Financial Statements
Notes to the Accounts
2 Performance measures
| 2008 | 2007 | |||
|---|---|---|---|---|
| Earnings per share (diluted) | (Loss) earnings £m |
Pence per share |
(Loss) earnings £m |
Pence per share |
| Underlying pre-tax profit - income statement | 284 | 257 | ||
| Tax charge relating to underlying profit | (8) | (31) | ||
| Underlying earnings per share | 276 | 53p | 226 | 43p |
| Refinancing charges | (305) | |||
| Tax and other items | 13 | 58 | ||
| EPRA earnings (loss) per share | 289 | 56p | (21) | (4)p |
| (Loss) profit for the year after taxation | (1,563) | (303)p | 2,453 | 470p |
The European Public Real Estate Association (EPRA) issued Best Practices Policy Recommendations in November 2006, which gives guidelines for performance measures. The EPRA earnings measure excludes investment property revaluations and gains or losses on disposals, intangible asset movements and their related taxation and the REIT conversion charge.
Underlying earnings consists of the EPRA earnings measure, with additional company adjustments, including reversal of refinancing charges, realisation of cash flow hedges and REIT-related transactions, none of which occurred in the current year. The weighted average number of shares in issue for the year was: basic: 512m (2007: 520m); diluted for the effect of share options: 516m (2007: 522m). Basic undiluted (loss) earnings per share for the year was (305p) (2007: 472p).
| Net asset value (NAV) | 2008 £m |
2007 £m |
|---|---|---|
| Balance sheet net assets | 6,790 | 8,747 |
| Deferred tax arising on revaluation movements, capital allowances and derivatives | 102 | 168 |
| Mark to market on effective cash flow hedges and related debt adjustments | (3) | (99) |
| Dilution effect of share options | 47 | 46 |
| EPRA NAV | 6,936 | 8,862 |
| EPRA NAV per share | 1344p | 1682p |
The EPRA NAV per share excludes the mark to market on effective cash flow hedges and related debt adjustments, deferred taxation on revaluations and is calculated on a fully diluted basis. At 31 March 2008 the number of shares in issue was: basic: 509m (2007: 521m); diluted for the effect of share options: 516m (2007: 527m).
Total return per share of minus 18.1% represents a reduction per share in EPRA NAV per share of 338p net of dividends paid of 32.25p (see note 19).
Total return per share (before charges for REIT conversion and refinancings) for the year ended 31 March 2007 was 21.3%.
