Financial Statements
Table A
Summary income statement based on proportional consolidation
The following pro forma information is unaudited and does not form part of the consolidated primary statements or the notes thereto. It presents the results of the Group, with funds and joint ventures consolidated on a line by line, i.e. proportional basis. The underlying profit before tax and total (loss) profit after tax are the same as presented in the consolidated income statement.
| Q4 | Q3 | Q2 | Q1 | |||
|---|---|---|---|---|---|---|
| 3 months ended | ||||||
| 31 March 2008 £m |
31 Dec 2007 £m |
30 Sep 2007 £m |
30 June 2007 £m |
Year ended 31 March 2008 £m |
Year ended 31 March 2007 £m |
|
| Gross rental income | 180 | 174 | 175 | 180 | 709 | 706 |
| Net rental income | 166 | 167 | 167 | 167 | 667 | 661 |
| Fees and other income | 4 | 7 | 7 | 22 | 40 | 51 |
| Administrative expenses | (15) | (17) | (19) | (22) | (73) | (85) |
| Net interest costs | (86) | (85) | (88) | (91) | (350) | (370) |
| Underlying profit before taxation | 69 | 72 | 67 | 76 | 284 | 257 |
| Debt refinancing | 9 | 9 | (305) | |||
| Net valuation movement and gains on disposal | (318) | (1,391) | (365) | 158 | (1,916) | 1,424 |
| Amortisation of intangible asset | (7) | (3) | (1) | (4) | (15) | (15) |
| Songbird Estates plc dividend (capital) | 30 | 30 | 33 | |||
| Goodwill impairment | (1) | (2) | (3) | (111) | ||
| REIT conversion costs | (13) | |||||
| (Loss) Profit on ordinary activities before taxation | (257) | (1,322) | (299) | 267 | (1,611) | 1,270 |
| Tax charge relating to underlying profit | (2) | (3) | (3) | (8) | (31) | |
| REIT conversion charge | (325) | |||||
| Deferred tax benefit | 8 | 5 | 24 | 10 | 47 | 1,673 |
| Other taxation | 6 | 1 | 1 | 1 | 9 | (134) |
| (Loss) Profit for the period after taxation | (243) | (1,318) | (277) | 275 | (1,563) | 2,453 |
| Underlying earnings per share - diluted basis | 13p | 14p | 12p | 14p | 53p | 43p |
The underlying earnings per share is calculated on underlying pre-tax profit of £284m (2007: £257m), tax attributable to underlying profits of £8m (2007: £31m) and fully diluted shares numbering 516m (2007: 522m). Gross rental income excludes service charge receivable.
Summary balance sheet based on proportional consolidation
The following pro forma information is unaudited and does not form part of the consolidated primary statements or the notes thereto. It presents the composition of the EPRA net assets of the Group, with share of funds and joint venture assets and liabilities included on a line by line, i.e. proportional basis and assuming full dilution.
| Group £m |
Share of funds £m |
Share of joint ventures £m |
Deferred tax £m |
Mark-to- market of interest rate swaps £m |
Dilution effect of options £m |
Head lease* £m |
EPRA Net assets 2008 £m |
EPRA Net assets 2007 £m |
|
|---|---|---|---|---|---|---|---|---|---|
| Retail properties | 4,722 | 1,163 | 1,810 | (34) | 7,661 | 10,173 | |||
| Office properties | 5,499 | 13 | (7) | 5,505 | 6,165 | ||||
| Other properties | 283 | 22 | 305 | 565 | |||||
| Total properties | 10,504 | 1,163 | 1,845 | (41) | 13,471 | 16,903 | |||
| Investment in funds and joint ventures | 1,532 | (723) | (809) | ||||||
| Other investments | 196 | 1 | 197 | 267 | |||||
| Intangible assets | 39 | 39 | 50 | ||||||
| Other net liabilities | (449) | (28) | (71) | 102 | 47 | 41 | (358) | (617) | |
| Net debt | (5,032) | (413) | (965) | (3) | (6,413) | (7,741) | |||
| Net assets | 6,790 | 102 | (3) | 47 | 6,936 | 8,862 | |||
| EPRA NAV per share (note 2) | 1344p | 1682p |
* Head lease liabilities include £35m relating to Group properties and £6m relating to joint venture properties.
Calculation of EPRA NNNAV per share
| 2008 £m | 2007 £m | |
|---|---|---|
| EPRA NAV | 6,936 | 8,862 |
| 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 |
| Mark to market on debt | 582 | 75 |
| EPRA NNNAV | 7,419 | 8,868 |
| EPRA NNNAV per share | 1438p | 1683p |
EPRA NNNAV is the EPRA NAV adjusted to reflect the fair value of debt and derivatives and to include deferred taxation on revaluations.
Total property valuations including share of funds and joint ventures
| 2008 £m |
2007 £m |
|
|---|---|---|
| British Land Group | 10,469 | 14,017 |
| Share of funds and joint ventures | ||
| Investment properties | 2,889 | 2,815 |
| Development properties | 119 | 77 |
| Head lease liabilities | (6) | (6) |
| 3,002 | 2,886 | |
| Total property portfolio valuation | 13,471 | 16,903 |
Segment information
Operating segments
The Group allocates resources to investment and asset management according to the sectors it expects to perform over the medium term. Its two principal sectors are currently offices and retail and the relevant revenue, net rental income, assets and capital expenditure are set out below:
| Offices | Retail | Other | Total | |||||
|---|---|---|---|---|---|---|---|---|
| 2008 £m |
2007 £m |
2008 £m |
2007 £m |
2008 £m |
2007 £m |
2008 £m |
2007 £m |
|
| Revenue | ||||||||
| British Land Group | 317 | 327 | 366 | 464 | 32 | 35 | 715 | 826 |
| Share of funds and joint ventures | 1 | 115 | 114 | 2 | 117 | 115 | ||
| Total | 317 | 328 | 481 | 578 | 34 | 35 | 832 | 941 |
| Net rental income | ||||||||
| British Land Group | 230 | 228 | 314 | 306 | 17 | 27 | 561 | 561 |
| Share of funds and joint ventures | 2 | 104 | 96 | 2 | 2 | 106 | 100 | |
| Total | 230 | 230 | 418 | 402 | 19 | 29 | 667 | 661 |
| Segment assets | ||||||||
| British Land Group | 5,499 | 6,171 | 4,761 | 7,401 | 856 | 1,198 | 11,116 | 14,770 |
| Share of funds and joint ventures | 10 | 51 | 3,017 | 2,887 | 163 | 175 | 3,190 | 3,113 |
| Total | 5,509 | 6,222 | 7,778 | 10,288 | 1,019 | 1,373 | 14,306 | 17,883 |
| Capital expenditure | ||||||||
| British Land Group | 537 | 487 | 105 | 1,016 | 17 | 147 | 659 | 1,650 |
| Share of funds and joint ventures | 311 | 539 | 13 | 15 | 324 | 554 | ||
| Total | 537 | 487 | 416 | 1,555 | 30 | 162 | 983 | 2,204 |
