British Land Co PLC

Quarterly Report • Nov 13, 2013

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RNS Number : 8655S British Land Co PLC 13 November 2013  Consolidated Income Statement for the period ended 30 September 2013 Year ended 31 March 2013 Six months ended 30 September 2013 Six months ended 30 September 2012 Audited Unaudited Unaudited Underlying Capital Underlying Capital Underlying Capital pre tax and other Total pre tax and other Total pre tax and other Total £m £m £m Note £m £m £m £m £m £m 329 329 Gross rental and related income 3 179 179 165 165 281 281 Net rental and related income 3 148 148 142 142 15 15 Fees and other income 3 7 7 8 8 130 (63) 67 Joint ventures and funds (see also below) 63 89 152 63 (19) 44 (72) (72) Administrative expenses (36) (36) (37) (37) 88 88 Net valuation movement (includes profits & losses on disposals) 3 204 204 6 6 Net financing costs 21 2 23 - financing income 5 3 8 13 3 16 (101) (41) (142) - financing charges (41) (20) (61) (52) (18) (70) (80) (39) (119) 3 (36) (17) (53) (39) (15) (54) 274 (14) 260 Profit on ordinary activities before taxation 146 276 422 137 (28) 109 Taxation 8 8 - current tax income (expense) 3 4 4 1 1 16 16 - deferred tax income (expense) 3 1 1 2 2 24 24 3 5 5 3 3 284 Profit for the period after taxation attributable to shareholders of the Company 427 112 31.7 p Earnings per share: basic 2 43.0 p 12.6 p 31.5 p diluted 2 42.8 p 12.5 p Share of results of joint ventures and funds 130 130 Underlying profit before taxation 63 63 63 63 (62) (62) Net valuation movement (includes profits & losses on disposals) 83 83 (19) (19) (4) (4) Non-recurring items (3) (3) 2 2 Current tax income (expense) (1) (1) 3 3 1 1 Deferred tax income (expense) 7 7 130 (63) 67 5 63 89 152 63 (19) 44 * As defined in note 2 Consolidated Statement of Comprehensive Income for the period ended 30 September 2013 Year Six months Six months ended ended ended 31 March 30 September 30 September 2013 2013 2012 Audited Unaudited Unaudited £m £m £m 284 Profit for the period after taxation 427 112 Other comprehensive income: Items that will not be reclassified subsequently to profit or loss: (2) Net actuarial loss on pension scheme (2) (1) (2) (2) (1) Items that may be reclassified subsequently to profit or loss: Gains (losses) on cash flow hedges (16) - Group 11 (32) (6) - Joint ventures and funds 35 (17) (22) 46 (49) Transferred to (from) the income statement (cash flow hedges) (5) - foreign currency derivatives 6 1 26 - interest rate derivatives 7 13 21 13 14 Exchange differences on translation of foreign operations (4) - hedging and translation (1) 9 6 - other 1 (7) 2 2 (1) Other comprehensive (loss) income for the period 57 (34) 283 Total comprehensive income for the period 484 78 Consolidated Balance Sheet at 30 September 2013 31 March 30 September 30 September 2013 2013 2012 Audited Unaudited Unaudited £m Note £m £m Assets Non-current assets 5,488 Investment and development properties 4 5,950 5,389 42 Owner-occupied property 4 45 42 5,530 5,995 5,431 Other non-current assets 2,336 Investments in joint ventures and funds 5 2,676 2,308 76 Other investments 6 124 48 92 Interest rate derivative assets 7 35 105 8,034 8,830 7,892 Current assets 40 Trading properties 4 242 49 60 Debtors 41 113 Liquid investments 7 100 135 Cash and short-term deposits 7 112 107 235 395 369 8,269 Total assets 9,225 8,261 Liabilities Current liabilities (44) Short-term borrowings and overdrafts 7 (772) (252) (259) Creditors (241) (230) (17) Corporation tax (8) (26) (320) (1,021) (508) Non-current liabilities (2,134) Debentures and loans 7 (1,989) (2,507) (26) Other non-current liabilities (30) (29) (16) Deferred tax liabilities (15) (30) (86) Interest rate derivative liabilities 7 (64) (110) (2,262) (2,098) (2,676) (2,582) Total liabilities (3,119) (3,184) 5,687 Net assets 6,106 5,077 Equity 249 Share capital 252 226 1,242 Share premium 1,250 1,242 213 Merger reserve 213 (163) Other reserves (104) (197) 4,146 Retained earnings 4,495 3,806 Total equity attributable to shareholders 5,687 of the Company 6,106 5,077 596 p EPRA NAV per share 2 623 p 596 p * As defined in note 2 Consolidated Statement of Cash Flows for the period ended 30 September 2013 Year Six months Six months ended ended ended 31 March 30 September 30 September 2013 2013 2012 Audited Unaudited Unaudited £m Note £m £m 266 Rental income received from tenants 145 125 19 Fees and other income received 10 11 (88) Operating expenses paid to suppliers and employees (48) (44) 197 Cash generated from operations 107 92 (113) Interest paid (64) (61) 31 Interest received 13 10 1 UK corporation tax received (paid) (1) 74 Distributions received from joint ventures and funds 5 31 62 190 Net cash inflow from operating activities 87 102 Cash flows from investing activities (230) Development and other capital expenditure (94) (93) (442) Purchase of investment properties (586) (47) 699 Sale of investment properties 125 77 Purchase of investments (6) 2 Sale of investments 18 Deferred consideration received 13 (318) Investment in and loans to joint ventures and funds (99) (182) 72 Capital distributions and loan repayments from joint ventures and funds 9 (3) Indirect taxes (paid) in respect of investing activities (3) (6) (202) Net cash (outflow) from investing activities (654) (238) Cash flows from financing activities 493 Issue of ordinary shares 4 4 (203) Dividends paid (74) (122) 4 Closeout of interest rate derivatives 2 Movement in other financial liabilities (10) 11 210 Disposal of liquid investments 100 (889) Decrease in bank and other borrowings (49) (350) Drawdowns on bank and other borrowings 673 70 393 Proceeds on convertible bond issue 393 10 Net cash inflow from financing activities 544 106 (2) Net (decrease) in cash and cash equivalents (23) (30) 137 Opening cash and cash equivalents 135 137 135 Closing cash and cash equivalents 112 107 Cash and cash equivalents consists of: 135 Cash and short-term deposits 112 107 Consolidated Statement of Changes in Equity for the period ended 30 September 2013 Hedging & Share Share translation Revaluation Merger Retained capital * premium reserve reserve reserve earnings Total £m £m £m £m £m £m £m Six month movements in equity Balance at 1 April 2013 249 1,242 (71) (92) 213 4,146 5,687 Total comprehensive income for the period 23 36 425 484 Share issues 3 8 11 Adjustment for share and share option awards (3) (3) Dividends payable in the six month period (130) (130) Adjustment for scrip dividend element 57 57 Balance at 30 September 2013 252 1,250 (48) (56) 213 4,495 6,106 Balance at 1 April 2012 225 1,237 (72) (92) 3,806 5,104 Total comprehensive income for the period (9) (24) 111 78 Share issues 1 5 6 Adjustment for share and share option awards 5 5 Dividends payable in the six month period (116) (116) Balance at 30 September 2012 226 1,242 (81) (116) 3,806 5,077 Prior year movements in equity Balance at 1 April 2012 225 1,237 (72) (92) 3,806 5,104 Total comprehensive income for the period 1 282 283 Share issues 24 5 464 493 Adjustment for share and share option awards 9 9 Dividends payable in the year (234) (234) Transfer (251) 251 Adjustment for scrip dividend element 32 32 Balance at 31 March 2013 249 1,242 (71) (92) 213 4,146 5,687 * See note 12 for a summary of the number of shares in issue Notes to the accounts (unaudited) 1. Basis of preparation The financial information for the period ended 30 September 2013 does not constitute statutory accounts as defined in section 434 of the Companies Act 2006. A copy of the statutory accounts for the year ended 31 March 2013 has been delivered to the Registrar of Companies. The auditor's report on those accounts was not qualified, did not include a reference to any matters to which the auditor drew attention by way of emphasis without qualifying the report, and did not contain statements under section 498(2) or (3) of the Companies Act 2006. The financial information included in this announcement has been prepared on a going concern basis using accounting policies consistent with International Financial Reporting Standards (IFRS) as adopted by the European Union and in accordance with IAS 34 'Interim Financial Reporting'. The current period financial information presented in this document is unaudited. In the current financial year the Group has adopted the amendments to IAS 1 "Presentation of Items of Other Comprehensive Income", IFRS 13 "Fair Value Measurement" and IAS 19 (revised) "Employee Benefits". Otherwise the same accounting policies, estimates, presentation and methods of computation are followed in the half year report as applied in the Group's latest annual audited financial statements. • The amendments to IAS 1 require items of other comprehensive income to be grouped by those items that will be reclassified subsequently to profit or loss and those that will be never be reclassified, as well as their associated income tax. The amendments have been applied retrospectively and hence the presentation of items of comprehensive income has been re-grouped accordingly. • IFRS 13 impacts the disclosure and measurement of financial instruments held at fair value, as set out in note 7. • IAS 19 (revised) and the related consequential amendments have impacted the accounting for the Group's defined benefit scheme, by replacing the interest cost and expected return on plan assets with a net interest charge on the net defined benefit liability. For the current period, the profit was £1m lower and other comprehensive income was £1m higher than it would have been prior to the adoption of IAS 19 (revised 2011). As the Group has always recognised actual gains and losses immediately there has been no effect on the prior year defined benefit obligation. The comparative period has not been restated as the impact of adopting IAS 19 (revised 2011) is not considered material. The Group's business activities, financial position, cash flows, liquidity position and financing structure are discussed in the first half of this report. The Directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. Thus they continue to adopt the going concern basis of accounting in preparing the financial statements. The Group's business is not seasonal. The interim financial information was approved by the Board on 12 November 2013. 2. Performance measures Year ended Six months ended Six months ended 31 March 2013 30 September 2013 30 September 2012 Earnings Pence per share Earnings per share (diluted) Earnings Pence per share Earnings Pence per share £m £m £m 274 Underlying pre tax profit - income statement 146 137 (1) Tax charge relating to underlying profit (1) (1) 273 30.3 p Underlying earnings per share 145 14.5 p 136 15.2 p 9 Mark-to-market on/profit on disposal of liquid investments (held for trading assets) 4 (7) Mark-to-market adjustment on convertible bond (19) (7) Non-recurring items * (7) 268 29.7 p EPRA earnings per share (diluted) 126 12.6 p 133 14.9 p 284 31.5 p Profit for the period after taxation 427 42.8 p 112 12.5 p Non-recurring items for the six months ended 30 September 2012 and 31 March 2013 relate to the issue costs for the convertible bond. The European Public Real Estate Association (EPRA) has issued Best Practices Recommendations, the latest update of which was issued in July 2013, which give guidelines for performance measures. The results have been presented to be in line with these recommendations. EPRA earnings (diluted) 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. Underlying earnings consists of the EPRA earnings (diluted) measure, with additional company adjustments. Adjustments include mark to market adjustments on held for trading assets, and mark to market adjustments on the convertible bond. The weighted average number of shares in issue for the six month period was: basic: 993m (six months ended 30 September 2012: 888m; year ended 31 March 2013: 895m); diluted for the effect of share options: 997m (six months ended 30 September 2012: 894m; year ended 31 March 2013: 901m). Basic undiluted earnings per share for the six month period was 43.0p (six months ended 30 September 2012: 12.6p; year ended 31 March 2013: 31.7p). Earnings per share shown in the table above are diluted. 31 March 30 September 30 September 2013 Net asset value (NAV) 2013 2012 £m £m £m 5,687 Balance sheet net assets 6,106 5,077 14 Deferred tax arising on revaluation movements 5 29 198 Mark to market on effective cash flow hedges and related debt adjustments 138 229 10 Surplus on trading properties 12 6 58 Dilution effect of share options 37 51 5,967 EPRA NAV 6,298 5,392 596 p EPRA NAV per share 623 p 596 p The EPRA NAV per share excludes the mark to market on effective cash flow hedges and related debt adjustments, deferred taxation on revaluations, surplus on trading properties and is calculated on a fully diluted basis. At 30 September 2013, the number of shares in issue was: basic: 999m (31 March 2013: 986m; 30 September 2012: 888m); diluted for the effect of share options: 1,011m (31 March 2013: 1,001m; 30 September 2012: 904m). Total accounting return per share for the six months ended 30 September 2013 of 6.8% includes dividends paid of 13.5p (see note 8) in addition to the increase in EPRA NAV of 27p. Total accounting return per share for the six months ended 30 September 2012 was 2.4% and the year ended 31 March 2013 was 4.6%. 3. Income statement notes Year ended Six months ended 31 March 30 September 2013 2013 2012 £m £m £m Gross and net rental income 269 Rent receivable 149 134 24 Spreading of tenant incentives and guaranteed rent increases 6 14 1 Surrender premia 2 1 294 Gross rental income 157 149 35 Service charge income 22 16 329 Gross rental and related income 179 165 (35) Service charge expenses (22) (16) (13) Property operating expenses (9) (7) 281 Net rental and related income 148 142 Fees and other income 10 Performance & management fees (from joint ventures & funds) 5 5 5 Other fees and commission 2 3 15 7 8 Net revaluation movements on property and investments 71 Revaluation of properties 191 1 8 Gains on property and investment disposals 13 1 9 Revaluation of investments 4 88 204 6 (62) Share of valuation movements of joint ventures and funds (note 5) 83 (19) 26 287 (13) Included in the £17m of net financing costs in the Capital and Other column are a £19m increase in the fair value of the convertible bond, less a £1m foreign exchange gain on foreign currency denominated debt and less a £1m foreign exchange gain on investments in foreign operations. Tax income (expense) (1) Current tax: UK corporation tax (30 September 2013: 23%; 31 March 2013: 24%; 30 September 2012: 24%) (1) 1 (1) (1) 1 9 Adjustments in respect of prior periods 5 8 Total current tax income 4 1 16 Deferred tax on revaluations 1 2 24 Group total taxation (net) 5 3 3 Attributable to joint ventures and funds 6 3 . 27 Total taxation 11 6 Tax expense attributable to underlying profits for the six months ended 30 September 2013 was £1m (six months ended 30 September 2012: £1m; year ended 31 March 2013: £1m). The deferred tax charge for the six months ended 30 September 2013 has been calculated using the future enacted UK corporation tax rate of 21% (effective from 1 April 2014). 4. Property Total property interests are £11,438m at 30 September 2013, comprising properties held by the Group of £6,219m, share of properties held by funds of £777m and share of properties held by joint ventures of £4,442m. Properties were valued on the basis of fair value, supported by market evidence, in accordance with the Appraisal and Valuation Standards published by The Royal Institution of Chartered Surveyors. 31 March 30 September 30 September 2013 2013 2012 £m £m £m 5,488 Investment properties 5,950 5,389 42 Owner-occupied property 45 42 5,530 Carrying value of properties on balance sheet 5,995 5,431 40 Trading properties 242 49 5,570 Carrying value of properties on balance sheet 6,237 5,480 (26) Head lease liabilities (30) (20) 10 Surplus on trading properties 12 6 5,554 Total British Land Group property portfolio valuation 6,219 5,466 At 30 September 2013 Group properties valued at £1,695m were subject to a security interest (31 March 2013: £1,724m; 30 September 2012: £1,700m) and other properties of non-recourse companies amounted to £42m (31 March 2013: £40m; 30 September 2012: £39m). During the period to 30 September 2013, £285m of investment properties were reclassified to trading properties, as since planning consent has been granted it is the Group's intention to redevelop and sell these properties. Some of these trading properties were subsequently sold in the period. Interest capitalised on development expenditure for the six months ended 30 September 2013 was £11m (six months ended 30 September 2012: £7m; year ended 31 March 2013: £16m). 5. Joint ventures and funds Summary of British Land's share of investments in joint ventures and funds at 30 September 2013 Underlying profit (six Net Property Other Gross months) Investment assets assets liabilities+ £m £m £m £m £m Share of funds 12 457 777 30 (350) Share of joint ventures 51 2,219 4,442 235 (2,458) Total 63 2,676 5,219 265 (2,808) * Head lease liabilities included in property assets + Liabilities include secured bank loans. The borrowings of joint ventures and funds and their subsidiaries are non-recourse to the Group At 30 September 2013 British Land had exchanged contracts to sell our 50% interest in Puerto Venecia Shopping Centre and Retail Park in Zaragoza, Spain. This sale was completed on 15 October 2013 for £121m. PREF, a fund owning a portfolio of retail property in Europe (in which British Land has a net investment of £69m), has its properties externally valued by CBRE. CBRE have included a market uncertainty clause in the valuation report of the Portuguese and Spanish properties, due to a lack of transactional evidence and uncertainty over the economic situation in those markets (Italian properties are not included in this clause at 30 September 2013). In June 2013 PREF made two partial early repayments of debt totalling €15m. PREF now has €74m of bank loans that are due to mature in the calendar year 2014; discussions continue with the existing lenders and other alternatives are being explored. At 30 September 2013 the investment in joint ventures included within the total investment in joint ventures and funds was £2,219m (31 March 2013: £1,889m; 30 September 2012: £1,817m). Amounts owed to joint ventures on a proportional basis at 30 September 2013 were £4m (31 March 2013: £4m; 30 September 2012: £5m). Amounts owed from joint ventures on a proportional basis at 30 September 2013 were £51m (31 March 2013: £78m; 30 September 2012: £107m). British Land's share of the results of joint ventures and funds Year Six months Six months ended ended ended 31 March 30 September 30 September 2013 2013 2012 £m £m £m 273 Gross rental income 134 135 260 Net rental and related income 127 130 (4) Other income and expenditure (2) (2) (126) Net financing costs (62) (65) 130 Underlying profit before taxation 63 63 (62) Net valuation and disposal movements 83 (19) (4) Non-recurring items (3) 64 Profit on ordinary activities before taxation 146 41 2 Current tax expense (1) 3 1 Deferred tax income (expense) 7 67 Profit on ordinary activities after taxation 152 44 5. Joint ventures and funds (continued) Operating cash flows of joint ventures and funds Year Six months Six months ended ended ended 31 March 30 September 30 September 2013 2013 2012 £m £m £m 264 Rental income received from tenants 124 124 (22) Operating expenses paid to suppliers and employees (15) (17) 242 Cash generated from operations 109 107 (133) Interest paid (66) (66) (7) UK corporation tax paid (3) (3) 102 Cash inflow from operating activities 40 38 Cash inflow from operating activities deployed as: 28 Surplus cash (distributed by) retained within joint ventures and funds 9 (24) 74 Total distributed to British Land 31 62 102 Cash inflow from operating activities 40 38 6. Other investments Other investments includes a £92m loan to the Bluebutton joint venture under a secured commercial development facility. 7. Net Debt 31 March 30 September 30 September 2013 2013 2012 £m £m £m 1,587 Debentures and unsecured bonds 1,528 1,575 407 Convertible bond 426 393 184 Bank debt and other floating rate debt 807 791 2,178 Gross debt 2,761 2,759 86 Interest rate and currency derivative liabilities 64 110 (92) Interest rate and currency derivative assets (35) (105) 2,172 2,790 2,764 Liquid investments (100) (135) Cash and short-term deposits (112) (107) 2,037 Net debt 2,678 2,557 The categories of gross debt have been re-presented to be consistent with the most recent financial statements. Gross debt includes £772m due within one year at 30 September 2013 (31 March 2013: £44m; 30 September 2012: £252m). In the 6 months ended 30 September 2013, the group has taken advantage of drawing on its cheaper rate facilities with shorter remaining terms. This has contributed to the increase in debt due within one year. Undrawn committed bank facilities at 30 September 2013 amounted to £1,483m. The Group Loan to Value (LTV) ratio at 30 September 2013 is 29%, being principal value of gross debt of £2,687m less cash and short-term deposits of £112m, divided by total Group property of £6,219m (see note 4) plus investments in joint ventures and funds of £2,676m (note 5) and other investments of £124m (balance sheet). Financial Covenants The two financial covenants applicable to the Group unsecured debt are: Net Borrowings not to exceed 175% of Adjusted Capital and Reserves. At 30 September 2013 the ratio is 39% i. Net Borrowings are £2,609m, being the principal amount of gross debt of £2,687m plus amounts owed to joint ventures of £4m (see note 5) plus TPP Investments Ltd of £30m (see note 10), less the cash and short-term deposits of £112m; and ii. Adjusted Capital and Reserves are £6,606m, being share capital and reserves of £6,106m (see Consolidated Statement of Changes in Equity), adjusted for £5m of deferred tax (see note 2), £319m exceptional refinancing charges (see below), £164m fair value adjustments on financial assets and liabilities (£138m mark to market on interest rate swaps and £26m adjustment on the convertible bond) and £12m surplus on trading properties (see note 4). Net Unsecured Borrowings not to exceed 70% of Unencumbered Assets. At 30 September 2013 the ratio is 33% i. Net Unsecured Borrowings are £1,664m, being the principal amount of gross debt of £2,687m plus amounts owed to joint ventures of £4m less cash and deposits not subject to a security interest of £50m less the principal amount of secured and non-recourse borrowings of £977m; and ii. Unencumbered Assets are £5,063m being properties of £6,219m (see note 4) plus investments in joint ventures and funds of £2,676m (see note 5) and other investments of £124m (see balance sheet) less investments in joint ventures of £2,219m (see note 5) and encumbered assets of £1,737m (see note 4). In calculating Adjusted Capital and Reserves for the purpose of the unsecured debt financial covenants, there is an adjustment of £319m to reflect the cumulative net amortised exceptional items relating to the refinancings in the years ended 31 March 2005, 2006 and 2007. Comparison of fair values and book values 30 September 2013 30 September 2012 Fair Book Fair Book Value Value Difference Value Value Difference £m £m £m £m £m £m Debentures and unsecured bonds 1,546 1,528 18 1,586 1,575 11 Convertible bond 426 426 393 393 Bank debt and other floating rate debt 815 807 8 796 791 5 Liquid investments (100) (100) Cash and short-term deposits (112) (112) (107) (107) 2,675 2,649 26 2,568 2,552 16 Other financial (assets) liabilities: - interest rate derivative assets (35) (35) (105) (105) - interest rate derivative liabilities 64 64 110 110 29 29 5 5 Total 2,704 2,678 26 2,573 2,557 16 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. 7. Net Debt (continued) Fair value heirachy 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). 30 September 2013 Level 1 Level 2 Level 3 Total £m £m £m £m Interest rate and currency derivative assets (35) (35) Assets (35) (35) Interest rate and currency derivative liabilities 64 64 Convertible bond 426 426 Liabilities 426 64 490 Total 426 29 455 8. Dividends The 2014 second quarter dividend of 6.75 pence per share, totalling £68m, is payable on 14 February 2014 to shareholders on the register at close of business on 10 January 2014. 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 08 January 2014. The Board expects to announce the split between PID and non-PID income at that time. A 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. The 2014 first quarter dividend of 6.75 pence per share, totalling £67m, was paid on 08 November 2013. 39% of shareholders opted for the Scrip Dividend Alternative. Both the cash dividend and Scrip Dividend Alternative were treated as PIDs. The total cash paid by the Group was £45m, being £35m paid to shareholders and £10m of withholding tax. The Consolidated Statement of Changes in Equity shows total dividends in the six months to 30 September of £130m, £65m being the third quarter 2013 dividend of 6.6 pence per share paid on 10 May 2013, and the 2013 fourth quarter PID dividend of 6.6 pence per share, paid on 9 August 2013, totalling £65m. A scrip alternative was offered in lieu of cash for both dividends. 9. Segment Information The segmental note has been updated to reflect changes to internal management reporting. 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 Offices sector now includes residential, as this is often incorporated into office schemes, and Retail now includes leisure, for a similar rationale. Prior year comparatives have been updated to reflect these changes. 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. Revenue is derived from the rental of buildings. Operating result is the net of net rental income, fee income and administration expenses. No customer exceeds 10% of the Group's revenues. Segment result Offices Retail Other/unallocated Total 2013 2012 2013 2012 2013 2012 2013 2012 £m £m £m £m £m £m £m £m Revenue British Land Group 43 44 114 105 157 149 Share of funds and joint ventures 42 41 83 86 9 8 134 135 Total 85 85 197 191 9 8 291 284 Net rental income British Land Group 40 42 108 100 148 142 Share of funds and joint ventures 40 40 80 83 7 7 127 130 Total 80 82 188 183 7 7 275 272 Operating Result British Land Group 33 37 104 97 (18) (21) 119 113 Share of funds and joint ventures 40 40 78 81 7 7 125 128 Total 73 77 182 178 (11) (14) 244 241 Reconciliation to underlying profit before taxation British Land Group net financing costs (36) (39) Share of funds and joint ventures net financing costs (62) (65) Capital and other 276 (28) Total profit on ordinary activities before tax 422 109 Segment assets Offices Retail Other/unallocated Total 2013 2012 2013 2012 2013 2012 2013 2012 £m £m £m £m £m £m £m £m Property assets (includes head leases liabilities) British Land Group 2,770 2,267 3,449 3,199 6,219 5,466 Share of funds and joint ventures 1,791 1,606 3,187 3,069 241 247 5,219 4,922 Total 4,561 3,873 6,636 6,268 241 247 11,438 10,388 Segment assets British Land Group 2,779 2,273 3,470 3,213 300 467 6,549 5,953 Share of funds and joint ventures 1,953 1,700 3,263 3,141 272 284 5,488 5,125 Total 4,732 3,973 6,733 6,354 572 751 12,037 11,078 Other assets British Land Group 312 473 312 473 Share of funds and joint ventures 162 94 72 64 31 37 265 195 Total 162 94 72 64 343 510 577 668 Capital expenditure British Land Group 553 82 33 14 586 96 Share of funds and joint ventures 45 53 9 51 1 20 55 124 Total 598 135 42 65 1 20 641 220 Other assets include other investments of £124m (31 March 2013: £76m; 30 September 2012: £48m), debtors of £41m (31 March 2013: £60m; 30 September 2012: £113m), liquid investments of £nil (31 March 2013: £nil; 30 September 2012: £100m), cash and short-term deposits of £112m (31 March 2013: £135m; 30 September 2012: £107m) and derivatives of £35m (31 March 2013: £92m; 30 September 2012: £105m). 10. Contingent liabilities The Group has 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. TPP Investments Limited, a wholly owned ring-fenced special purpose subsidiary, is a partner in The Tesco British Land Property Partnership and, in that capacity, has entered into a secured bank loan under which its liability is limited to £30m (31 March 2013: £30m, 30 September 2012: £30m) and recourse is only to the partnership assets. 11. Related party transactions There have been no material changes in the related party transactions described in the last annual report. Details of transactions with joint ventures and funds are given in notes 3, 6 and 10. Amounts owed to joint ventures are detailed in note 5. 12. Note to the Consolidated Statement of Changes in Equity At 30 September 2013, of the issued 25p ordinary shares, 1m were held in the ESOP Trust (31 March 2013: 1m; 30 September 2012: 1m), 11m were held as Treasury shares (31 March 2013: 11m; 30 September 2012: 11m) and 1,010m shares were in free issue (31 March 2013: 986m; 30 September 2012: 900m). All shares are fully paid. INDEPENDENT REVIEW REPORT TO THE BRITISH LAND COMPANY PLC We have been engaged by the company to review the condensed set of financial statements in the half-yearly financial report for the six months ended 30 September 2013 which comprises the Consolidated Income Statement, the Consolidated Statement of Comprehensive Income, the Consolidated Balance Sheet, the Consolidated Cash Flow Statement, the Consolidated Statement of Changes in Equity, and related notes 1 to 12. We have read the other information contained in the half-yearly financial report and considered whether it contains any apparent misstatements or material inconsistencies with the information in the condensed set of financial statements. This report is made solely to the company in accordance with International Standard on Review Engagements (UK and Ireland) 2410 "Review of Interim Financial Information Performed by the Independent Auditor of the Entity" issued by the Auditing Practices Board. Our work has been undertaken so that we might state to the company those matters we are required to state to it in an independent review report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company, for our review work, for this report, or for the conclusions we have formed. Directors' responsibilities The half-yearly financial report is the responsibility of, and has been approved by, the directors. The directors are responsible for preparing the half-yearly financial report in accordance with the Disclosure and Transparency Rules of the United Kingdom's Financial Conduct Authority. As disclosed in note 1, the annual financial statements of the group are prepared in accordance with IFRSs as adopted by the European Union. The condensed set of financial statements included in this half-yearly financial report has been prepared in accordance with International Accounting Standard 34, "Interim Financial Reporting," as adopted by the European Union. Our responsibility Our responsibility is to express to the Company a conclusion on the condensed set of financial statements in the half-yearly financial report based on our review. Scope of Review We conducted our review in accordance with International Standard on Review Engagements (UK and Ireland) 2410 "Review of Interim Financial Information Performed by the Independent Auditor of the Entity" issued by the Auditing Practices Board for use in the United Kingdom. A review of interim financial information consists of making inquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with International Standards on Auditing (UK and Ireland) and consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion. Conclusion Based on our review, nothing has come to our attention that causes us to believe that the condensed set of financial statements in the half-yearly financial report for the six months ended 30 September 2013 is not prepared, in all material respects, in accordance with International Accounting Standard 34 as adopted by the European Union and the Disclosure and Transparency Rules of the United Kingdom's Financial Conduct Authority. Deloitte LLP Chartered Accountants and Statutory Auditor London, United Kingdom 12 November 2013 Supplementary Disclosures Table A: REIT Income and Capital Return Summary income statement based on proportional consolidation for the period ended 30 September 2013 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, 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 2013 Six months ended 30 September 2013 Six months ended 30 September 2012 Group JVs & Prop Group JVs & Prop Group JVs & Prop funds Consol funds Consol funds Consol £m £m £m £m £m £m £m £m £m 294 273 567 Gross rental income 157 134 291 149 135 284 (13) (13) (26) Property operating expenses (9) (7) (16) (7) (5) (12) 281 260 541 Net rental income 148 127 275 142 130 272 (72) (4) (76) Administrative expenses (36) (2) (38) (37) (2) (39) 15 15 Fees & other income 7 7 8 8 224 256 480 Profit before interest and tax 119 125 244 113 128 241 (80) (126) (206) Net interest (36) (62) (98) (39) (65) (104) 144 130 274 Underlying profit before tax 83 63 146 74 63 137 (1) Underlying tax (1) (1) 273 REIT income return 145 136 30.3 p Underlying earnings per share - diluted basis 14.5 p 15.2 p 26 Valuation movement 287 (13) (4) Other capital and tax (net) (28) 4 22 REIT capital return 259 (9) 295 REIT total return 404 127 The underlying earnings per share is calculated on underlying profit before taxation of £146m, tax attributable to underlying profits of £1m and 997m shares on a diluted basis, for the six months ended 30 September 2013. includes other comprehensive income, movement in dilution of share options and the movement in items excluded for EPRA NAV. Supplementary Disclosures (continued) Table A (continued): EPRA Net Assets Summary balance sheet based on proportional consolidation as at 30 September 2013 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, i.e. proportional basis and assuming full dilution. EPRA Net assets 31 March 2013 Group Share of joint ventures & funds Share options Deferred tax Mark to market on effective cash flow hedges and related debt adjs Head Leases Valuation surplus on trading properties EPRA Net assets 30 September 2013 EPRA Net assets 30 September 2012 £m £m £m £m £m £m £m £m £m £m 6,327 Retail properties 3,470 3,191 (25) 6,636 6,268 3,717 Office properties 2,779 1,791 (9) 4,561 3,873 455 Other properties (12) 241 12 241 247 10,499 Total properties 6,237 5,223 (34) 12 11,438 10,388 Investments in joint 2,676 (2,676) ventures and funds 53 Other investments 124 (43) 81 46 Intangible assets (319) Other net (liabilities) (253) (124) 37 5 34 (301) (254) assets (4,266) Net debt (2,678) (2,380) 138 (4,920) (4,788) 5,967 Net assets 6,106 37 5 138 12 6,298 5,392 596 p EPRA NAV per share (note 2) 623 p 596 p EPRA Net Assets Movement Year ended Six months ended Six months ended 31 March 2013 30 September 2013 30 September 2012 £m Pence per share £m Pence per share £m Pence per share 5,381 595 p Opening EPRA NAV 5,967 596 p 5,381 595 p 273 30 p REIT income return 145 14 p 136 15 p 22 2 p REIT capital return 259 26 p (9) (1) p (202) (27) p Dividends (73) (13) p (116) (13) p 493 (4) p Dilution due to issue of shares 5,967 596 p Closing EPRA NAV 6,298 623 p 5,392 596 p Supplementary Disclosures (continued) Table B: EPRA Performance Measures EPRA Performance measures summary table Six months Six months Year ended ended ended 31 March 2013 30 September 2013 30 September 2012 £m Pence per share £m Pence per share £m Pence per share 268 29.7 p EPRA Earnings (diluted) 126 12.6 p 133 14.9 p 5,967 596 p EPRA NAV 6,298 623 p 5,392 596 p 5,522 552 p EPRA NNNAV 6,016 595 p 5,015 555 p 5.5 % EPRA Net Initial Yield 5 % 5.2 % 5.7 % EPRA 'topped-up' Net Initial Yield 5.5 % 5.7 % 3.2 % EPRA Vacancy Rate 4.6 % 2.6 % Calculation of EPRA earnings (diluted) per share Six months Six months Year ended ended ended 31 March 2013 30 September 2013 30 September 2012 £m Pence per share £m Pence per share £m Pence per share 284 31.5 p Profit for the period after taxation 427 42.8 p 112 12.5 p Exclude: (9) (1.0) p Group - non-underlying current tax (5) (0.5) p (2) (0.2) p (16) (1.8) p Group - deferred tax (1) (0.1) p (2) (0.2) p (2) (0.2) p Joint Ventures and Funds - non-underlying current tax 1 0.1 p (3) (0.3) p (1) (0.1) p Joint Ventures and Funds - deferred tax (7) (0.7) p (79) (8.8) p Group - net valuation movement (including result on disposals) (204) (20.5) p (2) (0.2) p 62 6.9 p Joint ventures and funds - net valuation movement (including result on disposals) (83) (8.3) p 19 2.1 p 1 0.1 p Amortisation of intangible assets 1 0.1 p 28 3.1 p Changes in fair value of financial instruments and associated close-out costs (2) (0.2) p 10 1.1 p 268 29.7 p EPRA Earnings (diluted) per share (EPS) 126 12.6 p 133 14.9 p Calculation of EPRA NNNAV per share Year Six months Six months ended ended ended 31 March 30 September 30 September 2013 2013 2012 £m £m £m 5,967 EPRA NAV 6,298 5,392 (14) Deferred tax arising on revaluation movements (5) (29) (198) Mark to market on effective cash flow hedges and related debt adjustments (138) (229) (233) Mark to market on debt (139) (119) 5,522 EPRA NNNAV 6,016 5,015 552 p EPRA NNNAV per share 595 p 555 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. Supplementary Disclosures (continued) Table B (continued): EPRA Performance Measures EPRA Net Initial Yield and 'topped-up' Net Initial Yield Year ended Six months ended Six months ended 31 March 2013 30 September 2013 30 September 2012 £m £m £m 5,554 Investment property - wholly owned 6,219 5,466 4,945 Investment property - share of joint ventures and funds 4,978 4,922 (1,340) Less developments (1,008) (907) 9,159 Completed property portfolio 10,189 9,481 552 Allowance for estimated purchasers' costs 572 543 9,711 Gross up completed property portfolio valuation 10,761 10,024 541 Annualised cash passing rental income 545 530 (11) Property outgoings (10) (12) 530 Annualised net rents 535 518 27 Rent expiration of rent free periods and fixed uplifts 60 58 557 'Topped-up' net annualised rent 595 576 5.5 % EPRA Net Initial Yield 5.0 % 5.2 % 5.7 % EPRA 'topped-up' Net Initial Yield 5.5 % 5.7 % 26 Including fixed/minimum uplifts received in lieu of rental growth 26 27 583 Total 'topped-up' net rents 621 603 6.0 % Overall 'topped-up' Net Initial Yield 5.8 % 6.0 % 557 'Topped-up' net annualised rent 595 576 19 ERV vacant space 28 15 (13) Reversions (15) (10) 563 Total Net ERV 608 581 5.8 % Net Reversionary Yield 5.7 % 5.8 % * The period over which rent free periods expire is 4 years (31 March 2013: 2 years; 30 September 2012: 2 years) The current period above is stated for the UK portfolio only. EPRA Vacancy Rate Year ended Six months ended Six months ended 31 March 2013 30 September 2013 30 September 2012 £m £m £m 19 Annualised potential gross rental value of vacant premises 28 15 573 Annualised potential gross rental value for the completed property portfolio 617 588 3.2 % EPRA Vacancy Rate 4.6 % 2.6 % The EPRA vacancy rate is calculated using the gross ERV. The current period above is stated for the UK portfolio only. EPRA Cost Ratios Year ended Six months ended Six months ended 31 March 2013 30 September 2013 30 September 2012 £m £m £m 13 Property outgoings 9 7 72 Administrative expenses 36 37 17 Share of joint ventures and funds expenses 9 7 Less: (10) Performance & management fees (from joint ventures & funds) (5) (5) (5) Other fees and commission (2) (3) (1) Ground rent costs 86 EPRA Costs (including direct vacancy costs) (A) 47 43 (14) Direct vacancy costs (6) (6) 72 EPRA Costs (excluding direct vacancy costs) (B) 41 37 294 Gross Rental Income less ground rent costs 157 149 273 Share of joint ventures and funds (GRI less ground rent costs) 134 135 567 Total Gross Rental Income (C) 291 284 15.3 % EPRA Cost Ratio (including direct vacancy costs) (A/C) 16.4 % 15.1 % 12.8 % EPRA Cost Ratio (excluding direct vacancy costs) (B/C) 14.4 % 13.1 % Overhead and operating expenses capitalised (incl. share of joint ventures and funds) - - - No overhead or operating expenses, including employee costs, are capitalised. Table C: Calculation of gross rental income Year ended Six months ended Six months ended 31 March 30 September 30 September 2013 2013 2012 £m £m £m 538 Rent receivable 281 268 28 Spreading of tenant incentives and guaranteed rent increases 8 15 1 Surrender premia 2 1 567 Gross rental income 291 284 SUPPLEMENTARY TABLES (Data includes Group’s share of Joint Ventures and Funds) UK Portfolio Valuation At 30 September 2013 Group JVs & Funds1 Total Change² £m £m £m % Retail3: Retail parks 1,755 814 2,569 1.1 Superstores 118 1,188 1,306 2.0 Shopping centres 756 1,181 1,937 0.3 Department stores 512 1 513 6.5 Leisure 308 3 311 2.0 UK Retail 3,449 3,187 6,636 1.5 Offices3: City 57 1,786 1,843 3.6 West End 2,468 - 2,468 6.0 Provincial 85 5 90 4.0 All Offices 2,610 1,791 4,401 5.0 Residential4 160 - 160 2.6 All Offices & Residential 2,770 1,791 4,561 4.9 UK Total 6,219 4,978 11,197 2.8 Table shows UK total, excluding assets held in Europe. Total portfolio valuation including Europe of £11.4bn at period end, +2.7% valuation movement. 1 group’s share of properties in joint ventures and funds 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 UK Portfolio Net Yields1 At 30 September 2013 (excluding developments) EPRA net initial yield % EPRA topped up net initial yield %2 Overall topped up net initial yield %3 Net reversionary yield % Net equivalent yield % Retail: Retail parks 5.5 5.7 5.8 5.8 5.9 Superstores 5.1 5.1 5.1 5.1 5.1 Shopping centres 5.4 5.7 5.7 5.8 5.8 Department stores 5.4 5.4 7.8 4.5 6.0 Leisure 7.6 7.6 8.8 6.0 8.4 UK Retail 5.5 5.6 5.9 5.6 5.8 Offices: City 5.3 6.1 6.1 6.0 5.6 West End 3.0 4.8 4.9 5.6 5.4 Provincial 7.1 7.1 7.1 5.7 6.3 All Offices 4.0 5.3 5.4 5.8 5.5 UK Total 5.0 5.5 5.8 5.7 5.7 Table shows UK total, excluding assets held in Europe. 1 including notional purchaser's costs 2 including rent contracted from expiry of rent-free periods and fixed uplifts not in lieu of growth 3 including fixed/minimum uplifts (excluded from EPRA definition) UK Annualised Rent & Estimated Rental Value (ERV) At 30 September 2013 (excluding developments) Annualised rent (valuation basis) £m1 ERV £m Average rent £psf Group JVs & Funds Total Total Contracted2 ERV2 Retail: Retail parks 103 46 149 159 23.2 23.8 Superstores 7 63 70 70 21.8 21.7 Shopping centres 50 66 116 123 25.3 26.2 Department stores 30 - 30 25 13.4 11.0 Leisure 25 - 25 20 13.4 10.8 UK Retail 215 175 390 397 21.4 21.3 Offices: City 4 77 81 91 47.4 45.7 West End 69 - 69 124 48.5 50.8 Provincial 6 - 6 5 27.1 21.9 All Offices 79 77 156 220 46.8 47.2 Residential3 3 - 3 3 - - All Offices & Residential 82 77 159 223 - - UK Total 297 252 549 620 25.7 26.0 Table shows UK total, excluding assets held in Europe. 1 gross rents plus, where rent reviews are outstanding, any increases to ERV (as determined by the Group’s external valuers), less any grounds rents payable under head leases, excludes contracted rent subject to rent free and future uplift 2 Office average rent £psf is based on office space only 3 stand-alone residential UK Gross Rental Income1 (Accounting Basis) £m 6 mths to 30 September 2013 Annualised as at 30 September 2013 Group JVs & Funds Total Group JVs & Funds Total Retail: Retail parks 52 21 73 102 45 147 Superstores 5 32 37 7 63 71 Shopping centres 27 30 57 50 64 114 Department stores 16 - 16 34 - 34 Leisure 14 - 14 28 - 28 UK Retail 114 83 197 221 172 394 Offices: City 3 42 45 4 82 86 West End 35 - 35 84 - 84 Provincial 3 - 3 6 - 6 All Offices 41 42 83 94 82 176 Residential2 2 - 2 3 - 3 All Offices & Residential 43 42 85 97 82 179 UK Total 157 125 282 318 254 573 Table shows UK total, excluding assets held in Europe. 1 gross rental income will differ from annualised rents due to accounting adjustments for fixed & minimum contracted rental uplifts and lease incentives 2 stand-alone residential UK Lease Length & Occupancy At 30 September 2013 Average lease length yrs Occupancy rate % (excluding developments) To expiry To break Occupancy Occupancy (underlying)1 Retail: Retail parks 9.5 8.6 95.7 97.4 Superstores 15.0 15.0 100.0 100.0 Shopping centres 9.6 8.8 95.6 97.0 Department stores 27.4 24.1 99.5 99.5 Leisure 21.2 21.2 99.8 100.0 UK Retail 12.6 11.8 96.9 98.0 Offices: City 9.6 7.7 96.5 97.0 West End 11.6 9.6 89.8 92.8 Provincial 8.8 8.4 100.0 100.0 All Offices 10.6 8.7 92.8 94.7 UK Total 11.9 10.7 95.4 96.8 Table shows UK total, excluding assets held in Europe. 1 including accommodation under offer or subject to asset management UK Rent Subject to Lease Break or Expiry At 30 September 2014 2015 2016 2017 2018 2014-16 2014-18 £m £m £m £m £m £m £m Retail: Retail parks 4 7 7 9 13 18 40 Superstores - - - - - - - Shopping centres 10 7 12 11 6 29 46 Department stores - - - - - - - Leisure - - - - - - - UK Retail 14 14 19 20 19 47 86 Offices: City 1 1 19 - 8 21 29 West End 2 4 1 14 9 7 30 Provincial - - - - - - - All Offices 3 5 20 14 17 28 59 UK Total 17 19 39 34 36 75 145 % of contracted rent 2.8% 2.9% 6.1% 5.4% 5.6% 11.8% 22.7% Potential uplift at current ERV 2 1 - (1) (1) 3 1 Table shows UK total, excluding assets held in Europe. UK Rent Subject to Open Market Rent Review 12 months to 30 September 2014 2015 2016 2017 2018 2014-16 2014-18 £m £m £m £m £m £m £m Retail: Retail parks 18 17 22 16 21 57 94 Superstores 8 23 13 4 4 44 52 Shopping centres 14 17 14 14 12 45 71 Department stores - - 5 - 1 5 6 Leisure - - - - - - - UK Retail 40 57 54 34 38 151 223 Offices: City 29 6 5 12 3 40 55 West End 5 17 7 21 22 29 72 Provincial - 1 5 - - 6 6 All Offices 34 24 17 33 25 75 133 UK Total 74 81 71 67 63 226 356 Potential uplift at current ERV 2 3 1 - - 6 6 Table shows UK total, excluding assets held in Europe. Major Holdings At 30 September 2013 BL Share Sq ft Rent Occupancy Lease (excl. developments under construction) % '000 £m pa1 rate %2 length yrs3 Broadgate, London EC2 50 3,963 177 97.0 7.6 Regent's Place, London NW1 100 1,589 67 97.6 9.6 Meadowhall Shopping Centre, Sheffield 50 1,374 82 97.4 8.4 Sainsbury’s Superstores 52 2,864 67 100.0 15.7 Tesco Superstores 50 2,687 61 100.0 14.6 Paddington Central 100 609 22 92.9 10.7 Teeside Shopping Park, Stockton-on-Tees 100 451 14 100.0 7.5 Drake Circus Shopping Centre, Plymouth 100 570 15 98.7 6.7 Debenhams, Oxford Street 100 363 10 100.0 25.5 10 Portman Square, W14 100 132 5 51.0 12.5 1 annualised contracted rent including 100% of Joint Ventures & Funds 2 includes accommodation under offer or subject to asset management 3 weighted average to first break 4 development reached practical completion in May 2013 Occupiers Representing over 0.5% of Rent At 30 September 2013 % of total rent % of total rent Tesco plc 7.3 JPMorgan 0.8 Sainsbury Group 5.9 Reed Smith 0.8 Debenhams 5.7 C&W Plc (Cable & Wireless plc) 0.8 UBS AG 3.2 TJX Cos Inc (TK Maxx) 0.8 Home Retail Group 2.7 SportsDirect 0.8 Kingfisher (B&Q) 2.6 Gazprom 0.7 HM Government 2.5 Deutsche Bank AG 0.7 Arcadia Group 2.1 Mayer Brown 0.7 Next plc 2.1 Hennes 0.7 Virgin Active 2.1 JD Sports 0.7 Spirit Group 1.6 Mothercare 0.7 Alliance Boots 1.5 ICAP Plc 0.6 Herbert Smith 1.4 Lend Lease 0.6 DSG International 1.3 Credit Agricole 0.6 Marks & Spencer Plc 1.2 AstraZeneca 0.6 Royal Bank of Scotland plc 1.2 Nokia 0.6 Hutchison Whampoa 1.2 Carlson (TGI Friday's) 0.6 Asda Group 1.1 Lewis Trust (River Island) 0.5 New Look 1.0 Henderson 0.5 House of Fraser 1.0 Pets at Home 0.5 Facebook 0.9 Aramco 0.5 Aegis Group 0.8 Recently Completed & Committed Developments At 30 September 2013 Sector BL Share Sq ft PC Calendar Year Current Value Cost to complete ERV Pre-let Resi End Value3 % '000 £m £m1,7 £m2 £m £m 2010 Programme: 10 - 30 Brock St, Regents Place4 Mixed Use 100 505 Completed 360 6 20.1 17.1 115 5 Broadgate Offices 50 710 2015 195 87 19.2 19.2 - The Leadenhall Building Offices 50 605 2014 195 43 18.6 8.6 - 10 Portman Square Offices 100 132 Completed 165 5 9.7 4.9 - Marble Arch House5 Mixed Use 100 86 2013 64 9 3.9 - 18 39 Victoria Street Offices 100 93 2013 63 6 4.9 - - 199 Bishopsgate Offices 50 144 Completed 55 1 3.5 1.8 - Whiteley Shopping, Fareham Retail 50 321 Completed 42 1 2.6 2.4 - Bedford Street Residential 100 24 2014 26 3 - - 27 Glasgow Fort (Leisure) Retail 44 46 Completed 7 2 0.5 0.5 - Total 2010 Programme: 2,666 1,172 163 83.0 54.5 160 Recently Committed: The Clarges Estate6 Mixed Use 100 193 2017 170 179 5.6 - 388 Hereford Retail 100 310 2014 35 40 5.5 2.8 - The Hempel Residential 100 40 2015 34 26 - - 81 Craven Hill Gardens Residential 100 25 2014 33 8 - - 50 Aldgate Place, Phase 1 Residential 50 221 2016 8 52 - - 658 Broadgate Circle Offices 50 45 2014 7 8 1.2 - - Milton Keynes, Kingston Centre Retail 50 21 2014 4 1 0.3 0.3 - Broughton Park, Chester Retail 44 54 2014 2 5 0.5 0.4 - Meadowhall Surrounding Land Retail 50 22 2015 1 3 0.4 0.4 - Whiteley Leisure, Fareham Retail 50 58 2015 1 6 0.5 0.2 - Fort Kinnaird, Edinburgh Retail 22 55 2015 - 3 0.3 0.1 - Total Recently Committed: 1,044 295 331 14.3 4.2 584 Total Committed 3,710 1,467 494 97.3 58.7 744 Data includes Group's share of properties in Joint Ventures & Funds (except area which is shown at 100%) 1 from 1 October 2013 to practical completion (PC) 2 estimated headline rental value net of rent payable under head leases (excluding tenant incentives) 3 Residential development of which £120 million completed or exchanged 4 includes 126,000 sq ft of residential, of which £93 million has now sold and completed during the half 5 includes 10,000 sq ft of residential 6 includes 103,000 sq ft of residential 7 cost to complete excludes notional interest as interest is capitalised on each development at our capitalisation rate 8 end value excludes hotel site, receipts of £5 million (BL share) estimated Near-Term Pipeline At 30 September 2013 Sector BL Share Sq ft Total Cost Status '000 £m1 The Shoreditch Estate Mixed Use 100 322 165 Pre-submission 5 Kingdom Street Offices 100 2402 154 Consented 4 Kingdom Street Offices 100 145 93 Consented Surrey Quays (Extension) Retail 100 98 24 Consented Yalding House Offices 100 29 22 Pre-submission Glasgow Fort (Retail) Retail 44 112 17 Planning submitted Deepdale, Preston Retail 22 74 3 Consented Total Near-Term 1,020 478 1 Total cost including site value. Excludes notional interest as interest is capitalised individually on each development at our capitalisation rate 2 210,000 sq ft of which is consented Medium-Term Pipeline At 30 September 2013 Sector BL Share Sq ft Status '000 100 Liverpool Street Offices 50 496 Pre-submission Power Court, Luton Retail 100 158 Pre-submission Aldgate Place, Phase 2 Residential 50 145 Consented Wardrobe Court Residential 100 74 Pre-submission Fort Kinnaird, Edinburgh Retail 22 30 Planning submitted Lancaster Retail 100 n/a Pre-submission Eden Walk Shopping Centre, Kingston Retail 50 n/a Pre-submission Harmsworth Quays Residential 100 n/a Pre-submission Total Medium-Term 903 This information is provided by RNS The company news service from the London Stock Exchange END IR DGBDBLXBBGXD