Financial Statements
3Gross and net rental income
| 2009 £m |
2008 £m |
|
|---|---|---|
| Rent Receivable | 462 | 547 |
| Spreading of tenant incentives and guaranteed rent increases | 34 | 46 |
| Surrender premiums | 1 | 3 |
| Gross rental income | 497 | 596 |
| Service charge income | 57 | 49 |
| Gross rental and related income | 554 | 645 |
| Service charge expenses | (57) | (49) |
| Property operating expenses | (44) | (35) |
| Net rental and related income | 453 | 561 |
The cash element of net rental income recognised during the year ended 31 March 2009 from properties which were not subject to a security interest was £103m. Property operating expenses relating to investment properties that did not generate any rental income were £1m (2008: £1m).