• Retail warehouses, representing 25.9% of the portfolio, saw outward equivalent yield shift of 69 bps, offset by ERV growth of 0.9% resulting in the valuation reducing by 10.2%; and
• Shopping centres, being 16.5% of the portfolio, showed a fall in value of 8.0% with an outward equivalent yield shift of 49 bps against ERV growth of 1.0%.

The value of our investment in Songbird Estates plc, which provides a ‘look through’ 10.8% economic interest in Canary Wharf, the London Dockland premier office estate, has been marked down for accounting purposes at 30 September 2008 by 39.5% since 31 March 2008 to £112m.

Portfolio Yields (excluding developments)	Annualised net rents1 £m	Reversionary income2 (5 years) £m	Initial yield3 %	Top-up Initial Yield3,6 %	Reversionary yield3 (5 years) %	Net Equivalent yield4 %
Retail
Retail Warehouses	158	31	5.7	6.1	6.8	6.0
Superstores	68	5	5.6	5.6	6.0	5.5
Shopping Centres	101	14	5.3	5.6	6.1	5.9
Department Stores	38	6	5.9	6.8	6.8	6.6
High Street	4	1	6.0	6.1	7.4	6.4
All retail	369	57	5.6	5.9	6.4	5.9
Offices
City	163	36	5.5	6.2	6.6	6.3
West End	50	10	5.4	5.7	6.5	6.1
All offices	213	46	5.4	6.1	6.6	6.2
Industrial, distribution, leisure, other	18	3	7.2	7.9	8.5	8.4
Total	600	1065	5.6	6.0	6.6	6.17

Data for Group and its share of Funds and Joint Ventures
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 £48m contracted under expiry of rent free periods and minimum rental increases
⁶ adding back rent frees and minimum rental uplifts
⁷ true equivalent yield (after notional purchaser’s costs and based on rents received quarterly in advance, reflecting true cash flow profile): Retail 6.2%; Offices 6.5%; Total 6.3%

Property sectoral outlook

Retail Sector

Leadership in Retail	- £6.8 billion invested (BL Share)
	- £10.4 billion total property under management

Following significant reshaping, the retail portfolio is now firmly focussed on prime out of town shopping parks, superstores and Meadowhall. More than 90% of our investments have the most flexible planning use of Open A1 (or open restricted), offering the best scope for our ongoing asset management initiatives.

It is important to note that not all out of town retail parks fall into a single sub-sector. Open A1 parks are expected to outperform due to their favourable supply and demand characteristics: retailers continue to migrate to these parks from the High Street, seeking and realising lower occupational costs and flexible accommodation. By contrast, bulky goods retail warehouses,