Good first half results
Underlying PBT + 6.6% to £146 million; IFRS PBT of £422 million (H1 2012/13: £109 million)
EPRA NAV +4.5% to 623 pence; IFRS Net Assets at £6.1 billion (FY 2012/13: £5.7 billion)
Quarterly dividend of 6.75 pence; bringing the half year to 13.5 pence (+2.3%)
Total accounting return of 6.8% for 6 months
Portfolio returns boosted by stronger performance from standing investments
UK portfolio valuation +2.8%: Retail valuation +1.5% and Offices valuation +5.0%
Standing investments +2.1%: improving retail performance and further strength in London offices
Continued strong performance from developments +8.9%
Continued outperformance vs IPD benchmarks: All property total returns +60 bps; capital returns +100 bps
Significant investment activity further enhancing future growth potential
Gross investment activity of £1.2 billion focused on core markets/London and the South East
Fully deployed equity placing proceeds; expected to be accretive to 2013/14 earnings, ahead of expectations
Sold/exchanged £190 million UK retail assets; reinvested £101 million in SouthGate, Bath
Sold Puerto Venecia in Spain reducing Europe exposure to 1%
Successfully replenishing developments: recently committed/near-term pipeline over £1.1 billion
Acquisitions of Paddington Central and the Shoreditch Estate add over 700,000 sq ft (£412 million) to near term pipeline
Planning permission successfully achieved on 600,000 sq ft at Clarges, The Hempel and Aldgate Place; expect to start on site later this year
Completing and letting up 2010 London development programme: now 68% let/pre-let
637,000 sq ft of developments completed during the half in the West End
1.5 million sq ft of London development space now let/under-offer securing £51.5 million of rent
10 Brock Street offices fully let less than 3 months after practical completion
£400 million of development profits from 2010 office programme with £90 million to come based on valuers estimates
Increased leasing activity driven by stronger demand from broad range of high quality occupiers
Investment lettings/renewals, 5.4% ahead of ERV; leasing activity adds £14.1 million of new rent
Broader and higher quality demand in Retail: investment lettings/renewals 3.8% ahead of ERV; occupancy increased by 60bps to 98%
Continuing to capture demand in London: Offices investment lettings/renewals 9.5% ahead of ERV; occupancy at 94.7% including newly completed developments, up 170 bps on a like-for-like basis
Strong financial position with continued access to low cost finance
£610 million of low cost new borrowings agreed since the beginning of the year
Weighted average interest rate reduced from 4.6% to 4.2% (proportionally consolidated)
Proportionally consolidated LTV at 42.3% (31 March 2013: 40.2%)
Chris Grigg, Chief Executive said: "Our business is in good shape as evidenced by our good first half results and we are executing smartly, with conviction and according to plan. We expect to benefit from the decisions we have made over the last few years to reshape our portfolio which have increased our exposure to London and the South East; replenished our development pipeline; and further focused our retail portfolio on the best locally dominant assets. All of these decisions have positioned us well both for stronger profit growth and total returns."
