Growth in NAV, income, earnings and dividend
EPRA NAV increased by 25.7% to £7.13 (2013: £5.67).
Net asset value return, before dividends: 28.0% (2013: 16.3%)
Net property income up £6.5 million (8.9%) to £79.7 million (2013: £73.2 million).
EPRA earnings increased by 7.9% to £32.6 million (2013: £30.2 million). EPRA earnings per share increased by 1.7% to 12.2p (2013: 12.0p).
Final dividend per share of 6.6p (2013: 6.25p), an increase of 5.6%. Total dividend for the year 13.1p, 4.8% above 2013 (12.5p), virtually fully covered by recurring cash earnings.
Continued strong demand across all the portfolio
Vacant space available to let at 30.9.2014: 0.6% of ERV.
Commercial lettings, lease renewals and rent reviews with a rental value of £20.2 million concluded in the year:
o Lettings and renewals at an average 5.5% above 30 September 2013 ERV.
o Rent reviews 26.3% above previous rents.
Residential lettings and renewals: £4.9 million.
Strong growth in rental and capital values
Portfolio capital value return (like-for-like): +21.0%. 3-year compound annualised growth rate: +11.8%.
Annualised current income at 30.9.2014: £93.5 million (2013: £85.9 million). Like-for-like increase: +8.8%.
Total portfolio ERV increased by £12.7 million to £118.6 million (2013: £105.9 million). Like-for-like ERV growth: 6.6%, with good rental growth across all uses.
Portfolio reversion has grown by £5.1 million to £25.1 million, of which acquisitions added £2.5 million. This is the largest reversion in our history.
Equivalent yield compression of 55 basis points to 4.00% in the wholly owned portfolio and 48 basis points to 4.10% in the Longmartin joint venture.
Significant investment to add to and improve our portfolio
Acquisitions totalling £107.9 million in the period, including two strategic purchases: Newport Sandringham, Chinatown and 57-59 Broadwick Street, Carnaby.
Redevelopment and refurbishment schemes across 154,000 sq. ft. (8.9% of wholly owned floor space). We are unlocking value through an acceleration of capital projects and asset management initiatives across the portfolio.
Financing arrangements to grow and develop the business
Share placing in March 2014 at £6.20 per share raised £153.2 million (net of expenses).
Completed restructuring of £225 million of facilities which were due to mature in 2016.
Weighted average maturity of debt: 7.1 years (2013: 5.8 years).
Committed unutilised facilities to fund acquisitions and improvements to our portfolio: £139.4 million.
Conservative gearing (loan-to-value ratio: 23.6%).
Brian Bickell, Chief Executive, commented:
"Our portfolio - unique in its concentration in the heart of London's West End and its focus on retail, restaurant and leisure uses - is underpinned by London's reputation as a leading global city and its dynamic economy. Both near-term and longer-range forecasts anticipate continuing growth in London's working and residential population and economic performance.
Our proven, long-term approach to creating and maintaining busy and prosperous environments continues to attract strong demand from operators specifically seeking space in our carefully-curated and lively locations. The current strength of demand across all uses, which shows no sign of slowing, continues to deliver increases in both income and rental values.
We remain confident we shall continue to deliver long-term outperformance in growth in income, capital values and shareholder returns."
