British Land Interim Report

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Current chapter: Financial Highlights

Financial Highlights

  • Net Asset Value1 per share unchanged at 1682 pence (Q2 down 3%)
    • EPRA Net Assets1 £8.7 billion
    • IFRS Net Assets £8.6 billion
    • Properties owned or managed £20 billion
  • “Triple Net Asset Value” per share 1745 pence, up 4% (Q2 down 3%)
    • Adjusts debt and derivatives to market value, and deducts deferred tax
  • Underlying pre-tax profit2 £143 million, up 10% (Q2 £67 million up 18%)
    • IFRS loss on ordinary activities before tax £35 million
  • Underlying earnings per share2 26 pence, up 30% (Q2 12 pence up 33%)
    • IFRS earnings per share nil
    • Dividend 8.75 pence per share for the quarter to September 2007 (payable February 2008) making 17.5 pence for the six months, more than treble that of last year (and consistent with 35 pence full year target)
    • £250 million share buyback programme announced and underway, £125 million completed up to 30 September
  • Exceptional balance sheet resilience
    • Portfolio 99% let3 with 14.4 years average lease length
    • Debt 100% fixed rate at 5.3% average cost and average maturity of 12.7 years
  • Portfolio valuation decrease of 0.5% for the six months (Q2 1.9% decrease)
    • Capital return4 -0.5%, ahead of IPD Benchmark at -0.9%, due to outperformance
    • Like for like rental value growth of 4.2% versus IPD 2.4%
    • Outward yield shift of 21bps overall (Offices 25bps, Retail 20bps)
    • Valuations decreased principally within the Retail portfolio, down 2.9%; Offices (including developments) show 3.6% increase with ERV growth offsetting outward yield shift

 

Activist strategy progressing well:

  • £1.9 billion (gross) disposals since March 2007, overall 3% above valuation
  • Good occupancy demand, driving rents forward in both Office and Retail sectors
  • Development programme on schedule
  • Over 710,000 sq ft Office lettings and 740,000 sq ft Retail lettings since March 2007, including development pre-lets, capturing occupier demand and lowering risk

 

1 EPRA (European Public Real Estate Association) basis – Note 1 to the accounts
2 see Note 1
3 includes accommodation subject to asset management initiatives and under offer
4 calculated by IPD for our UK assets on average capital employed and excluding capitalised interest

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