28 March 2013
Real Estate Investors plc
(“REI” or the “Company” or the “Group”)
Preliminary announcement of results
For the year ended 31 December 2012
Real Estate Investors PLC (AIM: RLE), a property company focussed on investing in commercial property principally in the Midlands, today announces its preliminary results for the year ended 31 December 2012.
Financial Highlights
· Recurring Profit before tax of £1.4 million (2011: £0.1 million)
· Profit before tax of £1.0 million (2011: loss of £6.7 million)
· EPRA EPS of 0.8p (2011: 0.1p)
· Portfolio valuation up 0.3%
· EPRA NAV per share up 2.6% to 56.1p (2011: 54.7p)
· EPRA NNNAV per share 54.6p (2011: 54.6p)
· Maiden dividend payment of 0.5p in respect of 2012 financial year
· Net loan to value 49% (2011: 46%), gross debt £40.6m (2011: £37.4m), cash £2.7m (2011: £4.5m), weighted average debt maturity 8.6 years (2011: 8 years)
Operational Highlights
· Gross property assets valued at £77.4 million (2011: £71.2 million) up 9%
· Contracted rental income up 10% to £6.6 million (2011: £6.0 million)
· Lease surrender premium £0.6 million (2011: £nil)
· 3 acquisitions totalling £6.5 million at an average net initial yield of 11.65%, plus additional space to let
· Sale of Birmingham land for £350,000, 22.3% above book value
· 51,623 sq ft of new lettings and 12,343 sq ft of lease renewals completed in the period adding £0.9 million rent per annum with a further £164,000pa in solicitors’ hands as at 22 March 2013
· Overall occupancy level is at 86.5% (2011: 85%)
Chairman, John Crabtree, said:
“We have continued to actively manage the portfolio as well as make further earnings enhancing acquisitions from distressed sellers. As a result we have seen real progress in profitability as well as announced the payment of our inaugural dividend. It remains our intention that this should be the beginning of a progressive dividend policy.
Despite the challenging conditions, our in depth knowledge of the Midlands market in which we operate resulted in a flat occupancy rate at year end. We expect this figure to improve as a number of lettings which are currently in solicitors’ hands are concluded.
Our active asset management resulted in valuation uplifts on a number of our properties over the year whilst overall property valuations in the regions continue to be flat or slightly negative. Looking ahead, we are encouraged by the growing level of tenant enquiries we are experiencing. We expect that an improving occupational market coupled with an increasing level of investor demand in our market should impact favourably on valuations in the foreseeable future.”
For further information:
|
Real Estate Investors Paul Bassi |
+44 (0)121 265 6400
|
|
Smith & Williamson Corporate Finance Limited Azhic Basirov / Siobhan Sergeant
|
+44 (0)20 7131 4000 |
|
Liberum Capital Chris Bowman / Richard Bootle |
+44 (0)20 3100 2000
|
Notes to Editors
REI is an AIM listed property investment company with a £77.4m (as at Dec 2012) commercial and residential portfolio principally in the West Midlands and central England.
REI is focused on delivering shareholder value through returns generated from strong yields and capital enhancements. This is achieved by targeting investments in orphaned, distressed, part-let and underperforming commercial and residential property assets.
REI is led by respected property investor Paul Bassi CBE, who has over 25 years of property experience in the West Midlands. Mr Bassi is also founder and non-executive chairman of Bond Wolfe and non-executive chairman of CP Bigwood Chartered Surveyors. REI was admitted to trading on AIM in June 2004. Further information on REI can be found at www.reiplc.barques.dev.
Chief Executive’s Statement
Overview
I am delighted to report our results for the year in which we made profit before tax of £1,002,000 (2011: £6,692,000 loss), and paid our inaugural dividend of 0.5 pence for 2012. It is intended, but of course subject to future financial performance, that this is the beginning of a progressive dividend policy.
The economic backdrop has remained fragile, and for most of the year, sentiment has been negative, with property valuations in the regions broadly flat. However, we have seen a significant improvement in our occupier enquiries, and for the first time in five years, an improving investor market that is looking to the region for opportunities to attain capital growth and superior yields to those achieved in London and the South East.
Investors seeking to buy in our region include insurance companies, traditional funds, opportunity funds, public and private property companies. This investor demand and vastly improved availability of bank debt, will, I believe, impact on valuations during 2013/2014, across our region and portfolio. This view is shared by a number of leading surveying firms and expert commentators.
This year has seen a valuation uplift in a number of our assets, where new lettings, renewals and other asset management initiatives have been implemented. We anticipate further upside yield compression and asset management opportunities throughout the portfolio.
The fair value movement charge on our financial instrument of £320,000 is a reflection of the market’s view on long term interest rates and it is a non-cash item. In total, we now have a provision of £5.3 million which even if there is no change in the interest rate environment, will decrease in the future, and we would expect to be in a position to recover the entire £5.3 million provision. Since the year end, and as at March 1st, the hedge cost has improved by £340,000 in our favour.
Property Portfolio/Leasing Activity
Over the last few years, our underperforming assets have been our prime city centre stock, this is where we have seen the biggest improvement in enquiries, and where we believe we will see capital growth due to improving investor demand, bank lending and yield compression. The differential in yields between the London, South East market and the West Midlands is excessive, and all market experts are predicting a narrowing of this differential.
At year end, our contracted rental income had risen by 10% to £6.6m. Over the period we completed two lease renewals (totalling 12,343 sq ft and generating £0.2 million rent) and 25 new lettings (totalling 51,623 sq ft and generating £0.7 million rent).
New tenants include AFH Financial Group Plc at Avon House in Bromsgrove. The letting is for a term of 11 years, with a tenant break in September 2018, at a commencing rent of £173,000 per annum, rising to £202,000 per annum at the first review. We also secured a surrender premium of £640,000 at our Metro Court site, and simultaneously we are in negotiation to let the space to the local authority. We maintain our investment spread and diversity, with no excessive exposure to a single tenant or occupier.
Many of the lettings we have completed over the last few years, have been at relatively ‘soft’ rental levels with a strengthening market and improving demand we anticipate a reduction in incentives and rent free periods which should lead to an uplift in rental values in due course.
Occupancy at year end was 86.5% (2011: 85%). We anticipate further improvement in our occupancy levels throughout the coming year based upon existing enquiries and viewings in the latter part of 2012 and early 2013.
The weighted average lease length of the portfolio was 5.5 years at period end (2011: 5.1 years) or 4.2 years to first break (2011: 3.4 years).
Portfolio Valuation
Portfolio valuation at 31 December 2012
|
|
£m |
% |
|
Core Portfolio |
|
|
|
Offices |
|
|
|
Birmingham |
25.8 |
33.4 |
|
Other West Midlands |
22.4 |
28.9 |
|
Total Offices |
48.2 |
62.3 |
|
Total Retail |
21.9 |
28.3 |
|
Total Core Portfolio |
70.1 |
90.6 |
|
Non Core Portfolio |
7.3 |
9.4 |
|
Total Portfolio |
77.4 |
100.0 |
The independent valuation of the Group’s property portfolio at 31 December 2012 totalled £77.4m compared with £71.2 million at 31 December 2011. The like for like portfolio valuation uplift was 0.3%. The IPD Monthly Index All Property declined by 4.2% over the same period.
At 31 December 2012, the portfolio net initial yield was 8.6% (2011: 8.4%).
Our non Birmingham City centre offices and retail stock in West Bromwich, Walsall, Bromsgrove and Kings Heath have performed well. Occupier demand here has been stable and secure and a number of occupiers are looking to make long term lease commitments during 2013.
Our investments in Leicester let to KPMG, and a retail park in Derby where we have submitted a planning application for a 45,000 sq ft food store, continue to perform well. A successful planning application at Derby will enhance the capital value.
Our portfolio remains stable and secure, with significant asset management opportunities that will enhance the income and capital values.
Acquisitions
We acquired off-market, 85-89 Colmore Row in December 2012 from Pricewaterhousecoopers, acting as receivers, for the sum of £4 million in cash. The purchase price represented an 8.6% net initial yield and the capital value per sq ft of £151 is below replacement cost. This is a prime landmark building, let to Chubb, Malcolm Hollis, FleetMilne Residential, Leonard Curtis and Building Design Partnership. Rental income is £360,000 per annum with an ERV of £450,000 per annum. The building is mostly let at £20 per sq ft, yet we have placed the remaining void unit on the market at £25 per sq ft, and anticipate future renewals at this level and above, in this building and others, indeed we are in legals at £25 per sq ft at a nearby property.
Purchases during the first half included ‘Apex’ in Edgbaston, for the sum of £1.7 million, let to Lombard North Central (Natwest) and Royal London Life, producing £353,000 per annum on leases expiring in December 2015 and producing a net initial yield of 20%. The properties were acquired from the receivers acting for the mortgagees, Capita Asset Services (London) Limited. The vendors acquired these properties in March 2005 for the sum of £4.5 million. Additionally, we acquired a part-vacant freehold property at High Street, West Bromwich (a former Allied Carpets retail store, with offices above) for £475,000. This property will be refurbished and re-let, with potential income of £150,000 per annum. The vendor paid £1.6 million in May 2006. These purchases meet our acquisition criteria, and we believe we will be able to add value and achieve attractive yields.
Sales
The marketplace remains a ‘buyers’ market and we are therefore very much in acquisition gear. We will sell assets in due course, but at positively higher values than those that can be achieved in the present market.
Our planned exit from some of our assets will be subject to the completion of our asset management initiatives and the improving market demand.
During this period we sold land in Birmingham, with planning consent, to Bromford Housing Association for £350,000, representing a 22.3% premium to the £286,000 book value.
Finance
As at 31 December 2012, gross debt was £40.6 million (2011: £37.4 million) with cash and undrawn facilities of £4.2 million (2011: £6.0 million). The weighted average debt maturity was 8.6 years (2011: 8 years) with a weighted average cost of debt of 6.3% (2011: 6.1%) at year end (100% fixed or hedged, 2011: 81%).
Net loan to value was 49% (2011: 46%) and net interest cover based on adjusted earnings before interest and tax as a ratio of finance costs was 1.6 (2011: 1.0). Both loan to value and interest cover fall comfortably within the banking covenants.
We have enjoyed excellent banking support throughout the financial crisis over the last 5 years, and continue to receive the support of our bankers at Lloyds, Handelsbanken and Aviva. We have cash and a number of income producing and un-encumbered properties that we may seek to refinance, so as to create further cash to take advantage of opportunities that meet our criteria.
In March 2012, we completed a refinancing of £10.3 million with Aviva for a term of 15 years, fixed at 5.2% inclusive. We anticipate completion of a new refinance of unencumbered assets during Q2 2013, taking advantage of competitive and historically low interest rates.
More generally, we note a marked difference in the appetite of lenders across the banking sector to fund property transactions. This is seen in auction houses across the UK and evidenced by the rising number of transactions. Loan to value tends to be a maximum of 60-65%. The exception is that little or no debt is available for any speculative refurbishment or development.
Outlook & Summary
The outlook for regional property assets is clearly favourable so long as the improvements in occupier demand, bank debt and investor appetite remain. We believe that this will be the case with upside potential, resulting in rising capital values, occupancy levels and rental values, it would not surprise me if we saw significant valuation improvement in 2013-14.
The regional economy continues to benefit from the success enjoyed by the automotive sector, in particular Jaguar Land Rover. Whilst our portfolio is geographically spread across the Midlands, we hold significant assets in the prime city core which we expect will benefit from Enterprise Zone status. The £600 million New Street Station redevelopment, a £129 million Metro extension linking Snow Hill station to New Street station, the £65 million airport runway extension, the £250 million Birmingham City University campus and £188 million new library, will all contribute to the improving economic activity. Additionally, we understand that during 2012, Birmingham saw a 40% increase in foreign investment against a UK decline of 2%.
A few years ago, I stated that the financial crisis and the property market turmoil would reveal winners and losers and I believed that REI would emerge as a winner. Nothing has changed to alter my view.
We have existing capital and access to banking support to acquire further assets that comply with our purchase criteria and capitalise on our market reputation and ‘preferred buyer status’.
We continue to monitor REIT legislation, and we will convert if the benefits and circumstances present a compelling commercial argument.
Finally, John Jack has decided to step down as a non-executive director from 30 June 2013 and I would also like to express my thanks to John for his contribution and support over the last few years. On behalf of all the staff and management I would like to wish him all the best for the future.
PAUL BASSI CBE DL D.UNIV DSc
CHIEF EXECUTIVE
27 March 2013
Real Estate Investors plc
Consolidated statement of comprehensive income
For the year ended 31 December 2012
|
|
Note |
2012 |
2011 |
|
|
|
£000 |
£000 |
|
|
|
|
|
|
Revenue |
|
6,122 |
4,897 |
|
|
|
|
|
|
Cost of sales |
|
(1,434) |
(1,300) |
|
Gross profit |
|
4,688 |
3,597 |
|
|
|
|
|
|
Administrative expenses |
|
(1,874) |
(1,362) |
|
Share of loss of joint venture |
|
– |
(2) |
|
Surplus on sale of investment property |
|
64 |
22 |
|
Net surplus/(loss) on valuation of investment properties |
|
822 |
(4,230) |
|
Profit/(loss) from operations |
|
3,700 |
(1,975) |
|
Finance income |
|
26 |
197 |
|
Finance costs |
|
(2,404) |
(2,337) |
|
Loss on financial liabilities at fair value through profit and loss |
|
(320) |
(2,577) |
|
|
|
|
|
|
Profit/(loss) on ordinary activities before taxation |
|
1,002 |
(6,692) |
|
|
|
|
|
|
Income tax (charge)/credit |
|
(635) |
1,663 |
|
|
|
|
|
|
Net profit/(loss) after taxation and total comprehensive income |
|
367 |
(5,029) |
|
|
|
|
|
|
Total and continuing earnings/(loss) per ordinary share |
|
|
|
|
Basic |
2 |
0.5p |
(8.6)p |
|
Diluted |
2 |
0.5p |
(8.6)p |
The results of the Group for the period related entirely to continuing operations.
Real Estate Investors plc
Consolidated statement of changes in equity
For the year ended 31 December 2012
|
|
Share capital |
Share premium account |
Capital redemption reserve |
Other reserves |
Retained earnings |
Total |
|
|
£000 |
£000 |
£000 |
£000 |
£000 |
£000 |
|
|
|
|
|
|
|
|
|
At 1 January 2011 |
4,960 |
37,654 |
45 |
121 |
(10,513) |
32,267 |
|
|
|
|
|
|
|
|
|
Issue of new shares |
2,182 |
– |
– |
– |
– |
2,182 |
|
Premium on issue of shares |
– |
9,818 |
– |
– |
– |
9,818 |
|
Expenses of share issue |
– |
(257) |
– |
– |
– |
(257) |
|
Reduction of share premium account |
– |
(47,154) |
– |
– |
47,154 |
– |
|
Transactions with owners |
2,182 |
(37,593) |
– |
– |
47,154 |
11,743 |
|
|
|
|
|
|
|
|
|
Loss for the year and total comprehensive income |
– |
– |
– |
– |
(5,029) |
(5,029) |
|
At 31 December 2011 |
7,142 |
61 |
45 |
121 |
31,612 |
38,981 |
|
|
|
|
|
|
|
|
|
Dividends |
– |
– |
– |
– |
(357) |
(357) |
|
Transactions with owners |
– |
– |
– |
– |
(357) |
(357) |
|
|
|
|
|
|
|
|
|
Profit for the year and total comprehensive income |
– |
– |
– |
– |
367 |
367 |
|
At 31 December 2012 |
7,142 |
61 |
45 |
121 |
31,622 |
38,991 |
Real Estate Investors plc
Consolidated statement of financial position
At 31 December 2012
|
|
Note |
2012 |
2011 |
|
|
|
£000 |
£000 |
|
Assets |
|
|
|
|
Non current |
|
|
|
|
Intangible assets |
|
171 |
171 |
|
Investment properties |
3 |
70,441 |
63,434 |
|
Property, plant and equipment |
|
18 |
28 |
|
Deferred tax |
|
4,255 |
4,890 |
|
|
|
74,885 |
68,523 |
|
|
|
|
|
|
Investment in joint venture |
|
236 |
148 |
|
|
|
75,121 |
68,671 |
|
Current |
|
|
|
|
Inventories |
|
6,935 |
7,795 |
|
Trade and other receivables |
|
3,151 |
2,469 |
|
Cash and cash equivalents |
|
2,685 |
4,461 |
|
|
|
12,771 |
14,725 |
|
|
|
|
|
|
Total assets |
|
87,892 |
83,396 |
|
Liabilities |
|
|
|
|
Current |
|
|
|
|
Bank loans and overdraft |
|
(3,106) |
(2,930) |
|
Provision for current taxation |
|
(18) |
(18) |
|
Trade and other payables |
|
(2,938) |
(2,052) |
|
|
|
(6,062) |
(5,000) |
|
Non current |
|
|
|
|
Bank loans |
|
(37,525) |
(34,421) |
|
Liabilities at fair value through profit and loss |
|
(5,314) |
(4,994) |
|
|
|
(42,839) |
(39,415) |
|
Total liabilities |
|
(48,901) |
(44,415) |
|
|
|
|
|
|
Net assets |
|
38,991 |
38,981 |
|
|
|
|
|
|
Equity |
|
|
|
|
Share capital |
|
7,142 |
7,142 |
|
Share premium account |
|
61 |
61 |
|
Capital redemption reserve |
|
45 |
45 |
|
Other reserves |
|
121 |
121 |
|
Retained earnings |
|
31,622 |
31,612 |
|
|
|
|
|
|
Total Equity |
|
38,991 |
38,981 |
|
Net assets per share |
2 |
54.6p |
54.6p |
Real Estate Investors plc
Consolidated statement of cash flows
For the year ended 31 December 2012
|
|
|
2012 |
2011 |
|
|
|
£000 |
£000 |
|
Cash flows from operating activities |
|
|
|
|
Profit/(loss) after taxation |
|
367 |
(5,029) |
|
Adjustments for: |
|
|
|
|
Depreciation |
|
11 |
12 |
|
Net (surplus)/loss on valuation of investment property |
|
(822) |
4,230 |
|
Surplus on sale of investment property |
|
(64) |
(22) |
|
Share of loss of joint venture |
|
– |
2 |
|
Finance income |
|
(26) |
(197) |
|
Finance costs |
|
2,404 |
2,337 |
|
Loss on financial liabilities at fair value through profit and loss |
|
320 |
2,577 |
|
Income tax charge/(credit) |
|
635 |
(1,663) |
|
Decrease/(increase) in inventories |
|
860 |
(1,742) |
|
(Increase)/decrease in trade and other receivables |
|
(682) |
1,238 |
|
Increase in trade and other payables |
|
886 |
111 |
|
|
|
3,889 |
1,854 |
|
Interest paid |
|
(2,404) |
(2,337) |
|
Income taxes paid |
|
– |
(17) |
|
|
|
|
|
|
Net cash from operating activities |
|
1,485 |
(500) |
|
Cash flows from investing activities |
|
|
|
|
Purchase of investment properties |
|
(6,471) |
(17,321) |
|
Purchase of property, plant and equipment |
|
(1) |
– |
|
Proceeds from sale of investment property |
|
350 |
157 |
|
Investment in joint venture |
|
(88) |
(49) |
|
Interest received |
|
26 |
197 |
|
|
|
(6,184) |
(17,014) |
|
Cash flows from financing activities |
|
|
|
|
Proceeds from issue of share capital net of expenses |
|
– |
11,743 |
|
Equity dividends paid |
|
(357) |
– |
|
Proceeds from new bank loans |
|
10,303 |
– |
|
Payment of bank loans |
|
(6,807) |
(3,804) |
|
|
|
3,139 |
7,939 |
|
|
|
|
|
|
Net decrease in cash and cash equivalents |
|
(1,560) |
(9,575) |
|
Cash, cash equivalents and bank overdrafts at beginning of period |
|
2,247 |
11,822 |
|
Cash, cash equivalents and bank overdrafts at end of period |
|
687 |
2,247 |
NOTES:
Cash and cash equivalents consist of cash in hand and balances with banks only.
Real Estate Investors plc
Notes to the preliminary announcement
For the year ended 31 December 2012
1. Basis of preparation
It should be noted that accounting estimates and assumptions are used in preparation of the preliminary announcement. Although these estimates are based on management’s best knowledge and judgement of current events and actions, actual results may differ from those estimates. The areas involving a higher degree of judgement or complexity, or areas where assumptions and estimates are significant to the preliminary announcement, are set out in the Group’s annual report and financial statements
The principal accounting policies are detailed in the Group’s annual report and financial statements.
Going concern
After making relevant enquiries, the directors have a reasonable expectation that the Group has adequate resources to continue in operational existence for the foreseeable future. These enquiries considered the following:
· the significant cash balances the Group holds and the low levels of historical and projected operating cashflows
· rising rental income, together with properties actively being marketed, leading to improving profitability
· the bank loan covenants, which are principally related to loan to property asset value ratios, are expected to be met going forward
· any property purchases will only be completed if cash resources or loans are available to complete those purchases
· the Group’s bankers have indicated their continuing support for the Group
· the Group’s £20 million facility with Lloyds Banking Group was renewed in October 2011 on similar terms for a period of three years
· in March 2012, completed a refinancing of £10.3 million with Aviva for a term of 15 years, fixed at 5.2% inclusive.
For this reason, the directors continue to adopt the going concern basis in preparing the preliminary announcement.
2. Earnings/(loss) per share
The calculation of earnings/(loss) per share is based on the result for the year after tax and on the weighted average number of shares in issue during the year. The calculation of diluted earnings/(loss) per share is based on the basic earnings/(loss) per share adjusted for the issue of shares on the assumed conversion of the share warrants and share options.
Reconciliations of the earnings/(loss) and the weighted average numbers of shares used in the calculations are set out below.
|
|
2012 |
2011 |
||||
|
|
Earnings |
Average number of shares |
Earnings per Share |
Loss |
Average number of shares |
Loss per share |
|
|
£’000 |
|
|
£’000 |
|
|
|
|
|
|
|
|
|
|
|
Basic profit/(loss) per share |
367 |
71,420,598 |
0.5p |
(5,029) |
59,525,206 |
(8.6)p |
|
Dilutive effect of conversion of |
|
|
|
|
|
|
|
share warrants and options |
– |
– |
– |
– |
– |
– |
|
Diluted profit/(loss) per share |
367 |
71,420,598 |
0.5p |
(5,029) |
59,525,206 |
(8.6)p |
The impact of share warrants and share options on the results for the years ended 31 December 2012 and 2011 is antidilutive.
EPRA EPS per share
|
|
2012 |
2011 |
||||
|
|
Earnings |
Shares |
Earnings per share p |
Earnings |
Shares |
Earnings per share p |
|
|
£’000 |
|
|
£’000 |
|
|
|
|
|
|
|
|
|
|
|
Basic earnings per share |
367 |
71,420,598 |
0.5 |
(5,029) |
59,525,206 |
(8.6) |
|
Fair value of investment properties |
(822) |
|
|
4,230 |
|
|
|
Profits on disposal of investment properties |
(64) |
|
|
(22) |
|
|
|
Tax on profits on disposals |
15 |
|
|
5 |
|
|
|
Fair value of inventory properties |
860 |
|
|
(56) |
|
|
|
Change in fair value of derivatives |
320 |
|
|
2,577 |
|
|
|
Deferred tax |
(82) |
|
|
(1,620) |
|
|
|
EPRA Earnings per share |
594 |
71,420,598 |
0.8 |
85 |
59,525,206 |
0.1 |
EPRA NAV per share
|
|
2012 |
2011 |
||||
|
|
Net Assets |
Shares |
Net asset value per share p |
Net Assets |
Shares |
Net asset value per share p |
|
|
£’000 |
|
|
£’000 |
|
|
|
|
|
|
|
|
|
|
|
Basic |
38,991 |
71,420,598 |
54.6 |
38,981 |
71,420,598 |
54.6 |
|
Dilutive impact of share options and warrants |
– |
– |
|
– |
– |
|
|
Diluted |
38,991 |
71,420,598 |
54.6 |
38,981 |
71,420,598 |
54.6 |
|
Adjustment to fair value of derivatives |
5,314 |
– |
|
4,994 |
– |
|
|
Deferred tax |
(4,255) |
– |
|
(4,890) |
– |
|
|
EPRA NAV |
40,050 |
71,420,598 |
56.1 |
39,085 |
71,420,598 |
54.7 |
|
Adjustment to fair value of derivatives |
(5,314) |
– |
|
(4,994) |
– |
|
|
Deferred tax |
4,255 |
– |
|
4,890 |
– |
|
|
EPRA NNNAV |
38,991 |
71,420,598 |
54.6 |
38,981 |
71,420,598 |
54.6 |
3. Investment properties
Investment properties are those held to earn rentals and for capital appreciation.
The carrying amount of investment properties for the periods presented in the consolidated financial statements as at 31 December 2012 is reconciled as follows:
|
|
|
£’000 |
|
|
|
|
|
Carrying amount at 1 January 2011 |
|
63,434 |
|
Additions – acquisition of new properties |
|
17,022 |
|
Additions – subsequent expenditure |
|
299 |
|
Disposals |
|
(135) |
|
Revaluation |
|
(4,230) |
|
|
|
|
|
Carrying amount at 31 December 2011 |
|
63,434 |
|
Additions – acquisition of new properties |
|
6,456 |
|
Additions – subsequent expenditure |
|
15 |
|
Disposals |
|
(286) |
|
Revaluation |
|
822 |
|
Carrying amount at 31 December 2012 |
|
70,441 |
4. Publication
The financial information set out in this preliminary announcement does not constitute statutory accounts as defined in section 434 of the Companies Act 2006. The consolidated statement of financial position at 31 December 2012 and the consolidated statement of comprehensive income, the consolidated statement of changes in equity, the consolidated statement of cash flows and the associated notes for the year then ended have been extracted from the Group’s financial statements upon which the auditor’s opinion is unqualified and does not include any statement under section 498 of the Companies Act 2006. The statutory accounts for the year ended 31 December 2012 will be delivered to the Registrar of Companies following the Group’s Annual General Meeting.
5. Copies of the announcement
Copies of this announcement are available for collection from the Company’s offices at Cathedral Place, 3rd Floor, 42-44 Waterloo Street, Birmingham, B2 5QB.
END
FR SEWFMWFDSEED