National Storage Mechanism | Additional information

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	Pence per share	£m		Pence per share

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

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

1.4

13.6

3.8

Offices & Residential * **

2,958

1.3

8.9

4.2

Developments **

225

Residual methodology

101

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

At 1 April 2014

2,274

438

2,712

2,278

434

2,712

Additions

Disposals

(318)

(151)

(469)

(306)

(163)

(469)

Share of profit after taxation

661

726

Distributions and dividends:

Capital

(16)

Revenue

(104)

(21)

(125)

Hedging and exchange movements

(6)

(7)

(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
Property sector	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


¹Tesco 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. ²USS joint ventures include the Eden Walk Shopping Centre Limited Partnership and the Fareham Property Partnership. ³Hercules 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
³City 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
¹Net 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 Yields^1,2
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.
¹Including notional purchaser's costs
²Excluding developments under construction and assets held for development
³Including 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
At 31 March 2015	Group	JVs & Funds	Total	Total	Contracted^3,4	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.
¹Gross 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

Department stores

21.5

21.4

100.0

Leisure

18.9

18.8

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

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

Shopping parks

107

Shopping centres

Superstores

Department stores

Leisure

Retail & Leisure

134

230

West End

City

Offices

145

Total

208

375

Potential uplift at current ERV

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
¹Annualised 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
At 31 March 2015		%	'000		£m	£m^1,2	£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
At 31 March 2015	Sector	BL Share	'000	Start On Site	£m	Status
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
¹210,000 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
		BL Share	'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
At 31 March 2015	'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 Exposure^1,2,3
Store Size '000 SQ FT		N^o of Stores	Valuation (BL share) £m	Capital Value psf	WALL to FB yrs	N^o of Stores	Valuation (BL share) £m	Capital Value psf	WALL to FB yrs		N^o 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

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.

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).

Restaurants and cafes

For the sale of food and drink for consumption on the premises - restaurants, snack bars and cafes.

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

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FR UOOURVRAVAUR