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 after tax are the same as presented in the consolidated income statement.
| Q4 | Q3 | Q2 | Q1 | ||||
|---|---|---|---|---|---|---|---|
| 3 months ended | |||||||
| 31 March 2009 £m |
31 Dec 2008 £m |
30 Sep 2008 £m |
30 June 2008 £m |
31 March 2009 £m |
31 March 2008 £m |
||
| Gross rental income | 160 | 159 | 162 | 169 | 650 | 709 | |
| Net rental income | 130 | 151 | 155 | 162 | 598 | 667 | |
| Fees and other income | 6 | 4 | 5 | 5 | 20 | 40 | |
| Administrative expenses | (9) | (16) | (16) | (17) | (58) | (73) | |
| Net interest costs | (66) | (76) | (74) | (76) | (292) | (350) | |
| Underlying profit before taxation | 61 | 63 | 70 | 74 | 268 | 284 | |
| Non-recurring items | 9 | ||||||
| Net valuation movement (includes profit and losses on disposal) |
(967) | (1,635) | (821) | (651) | (4,074) | (1,916) | |
| Realisation of cash flow hedges | (78) | (41) | (119) | ||||
| Amortisation of intangible asset | (3) | (4) | (3) | (4) | (14) | (15) | |
| Songbird Estates plc dividend (capital) | 30 | ||||||
| Goodwill impairment | (3) | ||||||
| Loss on ordinary activities before taxation | (987) | (1,617) | (754) | (581) | (3,939) | (1,611) | |
| Tax charge relating to underlying profit | (3) | (2) | (3) | (1) | (9) | (8) | |
| Deferred tax benefit | 8 | 27 | 12 | 11 | 58 | 47 | |
| Other taxation | 5 | (2) | 6 | 9 | 9 | ||
| Loss for the period after taxation | (982) | (1,587) | (747) | (565) | (3,881) | (1,563) | |
| Underlying earnings per share - diluted basis† | 9p | 10p* | 11p* | 12p* | 41p§ | 44p* | |
†The underlying earnings per share is calculated on underlying pre-tax profit of £268m (2008: £284m), tax attributable to underlying profits of £9m (2008: £8m) and fully diluted shares numbering 632m (2008: 623m2). Gross rental income excludes service charge receivable.
§The difference between the aggregate of the four quarters' EPS and the annual EPS arises due to the impact of the Rights Issue on the weighted average number of shares.
*As restated, see note 2.
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 |
Head lease† £m |
EPRA Net assets 2009 £m |
EPRA Net assets 2008 £m |
|
|---|---|---|---|---|---|---|---|---|
| Retail properties | 2,078 | 788 | 2,017 | (16) | 4,867 | 7,661 | ||
| Office properties | 3,570 | 7 | (7) | 3,570 | 5,505 | |||
| Other properties | 176 | 12 | 188 | 305 | ||||
| Total properties | 5,824 | 788 | 2,036 | (23) | 8,625 | 13,471 | ||
| Investment in funds and joint ventures | 952 | (372) | (580) | |||||
| Other investments | 38 | |||||||
| Intangible assets | 25 | 25 | 39 | |||||
| Other net (liabilities) assets | (388) | 21 | (30) | 25 | (11) | 23 | (360) | (358) |
| Net debt | (3,242) | (437) | (1,426) | 164 | (4,941) | (6,413) | ||
| Net assets | 3,209 | 25 | 153 | 3,387 | 6,936 | |||
| EPRA NAV per share (note 2) | 398p | 1114p* |
†Head lease liabilities include £14m (2008: £35m) relating to Group properties and £9m (2008: £6m) relating to joint venture properties.
* As restated, see note 2.
| Calculation of EPRA NNNAV per share | 2009 £m |
2008 £m |
|---|---|---|
| EPRA NAV | 3,387 | 6,936 |
| Deferred tax arising on revaluation movements | (25) | (102) |
| Mark to market on effective cash flow hedges and related debt adjustments | (153) | 3 |
| Mark to market on debt | 1,116 | 582 |
| EPRA NNNAV | 4,325 | 7,419 |
| EPRA NNNAV per share | 508p | 1191p* |
EPRA NNNAV is the EPRA NAV adjusted to reflect the fair value of debt and derivatives and to include deferred taxation on revaluations.
As restated - see note 2.
Total property valuations including share of funds and joint ventures
| 2009 £m |
2008 £m |
|
|---|---|---|
| British Land Group | 5,810 | 10,469 |
| Share of funds and joint ventures | ||
| Investment properties | 2,775 | 2,889 |
| Development properties | 49 | 119 |
| Head lease liabilities | (9) | (6) |
| 2,815 | 3,002 | |
| Total property portfolio valuation | 8,625 | 13,471 |
Segment information
Operating segments
The Group allocates resources to properties it expects to perform over the medium term. The segmental analysis below, as required by IFRS 8, follows the information provided to the Chief Operating Decision Maker and reflects the two principal sectors in which the Group is currently invested - offices and retail. The relevant revenue, net rental income, assets and capital expenditure are set out below:
| Offices | Retail | Other | Total | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|
| 2009 £m |
2008 £m |
2009 £m |
2008 £m |
2009 £m |
2008 £m |
2009 £m |
2008 £m |
||||
| Revenue | |||||||||||
| British Land Group | 278 | 317 | 268 | 366 | 26 | 32 | 572 | 715 | |||
| Share of funds and joint ventures | 158 | 115 | 4 | 2 | 162 | 117 | |||||
| Total | 278 | 317 | 426 | 481 | 30 | 34 | 734 | 832 | |||
| Net rental income | |||||||||||
| British Land Group | 230 | 230 | 206 | 314 | 17 | 17 | 453 | 561 | |||
| Share of funds and joint ventures | 144 | 104 | 1 | 2 | 145 | 106 | |||||
| Total | 230 | 230 | 350 | 418 | 18 | 19 | 598 | 667 | |||
| Segment assets | |||||||||||
| British Land Group | 3,570 | 5,499 | 2,103 | 4,761 | 953 | 856 | 6,626 | 11,116 | |||
| Share of funds and joint ventures | 5 | 10 | 2,996 | 3,017 | 38 | 163 | 3,039 | 3,190 | |||
| Total | 3,575 | 5,509 | 5,099 | 7,778 | 991 | 1,019 | 9,665 | 14,306 | |||
| Capital expenditure | |||||||||||
| British Land Group | 383 | 537 | 170 | 105 | 12 | 17 | 565 | 659 | |||
| Share of funds and joint ventures | 92 | 311 | 13 | 92 | 324 | ||||||
| Total | 383 | 537 | 262 | 416 | 12 | 30 | 657 | 983 | |||