Notes to the accounts (unaudited)

1. Performance measures

Year ended
31 March 2008
  Three months ended 30 September Six months ended 30 September
2008 2007 2008 2007
Earnings
£m
Pence per
share
(Loss) earnings per share (diluted) Earnings
£m
Pence per
share
Earnings
£m
Pence per
share
Earnings
£m
Pence per
share
Earnings
£m
Pence per
share
284   Underlying pre tax profit – inc ome statement 70   67   144   143  
(8)   Tax charge relating to underlying profit (3)   (3)   (4)   (6)  
276 53 p Underlying earnings per share 67 13 p 64 12 p 140 27 p 137 26 p
    Realisation of cash flow hedges             9  
13   Tax and other items     1       2  
289 56 p EPRA earnings per share 67 13 p 65 12 p 140 27 p 148 28 p
1,563 (330) p Loss for the period after taxation (747) (146) p (277) 54 p (1,312) (257) p (2) 0 p

The European Public Real Estate Association (EPRA) issued Best Practices Policy Recommendations in November 2006, which gives guidelines for performance measures. The EPRA earnings measure excludes investment property revaluations and gains on disposals, intangible asset movements and their related taxation.

Underlying earnings consists of the EPRA earnings measure, with additional company adjustments. Adjustments include realisation of cash flow hedges and prior year tax items.

The weighted average number of shares in issue for the six month period was: basic: 509m (three months ended 30 September 2008: 510m; year ended 31 March 2008: 512m; six months ended 30 September 2007: 519m; three months ended 30 September 2007: 516m); diluted for the effect of share options: 511m (three months ended 30 September 2008: 512m; year ended 31 March 2008: 516m; six months ended 30 September 2007: 520m; three months ended 30 September 2007: 517m). Basic earnings per share (undiluted) for the six month period were (258)p (three months ended 30 September 2008: (146)p; year ended 31 March 2008: (305)p; six months ended 30 September 2007: 0p; three months ended 30 September 2007: (54)p). Earnings per share shown in the table above are diluted.

31 March
2008
£m
Net asset value (NAV) 30 September
2008
£m
30 September
2007
£m
30 June
2008
£m
6,790 Balance sheet net assets 5,289 8,621 6,260
102 Deferred tax arising on revaluation movements 63 134 85
(3) Mark to market on effective cash flow hedges and related debt adjustments (2) (108) (136)
47 Dilution effect of share options 43 49 43
6,936 EPRA NAV 5,393 8,696 6,252
1344 p EPRA NAV per share 1043 p 1682 p 1212 p

The EPRA NAV per share excludes the mark to market on effective cash flow hedges and related debt adjustments, deferred taxation on revaluations and is calculated on a fully diluted basis.

At 30 September 2008, the number of shares in issue was: basic: 510m (30 June 2008: 509m; 31 March 2008: 509m; 30 September 2007: 509m); diluted for the effect of share options: 517m (30 June 2008: 516m; 31 March 2008: 516m; 30 September 2007: 517m).

Total return per share of minus 21.1% represents a reduction in EPRA NAV per share of 301p net of dividends paid of 17.5p (being the final two quarters of the 35p full year 2008 dividend, see note 7) in the six months to 30 September 2008. Total return per share for the year ended 31 March 2008 was minus 18.1%.