Property
Portfolio Highlights
Positioned for growth with security.
| Valuation by sector | Group £m |
Funds/JVs1 £m |
Total £m |
Portfolio % |
Uplift2 % |
|---|---|---|---|---|---|
| Retail | |||||
| Retail warehouses | 1,556 | 1,556 | 3,112 | 21.6 | 14.4 |
| Shopping centres | 2,107 | 515 | 2,622 | 18.2 | 7.1 |
| Superstores | 1,513 | 254 | 1,767 | 12.3 | 16.0 |
| Department stores | 757 | 143 | 900 | 6.2 | 17.7 |
| High street | 338 | 36 | 374 | 2.6 | 12.2 |
| All retail | 6,271 | 2,504 | 8,775 | 60.9 | 12.6 |
| Offices | |||||
| City | 3,500 | 42 | 3,542 | 24.6 | 14.3 |
| West End | 643 | 44 | 687 | 4.8 | 13.1 |
| Business parks & provincial | 174 | 6 | 180 | 1.2 | 14.9 |
| Development | 790 | 1 | 791 | 5.5 | 23.7 |
| All offices |
5,107 | 93 | 5,200 | 36.1 | 15.5 |
| Industrial, distribution, leisure, other | 375 | 64 | 439 | 3.0 | 8.2 |
| Total | 11,753 | 2,661 | 14,414 | 100.0 | 13.5 |
1 Group's share of properties in Funds and Joint Ventures
2 Increase in value for 12 months to 31 March 2006 - includes valuation movement in developments, purchases and
capital expenditure, and excludes sales
| Current reversions (excluding developments) |
Annualised net rents1 £m |
Reversionary* income2 (5 years) £m |
Current yield3 % |
Reversionary yield3 (5 years) £m |
|---|---|---|---|---|
| Retail | ||||
| Retail warehouses | 123 | 35 | 4.0 | 5.1 |
| Shopping centres | 125 | 19 | 4.8 | 5.5 |
| Superstores | 85 | 2 | 4.8 | 5.0 |
| Department stores | 42 | 6 | 4.6 | 5.3 |
| High street | 18 | 2 | 4.9 | 5.3 |
| All retail | 393 | 64 | 4.5 | 5.2 |
| Offices | ||||
| City | 165 | 30 | 4.7 | 5.5 |
| West End | 33 | 4 | 4.7 | 5.3 |
| Business parks & provincial | 10 | 2 | 5.8 | 6.7 |
| All offices | 208 | 36 | 4.7 | 5.5 |
| Industrial, distribution, leisure, other | 24 | 2 | 5.5 | 6.0 |
| Total | 625 | 1025 | 4.64 | 5.3 |
1 Net rental income under IFRS differs from annualised net rents which are cash based, due to accounting items such as
spreading lease incentives and contracted future rental uplifts, as well as direct property costs
2 Includes rent reviews, expiry of rent free periods, lease break/expiry and letting of vacant space at current estimated
rental value (as determined by external valuers)
3 Portfolio yield (gross to British Land, without deduction of purchaser's costs)
4 Current yield adding back rent frees 4.8%
5 £47 million contracted under expiry of rent free periods and minimum rental increases
| Leases and occupancy (excluding developments) |
Weighted average lease term, years to first break |
Vacancy rate % |
|---|---|---|
| Retail | ||
| Retail warehouses | 14.4 | 3.01 |
| Shopping centres | 13.2 | 7.91 |
| Superstores | 20.9 | |
| Department stores | 30.9 | |
| High street | 11.9 | 2.9 |
| All retail | 17.1 | 3.81 |
| Offices | ||
| City | 10.0 | 5.3 |
| West End | 11.7 | 0.8 |
| Business parks & provincial | 9.9 | 7.2 |
| All offices | 10.3 | 4.7 |
| Industrial, distribution, leisure, other | 22.6 | 4.8 |
| Total | 15.0 | 4.11 |
1 More than 50% of vacancies in shopping centres and retail warehouses have been initiated by us under asset
management projects. The underlying vacancy rate, excluding these initiatives, for all retail is 1.8% and the total
portfolio vacancy rate is 2.8%.
Outperformance requires correct portfolio positioning, intense asset management and effective risk-reward assessments.
