Combined portfolio analysis
The like-for-like portfolio
| Market value8 | Valuation surplus1 | Rental income | Annual net rent9 | Annual net estimated rental value10 |
||||||
| 31 March 2010 £m |
31 March 2009 £m |
Surplus/ (deficit) £m |
Surplus/ (deficit) % |
31 March 2010 £m |
31 March 2009 £m |
31 March 2010 £m |
31 March 2009 £m |
31 March 2010 £m |
31 March 2009 £m |
|
| Shopping centres and shops | ||||||||||
| Shopping centres and shops | 1,845.8 | 1,665.4 | 171.7 | 10.3 | 162.0 | 177.0 | 145.0 | 151.5 | 153.5 | 164.4 |
| Central London shops | 779.7 | 735.9 | 43.2 | 5.9 | 40.5 | 40.1 | 41.3 | 41.4 | 46.9 | 46.3 |
| 2,625.5 | 2,401.3 | 214.9 | 9.0 | 202.5 | 217.1 | 186.3 | 192.9 | 200.4 | 210.7 | |
| Retail warehouses | ||||||||||
| Retail warehouses and food stores | 1,086.8 | 881.9 | 192.6 | 22.3 | 66.3 | 70.9 | 70.5 | 70.0 | 72.8 | 76.4 |
| Total retail | 3,712.3 | 3,283.2 | 407.5 | 12.5 | 268.8 | 288.0 | 256.8 | 262.9 | 273.2 | 287.1 |
| London offices | ||||||||||
| West End | 1,428.7 | 1,326.2 | 100.2 | 7.8 | 98.7 | 104.9 | 100.8 | 102.7 | 93.5 | 102.9 |
| City | 456.1 | 414.9 | 41.0 | 9.9 | 40.1 | 44.0 | 39.7 | 44.9 | 39.1 | 40.6 |
| Mid-town | 227.6 | 221.2 | (4.3) | (2.7) | 19.3 | 19.0 | 18.5 | 19.3 | 17.1 | 19.1 |
| Inner London | 684.3 | 611.3 | 62.6 | 10.6 | 48.7 | 47.0 | 49.0 | 30.0 | 43.5 | 50.1 |
| Total London offices | 2,796.7 | 2,573.6 | 199.5 | 8.2 | 206.8 | 214.9 | 208.0 | 196.9 | 193.2 | 212.7 |
| Rest of UK | 45.9 | 45.6 | 0.2 | 0.4 | 0.8 | 0.9 | 3.5 | 4.3 | 5.4 | 5.3 |
| Total offices | 2,842.6 | 2,619.2 | 199.7 | 8.0 | 207.6 | 215.8 | 211.5 | 201.2 | 198.6 | 218.0 |
| Other | 619.4 | 569.3 | 40.9 | 7.1 | 37.9 | 41.4 | 44.5 | 42.8 | 44.0 | 44.0 |
| Like-for-like portfolio2 | 7,174.3 | 6,471.7 | 648.1 | 10.2 | 514.3 | 545.2 | 512.8 | 506.9 | 515.8 | 549.1 |
| Proposed developments3 | 336.2 | 318.3 | (17.1) | (4.9) | 15.0 | 17.1 | 13.7 | 14.1 | 21.0 | 22.7 |
| Completed developments4 | 1,014.6 | 878.1 | 125.2 | 15.2 | 62.2 | 51.2 | 54.8 | 41.4 | 55.6 | 57.9 |
| Acquisitions5 | 32.4 | 27.2 | 3.2 | 8.1 | 2.1 | 0.9 | 2.7 | 1.2 | 3.3 | 1.6 |
| Sales6 | – | 1,058.6 | – | – | 37.5 | 105.7 | – | 81.8 | – | 86.2 |
| Development programme7 | 982.9 | 653.1 | 104.4 | 11.9 | 14.1 | 7.7 | 14.6 | 10.2 | 107.9 | 76.0 |
| Combined portfolio | 9,540.4 | 9,407.0 | 863.8 | 10.3 | 645.2 | 727.8 | 598.6 | 655.6 | 703.6 | 793.5 |
| Properties treated as finance leases | (6.4) | (8.4) | ||||||||
| Combined portfolio | 638.8 | 719.4 | ||||||||
Total portfolio analysis
| Market value8 | Valuation surplus1 | Rental income | Annual net rent9 | Annual net estimated rental value10 |
||||||
| 31 March 2010 £m |
31 March 2009 £m |
Surplus/ (deficit) £m |
Surplus/ (deficit) % |
31 March 2010 £m |
31 March 2009 £m |
31 March 2010 £m |
31 March 2009 £m |
31 March 2010 £m |
31 March 2009 £m |
|
| Shopping centres and shops | ||||||||||
| Shopping centres and shops | 2,460.3 | 2,587.6 | 185.9 | 8.3 | 212.0 | 234.4 | 181.2 | 212.9 | 205.1 | 256.9 |
| Central London shops | 989.3 | 976.1 | 39.7 | 4.2 | 43.7 | 45.5 | 42.3 | 47.4 | 69.8 | 66.3 |
| 3,449.6 | 3,563.7 | 225.6 | 7.1 | 255.7 | 279.9 | 223.5 | 260.3 | 274.9 | 323.2 | |
| Retail warehouses | ||||||||||
| Retail warehouses and food stores | 1,150.6 | 1,123.6 | 206.0 | 22.5 | 74.1 | 95.0 | 73.7 | 87.3 | 76.3 | 95.8 |
| Total retail | 4,600.2 | 4,687.3 | 431.6 | 10.5 | 329.8 | 374.9 | 297.2 | 347.6 | 351.2 | 419.0 |
| London offices | ||||||||||
| West End | 1,883.8 | 1,841.7 | 153.6 | 9.1 | 124.0 | 141.0 | 119.4 | 132.7 | 135.6 | 128.1 |
| City | 788.0 | 732.7 | 88.6 | 12.7) | 48.0 | 53.9 | 40.0 | 51.5 | 64.7 | 76.0 |
| Mid-town | 794.5 | 783.2 | 84.7 | 14.4 | 53.6 | 62.4 | 41.0 | 40.6 | 54.9 | 66.5 |
| Inner London | 684.3 | 611.4 | 62.6 | 10.6 | 49.1 | 48.8 | 49.1 | 30.3 | 43.5 | 50.5 |
| Total London offices | 4,150.6 | 3,969.0 | 389.5 | 10.9 | 274.7 | 306.1 | 249.5 | 255.1 | 298.7 | 321.1 |
| Rest of UK | 46.7 | 51.1 | (0.1) | (0.1) | 1.3 | 1.7 | 3.5 | 4.2 | 5.6 | 4.9 |
| Total offices | 4,197.3 | 4,020.1 | 389.4 | 10.8 | 276.0 | 307.8 | 253.0 | 259.3 | 304.3 | 326.0 |
| Other | 742.9 | 699.6 | 42.8 | 6.1 | 39.4 | 45.1 | 48.4 | 48.7 | 48.1 | 48.5 |
| Combined portfolio | 9,540.4 | 9,407.0 | 863.8 | 10.3 | 645.2 | 727.8 | 598.6 | 655.6 | 703.6 | 793.5 |
| Properties treated as finance leases | (6.4) | (8.4) | ||||||||
| Combined portfolio | 638.8 | 719.4 | ||||||||
| Represented by: | ||||||||||
| Investment portfolio | 8,285.4 | 8,165.5 | 746.0 | 10.2 | 566.2 | 649.7 | 525.6 | 572.8 | 612.7 | 682.6 |
| Share of joint ventures | 1,255.0 | 1,241.5 | 117.8 | 10.6 | 79.0 | 78.1 | 73.0 | 82.8 | 90.9 | 110.9 |
| Combined portfolio | 9,540.4 | 9,407.0 | 863.8 | 10.3 | 645.2 | 727.8 | 598.6 | 655.6 | 703.6 | 793.5 |
The like-for-like portfolio
| Net initial yield13 | Equivalent yield14 | Annual gross estimated rental value11 |
Voids (by ERV)15 | Lease length at 31 March 201012 |
||||||
| 31 March 2010 % |
31 March 2009 % |
31 March 2010 % |
31 March 2009 % |
31 March 2010 £m |
31 March 2009 £m |
31 March 2010 % |
31 March 2009 % |
Median years (i) |
Mean years (ii) |
|
| Shopping centres and shops | ||||||||||
| Shopping centres and shops | 6.3 | 7.2 | 6.8 | 8.1 | 164.2 | 175.3 | 7.9 | 7.2 | 6.2 | 7.6 |
| Central London shops | 4.9 | 5.1 | 5.5 | 5.8 | 47.6 | 46.6 | 5.9 | 1.1 | 4.1 | 6.2 |
| 5.9 | 6.5 | 6.4 | 7.4 | 211.8 | 221.9 | 7.5 | 5.9 | 5.6 | 7.3 | |
| Retail warehouses | ||||||||||
| Retail warehouses and food stores | 5.8 | 6.9 | 6.3 | 7.9 | 73.3 | 76.9 | 1.9 | 1.8 | 10.1 | 11.2 |
| Total retail | 5.9 | 6.6 | 6.4 | 7.5 | 285.1 | 298.8 | 6.0 | 4.9 | 7.0 | 8.4 |
| London offices | ||||||||||
| West End | 6.2 | 7.1 | 6.2 | 7.3 | 94.1 | 103.4 | 6.1 | 7.0 | 5.8 | 8.0 |
| City | 7.2 | 9.5 | 6.9 | 8.0 | 40.1 | 42.7 | 11.5 | 2.3 | 2.0 | 4.8 |
| Mid-town | 7.6 | 8.1 | 6.4 | 7.6 | 17.8 | 19.8 | 2.2 | 0.5 | 3.1 | 8.9 |
| Inner London | 6.7 | 4.1 | 6.2 | 7.6 | 43.8 | 50.1 | 3.4 | 8.8 | 5.9 | 9.7 |
| Total London offices | 6.6 | 6.9 | 6.4 | 7.5 | 195.8 | 216.0 | 6.2 | 5.9 | 5.0 | 7.8 |
| Rest of UK | 5.9 | 8.4 | 9.0 | 9.6 | 5.6 | 5.6 | 28.6 | 8.9 | 3.5 | 4.5 |
| Total offices | 6.6 | 6.9 | 6.4 | 7.6 | 201.4 | 221.6 | 6.9 | 6.0 | 5.0 | 7.7 |
| Other | 7.1 | 7.3 | 7.2 | 7.6 | 44.1 | 44.0 | 0.9 | 0.7 | 8.6 | 12.6 |
| Like-for-like portfolio2 | 6.3 | 6.8 | 6.5 | 7.5 | 530.6 | 564.4 | 5.9 | 5.0 | 6.4 | 8.5 |
| Proposed developments3 | 3.7 | 4.6 | 6.8 | 6.7 | 21.0 | 22.7 | 9.5 | 9.5 | 2.9 | 9.7 |
| Completed developments4 | 5.0 | 4.0 | 5.9 | 6.8 | 56.9 | 59.5 | 2.1 | 7.4 | 15.1 | 13.1 |
| Acquisitions5 | 4.9 | 5.5 | 5.6 | 7.3 | 3.5 | 1.8 | 5.7 | 22.2 | 3.1 | 7.3 |
| Sales6 | – | 7.3 | – | 7.6 | – | 87.8 | n/a | n/a | n/a | n/a |
| Development programme7 | 1.9 | 3.9 | 3.9 | 7.8 | 110.3 | 110.3 | n/a | n/a | n/a | n/a |
| Combined portfolio | 5.8 | 6.3 | 6.4 | 7.5 | 722.3 | 814.7 | n/a | n/a | 7.0 | 9.0 |
Total portfolio analysis
| Net initial yield13 | Equivalent yield14 | |||
| 31 March 2010 % |
31 March 2009 % |
31 March 2010 % |
31 March 2009 % |
|
| Shopping centres and shops | ||||
| Shopping centres and shops | 5.8 | 6.7 | 6.8 | 7.9 |
| Central London shops | 4.9 | 5.1 | 5.5 | 5.8 |
| 5.6 | 6.3 | 6.5 | 7.4 | |
| Retail warehouses | ||||
| Retail warehouses and food stores | 5.8 | 6.9 | 6.2 | 8.0 |
| Total retail | 5.6 | 6.4 | 6.4 | 7.5 |
| London offices | ||||
| West End | 6.1 | 6.9 | 6.2 | 7.2 |
| City | 5.9 | 9.4 | 6.7 | 7.8 |
| Mid-town | 4.7 | 5.1 | 6.1 | 7.4 |
| Inner London | 6.7 | 4.1 | 6.2 | 7.6 |
| Total London offices | 5.9 | 6.4 | 6.3 | 7.4 |
| Rest of UK | 5.6 | 8.3 | 9.1 | 9.6 |
| Total offices | 5.9 | 6.4 | 6.3 | 7.4 |
| Other | 6.7 | 4.4 | 6.8 | 5.5 |
| Combined portfolio | 5.8 | 6.3 | 6.4 | 7.5 |
| Represented by: | ||||
| Investment portfolio | 6.0 | 6.4 | 6.4 | 7.5 |
| Share of joint ventures | 4.8 | 5.9 | 6.2 | 7.2 |
| Combined portfolio | 5.8 | 6.3 | 6.4 | 7.5 |
Notes:
- The valuation surplus is stated after adjusting for the effect of SIC 15 under IFRS.
- The like-for-like portfolio includes all properties which have been in the portfolio since 1 April 2008 but excluding those which were acquired, sold or included in the development programme at any time during that period. Capital expenditure on refurbishments, acquisitions of headleases and similar capital expenditure has been allocated to the like-for-like portfolio in preparing this table. Changes in valuation from period-to-period reflect this capital expenditure as well as the disclosed valuation deficits.
- Proposed developments are properties which have not yet received final Board approval or are still subject to main planning conditions being satisfied.
- Completed developments represent those properties previously included in the development programme, which have been transferred from the development programme since 1 April 2008.
- Includes all properties acquired in the period since 1 April 2008.
- Includes all properties sold in the period since 1 April 2008.
- 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.
- The market value figures include the Group’s share of joint ventures, and is determined by the Group’s valuers, in accordance with the RICS Valuation Standards.
- Annual net rent is annual cash rent at 31 March 2010 including units in administration where leases have not yet been disclaimed after deduction of ground rents. It excludes the value of voids and current rent-free periods.
- Annual net estimated rental value is annual gross estimated rental value, as defined in note 11 below, after deducting expected ground rents.
- Annual gross estimated rental value (ERV) represents the Group’s valuers’ views of market rent at the reporting date for all properties except ongoing developments where the Group estimates the gross rental value.
- The definition for the figures in each column is:
- Median is the number of years until half of income is subject to lease expiry/break clauses.
- Mean is the rent-weighted average remaining term on leases subject to lease expiry/break clauses.
- Net initial yield – refer to glossary.
- Equivalent yield – refer to glossary.
- Voids – refer to glossary.
