Yield Profile	Net equivalent1	True equivalent2	Gross (top-up) initial3
All Retail	5.6%	5.8%	5.5%
All Offices	6.0%	6.2%	6.0%
Total	5.8%	6.0%	5.7%

¹ after notional purchaser's costs and based on rents received annually in arrears
² after notional purchaser's costs and based on rents received quarterly in advance (reflecting true cash flow profile)
³ yield to British Land (without notional purchaser's costs) adding back rent frees and contracted rental uplifts

Financial Results

Results for the first quarter to 30 June 2008 show resilience in the Group's underlying profit. In the prior first quarter to June 2007 a dividend was received from our investment in Songbird Estates plc (of £16 million underlying) while no such dividend was received this quarter; these items by their nature are variable in amount and timing. Excluding this dividend, our underlying pre-tax profit has risen by 23%, as growth in high quality recurrent rental income has replaced more variable dividend investment income. Underlying earnings per share are unchanged at 14 pence against the corresponding period last year. A further reduction in the property portfolio valuation of 5.0% overall for the quarter is reflected in the IFRS loss of £565 million and the reduction in EPRA NAV per share to 1212 pence.

Income Statement (data presented on a proportionally consolidated basis – Table A)

The Group has been a net disinvestor and the property sales programme is reflected in the income statement, reducing both rents and finance costs. Gross rental income for the quarter reduced by £19 million as a result of the sales, while new lettings and rent reviews have generated increased income of £8 million. Overall, gross rental income has reduced to £169 million against £180 million in the corresponding period last year, a reduction of 6.1%.

Due to the sales including properties with higher non-recoverable expenses, net rental income has reduced by only 3.0% against the June 2007 comparative quarter.

On a like for like basis rental income growth was 6.3%, with an overall reduction in void carrying costs. While the climate remains challenging for some of our customers, our exposure to occupiers in administration represents only c.0.3% of total rent.

Underlying fees and other income at £5 million was substantially lower than the figure of £22 million in the corresponding period last year. The principal movement relates to the dividend from Songbird Estates plc of £16 million recognised in underlying profit; Songbird has no regular dividend policy and none was received this quarter.

Administrative expenses have decreased to £17 million, 22.7% lower than the corresponding period last year, reflecting principally the benefits of REIT restructuring (in 2007) and the reduced charge of share incentives due to current market conditions.

Net financing costs for the quarter at £76 million are 16.5% lower, reflecting our reduced level and cost of debt following property disposals.