Financial Statements
2Performance measures
Rights Issue - Restatement of performance measures
The Rights Issue concluded in March 2009 involved the issue of two new shares for every three held. To reflect the increased number of shares in issue at the year end, prior year comparatives for Earnings per share and Net Asset Value per share are restated with reference to the adjustment factor below:
| Theoretical Ex Rights Price ('TERP') | 326.25p |
|---|---|
| Closing middle market quotation of share on last day shares traded 'cum rights' | 393.75p |
| 2009 | 2008 | ||||
|---|---|---|---|---|---|
| Earnings per share (diluted) | (Loss) earnings £m |
Pence per share |
(Loss) earnings £m |
Pence per share |
|
| Underlying pre-tax profit - income statement | 268 | 284 | |||
| Tax charge relating to underlying profit | (9) | (8) | |||
| Underlying earnings per share | 259 | 41p | 276 | 44p* | |
| Realisation of cash flow hedges | (119) | ||||
| Tax and other items | 13 | ||||
| EPRA earnings per share | 140 | 22p | 289 | 46p* | |
| Loss for the year after taxation | (3,881) | (614)p | (1,563) | (251)p* | |
*As restated for the Rights Issue
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.
Underlying earnings consists of the EPRA earnings measure, with additional company adjustments. Adjustments include realisation of cash flow hedges, see note 7. The weighted average number of shares in issue for the year was: basic: 630m (2008 restated: 618m); diluted for the effect of share options: 632m (2008 restated: 623m). Basic undiluted loss per share for the year was 616p (2008 restated: 253p).
| Net asset value (NAV) | 2009 £m |
2008 £m |
|---|---|---|
| Balance sheet net assets | 3,209 | 6,790 |
| Deferred tax arising on revaluation movements | 25 | 102 |
| Mark to market on effective cash flow hedges and related debt adjustments | 153 | (3) |
| Dilution effect of share options | 47 | |
| EPRA NAV | 3,387 | 6,936 |
| EPRA NAV per share | 398p | 1114p* |
*As restated for the Rights Issue
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 2009, the number of shares in issue was: basic: 850m (2008 restated: 614m); diluted for the effect of share options: 851m (2008 restated: 623m).
Total return per share of minus 61.6% represents a reduction in EPRA NAV per share of 716p net of dividends paid of 30p (see note 20). Total return per share for the year ended 31 March 2008 was minus 18.1%.