as well as taxes collected from others which we administered.

 

Turnover rent is where all or a portion of the rent is linked to the sales or turnover of the occupier.

 

Under rented is the term used to describe when the contracted rent is below the estimated rental value (ERV), implying a positive reversion.

 

Underlying earnings per share (EPS) consists of underlying profit after tax divided by the diluted weighted average number of shares in issue during the period.

 

Underlying Profit is the pre-tax EPRA earnings measure with additional Company adjustments. No Company adjustments were made in either the current or prior period.

 

Valuation uplift is the increase in the portfolio valuation and sales receipts of properties sold during the period, net of capital expenditure, capitalised interest and development team costs, and transaction costs incurred, expressed as a percentage of the portfolio valuation at the start of the period plus net capex, capitalised interest and development team costs, and transaction costs.

 

Virtual freehold represents a long leasehold tenure for a period of up to 999 years. A 'peppercorn', or nominal, rent is paid annually.

 

Weighted average debt maturity is calculated by multiplying each tranche of Group debt by the remaining period to its maturity, with the sum of the results being divided by total Group debt in issue at the period end.

 

Weighted average interest rate is the Group loan interest and net derivative costs per annum at the period end, divided by total Group debt in issue at the period end.

 

Weighted average unexpired lease term is the average lease term remaining to first break, or expiry, across the portfolio weighted by contracted rental income (including rent- frees). The calculation excludes residential leases and properties allocated as developments.

 

Yield on cost is the estimated annual rent of a completed development divided by the total cost of development including site value and notional finance costs to the point of assumed rent commencement, expressed as a percentage return.

 

Yield shift is a movement (usually expressed in bps) in the net equivalent yield of a property asset, or like-for-like portfolio, over a given period, weighted by net capital value.


This information is provided by RNS
The company news service from the London Stock Exchange
 
END
 
 
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