British Land Co PLC

Annual / Quarterly Financial Statement • May 14, 2015

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RNS Number : 1268N British Land Co PLC 14 May 2015  Consolidated Income Statement For the year ended 31 March 2015 2015 2014 Underlying pre-tax Capital and other Underlying pre-tax Capital and other Total Total Note £m £m £m £m £m £m Gross rental and related income 3 464 - 464 384 - 384 Net rental and related income 3 375 - 375 313 - 313 Fees and other income 4 12 - 12 15 - 15 Joint ventures and funds (see also below) 129 597 726 124 253 377 Administrative expenses (82) - (82) (72) - (72) Net valuation movement (includes result on disposals) 5 - 910 910 - 615 615 Financing costs - financing income 6 7 - 7 9 3 12 - financing charges 6 (112) (47) (159) (90) (60) (150) (105) (47) (152) (81) (57) (138) Profit on ordinary activities before taxation 329 1,460 1,789 299 811 1,110 Taxation - current tax (expense) income 7 (1) (1) 3 3 - deferred tax (expense) income 7 (23) (23) 3 3 (24) (24) 6 6 Profit for the year after taxation 1,765 1,116 Attributable to non-controlling interests 16 39 55 2 8 10 Attributable to shareholders of the Company 313 1,397 1,710 297 809 1,106 Earnings per share: basic 2 168.3p 110.7p 110.2p diluted 2 167.3p As defined in note 2 All results derive from continuing operations 2015 2014 Underlying Capital Underlying Capital pre-tax and other Total pre-tax and other Total Note £m £m £m £m £m £m Results of joint ventures and funds accounted for using the equity method Underlying profit before taxation 129 - 129 124 - 124 Net valuation movement (includes result on disposals) - 595 595 - 258 258 Current tax expense - (2) (2) - (5) (5) Deferred tax income - 4 4 - - - 9 129 597 726 124 253 377 As defined in note 2 Consolidated Statement of Comprehensive Income For the year ended 31 March 2015 2015 2014 £m £m Profit for the year after taxation 1,765 1,116 Other comprehensive income: Items that will not be reclassified subsequently to profit or loss: Net actuarial loss on pension scheme (5) (2) Valuation movements on owner-occupied property 10 - 5 (2) Items that may be reclassified subsequently to profit or loss: (Losses) gains on cash flow hedges - Group (71) 14 - Joint ventures and funds 3 48 - Reclassification of items from the statement of comprehensive income 30 - (38) 62 Transferred to the income statement (cash flow hedges) - Foreign currency derivatives (11) 8 - Interest rate derivatives 8 15 (3) 23 Exchange differences on translation of foreign operations - Hedging and translation 6 2 - Other (6) 1 - 3 Deferred tax taken to equity 10 5 10 5 Other comprehensive (loss) profit for the year (26) 91 Total comprehensive income for the year 1,739 1,207 Attributable to non-controlling interests 53 10 Attributable to shareholders of the Company 1,686 1,197 Consolidated Balance Sheet As at 31 March 2015 2015 2014 Note £m £m ASSETS Non-current assets Investment and development properties 8 9,120 7,272 Owner-occupied property 8 60 47 9,180 7,319 Other non-current assets Investments in joint ventures and funds 9 2,901 2,712 Other investments 10 379 262 Interest rate derivative assets 15 139 32 12,599 10,325 Current assets Trading properties 8 274 271 Debtors 11 20 41 Cash and short-term deposits 15 108 142 402 454 Total assets 13,001 10,779 LIABILITIES Current liabilities Short-term borrowings and overdrafts 15 (102) (495) Creditors 12 (261) (263) Corporation tax (9) (8) (372) (766) Non-current liabilities Debentures and loans 15 (3,847) (2,803) Other non-current liabilities 13 (79) (32) Deferred tax liabilities 14 (12) (4) Interest rate derivative liabilities 15 (126) (57) (4,064) (2,896) Total liabilities (4,436) (3,662) Net assets 8,565 7,117 Equity Share capital 19 258 255 Share premium 1,280 1,257 Merger reserve 213 213 Other reserves (82) (70) Retained earnings 6,563 5,091 Equity attributable to shareholders of the Company 8,232 6,746 Non-controlling interests 333 371 Total equity 8,565 7,117 EPRA NAV per share 2 829 p 688 p * As defined in note 2. Consolidated Statement of Cash Flows For the year ended 31 March 2015 2015 2014 Note £m £m Rental income received from tenants 397 312 Fees and other income received 14 19 Operating expenses paid to suppliers and employees (93) (88) Cash generated from operations 318 243 Interest paid (124) (116) Interest received 18 29 Distributions and other receivables from joint ventures and funds 73 63 Net cash inflow from operating activities 285 219 Cash flows from investing activities Development and other capital expenditure (157) (175) Purchase of investment properties (172) (569) Sale of investment and trading properties 415 352 Payments received in respect of trading properties 32 - Purchase of investments (7) (84) Sale of investments - 8 Deferred consideration received - 5 Acquisition of Speke Unit Trust 18 (90) - Tesco property swap 18 (93) - Cash acquired on acquisition of Hercules Unit Trust - 18 Acquisition of units in Hercules Unit Trust (93) (145) Purchase of joint ventures and funds - (113) Sale of joint ventures and funds - 179 Investment in and loans to joint ventures and funds (173) (162) Capital distributions and loan repayments from joint ventures and funds 134 28 Indirect taxes paid in respect of investing activities - (2) Net cash outflow from investing activities (204) (660) Cash flows from financing activities Issue of ordinary shares 12 11 Dividends paid 16 (228) (159) Dividends paid by subsidiaries (19) - Closeout of interest rate derivative (12) (16) Movement in other financial liabilities 10 (8) Decrease in bank and other borrowings (581) (49) Drawdowns on bank and other borrowings 703 669 Net cash (outflow) inflow from financing activities (115) 448 Net (decrease) increase in cash and cash equivalents (34) 7 Cash and cash equivalents at 1 April 142 135 Cash and cash equivalents at 31 March 108 142 Cash and cash equivalents consists of: Cash and short-term deposits 15 108 142 Consolidated Statement of Changes in Equity for the year ended 31 March 2015 Share Capital Share premium Hedging and translation reserve Revaluation reserve Merger reserve Retained earnings Total Non-controlling interest Total Equity * * * £m £m £m ** £m £m £m £m £m £m Balance at 1 April 2014 255 1,257 (32) (38) 213 5,091 6,746 371 7,117 Profit for the year after taxation - - - - - 1,710 1,710 55 1,765 Losses on cash flow hedges - - (69) - - - (69) (2) (71) Revaluation of owner occupied property - - - 10 - - 10 - 10 Joint ventures and funds revaluations - - - 3 - - 3 - 3 Reclassification of items from the statement of comprehensive income - - - 30 - - 30 - 30 Reclassification of (losses) gains on cash flow hedges - Foreign currency derivatives - - (11) - - - (11) - (11) - Interest rate derivatives - - 8 - - - 8 - 8 Exchange differences on translation of foreign operations - - 6 (6) - - - - - Net actuarial loss on pension schemes - - - - - (5) (5) - (5) Deferred tax taken to equity - - 22 (5) - (7) 10 - 10 Other comprehensive (loss) income - - (44) 32 - (12) (24) (2) (26) Total comprehensive income for the year - - (44) 32 - 1,698 1,686 53 1,739 Share issues 3 23 - - - (10) 16 - 16 Non-controlling interest on acquisition of subsidiary - - - - - - - 31 31 Purchase of units from non-controlling interest - - - - - 2 2 (103) (101) Adjustment for share and share option awards - - - - - 10 10 - 10 Dividends payable in year (27.3p per share) - - - - - (277) (277) - (277) Dividends payable by subsidiaries - - - - - - - (19) (19) Adjustment for scrip dividend element - - - - - 49 49 - 49 Balance at 31 March 2015 258 1,280 (76) (6) 213 6,563 8,232 333 8,565 Balance at 1 April 2013 249 1,242 (71) (92) 213 4,146 5,687 - 5,687 Profit for the year after taxation - - - - - 1,106 1,106 10 1,116 Gains on cash flow hedges - - 14 - - - 14 - 14 Revaluation through statement of changes in equity - - - - - 1 1 - 1 Joint ventures and funds revaluations - - - 48 - - 48 - 48 Reclassification of gains (losses) on cash flow hedges - Foreign currency derivatives - - 8 - - - 8 - 8 - Interest rate derivatives - - 15 - - - 15 - 15 Exchange differences on translation of foreign operations - - 2 1 - (1) 2 - 2 Net actuarial loss on pension schemes - - - - - (2) (2) - (2) Deferred tax taken to equity - - - 5 - - 5 - 5 Other comprehensive income (loss) - - 39 54 - (2) 91 - 91 Total comprehensive income for the year - - 39 54 - 1,104 1,197 10 1,207 Share issues 6 15 - - - (8) 13 - 13 Non-controlling interest on acquisition of subsidiary - - - - - - - 374 374 Purchase of units from non-controlling interest - - - - - - - (13) (13) Adjustment for share and share option awards - - - - - 10 10 - 10 Dividends payable in year (26.7p per share) - - - - - (266) (266) - (266) Adjustment for scrip dividend element - - - - - 105 105 - 105 Balance at 31 March 2014 225 1,257 (32) (38) 213 5,091 6,746 371 7,117 Refer to note 19 ** The balance at the beginning of the period includes £4m relating to translation and (£36m) relating to hedging. Notes to the accounts for the year ended 31 March 2015 1. Basis of preparation The financial information set out above does not constitute the Company's statutory accounts for the years ended 31 March 2015 or 2014, but is derived from those accounts. Statutory accounts for 2014 have been delivered to the Registrar of Companies and those for 2015 will be delivered following the Company's annual general meeting. The auditor has reported on those accounts; their report was unqualified, did not draw attention to any matters by way of emphasis and did not contain statements under s498(2) or (3) of Companies Act 2006 or equivalent preceding legislation. The financial statements for the year ended 31 March 2015 have been prepared on the historical cost basis, except for the revaluation of properties, investments held for trading and derivatives. The financial statements have also been prepared in accordance with International Financial Reporting Standards (IFRSs) as adopted by the European Union and therefore comply with Article 4 of the EU IAS Regulation. While the financial information included in this preliminary announcement has been prepared in accordance with the recognition and measurement criteria of International Financial Reporting Standards (IFRSs), this announcement does not itself contain sufficient information to comply with IFRSs. The Company expects to publish full financial statements that comply with IFRSs in June 2015. In the current financial year the Group has adopted IFRS 10 'Consolidated financial statements', IFRS 11 'Joint arrangements', IFRS 12 'Disclosures of interests in other entities' and amendments to IAS 32 'Financial Instruments: Presentation', IAS 36 'Impairment of assets' and IAS 39 'Financial Instruments: Recognition and measurement'. The Group undertook an assessment of the treatment of its subsidiaries, joint ventures and interests in other entities prior to the adoption of IFRS 10, 11 and 12 and concluded that no changes in relation to the presentation of these interests was required. The adoption of these standards has not had a material impact on the Group and otherwise the accounting policies used are consistent with those contained in the Group's last Annual Report and accounts for the year ended 31 March 2014. Standards and interpretations issued but not effective for the current accounting period were: - IAS 19 (amended) - Employee benefits - Annual Improvements to IFRSs 2010-2012 cycle - Annual Improvements to IFRSs 2011-2013 cycle - IAS 16 (amended) - Property, plant and equipment - IAS 38 (amended) - Intangible assets - IAS 27 (amended) - Separate financial statements - IFRS 10 (amended) - Consolidated financial statements - IFRS 11 (amended) - Joint arrangements - IFRS 14 - Regulatory deferral accounts - Annual Improvements to IFRSs 2012-2014 cycle - IFRS 15 - Revenue from contracts with customers - IFRS 9 - Financial Instruments; The Directors do not expect that the adoption of the standards listed above will have a material impact on the financial statements of the Group in future periods except as follows: - IFRS 9 will impact both the measurement and disclosures of financial instruments and is effective for the Group's year ending 31 March 2019. The Group has not yet completed its evaluation of the effect of the adoption. - IFRS 15 does not apply to gross rental income, but does apply to service charge income, other fees and trading property disposals and is effective for the Group's year ending 31 March 2019. The Group does not expect adoption of IFRS 15 to have a material impact on the measurement of revenue recognition, but additional disclosures will be required with regards to the above sources of income. The financial statements have been prepared on the going concern basis as stated in the Directors' responsibility statement. Accounting judgements and estimates In applying the Group's accounting policies, the Directors are required to make judgements and estimates that affect the financial statements. Significant areas of estimation are: Valuation of properties and investments held for trading: The Group uses external professional valuers to determine the relevant amounts. The primary source of evidence for property valuations should be recent, comparable market transactions on an arms-length basis. However, the valuation of the Group's property portfolio and investments held for trading are inherently subjective, as they are made on the basis of assumptions made by the valuers which may not prove to be accurate. Other less significant areas of estimation include the valuation of fixed rate debt and interest rate derivatives, the determination of share-based payment expense, and the actuarial assumptions used in calculating the Group's retirement benefit obligations. The key areas of accounting judgement are: REIT status: British Land is a Real Estate Investment Trust (REIT) and does not pay tax on its property income or gains on property sales, provided that at least 90% of the Group's property income is distributed as a dividend to shareholders, which becomes taxable in their hands. In addition, the Group has to meet certain conditions such as ensuring the property rental business represents more than 75% of total profits and assets. Any potential or proposed changes to the REIT legislation are monitored and discussed with HMRC. It is Management's intention that the Group will continue as a REIT for the foreseeable future. Accounting for joint ventures and funds: In accordance with IFRS 10 'Consolidated financial statements', IFRS 11 'Joint arrangements' and IFRS 12 'Disclosures of interests in other entities', an assessment is required to determine the degree of control or influence the Group exercises and the form of any control to ensure that the financial statement treatment is appropriate. Interest in the Group's joint ventures is commonly driven by the terms of the partnership agreements which ensure that control is shared between the partners. These are accounted for under the equity method, whereby the consolidated balance sheet incorporates the Group's share of the net assets of its joint ventures and associates. The consolidated income statement incorporates the Group's share of joint venture and associate profits after tax upon elimination of upstream transactions. Accounting for transactions: Property transactions are complex in nature and can be material to the financial statements. Assessment is required to determine the most appropriate accounting treatment of assets acquired and of potential contractual arrangements in the legal documents for both acquisitions and disposals. Management consider each transaction separately and, when considered appropriate, seek independent accounting advice. Examples of such transactions completed in the year include the acquisition of Speke Unit Trust, Tesco BL Holdings Limited and TBL Property Partnership which were accounted for as business combinations (see note 18). 2. Performance measures 2015 2014 Earnings per share Earnings Pence per share Earnings Pence per share £m £m Underlying pre-tax profit attributable to shareholders 313 297 Tax charge relating to underlying profit - (2) Underlying earnings 313 30.6 295 29.4 Dilution due to convertible bond - (1.1) - - EPRA earnings per share (diluted) 29.5 29.4 Remove dilution due to share options and convertible bond 1.3 0.1 EPRA earnings per share (basic) 30.8 29.5 Profit for the period after taxation (IFRS) 1,710 167.3 1,106 110.2 The European Public Real Estate Association (EPRA) has issued Best Practices Recommendations, the latest update of which was issued in January 2014, which give guidelines for performance measures. EPRA earnings is the profit after tax excluding investment and development property revaluations and gains or losses on disposals, changes in the fair value of financial instruments and associated close-out costs and their related taxation. A summary of the EPRA Performance Measures is provided in Table B within the Supplementary Disclosures. The EPRA earnings per share (diluted) also takes into account dilution due to the convertible bond issued on 10 September 2012. The Company's share price reached the conversion price of the convertible bond for the first time in the year to 31 March 2015 and therefore was dilutive for the first time in the year. Underlying earnings consists of the EPRA earnings (diluted) measure, excluding the dilutive impact of the convertible bond. The weighted average number of shares in issue for the year was: basic: 1,016m (2014: 999m); diluted for the effect of share options: 1,022m (2014: 1,004m); and the convertible bond: 1,080m (2014: 1,004m). Basic undiluted earnings per share for the year, calculated using profit for the year after taxation of £1,710m (2014: £1,106m), was 168.3p (2014: 110.7p). 31 March 31 March Net asset value (NAV) (diluted) 2015 2014 £m £m Balance sheet net assets (IFRS) 8,565 7,117 Less non-controlling interests (333) (371) Deferred tax arising on revaluation movements 13 6 Mark-to-market on effective cash flow hedges and related debt adjustments 257 173 Surplus on trading properties 96 63 Dilution effect of share options 37 39 Convertible bond adjustment 400 - EPRA NAV 9,035 7,027 EPRA NAV per share 829 p 688 p The EPRA NAV per share excludes the mark-to-market on effective cash flow hedges and related debt adjustments, and the convertible bond, deferred taxation on revaluations, and includes the surplus on trading properties and is calculated on a fully diluted basis. The EPRA NAV per share calculation also takes into account dilution for the convertible bond issued on 10 September 2012. During the year ended 31 March 2015, the Company's share price reached the conversion price of the convertible bond for the first time and therefore it was dilutive at the year end. At 31 March 2015, the number of shares in issues was: basic: 1,020m (2014: 1,008m); diluted for the effect of share options and the convertible bond: 1,090m (2014: 1,021m). Total accounting return per share for the year ended 31 March 2015 of 24.5% includes dividends paid of 27.3p (see note 16) in addition to the increase in EPRA NAV of 141p. Total accounting return per share for the year ended 31 March 2014 was 20.0%. 3. Gross and net rental and related income 2015 2014 £m £m Rent receivable 369 310 Spreading of tenant incentives and guaranteed rent increases 26 20 Surrender premia 4 4 Gross rental income 399 334 Service charge income 65 50 Gross rental and related income 464 384 Service charge expenses (65) (50) Property operating expenses (24) (21) Net rental and related income 375 313 The cash element of net rental income recognised during the year ended 31 March 2015 from properties which were not subject to a security interest was £182m (2014: £189m). Property operating expenses relating to investment properties that did not generate any rental income were £2m (2014: £1m). Contingent rents of £3m (2014: £1m) were recognised in the year. 4. Fees and other income 2015 2014 £m £m Management and performance fees (from joint ventures and funds) 7 10 Other fees and commissions 5 5 12 15 5. Net valuation movements on property and investments (including results on disposals) 2015 2014 £m £m Consolidated income statement Revaluation of properties 884 580 Result on property and investment disposals (excluding trading property disposals) 20 17 Result on trading property disposals (see below) 6 14 Revaluation of investments - 4 910 615 Valuation movements of joint ventures and funds accounted for using the equity method 595 258 1,505 873 Consolidated statement of comprehensive income Revaluation of owner occupied properties 10 - Total comprehensive income 1,515 873 Result on trading property disposals Sale proceeds 51 109 Cost of sales (45) (95) Result on trading property disposals 6 14 6. Net financing costs 2015 2014 £m £m Interest payable on: Bank loans and overdrafts 36 29 Other loans 88 77 Obligations under finance leases 2 1 126 107 Development interest capitalised (14) (17) 112 90 Interest receivable on: Deposits, securities and liquid investments (2) (3) Loans to joint ventures (5) (6) (7) (9) Net financing costs - underlying 105 81 Capital and other: Valuation movements on translation of foreign currency debt 11 (9) Hedging reserve recycling (11) 9 Valuation movements on fair value debt 104 (62) Valuation movements on fair value derivatives (108) 62 Net capital movement on convertible bond 35 50 Recycling of fair value movement on close-out of derivatives 12 10 Capital financing costs 2 - Valuation movement on translation of foreign currency net assets 1 (3) Fair value movement on non-hedge accounted derivatives 1 - Net financing costs - capital 47 57 Net financing costs 152 138 Total financing income (7) (12) Total financing charges 159 150 Net financing costs 152 138 Interest payable on unsecured bank loans and related interest rate derivatives was £24m (2014: £27m). Interest on development expenditure is capitalised at the Group's weighted average interest rate of 3.3% (2014: 3.8%). The weighted average interest rate on a proportionately consolidated basis at 31 March 2015 was 3.8% (2014: 4.1%). 7. Taxation 2015 2014 £m £m Taxation expense (income) Current tax: UK corporation tax: 21% (2014: 23%) 1 2 1 2 Adjustments in respect of prior years - (5) Total current taxation expense (income) 1 (3) Deferred tax on revaluations and derivatives 23 (3) Group total taxation net 24 (6) Attributable to joint ventures and funds (2) 5 Total taxation expense (income) 22 (1) Tax reconciliation Profit on ordinary activities before taxation 1,789 1,105 Less: profit attributable to joint ventures and funds (726) (382) Group profit on ordinary activities before taxation 1,063 723 Tax on profit on ordinary activities at UK corporation tax rate of 21% (2014: 23%) 223 166 Effects of: REIT exempt income and gains (232) (160) Tax losses 10 (4) Deferred tax on revaluations and derivatives 23 - Adjustments in respect of prior years - (8) Group total taxation expense (income) 24 (6) A current taxation expense of £2m (2014: £5m) and a deferred taxation income of £4m (2014: £nil) arose on profits attributable to joint ventures and funds. Taxation expense attributable to underlying profits for the year ended 31 March 2015 was £nil (2014: £2m). The underlying taxation rate for the year ended 31 March 2015 was nil% (2014: 0.7%). Corporation taxation payable at year ended 31 March 2015 was £9m (2014: £8m) as shown on the balance sheet. 8. Property Property reconciliation 12 months to 31 March 2015 Investment Investment and development properties UK Retail Offices & Residential Developments Trading Properties Owner-occupied Total Level 3 Level 3 Level 3 Level 3 Level 3 £m £m £m £m £m £m £m Carrying value at 1 April 2014 4,461 2,550 261 7,272 271 47 7,590 Additions: - property purchases 147 - - 147 - - 147 - acquisition of subsidiaries 1,000 - - 1,000 - - 1,000 - development expenditure 5 11 52 68 46 - 114 - capitalised interest - - - - 8 - 8 - capital expenditure on asset management initiatives 41 1 - 42 - - 42 1,193 12 52 1,257 54 - 1,311 Depreciation - - - - - (1) (1) Disposals (219) (102) (12) (333) (45) - (378) Reclassifications - (4) 6 2 (6) 4 - Revaluations included in income statement 390 423 71 884 - - 884 Revaluation included in SOCIE - - - - - 10 10 Movement in tenant incentives and contracted rent uplift balances 8 23 7 38 - - 38 Carrying value at 31 March 2015 5,833 2,902 385 9,120 274 60 9,454 Head lease liabilities (note 13) (41) Surplus on trading properties 96 Total Group property portfolio valuation at 31 March 2015 9,509 Non-controlling interests (441) Total Group property portfolio valuation at 31 March 2015 attributable to shareholders 9,068 The different valuation method levels are defined below: Level 1: Quoted prices (unadjusted) in active markets for identical assets or liabilities. Level 2: Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly (i.e. as prices) or indirectly (i.e. derived from prices). Level 3: Inputs for the asset or liability that are not based on observable market data (unobservable inputs). These levels are specified in accordance with IFRS 13 'Fair Value Measurement'. Property valuations are inherently subjective as they are made on the basis of assumptions made by the valuer which may not prove to be accurate. For these reasons, and consistent with EPRA's guidance, we have classified the valuations of our property portfolio as Level 3 as defined by IFRS 13. The inputs to the valuations are defined as 'unobservable' by IFRS 13 and these are analysed in a table on the following page. The Group's policy is to recognise transfers between fair value hierarchy levels as of the date of the event or change in circumstances that caused the transfer. There have been no transfers during the period. At 31 March 2015, the Group book value of properties of £9,509m (2014: £7,616m) comprises freeholds of £6,098m (2014: £4,855m); virtual freeholds of £811m (2014: £695m); and long leaseholds of £2,600m (2014: £2,066m). The historical cost of properties was £6,582m (2014: £5,574m). The property valuation does not include any investment properties held under operating leases (2014: £nil). Properties valued at £2,479m (2014: £1,741m) were subject to a security interest and other properties of non-recourse companies amounted to £1,365m (2014: £1,066m). Included within the property valuation is £102m (2014: £100m) in respect of accrued contracted rental uplift income, against which the Group holds a provision of £5m (2014: £5m). The balance arises through the IFRS treatment of leases containing such arrangements, which requires the recognition of rental income on a straight-line basis over the lease term, with the difference between this and the cash receipt changing the carrying value of the property against which revaluations are measured. Cumulative interest capitalised against investment, development and trading properties amounts to £81m (2014: £73m). Valuation The Group's total property portfolio was valued by independent external valuers on the basis of fair value, in accordance with the RICS Valuation - Professional Standards 2014, ninth edition, published by The Royal Institution of Chartered Surveyors. The information provided to the valuers, and the assumptions and valuations models used by the valuers are reviewed by the property portfolio team, the Head of Offices, the Head of Retail and the Chief Financial Officer. The valuers meet with the external auditors and also present directly to the Audit Committee at the interim and year end review of results. A breakdown of valuations split between the Group and its share of joint ventures and funds is shown below: 2015 2014 Group Joint ventures and funds Total Group Joint ventures and funds Total £m £m £m £m £m £m Knight Frank LLP 6,795 3,313 10,108 6,036 2,903 8,939 CBRE 2,714 1,401 4,115 1,580 2,131 3,711 Total property portfolio valuation 9,509 4,714 14,223 7,616 5,034 12,650 Non-controlling interests' share of property (441) (105) (546) (422) (188) (610) Total property portfolio valuation attributable to shareholders 9,068 4,609 13,677 7,194 4,846 12,040 Information about fair value measurements using unobservable inputs (Level 3) ERV per sq ft Equivalent Yield Fair value at 31 March 2015 Valuation technique Min Max Weighted average Min Max Weighted average Investment £m £ £ £ % % % UK Retail 5,956 Investment methodology 2 75 19 1.4 13.6 3.8 Offices & Residential * ** 2,958 4 81 49 1.3 8.9 4.2 Developments ** 225 Residual methodology 54 101 65 3.8 5.0 4.5 Total 9,139 Trading properties and surplus on trading properties 370 Total Group property portfolio valuation 9,509 * Includes owner-occupied ** Includes Residential with an average capital value per sq ft of £981, including developments at end value and mixed use All other factors being equal, a higher equivalent yield or discount rate would lead to a decrease in the valuation of an asset, and an increase in the current or estimated future rental stream would have the effect of increasing the capital value, and vice versa. However, there are interrelationships between the unobservable inputs which are partially determined by market conditions, which would impact on these changes. 9. Joint ventures and funds Summary movement for the year of the investments in joint ventures and funds Joint ventures Funds Total Equity Loans Total £m £m £m £m £m £m At 1 April 2014 2,274 438 2,712 2,278 434 2,712 Additions 79 7 86 54 32 86 Disposals (318) (151) (469) (306) (163) (469) Share of profit after taxation 661 65 726 726 - 726 Distributions and dividends: Capital - (16) (16) (16) - (16) Revenue (104) (21) (125) (125) - (125) Hedging and exchange movements (6) (7) (13) (13) - (13) At 31 March 2015 2,586 315 2,901 2,598 303 2,901 PREF, a fund owning a portfolio of retail property in Europe (in which British Land has a net investment of £32m), has its properties externally valued by CBRE. CBRE have included a market uncertainty clause in the valuation report of the Portuguese properties, due to a lack of transactional evidence and uncertainty over the economic situation in those markets. In 2015 PREF repaid early all outstanding bank loans following the sale of its Spanish assets. In December 2014 a one-year extension of the fund to 26 March 2016 was approved. As a result, the fund is in the process of an orderly disposal of its assets and the underlying financial statements of PREF for the year ended 31 December 2014 were prepared on a break up basis. At 31 March 2015 the investment in joint ventures included within the total investment in joint ventures and funds was £2,869m (2014: £2,658m). The summarised income statements and balance sheets below and on the following page show 100% of the results, assets and liabilities of joint ventures and funds. Where necessary these have been restated to the Group's accounting policies and exclude all balances which are eliminated on consolidation. In the prior year the detailed breakdown contained the Group's share of the results in joint ventures and funds. The change in presentation is due to the adoption of IFRS12 'Disclosures of interests in other entities' in the year. Joint ventures' and funds' summary financial statements 12 months to 31 March 2015 Broadgate MSC Property BL Sainsbury Tesco Joint REIT Intermediate Superstores Ventures 1 Ltd Holdings Ltd Ltd Euro Bluebell LLP Norges Bank Investment Partners (GIC) Management J Sainsbury plc Tesco PLC Property sector City Offices Shopping Centres Superstores Superstores Broadgate Meadowhall Group share 50% 50% 50% 50% Summarised income statements £m £m £m £m Gross rental and related income 214 94 60 97 Net rental and related income 164 75 60 92 Other underlying expenditure (1) - - (1) Net interest payable (88) (38) (28) (50) Underlying profit before taxation 75 37 32 41 Surplus on revaluation 664 161 14 17 Other non-underlying (expenditure) income - - (3) (4) Profit on ordinary activities before taxation 739 198 43 54 Deferred taxation - - - 9 Profit on ordinary activities after taxation 739 198 43 63 Other comprehensive (expenditure) income (21) (7) 4 6 Total comprehensive income 718 191 47 69 British Land share of total comprehensive income 359 96 24 35 British Land share of distributions payable 15 2 42 37 Summarised balance sheets £m £m £m £m Investment and trading properties 4,209 1,719 1,039 363 Current assets 5 5 3 - Cash and deposits 272 32 25 6 Gross assets 4,486 1,756 1,067 369 Current liabilities (82) (31) (26) (5) Bank and securitised debt (2,142) (721) (478) (184) Other non-current liabilities (64) (24) - (20) Gross liabilities (2,288) (776) (504) (209) Net external assets 2,198 980 563 160 British Land share of net assets 1,099 490 282 80 1 Tesco joint ventures include BLT Holdings (2010) Limited, as at 31 March 2015. In the prior year, this also included Tesco British Land Property Partnership (TBL), Tesco BL Holdings Limited (TBLH), Shopping Centres Limited and the Tesco Aqua Limited Partnership. During the year, the Shopping Centres venture was acquired by TBLH with no net impact on the Group accounts. On 19 March 2015, TBLH and TBL became subsidiaries of the Group (note 18). The income statement results for these ventures for the period up to and including 19 March 2015 are included within the table above. Thereafter the results of TBLH and TBL are included within the Group's income statement. Also on 19 March 2015 the Group disposed of its interest in Tesco Aqua Limited Partnership to Tesco PLC. The income statement results for this venture for the period up to and including 19 March 2015 are shown within this table. 2 USS joint ventures include the Eden Walk Shopping Centre Limited Partnership and the Fareham Property Partnership. 3 Hercules Unit Trust joint ventures and sub-funds includes 50% of the results of Deepdale Co-Ownership Trust, Gibraltar Limited Partnership and Valentine Co-Ownership Trust and 41.25% of Birstall Co-Ownership Trust. The balance sheet shows 50% of the assets of these joint ventures and sub-funds. On 23 February 2015 Speke Unit Trust (Speke) became a subsidiary of the Group (note 18). The income statement results for Speke for the period up to and including 23 February 2015 are included within these numbers. Thereafter, Speke's results are included within the Group's income statement. 4 Included in the column headed 'Other joint ventures and funds' are contributions from the following: BL Goodman Limited Partnership, BL Gazeley Limited, The Aldgate Place Limited Partnership, Bluebutton Property Management UK Limited, BL Residential Limited Partnership, City of London Office Unit Trust and Pillar Retail Europark Fund (PREF). The Group's ownership share of PREF is 65%, however as the group is not able to exercise control over significant decisions of the fund, the Group equity accounts for its interest in PREF. The Southgate Limited Partnership USS Leadenhall Hercules Unit Trust Other TOTAL TOTAL Joint Holding Co joint ventures joint ventures Group share Ventures 2 (Jersey) Ltd and sub-funds 3 and funds 4 2015 2015 Universities Superannuation Scheme Oxford Aviva Investors Group PLC Properties Shopping Centres Shopping Centres City Offices Retail Leadenhall Parks 50% 50% 50% Various £m £m £m £m £m £m £m 14 11 15 53 15 573 289 13 8 6 47 12 477 240 (1) - - - (3) (6) (4) (1) - - (5) (2) (212) (107) 11 8 6 42 7 259 129 26 25 201 63 - 1,171 589 - - - (1) 16 8 6 37 33 207 104 23 1,438 724 - - - - (2) 7 2 37 33 207 104 21 1,445 726 - - - (1) (10) (29) (13) 37 33 207 103 11 1,416 713 19 17 104 52 7 713 4 4 - 37 - 141 £m £m £m £m £m £m £m 262 235 770 706 140 9,443 4,719 2 - 2 2 23 42 25 2 9 4 11 21 382 192 266 244 776 719 184 9,867 4,936 (4) (4) (4) (7) (65) (228) (119) - - - (127) - (3,652) (1,827) (28) - - (1) (44) (181) (89) (32) (4) (4) (135) (109) (4,061) (2,035) 234 240 772 584 75 5,806 2,901 117 120 386 283 44 2,901 These financial statements include the results and financial position of the Group's interest in the Tesco British Land Property Partnership and the Tesco Aqua Limited Partnership (refer to footnote 1), the Scottish Retail Property Limited Partnership, the Fareham Property Partnership, the Aldgate Place Limited Partnership, the BL Goodman Limited Partnership, Auchinlea Partnership, the Gibraltar Limited Partnership and the BL Residential Limited Partnership. Accordingly, advantage has been taken of the exemptions provided by Regulation 7 of the Partnerships and Unlimited Companies (Accounts) Regulations 1993, not to attach the partnership accounts to these financial statements. The borrowings of joint ventures and funds and their subsidiaries are non-recourse to the Group. All joint ventures are incorporated in the United Kingdom, with the exception of Broadgate REIT Limited, the Eden Walk Shopping Centre Unit Trust and Leadenhall Holding Co (Jersey) Limited which are incorporated in Jersey. Of the funds, the Hercules Unit Trust (HUT) joint ventures and sub-funds are incorporated in Jersey and PREF in Luxembourg. The commitments and contingent liabilities in respect of joint ventures are detailed in note 17. Operating cash flows of joint ventures and funds (Group share) 2015 2014 £m £m Rental income received from tenants 234 274 Fees and other income received 1 - Operating expenses paid to suppliers and employees (26) (33) Cash generated from operations 209 241 Interest paid (114) (135) Interest received 2 1 UK corporation tax paid (7) (6) Foreign tax paid (2) (3) Cash inflow from operating activities 88 98 Cash inflow from operating activities deployed as: Surplus cash retained within joint ventures and funds 15 35 Revenue distributions per consolidated statement of cash flows 73 63 Revenue distributions split between controlling and non-controlling interests Attributable to non-controlling interests 7 - Attributable to shareholders of the Company 66 63 10. Other investments 2015 2014 Investment held for trading Loans, receivables and other Total Investment held for trading Loans, receivables and other Total £m £m £m £m £m £m At 1 April 2014 92 170 262 - 76 76 Additions - 113 113 83 104 187 Disposals - (2) (2) - (10) (10) Revaluation 7 - 7 9 - 9 Depreciation - (1) (1) - - - At 31 March 2015 99 280 379 92 170 262 The investment held for trading comprises interests as a trust beneficiary. The trusts' assets comprise freehold reversions in a pool of commercial properties, comprising Sainsbury's superstores. The investment has been categorised as Level 3 in the fair value hierarchy (see note 8). Fair value of the interest has been determined by the Directors, supported by an external valuation from CBRE. The superstore assets are subject to the same assumption ranges and sensitivities disclosed in note 8. Included within the balance as at 31 March 2015 is £243m (2014: £145m) in relation to a loan to the Broadgate joint venture, which is carried at amortised cost. 11. Debtors 2015 2014 £m £m Trade and other debtors 16 35 Prepayments and accrued income 4 6 20 41 Included within this balance is deferred consideration of £1m (2014: £1m) arising on the sale of investment properties for which the timing of the receipt is contingent and therefore may fall due after one year. Trade and other debtors are shown after deducting a provision for bad and doubtful debts of £16m (2014: £15m). The charge to the income statement was £1m (2014: £nil). The Directors consider that the carrying amount of trade and other debtors is approximate to their fair value. There is no concentration of credit risk with respect to trade debtors as the Group has a large number of customers who are paying their rent in advance. 12. Creditors 2015 2014 £m £m Trade creditors 61 85 Amounts owed to joint ventures - 4 Other taxation and social security 31 21 Accruals and deferred income 169 153 261 263 Trade creditors are interest-free and have settlement dates within one year. The Directors consider that the carrying amount of trade and other creditors is approximate to their fair value. 13. Other non-current liabilities 2015 2014 £m £m Other creditors 32 - Head leases 41 32 Net pension liabilities 6 - 79 32 14. Deferred tax liabilities Deferred tax is calculated on temporary differences under the liability method using a tax rate of 20% (2013/14: 20%). The movement on deferred tax is as shown below: 1 April Expensed to Credited to 31 March 2014 income equity 2015 £m £m £m Property and investment revaluations - 5 - 5 Other timing differences 4 18 (15) 7 4 23 (15) 12 Under the REIT regime development properties which are sold within three years of completion do not benefit from tax exemption. At 31 March 2015 the value of such properties is £1,008m (2014: £455m) and if these properties were to be sold and tax exemption was not available the tax arising would be £66m (2014: £34m). Deferred tax assets of £38m (2014: £39m) arising on losses from previous years have not been recognised in the financial year. 15. Net debt 2015 2014 Footnote £m £m Secured on the assets of the Group 9.125% First Mortgage Debenture Stock 2020 1.1 35 36 6.125% First Mortgage Debenture Stock 2014 1.1 - 44 5.264% First Mortgage Debenture Bonds 2035 355 344 5.0055% First Mortgage Amortising Debentures 2035 99 100 5.357% First Mortgage Debenture Bonds 2028 344 327 6.75% First Mortgage Debenture Bonds 2020 176 176 Bank loans 1.2; 1.3 963 523 Loan notes 2 2 1,974 1,552 Unsecured 5.50% Senior Notes 2027 98 98 6.30% Senior US Dollar Notes 2015 2 104 92 3.895% Senior US Dollar Notes 2018 3 28 25 4.635% Senior US Dollar Notes 2021 3 158 136 4.766% Senior US Dollar Notes 2023 3 99 83 5.003% Senior US Dollar Notes 2026 3 64 52 3.81% Senior Notes 2026 111 99 3.97% Senior Notes 2026 114 101 1.5% Convertible Bond 2017 493 458 Bank loans and overdrafts 706 602 1,975 1,746 Gross debt 4 3,949 3,298 Interest rate derivatives liabilities 126 57 Interest rate derivatives assets (139) (32) 3,936 3,323 Cash and short-term deposits 5,6 (108) (142) Total net debt 3,828 3,181 Net debt attributable to non-controlling interests (190) (204) Net debt attributable to shareholders of the Company 3,638 2,977 1 These are non-recourse borrowings with no recourse for repayment to other companies or assets in the Group: 2015 2014 £m £m 1.1 BLD Property Holdings Ltd 35 80 1.2 Hercules Unit Trust 645 523 1.3 TBL Properties Limited and subsidiaries 318 - 998 603 2 Principal and interest on this borrowing was fully hedged into Sterling at the time of issue. 3 Principal and interest on this borrowing was fully hedged into Sterling at a floating rate at the time of issue. The principal amount of gross debt at 31 March 2015 was £3,717m (2014: £3,209m). Included in this is the principal amount of secured borrowings and other borrowings of non-recourse companies of £1,906m of which the borrowings of the partly-owned subsidiary, Hercules Unit Trust, not beneficially owned by the Group is £200m. 4 5 Included within cash and short-term deposits is the cash and short-term deposits of Hercules Unit Trust, of which £10m is the proportion not beneficially owned by the Group. 6 Cash and deposits not subject to a security interest amount to £84m (2014: £93m). Maturity analysis of net debt 2015 2014 £m £m Repayable: within one year and on demand 102 495 between: one and two years 71 90 two and five years 1,707 1,084 five and ten years 943 465 ten and fifteen years 747 783 fifteen and twenty years 6 6 twenty and twenty five years 373 375 3,847 2,803 Gross debt 3,949 3,298 Interest rate and currency derivatives (13) 25 Cash and short-term deposits (108) (142) Net debt 3,828 3,181 British Land Unsecured Financial Covenants The two financial covenants applicable to the Group unsecured debt including convertible bonds are: Net Borrowings not to exceed 175% of Adjusted Capital and Reserves At 31 March 2015, the ratio was 38%: Net borrowings were £3,419m, being the principal amount of gross debt of £3,717m, less the relevant proportion of borrowings of the partly-owned subsidiary of £200m, plus amounts owed to joint ventures of £nil (see note 12), less the beneficially owned cash and deposits of £98m (being £108m less the relevant proportion of cash and deposits of the partly-owned subsidiary of £10m); and Adjusted Capital and Reserves were £8,898m, being share capital and reserves of £8,565m (see balance sheet), adjusted for £13m of deferred tax (see note 2), £96m trading property surpluses (see note 8), £300m exceptional refinancing charges (see below) and £257m fair value adjustments on financial assets and liabilities (being £164m fair value debt adjustments and mark-to-market on interest derivatives and £93m adjustment on the convertible bond) less £333m reserves attributable to non-controlling interests. Net Unsecured Borrowings not to exceed 70% of Unencumbered Assets At 31 March 2015 the ratio is 28%: Net Unsecured Borrowings were £1,734m, being the principal amount of gross debt of £3,717m, plus amounts owed to joint ventures of £nil (see note 12), less cash and deposits not subject to a security interest of £77m (being £84m less the relevant proportion of cash and deposits of the partly-owned subsidiary of £7m) less the principal amount of secured and non-recourse borrowings of £1,906m; and Unencumbered assets were £6,076m, being properties of £9,509m (see note 8) plus investments in joint ventures and funds of £2,901m (see balance sheet) and other investments of £379m (see balance sheet) less investments in joint ventures of £2,869m (see note 9) and encumbered assets of £3,844m (see note 8). In calculating Adjusted Capital and Reserves for the purpose of the unsecured debt financial covenants, there is an adjustment of £300m to reflect the cumulative net amortised exceptional items relating to the refinancings in the years ended 31 March 2005, 2006 and 2007. Convertible Bond On 10 September 2012 British Land (Jersey) Limited (the Issuer), a wholly owned subsidiary of the Group, issued £400 million 1.5% guaranteed convertible bonds due 2017 (the bonds) at par. The Company has unconditionally and irrevocably guaranteed the due and punctual performance by the Issuer of all of its obligations (including payments) in respect of the bonds and the obligations of the Company, as guarantor, constitute direct, unsubordinated unconditional and unsecured obligations of the Company. Subject to their terms, the bonds are convertible into preference shares of the Issuer which are automatically transferred to the Company in exchange for ordinary shares in the Company or, at the Company's election, any combination of ordinary shares and cash. The bonds can be converted from 22 October 2012 up to and including 24 September 2015 if the share price has traded at a level exceeding 130% of the exchange price for a specified period and from 25 September 2015 to (but excluding) the 20th dealing day before 10 September 2017 (the maturity date) at any time. The initial exchange price was 693.07 pence per ordinary share. Under the terms of the bonds, the exchange price is adjusted on the happening of certain events including the payment of dividends by the Company above 26.4 pence in any year. On or after 25 September 2015, the bonds may be redeemed at par at the Company's option subject to the Company's ordinary shares having traded at a price exceeding 130% of the exchange price for a specified period, or at any time once 85% by nominal value of the bonds originally issued have been converted, redeemed, or purchased and cancelled. If not previously converted, redeemed or purchased and cancelled, the bonds will be redeemed at par on the maturity date. Reconciliation of movement in Group Net Debt to Cash Flow Statement 2014 Cash flow Non cash 2015 £m £m £m £m Per Cash Flow Statement: Cash and short-term deposits (142) 34 - (108) Cash and cash equivalents (142) 34 - (108) Term debt (excluding overdrafts) 3,298 122 529 3,949 Fair value of interest rate derivatives 25 (12) (26) (13) Net debt 3,181 144 503 3,828 The Group Loan to Value (LTV) ratio at 31 March 2015 is 28%, being the principal value of gross debt of £3,717m, less the relevant portion of borrowings of the partly-owned subsidiary of £200m less cash and short-term deposits of £98m (being £108m less the relevant proportion of cash and deposits of the partly-owned subsidiary of £10m), divided by total Group property of £9,509m (see note 8) plus investments in joint ventures and funds of £2,901m (see balance sheet) and other investments of £379m (see balance sheet) less the relevant portion of property and investments of the partly-owned subsidiary of £528m. Maturity of committed undrawn borrowing facilities 2015 2014 £m £m Maturity date: Over five years - 160 Between four and five years 930 310 Between three and four years - 140 Total facilities available for more than three years 930 610 Between two and three years 61 942 Between one and two years 235 - Within one year 10 410 Total 1,236 1,962 The above facilities are comprised of British Land undrawn facilities of £1,185m, plus undrawn facilities of Hercules Unit Trust totalling £51m. Comparison of market values and book values 2015 Level Market Book Value Value Difference £m £m £m Debentures and unsecured bonds 2 1,925 1,785 140 Convertible bond 1 493 493 - Bank debt and other floating rate debt 2 1,691 1,671 20 Cash and short-term deposits 1 (108) (108) - 4,001 3,841 160 Other financial (assets) liabilities: - interest rate derivative assets 2 (139) (139) - - interest rate derivative liabilities 2 126 126 - (13) (13) - Total 3,988 3,828 160 Short-term debtors and creditors have been excluded from the disclosures. The fair values of debt, debentures and the convertible bond have been established by obtaining quoted market prices from brokers. The bank debt and loan notes have been valued assuming they could be renegotiated at contracted margins. The derivatives have been valued by calculating the present value of expected future cash flows, using appropriate market discount rates, by an independent treasury advisor. Fair value hierarchy The table below analyses financial instruments carried at fair value, by the valuation method. The different levels are defined as follows: Level 1: Quoted prices (unadjusted) in active markets for identical assets or liabilities. Level 2: Inputs other than quoted prices included within level 1 that are observable for the asset or liability, either directly (i.e. as prices) or indirectly (i.e. derived from prices). Level 3: Inputs for the asset or liability that are not based on observable market data (unobservable inputs). 2015 Level 1 Level 2 Level 3 Total £m £m £m £m Interest rate and currency derivative assets - (139) - (139) Other investments - held for trading - - (99) (99) Assets - (139) (99) (238) Interest rate and currency derivative liabilities - 126 - 126 Convertible bond 493 - - 493 Liabilities 493 126 - 619 Total 493 (13) (99) 381 16. Dividend The fourth quarter dividend of 6.92 pence per share, totalling £71m (2014: 6.75 pence per share, totalling £68m) was approved by the Board on 13 May 2015 and is payable on 7 August 2015 to shareholders on the register at the close of business on 3 July 2015. The Board will announce the availability of the Scrip Dividend Alternative via the Regulatory News Service and on its website (www.britishland.com), no later than 4 business days before the ex-dividend date of 2 July 2015. The Board expects to announce the split between Property Income Distributions ('PID') and non-PID income at that time. Any Scrip Dividend Alternative will not be enhanced. PID dividends are paid, as required by REIT legislation, after deduction of withholding tax at the basic rate (currently 20%), where appropriate. Certain classes of shareholders may be able to elect to receive dividends gross. Please refer to our website (www.britishland.com) for details. Payment Date Dividend Pence per share 2015 £m 2014 £m Current year dividends 07.08.15 2015 4th interim 6.92 06.05.15 2015 3rd interim 6.92 13.02.15 2015 2nd interim 6.92 71 07.11.14 2015 1st interim 6.92 70 27.68 Prior year dividends 08.08.2014 2014 4th interim 6.75 * 68 02.05.2014 2014 3rd interim 6.75 * 68 14.02.2014 2014 2nd interim 6.75 68 08.11.2013 2014 1st interim 6.75 67 27.00 09.08.2013 2013 4th interim 6.60 * 65 10.05.2013 2013 3rd interim 6.60 * 66 Dividends in consolidated statement of changes in equity 277 266 Dividends settled in shares (49) (105) Dividends settled in cash 228 161 Timing difference relating to payment of withholding tax - (2) Dividends in cash flow statement 228 159 * Scrip alternative treated as non-PID for this dividend. 17. Contingent liabilities Group, joint ventures and funds The Group, joint ventures and funds have contingent liabilities in respect of legal claims, guarantees and warranties arising in the ordinary course of business. It is not anticipated that any material liabilities will arise from contingent liabilities. 18. Acquisition of subsidiaries (business combinations) Acquisition of Tesco BL Holdings Limited and TBL Property Partnership On 19 March 2015, the Group acquired the 50% interest in Tesco BL Holdings Limited (TBLH) and TBL Property Partnership (TBL) which were previously owned by Tesco PLC. This resulted in ownership of 100% of the entities. Management determined that the acquisition should be accounted for as a business combination in accordance with IFRS 3 'Business Combinations'. The fair value of the Group's 50% equity interest in TBLH and TBL held before the business combination amounted to £149m and £29m respectively. A gain of £5m was recognised as a result of re-measuring the equity interest in TBLH to fair value and a gain of £1m was recognised as a result of re-measuring the equity interest in TBL to fair value as part of the business combinations. The acquired subsidiaries have contributed net revenues of £1m and underlying profit of £1m to the Group for the period from the date of acquisition to 31 March 2015. If the acquisition had occurred on 1 April 2014, Group net revenue for 2015 would have increased by £37m, and underlying profit for 2015 would have increased by £12m. The purchase of TBLH and TBL was completed coterminously with the sale of the Group's interest in the Tesco Aqua Limited Partnership ('Aqua'). The consideration paid for TBLH and TBL was net of the sale consideration receivable for Aqua and the settlement of the Group's shareholder loan to Aqua. A reconciliation of the consideration is shown below: Attributed fair value TBLH TBL Total £m £m £m Investment Property 639 118 757 Other net current (liabilities) assets (11) 5 (6) Cash and cash equivalents 7 2 9 Loans (337) (61) (398) Fair value of acquired interest in net assets of subsidiary 298 64 362 Goodwill - - - Total purchase consideration 298 64 362 Less: Fair value of previously held interest (149) (29) (178) Consideration 149 35 184 Less: cash acquired (7) (2) (9) Net consideration 142 33 175 Represented by: Cash 102 Cash acquired (9) Settlement of Aqua shareholder loan 35 Disposal of interest in Aqua 47 Net Consideration 175 The acquired bank loans and overdrafts in TBLH and TBL have no recourse to other companies or assets in the Group. On 20 March 2015 the £60m secured facility acquired with TBL was repaid. Acquisition of Speke Unit Trust On 23 February 2015, the Group acquired an additional 37.5% of the units in the Speke Unit Trust, a unit trust registered in Jersey, which is engaged in property investment, resulting in cumulative ownership of 87.5% of the outstanding units and control of the underlying entity. Management determined that the acquisition of control should be accounted for as a business combination in accordance with IFRS 3 'Business Combinations' . The fair value of the Group's 50% equity interest in the Speke Unit Trust held before the business combination amounted to £122m. No gain or loss was recognised as a result of re-measuring the equity interest at fair value. The acquired subsidiary has contributed net revenues of £1m and underlying profit of £1m to the Group for the period from the date of acquisition to 31 March 2015. If the acquisition had occurred on 1 April 2014, Group net rents for 2015 would have increased by £15m, and underlying profit for 2015 would have increased by £7m. The purchase consideration disclosed above comprises cash and cash equivalents paid to the acquiree's previous owner of £93m for 37.5% of the units in the Speke Unit Trust. The non-controlling interest (12.5% ownership interest in Speke Unit Trust) recognised at the acquisition date was measured by reference to the identifiable net assets and amounted to £31m at the acquisition date. Attributed fair value Speke Unit Trust £m Investment Property 243 Cash and cash equivalents 3 Fair value of acquired interest in net assets of subsidiary 246 Goodwill - Total purchase consideration 246 Less: Fair value of previously held interest (122) Non-controlling interest (31) Consideration 93 Less: cash acquired (3) Net consideration 90 19. Share capital and reserves 2015 2014 Number of ordinary shares in issue at 1 April 1,019,766,481 997,691,488 Share issues 12,021,805 22,074,993 At 31 March 1,031,788,286 1,019,766,481 Of the issued 25p ordinary shares, 98,453 shares were held in the ESOP trust (2014: 169,990), 11,266,245 shares were held as treasury shares (2014: 11,266,245) and 1,020,423,588 shares were in free issue (2014: 1,008,330,246). No treasury shares were acquired by the ESOP trust during the year. All issued shares are fully paid. Hedging and translation reserve The hedging and translation reserve comprises the effective portion of the cumulative net change in the fair value of cash flow and foreign currency hedging instruments, as well as all foreign exchange differences arising from the translation of the financial statements of foreign operations. The foreign exchange differences also include the translation of the liabilities that hedge the Company's net investment in a foreign subsidiary. Revaluation reserve The revaluation reserve relates to owner-occupied properties and investments in joint ventures and funds. Merger reserve This comprises the premium on the share placing in March 2013. No share premium is recorded in the Company's financial statements, through the operation of the merger relief provisions of the Companies Act 2006. 20. Segment Information Operating segments The Group allocates resources to investment and asset management according to the sectors it expects to perform over the medium term. Its two principal sectors are currently Offices and Retail. The Office sector includes residential, as this is often incorporated into Office schemes, and Retail includes leisure, for a similar rationale. The relevant revenue, net rental income, operating result, assets and capital expenditure, being the measures of segment revenue, segment result and segment assets used by the management of the business, are set out below. Management reviews the performance of the business principally on a proportionally consolidated basis which includes the Group's share of joint ventures and funds on a line-by-line basis and excludes non-controlling interests in the Group's subsidiaries. Revenue is derived from the rental of buildings and the sale of trading properties. Operating result is the net of net rental income, fee income and administration expenses. No customer exceeded 10% of the Group's revenues in either year. Segment result Offices & residential Retail & leisure Other / unallocated Total 2015 2014 2015 2014 2015 2014 2015 2014 £m £m £m £m £m £m £m £m Revenue British Land Group 121 99 254 231 - - 375 330 Share of joint ventures and funds 89 84 146 168 8 15 243 267 Total 210 183 400 399 8 15 618 597 Net rental income British Land Group 112 91 239 218 - - 351 309 Share of joint ventures and funds 85 81 141 160 8 12 234 253 Total 197 172 380 378 8 12 585 562 Operating result British Land Group 101 80 224 214 (41) (42) 284 252 Share of joint ventures and funds 82 80 138 157 10 10 230 247 Total 183 160 362 371 (31) (32) 514 499 2015 2014 Reconciliation to underlying profit before taxation £m £m Operating result 514 499 Net financing costs (201) (202) Underlying profit before taxation 313 297 Reconciliation to profit before taxation Underlying profit before taxation 313 297 Capital and other 1,460 811 Underlying profit attributable to non-controlling interests 16 2 Total profit on ordinary activities before tax 1,789 1,110 Of the total revenues above, £8m (2013/14: £15m) was derived from outside the UK. Segment assets Offices & residential Retail & leisure Other / unallocated Total 2015 2014 2015 2014 2015 2014 2015 2014 £m £m £m £m £m £m £m £m Property assets British Land Group 3,550 3,082 5,518 4,113 - - 9,068 7,195 Share of funds and joint ventures 2,530 2,017 2,039 2,739 40 89 4,609 4,845 Total 6,080 5,099 7,557 6,852 40 89 13,677 12,040 Reconciliation to net assets 2015 2014 British Land Group £m £m Property assets 13,677 12,040 Other non-current assets 256 194 Non-current assets 13,933 12,234 Other net current liabilities (307) (304) Adjusted net debt (4,918) (4,890) Other non-current liabilities (73) (13) EPRA net assets (undiluted) 8,635 7,027 Convertible dilution 400 - EPRA net assets (diluted) 9,035 7,027 Non-controlling interest 333 371 EPRA adjustments (803) (281) Net assets 8,565 7,117 Supplementary Disclosures Table A: SUMMARY INCOME STATEMENT AND BALANCE SHEET Summary income statement based on proportional consolidation for the year ended 31 March 2015 The following pro forma information is unaudited and does not form part of the consolidated primary statements or the notes thereto. It presents the results of the Group, with its share of the results of joint ventures and funds included on a line by line and excluding non-controlling interest, i.e. proportional basis. The underlying profit before taxation and underlying profit after taxation are the same as presented in the consolidated income statement. Year ended 31 March 2015 Year ended 31 March 2014 Group Joint ventures Less non-controlling Proportionally Group Joint ventures Less non-controlling Proportionally and funds interests Consolidated and funds interests Consolidated £m £m £m £m £m £m £m £m Gross rental income 399 250 (31) 618 334 267 (4) 597 Property operating expenses (24) (10) 1 (33) (21) (14) - (35) Net rental income 375 240 (30) 585 313 253 (4) 562 Administrative expenses (82) (4) 1 (85) (72) (6) - (78) Fees and other income 12 - 2 14 15 - - 15 Ungeared Income Return 305 236 (27) 514 256 247 (4) 499 Net interest (105) (107) 11 (201) (81) (123) 2 (202) Underlying profit before taxation 200 129 (16) 313 175 124 (2) 297 Underlying tax - - - - (2) - - (2) Underlying profit after taxation 200 129 (16) 313 173 124 (2) 295 Underlying earnings per share - diluted basis 30.6 p 29.4p Valuation movement 1,505 873 Other capital and tax (net) 18 53 Capital and other 1,523 926 Total return 1,836 1,221 The underlying earnings per share is calculated on underlying profit before taxation of £313m, tax attributable to underlying profits of £nil and 1,022m shares on a diluted basis for the year ended 31 March 2015. *Includes other comprehensive income, movement in dilution of share options and the movement in items excluded for EPRA NAV. Summary balance sheet based on proportional consolidation as at 31 March 2015 The following pro forma information is unaudited and does not form part of the consolidated primary statements or the notes thereto. It presents the composition of the EPRA net assets of the Group, with its share of the net assets of the joint venture and fund assets and liabilities included on a line-by-line and excluding non-controlling interest, i.e. proportional basis, and assuming full dilution. Group Share of joint ventures & funds Less non-controlling interest Share options Deferred tax Mark-to-market on effective cash flow hedges and related debt adjustments Head leases Conver-tible bond adjust-ment Valuation surplus on trading properties EPRA Net assets 2015 EPRA Net assets 2014 £m £m £m £m £m £m £m £m £m £m £m Retail properties 5,986 2,149 (546) - - - (32) - - 7,557 6,852 Office properties 3,468 2,530 - - - - (14) - 96 6,080 5,099 Other properties - 40 - - - - - - - 40 89 Total properties 9,454 4,719 (546) - - - (46) - 96 13,677 12,040 Investments in joint 2,901 (2,901) - - - - - - - - - ventures and funds Other investments 379 (123) - - - - - - - 256 194 Other net (liabilities) assets (341) (140) 5 37 13 - 46 - - (380) (317) Net debt (3,828) (1,555) 208 - - 257 - - - (4,918) (4,890) Dilution due to convertible bond - - - - - - - 400 - 400 - Net assets 8,565 - (333) 37 13 257 - 400 96 9,035 7,027 EPRA NAV per share (note 2) 829p 688p EPRA Net Assets Movement Year ended Year ended 31 March 2015 31 March 2014 £m Pence per share £m Pence per share Opening EPRA NAV 7,027 688 5,967 596 Income return 313 31 295 29 Capital return 1,523 145 926 90 Dividend paid (228) (27) (161) (27) Dilution due to convertible bond 400 (8) - - Closing EPRA NAV 9,035 829 7,027 688 Table B: EPRA PERFORMANCE MEASURES EPRA Performance measures summary table 2015 2014 £m Pence per share £m Pence per share EPRA Earnings - basic 313 30.8 p 295 29.5 p - diluted 313 29.5 p 295 29.4 p EPRA NAV 9,035 829 p 7,027 688 p EPRA NNNAV 8,359 767 p 6,700 656 p EPRA Net Initial Yield 4.3 % 4.8 % EPRA 'topped-up' Net Initial Yield 4.8 % 5.3 % EPRA Vacancy Rate 2.9 % 5.2 % Calculation of EPRA earnings and EPRA earnings per share 2015 2014 £m £m Profit attributable to the shareholders of the Company 1,710 1,106 Exclude: Group - non-underlying current tax 1 (5) Group - deferred tax 23 (3) Joint ventures and funds - non-underlying current tax 2 5 Joint ventures and funds - deferred tax (4) - Group - net valuation movement (including result on disposals) (910) (615) Joint ventures and funds - net valuation movement (including result on disposals) (595) (258) Changes in fair value of financial instruments and associated close-out costs 47 57 Non-controlling interest in respect of the above 39 8 EPRA earnings 313 295 2015 2014 Number Number million million Weighted average number of shares 1,027 1,010 Adjustment for Treasury shares (11) (11) Weighted average number of shares (basic) 1,016 999 Dilutive effect of share options 2 2 Dilutive effect of ESOP shares 4 3 Dilutive effect of convertible bond 58 - Weighted average number of shares (diluted) 1,080 1,004 2015 2014 Pence Pence Earnings per share (basic) 168.3 110.7 Earnings per share (diluted) 167.3 110.2 Underlying earnings per share (diluted) 30.6 29.4 EPRA earnings per share - basic 30.8 29.5 - diluted 29.5 29.4 Net assets per share 2015 2014 £m Pence per share £m Pence per share Balance sheet net assets 8,565 7,117 Deferred tax arising on revaluation movements 13 6 Mark-to-market on effective cash flow hedges and related debt adjustments 257 173 Dilution effect of share options 37 39 Surplus on trading properties 96 63 Convertible bond adjustment 400 - Less non-controlling interests (333) (371) EPRA NAV 9,035 829 p 7,027 688 p Deferred tax arising on revaluation movements (13) (6) Mark-to-market on effective cash flow hedges and related debt adjustments (257) (173) Mark-to-market on debt (406) (148) EPRA NNNAV 8,359 767 p 6,700 656 p EPRA NNNAV is the EPRA NAV adjusted to reflect the fair value of the debt and derivatives and to include the deferred taxation on revaluations and derivatives. EPRA Net Initial Yield and 'topped-up' Net Initial Yield 2015 2014 £m £m Investment property - wholly-owned 9,068 7,194 Investment property - share of joint ventures and funds 4,569 4,757 Less developments, residential and land (1,148) (1,192) Completed property portfolio 12,489 10,759 Allowance for estimated purchasers' costs 784 639 Gross up completed property portfolio valuation 13,273 11,398 Annualised cash passing rental income 575 554 Property outgoings (8) (8) Annualised net rents 567 546 Rent expiration of rent-free periods and fixed uplifts (1) 64 53 'Topped-up' net annualised rent 631 599 EPRA Net Initial Yield 4.3% 4.8% EPRA 'topped-up' Net Initial Yield 4.8% 5.3% Including fixed/minimum uplifts received in lieu of rental growth 26 26 Total 'topped-up' net rents 657 625 Overall 'topped-up' Net Initial Yield 4.9% 5.5% 'Topped-up' net annualised rent 631 599 ERV vacant space 20 33 Reversions 18 (9) Total ERV 669 623 Net Reversionary Yield 5.0% 5.5% (1) The period over which rent-free periods expire is 1 year (2014: 2 years). The above is stated for the UK portfolio only. EPRA Vacancy Rate 2015 2014 £m £m Annualised potential rental value of vacant premises 20 33 Annualised potential rental value for the completed property portfolio 692 626 EPRA Vacancy Rate 2.9% 5.2% The above is stated for the UK portfolio only. EPRA Cost Ratios 2015 2014 £m £m Property outgoings 23 21 Administrative expenses 81 72 Share of joint ventures and funds expenses 14 20 Less: Performance & management fees (from joint ventures & funds) (9) (10) Other fees and commission (5) (5) Ground rent costs (3) (2) EPRA Costs (including direct vacancy costs) (A) 101 96 Direct vacancy costs (11) (13) EPRA Costs (excluding direct vacancy costs) (B) 90 83 Gross Rental Income less ground rent costs 374 330 Share of joint ventures and funds (GRI less ground rent costs) 241 265 Total Gross Rental Income (C) 615 595 EPRA Cost Ratio (including direct vacancy costs) (A/C) 16.4% 16.2% EPRA Cost Ratio (excluding direct vacancy costs) (B/C) 14.6% 13.9% Overhead and operating expenses capitalised (including share of joint ventures and funds) - - No overhead or operating expenses, including employee costs, are capitalised. Table C: GROSS RENTAL INCOME AND ACCOUNTING RETURN Calculation of gross rental income Year ended 31 March 31 March 2015 2014 £m £m Rent receivable 581 570 Spreading of tenant incentives and guaranteed rent increases 33 23 Surrender premia 4 4 Gross rental income 618 597 The current and prior year gross rental income is presented on a proportionately consolidated basis, excluding non-controlling interest. Year ended 31 March 31 March 2015 2014 Total accounting return 24.5 % 20.0 % SUPPLEMENTARY TABLES (Data includes Group's share of Joint Ventures and Funds) Portfolio Valuation At 31 March 2015 Group JVs & Funds1 Total1 Change %² £m £m £m H1 H2 FY Shopping parks 2,161 1,169 3,330 7.2 1.1 7.5 Shopping centres 1,106 1,079 2,185 5.8 3.2 8.7 Superstores 233 701 934 3.1 (1.0) 1.9 Department stores 592 1 593 6.5 10.1 17.3 Leisure 511 4 515 7.1 2.0 7.1 Retail & Leisure3 4,603 2,954 7,557 6.0 2.0 7.5 West End 3,251 - 3,251 9.0 9.0 18.6 City 77 2,490 2,567 9.0 11.3 20.6 Provincial 3 - 3 6.5 12.2 18.7 All Offices 3,331 2,490 5,821 8.9 10.0 19.4 Residential4 220 39 259 4.9 2.8 7.4 All Offices & Residential3 3,551 2,529 6,080 8.7 9.7 18.8 Total 8,154 5,483 13,637 7.2 5.2 12.1 Table shows UK total, excluding assets held in Europe. Total portfolio valuation including Europe of £13.7bn at year end, +12.1% valuation movement. 1 Group's share of properties in joint ventures and funds including HUT at share 2 Valuation movement during the period (after taking account of capital expenditure) of properties held at the balance sheet date, including developments (classified by end use), purchases and sales ³ Including committed developments 4 Stand-alone residential Portfolio Yield & ERV Movements At 31 March 2015 ERV NEY ERV Growth %1 NEY Yield Compression bps2 £m % H1 H2 FY H1 H2 FY Shopping parks 184 5.1 0.9 2.1 3.0 45 7 52 Shopping centres 125 5.1 0.3 1.8 2.1 38 13 48 Superstores 51 5.2 0.1 (0.1) (0.1) 12 (11) 3 Department stores 24 4.5 8.6 0.0 8.7 19 42 56 Leisure 23 5.4 0.7 0.3 1.1 57 21 86 Retail & Leisure 407 5.2 1.1 1.5 2.5 35 10 47 West End 145 4.6 2.6 3.6 6.3 21 24 46 City3 128 4.7 5.9 4.4 10.6 34 30 59 Offices 273 4.6 3.9 4.0 8.0 26 27 51 Total4 680 4.9 2.1 2.4 4.6 32 17 48 Table shows UK total, excluding assets held in Europe. 1 As calculated by IPD 2 Including notional purchaser's costs 3 City ERV growth 6.7% on a like-for-like basis 4 Table excludes Residential ERV of £3m Total Property Return (as calculated by IPD excluding Europe) FY to 31 March 2015 Retail Offices Total % British Land IPD British Land IPD British Land IPD Capital Return 8.5 7.8 20.5 16.1 13.4 11.5 - ERV Growth 2.5 0.8 8.0 7.3 4.6 3.3 - Yield Compression1 47 bps 47 bps 51 bps 68 bps 48 bps 57 bps Income Return 5.4 5.3 3.3 4.3 4.5 5.1 Total Property Return 14.4 13.5 24.4 21.1 18.4 17.1 1 Net equivalent yield movement Portfolio Weighting At 31 March 2014 2015 2015 2015 (current) (current) (pro-forma1) % % £m % Shopping parks 23.1 24.4 3,330 23.1 Shopping centres 15.6 16.0 2,185 15.2 Superstores 11.1 6.9 934 6.5 Department stores 4.7 4.3 593 4.1 Leisure 2.8 3.8 515 3.6 Retail & Leisure 57.3 55.4 7,557 52.5 West End 22.7 23.9 3,251 26.9 City 17.1 18.8 2,567 18.1 Provincial 0.8 - 3 - Offices 40.6 42.7 5,821 45.0 Residential2 2.1 1.9 259 2.5 Offices & Residential 42.7 44.6 6,080 47.5 Total 100.0 100.0 13,637 100.0 Table shows UK total, excluding assets held in Europe. 1 Pro forma for developments under construction at estimated end value (as determined by the Group's external valuers) and post period end transactions 2 Stand-alone residential Portfolio Net Yields1,2 At 31 March 2015 EPRA net initial yield % EPRA topped up net initial yield %3 Overall topped up net initial yield %4 Net equivalent yield % Net reversionary yield % Shopping parks 4.9 5.1 5.2 5.1 5.1 Shopping centres 4.6 4.9 4.9 5.1 5.1 Superstores 5.2 5.2 5.2 5.2 5.1 Department stores 4.1 4.1 6.1 4.5 3.8 Leisure 5.1 5.1 6.3 5.4 4.1 Retail & Leisure 4.8 5.0 5.2 5.2 4.9 West End 3.1 4.2 4.3 4.6 4.8 City 3.9 4.7 4.7 4.7 5.7 Offices 3.5 4.4 4.5 4.6 5.2 Total 4.3 4.8 4.9 4.9 5.0 Table shows UK total, excluding assets held in Europe. 1 Including notional purchaser's costs 2 Excluding developments under construction and assets held for development 3 Including rent contracted from expiry of rent-free periods and fixed uplifts not in lieu of rental growth 4 Including fixed/minimum uplifts (excluded from EPRA definition) Annualised Rent & Estimated Rental Value (ERV)1 At 31 March 2015 Annualised rent (valuation basis) £m2 ERV £m Average rent £psf Group JVs & Funds Total Total Contracted3,4 ERV3 Shopping parks 114 62 176 184 25.4 25.6 Shopping centres 63 51 114 125 29.3 30.9 Superstores 13 38 51 51 21.4 21.2 Department stores 25 - 25 24 15.1 14.0 Leisure 27 - 27 23 14.8 11.9 Retail & Leisure 242 151 393 407 23.6 23.6 West End 94 - 94 145 50.6 55.3 City 4 84 88 128 48.8 55.5 Offices 98 84 182 273 49.6 55.3 Residential5 4 - 4 3 Offices & Residential 102 84 186 276 Total 344 235 579 683 28.1 30.0 Table shows UK total, excluding assets held in Europe. 1 Excluding developments under construction and assets held for development 2 Gross rents plus, where rent reviews are outstanding, any increases to ERV (as determined by the Group's external valuers), less any ground rents payable under head leases, excludes contracted rent subject to rent free and future uplift 3 Office average rent & ERV £psf is based on office space only 4 Annualised rent, plus rent subject to rent free 5 Stand-alone residential Gross Rental Income1 Accounting Basis 12 mths to 31 March 2015 Annualised as at 31 March 20154 £m Group JVs & Funds2 Total Group JVs & Funds2 Total Shopping parks 106 53 159 114 62 176 Shopping centres 61 51 112 63 50 113 Superstores 11 57 68 13 38 51 Department stores 32 - 32 29 - 29 Leisure 29 - 29 31 - 31 Retail & Leisure 239 161 400 250 150 400 West End 109 - 109 110 - 110 City 5 89 94 4 94 98 Provincial 4 - 4 - - - Offices 118 89 207 114 94 208 Residential3 3 - 3 3 - 3 Offices & Residential 121 89 210 117 94 211 Total 360 250 610 367 244 611 Table shows UK total, and includes completed developments. 1 Gross rental income will differ from annualised rents due to accounting adjustments for fixed & minimum contracted rental uplifts and lease incentives 2 Group's share of properties in joint ventures and funds including HUT at share 3 Stand-alone residential 4 Position as at 31 March 2015. One Sheldon Square acquired post period end with gross rental income of £9m in financial year 2016. Lease Length & Occupancy1 At 31 March 2015 Average lease length yrs Occupancy rate % To expiry To break Occupancy Occupancy (underlying)2 Shopping parks 8.9 7.9 97.4 98.2 Shopping centres 9.0 7.9 96.5 97.7 Superstores 14.8 14.5 100.0 100.0 Department stores 21.5 21.4 100.0 100.0 Leisure 18.9 18.8 100.0 100.0 Retail & Leisure 11.2 10.4 97.8 98.5 West End 10.6 8.6 98.0 98.7 City 9.4 7.5 93.3 97.4 Provincial 17.0 7.0 100.0 100.0 Offices 10.1 8.1 95.8 98.1 Total 10.8 9.5 97.0 98.3 Table shows UK total, excluding assets held in Europe. 1 Excluding developments under construction and assets held for development 2 Including accommodation under offer or subject to asset management Rent Subject to Lease Break or Expiry1 At 31 March 2015 2016 2017 2018 2019 2020 2016-18 2016-20 For period to 31 March £m £m £m £m £m £m £m Shopping parks 12 7 11 12 14 30 56 Shopping centres 10 9 9 6 9 28 43 Superstores 1 - - - - 1 1 Department stores - - - - - - - Leisure - - - - - - - Retail & Leisure 23 16 20 18 23 59 100 West End 1 19 - 17 13 20 50 City 3 8 8 10 4 19 33 Offices2 4 27 8 27 17 39 83 Total 27 43 28 45 40 98 183 % of contracted rent 4.1% 6.5% 4.3% 6.8% 6.3% 15.0% 28.1% Potential uplift at current ERV 4 7 - 4 2 11 17 Table shows UK total, excluding assets held in Europe. 1 Excluding developments under construction and assets held for development 2 Based on office space only Rent Subject to Open Market Rent Review1 At 31 March 2015 2016 2017 2018 2019 2020 2016-18 2016-20 For period to 31 March £m £m £m £m £m £m £m Shopping parks 19 17 26 27 18 62 107 Shopping centres 14 14 18 16 10 46 72 Superstores 15 5 4 9 15 24 48 Department stores - - - - - - - Leisure - - 2 1 - 2 3 Retail & Leisure 48 36 50 53 43 134 230 West End 17 13 13 20 22 43 85 City 14 2 15 14 15 31 60 Offices 31 15 28 34 37 74 145 Total 79 51 78 87 80 208 375 Potential uplift at current ERV 4 1 1 2 1 6 9 Table shows UK total, excluding assets held in Europe. 1 Excluding developments under construction and assets held for development Major Holdings At 31 March 2015 BL Share Sq ft Rent Occupancy Lease (excl. developments under construction) % '000 £m pa1 rate %2 length yrs3 Broadgate, London EC2 50 3,963 194 99.9 6.5 Regent's Place, London NW1 100 1,588 72 99.4 8.4 Meadowhall Shopping Centre, Sheffield 50 1,448 85 97.3 7.1 Paddington Central 100 608 24 99.5 9.2 Sainsbury's Superstores4 50 2,715 59 100.0 14.7 The Leadenhall Building 50 602 22 83.3 14.5 Debenhams, Oxford Street 100 363 11 100.0 24.0 Tesco Superstores4 64 1,238 27 100.0 14.8 Teeside Shopping Park, Stockton-on-Tees 100 417 15 96.6 7.1 Drake Circus Shopping Centre, Plymouth 100 414 16 96.0 5.6 1 Annualised contracted rent, topped up for rent free, including 100% of Joint Ventures & Funds 2 Includes accommodation under offer or subject to asset management 3 Weighted average to first break 4 Comprises stand-alone assets/properties Occupiers Representing over 0.5% of Total Contracted Rent At 31 March 2015 % of total rent % of total rent Tesco plc 6.5 Vodafone plc 0.9 Debenhams 5.7 Facebook 0.9 J Sainsbury plc 5.0 Aon Plc 0.9 HM Government 3.2 JPMorgan 0.8 UBS AG 3.0 Reed Smith 0.8 Kingfisher (B&Q) 2.6 H&M Hennes & Mauritz AB 0.8 Home Retail Group 2.6 Deutsche Bank AG 0.7 Next plc 2.5 Children's World Ltd (Mothercare) 0.7 Virgin Active 1.9 Gazprom 0.7 Spirit Group 1.6 JD Sports 0.7 Dixons Carphone 1.6 Mayer Brown 0.7 Alliance Boots 1.6 ICAP plc 0.6 Marks & Spencer Plc 1.5 Pets at Home 0.6 Arcadia Group 1.4 Steinhoff 0.6 Herbert Smith 1.3 Carlson (TGI Friday's) 0.6 Royal Bank of Scotland 1.1 Lewis Trust (River Island) 0.6 Aegis Group 1.1 Credit Agricole 0.6 TJX Cos Inc (TK Maxx) 1.0 Nokia Oyj 0.5 New Look 1.0 Henderson 0.5 SportsDirect 0.9 Santander 0.5 Asda Group 0.9 DFS 0.5 Acquisitions and Disposals From 1 April 2014 Price (Gross) BL Share Annual Passing Acquisitions Area £m £m Rent £m2 Completed 50% share of two Tesco JVs Retail Various 381 381 20 1 Sheldon Square Offices London 210 210 10 Hercules Unit Trust unit purchase1 Retail Various 169 169 10 Surrey Quays Leisure Park Retail London 135 135 2 Speke New Mersey Shopping Park3 Retail North West 93 59 4 Next, Ealing Broadway Retail London 5 5 0 Total 993 959 46 1 Units purchased over the course of the year. £169m represents purchased GAV 2 BL share of net rent topped up for rent frees 3 Hercules Unit Trust increased ownership by 37.5% From 1 April 2014 Price (Gross) BL Share Annual Passing Disposals Area £m £m Rent £m1 Completed 50% share of Tesco Superstore JV Retail Various 352 352 18 Grenfell Island, Maidenhead Offices South East 90 90 6 Leamington Shopping Park Retail West Midlands 72 22 1 House of Fraser, Birmingham Retail Midlands 71 71 5 Nassica & Vista Alegre Retail Parks Europe Spain 70 46 4 Sainsbury's, Rugby Retail Midlands 59 30 2 Kingswood Retail Park, Hull Retail Yorkshire 58 58 3 Sainsbury's, Nottingham Retail Midlands 50 25 1 Sainsbury's, Cambridge Retail East Anglia 50 25 1 Green Lanes Shopping Centre, Barnstaple Retail South West 36 36 3 Sainsbury's, Cardiff (Thornhill) Retail Wales 35 17 1 Cwmbran Retail Park Retail Wales 32 32 2 Tesco, Ferndown Retail South West 29 15 1 52 Poland Street, W1 Offices London 26 26 1 Springfield Retail Park, Elgin Retail Scotland 23 23 1 103 Colmore Row, Birmingham Offices Midlands 15 15 - Morrisons, Hounslow West Retail London 9 9 - Residential Units Residential London 69 63 - Other 20 11 - Exchanged Clarges Mayfair Residential Residential London 259 259 - Aldgate Place Residential2 Residential London 79 40 - The Hempel Residential London 8 8 - Total 1,512 1,273 50 1 BL share of net rent topped up for rent frees 2 Including £15m (BL share) of affordable units and £1m (BL share) of ground rents Recently Completed & Committed Developments At 31 March 2015 Sector BL Share Sq ft PC Calendar Year Current Value Cost to complete ERV Let & Under Offer Resi End Value % '000 £m £m1,2 £m3 £m £m4 The Leadenhall Building Offices 50 601 Completed 385 12 19.4 16.2 - Broadgate Circle Offices 50 42 Completed 23 1 1.2 1.0 - Old Market, Hereford Retail 100 305 Completed 92 4 4.9 4.8 - Meadowhall Surrounding Land Retail 50 22 Completed 9 - 0.4 0.4 - Fort Kinnaird, Edinburgh Retail 35 57 Completed 8 1 0.5 0.5 - Deepdale, Preston Retail 35 64 Completed 6 1 0.4 0.4 - Broughton Park, Chester Retail 69 54 Completed 11 1 0.7 0.7 - Total Completed in Period 1,145 534 20 27.5 24.0 - 5 Broadgate Offices 50 710 2015 399 23 19.2 19.2 - Yalding House Offices 100 29 2015 21 6 1.6 - - 4 Kingdom Street Offices 100 147 2017 36 82 8.6 - - Clarges Mayfair Mixed Use 100 192 2017 310 170 5.9 - 464 Whiteley Leisure, Fareham Retail 50 58 2015 8 2 0.6 0.5 - Glasgow Fort, M&S & Retail Terrace Retail 69 112 2015 19 10 1.8 0.9 - The Hempel Phase 15 Residential 100 25 2016 42 2 - - 51 The Hempel Phase 2 Residential 100 40 2016 50 16 - - 81 Aldgate Place, Phase 16 Residential 50 221 2016 24 47 - - 80 Total Under Construction 1,534 909 358 37.7 20.6 676 Data includes Group's share of properties in Joint Ventures & Funds (except area which is shown at 100%) 1 From 1 April 2015 to practical completion (PC) 2 Cost to complete excludes notional interest as interest is capitalised individually on each development at our capitalisation rate 3 Estimated headline rental value net of rent payable under head leases (excluding tenant incentives) 4 Residential development of which £315m completed or exchanged and a further £9m under offer 5 Previously Craven Hill Gardens 6 End value excludes sale of hotel site, receipts of £6m (BL Share) Near-Term Pipeline At 31 March 2015 Sector BL Share Sq ft Start On Site Total Cost2 Status '000 £m 5 Kingdom Street1 Offices 100 240 2016 188 Consented 100 Liverpool Street Offices 50 517 2017 236 Consented3 Blossom Street, Shoreditch Mixed Use 100 347 2016 219 Submitted Glasgow Fort (Restaurants & Additional Retail Unit) Retail 69 42 2015 12 Consented Plymouth Leisure Retail 100 100 2016 36 Consented New Mersey Shopping Park, Speke - Leisure Retail 61 66 2015 16 Submitted Aldgate Place, Phase 2 Residential 50 145 2016 56 Consented Crystal House, Ealing Broadway Residential 100 34 2016 18 Submitted Total Near-Term 1,491 781 1 210,000 sq ft of which is consented 2 Total cost including site value. Excludes notional interest as interest is capitalised individually on each development at our capitalisation rate 3 Post year end, the City of London Corporation's Planning Committee has resolved to grant planning permission Medium-Term Pipeline At 31 March 2015 Sector BL Share Sq ft Status '000 Eden Walk Shopping Centre, Kingston Mixed Use 50 545 Pre-submission Canada Water Masterplan1 Mixed Use 100 5,500 Pre-submission 1 - 3 Finsbury Avenue2 Offices 50 460 Pre-submission Forster Retail Park, Bradford, Phase 3 Retail 100 60 Pre-submission Meadowhall Land Retail 50 350 Pre-submission Total Medium-Term 6,915 1 Assumed net area based on gross area of up to 7m sq ft 2 Existing net areas, scheme in early design stages Residential development programme At 31 March 2015 Sq Ft No. Market Units PC Date/ Status BL Share Mar 15 Value1 Cost To come2 End Value Sales Exchanged & Completed '000 % £m £m £m £m Clarges Mayfair3 103 34 2017 100 228 137 464 259 Mixed use 103 34 228 137 464 259 Bedford Street4 28 17 Completed 100 18 - 28 24 The Hempel Phase 1 25 15 2016 100 42 2 51 18 The Hempel Phase 2 40 19 2016 100 50 16 81 - Aldgate Place Phase 1 221 154 2016 50 24 47 80 38 Residential-led 314 205 134 65 240 80 Aldgate Place Phase 2 145 Consented 50 Ealing, Crystal House 34 Submitted 100 Near Term prospective 179 Total Committed Residential 417 239 362 202 704 339 Data includes Group's share of properties in Joint Ventures & Funds (except area which is shown at 100%) 1 Excluding completed sales 2 From 1 April 2015 to practical completion (PC). Cost to complete excludes notional interest as interest is capitalised individually on each development at our capitalisation rate 3 Includes 9,500 sq ft of affordable housing (11 units) 4 Includes 14,000 sq ft of retail space Superstores Stand-alone Superstores1 In Shopping Centres & Shopping Parks2 Total Exposure1,2,3 Store Size '000 SQ FT No of Stores Valuation (BL share) £m Capital Value psf WALL to FB yrs No of Stores Valuation (BL share) £m Capital Value psf WALL to FB yrs No of Stores Valuation (BL share) £m Capital Value psf WALL to FB yrs >100 9 242 377 13.6 5 366 552 13.8 14 608 466 13.7 75-100 14 294 470 18.7 1 41 483 12.9 15 335 471 17.9 50-75 17 296 443 13.2 1 12 190 12.1 18 308 421 13.1 25-50 9 64 244 9.4 3 31 437 15.5 12 95 285 11.3 0-25 8 28 200 13.3 19 79 405 11.6 27 107 321 12.1 March 15 57 924 395 14.5 29 529 491 13.9 86 1,453 426 14.4 Sept 14 81 1,286 423 14.5 26 337 479 13.9 107 1,623 433 14.4 Geographical Spread Gross Rent (BL Share) Lease Structure London & South 59% Tesco £4m RPI and Fixed 11% Rest of UK 41% Sainsburys £3m OMRR 89% Other £7m 1 Excludes £10m non-foodstore occupiers in superstore led assets 2 Excludes non food-format stores e.g. Asda Living 3 Excludes £99m of investments held for trading comprising freehold reversions in a pool of Sainsbury's Superstores GLOSSARY Annualised rent is the gross property rent receivable on a cash basis as at the reporting date. Additionally, it includes the external valuers' estimate of additional rent in respect of unsettled rent review, turnover rent and sundry income such as that from car parks and commercialisation, less any ground rents payable under head leases. Assets under management is the full value of all assets managed by British Land and includes 100% of the value of all joint ventures and funds. BREEAM (Building Research Establishment Environmental Assessment Method) assesses the sustainability of buildings against a range of social and environmental criteria. Capital return is calculated as the change in capital value of the UK portfolio, less any capital expenditure incurred, expressed as a percentage of capital employed over the period, as calculated by IPD. Capital returns are calculated monthly and indexed to provide a return over the relevant period. Capped rents are rents subject to a maximum level of uplift at the specified rent reviews as agreed at the time of letting. Collar rents are rents subject to a minimum level of uplift at the specified rent reviews as agreed at the time of letting. Contracted rent is the annualised rent adjusting for the inclusion of rent subject to rent free periods. Customer satisfactionour definition of customer satisfaction has this year been expanded to include consumers as well as occupiers, to better relate to our focus on creating Places People Prefer. This year we have included exit survey data for consumer satisfaction in the retail business (FY2014-15 vs FY2013-14), as well as office and retail occupier satisfaction scores, and in future we aim to be able to further expand to include consumer satisfaction for other sectors. Developer's profit is the profit on cost estimated by the valuers that a developer would expect. The developer's profit is typically calculated by the valuers to be a percentage of the estimated total development costs, including land and notional finance costs. Development uplift is the total increase in the value (after taking account of capital expenditure and capitalised interest) of properties held for development during the period. It also includes any developer's profit recognised by valuers in the period. Development cost is the total cost of construction of a project to completion, excluding site values and finance costs (finance costs are assumed by the valuers at a notional rate of 5.5% per annum). EPRA is the European Public Real Estate Association, the industry body for European REITs. EPRA Cost Ratio (including direct vacancy costs) is the ratio of net overheads and operating expenses against gross rental income (with both amounts excluding ground rents payable). Net overheads and operating expenses relate to all administrative and operating expenses including the share of joint ventures' overheads and operating expenses, net of any service fees, recharges or other income specifically intended to cover overhead and property expenses. EPRA Cost Ratio (excluding direct vacancy costs) is the ratio calculated above, but with direct vacancy costs removed from net overheads and operating expenses balance. EPRA earnings is the profit after taxation excluding investment and development property revaluations and gains/losses on disposals, changes in the fair value of financial instruments and associated close-out costs and their related taxation. EPRA NAV per share is EPRA NAV divided by the diluted number of shares at the period end. EPRA net assets (EPRA NAV) are the balance sheet net assets excluding the mark-to-market on effective cash flow hedges and related debt adjustments and deferred taxation on revaluations. EPRA net initial yield is the annualised rents generated by the portfolio, after the deduction of an estimate of annual recurring irrecoverable property outgoings, expressed as a percentage of the portfolio valuation (adding notional purchaser's costs), excluding development and residential properties. EPRA NNNAV is the EPRA NAV adjusted to reflect the fair value of debt and derivatives and to include deferred taxation on revaluations. EPRA Topped-Up Net Initial Yield is the current annualised rent, net of costs, topped-up for contracted uplifts, where these are not in lieu of rental growth, expressed as a percentage of capital value, after allowing for notional purchaser's costs. EPRA vacancy rate is the estimated market rental value (ERV) of vacant space divided by ERV of the whole portfolio, excluding developments and residential property. This is the inverse of the occupancy rate. Estimated Rental Value (ERV) is the external valuers' opinion as to the open market rent which, on the date of valuation, could reasonably be expected to be obtained on a new letting or rent review of a property. Fair value movement is accounting adjustment to change the book value of an asset or liability to its market value. Footfall is the annualised number of visitors entering our assets (calculated on a weighted basis). Gearing see loan to value (LTV). Gross investment activity as measured by our share of acquisitions, sales and investment in committed development. Gross rental income is the gross accounting rent receivable (quoted either for the period or on an annualised basis) prepared under IFRS which requires that rental income from fixed/minimum guaranteed rent reviews and tenant incentives is spread on a straight-line basis over the entire lease to first break. This can result in income being recognised ahead of cash flow. Group is The British Land Company PLC and its subsidiaries and excludes its share of joint ventures and funds (where not treated as a subsidiary) on a line-by-line basis (i.e. not proportionally consolidated). Headline rent is the contracted gross rent receivable which becomes payable after all the tenant incentives in the letting have expired. IFRS are the International Financial Reporting Standards as adopted by the European Union. Income return is calculated as net income expressed as a percentage of capital employed over the period, as calculated by IPD. Income returns are calculated monthly and indexed to provide a return over the relevant period. interest cover is the number of times net interest payable is covered by underlying profit before net interest payable and taxation. IPD is Investment Property Databank Ltd which produces an independent benchmark of property returns and British Land UK portfolio returns. Lettings and lease renewals are compared both to the previous passing rent as at the start of the financial year and the ERV immediately prior to letting. Both comparisons are made on a net effective basis. Like-for-like ERV growth is the change in ERV over a period on the standing investment properties expressed as a percentage of the ERV at the start of the period. Like-for-like ERV growth is calculated monthly and compounded for the period subject to measurement, as calculated by IPD. Like-for-like rental income growth is the growth in net rental income on properties owned throughout the current and previous periods under review. This growth rate includes revenue recognition and lease accounting adjustments but excludes properties held for development in either period and properties with guaranteed rent reviews. Loan to value (LTV) is the ratio of principal value of gross debt less cash, short term deposits and liquid investments to the aggregate value of properties and investments. Mark-to-market is the difference between the book value of an asset or liability and its market value. Multi-channel retailing is the use of a variety of channels in a customer's shopping experience, including research, before a purchase. Such channels include: retail stores, online stores, mobile stores, mobile app stores, telephone sales and any other method of transacting with a customer. Transacting includes browsing, buying, returning as well as pre- and post-sale service. Net Development Value is the estimated end value of a development project as determined by the external valuers for when the building is completed and fully let (taking into account tenant incentives and notional purchaser's costs). It is based on the valuers view on ERVs, yields, letting voids and rent-frees. Net effective rent is the contracted gross rent receivable taking into account any rent-free period or other tenant incentives. The incentives are treated as a cost-to-rent and spread over the lease to the earliest termination date. Net equivalent yield is the weighted average income return (after allowing for notional purchaser's costs) a property will produce based upon the timing of the income received. In accordance with usual practice, the equivalent yields (as determined by the external valuers) assume rent is received annually in arrears. Net Initial Yield is the current annualised rent, net of costs, expressed as a percentage of capital value, after allowing for notional purchaser's costs. Net rental income is the rental income receivable in the period after payment of direct property outgoings which typically comprise ground rents payable under head leases, void costs, net service charge expenses and other direct irrecoverable property expenses. Net rental income is quoted on an accounting basis. Net rental income will differ from annualised net cash rents and passing rent due to the effects of income from rent reviews, net property outgoings and accounting adjustments for fixed and minimum contracted rent reviews and lease incentives. Net reversionary yield is the anticipated yield to which the initial yield will rise (or fall) once the rent reaches the estimated rental value. Occupancy rate is the estimated rental value of let units as a percentage of the total estimated rental value of the portfolio, excluding development properties. It includes accommodation under offer or subject to asset management (where they have been taken back for refurbishment and are not available to let as at the balance sheet date). Omni-channel retailing is the evolution of multi-channel retailing, but is concentrated more on a seamless approach to the consumer experience through all available shopping channels i.e. mobile internet devices, computers, bricks and mortar, television, radio, direct mail, catalogue, etc. Over rented is the term used to describe when the contracted rent is above the estimated rental value (ERV). Overall 'topped-up' net initial yield is the EPRA Net 'topped-up' Initial Yield, adding all contracted uplifts to the annualised rents. Passing rent is the gross rent, less any ground rent payable under head leases. Portfolio valuation movement is the increase in value of the portfolio of properties held at the balance sheet date and net sales receipts of those sold during the period, expressed as a percentage of the capital value at the start of the period plus net capital expenditure, capitalised interest and transaction costs. Property Income Distributions (PIDs) are profits distributed to shareholders which are subject to tax in the hands of the shareholders as property income. PIDs are normally paid net of withholding tax currently at 20% which the REIT pays to the tax authorities on behalf of the shareholder. Certain types of shareholder (i.e. pension funds) are tax exempt and receive PIDs without withholding tax. Property companies also pay out normal dividends, called non-PIDs, which are treated as normal dividends and are not subject to withholding tax. Property valuation is reported by the Group's external valuers. In accordance with usual practice, they report valuations net, after the deduction of the notional purchaser's costs, including stamp duty land tax, agent and legal fees. Rack rented is the term used to describe when the contracted rent is in line with the estimated rental value (ERV), implying a nil reversion. Rent-free period see Tenant (or lease) incentives. Rent reviews take place at intervals agreed in the lease (typically every five years) and their purpose is usually to adjust the rent to the current market level at the review date. For upwards-only rent reviews, the rent will either remain at the same level or increase (if market rents have increased) at the review date. Rents with fixed and minimum uplifts are either where rents are subject to contracted uplifts at a level agreed at the time of letting; or where the rent is subject to an agreed minimum level of uplift at the specified rent review. Retail planning consentsare separated between A1, A2 and A3 - as set out in The Town and Country Planning (Use Classes) Order. Within the A1 category, Open A1 permission allows for any type of retail to be accommodated, while Restricted A1 permission places limits on the types of retail that can operate (for example, a restriction that only bulky goods operators are allowed to trade at that site). Class Description Use for all/any of the following purposes A1 Shops Shops, retail warehouses, hairdressers, undertakers, travel and ticket agencies, post offices, pet shops, sandwich bars, showrooms, domestic hire shops, dry cleaners, funeral directors and internet cafes. A2 Financial and professional services Financial services such as banks and building societies, professional services (other than health and medical services) and including estate and employment agencies. It does not include betting offices or pay day loan shops - these are now classed as "sui generis" uses (see below). A3 Restaurants and cafes For the sale of food and drink for consumption on the premises - restaurants, snack bars and cafes. D2 Assembly and leisure Cinemas, music and concert halls, bingo and dance halls (but not night clubs), swimming baths, skating rinks, gymnasiums or areas for indoor or outdoor sports and recreations. Reversion is the increase in rent estimated by the external valuers, where the passing rent is below the estimated rental value. The increases to rent arises on rent reviews and lettings. Scrip dividend British Land offers its shareholders the opportunity to receive dividends in the form of shares instead of cash. This is known as a Scrip dividend. Standing investmentsare assets which are directly held and not in the course of development. Tenant (or lease) incentives are incentives offered to occupiers to enter into a lease. Typically this will be an initial rent-free period, or a cash contribution to fit-out. Under accounting rules the value of lease incentives is amortised through the income statement on a straight-line basis to the earliest lease termination date. TMT stands for technology, media and telecommunications. The residual site value of a development is calculated as the estimated (net) development value, less development profit, all development construction costs, finance costs (assumed at a notional rate) of a project to completion and notional site acquisition costs. The residual is determined to be the current site value. Topping out is a traditional construction ceremony to mark the occasion when the structure of the building reaches the highest point. Total property return is calculated as the change in capital value, less any capital expenditure incurred, plus net income, expressed as a percentage of capital employed over the period, as calculated by IPD. Total property returns are calculated monthly and indexed to provide a return over the relevant period. Total return (total accounting return) is the growth in EPRA NAV plus dividends paid, and this can be expressed as a percentage of EPRA NAV per share at the beginning of the period. Total Shareholder Return is the growth in value of a shareholding over a specified period, assuming dividends are reinvested to purchase additional units of stock. Total tax contribution is a more comprehensive view of tax contributions than the accountancy-defined tax figure quoted in most financial statements. It comprises taxes and levies paid directly, as well as taxes collected from others which we administered. Turnover rents is where all or a portion of the rent is linked to the sales or turnover of the occupier. Under rented is the term used to describe when the contracted rent is below the estimated rental value (ERV), implying a positive reversion. Underlying earnings per share (EPS) consists of underlying profit after tax divided by the diluted weighted average number of shares in issue during the period. Underlying profit before tax is the pre-tax EPRA earnings measure with additional Company adjustments. Adjustments include mark-to-market adjustments on, or profits on disposal of, held for trading assets, mark-to-market adjustments on the convertible bond and issue costs of the convertible bond. Virtual freeholdrepresents a long leasehold tenure for a period of up to 999 years. A 'peppercorn', or nominal, rent is paid annually. Weighted average debt maturity - each tranche of Group debt is multiplied by the remaining period to its maturity and the result is divided by total Group debt in issue at the period end. Weighted average interest rate is the Group loan interest and derivative costs per annum at the period end, divided by total Group debt in issue at the period end. Weighted average unexpired lease term is the average lease term remaining to first break, or expiry, across the portfolio weighted by contracted rental income (including rent-frees). The calculation excludes residential leases and properties allocated as developments. Yield compression occurs when the net equivalent yield of a property decreases, measured in basis points. Yield on cost is the estimated annual rent of the completed development divided by the total cost of development including site value and notional finance costs to the point of assumed rent commencement, expressed as a percentage return. Yield shift is a movement (usually expressed in bps) in the yield of a property asset, or like-for-like portfolio, over a given period. Yield compression is a commonly-used term for a reduction in yields. This information is provided by RNS The company news service from the London Stock Exchange END FR UOOURVRAVAUR