Financial Statements
3 Gross and net rental income
| 2006 £m |
2005 £m |
|
|---|---|---|
| Rent receivable | 571 | 509 |
| Spreading of tenant incentives and guaranteed rent increases | 54 | 40 |
| Surrender premiums | 10 | 8 |
| Service charge income | 55 | 47 |
| Gross rental and related income | 690 | 604 |
| Service charge expenses | (57) | (44) |
| Property operating expenses | (44) | (43) |
| Net rental and related income | 589 | 517 |
Net rental income for the year ended 31 March 2006 from properties which were subject to a security interest or held by non recourse companies was £388m (2005: £374m).
Property operating expenses relating to investment properties that did not generate any rental income were £7m (2005: £6m).