Our financial position

Financial results

The Group’s financial results fairly reflect the successful execution of our strategic priorities and a recovering central London market. Timely acquisitions and our growing development programme have boosted the key balance sheet values compared to last year.

Net asset value

EPRA net assets per share at 31 March 2011 was 360 pence per share, an increase of 27.2% in the last year, largely because of the rise in value of the property portfolio. At 31 March 2011, the Group’s net assets were £1,112.7 million, up from £876.7 million at 31 March 2010.


The main factors behind the 77 pence per share increase in EPRA net assets per share (“NAV”) from the 31 March 2010 value were:

  • the rise of 61 pence per share arising from the revaluation of the property portfolio. Of this amount, development properties boosted NAV by around 10 pence;
  • further payments from Transport for London for the compulsory purchase of 18/19 Hanover Square, W1 enhanced NAV by 8 pence per share;
  • EPRA earnings for the year of 16 pence per share enhanced NAV; and
  • dividends of 8 pence reduced NAV.

Triple net assets per share (“NNNAV”) was 362 pence per share at 31 March 2011 compared to 291 pence per share at 31 March 2010 (up 24.4%). At the year end the difference between adjusted net assets per share and NNNAV was the positive mark to market of debt of 2 pence, mainly arising from the relatively low interest rate of the Group’s 2029 debenture. There was no net movement in deferred tax provisions during the year.

Income statement and earnings per share

Although we have had a good leasing year, the income statement is witnessing the short-term effects of investing in our development and refurbishment projects. On an EPRA basis, profit before tax and earnings per share are up materially on last year.

Rental income from wholly-owned properties was £63.7 million, up 39.4% on last year. Rental income was pushed up by the lease surrender with Telewest UK Limited at 160 Great Portland Street, W1. In December 2010 we agreed with Telewest that they surrender their leases in two tranches for £30.0 million; £25.3 million was received in December 2010, the remainder of £4.7 million was received in April 2011. For the financial year under review the £25.3 million premium has been split between rental income of £3.8 million, for the period of occupation, and a net surrender premium of £21.5 million. Rental income before surrender premium was lower than last year due to transfers of income producing assets into joint venture and lease terminations ahead of refurbishment and development projects. Excluding surrender premiums, Group rental income was £42.2 million, down £3.5 million or 7.7% on the same period in 2010. Adjusting for acquisitions, disposals and transfers to and from the development programme, like-for-like rental income was stable on the prior year.

Joint venture fees for the year were £4.1 million, up 36.6% on last year. This increase was a result of the creation of the 100 Bishopsgate Partnership on 31 March 2010 and the Great Star Partnership during the year.