British Land Interim Report

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Go back to the start of chapter: Property sectoral outlook Go forward to the start of chapter: Principal Risks and Uncertainties for the remaining six months of the financial year Go to the next page: 19 (chapter: Principal Risks and Uncertainties for the remaining six months of the financial year) Go to the previous page: 17 (chapter: Property sectoral outlook)

Current page: 18
Current chapter: Further portfolio analysis

Further portfolio analysis

Current reversions
(excluding developments) 		Annualised net rents1
£m		 Reversionary income2
(5 years) £m 		Initial
yield3
%		 Reversionary
yield3
(5 years) % 		Net Equivalent
yield4
%
Retail
Retail Warehouses 146 30 4.0 4.8 4.5
Superstores 100 5 4.5 4.8 4.4
Shopping Centres 104 18 4.5 5.2 5.0
Department Stores 42 6 4.6 5.3 5.2
High Street 10 1 5.0 5.4 5.0
All retail 402 60 4.3 4.9 4.7
Offices
City 152 50 4.1 5.4 5.1
West End 42 12 4.2 5.4 5.0
Business Parks & Provincial 2 - 5.2 5.6 5.6
All offices 196 62 4.1 5.4 5.1
Industrial, distribution, leisure, other 23 3 5.4 6.2 6.2
Total 621 1255 4.36 5.1 4.9

1 net rental income under IFRS differs from annualised net rents which are cash based, due to accounting items such as spreading lease incentives and contracted future rental uplifts, as well as direct property costs
2 includes rent reviews and lease break/expiry and letting of vacant space at current ERV (as determined by external valuers) within 5 years, plus expiry of rent free periods
3 gross yield to British Land (without notional purchaser’s costs)
4 after purchaser’s costs
5 £61m contracted under expiry of rent free periods and minimum rental increases
6 initial yield after adding back rent frees 4.6%


Leases and occupancy
(excluding developments) 		Average lease term,
years to first break 		Underlying1
occupancy rate % 		Occupancy rate
%
Retail
Retail Warehouses 12.7 99.3 98.8
Superstores 19.9 100.0 100.0
Shopping Centres 12.5 98.1 96.0
Department Stores 29.3 100.0 100.0
High Street 9.2 98.4 98.3
All retail 16.0 99.2 98.4
Offices
City 10.4 99.2 98.9
West End 10.4 99.5 94.7
Business Parks & Provincial 16.6 97.5 97.5
All offices 10.5 99.2 98.0
Industrial, distribution, leisure, other 24.6 96.1 94.1
Total 14.4 99.1 98.1

1the underlying occupancy rate includes accommodation subject to asset management initiatives and under offer

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