Glossary of terms
Adjusted NAV per share is NAV excluding deferred tax on revaluation surpluses and capital allowances (as existed prior to conversion to a REIT) and the fair value of derivative financial instruments (net of tax).
Adjusted net assets are shareholders’ funds excluding deferred tax on revaluation surpluses (as existed prior to conversion to a REIT), capital allowances and the fair value of derivative financial instruments (net of tax).
Comparator IPD Index is a benchmark index computed by IPD of comparable properties in comparable locations to those held by the Group.
Core portfolio (like-for-like portfolio) are those properties that have been held throughout the period and which are not subject to significant improvement /refurbishment works.
Diluted NAV per share is NAV adjusted for the effect of those shares potentially issuable under convertible loan stock or employee share schemes.
Earnings per share (EPS) is the profit after taxation divided by the weighted average number of shares in issue during the period. Diluted and Adjusted EPS are determined as set out under NAV.
Employee Share Ownership Trust (ESOT) is the trust created by the Group to hold shares pending exercise of employee share options.
EPRA NAV is the definition of net asset value as set out by the European Public Real Estate Association.
Equivalent Yield is a weighted average of the initial yield and reversionary yield and represents the return a property will produce based upon the timing of the income received.
Estimated rental value (ERV) or market rental value is the Group’s 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.
Gearing is the Group’s net debt as a percentage of net assets.
Initial yield is the net rents generated by a property or by the portfolio as a whole expressed as a percentage of its valuation.
Interest cover is the number of times net interest payable is covered by operating profit.
IPD is the Investment Property Databank Ltd, a company that produces an independent benchmark of property returns.
Like-for-like (see core portfolio).
Market rental values (see ERV).
Net assets per share (NAV) are shareholders’ funds, divided by the number of shares in issue at the period end (excluding shares held in the ESOT).
Net rents are current rents excluding any contracted increases and after deduction of inclusive service charge revenue.
NI on share options is the national insurance charge expected to be paid on the exercise of share options, as calculated by the Black Scholes model in accordance with IFRS2.
Occupancy percentage is the area of space let divided by the total net lettable area (excluding land used for open storage).
Open market value is an opinion of the best price at which the sale of an interest in the property would complete unconditionally for cash consideration on the date of valuation (as determined by the Group’s external valuers).
Other Items in the Income Statement include profits and losses (together with their related taxation) on sales of investment properties and items of a non trading nature such as: valuation adjustments arising from the fair valuing of investment properties and derivative financial instruments; adjustments arising from the treatment of head lease payments as interest; insurance claim proceeds; and certain adjustments arising from the estimation of the cost of employee share based payments.
Profit before tax (PBT) is income less all expenditure other than taxation.
Real Estate Investment Trust (REIT)is a listed public company that fulfils the qualification criteria set by FA 2006 § 106 and 107 and has notified HMRC that it wishes to convert. REITs pay no corporation tax on their property income.
Rent per sq ft is the current net rent divided by the occupied area.
Reversion is the increase in rent estimated by the Group’s external valuers, where the net rent is below the current estimated rental value. The increases to rent arise on rent reviews, letting of vacant space and expiry of rent free periods or rental increase steps.
Reversionary yield is the anticipated yield, which the initial yield will rise to once the rent reaches the estimated rental value. It is calculated by dividing the ERV by the valuation.
SEE means Social Ethical and Environmental matters. The Group produces a separate SEE report. The most recent report is entitled Sustainability Report 2007.
Small and Medium Sized Enterprises (SMEs) are those businesses with a turnover of less than £1m p.a. or staff of less than 50. Most Workspace customers are SME businesses with staffing of up to 20.
Total Shareholder Return (TSR) is the return obtained by a shareholder calculated by combining both share price movements and dividend receipts.
Trading Operations/earnings/PBT etc is that element of earnings/PBT etc that arises from trading activity alone. It therefore excludes Other Items (above).
Valuation Surplus and growth rate is measured as the valuation surplus for the period divided by the total value of the portfolio immediately before revaluation.
