The like-for-like-segmental analysis

Market value1
Valuation
surplus2

Rental
income3

Annual-
ised
rental income4

Annualised
net rent5

Net estimated rental value6
31 March
2011
£m
31 March
2010
£m

Surplus/
(deficit)
£m
Surplus/
(deficit)
%

31 March
2011
£m
31 March
2010
£m

31 March
2011
£m

31 March
2011
£m
31 March
2010
£m

31 March
2011
£m
31 March
2010
£m
Shopping centres and shops
Shopping centres and shops 1,833.4 1,692.6
118.6 7.0
145.5 145.0
141.4
132.4 133.3
140.5 140.8
Central London shops 787.7 683.9
98.0 14.3
33.9 34.6
35.4
36.0 34.8
49.8 40.3
2,621.1 2,376.5
216.6 9.1
179.4 179.6
176.8
168.4 168.1
190.3 181.1
Retail warehouses
Retail warehouses and food stores 1,202.7 1,079.0
114.5 10.9
69.6 64.2
70.1
69.7 69.7
73.0 71.9
Total retail 3,823.8 3,455.5
331.1 9.7
249.0 243.8
246.9
238.1 237.8
263.3 253.0
London offices
West End 1,678.2 1,586.0
88.0 5.7
109.5 109.1
107.9
106.2 110.1
96.8 91.4
City 422.8 369.8
51.3 13.9
27.4 28.5
27.9
26.7 28.5
29.2 26.7
Mid-town 311.6 279.1
9.0 4.0
19.6 20.4
14.7
14.0 19.6
25.4 24.0
Inner London 726.2 668.6
55.9 8.8
49.5 47.9
48.1
48.8 48.5
45.4 42.7
Total London offices 3,138.8 2,903.5
204.2 7.4
206.0 205.9
198.6
195.7 206.7
196.8 184.8
Rest of UK 41.9 44.9
(6.5) (13.6) 3.7 3.5
3.6
3.6 3.6
4.2 4.4
Total offices 3,180.7 2,948.4
197.7 7.0
209.7 209.4
202.2
199.3 210.3
201.0 189.2
Other 744.4 676.2
53.8 7.8
46.7 46.0
47.8
48.2 47.6
49.6 47.2
Like-for-like portfolio11 7,748.9 7,080.1
582.6 8.4
505.4 499.2
496.9
485.6 495.7
513.9 489.4
Proposed developments12 170.5 71.0
27.7 19.4
4.2 10.3
2.3
2.2 8.9
9.6 9.6
Completed developments13 1,153.4 1,028.8
112.1 11.6
61.7 51.6
62.5
60.1 46.8
70.5 69.2
Acquisitions14 403.1 5.7
5.7 1.5
12.1
23.2
22.3 0.1
23.6 0.3
Sales and restructured interests15 670.1

16.5 60.5

21.9
52.9
Development programme16 1,083.0 684.7
171.9 19.4
29.3 23.6
38.4
25.4 25.2
103.4 82.2
Combined portfolio 10,558.9 9,540.4
900.0 9.7
629.2 645.2
623.3
595.6 598.6
721.0 703.6
Surplus on investment property
reclassified as trading



8.8 31.2




Properties treated as finance leases



(6.6) (6.4)





Combined portfolio


908.8 9.7
622.6 638.8






Gross estimated rental value7
Net initial yield8
Equivalent yield9
Voids (by ERV)10

31 March
2011
£m
31 March
2010
£m

31 March
2011
%
31 March
2010
%

31 March
2011
%
31 March
2010
%

31 March
2011
%
31 March
2010
%
Shopping centres and shops
Shopping centres and shops 150.1 150.5
6.2 6.5
6.5 7.0
5.9 8.1
Central London shops 50.1 41.0
4.2 4.8
5.2 5.4
4.4 6.3
200.2 191.5
5.6 6.0
6.1 6.5
5.5 7.7
Retail warehouses
Retail warehouses and food stores 73.5 72.4
5.2 5.8
5.7 6.3
3.3 1.9
Total retail 273.7 263.9
5.4 5.9
6.0 6.5
4.9 6.1
London offices
West End 96.8 91.4
6.0 6.2
5.9 6.1
3.3 4.2
City 30.0 27.6
5.3 6.6
6.0 6.6
7.7 12.3
Mid-town 26.2 24.7
3.8 6.3
6.0 7.0
4.2 2.4
Inner London 46.2 43.0
6.3 6.7
5.8 6.2
1.7 3.0
Total London offices 199.2 186.7
5.8 6.4
5.9 6.3
3.7 4.9
Rest of UK 4.3 4.4
8.0 7.8
9.1 9.0
7.0 15.9
Total offices 203.5 191.1
5.8 6.4
6.0 6.3
3.8 5.1
Other 49.4 47.4
6.3 6.8
6.4 6.9
2.8 1.3
Like-for-like portfolio11 526.6 502.4
5.7 6.2
6.0 6.4
4.3 5.3
Proposed developments12 9.6 9.6
4.4 4.8
4.5 5.2
n/a n/a
Completed developments13 71.9 70.5
4.7 4.0
5.6 6.1
n/a n/a
Acquisitions14 24.4 0.3
5.0 2.1
5.6 6.4
n/a n/a
Sales and restructured interests15 55.0
5.5
6.3
n/a n/a
Development programme16 104.9 84.5
1.9 1.4
5.4 6.1
n/a n/a
Combined portfolio 737.4 722.3
5.3 5.7
5.9 6.4
n/a n/a

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Total portfolio analysis

Market
value1

Valuation
surplus2

Rental
income3

Annualised
rental income4

Annualised
net rent5

Net estimated rental value6
31 March
2011
£m
31 March
2010
£m

Surplus/
(deficit)
£m
Surplus/
(deficit)
%

31 March
2011
£m
31 March
2010
£m

31 March
2011
£m

31 March
2011
£m
31 March
2010
£m

31 March
2011
£m
31 March
2010
£m
Shopping centres and shops
Shopping centres and shops 2,852.9 2,460.8
195.5 7.5
198.3 206.6
202.4
192.5 180.3
233.4 204.2
Central London shops 1,015.4 993.2
179.1 21.5
44.1 44.2
46.0
42.7 42.3
63.3 69.8

3,868.3 3,454.0
374.6 10.9
242.4 250.8
248.4
235.2 222.6
296.7 274.0
Retail warehouses
Retail warehouses and food stores 1,298.3 1,150.6
127.2 11.2
74.4 72.9
75.2
73.1 73.7
78.2 76.4
Total retail 5,166.6 4,604.6
501.8 11.0
316.8 323.7
323.6
308.3 296.3
374.9 350.4
London offices
West End 1,874.6 1,883.8
115.9 6.8
116.7 123.7
109.1
106.9 119.4
121.1 135.6
City 1,017.5 788.0
107.0 12.0
40.3 47.9
43.7
31.6 40.0
64.9 64.7
Mid-town 909.5 794.5
69.7 9.8
51.1 48.8
43.8
45.1 41.0
57.2 54.9
Inner London 726.2 678.1
55.9 8.8
50.0 48.8
48.1
48.8 49.1
45.4 43.5
Total London offices 4,527.8 4,144.4
348.5 8.8
258.1 269.2
244.7
232.4 249.5
288.5 298.7
Rest of UK 42.2 50.9
(6.2) (13.0) 3.7 4.0
3.6
3.7 3.6
4.3 5.7
Total offices 4,570.0 4,195.3
342.3 8.6
261.8 273.2
248.3
236.1 253.1
292.8 304.4
Other 822.3 740.5
55.9 7.3
50.6 48.3
51.4
51.2 49.2
53.3 48.8
Combined portfolio 10,558.9 9,540.4
900.0 9.7
629.2 645.2
623.3
595.6 598.6
721.0 703.6
Surplus on investment property reclassified as trading


8.8 31.2








Properties treated as finance leases



(6.6) (6.4)






Combined portfolio


908.8 9.7
622.6 638.8







Represented by:
Investment portfolio 9,190.9 8,285.4
794.1 9.8
550.0 566.2
545.8
519.7 525.6
637.0 612.8
Share of joint ventures 1,368.0 1,255.0
114.7 9.5
79.2 79.0
77.5
75.9 73.0
84.0 90.8
Combined portfolio 10,558.9 9,540.4
908.8 9.7
629.2 645.2
623.3
595.6 598.6
721.0 703.6

Gross estimated rental value7
Net initial yield8
Equivalent yield9
31 March
2011
%
31 March
2010
%

31 March
2011
%
31 March
2010
%

31 March
2011
%
31 March
2010
%
Shopping centres and shops
Shopping centres and shops 244.9 217.4
5.8 5.8
6.4 6.8
Central London shops 64.2 70.8
3.9 4.4
5.2 5.4

309.1 288.2
5.3 5.5
6.1 6.5
Retail warehouses
Retail warehouses and food stores 78.8 76.8
5.1 5.8
5.7 6.2
Total retail 387.9 365.0
5.2 5.5
6.0 6.4
London offices
West End 121.0 136.3
6.0 6.1
5.9 6.1
City 65.7 65.8
2.8 3.9
5.6 6.4
Mid-town 58.8 56.3
4.5 4.8
5.4 6.1
Inner London 46.2 43.8
6.3 6.7
5.8 6.2
Total London offices 291.7 302.2
4.7 5.4
5.6 6.3
Rest of UK 4.4 5.8
8.0 6.9
9.1 9.1
Total offices 296.1 308.0
5.1 5.6
5.7 6.2
Other 53.4 49.3
6.3 6.8
6.4 6.9
Combined portfolio 737.4 722.3
5.3 5.7
5.9 6.4
Represented by:
Investment portfolio 651.6 628.4
5.3 5.8
6.0 6.4
Share of joint ventures 85.8 93.9
4.9 4.8
5.5 6.3
Combined portfolio 737.4 722.3
5.3 5.7
5.9 6.4
  • Notes
  • 1. The market value figures include the Group's share of joint ventures, and are determined by the Group's valuers, in accordance with the RICS Valuation Standards.
  • 2. The valuation surplus is stated after adjusting for the effect of SIC 15 under IFRS.
  • 3. Rental income is as reported in the income statement, on an accruals basis, and adjusted for the spreading of lease incentives over the term certain of the lease in accordance with SIC 15. It is stated gross, prior to the deduction of ground rents and without deduction for operational outgoings on car park and commercialisation activities.
  • 4. Annualised rental income is annual 'rental income' (as defined in 3 above) at the balance sheet date, except that car park and commercialisation income are included on a net basis (after deduction for operational outgoings). Annualised rental income includes temporary lettings.
  • 5. Annualised net rent is annual cash rent, after the deduction of ground rents, as at the balance sheet date. It is calculated with the same methodology as annualised rental income but is stated net of ground rent and before SIC 15 adjustments.
  • 6. Net estimated rental value is gross estimated rental value, as defined in the glossary, after deducting expected ground rents.
  • 7. Gross estimated rental value (ERV) – refer to glossary.
  • 8. Net initial yield is a calculation by the Group's external valuers as the yield that would be received by a purchaser, based on the estimated net rental income expressed as a percentage of the acquisition cost, being the market value plus assumed usual purchasers' costs at the reporting date. This calculation is in line with EPRA guidance. Estimated net rental income is the passing cash rent less ground rent at the balance sheet date, estimated non-recoverable outgoings and void costs including service charges, insurance costs and void rates.
  • 9. Calculated by the Group's valuers, equivalent yield is the internal rate of return from an investment property, based on the gross outlays for the purchase of a property (including purchase costs), reflecting reversions to current market rent, and such items as voids and non-recoverable expenditure but disregarding potential changes in market rents. The calculation assumes rent is received annually in arrears.
  • 10. Voids – refer to glossary.
  • 11. The like-for-like portfolio includes all properties which have been in the portfolio since 1 April 2009 but excluding those which were acquired, sold or included in the development programme at any time during the period. Capital expenditure on refurbishments, acquisitions of head leases and similar capital expenditure has been allocated to the like-for-like portfolio in preparing this table.
  • 12. Proposed developments – refer to glossary.
  • 13. Completed developments represent those properties previously included in the development programme, which have been transferred from the development programme since 1 April 2009.
  • 14. Includes all properties acquired in the period since 1 April 2009.
  • 15. Includes all properties sold in the period since 1 April 2009.
  • 16. The development programme consists of authorised and committed developments, projects under construction and developments which have reached practical completion within the last two years but are not yet 95% let. Yield figures are only calculated for properties in the development programme that have reached practical completion.

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