Chris Grigg, Chief Executive said: "The business is in good shape and we've delivered a strong set of results. We have benefited from strengthening occupational and investment markets but the decisions and actions we have taken both this year and in previous years have been a significant contributor to our performance, driving around half our valuation uplift. These actions leave us well positioned going forward to take advantage of London's continuing success and improving demand for the best retail space."
Strong full year results
Underlying PBT +8.4% to £297million; IFRS PBT of £1,110 million (2013: £260 million)
EPRA NAV +15.4% to 688 pence; IFRS Net Assets at £7.1 billion (2013: £5.7 billion)
Quarterly dividend of 6.75 pence; bringing the full year to 27.0 pence (+2.3%)
Total accounting returns of 20.0% (2013: 4.6%)
Portfolio returns boosted by our actions along with strengthening markets
UK portfolio valuation +8.3%: Retail valuation +4.4% and Offices/Residential valuation +14.5%
Asset management and developments contributed almost half the valuation uplift
Continued outperformance vs IPD benchmarks: total property returns of 14.2% (+60bps); capital returns of 8.9% (+140bps)
Increased letting activity driven by improving occupier demand
Investment lettings/renewals 6.3% ahead of ERV; leasing activity adds £24.0 million of new rent
Demand in Retail broader and higher quality: investment lettings/renewals 4.9% ahead of ERV; like for like occupancy increased by 100bps to 98.6%
Increased Office letting activity across all locations, like for like occupancy +190 bps to 98.1%; investment lettings/renewals 8.4% ahead of ERV
Significant investment adding to core income and replenishing development pipeline
Investment of £1.3 billion (acquisitions and development) focused on London and South East
Successfully deployed March 2013 equity placing proceeds ahead of schedule; accretive to earnings (0.5 pence per share) and NAV (6 pence per share)
Acquired 1.1 million sq ft development potential including Paddington Central and Blossom St, Shoreditch
Total recently committed/near-term pipeline now 2.0 million sq ft
Increased development returns as 2010 programme completes with further pre-lets
820,000 sq ft of developments successfully completed during the year in West End
Programme now 76% pre-let securing £57.3 million of rent; 96% of residential units sold/under offer
£608 million of development profits from 2010 office programme with £45 million to come based on valuers' estimates
Taking advantage of stronger debt markets to raise £1.5 billion of new finance
£1.5 billion of low cost new borrowings agreed during the last 12 months
Weighted average interest rate lower at 4.1% (proportionally consolidated) (2013: 4.6%)
Proportionally consolidated LTV at 40% (31 March 2013: 40%)
