Business analysis
Sections within this page
- Summary income statement and balance sheet based on proportional consolidation
- Consolidated income statement
- Consolidated balance sheet
- Reconciliation of net book value of the investment properties to the market value
- Combined portfolio reconciliation
- Development pipeline financial summary
Summary income statement and balance sheet based on proportional consolidation
The following pro-forma information is unaudited and does not form part of the consolidated financial statements or the associated notes. They present the results of the Group, with the Group’s share of joint ventures and associates proportionately consolidated on a line-by-line basis.
Consolidated income statement
| Year ended 31/03/09 | Year ended 31/03/08 | |||||
| Group (excl. JVs) £m |
JVs £m |
Total £m |
Group (excl. JVs) £m |
JVs £m |
Total £m |
|
| Revenue | 821.2 | 103.3 | 924.5 | 818.0 | 111.6 | 929.6 |
| Costs | (326.4) | (37.3) | (363.7) | (317.4) | (47.3) | (364.7) |
| 494.8 | 66.0 | 560.8 | 500.6 | 64.3 | 564.9 | |
| (Loss)/profit on disposal of non-current properties | (130.8) | 2.9 | (127.9) | 57.3 | (7.1) | 50.2 |
| Impairment of trading properties | (92.3) | (12.3 | (104.6) | – | – | – |
| Net deficit on revaluation of investment properties | (4,113.4) | (630.3) | (4,743.7) | (1,158.4) | (134.2) | (1,292.6) |
| Operating loss | (3,841.7) | (573.7) | (4,415.4) | (600.5) | (77.0) | (677.5) |
| Net interest expense | (332.5) | (41.7) | (374.2) | (286.4) | (21.0) | (307.4) |
| Loss before tax | (4,174.2) | (615.4) | (4,789.6) | (886.9) | (98.0) | (984.9) |
| Income tax (expense)/credit | (0.5) | (1.3) | (1.8) | 15.1 | (3.1) | 12.0 |
| (4,174.7) | (616.7) | (4,791.4) | (871.8) | (101.1) | (972.9) | |
| Adjustment due to net liabilities | – | 17.7 | 17.7 | – | – | – |
| Loss for the year from continuing activities | (4,174.7) | (599.0) | (4,773.7) | (871.8) | (101.1) | (972.9) |
Consolidated balance sheet
| At 31/03/09 | At 31/03/08 | |||||
| Group £m |
JVs £m |
Total £m |
Group £m |
JVs £m |
Total £m |
|
| Investment properties | 7,929.4 | 1,208.0 | 9,137.4 | 12,296.7 | 1,579.0 | 13,875.7 |
| Other tangible fixed assets | 14.3 | – | 14.3 | 618.4 | – | 618.4 |
| 7,943.7 | 1,208.0 | 9,151.7 | 12,915.1 | 1,579.0 | 14,494.1 | |
| Net debt | (3,923.6) | (459.4) | (4,383.0) | (5,384.5) | (253.5) | (5,638.0) |
| Investments in joint ventures* | 930.8 | (930.8) | – | 1,410.6 | (1,410.6) | – |
| Other net assets | (130.7) | 182.2 | 51.5 | 641.7 | 85.1 | 726.8 |
| Unadjusted net assets | 4,820.2 | – | 4,820.2 | 9,582.9 | – | 9,582.9 |
| Minority interest | 3.3 | – | 3.3 | – | – | – |
| EPRA adjustments | 150.2 | – | 150.2 | 12.7 | – | 12.7 |
| EPRA adjusted net assets | 4,973.7 | – | 4,973.7 | 9,595.6 | – | 9,595.6 |
| Reverse bond exchange de-recognition adjustment | (499.8) | – | (499.8) | (511.5) | – | (511.5) |
| Adjusted net assets attributable to equity shareholders | 4,473.9 | – | 4,473.9 | 9,084.1 | – | 9,084.1 |
| Gearing | 81.4% | 90.9% | 56.2% | 58.8% | ||
| Adjusted gearing (excluding JVs) | 96.4% | 64.9% | ||||
| Adjusted gearing (including JVs) | 105.9% | 67.6% | ||||
*Excludes investments in associates of £nil (31 March 2008: £68.3m)
Back to topReconciliation of net book value of the investment properties to the market value
| At 31/03/09 | At 31/03/08 | |||||
| Group (excl. JVs) £m |
JVs £m |
Total £m |
Group (excl. JVs) £m |
JVs £m |
Total £m |
|
| Net book value | 7,929.4 | 1,208.0 | 9,137.4 | 12,296.7 | 1,579.0 | 13,875.7 |
| Plus: amount included in prepayments in respect of lease incentives | 189.3 | 31.6 | 220.9 | 180.6 | 6.6 | 187.2 |
| Less: head leases capitalised | (57.9) | (4.9) | (62.8) | (67.3) | (4.4) | (71.7) |
| Plus: properties treated as finance leases | 104.7 | 6.8 | 111.5 | 149.2 | 8.7 | 157.9 |
| Market value | 8,165.5 | 1,241.5 | 9,407.0 | 12,559.2 | 1,589.9 | 14,149.1 |
Combined portfolio reconciliation
| Retail Portfolio £m |
London Portfolio £m |
Other £m |
31/03/09 £m |
Retail Portfolio £m |
London Portfolio £m |
Other £m |
31/03/08 £m |
|
| Income statement – gross rental income reconciliation | ||||||||
| Combined portfolio | 374.5 | 306.1 | 46.8 | 727.4 | 373.5 | 282.1 | 57.5 | 713.1 |
| Central London shops (excluding Metro Shopping Fund LP) | (42.8) | 42.8 | – | – | (45.4) | 45.4 | – | – |
| Inner London offices in Metro Shopping Fund LP | 0.8 | (0.8) | – | – | 0.8 | (0.8) | – | – |
| Rest of UK offices | 1.5 | 0.2 | (1.7) | – | 2.3 | – | (2.3) | – |
| Other | 40.6 | 4.5 | (45.1) | – | 39.4 | 15.8 | (55.2) | – |
| 374.6 | 352.8 | – | 727.4 | 370.6 | 342.5 | – | 713.1 | |
| Less finance lease adjustment | (2.7) | (5.3) | – | (8.0) | (2.9) | (5.9) | – | (8.8) |
| Total rental income for combined portfolio | 371.9 | 347.5 | – | 719.4 | 367.7 | 336.6 | – | 704.3 |
| Open market value reconciliation | ||||||||
| Combined portfolio | 4,687.3 | 3,969.0 | 750.7 | 9,407.0 | 6,851.9 | 6,124.0 | 1,046.7 | 14,022.6 |
| Central London shops (excluding Metro Shopping Fund LP) | (939.2) | 939.2 | – | – | (1,008.0) | 1,008.0 | – | – |
| Inner London offices in Metro Shopping Fund LP | 9.8 | (9.8) | – | – | 18.0 | (18.0) | – | – |
| Rest of UK offices | 51.1 | – | (51.1) | – | 79.6 | – | (79.6) | – |
| Other | 508.6 | 191.0 | (699.6) | – | 731.8 | 235.3 | (967.1) | – |
| Per business unit | 4,317.6 | 5,089.4 | – | 9,407.0 | 6,673.3 | 7,349.3 | – | 14,022.6 |
| Gross estimated rental value reconciliation | ||||||||
| Combined portfolio | 455.5 | 325.6 | 53.6 | 834.7 | 451.6 | 431.6 | 63.5 | 946.7 |
| Central London shops (excluding Metro Shopping Fund LP) | (85.7) | 85.7 | – | – | (70.1) | 70.1 | – | – |
| Inner London offices in Metro Shopping Fund LP | 0.9 | (0.9) | – | – | 1.0 | (1.0) | – | – |
| Rest of UK offices | 5.0 | – | 5.0 | – | 5.7 | – | (5.7) | – |
| Other | 40.1 | 8.5 | (48.6) | – | 46.3 | 11.5 | (57.8) | – |
| Per business unit | 415.8 | 418.9 | – | 834.7 | 434.5 | 512.2 | – | 946.7 |
Development pipeline financial summary
| Cumulative movements on the development programme to 31/03/09 | Total scheme details | ||||||||||
Market value at start of scheme £m |
Capital expenditure incurred to date £m |
Capitalised interest to date £m |
Revaluation (deficit)/ surplus to date1 £m |
Disposals, SIC 15 rent and other adjustments £m |
Market value at 31/03/09 £m |
Estimated total capital expenditure4 £m |
Estimated total capitalised interest £m |
Estimated total cost less residential2 £m |
Net income/ ERV3 £m |
Valuation deficit for year ended/ 31/03/09 1 £m |
|
| Development programme transferred or sold |
|||||||||||
| Retail warehouses | 11.9 | 6.7 | 0.1 | (6.7) | 0.2 | 12.2 | 6.7 | 0.1 | 18.7 | 1.1 | (4.6) |
| London Portfolio | 16.0 | 152.0 | 10.6 | 55.7 | 2.2 | 236.5 | 157.1 | 10.6 | 183.7 | 16.7 | (24.9) |
| 27.9 | 158.7 | 10.7 | 49.0 | 2.4 | 248.7 | 163.8 | 10.7 | 202.4 | 17.8 | (29.5) | |
| Development programme completed, approved or in progress |
|||||||||||
| Shopping centres and shops | 52.5 | 622.2 | 38.3 | (315.9) | 5.5 | 402.6 | 752.6 | 43.7 | 811.7 | 44.4 | (289.9) |
| London Portfolio | 441.7 | 564.5 | 52.7 | (321.3) | 67.4 | 805.0 | 1,019.6 | 103.8 | 1,456.5 | 95.2 | (453.7) |
| 494.2 | 1,186.7 | 91.0 | (637.2) | 72.9 | 1,207.6 | 1,772.2 | 147.5 | 2,268.2 | 139.6 | (743.6) | |
| Movement on proposed developments for the year ended 31/03/09 | |||||||||||
| Proposed developments | |||||||||||
| Shopping centres and shops | 207.0 | 36.2 | 11.6 | (161.8) | (8.0) | 85.0 | 260.1 | 30.1 | 375.2 | 27.5 | (161.8) |
| London Portfolio | 426.8 | 46.9 | 2.4 | (228.2) | 28.9 | 276.8 | 1,181.2 | 158.5 | 1,165.0 | 97.8 | (228.2) |
| 633.8 | 83.1 | 14.0 | (390.0) | 20.9 | 361.8 | 1,441.3 | 188.6 | 1,540.2 | 125.3 | (390.0) | |
Notes:
- Includes profit realised on the disposal of property.
- Includes the property at the market valuation at the start of the financial year in which the property was added to the Development Programme together with estimated capitalised interest. For Proposed Development properties, the market value of the property at 31 March 2009 is included in the estimated total cost. Estimated total cost is stated net of the cost of residential properties for Shopping Centres and shops of £37.1m for developments in progress. The London Portfolio development programme and proposed developments are stated net of the cost of residential properties of £108.6m and £451.5m respectively. Allowances for rent-free periods are excluded from cost.
- Net headline annual rental payable on let units plus net ERV at 31 March 2009 on unlet units.
- For Proposed Development properties the estimated total capital expenditure represents the outstanding costs required to complete the scheme as at 31 March 2009.