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"2023-01-01T00:00:00/2024-01-01T00:00:00", "unit": "iso4217:GBP" } }, "CashFlowStatements_NegatedLabel_004": { "value": "47000000.0", "decimals": -5, "dimensions": { "concept": "ifrs-full:PurchaseOfInvestmentProperty", "entity": "scheme:213800BXKQ9KZNUR1M61", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00", "unit": "iso4217:GBP" } }, "CashFlowStatements_NegatedLabel_003": { "value": "3800000.0", "decimals": -5, "dimensions": { "concept": "ifrs-full:PurchaseOfInvestmentProperty", "entity": "scheme:213800BXKQ9KZNUR1M61", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00", "unit": "iso4217:GBP" } }, "CashFlowStatements_NegatedLabel_0034": { "value": "139900000.0", "decimals": -5, "dimensions": { "concept": "ifrs-full:PaymentsForDevelopmentProjectExpenditure", "entity": "scheme:213800BXKQ9KZNUR1M61", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00", "unit": "iso4217:GBP" } }, "CashFlowStatements_NegatedLabel_0033": { "value": "151500000.0", "decimals": -5, "dimensions": { "concept": "ifrs-full:PaymentsForDevelopmentProjectExpenditure", "entity": "scheme:213800BXKQ9KZNUR1M61", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00", "unit": "iso4217:GBP" } }, "CashFlowStatements_Label_0044": { "value": "85500000.0", "decimals": -5, "dimensions": { "concept": "ifrs-full:ProceedsFromSalesOfInvestmentProperty", "entity": "scheme:213800BXKQ9KZNUR1M61", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00", "unit": "iso4217:GBP" } }, "CashFlowStatements_Label_0043": { "value": "65400000.0", "decimals": -5, "dimensions": { "concept": "ifrs-full:ProceedsFromSalesOfInvestmentProperty", "entity": "scheme:213800BXKQ9KZNUR1M61", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00", "unit": "iso4217:GBP" } }, "CashFlowStatements_Label_0045": { "value": "0.0", "decimals": -6, "dimensions": { "concept": "dln:RepaymentOfJointVentureLoansClassifiedAsInvestingActivities", "entity": "scheme:213800BXKQ9KZNUR1M61", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00", "unit": "iso4217:GBP" } }, "CashFlowStatements_Label_0046": { "value": "600000.0", "decimals": -5, "dimensions": { "concept": "dln:RepaymentOfJointVentureLoansClassifiedAsInvestingActivities", "entity": "scheme:213800BXKQ9KZNUR1M61", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00", "unit": "iso4217:GBP" } }, "CashFlowStatements_NegatedLabel_0048": { "value": "1600000.0", "decimals": -5, "dimensions": { "concept": "ifrs-full:PurchaseOfPropertyPlantAndEquipmentClassifiedAsInvestingActivities", "entity": "scheme:213800BXKQ9KZNUR1M61", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00", "unit": "iso4217:GBP" } }, "CashFlowStatements_NegatedLabel_0047": { "value": "700000.0", "decimals": -5, "dimensions": { "concept": "ifrs-full:PurchaseOfPropertyPlantAndEquipmentClassifiedAsInvestingActivities", "entity": "scheme:213800BXKQ9KZNUR1M61", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00", "unit": "iso4217:GBP" } }, "CashFlowStatements_NegatedLabel_00283": { "value": "-1100000.0", "decimals": -5, "dimensions": { "concept": "ifrs-full:IncomeTaxesPaidRefundClassifiedAsInvestingActivities", "entity": "scheme:213800BXKQ9KZNUR1M61", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00", "unit": "iso4217:GBP" } }, "CashFlowStatements_NegatedLabel_00284": { "value": "8000000.0", "decimals": -5, "dimensions": { "concept": "ifrs-full:IncomeTaxesPaidRefundClassifiedAsInvestingActivities", "entity": "scheme:213800BXKQ9KZNUR1M61", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00", "unit": "iso4217:GBP" } }, "CashFlowStatements_TotalLabel_00330": { "value": "-101900000.0", "decimals": -5, "dimensions": { "concept": "ifrs-full:CashFlowsFromUsedInInvestingActivities", "entity": "scheme:213800BXKQ9KZNUR1M61", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00", "unit": "iso4217:GBP" } }, "CashFlowStatements_TotalLabel_00329": { "value": "-98000000.0", "decimals": -5, "dimensions": { "concept": "ifrs-full:CashFlowsFromUsedInInvestingActivities", "entity": "scheme:213800BXKQ9KZNUR1M61", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00", "unit": "iso4217:GBP" } }, "CashFlowStatements_Label_0023": { "value": "26500000.0", "decimals": -5, "dimensions": { "concept": "ifrs-full:CashFlowsFromUsedInIncreaseDecreaseInCurrentBorrowings", "entity": "scheme:213800BXKQ9KZNUR1M61", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00", "unit": "iso4217:GBP" } }, "CashFlowStatements_Label_0024": { "value": "84000000.0", "decimals": -5, "dimensions": { "concept": "ifrs-full:CashFlowsFromUsedInIncreaseDecreaseInCurrentBorrowings", "entity": "scheme:213800BXKQ9KZNUR1M61", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00", "unit": "iso4217:GBP" } }, "CashFlowStatements_Label_0031": { "value": "182500000.0", "decimals": -5, "dimensions": { "concept": "dln:DrawdownOfTermBankLoansClassifiedAsFinancialActivities", "entity": "scheme:213800BXKQ9KZNUR1M61", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00", "unit": "iso4217:GBP" } }, "CashFlowStatements_Label_0032": { "value": "0.0", "decimals": -6, "dimensions": { "concept": "dln:DrawdownOfTermBankLoansClassifiedAsFinancialActivities", "entity": "scheme:213800BXKQ9KZNUR1M61", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00", "unit": "iso4217:GBP" } }, "CashFlowStatements_NegatedLabel_00153": { "value": "700000.0", "decimals": -5, "dimensions": { "concept": "dln:PaymentOfLoanArrangementFeesClassifiedAsFinancialActivities", "entity": "scheme:213800BXKQ9KZNUR1M61", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00", "unit": "iso4217:GBP" } }, "CashFlowStatements_NegatedLabel_00154": { "value": "0.0", "decimals": -6, "dimensions": { "concept": "dln:PaymentOfLoanArrangementFeesClassifiedAsFinancialActivities", "entity": "scheme:213800BXKQ9KZNUR1M61", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00", "unit": "iso4217:GBP" } }, "CashFlowStatements_Label_00168": { "value": "0.0", "decimals": -6, "dimensions": { "concept": "ifrs-full:ProceedsFromBorrowingsClassifiedAsFinancingActivities", "entity": "scheme:213800BXKQ9KZNUR1M61", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00", "unit": "iso4217:GBP" } }, "CashFlowStatements_Label_00167": { "value": "300000.0", "decimals": -5, "dimensions": { "concept": "ifrs-full:ProceedsFromBorrowingsClassifiedAsFinancingActivities", "entity": "scheme:213800BXKQ9KZNUR1M61", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00", "unit": "iso4217:GBP" } }, "CashFlowStatements_NegatedLabel_00273": { "value": "83000000.0", "decimals": -5, "dimensions": { "concept": "ifrs-full:RepaymentsOfBorrowingsClassifiedAsFinancingActivities", "entity": "scheme:213800BXKQ9KZNUR1M61", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00", "unit": "iso4217:GBP" } }, "CashFlowStatements_NegatedLabel_00274": { "value": "0.0", "decimals": -6, "dimensions": { "concept": "ifrs-full:RepaymentsOfBorrowingsClassifiedAsFinancingActivities", "entity": "scheme:213800BXKQ9KZNUR1M61", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00", "unit": "iso4217:GBP" } }, "CashFlowStatements_Label_00301": { "value": "0.0", "decimals": -6, "dimensions": { "concept": "dln:FinancialDerivativeTerminationIncomeCostsClassifiedAsFinancingActivities", "entity": "scheme:213800BXKQ9KZNUR1M61", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00", "unit": "iso4217:GBP" } }, "CashFlowStatements_Label_00300": { "value": "1800000.0", "decimals": -5, "dimensions": { "concept": "dln:FinancialDerivativeTerminationIncomeCostsClassifiedAsFinancingActivities", "entity": "scheme:213800BXKQ9KZNUR1M61", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00", "unit": "iso4217:GBP" } }, "CashFlowStatements_NegatedLabel_00332": { "value": "89600000.0", "decimals": -5, "dimensions": { "concept": "ifrs-full:DividendsPaidClassifiedAsFinancingActivities", "entity": "scheme:213800BXKQ9KZNUR1M61", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00", "unit": "iso4217:GBP" } }, "CashFlowStatements_NegatedLabel_00331": { "value": "88700000.0", "decimals": -5, "dimensions": { "concept": "ifrs-full:DividendsPaidClassifiedAsFinancingActivities", "entity": "scheme:213800BXKQ9KZNUR1M61", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00", "unit": "iso4217:GBP" } }, "CashFlowStatements_TotalLabel_00334": { "value": "35700000.0", "decimals": -5, "dimensions": { "concept": "ifrs-full:CashFlowsFromUsedInFinancingActivities", "entity": "scheme:213800BXKQ9KZNUR1M61", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00", "unit": "iso4217:GBP" } }, "CashFlowStatements_TotalLabel_00333": { "value": "-2600000.0", "decimals": -5, "dimensions": { "concept": "ifrs-full:CashFlowsFromUsedInFinancingActivities", "entity": "scheme:213800BXKQ9KZNUR1M61", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00", "unit": "iso4217:GBP" } }, "CashFlowStatements_TotalLabel_006": { "value": "-1600000.0", "decimals": -5, "dimensions": { "concept": "ifrs-full:IncreaseDecreaseInCashAndCashEquivalents", "entity": "scheme:213800BXKQ9KZNUR1M61", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00", "unit": "iso4217:GBP" } }, "CashFlowStatements_TotalLabel_005": { "value": "-3600000.0", "decimals": -5, "dimensions": { "concept": "ifrs-full:IncreaseDecreaseInCashAndCashEquivalents", "entity": "scheme:213800BXKQ9KZNUR1M61", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00", "unit": "iso4217:GBP" } }, "CashFlowStatements_PeriodStartLabel_008": { "value": "73000000.0", "decimals": -5, "dimensions": { "concept": "ifrs-full:CashAndCashEquivalents", "entity": "scheme:213800BXKQ9KZNUR1M61", "period": "2024-01-01T00:00:00", "unit": "iso4217:GBP" } }, "CashFlowStatements_PeriodStartLabel_007": { "value": "76600000.0", "decimals": -5, "dimensions": { "concept": "ifrs-full:CashAndCashEquivalents", "entity": "scheme:213800BXKQ9KZNUR1M61", "period": "2023-01-01T00:00:00", "unit": "iso4217:GBP" } }, "CashFlowStatements_PeriodEndLabel_0010": { "value": "71400000.0", "decimals": -5, "dimensions": { "concept": "ifrs-full:CashAndCashEquivalents", "entity": "scheme:213800BXKQ9KZNUR1M61", "period": "2025-01-01T00:00:00", "unit": "iso4217:GBP" } }, "CashFlowStatements_PeriodEndLabel_009": { "value": "73000000.0", "decimals": -5, "dimensions": { "concept": "ifrs-full:CashAndCashEquivalents", "entity": "scheme:213800BXKQ9KZNUR1M61", "period": "2024-01-01T00:00:00", "unit": "iso4217:GBP" } }, "CashFlowStatementsParentheticals_Label_00285": { "value": "11200000.0", "decimals": -5, "dimensions": { "concept": "ifrs-full:AdjustmentsForFinanceCosts", "entity": "scheme:213800BXKQ9KZNUR1M61", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00", "unit": "iso4217:GBP" } }, "CashFlowStatementsParentheticals_Label_00286": { "value": "6500000.0", "decimals": -5, "dimensions": { "concept": "ifrs-full:AdjustmentsForFinanceCosts", "entity": "scheme:213800BXKQ9KZNUR1M61", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00", "unit": "iso4217:GBP" } }, "TagsThatMustBeAppliedIfCorrespondingInformationIsPresentInAReport_Label_00183": { "value": "1\u2002Basis of preparation
The consolidated financial statements have been prepared in accordance with UK-adopted International Accounting Standards,
(the \u201capplicable framework\u201d), and have been prepared in accordance with the requirements of the Companies Act 2006 as
applicable to companies reporting under those standards. The financial statements have been prepared under the historical cost
convention as modified by the revaluation of investment properties, the revaluation of property, plant and equipment, assets held
for sale, pension scheme, and financial assets and liabilities held at fair value through profit and loss.
These financial statements have been presented in Pounds Sterling, which is the functional currency of the Group, to the nearest million.
The financial statements of Derwent London plc (the \u201cCompany\u201d) have been prepared under FRS 101 and can be found on pages
268 to 269.
Going concern
The Board continues to adopt the going concern basis in preparing these consolidated financial statements. In considering this
requirement, the Directors have taken into account the following:
\u2022
The Group\u2019s latest rolling forecast for the next two years, in particular the cash flows, borrowings and undrawn facilities,
including the \u2018severe but plausible\u2019 downside case.
\u2022
The headroom under the Group\u2019s financial covenants.
\u2022
The risks included on the Group\u2019s risk register that could impact on the Group\u2019s liquidity and solvency over the 12 months.
\u2022
The risks on the Group\u2019s risk register that could be a threat to the Group\u2019s business model and capital adequacy.
The Directors have considered the relatively long-term and predictable nature of the income receivable under the tenant leases,
the Group\u2019s year end loan-to-value ratio for 2024 of 29.9%, the interest cover ratio of 387%, the \u00a3487m total of undrawn facilities
and cash and the fact that the average maturity of borrowings was 4.0 years at 31 December 2024. The impact of the current
economic situation, interest rates and cost inflation on the business and its occupiers has been considered. The likely impact of
climate change has been incorporated into the Group\u2019s forecasts which have also taken account of a programme of EPC upgrades
across the portfolio. Based on the year end position, rental income would need to decline by 62% and property values would need
to fall by 50% before breaching its financial covenants.
The \u00a3175m unsecured convertible bond, which matures in June 2025, is a current liability and therefore the Group is in a net current
liabilities position. However, the Group has significant liquidity to fund its ongoing operations and, as noted above, has access to
\u00a3487m of available undrawn facilities and cash as at year end. In addition, a new \u00a3115m unsecured term/revolving bank facility
was signed in February 2025, which provides the Directors with a reasonable expectation that the Group will be able to meet these
current liabilities as they fall due.
Having due regard to these matters and after making appropriate enquiries, the Directors have reasonable expectation that the
Group has adequate resources to continue in operational existence for a period of at least 12 months from the date of signing of
these consolidated financial statements and, therefore, the Directors continue to adopt the going concern basis in their preparation.", "dimensions": { "concept": "ifrs-full:DisclosureOfBasisOfPreparationOfFinancialStatementsExplanatory", "language": "en", "entity": "scheme:213800BXKQ9KZNUR1M61", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "TagsThatMustBeAppliedIfCorrespondingInformationIsPresentInAReport_Label_00184": { "value": "The consolidated financial statements have been prepared in accordance with UK-adopted International Accounting Standards,
(the \u201capplicable framework\u201d), and have been prepared in accordance with the requirements of the Companies Act 2006 as
applicable to companies reporting under those standards.", "dimensions": { "concept": "ifrs-full:StatementOfIFRSCompliance", "language": "en", "entity": "scheme:213800BXKQ9KZNUR1M61", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "TagsThatMustBeAppliedIfCorrespondingInformationIsPresentInAReport_Label_00185": { "value": "Going concern
The Board continues to adopt the going concern basis in preparing these consolidated financial statements. In considering this
requirement, the Directors have taken into account the following:
\u2022
The Group\u2019s latest rolling forecast for the next two years, in particular the cash flows, borrowings and undrawn facilities,
including the \u2018severe but plausible\u2019 downside case.
\u2022
The headroom under the Group\u2019s financial covenants.
\u2022
The risks included on the Group\u2019s risk register that could impact on the Group\u2019s liquidity and solvency over the 12 months.
\u2022
The risks on the Group\u2019s risk register that could be a threat to the Group\u2019s business model and capital adequacy.
The Directors have considered the relatively long-term and predictable nature of the income receivable under the tenant leases,
the Group\u2019s year end loan-to-value ratio for 2024 of 29.9%, the interest cover ratio of 387%, the \u00a3487m total of undrawn facilities
and cash and the fact that the average maturity of borrowings was 4.0 years at 31 December 2024. The impact of the current
economic situation, interest rates and cost inflation on the business and its occupiers has been considered. The likely impact of
climate change has been incorporated into the Group\u2019s forecasts which have also taken account of a programme of EPC upgrades
across the portfolio. Based on the year end position, rental income would need to decline by 62% and property values would need
to fall by 50% before breaching its financial covenants.
The \u00a3175m unsecured convertible bond, which matures in June 2025, is a current liability and therefore the Group is in a net current
liabilities position. However, the Group has significant liquidity to fund its ongoing operations and, as noted above, has access to
\u00a3487m of available undrawn facilities and cash as at year end. In addition, a new \u00a3115m unsecured term/revolving bank facility
was signed in February 2025, which provides the Directors with a reasonable expectation that the Group will be able to meet these
current liabilities as they fall due.
Having due regard to these matters and after making appropriate enquiries, the Directors have reasonable expectation that the
Group has adequate resources to continue in operational existence for a period of at least 12 months from the date of signing of
these consolidated financial statements and, therefore, the Directors continue to adopt the going concern basis in their preparation.", "dimensions": { "concept": "ifrs-full:DisclosureOfGoingConcernExplanatory", "language": "en", "entity": "scheme:213800BXKQ9KZNUR1M61", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "TagsThatMustBeAppliedIfCorrespondingInformationIsPresentInAReport_Label_00186": { "value": "2\u2002Changes in accounting policies
The principal accounting policies are described in note 41 and are consistent with those applied in the Group\u2019s financial statements
for the year to 31 December 2023, as amended to reflect the adoption of new standards, amendments and interpretations which
became effective in the year as shown below.
New standards adopted during the year
The following standards, amendments and interpretations were effective for the first time for the Group\u2019s current accounting
period. They did not have any material impact on the amounts recognised in prior periods and are not expected to significantly
affect the current or future periods.
IAS 1 (amended) \u2013 Classification of liabilities as current or non-current, Non-current Liabilities with Covenants;
IAS 7 and IFRS 7 (amended) \u2013 Supplier Finance Arrangements;
IFRS 16 (amended) \u2013 Lease Liability in a Sale and Leaseback.
Standards in issue but not yet e\ufb00ective
The following standards, amendments and interpretations were in issue at the date of approval of these financial statements
but were not yet effective for the current accounting period and have not been adopted early. Based on the Group\u2019s current
circumstances the Directors do not anticipate that their adoption in future periods will have a material impact on the financial
statements of the Group, with the exception of IFRS 18 where the Directors are assessing its potential impact.
IAS 21 (amended) \u2013 The Effects of Changes in Foreign Exchange rates;
IFRS 7 and IFRS 9 (amended) \u2013 Classification and Measurement of Financial Instruments;
IFRS 10 and IAS 28 (amended) \u2013 Sale or Contribution of Assets between an investor and its Associate or Joint Venture;
IFRS 18 \u2013 Presentation and Disclosure in Financial Statements\u2019;
IFRS 19 \u2013 Subsidiaries without Public Accountability: Disclosures.", "dimensions": { "concept": "ifrs-full:DisclosureOfChangesInAccountingPoliciesExplanatory", "language": "en", "entity": "scheme:213800BXKQ9KZNUR1M61", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "TagsThatMustBeAppliedIfCorrespondingInformationIsPresentInAReport_Label_00187": { "value": "3\u2002Significant judgements, key assumptions and estimates
The preparation of financial statements in accordance with the applicable framework requires the use of certain significant
accounting estimates and judgements. It also requires management to exercise judgement in the process of applying the Group\u2019s
accounting policies. The Group\u2019s significant accounting policies are stated in note 41. Not all of these accounting policies require
management to make difficult, subjective or complex judgements or estimates. Estimates and judgements are continually
evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be
reasonable under the circumstances. Although these estimates are based on management\u2019s best knowledge of the amount, event
or actions, actual results may differ from those estimates. The following is intended to provide an understanding of the policies
that management consider critical because of the level of complexity, judgement or estimation involved in their application and
their impact on these consolidated financial statements.
Signi\ufb01cant judgements
Compliance with the real estate investment trust (REIT) taxation regime
As a REIT, the Group benefits from tax advantages. Income and chargeable gains on the qualifying property rental business are
exempt from corporation tax. Income that does not qualify as property income within the REIT rules is subject to corporation tax
in the normal way. There are a number of tests that are applied annually, and in relation to forecasts, to ensure the Group remains
well within the limits allowed within those tests.
The Group met all the criteria in 2024 in each case, thereby ensuring its REIT status is maintained. The Directors intend that the
Group should continue as a REIT for the foreseeable future.
Key sources of estimation uncertainty
Property portfolio valuation
The Group uses the valuation carried out by external valuers as the fair value of its property portfolio. The valuation considers a range
of assumptions including future rental income, investment yields, anticipated outgoings and maintenance costs, future development
expenditure and appropriate discount rates. The external valuers also make reference to market evidence of transaction prices
for similar properties and take into account the impact of climate change and related environmental, social and governance
considerations. More information is provided in note 16, including sensitivity disclosures.
Other areas of estimation
Impairment testing of trade receivables and other \ufb01nancial assets
Trade receivables and accrued rental income recognised in advance of receipt are subject to impairment testing under IFRS 9
and IAS 36, respectively. This accrued rental income arises due to the spreading of rent-free and reduced rent periods, capital
contributions and contracted rent uplifts in accordance with IFRS 16 Leases.
Impairment testing of trade receivables and other financial assets is no longer considered a key source of estimation uncertainty
as the Group no longer deems that the inherent uncertainty is likely to have a material impact within the next 12 months.
Accordingly, the associated sensitivities and balances have not been disclosed.
Due to their size, the lease incentive receivables (non-current) of \u00a3173.6m and lease incentive receivables (current) of \u00a322.0m,
net of impairments, remain an area of estimation uncertainty for the Group.", "dimensions": { "concept": "ifrs-full:DisclosureOfAccountingJudgementsAndEstimatesExplanatory", "language": "en", "entity": "scheme:213800BXKQ9KZNUR1M61", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "TagsThatMustBeAppliedIfCorrespondingInformationIsPresentInAReport_Label_00188": { "value": "Key sources of estimation uncertainty
Property portfolio valuation
The Group uses the valuation carried out by external valuers as the fair value of its property portfolio. The valuation considers a range
of assumptions including future rental income, investment yields, anticipated outgoings and maintenance costs, future development
expenditure and appropriate discount rates. The external valuers also make reference to market evidence of transaction prices
for similar properties and take into account the impact of climate change and related environmental, social and governance
considerations. More information is provided in note 16, including sensitivity disclosures.
Other areas of estimation
Impairment testing of trade receivables and other \ufb01nancial assets
Trade receivables and accrued rental income recognised in advance of receipt are subject to impairment testing under IFRS 9
and IAS 36, respectively. This accrued rental income arises due to the spreading of rent-free and reduced rent periods, capital
contributions and contracted rent uplifts in accordance with IFRS 16 Leases.
Impairment testing of trade receivables and other financial assets is no longer considered a key source of estimation uncertainty
as the Group no longer deems that the inherent uncertainty is likely to have a material impact within the next 12 months.
Accordingly, the associated sensitivities and balances have not been disclosed.
Due to their size, the lease incentive receivables (non-current) of \u00a3173.6m and lease incentive receivables (current) of \u00a322.0m,
net of impairments, remain an area of estimation uncertainty for the Group.", "dimensions": { "concept": "ifrs-full:ExplanationOfAssumptionAboutFutureWithSignificantRiskOfResultingInMaterialAdjustments", "language": "en", "entity": "scheme:213800BXKQ9KZNUR1M61", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "TagsThatMustBeAppliedIfCorrespondingInformationIsPresentInAReport_Label_00189": { "value": "Key sources of estimation uncertainty
Property portfolio valuation
The Group uses the valuation carried out by external valuers as the fair value of its property portfolio. The valuation considers a range
of assumptions including future rental income, investment yields, anticipated outgoings and maintenance costs, future development
expenditure and appropriate discount rates. The external valuers also make reference to market evidence of transaction prices
for similar properties and take into account the impact of climate change and related environmental, social and governance
considerations. More information is provided in note 16, including sensitivity disclosures.
Other areas of estimation
Impairment testing of trade receivables and other \ufb01nancial assets
Trade receivables and accrued rental income recognised in advance of receipt are subject to impairment testing under IFRS 9
and IAS 36, respectively. This accrued rental income arises due to the spreading of rent-free and reduced rent periods, capital
contributions and contracted rent uplifts in accordance with IFRS 16 Leases.
Impairment testing of trade receivables and other financial assets is no longer considered a key source of estimation uncertainty
as the Group no longer deems that the inherent uncertainty is likely to have a material impact within the next 12 months.
Accordingly, the associated sensitivities and balances have not been disclosed.
Due to their size, the lease incentive receivables (non-current) of \u00a3173.6m and lease incentive receivables (current) of \u00a322.0m,
net of impairments, remain an area of estimation uncertainty for the Group.", "dimensions": { "concept": "ifrs-full:DisclosureOfAssetsAndLiabilitiesWithSignificantRiskOfMaterialAdjustmentExplanatory", "language": "en", "entity": "scheme:213800BXKQ9KZNUR1M61", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "TagsThatMustBeAppliedIfCorrespondingInformationIsPresentInAReport_Label_00190": { "value": "Impairment testing of trade receivables and other \ufb01nancial assets
Trade receivables and accrued rental income recognised in advance of receipt are subject to impairment testing under IFRS 9
and IAS 36, respectively. This accrued rental income arises due to the spreading of rent-free and reduced rent periods, capital
contributions and contracted rent uplifts in accordance with IFRS 16 Leases.
Impairment testing of trade receivables and other financial assets is no longer considered a key source of estimation uncertainty
as the Group no longer deems that the inherent uncertainty is likely to have a material impact within the next 12 months.
Accordingly, the associated sensitivities and balances have not been disclosed.
Due to their size, the lease incentive receivables (non-current) of \u00a3173.6m and lease incentive receivables (current) of \u00a322.0m,
net of impairments, remain an area of estimation uncertainty for the Group.", "dimensions": { "concept": "ifrs-full:DisclosureOfImpairmentOfAssetsExplanatory", "language": "en", "entity": "scheme:213800BXKQ9KZNUR1M61", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "TagsThatMustBeAppliedIfCorrespondingInformationIsPresentInAReport_Label_00193": { "value": "4\u2002Segmental information
IFRS 8 Operating Segments requires operating segments to be identified on the basis of internal financial reports about
components of the Group that are regularly reviewed by the chief operating decision makers (which in the Group\u2019s case are the
four Executive Directors who are assisted by the other 13 members of the Executive Committee) in order to allocate resources to
the segments and to assess their performance.
The internal financial reports received by the Group\u2019s Executive Committee contain financial information at a Group level as a
whole and there are no reconciling items between the results contained in these reports and the amounts reported in the financial
statements. These internal financial reports include IFRS figures but also report non-IFRS figures for the EPRA earnings and net
asset value. Reconciliations of each of these figures to their statutory equivalents are detailed in note 38. Additionally, information
is provided to the Executive Committee showing gross property income and property valuation by individual property. Therefore,
for the purposes of IFRS 8, each individual property is considered to be a separate operating segment in that its performance is
monitored individually.
The Group\u2019s property portfolio includes investment property, owner-occupied property and trading property and comprised 95%
office buildings
1
by value at 31 December 2024 (2023: 96%). The Directors consider that these individual properties have similar
economic characteristics and therefore have been aggregated into a single reportable segment. The remaining 5% (2023: 4%)
represented a mixture of retail, residential and light industrial properties, as well as land, each of which is de minimis in its own
right and below the quantitative threshold in aggregate. Therefore, in the view of the Directors, there is one reportable segment
under the provisions of IFRS 8.
All of the Group\u2019s properties are based in the UK. No geographical grouping is contained in any of the internal financial reports
provided to the Group\u2019s Executive Committee and, therefore, no geographical segmental analysis is required by IFRS 8. However,
geographical analysis is included in the tables below to provide users with additional information regarding the areas contained in
the Strategic report. The majority of the Group\u2019s properties are located in London (West End central, West End borders/other and
City borders), with the remainder in Scotland (Provincial).
1
Some o\ufb03ce buildings have an ancillary element such as retail or residential.
Gross property income
\n \n
2024
2023
Office
Office
buildings
Other
Total
buildings
Other
Total
\u00a3m
\u00a3m
\u00a3m
\u00a3m
\u00a3m
\u00a3m
West End central
126.9
2.2
129.1
123.7
1.7
125.4
West End borders/other
17.0
\u2013
17.0
17.3
\u2013
17.3
City borders
66.3
0.7
67.0
65.2
0.5
65.7
Provincial
\u2013
4.5
4.5
\u2013
4.5
4.5
Gross property income (excl. joint venture)
210.2
7.4
217.6
206.2
6.7
212.9
Share of joint venture gross property income
1.9
\u2013
1.9
2.2
\u2013
2.2
212.1
7.4
219.5
208.4
6.7
215.1
A reconciliation of gross property income to gross property and other income is given in note 5.
Property portfolio
\n \n
2024
2023
Office
Office
buildings
Other
Total
buildings
Other
Total
\u00a3m
\u00a3m
\u00a3m
\u00a3m
\u00a3m
\u00a3m
Carrying value
West End central
3,172.5
164.3
3,336.8
2,945.4
99.2
3,044.6
West End borders/other
288.8
\u2013
288.8
302.3
\u2013
302.3
City borders
1,136.5
6.1
1,142.6
1,228.8
6.7
1,235.5
Provincial
\u2013
92.3
92.3
\u2013
75.1
75.1
Group (excl. joint venture)
4,597.8
262.7
4,860.5
4,476.5
181.0
4,657.5
Share of joint venture
\u2013
\u2013
\u2013
34.0
\u2013
34.0
4,597.8
262.7
4,860.5
4,510.5
181.0
4,691.5
Fair value
West End central
3,307.7
165.4
3,473.1
3,068.1
109.5
3,177.6
West End borders/other
301.7
\u2013
301.7
318.4
\u2013
318.4
City borders
1,167.3
6.1
1,173.4
1,266.3
6.7
1,273.0
Provincial
\u2013
92.9
92.9
\u2013
75.7
75.7
Group (excl. joint venture)
4,776.7
264.4
5,041.1
4,652.8
191.9
4,844.7
Share of joint venture
\u2013
\u2013
\u2013
33.8
\u2013
33.8
4,776.7
264.4
5,041.1
4,686.6
191.9
4,878.5
A reconciliation between the fair value and carrying value of the portfolio is set out in note 16.", "dimensions": { "concept": "ifrs-full:DisclosureOfEntitysReportableSegmentsExplanatory", "language": "en", "entity": "scheme:213800BXKQ9KZNUR1M61", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "TagsThatMustBeAppliedIfCorrespondingInformationIsPresentInAReport_Label_00195": { "value": "5\u2002Property and other income \n \n
2024
2023
\u00a3m
\u00a3m
Gross rental income
214.8
212.8
Surrender premiums received
2.7
0.1
Other property income
0.1
\u2013
Gross property income
217.6
212.9
Trading property sales proceeds
1
3.7
\u2013
Service charge income
1
50.5
48.5
Other income
1
5.1
4.5
Gross property and other income
276.9
265.9
Gross rental income
214.8
212.8
Movement in impairment of receivables
(0.2)
(2.0)
Movement in impairment of prepayments
(0.2)
(0.6)
Service charge income
1
50.5
48.5
Service charge expenses
(57.1)
(55.1)
(6.6)
(6.6)
Property costs
(18.2)
(17.4)
Net rental income
189.6
186.2
Trading property sales proceeds
1
3.7
\u2013
Trading property cost of sales
(3.7)
\u2013
Profit on trading property disposals
\u2013
\u2013
Other property income
0.1
\u2013
Other income
1
5.1
4.5
Surrender premiums received
2.7
0.1
Dilapidation receipts
0.8
0.1
Write-down of trading property
\u2013
(0.4)
Net property and other income
198.3
190.5
1
In line with IFRS 15 Revenue from Contracts with Customers, the Group recognised a total of \u00a359.3m (2023: \u00a353.0m) of other income, trading property sales
proceeds and service charge income within gross property and other income.
Gross rental income includes \u00a36.3m (2023: \u00a35.9m) relating to rents recognised in advance of cash receipts.
Other income relates to fees and commissions earned from tenants in relation to the management of the Group\u2019s properties and
was recognised in the Group income statement in accordance with the delivery of services.
Property costs include amounts in relation to non-recoverable service charge costs associated with vacant units during periods
of refurbishment. These amounts are not significant and were previously capitalised in the carrying value of the property. ", "dimensions": { "concept": "ifrs-full:DisclosureOfRevenueExplanatory", "language": "en", "entity": "scheme:213800BXKQ9KZNUR1M61", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "TagsThatMustBeAppliedIfCorrespondingInformationIsPresentInAReport_Label_00194": { "value": "5\u2002Property and other income \n \n
2024
2023
\u00a3m
\u00a3m
Gross rental income
214.8
212.8
Surrender premiums received
2.7
0.1
Other property income
0.1
\u2013
Gross property income
217.6
212.9
Trading property sales proceeds
1
3.7
\u2013
Service charge income
1
50.5
48.5
Other income
1
5.1
4.5
Gross property and other income
276.9
265.9
Gross rental income
214.8
212.8
Movement in impairment of receivables
(0.2)
(2.0)
Movement in impairment of prepayments
(0.2)
(0.6)
Service charge income
1
50.5
48.5
Service charge expenses
(57.1)
(55.1)
(6.6)
(6.6)
Property costs
(18.2)
(17.4)
Net rental income
189.6
186.2
Trading property sales proceeds
1
3.7
\u2013
Trading property cost of sales
(3.7)
\u2013
Profit on trading property disposals
\u2013
\u2013
Other property income
0.1
\u2013
Other income
1
5.1
4.5
Surrender premiums received
2.7
0.1
Dilapidation receipts
0.8
0.1
Write-down of trading property
\u2013
(0.4)
Net property and other income
198.3
190.5
1
In line with IFRS 15 Revenue from Contracts with Customers, the Group recognised a total of \u00a359.3m (2023: \u00a353.0m) of other income, trading property sales
proceeds and service charge income within gross property and other income.
Gross rental income includes \u00a36.3m (2023: \u00a35.9m) relating to rents recognised in advance of cash receipts.
Other income relates to fees and commissions earned from tenants in relation to the management of the Group\u2019s properties and
was recognised in the Group income statement in accordance with the delivery of services.
Property costs include amounts in relation to non-recoverable service charge costs associated with vacant units during periods
of refurbishment. These amounts are not significant and were previously capitalised in the carrying value of the property. 7\u2002Finance income and finance costs \n \n
2024
2023
\u00a3m
\u00a3m
Finance income
Net interest received on defined benefit pension scheme asset
(0.1)
(0.1)
Bank interest receivable
(0.2)
(0.8)
Finance income
(0.3)
(0.9)
Finance costs
Bank loans
6.1
1.1
Non-utilisation fees
1.9
2.2
Unsecured convertible bonds
4.0
3.9
Unsecured green bonds
6.7
6.7
Secured bonds
11.4
11.4
Unsecured private placement notes
15.6
15.6
Secured loan
2.7
3.3
Amortisation of issue and arrangement costs
2.6
2.6
Amortisation of the fair value of the secured bonds
(1.6)
(1.5)
Obligations under headleases
1.3
1.3
Other
0.4
0.3
Gross finance costs
51.1
46.9
Less: interest capitalised
(11.2)
(6.5)
Finance costs
39.9
40.4
Finance costs of \u00a311.2m (2023: \u00a36.5m) have been capitalised on development projects including trading stock and trading properties,
in accordance with IAS 23 Borrowing Costs, using the Group\u2019s average cost of borrowings during each quarter. Total finance costs
paid to 31 December 2024 were \u00a349.5m (2023: \u00a344.6m) of which \u00a311.2m (2023: \u00a36.5m) out of a total of \u00a3139.9m (2023: \u00a3151.5m)
was included in capital expenditure on the property portfolio in the Group cash flow statement under investing activities.
8\u2002Financial derivative termination income
The Group incurred no costs or income in the year to 31 December 2024 (2023: \u00a31.8m net receipts) deferring or terminating
interest rate swaps.10\u2002Profit/(loss) before tax
2024
2023
\u00a3m
\u00a3m
This is arrived at after charging:
Depreciation
1.0
1.1
Rent payable under headleases
1.5
2.3
Auditor\u2019s remuneration
Audit \u2013 Group
0.6
0.5
Audit \u2013 subsidiaries
0.1
0.1
In 2024, audit fees for the Group were \u00a3572,650 (2023: \u00a3501,000) and for the subsidiaries \u00a3101,325 (2023: \u00a3118,500). In addition,
PwC were remunerated \u00a374,025 (2023: \u00a370,500) for the review of the interim results, \u00a340,000 (2023: \u00a3nil) for green finance
assurance, and \u00a371,000 (2023: \u00a3nil) for other non-assurance related services.
11\u2002Directors\u2019 emoluments
2024
2023
\u00a3m
\u00a3m
Remuneration for management services
4.6
3.3
Post-employment benefits
0.4
0.4
5.0
3.7
National insurance contributions
0.7
0.5
5.7
4.2
An amount of \u00a31.2m (2023: \u00a30.9m) attributable to the Directors is included within share-based payments expense of \u00a33.1m
(2023: \u00a32.5m) relating to equity-settled schemes in note 12. This is in accordance with IFRS 2 Share-based Payment.
Details of the Directors\u2019 remuneration awards under the long-term incentive plan and options held by the Directors under
the Group share option schemes are given on pages 194 to 199 of the report of the Remuneration Committee. The only key
management personnel are the Directors.
12\u2002Employees
\n \n
2024
2023
\u00a3m
\u00a3m
Staff costs, including those of Directors:
Wages and salaries
20.2
19.9
Social security costs
3.4
2.9
Other pension costs
3.0
2.6
Share-based payments expense relating to equity-settled schemes
3.1
2.5
29.7
27.9
Of the \u00a329.7m (2023: \u00a327.9m) costs related to employees for the year, \u00a324.5m (2023: \u00a325.7m) is included within administrative
expenses and \u00a32.5m (2023: \u00a3nil) is capitalised within interest capitalisation and staff costs in note 16. Additional employee costs of
\u00a32.7m (2023: \u00a32.2m) are included within service charge expense.
The monthly average number of employees in the Group during the year, excluding Directors, was 185 (2023: 178). Of the Group\u2019s
employees, there were 64 (2023: 59) whose costs were recharged or partially recharged to tenants via service charges.
Staff and associated costs directly attributable to major developments and projects have been capitalised in the carrying value of
the property portfolio, based on an estimation of time spent by staff on individual developments or projects. These costs, which
are not significant, were previously included within employee costs as part of administrative expenses.
13\u2002Share-based payments
Details of the options held by Directors under the Performance Share Plan (PSP) are given in the report of the Remuneration
Committee on page 196.
Equity-settled option scheme
The Employee Share Option Plan (ESOP) is designed to incentivise and retain eligible employees. The ESOP is separate to the PSP
disclosed in the report of the Remuneration Committee. The Directors are not entitled to any awards under the ESOP.
\n \n
Exercise
Adjusted
Movement in options
price
exercise price
1
Outstanding at
Outstanding at
Year of grant
\u00a3
\u00a3
1 January
Granted
Exercised
Lapsed
31 December
For the year to 31 December 2024
2014
27.39
26.27
11,474
\u2013
\u2013
(11,474)
\u2013
2015
34.65
33.23
26,625
\u2013
\u2013
(2,084)
24,541
2016
31.20
29.93
29,041
\u2013
\u2013
(2,845)
26,196
2017
28.93
27.75
57,668
\u2013
\u2013
(3,605)
54,063
2018
30.29
29.57
78,531
\u2013
\u2013
(5,744)
72,787
2019
32.43
32.43
100,515
\u2013
\u2013
(8,440)
92,075
2020
30.02
30.02
136,186
\u2013
\u2013
(15,639)
120,547
2021
33.28
33.28
165,629
\u2013
\u2013
(14,354)
151,275
2022
31.10
31.10
223,000
\u2013
\u2013
(21,710)
201,290
2023
22.86
22.86
324,850
\u2013
\u2013
(48,833)
276,017
2024
21.00
21.00
\u2013
380,200
\u2013
(39,105)
341,095
1,153,519
380,200
\u2013
(173,833)
1,359,886
For the year to 31 December 2023
2013
21.99
21.09
250
\u2013
(250)
\u2013
\u2013
2014
27.39
26.27
13,443
\u2013
\u2013
(1,969)
11,474
2015
34.65
33.23
31,050
\u2013
\u2013
(4,425)
26,625
2016
31.20
29.93
33,987
\u2013
\u2013
(4,946)
29,041
2017
28.93
27.75
63,550
\u2013
\u2013
(5,882)
57,668
2018
30.29
29.57
84,417
\u2013
\u2013
(5,886)
78,531
2019
32.43
32.43
108,825
\u2013
\u2013
(8,310)
100,515
2020
30.02
30.02
147,358
\u2013
\u2013
(11,172)
136,186
2021
33.28
33.28
182,414
\u2013
\u2013
(16,785)
165,629
2022
31.10
31.10
243,341
\u2013
\u2013
(20,341)
223,000
2023
22.86
22.86
\u2013
331,850
\u2013
(7,000)
324,850
908,635
331,850
(250)
(86,716)
1,153,519
\n \n
31 December
31 December
1 January
2024
2023
2023
Number of shares:
Exercisable
541,484
440,040
335,522
Non-exercisable
818,402
713,479
573,113
Weighted average exercise price of share options:
Exercisable
\u00a331.24
\u00a330.33
\u00a330.46
Non-exercisable
\u00a324.11
\u00a327.86
\u00a331.52
Weighted average remaining contracted life of share options:
Exercisable
4.35 years
4.53 years
4.72 years
Non-exercisable
8.40 years
8.47 years
7.47 years
Weighted average exercise price of share options that lapsed:
Exercisable
\u00a330.35
\u00a330.31
\u00a331.87
Non-exercisable
\u00a323.83
\u00a330.58
\u00a331.51
1
In 2018, following the payment of the special dividend of 75 pence per share, the Remuneration Committee exercised their discretion and adjusted the number of
outstanding unapproved \u2018B\u2019 options and their option price, to ensure participants were not disadvantaged by the payment to shareholders of the special dividend.
The weighted average share price at which options were exercised during 2024 was \u00a3nil (2023: \u00a325.00).
The weighted average fair value of options granted during 2024 was \u00a35.61 (2023: \u00a35.71).
The following information is relevant in the determination of the fair value of the options granted during 2024 and 2023 under the
equity-settled employee share plan operated by the Group.
\n \n
2024
2023
Option pricing model used
Binomial lattice
Binomial lattice
Risk free interest rate
4.1%
3.4%
Volatility
31.0%
28.0%
Dividend yield
3.4%
3.4%
For both the 2024 and 2023 grants, additional assumptions have been made that there is no employee turnover and 50% of
employees exercise early when the share options are 20% in the money and 50% of employees exercise early when the share
options are 100% in the money.
The volatility assumption, measured as the standard deviation of expected share price returns, is based on a statistical analysis of
daily prices over the last four years.
Save As You Earn scheme
The Save As You Earn (SAYE) is designed to allow employees (including Directors) to purchase shares in the Company in a tax
efficient manner. The SAYE plan is an HMRC approved scheme. Employees can participate on an annual basis and save up to
\u00a3250 per month per grant. Further details are given in the report of the Remuneration Committee on page 198.
14\u2002Pension costs
The Group operates both a defined contribution scheme and a defined benefit scheme. The latter was acquired as part of the
acquisition of London Merchant Securities plc in 2007 and is closed to new members. All new employees are entitled to join the
defined contribution scheme. The assets of the pension schemes are held separately from those of Group companies.
De\ufb01ned contribution plan
The total expense relating to this plan in the current year was \u00a32.3m (2023: \u00a32.3m).
De\ufb01ned bene\ufb01t plan
The Group sponsors the scheme which is a funded defined benefit arrangement. This is a separate trustee-administered fund
holding the pension scheme assets to meet long-term pension liabilities for past employees. The scheme closed to future benefit
accrual on 31 July 2019. The level of retirement benefit is principally based on basic salary at the last scheme anniversary of
employment prior to leaving active service and increases at 5% pa in deferment.
The trustees of the scheme are required to act in the best interest of the scheme\u2019s beneficiaries. The appointment of the trustees
is determined by the scheme\u2019s trust documentation. It is policy that one third of all trustees should be nominated by the members.
A full actuarial valuation was carried out as at 31 October 2022 in accordance with the scheme funding requirements of the
Pensions Act 2004 and the funding of the scheme is agreed between the Group and the trustees in line with those requirements.
The funding valuation requires the surplus/deficit to be calculated using prudent actuarial assumptions, as opposed to best
estimate assumptions required for pensions accounting purposes.
The 2022 actuarial valuation showed a deficit of \u00a32.8m. The Group agreed with the trustees that it will aim to eliminate the
deficit over a period of 3 years and 2 months from 31 October 2022 by three payments of \u00a31.4m payable by 31 December 2022,
31 December 2023 and the final contribution by 31 December 2026. In addition, the Group has agreed with the trustees that the
Group will meet expenses of running the scheme and levies to the Pension Protection Fund separately. The estimated amount of
total employer contributions expected to be paid to the scheme during the year to 31 December 2025 is \u00a3nil (31 December 2024
actual: \u00a31.4m).
For the purposes of IAS 19 the actuarial valuation as at 31 October 2022, which was carried out by a qualified independent actuary,
has been updated on an approximate basis to 31 December 2024.
Amounts included in the balance sheet
\n \n
2024
2023
2022
\u00a3m
\u00a3m
\u00a3m
Fair value of plan assets
35.2
39.6
42.2
Present value of defined benefit obligation
(33.4)
(37.6)
(41.0)
Net asset
1.8
2.0
1.2
The present value of the scheme liabilities is measured by discounting the best estimate of future cash flows to be paid out by the
scheme. The value calculated in this way is reflected in the net asset in the balance sheet as shown above.
All actuarial gains and losses are recognised in the year in which they occur in the Group Statement of Comprehensive income.
Reconciliation of the impact of the asset ceiling
We have considered the application of IFRIC 14 and deemed it to have no material effect on the IAS 19 figures.
Reconciliation of the opening and closing present value of the de\ufb01ned bene\ufb01t obligation
\n \n
2024
2023
\u00a3m
\u00a3m
At 1 January
37.6
41.0
Interest cost
1.6
1.9
Actuarial gains due to scheme experience
\u2013
(3.0)
Actuarial gains due to changes in demographic assumptions
\u2013
(0.8)
Actuarial (gains)/losses due to changes in financial assumptions
(3.3)
1.2
Benefits paid, death in service premiums and expenses
(2.5)
(2.7)
At 31 December
33.4
37.6
There have been no scheme amendments, curtailments or settlements in the year.
Reconciliation of opening and closing values of the fair value of plan assets
\n\n \n
2024
2023
\u00a3m
\u00a3m
At 1 January
39.6
42.2
Interest income
1.7
2.0
Loss on plan assets (excluding amounts included in interest income)
(3.7)
(3.3)
Contributions by the Group
\u2013
1.4
Benefits paid, death in service premiums and expenses
(2.5)
(2.7)
Other
0.1
\u2013
At 31 December
35.2
39.6
\n
The actual return on the plan assets including interest income over the year was a loss of \u00a32.0m (2023: loss of \u00a31.3m).
\n
De\ufb01ned bene\ufb01t income recognised in the income statement
\n\n \n
2024
2023
\u00a3m
\u00a3m
Net interest income
(0.1)
(0.1)
Defined benefit income recognised in the income statement
(0.1)
(0.1)
\n
Amounts recognised in other comprehensive income
\n\n \n
2024
2023
\u00a3m
\u00a3m
Loss on plan assets (excluding amounts recognised in net interest cost)
(3.7)
(3.3)
Experience gains arising on the defined benefit obligation
\u2013
3.0
Gain from changes in the demographic assumptions underlying the present value of the defined
benefit obligation
\u2013
0.8
Gain/(Loss) from changes in the financial assumptions underlying the present value of the defined
benefit obligation
3.3
(1.2)
Total loss recognised in other comprehensive income
(0.4)
(0.7)
\n
Fair value of plan assets
\n\n \n
2024
2023
2022
\u00a3m
\u00a3m
\u00a3m
LDI
12.0
13.8
4.5
Buy and maintain credit
\u2013
\u2013
2.7
Cash
\u2013
0.1
1.2
Other
0.1
\u2013
4.2
Insured assets
23.1
25.7
29.6
Total assets
35.2
39.6
42.2
\n
The \u00a3nil (2023: \u00a3nil, 2022: \u00a34.2m) in the \u2018other\u2019 asset class is made up of holdings of \u00a3nil (2023: \u00a3nil, 2022: \u00a32.7m) in equity-linked
\n
bonds and \u00a3nil (2023: \u00a3nil, 2022: \u00a31.5m) in Sterling liquidity funds.
\n
The scheme\u2019s assets are held exclusively within instruments that are valued with inputs other than quoted prices in active markets,
\n
but which are observable, with the exception of the holdings in insurance policies and the trustee\u2019s bank account. The insured
\n
assets have been set equal to the value of the insured liabilities but before allowance has been made for the impact of equalising
\n
benefits for the different effects of Guaranteed Minimum Pensions for males and females.
\n
The scheme does not invest directly in property occupied by the Group or in financial securities issued by the Group.
\n
It is the policy of the trustees and the Group to review the investment strategy at the time of each funding valuation. The trustees\u2019
\n
investment objectives and the processes undertaken to measure and manage the risks inherent in the plan investment strategy
\n
are illustrated by the asset allocation at 31 December 2024.
Signi\ufb01cant actuarial assumptions
\n \n
2024
2023
2022
%
%
%
Discount rate
5.4
4.5
4.8
Inflation (RPI)
n/a
n/a
n/a
Salary increases
n/a
n/a
n/a
The mortality assumptions adopted at 31 December 2024 are 85% of the standard tables S3NXA_L, year of birth, no age rating for
males and females, projected using CMI 2023 converging to 1.25% p.a. These imply the following life expectancies:
\n \n
Life expectancy at age 65
Years
Male retiring in 2024
24.4
Female retiring in 2024
26.2
Male retiring in 2044
25.6
Female retiring in 2044
27.5
Analysis of the sensitivity to the principal assumptions of the present value of the de\ufb01ned bene\ufb01t
obligation
\n \n
Change in assumption
Change in liabilities
Discount rate
Decrease of 0.25% p.a
Increase by 3.0%
Rate of mortality
Increase in life expectancy of one year
Increase by 5.0%
The sensitivities shown above are approximate. Each sensitivity considers one change in isolation. The average duration of the
defined benefit obligation at the year ended 31 December 2024 is 11 years (2023: 12 years) for the scheme as a whole or 18 years
(2023: 20 years) when only considering non-insured members.
The scheme typically exposes the Group to actuarial risks such as investment risk, interest rate risk, salary growth risk, mortality
risk and longevity risk. A decrease in corporate bond yields or an increase in life expectancy would result in an increase to the
scheme\u2019s liabilities. This would detrimentally impact the balance sheet position and may give rise to increased charges in the
income statement. This effect would be partially offset by an increase in the value of the scheme\u2019s LDI and gilt holdings.
The best estimate of contributions to be paid by the Group to the plan for the year commencing 1 January 2025 is \u00a3nil.
15\u2002Tax charge
\n \n
2024
2023
\u00a3m
\u00a3m
Corporation tax
UK corporation tax and income tax in respect of results for the year
\u2013
\u2013
Corporation tax charge
\u2013
\u2013
Deferred tax
Origination and reversal of temporary differences
0.1
0.5
Deferred tax charge
0.1
0.5
Tax charge
0.1
0.5
A deferred tax charge of \u00a30.1m has passed through the Group income statement (2023: charge of \u00a30.5m). More information
regarding deferred tax can be found in note 29.
The main rate of corporation tax for 2024 was 25.0% (2023: 23.5%). The difference between the main rate and the tax charge for
the Group are explained below:
\n \n
2024
2023
\u00a3m
\u00a3m
Profit/(loss) before tax
116.0
(475.9)
Expected tax charge/(credit) based on the standard rate of corporation tax in the UK of 25.00%
(2023: 23.50%)
1
29.0
(111.8)
Difference between tax and accounting profit on disposals
(2.1)
6.1
REIT exempt income
(23.7)
(20.8)
Revaluation deficit attributable to REIT properties
1.2
131.7
Expenses and fair value adjustments not allowable for tax purposes
3.6
2.1
Capital allowances
(8.2)
(7.6)
Other differences
0.3
0.8
Tax charge
0.1
0.5
1
Changes to the UK corporation tax rates were substantively enacted as part of the Finance Bill 2021 (on 24 May 2021) and include increasing the main rate to
25% e\ufb00ective on or after 1 April 2023. Deferred taxes at the balance sheet date have been measured using the enacted tax rate and this is re\ufb02ected in these
\ufb01nancial statements.", "dimensions": { "concept": "ifrs-full:DisclosureOfExpensesExplanatory", "language": "en", "entity": "scheme:213800BXKQ9KZNUR1M61", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "TagsThatMustBeAppliedIfCorrespondingInformationIsPresentInAReport_Label_00197": { "value": "Other income relates to fees and commissions earned from tenants in relation to the management of the Group\u2019s properties and was recognised in the Group income statement in accordance with the delivery of services.", "dimensions": { "concept": "ifrs-full:DisclosureOfFeeAndCommissionIncomeExpenseExplanatory", "language": "en", "entity": "scheme:213800BXKQ9KZNUR1M61", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "TagsThatMustBeAppliedIfCorrespondingInformationIsPresentInAReport_Label_00196": { "value": "6\u2002Profit on disposal \n \n
2024
2023
\u00a3m
\u00a3m
Investment property
Gross disposal proceeds
87.5
66.3
Costs of disposal
(0.7)
(0.7)
Net disposal proceeds
86.8
65.6
Carrying value
(79.3)
(64.0)
Adjustment for lease costs and rents recognised in advance
(5.4)
(0.4)
Profit on disposal of investment property
2.1
1.2
Artwork
Gross disposal proceeds
\u2013
\u2013
Costs of disposal
(0.2)
\u2013
Net disposal proceeds
(0.2)
\u2013
Carrying value
\u2013
\u2013
Loss on disposal of artwork
(0.2)
\u2013
Profit on disposal
1.9
1.2
Included within gross disposal proceeds for 2024 is \u00a377.4m relating to the disposal of the Group\u2019s freehold interest in Turnmill EC1 in
June 2024, and \u00a38.5m relating to the disposal of the Group\u2019s freehold interest in Asta House W1 in July 2024.16\u2002Property portfolio \n \n
Total
Owner-
Assets
Total
investment
occupied
held for
Trading
property
Freehold
Leasehold
property
property
sale
property
portfolio
\u00a3m
\u00a3m
\u00a3m
\u00a3m
\u00a3m
\u00a3m
\u00a3m
Carrying value
At 1 January 2024
3,280.5
1,270.9
4,551.4
46.1
\u2013
60.0
4,657.5
Acquisitions
\u2013
47.0
47.0
\u2013
\u2013
\u2013
47.0
Capital expenditure
82.0
42.8
124.8
\u2013
\u2013
57.3
182.1
Interest capitalisation and staff costs
3.4
7.5
10.9
\u2013
\u2013
2.0
12.9
Additions
85.4
97.3
182.7
\u2013
\u2013
59.3
242.0
Disposals
(78.7)
(0.6)
(79.3)
\u2013
\u2013
(3.6)
(82.9)
Transfer from joint venture
\u2013
44.4
44.4
\u2013
\u2013
\u2013
44.4
Transfers
(25.7)
\u2013
(25.7)
\u2013
25.7
\u2013
\u2013
Revaluation
(51.8)
49.1
(2.7)
2.9
\u2013
\u2013
0.2
Movement in grossing up of headlease liabilities
\u2013
(0.7)
(0.7)
\u2013
\u2013
\u2013
(0.7)
At 31 December 2024
3,209.7
1,460.4
4,670.1
49.0
25.7
115.7
4,860.5
At 1 January 2023
3,700.5
1,301.5
5,002.0
50.0
54.2
39.4
5,145.6
Acquisitions
3.8
\u2013
3.8
\u2013
\u2013
\u2013
3.8
Capital expenditure
59.8
72.5
132.3
\u2013
\u2013
20.0
152.3
Interest capitalisation
1.1
4.2
5.3
\u2013
\u2013
1.0
6.3
Additions
64.7
76.7
141.4
\u2013
\u2013
21.0
162.4
Disposals
(7.3)
(2.5)
(9.8)
\u2013
(54.2)
\u2013
(64.0)
Revaluation
(477.4)
(104.1)
(581.5)
(3.9)
\u2013
\u2013
(585.4)
Write-down of trading property
\u2013
\u2013
\u2013
\u2013
\u2013
(0.4)
(0.4)
Movement in grossing up of headlease liabilities
\u2013
(0.7)
(0.7)
\u2013
\u2013
\u2013
(0.7)
At 31 December 2023
3,280.5
1,270.9
4,551.4
46.1
\u2013
60.0
4,657.5
Adjustments from fair value to carrying value
At 31 December 2024
Fair value
3,374.1
1,475.7
4,849.8
49.0
26.0
116.3
5,041.1
Selling costs relating to assets held for sale
\u2013
\u2013
\u2013
\u2013
(0.3)
\u2013
(0.3)
Revaluation of trading property
\u2013
\u2013
\u2013
\u2013
\u2013
(0.6)
(0.6)
Lease incentives and costs included in receivables
(164.4)
(48.4)
(212.8)
\u2013
\u2013
\u2013
(212.8)
Grossing up of headlease liabilities
\u2013
33.1
33.1
\u2013
\u2013
\u2013
33.1
Carrying value
3,209.7
1,460.4
4,670.1
49.0
25.7
115.7
4,860.5
At 31 December 2023
Fair value
3,450.0
1,278.8
4,728.8
46.1
\u2013
69.8
4,844.7
Revaluation of trading property
\u2013
\u2013
\u2013
\u2013
\u2013
(9.8)
(9.8)
Lease incentives and costs included in receivables
(169.5)
(41.5)
(211.0)
\u2013
\u2013
\u2013
(211.0)
Grossing up of headlease liabilities
\u2013
33.6
33.6
\u2013
\u2013
\u2013
33.6
Carrying value
3,280.5
1,270.9
4,551.4
46.1
\u2013
60.0
4,657.5
Reconciliation of fair value
\n \n
2024
2023
\u00a3m
\u00a3m
Portfolio including the Group\u2019s share of joint ventures
5,041.1
4,878.5
Less: joint ventures
\u2013
(33.8)
IFRS property portfolio
5,041.1
4,844.7
The property portfolio is subject to semi-annual external valuations and was revalued at 31 December 2024 by external valuers
on the basis of fair value in accordance with The RICS Valuation \u2013 Professional Standards, which takes account of the properties\u2019
highest and best use. When considering the highest and best use of a property, the external valuers will consider its existing and
potential uses which are physically, legally and financially viable. Where the highest and best use differs from the existing use, the
external valuers will consider the costs and the likelihood of achieving and implementing this change in arriving at the property
valuation. There were no such instances in the year.
The external valuations for the portfolio at December 2024 were carried out by Knight Frank LLP.
Knight Frank valued properties at \u00a35,041.1m (2023: \u00a34,807.9m) and other valuers at \u00a3nil (2023: \u00a336.8m), giving a combined value
of \u00a35,041.1m (2023: \u00a34,844.7m). Of the properties revalued, \u00a349.0m (2023: \u00a346.1m) relating to owner-occupied property was
included within property, plant and equipment and \u00a3116.3m (2023: \u00a369.8m) was in relation to trading property.
The total fees, including the fee for this assignment, earned by Knight Frank (or other companies forming part of the same group
of companies within the UK) from the Group is less than 5.0% of their total UK revenues.
In October 2024, the Group acquired the remaining 50% interest of the Derwent Lazari Baker Street Partnership (the \u2018joint
venture\u2019) from Lazari Investments Limited (\u2018Lazari\u2019) for \u00a347.0m. The joint venture held an interest in three leasehold properties,
38-52, 54-60 and 66-70 Baker Street W1. The fair value of the properties at the date of acquisition was \u00a388.8m. The \u00a347.0m
included in \u2018acquisitions\u2019 (see table above) comprises \u00a344.4m for the fair value of Lazari\u2019s 50% share in the properties, \u00a32.2m in
acquisition costs, and \u00a30.4m in carrying value adjustments for the gross-up of headlease liabilities. Following the acquisition, the
Group\u2019s 50% interest in the joint venture shown as a \u00a344.4m \u2018transfer from investments\u2019 in the table above, has been consolidated
in the Group\u2019s property portfolio. See note 19 for further details.
Certain internal staff and associated costs directly attributable to the management of major schemes are capitalised, based
on the proportion of time spent on each relevant scheme. These costs are capitalised from the date the Group determines it is
probable that the development will progress until the date of practical completion and can be measured reliably.
Net zero carbon and EPC compliance
The Group published its pathway to net zero carbon in July 2020 and has set 2030 as its target date to achieve this. \u00a3123.9m
(year to 31 December 2023: \u00a3102.4m) of eligible \u2018green\u2019 capital expenditure, in accordance with the Group\u2019s Green Finance
Framework, was incurred in the year to 31 December 2024 on the major developments at 80 Charlotte Street W1, 1 Soho Place W1,
The Featherstone Building EC1, 25 Baker Street W1 and Network W1. In addition, the Group continues to utilise carbon credits to
support externally validated green projects to offset embodied carbon. In 2024, the Group paid \u00a31.7m for carbon credits of which
\u00a31.8m is held in prepayments.
To quantify one of the impacts of climate change on the valuation, an independent third-party assessment was carried out in 2021
to estimate the cost of EPC upgrades across the portfolio. Following a review of the latest scope changes in building regulation,
subsequent inflation, disposals, and work carried out to date, the estimated amount was \u00a386m at the end of 2024. Of this amount, a
specific deduction of \u00a341m was included in the 31 December 2024 external valuation. In addition, further amounts have been allowed
for in the expected costs of future refurbishment projects. Any committed capital expenditure has been included in note 34.
Reconciliation of revaluation surplus/(de\ufb01cit)
\n \n
2024
2023
\u00a3m
\u00a3m
Total revaluation deficit
(1.8)
(583.3)
Less:
Share of joint ventures
\u2013
9.3
Lease incentives and costs
(7.2)
(5.8)
Assets held for sale selling costs
(0.3)
\u2013
Trading property revaluation adjustment
9.1
(5.2)
Other
0.4
(0.8)
IFRS revaluation surplus/(deficit)
0.2
(585.8)
Reported in the:
Revaluation deficit
(2.7)
(581.5)
Write-down of trading property
\u2013
(0.4)
Group income statement
(2.7)
(581.9)
Group statement of comprehensive income
2.9
(3.9)
0.2
(585.8)
Valuation process
\n
The valuation reports produced by the external valuers are based on information provided by the Group such as current rents,
\n
terms and conditions of lease agreements, service charges and capital expenditure. This information is derived from the Group\u2019s
\n
financial and property management systems and is subject to the Group\u2019s overall control environment. In addition, the valuation
\n
reports are based on assumptions and valuation models used by the external valuers. The assumptions are typically market related,
\n
such as yields and discount rates, and are based on their professional judgement and market observation and take into account
\n
the impact of climate change and related Environmental, Social and Governance considerations. Each property is considered a
\n
separate asset class based on the unique nature, characteristics and risks of the property.
\n
Members of the Group\u2019s Investments team, who report to the Executive Director responsible for the valuation process, verify all
\n
major inputs to the external valuation reports, assess the individual property valuation changes from the prior year valuation
\n
report and hold discussions with the external valuers. When this process is complete, the valuation report is recommended to the
\n
Audit Committee, which considers it as part of its overall responsibilities.
\n
Valuation techniques
\n
The fair value of the property portfolio has been determined using an income capitalisation technique, whereby contracted and market
\n
rental values are capitalised with a market capitalisation rate. The resulting valuations are cross-checked against the equivalent yields
\n
and the fair market values per square foot derived from comparable recent market transactions on arm\u2019s length terms.
\n
For properties under construction, the fair value is calculated by estimating the fair value of the completed property using the
\n
income capitalisation technique less estimated costs to completion and a risk premium.
\n
These techniques are consistent with the principles in IFRS 13 Fair Value Measurement and use significant unobservable inputs such
\n
that the fair value measurement of each property within the portfolio has been classified as Level 3 in the fair value hierarchy.
\n
There were no transfers between levels in the fair value hierarchy during either 2024 or 2023.
\n
Gains and losses recorded in profit or loss for recurring fair value measurements categorised within Level 3 of the fair value
\n
hierarchy amount to a loss of \u00a32.7m (2023: loss of \u00a3581.5m) and are presented in the Group income statement in the line item
\n
\u2018revaluation deficit\u2019. The revaluation surplus for the owner-occupied property of \u00a32.9m (2023: deficit of \u00a33.9m) was included within
\n
the Group statement of comprehensive income.
\n
All gains and losses recorded in profit or loss in 2024 and 2023 for recurring fair value measurements categorised within Level 3
\n
of the fair value hierarchy are attributable to changes in unrealised gains or losses relating to investment property held at
\n
31 December 2024 and 31 December 2023, respectively.
\n\n\n
Quantitative information about fair value measurement using unobservable inputs (Level 3)
\n\n \n
West End
City
Provincial
Provincial
At 31 December 2024
West End central
borders/other
borders
commercial
land
Total
Valuation technique
Income
Income
Income
Income
Income
capitalisation
capitalisation
capitalisation
capitalisation
capitalisation
Fair value (\u00a3m)
1
3,473.1
301.7
1,173.4
53.9
39.0
5,041.1
Area (\u2018000 sq ft)
3,040
429
1,562
325
\u2013
5,356
Range of unobservable inputs
2
:
Gross ERV (per sq ft pa)
Minimum
\u00a332
\u00a324
\u00a338
\u00a3nil
n/a
3
Maximum
\u00a3118
\u00a359
\u00a375
\u00a315
n/a
3
Weighted average
\u00a369
\u00a352
\u00a357
\u00a315
n/a
3
Net initial yield
Minimum
3.1%
2.5%
3.3%
7.0%
0.0%
Maximum
9.9%
6.8%
6.9%
7.0%
1.4%
Weighted average
3.1%
5.6%
5.2%
7.0%
1.4%
Reversionary yield
Minimum
3.2%
4.8%
3.3%
6.9%
0.0%
Maximum
9.7%
11.4%
8.3%
6.9%
1.4%
Weighted average
5.4%
6.9%
6.9%
6.9%
1.4%
True equivalent yield
(EPRA basis)
Minimum
3.2%
4.4%
5.3%
7.2%
0.0%
Maximum
6.6%
7.1%
6.9%
7.2%
0.0%
Weighted average
5.3%
6.8%
6.3%
7.2%
0.0%
\n\n \n
At 31 December 2023
Income
Income
Income
Income
Income
Valuation technique
capitalisation
capitalisation
capitalisation
capitalisation
capitalisation
Fair value (\u00a3m)
1
3,211.5
318.4
1,272.9
38.8
36.9
4,878.5
Area (\u2018000 sq ft)
2,999
429
1,641
325
\u2013
5,394
Range of unobservable inputs
2
:
Gross ERV (per sq ft pa)
Minimum
\u00a332
\u00a323
\u00a337
\u00a3nil
n/a
3
Maximum
\u00a3103
\u00a359
\u00a374
\u00a313
n/a
3
Weighted average
\u00a367
\u00a352
\u00a354
\u00a313
n/a
3
Net initial yield
Minimum
3.0%
6.4%
2.6%
9.5%
0.0%
Maximum
8.3%
8.3%
6.6%
9.5%
1.5%
Weighted average
3.4%
6.2%
4.8%
9.5%
1.3%
Reversionary yield
Minimum
3.2%
4.6%
3.3%
7.2%
0.0%
Maximum
10.2%
9.0%
7.5%
7.2%
1.5%
Weighted average
5.4%
6.5%
6.4%
7.2%
1.3%
True equivalent yield
(EPRA basis)
Minimum
3.2%
4.3%
5.2%
10.5%
0.0%
Maximum
6.8%
6.9%
6.8%
10.5%
0.0%
Weighted average
5.1%
6.5%
6.1%
10.5%
0.0%
\n
1
Includes the Group\u2019s share of joint ventures.
\n
2
Costs to complete are not deemed a signi\ufb01cant unobservable input by virtue of the high percentage that is already \ufb01xed.
\n
3
There is no calculation of gross ERV per sq ft pa. The land totals 5,500 acres.
Sensitivity of measurement to variations in the signi\ufb01cant unobservable inputs
The significant unobservable inputs used in the fair value measurement categorised within Level 3 of the fair value hierarchy of the
Group\u2019s property portfolio, together with the impact of significant movements in these inputs on the fair value measurement, are
shown below:
\n \n
Impact on fair value measurement
Impact on fair value measurement
Unobservable input
of significant increase in input
of significant decrease in input
Gross ERV
Increase
Decrease
Net initial yield
Decrease
Increase
Reversionary yield
Decrease
Increase
True equivalent yield
Decrease
Increase
There are inter-relationships between these inputs as they are partially determined by market conditions. An increase in the
reversionary yield may accompany an increase in gross ERV and would mitigate its impact on the fair value measurement.
A sensitivity analysis has been performed to ascertain the impact of a 25 basis point shift in true equivalent yield and a \u00a32.50
per sq ft shift in ERV on the property valuations. The Group believes this captures the range of variations in these key valuation
assumptions. The results are shown in the tables below:
\n \n
West End
West End
City
Provincial
central
1
borders/other
borders
commercial
Total
At 31 December 2024
True equivalent yield
+25bp
(4.5%)
(3.5%)
(3.8%)
(3.4%)
(4.2%)
- 25bp
5.0%
3.8%
4.1%
3.6%
4.6%
ERV
+\u00a32.50 psf
3.6%
4.8%
4.4%
14.8%
4.1%
- \u00a32.50 psf
(3.6%)
(4.8%)
(4.4%)
(14.8%)
(4.1%)
At 31 December 2023
True equivalent yield
+25bp
(4.7%)
(3.7%)
(3.9%)
(2.3%)
(4.3%)
- 25bp
5.2%
4.0%
4.3%
2.4%
4.7%
ERV
+\u00a32.50 psf
3.8%
4.8%
4.6%
18.8%
4.3%
- \u00a32.50 psf
(3.8%)
(4.8%)
(4.6%)
(18.8%)
(4.3%)
1
Includes the Group\u2019s share of joint ventures.
Historical cost
\n \n
2024
2023
\u00a3m
\u00a3m
Investment property
3,746.4
3,602.6
Owner-occupied property
19.6
19.6
Assets held for sale
28.8
\u2013
Trading property
132.9
81.8
Total property portfolio
3,927.7
3,704.0
", "dimensions": { "concept": "ifrs-full:DisclosureOfInvestmentPropertyExplanatory", "language": "en", "entity": "scheme:213800BXKQ9KZNUR1M61", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "TagsThatMustBeAppliedIfCorrespondingInformationIsPresentInAReport_Label_00198": { "value": "7\u2002Finance income and finance costs \n \n
2024
2023
\u00a3m
\u00a3m
Finance income
Net interest received on defined benefit pension scheme asset
(0.1)
(0.1)
Bank interest receivable
(0.2)
(0.8)
Finance income
(0.3)
(0.9)
Finance costs
Bank loans
6.1
1.1
Non-utilisation fees
1.9
2.2
Unsecured convertible bonds
4.0
3.9
Unsecured green bonds
6.7
6.7
Secured bonds
11.4
11.4
Unsecured private placement notes
15.6
15.6
Secured loan
2.7
3.3
Amortisation of issue and arrangement costs
2.6
2.6
Amortisation of the fair value of the secured bonds
(1.6)
(1.5)
Obligations under headleases
1.3
1.3
Other
0.4
0.3
Gross finance costs
51.1
46.9
Less: interest capitalised
(11.2)
(6.5)
Finance costs
39.9
40.4
Finance costs of \u00a311.2m (2023: \u00a36.5m) have been capitalised on development projects including trading stock and trading properties,
in accordance with IAS 23 Borrowing Costs, using the Group\u2019s average cost of borrowings during each quarter. Total finance costs
paid to 31 December 2024 were \u00a349.5m (2023: \u00a344.6m) of which \u00a311.2m (2023: \u00a36.5m) out of a total of \u00a3139.9m (2023: \u00a3151.5m)
was included in capital expenditure on the property portfolio in the Group cash flow statement under investing activities.", "dimensions": { "concept": "ifrs-full:DisclosureOfFinanceIncomeExpenseExplanatory", "language": "en", "entity": "scheme:213800BXKQ9KZNUR1M61", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "TagsThatMustBeAppliedIfCorrespondingInformationIsPresentInAReport_Label_00199": { "value": "7\u2002Finance income and finance costs \n \n
2024
2023
\u00a3m
\u00a3m
Finance income
Net interest received on defined benefit pension scheme asset
(0.1)
(0.1)
Bank interest receivable
(0.2)
(0.8)
Finance income
(0.3)
(0.9)
Finance costs
Bank loans
6.1
1.1
Non-utilisation fees
1.9
2.2
Unsecured convertible bonds
4.0
3.9
Unsecured green bonds
6.7
6.7
Secured bonds
11.4
11.4
Unsecured private placement notes
15.6
15.6
Secured loan
2.7
3.3
Amortisation of issue and arrangement costs
2.6
2.6
Amortisation of the fair value of the secured bonds
(1.6)
(1.5)
Obligations under headleases
1.3
1.3
Other
0.4
0.3
Gross finance costs
51.1
46.9
Less: interest capitalised
(11.2)
(6.5)
Finance costs
39.9
40.4
Finance costs of \u00a311.2m (2023: \u00a36.5m) have been capitalised on development projects including trading stock and trading properties,
in accordance with IAS 23 Borrowing Costs, using the Group\u2019s average cost of borrowings during each quarter. Total finance costs
paid to 31 December 2024 were \u00a349.5m (2023: \u00a344.6m) of which \u00a311.2m (2023: \u00a36.5m) out of a total of \u00a3139.9m (2023: \u00a3151.5m)
was included in capital expenditure on the property portfolio in the Group cash flow statement under investing activities.", "dimensions": { "concept": "ifrs-full:DisclosureOfFinanceIncomeExplanatory", "language": "en", "entity": "scheme:213800BXKQ9KZNUR1M61", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "TagsThatMustBeAppliedIfCorrespondingInformationIsPresentInAReport_Label_00200": { "value": "7\u2002Finance income and finance costs \n \n
2024
2023
\u00a3m
\u00a3m
Finance income
Net interest received on defined benefit pension scheme asset
(0.1)
(0.1)
Bank interest receivable
(0.2)
(0.8)
Finance income
(0.3)
(0.9)
Finance costs
Bank loans
6.1
1.1
Non-utilisation fees
1.9
2.2
Unsecured convertible bonds
4.0
3.9
Unsecured green bonds
6.7
6.7
Secured bonds
11.4
11.4
Unsecured private placement notes
15.6
15.6
Secured loan
2.7
3.3
Amortisation of issue and arrangement costs
2.6
2.6
Amortisation of the fair value of the secured bonds
(1.6)
(1.5)
Obligations under headleases
1.3
1.3
Other
0.4
0.3
Gross finance costs
51.1
46.9
Less: interest capitalised
(11.2)
(6.5)
Finance costs
39.9
40.4
Finance costs of \u00a311.2m (2023: \u00a36.5m) have been capitalised on development projects including trading stock and trading properties,
in accordance with IAS 23 Borrowing Costs, using the Group\u2019s average cost of borrowings during each quarter. Total finance costs
paid to 31 December 2024 were \u00a349.5m (2023: \u00a344.6m) of which \u00a311.2m (2023: \u00a36.5m) out of a total of \u00a3139.9m (2023: \u00a3151.5m)
was included in capital expenditure on the property portfolio in the Group cash flow statement under investing activities.", "dimensions": { "concept": "ifrs-full:DisclosureOfFinanceCostExplanatory", "language": "en", "entity": "scheme:213800BXKQ9KZNUR1M61", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "TagsThatMustBeAppliedIfCorrespondingInformationIsPresentInAReport_Label_00201": { "value": "8\u2002Financial derivative termination income
The Group incurred no costs or income in the year to 31 December 2024 (2023: \u00a31.8m net receipts) deferring or terminating
interest rate swaps.21\u2002Trade and other receivables \n \n
2024
2023
\u00a3m
\u00a3m
Trade receivables
13.3
10.4
Other receivables
3.2
2.0
Prepayments
15.4
6.9
Accrued income
Rents recognised in advance
22.0
20.2
Initial direct letting costs
2.8
2.4
Other
1.1
0.8
57.8
42.7
\n \n
2024
2023
\u00a3m
\u00a3m
Group trade receivables are split as follows:
less than three months due
12.9
10.3
between three and six months due
0.2
0.1
between six and twelve months due
0.2
\u2013
13.3
10.4
Group trade receivables are stated net of impairment.
In response to the Group\u2019s climate change agenda, costs of \u00a32.5m (2023: \u00a31.1m) were incurred in relation to a c.100 acre, 18.4MW
solar park on its Scottish land and have been included within prepayments. Resolution to grant planning consent for this project
was received in 2022. Additionally, during 2024 the Group paid \u00a31.7m for carbon credits, bringing the total included in prepayments
to \u00a31.8m.
The Group has \u00a34.6m (2023: \u00a34.6m) of provision for bad debts as shown below. \u00a32.4m (2023: \u00a31.9m) is included in trade receivables,
\u00a30.4m (2023: \u00a30.5m) in accrued income and \u00a31.8m (2023: \u00a32.2m) in prepayments and accrued income within other receivables
(non-current) (note 20).
2024
2023
\u00a3m
\u00a3m
Provision for bad debts
At 1 January
4.6
5.0
Trade receivables provision
0.7
0.5
Lease incentive provision
(0.4)
\u2013
Service charge provision
(0.2)
0.7
Released
(0.1)
(1.6)
At 31 December
4.6
4.6
The provision for bad debts are split as follows:
less than three months due
0.9
0.7
between three and six months due
0.5
0.3
between six and twelve months due
0.5
0.8
over twelve months due
2.7
2.8
4.6
4.6
23\u2002Trade and other payables
2024
2023
\u00a3m
\u00a3m
Trade payables
0.6
0.7
Other payables
3.6
3.6
Other taxes
7.3
3.3
Accruals
57.2
30.5
Deferred income
50.0
50.8
Tenant rent deposits
27.9
27.0
Service charge balances
28.1
32.1
174.7
148.0
Deferred income primarily relates to rents received in advance.25\u2002Net debt and derivative financial instruments \n \n
2024
2023
\u00a3m
\u00a3m
Current liabilities
Other loans
20.0
20.0
3.99% secured loan 2024
\u2013
82.9
1.5% unsecured convertible bonds 2025
174.1
\u2013
194.1
102.9
Non-current liabilities
1.5% unsecured convertible bonds 2025
\u2013
172.1
6.5% secured bonds 2026
178.1
179.6
1.875% unsecured green bonds 2031
347.2
346.8
2.68% unsecured private placement notes 2026
54.9
54.9
3.46% unsecured private placement notes 2028
29.9
29.9
4.41% unsecured private placement notes 2029
24.9
24.9
2.87% unsecured private placement notes 2029
92.8
92.8
2.97% unsecured private placement notes 2031
49.9
49.8
3.57% unsecured private placement notes 2031
74.8
74.8
3.09% unsecured private placement notes 2034
51.8
51.8
4.68% unsecured private placement notes 2034
74.6
74.6
Unsecured bank loans
290.5
81.2
1,269.4
1,233.2
Borrowings
1,463.5
1,336.1
Leasehold liabilities \u2013 current
0.4
0.4
Leasehold liabilities \u2013 non-current
34.2
34.2
Derivative financial instruments \u2013 current
(0.6)
\u2013
Derivative financial instruments \u2013 non-current
\u2013
(2.9)
Gross debt
1,497.5
1,367.8
Reconciliation to net debt:
Gross debt
1,497.5
1,367.8
Derivative financial instruments
0.6
2.9
Cash at bank excluding restricted cash (see note 33)
(15.4)
(13.9)
Net debt
1,482.7
1,356.8
1.5% unsecured convertible bonds 2025
\n
In June 2019 the Group issued \u00a3175m of convertible bonds. The unsecured instruments pay a coupon of 1.5% until June 2025 or the
\n
conversion date, if earlier. The initial conversion price was set at \u00a344.96 per share. In accordance with IAS 32, the equity and debt
\n
components of the bonds are accounted for separately and the fair value of the debt component has been determined using the
\n
market interest rate for an equivalent non-convertible bond, deemed to be 2.3%. As a result, \u00a3167.3m was recognised as a liability
\n
in the balance sheet on issue and the remainder of the proceeds, \u00a37.7m, which represents the equity component, was credited
\n
to reserves. The difference between the fair value of the liability and the principal value is being amortised through the income
\n
statement from the date of issue. Issue costs of \u00a34.0m were allocated between equity and debt and the element relating to the
\n
debt component is being amortised over the life of the bonds. The issue costs apportioned to equity of \u00a30.2m were not amortised.
\n
The fair value was determined by the ask-price of \u00a398.38 per \u00a3100 as at 31 December 2024 (2023: \u00a395.25 per \u00a3100), representing
\n
Level 1 fair value measurement as defined by IFRS 13 Fair Value Measurement. The carrying value at 31 December 2024 was \u00a3174.1m
\n
(2023: \u00a3172.1m).
\n
Reconciliation of nominal value to carrying value:
\n\n \n
\u00a3m
Nominal value
175.0
Fair value adjustment on issue allocated to equity
(7.7)
Debt component on issue
167.3
Unamortised issue costs
(0.3)
Amortisation of fair value adjustment
7.1
Carrying amount included in borrowings
174.1
\n
6.5% secured bonds 2026
\n
As a result of the acquisition of London Merchant Securities plc in 2007, the secured bonds 2026 were included at fair value less
\n
unamortised issue costs. This difference between fair value at acquisition and principal value is being amortised through the
\n
income statement. The fair value at 31 December 2024 was determined by the ask-price of \u00a3100.99 per \u00a3100 (2023: \u00a3101.77
\n
per \u00a3100), representing Level 1 fair value measurement. The carrying value at 31 December 2024 was \u00a3178.1m (2023: \u00a3179.6m).
\n
1.875% unsecured green bonds 2031
\n
In November 2021, the Group issued \u00a3350m of green bonds on a 10-year term maturing in 2031. The unsecured instrument pays a
\n
coupon of 1.875% and the effective interest rate is 1.934%. This represents an issue discount of \u00a31.8m. The unsecured green bonds
\n
2031 are accounted for at amortised cost. The fair value at 31 December 2024 was determined by the ask-price of \u00a380.36 per
\n
\u00a3100 (2023: \u00a379.71 per \u00a3100), representing Level 1 fair value measurement. The carrying value at 31 December 2024 was \u00a3347.2m
\n
(2023: \u00a3346.8m). The \u00a3350m green bonds are used to fund qualifying \u2018green\u2019 expenditure in accordance with the Group\u2019s Green
\n
Finance Framework.
\n
2.68% unsecured private placement notes 2026, 2.87% unsecured private placement notes 2029,
\n
2.97% unsecured private placement notes 2031 and 3.09% unsecured private placement notes 2034
\n
In October 2018, the Group arranged unsecured private placement notes, comprising \u00a355m for 7 years, \u00a393m for 10 years, \u00a350m
\n
for 12 years and \u00a352m for 15 years. The funds were drawn on 31 January 2019. The fair values were determined by discounting
\n
the contractual cash flows by the replacement rate. The replacement rate is the sum of the current underlying Gilt rate plus the
\n
market implied margin. These represent Level 2 fair value measurement. The carrying values at 31 December 2024 were \u00a354.9m
\n
(2023: \u00a354.9m), \u00a392.8m (2023: \u00a392.8m), \u00a349.9m (2023: \u00a349.8m) and \u00a351.8m (2023: \u00a351.8m), respectively.
\n
3.46% unsecured private placement notes 2028 and 3.57% unsecured private placement notes 2031
\n
In February 2016, the Group arranged unsecured private placement notes, comprising \u00a330m for 12 years and \u00a375m for 15 years.
\n
The funds were drawn on 4 May 2016. The fair values were determined by discounting the contractual cash flows by the
\n
replacement rate. The replacement rate is the sum of the current underlying Gilt rate plus the market implied margin. These
\n
represent Level 2 fair value measurement. The carrying values at 31 December 2024 were \u00a329.9m (2023: \u00a329.9m) and \u00a374.8m
\n
(2023: \u00a374.8m), respectively.
\n
4.41% unsecured private placement notes 2029 and 4.68% unsecured private placement notes 2034
\n
In November 2013, the Group arranged unsecured private placement notes, comprising \u00a325m for 15 years and \u00a375m for 20 years.
\n
The funds were drawn on 8 January 2014. The fair values were determined by discounting the contractual cash flows by the
\n
replacement rate. The replacement rate is the sum of the current underlying Gilt rate plus the market implied margin. These
\n
represent Level 2 fair value measurement. The carrying values at 31 December 2024 were \u00a324.9m (2023: \u00a324.9m) and \u00a374.6m
\n
(2023: \u00a374.6m), respectively.
\n\n\n
3.99% secured loan 2024
\n
In July 2012, the Group arranged a 12\u00bc-year secured fixed rate loan. The loan was drawn on 1 August 2012. The fair value was
\n
determined by discounting the contractual cash flows by the replacement rate. The replacement rate is the sum of the current
\n
underlying Gilt rate plus the market implied margin. This represents Level 2 fair value measurement. On 21 October 2024 the loan
\n
was repaid in full and security released, as a result of which the carrying value at 31 December 2024 was \u00a3nil (2023: \u00a382.9m).
\n
Unsecured bank loans
\n
In June 2024, Derwent London plc signed an agreement for an unsecured term loan facility of \u00a3100m. As of 31 December 2024,
\n
the Group had fully drawn all funds from this facility. The loan is for a three-year term and has two one-year extension options.
\n
In December 2024, Derwent London plc signed an agreement for an unsecured facility of \u00a3115m, consisting of a \u00a382.5m term loan
\n
and \u00a332.5m revolving credit facility (RCF). As of 31 December 2024, the Group had fully drawn all funds from the term loan facility.
\n
The loan is for a two-year term and has two one-year extension options.
\n
Unsecured bank borrowings are accounted for at amortised cost. At 31 December 2024, there was \u00a3110.5m (2023: \u00a384.0m)
\n
drawn on the RCFs, \u00a3182.5m (2023: \u00a3nil) drawn on term loans and the combined unamortised arrangement fees were \u00a32.5m
\n
(2023: \u00a32.8m), resulting in the carrying value being \u00a3290.5m (2023: \u00a381.2m).
\n
The main corporate \u00a3450m RCF includes a \u00a3300m \u2018green tranche\u2019 to fund qualifying \u2018green\u2019 expenditure in accordance with the
\n
Group\u2019s Green Finance Framework.
\n
As all main corporate facilities were refinanced or amended recently, the fair values of the Group\u2019s bank loans are deemed to be
\n
approximately the same as their carrying amount, after adjusting for the unamortised arrangement fees, and represent Level 2
\n
fair value measurement.
\n
Undrawn committed bank facilities \u2013 maturity pro\ufb01le
\n\n \n
< 1 year
1 to 2 years
2 to 3 years
3 to 4 years
4 to 5 years
> 5 years
Total
\u00a3m
\u00a3m
\u00a3m
\u00a3m
\u00a3m
\u00a3m
\u00a3m
At 31 December 2024
\u2013
395.5
76.5
\u2013
\u2013
\u2013
472.0
At 31 December 2023
\u2013
\u2013
383.5
82.5
\u2013
\u2013
466.0
\n
Other loans
\n
Other loans consist of a \u00a320.0m interest-free loan with no fixed repayment date from a third party providing development
\n
consultancy services on the residential element of the 25 Baker Street W1 development. The loan will be repaid from the sale
\n
proceeds of these residential apartments after completion of the scheme. The agreement provides for a profit share on completion
\n
of the sales which, under IFRS 9 Financial Instruments, has been deemed to have a carrying value of \u00a3nil at 31 December 2024
\n
(2023: \u00a3nil). The carrying value of the loan at 31 December 2024 was \u00a320.0m (2023: \u00a320.0m).
\n
Derivative \ufb01nancial instruments
\n
The derivative financial instruments consist of interest rate swaps, the fair values of which represent the net present value of the
\n
difference between the contracted fixed rates and the fixed rates payable if the swaps were to be replaced on 31 December 2024
\n
for the period to the contracted expiry dates. These represent Level 2 fair value measurement.
\n
The fair values of the Group\u2019s outstanding interest rate swaps have been estimated using the mid-point of the yield curves
\n
prevailing on the reporting date and represent the net present value of the differences between the contracted rate and the
\n
valuation rate when applied to the projected balances for the period from the reporting date to the contracted expiry dates.
\n
These represent Level 2 fair value measurement.
\n\n \n
Group
Weighted average
Principal
interest rate
Average life
\u00a3m
%
Years
At 31 December 2024
Interest rate swaps
75.0
1.36
0.3
At 31 December 2023
Interest rate swaps
55.0
1.36
1.3
Secured and unsecured debt
\n\n \n
2024
2023
\u00a3m
\u00a3m
Secured
6.5% secured bonds 2026
178.1
179.6
3.99% secured loan 2024
\u2013
82.9
178.1
262.5
Unsecured
1.5% unsecured convertible bonds 2025
174.1
172.1
1.875% unsecured green bonds 2031
347.2
346.8
Unsecured private placement notes 2026 \u2013 2034
453.6
453.5
Unsecured bank loans
290.5
81.2
Other loans
20.0
20.0
1,285.4
1,073.6
Borrowings
1,463.5
1,336.1
\n
As at 31 December 2024, the Group\u2019s secured bonds 2026 were secured by a floating charge over a number of the Group\u2019s
\n
subsidiary companies which contained \u00a3376.3m (2023: \u00a3395.9m) of the Group\u2019s properties.
\n
Fixed interest rate and hedged debt
\n
At 31 December 2024 and 31 December 2023, the Group\u2019s fixed rate and hedged debt included the unsecured convertible bonds,
\n
the unsecured green bonds, the secured bonds, the unsecured private placement notes, other loans and unsecured term loans.
\n
Interest rate exposure
\n
After taking into account the various interest rate hedging instruments entered into by the Group and the Company, the interest
\n
rate exposure of the Group\u2019s and Company\u2019s borrowings were:
\n\n \n
Weighted
Weighted
average
average
Floating rate
Hedged
Fixed rate
Borrowings
interest rate
1
life
\u00a3m
\u00a3m
\u00a3m
\u00a3m
%
Years
At 31 December 2024
1.5% unsecured convertible bonds 2025
\u2013
\u2013
174.1
174.1
2.30
0.4
6.5% secured bonds 2026
\u2013
\u2013
178.1
178.1
6.50
1.2
1.875% unsecured green bonds 2031
\u2013
\u2013
347.2
347.2
1.88
6.9
Unsecured private placement notes 2026 \u2013 2034
\u2013
\u2013
453.6
453.6
3.42
5.6
Unsecured bank loans
216.1
74.4
\u2013
290.5
4.81
2.2
Other loans
2
\u2013
\u2013
20.0
20.0
\u2013
\u2013
216.1
74.4
1,173.0
1,463.5
3.53
4.0
At 31 December 2023
1.5% unsecured convertible bonds 2025
\u2013
\u2013
172.1
172.1
2.30
1.4
6.5% secured bonds 2026
\u2013
\u2013
179.6
179.6
6.50
2.2
1.875% unsecured green bonds 2031
\u2013
\u2013
346.8
346.8
1.88
7.9
Unsecured private placement notes 2026 \u2013 2034
\u2013
\u2013
453.5
453.5
3.42
6.6
3.99% secured loan 2024
\u2013
\u2013
82.9
82.9
3.99
0.8
Unsecured bank loans
28.0
53.2
\u2013
81.2
3.71
3.0
Other loans
2
\u2013
\u2013
20.0
20.0
\u2013
\u2013
28.0
53.2
1,254.9
1,336.1
3.29
5.0
\n
1
The weighted average interest rates are based on the nominal amounts of the debt facilities.
\n
2
Other loans shown above are interest free and have no \ufb01xed repayment date. For further detail, see Other loans section above.
Contractual undiscounted cash out\ufb02ows
IFRS 7 Financial Instruments: Disclosure, requires disclosure of the maturity of the Group\u2019s remaining contractual financial
liabilities. The tables below show the contractual undiscounted cash outflows arising from the Group\u2019s gross debt.
< 1 year
1 to 2 years
2 to 3 years
3 to 4 years
4 to 5 years
> 5 years
Total
\u00a3m
\u00a3m
\u00a3m
\u00a3m
\u00a3m
\u00a3m
\u00a3m
At 31 December 2024
1.5% unsecured convertible bonds 2025
175.0
\u2013
\u2013
\u2013
\u2013
\u2013
175.0
6.5% secured bonds 2026
\u2013
175.0
\u2013
\u2013
\u2013
\u2013
175.0
1.875% unsecured green bonds 2031
\u2013
\u2013
\u2013
\u2013
\u2013
350.0
350.0
Unsecured private placement notes 2026 \u2013 2034
\u2013
55.0
\u2013
30.0
118.0
252.0
455.0
Unsecured bank loans
\u2013
169.5
123.5
\u2013
\u2013
\u2013
293.0
Other loans
20.0
\u2013
\u2013
\u2013
\u2013
\u2013
20.0
Total on maturity
195.0
399.5
123.5
30.0
118.0
602.0
1,468.0
Leasehold liabilities
1.7
1.8
1.8
1.8
1.6
208.6
217.3
Interest on borrowings
50.7
37.4
24.1
20.0
16.1
15.8
164.1
Effect of interest rate swaps
(0.8)
\u2013
\u2013
\u2013
\u2013
\u2013
(0.8)
Gross loan commitments
246.6
438.7
149.4
51.8
135.7
826.4
1,848.6
At 31 December 2023
1.5% unsecured convertible bonds 2025
\u2013
175.0
\u2013
\u2013
\u2013
\u2013
175.0
6.5% secured bonds 2026
\u2013
\u2013
175.0
\u2013
\u2013
\u2013
175.0
1.875% unsecured green bonds 2031
\u2013
\u2013
\u2013
\u2013
\u2013
350.0
350.0
Unsecured private placement notes 2026 \u2013 2034
\u2013
\u2013
55.0
\u2013
30.0
370.0
455.0
3.99% secured loan 2024
83.0
\u2013
\u2013
\u2013
\u2013
\u2013
83.0
Unsecured bank loans
\u2013
\u2013
66.5
17.5
\u2013
\u2013
84.0
Other loans
\u2013
20.0
\u2013
\u2013
\u2013
\u2013
20.0
Total on maturity
83.0
195.0
296.5
17.5
30.0
720.0
1,342.0
Leasehold liabilities
1.7
1.7
1.7
1.7
1.8
209.6
218.2
Interest on borrowings
42.9
37.5
25.4
21.1
20.0
54.3
201.2
Effect of interest rate swaps
(2.4)
(0.4)
\u2013
\u2013
\u2013
\u2013
(2.8)
Gross loan commitments
125.2
233.8
323.6
40.3
51.8
983.9
1,758.6
Reconciliation to borrowings:
Adjustments
Gross loan
Interest on
Effect of interest
Leasehold
Non-cash
commitments
gross debt
rate swaps
liabilities
amortisation
Borrowings
\u00a3m
\u00a3m
\u00a3m
\u00a3m
\u00a3m
\u00a3m
At 31 December 2024
Maturing in:
< 1 year
246.6
(50.7)
0.8
(1.7)
\u2013
195.0
1 to 2 years
438.7
(37.4)
\u2013
(1.8)
(1.8)
397.7
2 to 3 years
149.4
(24.1)
\u2013
(1.8)
(1.9)
121.6
3 to 4 years
51.8
(20.0)
\u2013
(1.8)
3.0
33.0
4 to 5 years
135.7
(16.1)
\u2013
(1.6)
(0.3)
117.7
> 5 years
826.4
(15.8)
\u2013
(208.6)
(3.5)
598.5
1,848.6
(164.1)
0.8
(217.3)
(4.5)
1,463.5
At 31 December 2023
Maturing in:
< 1 year
125.2
(42.9)
2.4
(1.7)
(0.1)
82.9
1 to 2 years
233.8
(37.5)
0.4
(1.7)
\u2013
195.0
2 to 3 years
323.6
(25.4)
\u2013
(1.7)
(5.4)
291.1
3 to 4 years
40.3
(21.1)
\u2013
(1.7)
4.1
21.6
4 to 5 years
51.8
(20.0)
\u2013
(1.8)
(0.1)
29.9
> 5 years
983.9
(54.3)
\u2013
(209.6)
(4.4)
715.6
1,758.6
(201.2)
2.8
(218.2)
(5.9)
1,336.1
Financial instruments \u2013 risk management
The Group is exposed through its operations to the following financial risks:
\u2022 credit risk;
\u2022 market risk; and
\u2022 liquidity risk.
In common with all other businesses, the Group is exposed to risks that arise from its use of financial instruments. The following
describes the Group\u2019s objectives, policies and processes for managing those risks and the methods used to measure them. Further
quantitative information in respect of these risks is presented throughout these financial statements. Further information on risk
as required by IFRS 7 is given on pages 90 to 115.
There have been no substantive changes in the Group\u2019s exposure to financial instrument risks, its objectives, policies and processes
for managing those risks or the methods used to measure them from previous years. The Group\u2019s EPRA loan-to-value ratio has
increased to 29.9% as at 31 December 2024 but remains moderate.
Principal \ufb01nancial instruments
The principal financial instruments used by the Group, from which financial instrument risk arises, are trade receivables, accrued
income arising from the spreading of lease incentives, cash at bank, trade and other payables, floating rate bank loans and
private placement notes, secured and unsecured bonds and interest rate swaps.
General objectives, policies and processes
The Board has overall responsibility for the determination of the Group\u2019s risk management objectives and policies and, whilst
retaining ultimate responsibility for them, it has delegated the authority to executive management for designing and operating
processes that ensure the effective implementation of the objectives and policies.
The overall objective of the Board is to set policies that seek to reduce risk as far as possible without unduly affecting the Group\u2019s
flexibility and its ability to maximise returns. Further details regarding these policies are set out below:
Credit risk
Credit risk is the risk of financial loss to the Group if a customer or counterparty to a financial instrument fails to meet its
contractual obligations. The Group is mainly exposed to credit risk from lease contracts in relation to its property portfolio. It is
Group policy to assess the credit risk of new tenants before entering into such contracts. The Board has a Credit Committee which
assesses each new tenant before a new lease is signed. The review includes the latest sets of financial statements, external ratings
when available and, in some cases, forecast information and bank or trade references. The covenant strength of each tenant is
determined based on this review and, if appropriate, a deposit or a guarantee is obtained. The Committee also reviews existing
tenant covenants from time to time.
Impairment calculations have been carried out on trade receivables and lease incentive receivables, applying IFRS 9 and IAS
36, respectively. In addition, the Credit Committee has reviewed its register of tenants at higher risk, particularly in the retail or
hospitality sectors, those in administration or CVA and the top 50 tenants by size with the remaining occupiers considered on a
sector-by-sector basis.
As the Group operates predominantly in central London, it is subject to some geographical concentration risk. However, this is
mitigated by the wide range of tenants from a broad spectrum of business sectors.
Credit risk also arises from cash and cash equivalents and deposits with banks and financial institutions. For banks and financial
institutions, only independently rated parties with a minimum rating of investment grade are accepted. This risk is also reduced by
the short periods that money is on deposit at any one time.
The carrying amount of financial assets recorded in the financial statements represents the Group\u2019s maximum exposure to credit
risk without taking account of the value of any collateral obtained.
Market risk
Market risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate due to changes in market
prices. Market risk arises for the Group from its use of variable interest-bearing instruments (interest rate risk).
The Group monitors its interest rate exposure on at least a quarterly basis. Sensitivity analysis performed to ascertain the impact
on profit or loss and net assets of a 50-basis point shift in interest rates would result in an increase of \u00a31.1m (2023: \u00a30.1m) or
decrease of \u00a31.1m (2023: \u00a30.1m).
It is currently Group policy that generally between 60% and 85% of external Group borrowings (excluding finance lease payables)
are at fixed rates. Where the Group wishes to vary the amount of external fixed rate debt it holds (subject to it being generally
between 60% and 85% of expected Group borrowings, as noted above), the Group makes use of interest rate derivatives to
achieve the desired interest rate profile. Although the Board accepts that this policy neither protects the Group entirely from
the risk of paying rates in excess of current market rates nor eliminates fully cash flow risk associated with variability in interest
payments, it considers that it achieves an appropriate balance of exposure to these risks. At 31 December 2024, the proportion
of fixed debt held by the Group was within this range at 85% (2023: 98%). During both 2024 and 2023, the Group\u2019s borrowings
at variable rate were denominated in Sterling.
The Group manages its cash flow interest rate risk by using floating-to-fixed interest rate swaps. When the Group raises long-term
borrowings, it is generally at fixed rates.
Liquidity risk
Liquidity risk arises from the Group\u2019s management of working capital and the finance charges and principal repayments on its
debt instruments. It is the risk that the Group will encounter difficulty in meeting its financial obligations as they fall due.
The Group\u2019s policy is to ensure that it will always have sufficient headroom in its loan facilities to allow it to meet its liabilities
when they become due. To achieve this aim, it seeks to maintain committed facilities to meet the expected requirements. The
Group also seeks to reduce liquidity risk by fixing interest rates (and hence cash flows) on a portion of its long-term borrowings.
This is further explained in the \u2018market risk\u2019 section above.
Executive management receives rolling three-year projections of cash flow and loan balances on a regular basis as part of the
Group\u2019s forecasting processes. At the balance sheet date, these projections indicated that the Group expected to have sufficient
liquid resources to meet its obligations under all reasonably expected circumstances.
The Group\u2019s loan facilities and other borrowings are spread across a range of banks and financial institutions so as to minimise any
potential concentration of risk. The liquidity risk of the Group is managed centrally by the finance department.
Capital disclosures
The Group\u2019s capital comprises all components of equity (share capital, share premium, other reserves and retained earnings).
The Group\u2019s objectives when maintaining capital are:
\u2022
to safeguard the entity\u2019s ability to continue as a going concern so that it can continue to provide above average long-term
returns for shareholders; and
\u2022
to provide an above average annualised total return to shareholders.
The Group sets the amount of capital it requires in proportion to risk. The Group manages its capital structure and makes
adjustments to it in light of changes in economic conditions and the risk characteristics of the underlying assets. In order to
maintain or adjust the capital structure, the Group may vary the amount of dividends paid to shareholders subject to the rules
imposed by its REIT status. It may also seek to redeem bonds, return capital to shareholders, issue new shares or sell assets to
reduce debt. Consistent with others in its industry, the Group monitors capital on the basis of NAV gearing and loan-to-value
ratio. During 2024, the Group\u2019s strategy, which was unchanged from 2023, was to maintain the NAV gearing below 80% in normal
circumstances. These two gearing ratios, as well as the net interest cover ratio, are defined in the list of definitions on pages 284
and 285 and are derived in note 40.
The Group is also required to ensure that it has sufficient property assets which are not subject to fixed or floating charges or
other encumbrances. Most of the Group\u2019s debt is unsecured and, accordingly, there was \u00a34.7bn (2023: \u00a34.2bn) of uncharged
property as at 31 December 2024.
26\u2002Financial assets and liabilities and fair values
Categories of \ufb01nancial assets and liabilities
\n \n
Fair value
Financial
Financial
Total
through profit
assets held at
liabilities held at
carrying
and loss
amortised cost
amortised cost
value
\u00a3m
\u00a3m
\u00a3m
\u00a3m
Financial assets
Cash and cash equivalents
\u2013
71.4
\u2013
71.4
Other assets \u2013 current
\u2013
17.6
\u2013
17.6
\u2013
89.0
\u2013
89.0
Financial liabilities
1.5% unsecured convertible bonds 2025
\u2013
\u2013
(174.1)
(174.1)
6.5% secured bonds 2026
\u2013
\u2013
(178.1)
(178.1)
1.875% unsecured green bonds 2031
\u2013
\u2013
(347.2)
(347.2)
Unsecured private placement notes 2026 \u2013 2034
\u2013
\u2013
(453.6)
(453.6)
Bank borrowings due after one year
\u2013
\u2013
(290.5)
(290.5)
Other loans
\u2013
\u2013
(20.0)
(20.0)
Leasehold liabilities
\u2013
\u2013
(34.6)
(34.6)
Derivative financial instruments
0.6
\u2013
\u2013
0.6
Other liabilities \u2013 current
\u2013
\u2013
(117.4)
(117.4)
0.6
\u2013
(1,615.5)
(1,614.9)
At 31 December 2024
0.6
89.0
(1,615.5)
(1,525.9)
Financial assets
Cash and cash equivalents
\u2013
73.0
\u2013
73.0
Other assets \u2013 current
\u2013
13.2
\u2013
13.2
\u2013
86.2
\u2013
86.2
Financial liabilities
1.5% unsecured convertible bonds 2025
\u2013
\u2013
(172.1)
(172.1)
6.5% secured bonds 2026
\u2013
\u2013
(179.6)
(179.6)
1.875% unsecured green bonds 2031
\u2013
\u2013
(346.8)
(346.8)
Unsecured private placement notes 2026 \u2013 2034
\u2013
\u2013
(453.5)
(453.5)
3.99% secured loan 2024
\u2013
\u2013
(82.9)
(82.9)
Bank borrowings due after one year
\u2013
\u2013
(81.2)
(81.2)
Other loans
\u2013
\u2013
(20.0)
(20.0)
Leasehold liabilities
\u2013
\u2013
(34.6)
(34.6)
Derivative financial instruments
2.9
\u2013
\u2013
2.9
Other liabilities \u2013 current
\u2013
\u2013
(93.9)
(93.9)
2.9
\u2013
(1,464.6)
(1,461.7)
At 31 December 2023
2.9
86.2
(1,464.6)
(1,375.5)
Reconciliation of net \ufb01nancial assets and liabilities to gross debt
\n \n
2024
2023
\u00a3m
\u00a3m
Net financial assets and liabilities
(1,525.9)
(1,375.5)
Other assets \u2013 current
(17.6)
(13.2)
Other liabilities \u2013 current
117.4
93.9
Cash and cash equivalents
(71.4)
(73.0)
Gross debt
(1,497.5)
(1,367.8)
Fair value measurement
The table below shows the fair values, where applicable, of borrowings and derivative financial instruments held by the Group,
together with a reconciliation to net financial assets and liabilities. Details of inputs and valuation methods used to derive the fair
values are shown in note 25.
\n \n
Group
Carrying value
Fair value
Fair value
\u00a3m
\u00a3m
hierarchy
At 31 December 2024
1.5% unsecured convertible bonds 2025
(174.1)
(171.6)
Level 1
6.5% secured bonds 2026
(178.1)
(176.7)
Level 1
1.875% unsecured green bonds 2031
(347.2)
(281.2)
Level 1
Unsecured private placement notes 2026 \u2013 2034
(453.6)
(391.3)
Level 2
Bank borrowings due after one year
(290.5)
(293.0)
Level 2
Other loans
(20.0)
(20.0)
Level 2
Derivative financial instruments
0.6
0.6
Level 2
(1,462.9)
(1,333.2)
Amounts not fair valued:
Cash and cash equivalents
71.4
Other assets \u2013 current
17.6
Leasehold liabilities
(34.6)
Other liabilities \u2013 current
(117.4)
Net financial assets and liabilities
(1,525.9)
At 31 December 2023
1.5% unsecured convertible bonds 2025
(172.1)
(164.7)
Level 1
6.5% secured bonds 2026
(179.6)
(178.1)
Level 1
1.875% unsecured green bonds 2031
(346.8)
(279.0)
Level 1
Unsecured private placement notes 2026 \u2013 2034
(453.5)
(399.0)
Level 2
3.99% secured loan 2024
(82.9)
(81.8)
Level 2
Bank borrowings due after one year
(81.2)
(84.0)
Level 2
Other loans
(20.0)
(20.0)
Level 2
Derivative financial instruments
2.9
2.9
Level 2
(1,333.2)
(1,203.7)
Amounts not fair valued:
Cash and cash equivalents
73.0
Other assets \u2013 current
13.2
Leasehold liabilities
(34.6)
Other liabilities \u2013 current
(93.9)
Net financial assets and liabilities
(1,375.5)
The fair values of the following financial assets and liabilities are the same as their carrying values:
\u2022
Cash and cash equivalents.
\u2022
Trade receivables, other receivables and accrued income included within trade and other receivables.
\u2022
Trade payables, other payables and accruals included within trade and other payables.
\u2022 Leasehold liabilities.
There have been no transfers between levels in either 2024 or 2023.
27\u2002Net debt to cash flow reconciliation
Net debt reconciliation
The table below shows net debt movement during the year as a result of cash flows and other non-cash movements.
\n \n
Non-cash changes
Impact of issue
Transfer from
and arrangement
Fair value
non-current to
2023
Cash flows
costs
Other
adjustments
current
2024
\u00a3m
\u00a3m
\u00a3m
\u00a3m
\u00a3m
\u00a3m
\u00a3m
Current liabilities
Borrowings
102.9
(83.0)
0.3
(0.2)
\u2013
174.1
194.1
Leasehold liabilities
0.4
\u2013
\u2013
\u2013
\u2013
\u2013
0.4
Non-current liabilities
Borrowings
1,233.2
208.3
1.9
\u2013
0.1
(174.1)
1,269.4
Leasehold liabilities
34.2
\u2013
\u2013
\u2013
\u2013
\u2013
34.2
Total liabilities from financing activities
1,370.7
125.3
2.2
(0.2)
0.1
\u2013
1,498.1
Cash at bank
1
(13.9)
(1.5)
\u2013
\u2013
\u2013
\u2013
(15.4)
Net debt
1,356.8
123.8
2.2
(0.2)
0.1
\u2013
1,482.7
1
Cash at bank excluding restricted cash (see note 33).", "dimensions": { "concept": "ifrs-full:DisclosureOfFinancialInstrumentsExplanatory", "language": "en", "entity": "scheme:213800BXKQ9KZNUR1M61", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "TagsThatMustBeAppliedIfCorrespondingInformationIsPresentInAReport_Label_00203": { "value": "9\u2002Share of results of joint ventures
2024
2023
\u00a3m
\u00a3m
Net property income
1.9
2.2
Administrative expenses
(0.1)
(0.2)
Revaluation surplus/(deficit)
7.3
(9.2)
Share of result of underlying joint ventures
9.1
(7.2)
Impairment of additional deferred consideration (see note 19)
(7.6)
\u2013
Group share of results of joint ventures
1.5
(7.2)
The share of results of joint ventures for the year ended 31 December 2024 includes the Group\u2019s 50% share in the Derwent Lazari
Baker Street Limited Partnership up to 31 October 2024, when the Group acquired the remaining interest in the partnership.
See note 19 for further details of the Group\u2019s joint ventures.At 31 December 2024 the Group had a 50% interest in two (2023: four) joint venture vehicles, Dorrington Derwent Holdings
Limited and Primister Limited.
In October 2024, the Group acquired the remaining 50% interest of the Derwent Lazari Baker Street Partnership from Lazari
Investments Limited, this was accounted for as an asset acquisition. This resulted in full ownership of the assets and liabilities
of the partnership.
As part of the acquisition of the Group\u2019s initial 50% interest in the Derwent Lazari Baker Street Partnership in 2021, additional
deferred consideration of \u00a37.3m was agreed, subject to certain conditions being satisfied in relation to planning and regearing of
the headlease. This has previously been disclosed as a contingent liability as the conditions had not been met and the outcome
was uncertain.
In August 2024, resolution to grant planning was received and, as a result, this amount is now being accrued for as deferred
consideration, along with fees of \u00a30.3m (total \u00a37.6m). This was recognised as an addition to the Group\u2019s investment in the joint
venture, with settlement expected in 2025.
Following the acquisition of the remaining 50%, the initial 50% interest held by the Group was transferred from investments at fair
value of \u00a344.4m to investment property (see note 16) and the remaining assets and liabilities of \u00a30.5m have been consolidated
in the Group\u2019s balance sheet. The \u00a37.6m deferred consideration was impaired as it does not form part of the fair value of the
properties being transferred.
\n \n
2024
2023
\u00a3m
\u00a3m
At 1 January
35.8
43.9
Deferred consideration and fees on initial formation of joint venture
7.6
\u2013
Revaluation surplus/(deficit)
7.3
(9.2)
Other profit from operations
1.8
2.0
Transfer to investment property (see note 16)
(44.4)
\u2013
Transfer to assets and liabilities
(0.5)
\u2013
Impairment of additional deferred consideration
(7.6)
\u2013
Repayment of joint venture loans
\u2013
(0.6)
Distributions received
\u2013
(0.3)
At 31 December
\u2013
35.8
The Group\u2019s share of its investments in joint ventures is represented by the following amounts in the underlying joint venture entities.
\n \n
2024
2023
Joint ventures
Group share
Joint ventures
Group share
\u00a3m
\u00a3m
\u00a3m
\u00a3m
Non-current assets
\u2013
\u2013
67.9
33.9
Current assets
\u2013
\u2013
7.2
3.6
Current liabilities
\u2013
\u2013
(2.8)
(1.4)
Non-current liabilities
\u2013
\u2013
(121.0)
(60.5)
Net liabilities
\u2013
\u2013
(48.7)
(24.4)
Loans provided to joint ventures
\u2013
60.2
Total investment in underlying joint ventures
\u2013
35.8
Net property income
3.8
1.9
4.4
2.2
Administrative expenses
(0.3)
(0.1)
(0.4)
(0.2)
Revaluation surplus/(deficit)
14.6
7.3
(18.4)
(9.2)
Share of results of underlying joint ventures
18.1
9.1
(14.4)
(7.2)
Impairment of additional deferred consideration
(7.6)
\u2013
Group share of results of joint ventures
1.5
(7.2)
", "dimensions": { "concept": "ifrs-full:DisclosureOfJointVenturesExplanatory", "language": "en", "entity": "scheme:213800BXKQ9KZNUR1M61", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "TagsThatMustBeAppliedIfCorrespondingInformationIsPresentInAReport_Label_00202": { "value": "9\u2002Share of results of joint ventures
2024
2023
\u00a3m
\u00a3m
Net property income
1.9
2.2
Administrative expenses
(0.1)
(0.2)
Revaluation surplus/(deficit)
7.3
(9.2)
Share of result of underlying joint ventures
9.1
(7.2)
Impairment of additional deferred consideration (see note 19)
(7.6)
\u2013
Group share of results of joint ventures
1.5
(7.2)
The share of results of joint ventures for the year ended 31 December 2024 includes the Group\u2019s 50% share in the Derwent Lazari
Baker Street Limited Partnership up to 31 October 2024, when the Group acquired the remaining interest in the partnership.
See note 19 for further details of the Group\u2019s joint ventures.19\u2002Investments
At 31 December 2024 the Group had a 50% interest in two (2023: four) joint venture vehicles, Dorrington Derwent Holdings
Limited and Primister Limited.
In October 2024, the Group acquired the remaining 50% interest of the Derwent Lazari Baker Street Partnership from Lazari
Investments Limited, this was accounted for as an asset acquisition. This resulted in full ownership of the assets and liabilities
of the partnership.
As part of the acquisition of the Group\u2019s initial 50% interest in the Derwent Lazari Baker Street Partnership in 2021, additional
deferred consideration of \u00a37.3m was agreed, subject to certain conditions being satisfied in relation to planning and regearing of
the headlease. This has previously been disclosed as a contingent liability as the conditions had not been met and the outcome
was uncertain.
In August 2024, resolution to grant planning was received and, as a result, this amount is now being accrued for as deferred
consideration, along with fees of \u00a30.3m (total \u00a37.6m). This was recognised as an addition to the Group\u2019s investment in the joint
venture, with settlement expected in 2025.
Following the acquisition of the remaining 50%, the initial 50% interest held by the Group was transferred from investments at fair
value of \u00a344.4m to investment property (see note 16) and the remaining assets and liabilities of \u00a30.5m have been consolidated
in the Group\u2019s balance sheet. The \u00a37.6m deferred consideration was impaired as it does not form part of the fair value of the
properties being transferred.
\n \n
2024
2023
\u00a3m
\u00a3m
At 1 January
35.8
43.9
Deferred consideration and fees on initial formation of joint venture
7.6
\u2013
Revaluation surplus/(deficit)
7.3
(9.2)
Other profit from operations
1.8
2.0
Transfer to investment property (see note 16)
(44.4)
\u2013
Transfer to assets and liabilities
(0.5)
\u2013
Impairment of additional deferred consideration
(7.6)
\u2013
Repayment of joint venture loans
\u2013
(0.6)
Distributions received
\u2013
(0.3)
At 31 December
\u2013
35.8
The Group\u2019s share of its investments in joint ventures is represented by the following amounts in the underlying joint venture entities.
\n \n
2024
2023
Joint ventures
Group share
Joint ventures
Group share
\u00a3m
\u00a3m
\u00a3m
\u00a3m
Non-current assets
\u2013
\u2013
67.9
33.9
Current assets
\u2013
\u2013
7.2
3.6
Current liabilities
\u2013
\u2013
(2.8)
(1.4)
Non-current liabilities
\u2013
\u2013
(121.0)
(60.5)
Net liabilities
\u2013
\u2013
(48.7)
(24.4)
Loans provided to joint ventures
\u2013
60.2
Total investment in underlying joint ventures
\u2013
35.8
Net property income
3.8
1.9
4.4
2.2
Administrative expenses
(0.3)
(0.1)
(0.4)
(0.2)
Revaluation surplus/(deficit)
14.6
7.3
(18.4)
(9.2)
Share of results of underlying joint ventures
18.1
9.1
(14.4)
(7.2)
Impairment of additional deferred consideration
(7.6)
\u2013
Group share of results of joint ventures
1.5
(7.2)
", "dimensions": { "concept": "ifrs-full:DisclosureOfInterestsInOtherEntitiesExplanatory", "language": "en", "entity": "scheme:213800BXKQ9KZNUR1M61", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "TagsThatMustBeAppliedIfCorrespondingInformationIsPresentInAReport_Label_00204": { "value": "9\u2002Share of results of joint ventures
2024
2023
\u00a3m
\u00a3m
Net property income
1.9
2.2
Administrative expenses
(0.1)
(0.2)
Revaluation surplus/(deficit)
7.3
(9.2)
Share of result of underlying joint ventures
9.1
(7.2)
Impairment of additional deferred consideration (see note 19)
(7.6)
\u2013
Group share of results of joint ventures
1.5
(7.2)
The share of results of joint ventures for the year ended 31 December 2024 includes the Group\u2019s 50% share in the Derwent Lazari
Baker Street Limited Partnership up to 31 October 2024, when the Group acquired the remaining interest in the partnership.
See note 19 for further details of the Group\u2019s joint ventures.19\u2002Investments
At 31 December 2024 the Group had a 50% interest in two (2023: four) joint venture vehicles, Dorrington Derwent Holdings
Limited and Primister Limited.
In October 2024, the Group acquired the remaining 50% interest of the Derwent Lazari Baker Street Partnership from Lazari
Investments Limited, this was accounted for as an asset acquisition. This resulted in full ownership of the assets and liabilities
of the partnership.
As part of the acquisition of the Group\u2019s initial 50% interest in the Derwent Lazari Baker Street Partnership in 2021, additional
deferred consideration of \u00a37.3m was agreed, subject to certain conditions being satisfied in relation to planning and regearing of
the headlease. This has previously been disclosed as a contingent liability as the conditions had not been met and the outcome
was uncertain.
In August 2024, resolution to grant planning was received and, as a result, this amount is now being accrued for as deferred
consideration, along with fees of \u00a30.3m (total \u00a37.6m). This was recognised as an addition to the Group\u2019s investment in the joint
venture, with settlement expected in 2025.
Following the acquisition of the remaining 50%, the initial 50% interest held by the Group was transferred from investments at fair
value of \u00a344.4m to investment property (see note 16) and the remaining assets and liabilities of \u00a30.5m have been consolidated
in the Group\u2019s balance sheet. The \u00a37.6m deferred consideration was impaired as it does not form part of the fair value of the
properties being transferred.
\n \n
2024
2023
\u00a3m
\u00a3m
At 1 January
35.8
43.9
Deferred consideration and fees on initial formation of joint venture
7.6
\u2013
Revaluation surplus/(deficit)
7.3
(9.2)
Other profit from operations
1.8
2.0
Transfer to investment property (see note 16)
(44.4)
\u2013
Transfer to assets and liabilities
(0.5)
\u2013
Impairment of additional deferred consideration
(7.6)
\u2013
Repayment of joint venture loans
\u2013
(0.6)
Distributions received
\u2013
(0.3)
At 31 December
\u2013
35.8
The Group\u2019s share of its investments in joint ventures is represented by the following amounts in the underlying joint venture entities.
\n \n
2024
2023
Joint ventures
Group share
Joint ventures
Group share
\u00a3m
\u00a3m
\u00a3m
\u00a3m
Non-current assets
\u2013
\u2013
67.9
33.9
Current assets
\u2013
\u2013
7.2
3.6
Current liabilities
\u2013
\u2013
(2.8)
(1.4)
Non-current liabilities
\u2013
\u2013
(121.0)
(60.5)
Net liabilities
\u2013
\u2013
(48.7)
(24.4)
Loans provided to joint ventures
\u2013
60.2
Total investment in underlying joint ventures
\u2013
35.8
Net property income
3.8
1.9
4.4
2.2
Administrative expenses
(0.3)
(0.1)
(0.4)
(0.2)
Revaluation surplus/(deficit)
14.6
7.3
(18.4)
(9.2)
Share of results of underlying joint ventures
18.1
9.1
(14.4)
(7.2)
Impairment of additional deferred consideration
(7.6)
\u2013
Group share of results of joint ventures
1.5
(7.2)
", "dimensions": { "concept": "ifrs-full:DisclosureOfInvestmentsAccountedForUsingEquityMethodExplanatory", "language": "en", "entity": "scheme:213800BXKQ9KZNUR1M61", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "TagsThatMustBeAppliedIfCorrespondingInformationIsPresentInAReport_Label_00205": { "value": "10\u2002Profit/(loss) before tax
2024
2023
\u00a3m
\u00a3m
This is arrived at after charging:
Depreciation
1.0
1.1
Rent payable under headleases
1.5
2.3
Auditor\u2019s remuneration
Audit \u2013 Group
0.6
0.5
Audit \u2013 subsidiaries
0.1
0.1
In 2024, audit fees for the Group were \u00a3572,650 (2023: \u00a3501,000) and for the subsidiaries \u00a3101,325 (2023: \u00a3118,500). In addition,
PwC were remunerated \u00a374,025 (2023: \u00a370,500) for the review of the interim results, \u00a340,000 (2023: \u00a3nil) for green finance
assurance, and \u00a371,000 (2023: \u00a3nil) for other non-assurance related services.", "dimensions": { "concept": "ifrs-full:DisclosureOfProfitLossFromOperatingActivitiesExplanatory", "language": "en", "entity": "scheme:213800BXKQ9KZNUR1M61", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "TagsThatMustBeAppliedIfCorrespondingInformationIsPresentInAReport_Label_00206": { "value": "10\u2002Profit/(loss) before tax
2024
2023
\u00a3m
\u00a3m
This is arrived at after charging:
Depreciation
1.0
1.1
Rent payable under headleases
1.5
2.3
Auditor\u2019s remuneration
Audit \u2013 Group
0.6
0.5
Audit \u2013 subsidiaries
0.1
0.1
In 2024, audit fees for the Group were \u00a3572,650 (2023: \u00a3501,000) and for the subsidiaries \u00a3101,325 (2023: \u00a3118,500). In addition,
PwC were remunerated \u00a374,025 (2023: \u00a370,500) for the review of the interim results, \u00a340,000 (2023: \u00a3nil) for green finance
assurance, and \u00a371,000 (2023: \u00a3nil) for other non-assurance related services.", "dimensions": { "concept": "ifrs-full:DisclosureOfAuditorsRemunerationExplanatory", "language": "en", "entity": "scheme:213800BXKQ9KZNUR1M61", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "TagsThatMustBeAppliedIfCorrespondingInformationIsPresentInAReport_Label_00207": { "value": "
2024
2023
\u00a3m
\u00a3m
This is arrived at after charging:
Depreciation
1.0
1.1
Rent payable under headleases
1.5
2.3
Auditor\u2019s remuneration
Audit \u2013 Group
0.6
0.5
Audit \u2013 subsidiaries
0.1
0.1
17\u2002Property, plant and equipment
Owner-
occupied
property
Artwork
Other
Total
\u00a3m
\u00a3m
\u00a3m
\u00a3m
At 1 January 2024
46.1
0.8
3.0
49.9
Additions
\u2013
\u2013
0.3
0.3
Depreciation
\u2013
\u2013
(1.0)
(1.0)
Revaluation
2.9
(0.1)
\u2013
2.8
At 31 December 2024
49.0
0.7
2.3
52.0
At 1 January 2023
50.0
0.8
3.5
54.3
Additions
\u2013
\u2013
0.6
0.6
Depreciation
\u2013
\u2013
(1.1)
(1.1)
Revaluation
(3.9)
\u2013
\u2013
(3.9)
At 31 December 2023
46.1
0.8
3.0
49.9
Net book value
Cost or valuation
49.0
0.7
8.7
58.4
Accumulated depreciation
\u2013
\u2013
(6.4)
(6.4)
At 31 December 2024
49.0
0.7
2.3
52.0
Net book value
Cost or valuation
46.1
0.8
8.4
55.3
Accumulated depreciation
\u2013
\u2013
(5.4)
(5.4)
At 31 December 2023
46.1
0.8
3.0
49.9
", "dimensions": { "concept": "ifrs-full:DisclosureOfDepreciationAndAmortisationExpenseExplanatory", "language": "en", "entity": "scheme:213800BXKQ9KZNUR1M61", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "TagsThatMustBeAppliedIfCorrespondingInformationIsPresentInAReport_Label_00208": { "value": "11\u2002Directors\u2019 emoluments
2024
2023
\u00a3m
\u00a3m
Remuneration for management services
4.6
3.3
Post-employment benefits
0.4
0.4
5.0
3.7
National insurance contributions
0.7
0.5
5.7
4.2
An amount of \u00a31.2m (2023: \u00a30.9m) attributable to the Directors is included within share-based payments expense of \u00a33.1m
(2023: \u00a32.5m) relating to equity-settled schemes in note 12. This is in accordance with IFRS 2 Share-based Payment.
Details of the Directors\u2019 remuneration awards under the long-term incentive plan and options held by the Directors under
the Group share option schemes are given on pages 194 to 199 of the report of the Remuneration Committee. The only key
management personnel are the Directors.", "dimensions": { "concept": "ifrs-full:DisclosureOfInformationAboutKeyManagementPersonnelExplanatory", "language": "en", "entity": "scheme:213800BXKQ9KZNUR1M61", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "TagsThatMustBeAppliedIfCorrespondingInformationIsPresentInAReport_Label_00209": { "value": "12\u2002Employees \n \n
2024
2023
\u00a3m
\u00a3m
Staff costs, including those of Directors:
Wages and salaries
20.2
19.9
Social security costs
3.4
2.9
Other pension costs
3.0
2.6
Share-based payments expense relating to equity-settled schemes
3.1
2.5
29.7
27.9
Of the \u00a329.7m (2023: \u00a327.9m) costs related to employees for the year, \u00a324.5m (2023: \u00a325.7m) is included within administrative
expenses and \u00a32.5m (2023: \u00a3nil) is capitalised within interest capitalisation and staff costs in note 16. Additional employee costs of
\u00a32.7m (2023: \u00a32.2m) are included within service charge expense.
The monthly average number of employees in the Group during the year, excluding Directors, was 185 (2023: 178). Of the Group\u2019s
employees, there were 64 (2023: 59) whose costs were recharged or partially recharged to tenants via service charges.
Staff and associated costs directly attributable to major developments and projects have been capitalised in the carrying value of
the property portfolio, based on an estimation of time spent by staff on individual developments or projects. These costs, which
are not significant, were previously included within employee costs as part of administrative expenses.", "dimensions": { "concept": "ifrs-full:DisclosureOfEmployeeBenefitsExplanatory", "language": "en", "entity": "scheme:213800BXKQ9KZNUR1M61", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "TagsThatMustBeAppliedIfCorrespondingInformationIsPresentInAReport_Label_00210": { "value": "12\u2002Employees \n \n
2024
2023
\u00a3m
\u00a3m
Staff costs, including those of Directors:
Wages and salaries
20.2
19.9
Social security costs
3.4
2.9
Other pension costs
3.0
2.6
Share-based payments expense relating to equity-settled schemes
3.1
2.5
29.7
27.9
Of the \u00a329.7m (2023: \u00a327.9m) costs related to employees for the year, \u00a324.5m (2023: \u00a325.7m) is included within administrative
expenses and \u00a32.5m (2023: \u00a3nil) is capitalised within interest capitalisation and staff costs in note 16. Additional employee costs of
\u00a32.7m (2023: \u00a32.2m) are included within service charge expense.
The monthly average number of employees in the Group during the year, excluding Directors, was 185 (2023: 178). Of the Group\u2019s
employees, there were 64 (2023: 59) whose costs were recharged or partially recharged to tenants via service charges.
Staff and associated costs directly attributable to major developments and projects have been capitalised in the carrying value of
the property portfolio, based on an estimation of time spent by staff on individual developments or projects. These costs, which
are not significant, were previously included within employee costs as part of administrative expenses.", "dimensions": { "concept": "ifrs-full:DisclosureOfInformationAboutEmployeesExplanatory", "language": "en", "entity": "scheme:213800BXKQ9KZNUR1M61", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "TagsThatMustBeAppliedIfCorrespondingInformationIsPresentInAReport_Label_00211": { "value": "13\u2002Share-based payments
Details of the options held by Directors under the Performance Share Plan (PSP) are given in the report of the Remuneration
Committee on page 196.
Equity-settled option scheme
The Employee Share Option Plan (ESOP) is designed to incentivise and retain eligible employees. The ESOP is separate to the PSP
disclosed in the report of the Remuneration Committee. The Directors are not entitled to any awards under the ESOP.
\n \n
Exercise
Adjusted
Movement in options
price
exercise price
1
Outstanding at
Outstanding at
Year of grant
\u00a3
\u00a3
1 January
Granted
Exercised
Lapsed
31 December
For the year to 31 December 2024
2014
27.39
26.27
11,474
\u2013
\u2013
(11,474)
\u2013
2015
34.65
33.23
26,625
\u2013
\u2013
(2,084)
24,541
2016
31.20
29.93
29,041
\u2013
\u2013
(2,845)
26,196
2017
28.93
27.75
57,668
\u2013
\u2013
(3,605)
54,063
2018
30.29
29.57
78,531
\u2013
\u2013
(5,744)
72,787
2019
32.43
32.43
100,515
\u2013
\u2013
(8,440)
92,075
2020
30.02
30.02
136,186
\u2013
\u2013
(15,639)
120,547
2021
33.28
33.28
165,629
\u2013
\u2013
(14,354)
151,275
2022
31.10
31.10
223,000
\u2013
\u2013
(21,710)
201,290
2023
22.86
22.86
324,850
\u2013
\u2013
(48,833)
276,017
2024
21.00
21.00
\u2013
380,200
\u2013
(39,105)
341,095
1,153,519
380,200
\u2013
(173,833)
1,359,886
For the year to 31 December 2023
2013
21.99
21.09
250
\u2013
(250)
\u2013
\u2013
2014
27.39
26.27
13,443
\u2013
\u2013
(1,969)
11,474
2015
34.65
33.23
31,050
\u2013
\u2013
(4,425)
26,625
2016
31.20
29.93
33,987
\u2013
\u2013
(4,946)
29,041
2017
28.93
27.75
63,550
\u2013
\u2013
(5,882)
57,668
2018
30.29
29.57
84,417
\u2013
\u2013
(5,886)
78,531
2019
32.43
32.43
108,825
\u2013
\u2013
(8,310)
100,515
2020
30.02
30.02
147,358
\u2013
\u2013
(11,172)
136,186
2021
33.28
33.28
182,414
\u2013
\u2013
(16,785)
165,629
2022
31.10
31.10
243,341
\u2013
\u2013
(20,341)
223,000
2023
22.86
22.86
\u2013
331,850
\u2013
(7,000)
324,850
908,635
331,850
(250)
(86,716)
1,153,519
\n \n
31 December
31 December
1 January
2024
2023
2023
Number of shares:
Exercisable
541,484
440,040
335,522
Non-exercisable
818,402
713,479
573,113
Weighted average exercise price of share options:
Exercisable
\u00a331.24
\u00a330.33
\u00a330.46
Non-exercisable
\u00a324.11
\u00a327.86
\u00a331.52
Weighted average remaining contracted life of share options:
Exercisable
4.35 years
4.53 years
4.72 years
Non-exercisable
8.40 years
8.47 years
7.47 years
Weighted average exercise price of share options that lapsed:
Exercisable
\u00a330.35
\u00a330.31
\u00a331.87
Non-exercisable
\u00a323.83
\u00a330.58
\u00a331.51
1
In 2018, following the payment of the special dividend of 75 pence per share, the Remuneration Committee exercised their discretion and adjusted the number of
outstanding unapproved \u2018B\u2019 options and their option price, to ensure participants were not disadvantaged by the payment to shareholders of the special dividend.
The weighted average share price at which options were exercised during 2024 was \u00a3nil (2023: \u00a325.00).
The weighted average fair value of options granted during 2024 was \u00a35.61 (2023: \u00a35.71).
The following information is relevant in the determination of the fair value of the options granted during 2024 and 2023 under the
equity-settled employee share plan operated by the Group.
\n \n
2024
2023
Option pricing model used
Binomial lattice
Binomial lattice
Risk free interest rate
4.1%
3.4%
Volatility
31.0%
28.0%
Dividend yield
3.4%
3.4%
For both the 2024 and 2023 grants, additional assumptions have been made that there is no employee turnover and 50% of
employees exercise early when the share options are 20% in the money and 50% of employees exercise early when the share
options are 100% in the money.
The volatility assumption, measured as the standard deviation of expected share price returns, is based on a statistical analysis of
daily prices over the last four years.
Save As You Earn scheme
The Save As You Earn (SAYE) is designed to allow employees (including Directors) to purchase shares in the Company in a tax
efficient manner. The SAYE plan is an HMRC approved scheme. Employees can participate on an annual basis and save up to
\u00a3250 per month per grant. Further details are given in the report of the Remuneration Committee on page 198. ", "dimensions": { "concept": "ifrs-full:DisclosureOfSharebasedPaymentArrangementsExplanatory", "language": "en", "entity": "scheme:213800BXKQ9KZNUR1M61", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "TagsThatMustBeAppliedIfCorrespondingInformationIsPresentInAReport_Label_00212": { "value": "14\u2002Pension costs
The Group operates both a defined contribution scheme and a defined benefit scheme. The latter was acquired as part of the
acquisition of London Merchant Securities plc in 2007 and is closed to new members. All new employees are entitled to join the
defined contribution scheme. The assets of the pension schemes are held separately from those of Group companies.
De\ufb01ned contribution plan
The total expense relating to this plan in the current year was \u00a32.3m (2023: \u00a32.3m).
De\ufb01ned bene\ufb01t plan
The Group sponsors the scheme which is a funded defined benefit arrangement. This is a separate trustee-administered fund
holding the pension scheme assets to meet long-term pension liabilities for past employees. The scheme closed to future benefit
accrual on 31 July 2019. The level of retirement benefit is principally based on basic salary at the last scheme anniversary of
employment prior to leaving active service and increases at 5% pa in deferment.
The trustees of the scheme are required to act in the best interest of the scheme\u2019s beneficiaries. The appointment of the trustees
is determined by the scheme\u2019s trust documentation. It is policy that one third of all trustees should be nominated by the members.
A full actuarial valuation was carried out as at 31 October 2022 in accordance with the scheme funding requirements of the
Pensions Act 2004 and the funding of the scheme is agreed between the Group and the trustees in line with those requirements.
The funding valuation requires the surplus/deficit to be calculated using prudent actuarial assumptions, as opposed to best
estimate assumptions required for pensions accounting purposes.
The 2022 actuarial valuation showed a deficit of \u00a32.8m. The Group agreed with the trustees that it will aim to eliminate the
deficit over a period of 3 years and 2 months from 31 October 2022 by three payments of \u00a31.4m payable by 31 December 2022,
31 December 2023 and the final contribution by 31 December 2026. In addition, the Group has agreed with the trustees that the
Group will meet expenses of running the scheme and levies to the Pension Protection Fund separately. The estimated amount of
total employer contributions expected to be paid to the scheme during the year to 31 December 2025 is \u00a3nil (31 December 2024
actual: \u00a31.4m).
For the purposes of IAS 19 the actuarial valuation as at 31 October 2022, which was carried out by a qualified independent actuary,
has been updated on an approximate basis to 31 December 2024.
Amounts included in the balance sheet
\n \n
2024
2023
2022
\u00a3m
\u00a3m
\u00a3m
Fair value of plan assets
35.2
39.6
42.2
Present value of defined benefit obligation
(33.4)
(37.6)
(41.0)
Net asset
1.8
2.0
1.2
The present value of the scheme liabilities is measured by discounting the best estimate of future cash flows to be paid out by the
scheme. The value calculated in this way is reflected in the net asset in the balance sheet as shown above.
All actuarial gains and losses are recognised in the year in which they occur in the Group Statement of Comprehensive income.
Reconciliation of the impact of the asset ceiling
We have considered the application of IFRIC 14 and deemed it to have no material effect on the IAS 19 figures.
Reconciliation of the opening and closing present value of the de\ufb01ned bene\ufb01t obligation
\n \n
2024
2023
\u00a3m
\u00a3m
At 1 January
37.6
41.0
Interest cost
1.6
1.9
Actuarial gains due to scheme experience
\u2013
(3.0)
Actuarial gains due to changes in demographic assumptions
\u2013
(0.8)
Actuarial (gains)/losses due to changes in financial assumptions
(3.3)
1.2
Benefits paid, death in service premiums and expenses
(2.5)
(2.7)
At 31 December
33.4
37.6
There have been no scheme amendments, curtailments or settlements in the year.
\n\n\n
Reconciliation of opening and closing values of the fair value of plan assets
\n\n \n
2024
2023
\u00a3m
\u00a3m
At 1 January
39.6
42.2
Interest income
1.7
2.0
Loss on plan assets (excluding amounts included in interest income)
(3.7)
(3.3)
Contributions by the Group
\u2013
1.4
Benefits paid, death in service premiums and expenses
(2.5)
(2.7)
Other
0.1
\u2013
At 31 December
35.2
39.6
\n
The actual return on the plan assets including interest income over the year was a loss of \u00a32.0m (2023: loss of \u00a31.3m).
\n
De\ufb01ned bene\ufb01t income recognised in the income statement
\n\n \n
2024
2023
\u00a3m
\u00a3m
Net interest income
(0.1)
(0.1)
Defined benefit income recognised in the income statement
(0.1)
(0.1)
\n
Amounts recognised in other comprehensive income
\n\n \n
2024
2023
\u00a3m
\u00a3m
Loss on plan assets (excluding amounts recognised in net interest cost)
(3.7)
(3.3)
Experience gains arising on the defined benefit obligation
\u2013
3.0
Gain from changes in the demographic assumptions underlying the present value of the defined
benefit obligation
\u2013
0.8
Gain/(Loss) from changes in the financial assumptions underlying the present value of the defined
benefit obligation
3.3
(1.2)
Total loss recognised in other comprehensive income
(0.4)
(0.7)
\n
Fair value of plan assets
\n\n \n
2024
2023
2022
\u00a3m
\u00a3m
\u00a3m
LDI
12.0
13.8
4.5
Buy and maintain credit
\u2013
\u2013
2.7
Cash
\u2013
0.1
1.2
Other
0.1
\u2013
4.2
Insured assets
23.1
25.7
29.6
Total assets
35.2
39.6
42.2
\n
The \u00a3nil (2023: \u00a3nil, 2022: \u00a34.2m) in the \u2018other\u2019 asset class is made up of holdings of \u00a3nil (2023: \u00a3nil, 2022: \u00a32.7m) in equity-linked
\n
bonds and \u00a3nil (2023: \u00a3nil, 2022: \u00a31.5m) in Sterling liquidity funds.
\n
The scheme\u2019s assets are held exclusively within instruments that are valued with inputs other than quoted prices in active markets,
\n
but which are observable, with the exception of the holdings in insurance policies and the trustee\u2019s bank account. The insured
\n
assets have been set equal to the value of the insured liabilities but before allowance has been made for the impact of equalising
\n
benefits for the different effects of Guaranteed Minimum Pensions for males and females.
\n
The scheme does not invest directly in property occupied by the Group or in financial securities issued by the Group.
\n
It is the policy of the trustees and the Group to review the investment strategy at the time of each funding valuation. The trustees\u2019
\n
investment objectives and the processes undertaken to measure and manage the risks inherent in the plan investment strategy
\n
are illustrated by the asset allocation at 31 December 2024.
Signi\ufb01cant actuarial assumptions
\n \n
2024
2023
2022
%
%
%
Discount rate
5.4
4.5
4.8
Inflation (RPI)
n/a
n/a
n/a
Salary increases
n/a
n/a
n/a
The mortality assumptions adopted at 31 December 2024 are 85% of the standard tables S3NXA_L, year of birth, no age rating for
males and females, projected using CMI 2023 converging to 1.25% p.a. These imply the following life expectancies:
\n \n
Life expectancy at age 65
Years
Male retiring in 2024
24.4
Female retiring in 2024
26.2
Male retiring in 2044
25.6
Female retiring in 2044
27.5
Analysis of the sensitivity to the principal assumptions of the present value of the de\ufb01ned bene\ufb01t
obligation
\n \n
Change in assumption
Change in liabilities
Discount rate
Decrease of 0.25% p.a
Increase by 3.0%
Rate of mortality
Increase in life expectancy of one year
Increase by 5.0%
The sensitivities shown above are approximate. Each sensitivity considers one change in isolation. The average duration of the
defined benefit obligation at the year ended 31 December 2024 is 11 years (2023: 12 years) for the scheme as a whole or 18 years
(2023: 20 years) when only considering non-insured members.
The scheme typically exposes the Group to actuarial risks such as investment risk, interest rate risk, salary growth risk, mortality
risk and longevity risk. A decrease in corporate bond yields or an increase in life expectancy would result in an increase to the
scheme\u2019s liabilities. This would detrimentally impact the balance sheet position and may give rise to increased charges in the
income statement. This effect would be partially offset by an increase in the value of the scheme\u2019s LDI and gilt holdings.
The best estimate of contributions to be paid by the Group to the plan for the year commencing 1 January 2025 is \u00a3nil. ", "dimensions": { "concept": "ifrs-full:DisclosureOfNetDefinedBenefitLiabilityAssetExplanatory", "language": "en", "entity": "scheme:213800BXKQ9KZNUR1M61", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "TagsThatMustBeAppliedIfCorrespondingInformationIsPresentInAReport_Label_00213": { "value": "De\ufb01ned bene\ufb01t plan
The Group sponsors the scheme which is a funded defined benefit arrangement. This is a separate trustee-administered fund
holding the pension scheme assets to meet long-term pension liabilities for past employees. The scheme closed to future benefit
accrual on 31 July 2019. The level of retirement benefit is principally based on basic salary at the last scheme anniversary of
employment prior to leaving active service and increases at 5% pa in deferment.
The trustees of the scheme are required to act in the best interest of the scheme\u2019s beneficiaries. The appointment of the trustees
is determined by the scheme\u2019s trust documentation. It is policy that one third of all trustees should be nominated by the members.
A full actuarial valuation was carried out as at 31 October 2022 in accordance with the scheme funding requirements of the
Pensions Act 2004 and the funding of the scheme is agreed between the Group and the trustees in line with those requirements.
The funding valuation requires the surplus/deficit to be calculated using prudent actuarial assumptions, as opposed to best
estimate assumptions required for pensions accounting purposes.
The 2022 actuarial valuation showed a deficit of \u00a32.8m. The Group agreed with the trustees that it will aim to eliminate the
deficit over a period of 3 years and 2 months from 31 October 2022 by three payments of \u00a31.4m payable by 31 December 2022,
31 December 2023 and the final contribution by 31 December 2026. In addition, the Group has agreed with the trustees that the
Group will meet expenses of running the scheme and levies to the Pension Protection Fund separately. The estimated amount of
total employer contributions expected to be paid to the scheme during the year to 31 December 2025 is \u00a3nil (31 December 2024
actual: \u00a31.4m).
For the purposes of IAS 19 the actuarial valuation as at 31 October 2022, which was carried out by a qualified independent actuary,
has been updated on an approximate basis to 31 December 2024.
Amounts included in the balance sheet
\n \n
2024
2023
2022
\u00a3m
\u00a3m
\u00a3m
Fair value of plan assets
35.2
39.6
42.2
Present value of defined benefit obligation
(33.4)
(37.6)
(41.0)
Net asset
1.8
2.0
1.2
The present value of the scheme liabilities is measured by discounting the best estimate of future cash flows to be paid out by the
scheme. The value calculated in this way is reflected in the net asset in the balance sheet as shown above.
All actuarial gains and losses are recognised in the year in which they occur in the Group Statement of Comprehensive income.
Reconciliation of the impact of the asset ceiling
We have considered the application of IFRIC 14 and deemed it to have no material effect on the IAS 19 figures.
Reconciliation of the opening and closing present value of the de\ufb01ned bene\ufb01t obligation
\n \n
2024
2023
\u00a3m
\u00a3m
At 1 January
37.6
41.0
Interest cost
1.6
1.9
Actuarial gains due to scheme experience
\u2013
(3.0)
Actuarial gains due to changes in demographic assumptions
\u2013
(0.8)
Actuarial (gains)/losses due to changes in financial assumptions
(3.3)
1.2
Benefits paid, death in service premiums and expenses
(2.5)
(2.7)
At 31 December
33.4
37.6
There have been no scheme amendments, curtailments or settlements in the year.
\n\n\n
Reconciliation of opening and closing values of the fair value of plan assets
\n\n \n
2024
2023
\u00a3m
\u00a3m
At 1 January
39.6
42.2
Interest income
1.7
2.0
Loss on plan assets (excluding amounts included in interest income)
(3.7)
(3.3)
Contributions by the Group
\u2013
1.4
Benefits paid, death in service premiums and expenses
(2.5)
(2.7)
Other
0.1
\u2013
At 31 December
35.2
39.6
\n
The actual return on the plan assets including interest income over the year was a loss of \u00a32.0m (2023: loss of \u00a31.3m).
\n
De\ufb01ned bene\ufb01t income recognised in the income statement
\n\n \n
2024
2023
\u00a3m
\u00a3m
Net interest income
(0.1)
(0.1)
Defined benefit income recognised in the income statement
(0.1)
(0.1)
\n
Amounts recognised in other comprehensive income
\n\n \n
2024
2023
\u00a3m
\u00a3m
Loss on plan assets (excluding amounts recognised in net interest cost)
(3.7)
(3.3)
Experience gains arising on the defined benefit obligation
\u2013
3.0
Gain from changes in the demographic assumptions underlying the present value of the defined
benefit obligation
\u2013
0.8
Gain/(Loss) from changes in the financial assumptions underlying the present value of the defined
benefit obligation
3.3
(1.2)
Total loss recognised in other comprehensive income
(0.4)
(0.7)
\n
Fair value of plan assets
\n\n \n
2024
2023
2022
\u00a3m
\u00a3m
\u00a3m
LDI
12.0
13.8
4.5
Buy and maintain credit
\u2013
\u2013
2.7
Cash
\u2013
0.1
1.2
Other
0.1
\u2013
4.2
Insured assets
23.1
25.7
29.6
Total assets
35.2
39.6
42.2
\n
The \u00a3nil (2023: \u00a3nil, 2022: \u00a34.2m) in the \u2018other\u2019 asset class is made up of holdings of \u00a3nil (2023: \u00a3nil, 2022: \u00a32.7m) in equity-linked
\n
bonds and \u00a3nil (2023: \u00a3nil, 2022: \u00a31.5m) in Sterling liquidity funds.
\n
The scheme\u2019s assets are held exclusively within instruments that are valued with inputs other than quoted prices in active markets,
\n
but which are observable, with the exception of the holdings in insurance policies and the trustee\u2019s bank account. The insured
\n
assets have been set equal to the value of the insured liabilities but before allowance has been made for the impact of equalising
\n
benefits for the different effects of Guaranteed Minimum Pensions for males and females.
\n
The scheme does not invest directly in property occupied by the Group or in financial securities issued by the Group.
\n
It is the policy of the trustees and the Group to review the investment strategy at the time of each funding valuation. The trustees\u2019
\n
investment objectives and the processes undertaken to measure and manage the risks inherent in the plan investment strategy
\n
are illustrated by the asset allocation at 31 December 2024.
Signi\ufb01cant actuarial assumptions
\n \n
2024
2023
2022
%
%
%
Discount rate
5.4
4.5
4.8
Inflation (RPI)
n/a
n/a
n/a
Salary increases
n/a
n/a
n/a
The mortality assumptions adopted at 31 December 2024 are 85% of the standard tables S3NXA_L, year of birth, no age rating for
males and females, projected using CMI 2023 converging to 1.25% p.a. These imply the following life expectancies:
\n \n
Life expectancy at age 65
Years
Male retiring in 2024
24.4
Female retiring in 2024
26.2
Male retiring in 2044
25.6
Female retiring in 2044
27.5
Analysis of the sensitivity to the principal assumptions of the present value of the de\ufb01ned bene\ufb01t
obligation
\n \n
Change in assumption
Change in liabilities
Discount rate
Decrease of 0.25% p.a
Increase by 3.0%
Rate of mortality
Increase in life expectancy of one year
Increase by 5.0%
The sensitivities shown above are approximate. Each sensitivity considers one change in isolation. The average duration of the
defined benefit obligation at the year ended 31 December 2024 is 11 years (2023: 12 years) for the scheme as a whole or 18 years
(2023: 20 years) when only considering non-insured members.
The scheme typically exposes the Group to actuarial risks such as investment risk, interest rate risk, salary growth risk, mortality
risk and longevity risk. A decrease in corporate bond yields or an increase in life expectancy would result in an increase to the
scheme\u2019s liabilities. This would detrimentally impact the balance sheet position and may give rise to increased charges in the
income statement. This effect would be partially offset by an increase in the value of the scheme\u2019s LDI and gilt holdings.
The best estimate of contributions to be paid by the Group to the plan for the year commencing 1 January 2025 is \u00a3nil. ", "dimensions": { "concept": "ifrs-full:DisclosureOfDefinedBenefitPlansExplanatory", "language": "en", "entity": "scheme:213800BXKQ9KZNUR1M61", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "TagsThatMustBeAppliedIfCorrespondingInformationIsPresentInAReport_Label_00214": { "value": "15\u2002Tax charge \n \n
2024
2023
\u00a3m
\u00a3m
Corporation tax
UK corporation tax and income tax in respect of results for the year
\u2013
\u2013
Corporation tax charge
\u2013
\u2013
Deferred tax
Origination and reversal of temporary differences
0.1
0.5
Deferred tax charge
0.1
0.5
Tax charge
0.1
0.5
A deferred tax charge of \u00a30.1m has passed through the Group income statement (2023: charge of \u00a30.5m). More information
regarding deferred tax can be found in note 29.
The main rate of corporation tax for 2024 was 25.0% (2023: 23.5%). The difference between the main rate and the tax charge for
the Group are explained below:
\n \n
2024
2023
\u00a3m
\u00a3m
Profit/(loss) before tax
116.0
(475.9)
Expected tax charge/(credit) based on the standard rate of corporation tax in the UK of 25.00%
(2023: 23.50%)
1
29.0
(111.8)
Difference between tax and accounting profit on disposals
(2.1)
6.1
REIT exempt income
(23.7)
(20.8)
Revaluation deficit attributable to REIT properties
1.2
131.7
Expenses and fair value adjustments not allowable for tax purposes
3.6
2.1
Capital allowances
(8.2)
(7.6)
Other differences
0.3
0.8
Tax charge
0.1
0.5
1
Changes to the UK corporation tax rates were substantively enacted as part of the Finance Bill 2021 (on 24 May 2021) and include increasing the main rate to
25% e\ufb00ective on or after 1 April 2023. Deferred taxes at the balance sheet date have been measured using the enacted tax rate and this is re\ufb02ected in these
\ufb01nancial statements.29\u2002Deferred tax \n \n
Revaluation
Other
Total
\u00a3m
\u00a3m
\u00a3m
At 1 January 2024
2.8
(2.7)
0.1
Charged to the income statement
0.1
\u2013
0.1
Charged to other comprehensive income
0.6
\u2013
0.6
At 31 December 2024
3.5
(2.7)
0.8
At 1 January 2023
3.7
(3.1)
0.6
Charged to the income statement
0.1
0.4
0.5
Credited to other comprehensive income
(1.0)
\u2013
(1.0)
At 31 December 2023
2.8
(2.7)
0.1
Deferred tax has been recognised at the main rate of corporation tax of 25.0% which is the rate enacted for the purposes of IAS 12
on the basis of the expected timing of the realisation of the deferred tax.
Deferred tax on the balance sheet revaluation deficit/surplus is calculated on the basis of the chargeable gains that would
crystallise on the sale of the property portfolio at each balance sheet date. The calculation takes account of any available
indexation on the historical cost of the properties. Due to the Group\u2019s REIT status, deferred tax is only provided at each balance
sheet date on properties outside the REIT ring-fence. As a result, the Group has recognised an increase in the deferred tax liability
on owner-occupied property of \u00a30.6m through other comprehensive income.
A deferred tax charge has been recognised through the income statement of \u00a30.1m. This is due to a \u00a31.0m reduction in the
deferred tax asset in relation to share-based payments and other temporary timing differences, offset by an increase in the
deferred tax asset of \u00a30.9m in respect of tax losses which the Directors believe will be recovered in the future.", "dimensions": { "concept": "ifrs-full:DisclosureOfIncomeTaxExplanatory", "language": "en", "entity": "scheme:213800BXKQ9KZNUR1M61", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "TagsThatMustBeAppliedIfCorrespondingInformationIsPresentInAReport_Label_00215": { "value": "16\u2002Property portfolio \n \n
Total
Owner-
Assets
Total
investment
occupied
held for
Trading
property
Freehold
Leasehold
property
property
sale
property
portfolio
\u00a3m
\u00a3m
\u00a3m
\u00a3m
\u00a3m
\u00a3m
\u00a3m
Carrying value
At 1 January 2024
3,280.5
1,270.9
4,551.4
46.1
\u2013
60.0
4,657.5
Acquisitions
\u2013
47.0
47.0
\u2013
\u2013
\u2013
47.0
Capital expenditure
82.0
42.8
124.8
\u2013
\u2013
57.3
182.1
Interest capitalisation and staff costs
3.4
7.5
10.9
\u2013
\u2013
2.0
12.9
Additions
85.4
97.3
182.7
\u2013
\u2013
59.3
242.0
Disposals
(78.7)
(0.6)
(79.3)
\u2013
\u2013
(3.6)
(82.9)
Transfer from joint venture
\u2013
44.4
44.4
\u2013
\u2013
\u2013
44.4
Transfers
(25.7)
\u2013
(25.7)
\u2013
25.7
\u2013
\u2013
Revaluation
(51.8)
49.1
(2.7)
2.9
\u2013
\u2013
0.2
Movement in grossing up of headlease liabilities
\u2013
(0.7)
(0.7)
\u2013
\u2013
\u2013
(0.7)
At 31 December 2024
3,209.7
1,460.4
4,670.1
49.0
25.7
115.7
4,860.5
At 1 January 2023
3,700.5
1,301.5
5,002.0
50.0
54.2
39.4
5,145.6
Acquisitions
3.8
\u2013
3.8
\u2013
\u2013
\u2013
3.8
Capital expenditure
59.8
72.5
132.3
\u2013
\u2013
20.0
152.3
Interest capitalisation
1.1
4.2
5.3
\u2013
\u2013
1.0
6.3
Additions
64.7
76.7
141.4
\u2013
\u2013
21.0
162.4
Disposals
(7.3)
(2.5)
(9.8)
\u2013
(54.2)
\u2013
(64.0)
Revaluation
(477.4)
(104.1)
(581.5)
(3.9)
\u2013
\u2013
(585.4)
Write-down of trading property
\u2013
\u2013
\u2013
\u2013
\u2013
(0.4)
(0.4)
Movement in grossing up of headlease liabilities
\u2013
(0.7)
(0.7)
\u2013
\u2013
\u2013
(0.7)
At 31 December 2023
3,280.5
1,270.9
4,551.4
46.1
\u2013
60.0
4,657.5
Adjustments from fair value to carrying value
At 31 December 2024
Fair value
3,374.1
1,475.7
4,849.8
49.0
26.0
116.3
5,041.1
Selling costs relating to assets held for sale
\u2013
\u2013
\u2013
\u2013
(0.3)
\u2013
(0.3)
Revaluation of trading property
\u2013
\u2013
\u2013
\u2013
\u2013
(0.6)
(0.6)
Lease incentives and costs included in receivables
(164.4)
(48.4)
(212.8)
\u2013
\u2013
\u2013
(212.8)
Grossing up of headlease liabilities
\u2013
33.1
33.1
\u2013
\u2013
\u2013
33.1
Carrying value
3,209.7
1,460.4
4,670.1
49.0
25.7
115.7
4,860.5
At 31 December 2023
Fair value
3,450.0
1,278.8
4,728.8
46.1
\u2013
69.8
4,844.7
Revaluation of trading property
\u2013
\u2013
\u2013
\u2013
\u2013
(9.8)
(9.8)
Lease incentives and costs included in receivables
(169.5)
(41.5)
(211.0)
\u2013
\u2013
\u2013
(211.0)
Grossing up of headlease liabilities
\u2013
33.6
33.6
\u2013
\u2013
\u2013
33.6
Carrying value
3,280.5
1,270.9
4,551.4
46.1
\u2013
60.0
4,657.5
Reconciliation of fair value
\n \n
2024
2023
\u00a3m
\u00a3m
Portfolio including the Group\u2019s share of joint ventures
5,041.1
4,878.5
Less: joint ventures
\u2013
(33.8)
IFRS property portfolio
5,041.1
4,844.7
The property portfolio is subject to semi-annual external valuations and was revalued at 31 December 2024 by external valuers
on the basis of fair value in accordance with The RICS Valuation \u2013 Professional Standards, which takes account of the properties\u2019
highest and best use. When considering the highest and best use of a property, the external valuers will consider its existing and
potential uses which are physically, legally and financially viable. Where the highest and best use differs from the existing use, the
external valuers will consider the costs and the likelihood of achieving and implementing this change in arriving at the property
valuation. There were no such instances in the year.
The external valuations for the portfolio at December 2024 were carried out by Knight Frank LLP.
Knight Frank valued properties at \u00a35,041.1m (2023: \u00a34,807.9m) and other valuers at \u00a3nil (2023: \u00a336.8m), giving a combined value
of \u00a35,041.1m (2023: \u00a34,844.7m). Of the properties revalued, \u00a349.0m (2023: \u00a346.1m) relating to owner-occupied property was
included within property, plant and equipment and \u00a3116.3m (2023: \u00a369.8m) was in relation to trading property.
The total fees, including the fee for this assignment, earned by Knight Frank (or other companies forming part of the same group
of companies within the UK) from the Group is less than 5.0% of their total UK revenues.
In October 2024, the Group acquired the remaining 50% interest of the Derwent Lazari Baker Street Partnership (the \u2018joint
venture\u2019) from Lazari Investments Limited (\u2018Lazari\u2019) for \u00a347.0m. The joint venture held an interest in three leasehold properties,
38-52, 54-60 and 66-70 Baker Street W1. The fair value of the properties at the date of acquisition was \u00a388.8m. The \u00a347.0m
included in \u2018acquisitions\u2019 (see table above) comprises \u00a344.4m for the fair value of Lazari\u2019s 50% share in the properties, \u00a32.2m in
acquisition costs, and \u00a30.4m in carrying value adjustments for the gross-up of headlease liabilities. Following the acquisition, the
Group\u2019s 50% interest in the joint venture shown as a \u00a344.4m \u2018transfer from investments\u2019 in the table above, has been consolidated
in the Group\u2019s property portfolio. See note 19 for further details.
Certain internal staff and associated costs directly attributable to the management of major schemes are capitalised, based
on the proportion of time spent on each relevant scheme. These costs are capitalised from the date the Group determines it is
probable that the development will progress until the date of practical completion and can be measured reliably.
Net zero carbon and EPC compliance
The Group published its pathway to net zero carbon in July 2020 and has set 2030 as its target date to achieve this. \u00a3123.9m
(year to 31 December 2023: \u00a3102.4m) of eligible \u2018green\u2019 capital expenditure, in accordance with the Group\u2019s Green Finance
Framework, was incurred in the year to 31 December 2024 on the major developments at 80 Charlotte Street W1, 1 Soho Place W1,
The Featherstone Building EC1, 25 Baker Street W1 and Network W1. In addition, the Group continues to utilise carbon credits to
support externally validated green projects to offset embodied carbon. In 2024, the Group paid \u00a31.7m for carbon credits of which
\u00a31.8m is held in prepayments.
To quantify one of the impacts of climate change on the valuation, an independent third-party assessment was carried out in 2021
to estimate the cost of EPC upgrades across the portfolio. Following a review of the latest scope changes in building regulation,
subsequent inflation, disposals, and work carried out to date, the estimated amount was \u00a386m at the end of 2024. Of this amount, a
specific deduction of \u00a341m was included in the 31 December 2024 external valuation. In addition, further amounts have been allowed
for in the expected costs of future refurbishment projects. Any committed capital expenditure has been included in note 34.
Reconciliation of revaluation surplus/(de\ufb01cit)
\n \n
2024
2023
\u00a3m
\u00a3m
Total revaluation deficit
(1.8)
(583.3)
Less:
Share of joint ventures
\u2013
9.3
Lease incentives and costs
(7.2)
(5.8)
Assets held for sale selling costs
(0.3)
\u2013
Trading property revaluation adjustment
9.1
(5.2)
Other
0.4
(0.8)
IFRS revaluation surplus/(deficit)
0.2
(585.8)
Reported in the:
Revaluation deficit
(2.7)
(581.5)
Write-down of trading property
\u2013
(0.4)
Group income statement
(2.7)
(581.9)
Group statement of comprehensive income
2.9
(3.9)
0.2
(585.8)
Valuation process
\n
The valuation reports produced by the external valuers are based on information provided by the Group such as current rents,
\n
terms and conditions of lease agreements, service charges and capital expenditure. This information is derived from the Group\u2019s
\n
financial and property management systems and is subject to the Group\u2019s overall control environment. In addition, the valuation
\n
reports are based on assumptions and valuation models used by the external valuers. The assumptions are typically market related,
\n
such as yields and discount rates, and are based on their professional judgement and market observation and take into account
\n
the impact of climate change and related Environmental, Social and Governance considerations. Each property is considered a
\n
separate asset class based on the unique nature, characteristics and risks of the property.
\n
Members of the Group\u2019s Investments team, who report to the Executive Director responsible for the valuation process, verify all
\n
major inputs to the external valuation reports, assess the individual property valuation changes from the prior year valuation
\n
report and hold discussions with the external valuers. When this process is complete, the valuation report is recommended to the
\n
Audit Committee, which considers it as part of its overall responsibilities.
\n
Valuation techniques
\n
The fair value of the property portfolio has been determined using an income capitalisation technique, whereby contracted and market
\n
rental values are capitalised with a market capitalisation rate. The resulting valuations are cross-checked against the equivalent yields
\n
and the fair market values per square foot derived from comparable recent market transactions on arm\u2019s length terms.
\n
For properties under construction, the fair value is calculated by estimating the fair value of the completed property using the
\n
income capitalisation technique less estimated costs to completion and a risk premium.
\n
These techniques are consistent with the principles in IFRS 13 Fair Value Measurement and use significant unobservable inputs such
\n
that the fair value measurement of each property within the portfolio has been classified as Level 3 in the fair value hierarchy.
\n
There were no transfers between levels in the fair value hierarchy during either 2024 or 2023.
\n
Gains and losses recorded in profit or loss for recurring fair value measurements categorised within Level 3 of the fair value
\n
hierarchy amount to a loss of \u00a32.7m (2023: loss of \u00a3581.5m) and are presented in the Group income statement in the line item
\n
\u2018revaluation deficit\u2019. The revaluation surplus for the owner-occupied property of \u00a32.9m (2023: deficit of \u00a33.9m) was included within
\n
the Group statement of comprehensive income.
\n
All gains and losses recorded in profit or loss in 2024 and 2023 for recurring fair value measurements categorised within Level 3
\n
of the fair value hierarchy are attributable to changes in unrealised gains or losses relating to investment property held at
\n
31 December 2024 and 31 December 2023, respectively.
Quantitative information about fair value measurement using unobservable inputs (Level 3)
\n\n \n
West End
City
Provincial
Provincial
At 31 December 2024
West End central
borders/other
borders
commercial
land
Total
Valuation technique
Income
Income
Income
Income
Income
capitalisation
capitalisation
capitalisation
capitalisation
capitalisation
Fair value (\u00a3m)
1
3,473.1
301.7
1,173.4
53.9
39.0
5,041.1
Area (\u2018000 sq ft)
3,040
429
1,562
325
\u2013
5,356
Range of unobservable inputs
2
:
Gross ERV (per sq ft pa)
Minimum
\u00a332
\u00a324
\u00a338
\u00a3nil
n/a
3
Maximum
\u00a3118
\u00a359
\u00a375
\u00a315
n/a
3
Weighted average
\u00a369
\u00a352
\u00a357
\u00a315
n/a
3
Net initial yield
Minimum
3.1%
2.5%
3.3%
7.0%
0.0%
Maximum
9.9%
6.8%
6.9%
7.0%
1.4%
Weighted average
3.1%
5.6%
5.2%
7.0%
1.4%
Reversionary yield
Minimum
3.2%
4.8%
3.3%
6.9%
0.0%
Maximum
9.7%
11.4%
8.3%
6.9%
1.4%
Weighted average
5.4%
6.9%
6.9%
6.9%
1.4%
True equivalent yield
(EPRA basis)
Minimum
3.2%
4.4%
5.3%
7.2%
0.0%
Maximum
6.6%
7.1%
6.9%
7.2%
0.0%
Weighted average
5.3%
6.8%
6.3%
7.2%
0.0%
\n\n \n
At 31 December 2023
Income
Income
Income
Income
Income
Valuation technique
capitalisation
capitalisation
capitalisation
capitalisation
capitalisation
Fair value (\u00a3m)
1
3,211.5
318.4
1,272.9
38.8
36.9
4,878.5
Area (\u2018000 sq ft)
2,999
429
1,641
325
\u2013
5,394
Range of unobservable inputs
2
:
Gross ERV (per sq ft pa)
Minimum
\u00a332
\u00a323
\u00a337
\u00a3nil
n/a
3
Maximum
\u00a3103
\u00a359
\u00a374
\u00a313
n/a
3
Weighted average
\u00a367
\u00a352
\u00a354
\u00a313
n/a
3
Net initial yield
Minimum
3.0%
6.4%
2.6%
9.5%
0.0%
Maximum
8.3%
8.3%
6.6%
9.5%
1.5%
Weighted average
3.4%
6.2%
4.8%
9.5%
1.3%
Reversionary yield
Minimum
3.2%
4.6%
3.3%
7.2%
0.0%
Maximum
10.2%
9.0%
7.5%
7.2%
1.5%
Weighted average
5.4%
6.5%
6.4%
7.2%
1.3%
True equivalent yield
(EPRA basis)
Minimum
3.2%
4.3%
5.2%
10.5%
0.0%
Maximum
6.8%
6.9%
6.8%
10.5%
0.0%
Weighted average
5.1%
6.5%
6.1%
10.5%
0.0%
\n
1
Includes the Group\u2019s share of joint ventures.
\n
2
Costs to complete are not deemed a signi\ufb01cant unobservable input by virtue of the high percentage that is already \ufb01xed.
\n
3
There is no calculation of gross ERV per sq ft pa. The land totals 5,500 acres.
Sensitivity of measurement to variations in the signi\ufb01cant unobservable inputs
The significant unobservable inputs used in the fair value measurement categorised within Level 3 of the fair value hierarchy of the
Group\u2019s property portfolio, together with the impact of significant movements in these inputs on the fair value measurement, are
shown below:
\n \n
Impact on fair value measurement
Impact on fair value measurement
Unobservable input
of significant increase in input
of significant decrease in input
Gross ERV
Increase
Decrease
Net initial yield
Decrease
Increase
Reversionary yield
Decrease
Increase
True equivalent yield
Decrease
Increase
There are inter-relationships between these inputs as they are partially determined by market conditions. An increase in the
reversionary yield may accompany an increase in gross ERV and would mitigate its impact on the fair value measurement.
A sensitivity analysis has been performed to ascertain the impact of a 25 basis point shift in true equivalent yield and a \u00a32.50
per sq ft shift in ERV on the property valuations. The Group believes this captures the range of variations in these key valuation
assumptions. The results are shown in the tables below:
\n \n
West End
West End
City
Provincial
central
1
borders/other
borders
commercial
Total
At 31 December 2024
True equivalent yield
+25bp
(4.5%)
(3.5%)
(3.8%)
(3.4%)
(4.2%)
- 25bp
5.0%
3.8%
4.1%
3.6%
4.6%
ERV
+\u00a32.50 psf
3.6%
4.8%
4.4%
14.8%
4.1%
- \u00a32.50 psf
(3.6%)
(4.8%)
(4.4%)
(14.8%)
(4.1%)
At 31 December 2023
True equivalent yield
+25bp
(4.7%)
(3.7%)
(3.9%)
(2.3%)
(4.3%)
- 25bp
5.2%
4.0%
4.3%
2.4%
4.7%
ERV
+\u00a32.50 psf
3.8%
4.8%
4.6%
18.8%
4.3%
- \u00a32.50 psf
(3.8%)
(4.8%)
(4.6%)
(18.8%)
(4.3%)
1
Includes the Group\u2019s share of joint ventures.
Historical cost
\n \n
2024
2023
\u00a3m
\u00a3m
Investment property
3,746.4
3,602.6
Owner-occupied property
19.6
19.6
Assets held for sale
28.8
\u2013
Trading property
132.9
81.8
Total property portfolio
3,927.7
3,704.0
", "dimensions": { "concept": "ifrs-full:DisclosureOfDetailedInformationAboutInvestmentPropertyExplanatory", "language": "en", "entity": "scheme:213800BXKQ9KZNUR1M61", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "TagsThatMustBeAppliedIfCorrespondingInformationIsPresentInAReport_Label_00216": { "value": "\n \n
Total
Owner-
Assets
Total
investment
occupied
held for
Trading
property
Freehold
Leasehold
property
property
sale
property
portfolio
\u00a3m
\u00a3m
\u00a3m
\u00a3m
\u00a3m
\u00a3m
\u00a3m
Carrying value
At 1 January 2024
3,280.5
1,270.9
4,551.4
46.1
\u2013
60.0
4,657.5
Acquisitions
\u2013
47.0
47.0
\u2013
\u2013
\u2013
47.0
Capital expenditure
82.0
42.8
124.8
\u2013
\u2013
57.3
182.1
Interest capitalisation and staff costs
3.4
7.5
10.9
\u2013
\u2013
2.0
12.9
Additions
85.4
97.3
182.7
\u2013
\u2013
59.3
242.0
Disposals
(78.7)
(0.6)
(79.3)
\u2013
\u2013
(3.6)
(82.9)
Transfer from joint venture
\u2013
44.4
44.4
\u2013
\u2013
\u2013
44.4
Transfers
(25.7)
\u2013
(25.7)
\u2013
25.7
\u2013
\u2013
Revaluation
(51.8)
49.1
(2.7)
2.9
\u2013
\u2013
0.2
Movement in grossing up of headlease liabilities
\u2013
(0.7)
(0.7)
\u2013
\u2013
\u2013
(0.7)
At 31 December 2024
3,209.7
1,460.4
4,670.1
49.0
25.7
115.7
4,860.5
At 1 January 2023
3,700.5
1,301.5
5,002.0
50.0
54.2
39.4
5,145.6
Acquisitions
3.8
\u2013
3.8
\u2013
\u2013
\u2013
3.8
Capital expenditure
59.8
72.5
132.3
\u2013
\u2013
20.0
152.3
Interest capitalisation
1.1
4.2
5.3
\u2013
\u2013
1.0
6.3
Additions
64.7
76.7
141.4
\u2013
\u2013
21.0
162.4
Disposals
(7.3)
(2.5)
(9.8)
\u2013
(54.2)
\u2013
(64.0)
Revaluation
(477.4)
(104.1)
(581.5)
(3.9)
\u2013
\u2013
(585.4)
Write-down of trading property
\u2013
\u2013
\u2013
\u2013
\u2013
(0.4)
(0.4)
Movement in grossing up of headlease liabilities
\u2013
(0.7)
(0.7)
\u2013
\u2013
\u2013
(0.7)
At 31 December 2023
3,280.5
1,270.9
4,551.4
46.1
\u2013
60.0
4,657.5
Adjustments from fair value to carrying value
At 31 December 2024
Fair value
3,374.1
1,475.7
4,849.8
49.0
26.0
116.3
5,041.1
Selling costs relating to assets held for sale
\u2013
\u2013
\u2013
\u2013
(0.3)
\u2013
(0.3)
Revaluation of trading property
\u2013
\u2013
\u2013
\u2013
\u2013
(0.6)
(0.6)
Lease incentives and costs included in receivables
(164.4)
(48.4)
(212.8)
\u2013
\u2013
\u2013
(212.8)
Grossing up of headlease liabilities
\u2013
33.1
33.1
\u2013
\u2013
\u2013
33.1
Carrying value
3,209.7
1,460.4
4,670.1
49.0
25.7
115.7
4,860.5
At 31 December 2023
Fair value
3,450.0
1,278.8
4,728.8
46.1
\u2013
69.8
4,844.7
Revaluation of trading property
\u2013
\u2013
\u2013
\u2013
\u2013
(9.8)
(9.8)
Lease incentives and costs included in receivables
(169.5)
(41.5)
(211.0)
\u2013
\u2013
\u2013
(211.0)
Grossing up of headlease liabilities
\u2013
33.6
33.6
\u2013
\u2013
\u2013
33.6
Carrying value
3,280.5
1,270.9
4,551.4
46.1
\u2013
60.0
4,657.5
Reconciliation of fair value
\n \n
2024
2023
\u00a3m
\u00a3m
Portfolio including the Group\u2019s share of joint ventures
5,041.1
4,878.5
Less: joint ventures
\u2013
(33.8)
IFRS property portfolio
5,041.1
4,844.7
The property portfolio is subject to semi-annual external valuations and was revalued at 31 December 2024 by external valuers
on the basis of fair value in accordance with The RICS Valuation \u2013 Professional Standards, which takes account of the properties\u2019
highest and best use. When considering the highest and best use of a property, the external valuers will consider its existing and
potential uses which are physically, legally and financially viable. Where the highest and best use differs from the existing use, the
external valuers will consider the costs and the likelihood of achieving and implementing this change in arriving at the property
valuation. There were no such instances in the year.
The external valuations for the portfolio at December 2024 were carried out by Knight Frank LLP.
Knight Frank valued properties at \u00a35,041.1m (2023: \u00a34,807.9m) and other valuers at \u00a3nil (2023: \u00a336.8m), giving a combined value
of \u00a35,041.1m (2023: \u00a34,844.7m). Of the properties revalued, \u00a349.0m (2023: \u00a346.1m) relating to owner-occupied property was
included within property, plant and equipment and \u00a3116.3m (2023: \u00a369.8m) was in relation to trading property.
The total fees, including the fee for this assignment, earned by Knight Frank (or other companies forming part of the same group
of companies within the UK) from the Group is less than 5.0% of their total UK revenues.
In October 2024, the Group acquired the remaining 50% interest of the Derwent Lazari Baker Street Partnership (the \u2018joint
venture\u2019) from Lazari Investments Limited (\u2018Lazari\u2019) for \u00a347.0m. The joint venture held an interest in three leasehold properties,
38-52, 54-60 and 66-70 Baker Street W1. The fair value of the properties at the date of acquisition was \u00a388.8m. The \u00a347.0m
included in \u2018acquisitions\u2019 (see table above) comprises \u00a344.4m for the fair value of Lazari\u2019s 50% share in the properties, \u00a32.2m in
acquisition costs, and \u00a30.4m in carrying value adjustments for the gross-up of headlease liabilities. Following the acquisition, the
Group\u2019s 50% interest in the joint venture shown as a \u00a344.4m \u2018transfer from investments\u2019 in the table above, has been consolidated
in the Group\u2019s property portfolio. See note 19 for further details.
Certain internal staff and associated costs directly attributable to the management of major schemes are capitalised, based
on the proportion of time spent on each relevant scheme. These costs are capitalised from the date the Group determines it is
probable that the development will progress until the date of practical completion and can be measured reliably.The artwork is periodically valued by Bonhams on the basis of fair value using their extensive market knowledge. The latest
valuation was carried out in December 2024. In accordance with IFRS 13 Fair Value Measurement, the artwork is deemed to be
classified as Level 3.
The historical cost of the artwork in the Group at 31 December 2024 was \u00a30.9m (2023: \u00a30.9m). See note 16 for the historical cost
of owner-occupied property and IFRS 13 Fair Value Measurement disclosures.Fair value measurement
The table below shows the fair values, where applicable, of borrowings and derivative financial instruments held by the Group,
together with a reconciliation to net financial assets and liabilities. Details of inputs and valuation methods used to derive the fair
values are shown in note 25.
\n \n
Group
Carrying value
Fair value
Fair value
\u00a3m
\u00a3m
hierarchy
At 31 December 2024
1.5% unsecured convertible bonds 2025
(174.1)
(171.6)
Level 1
6.5% secured bonds 2026
(178.1)
(176.7)
Level 1
1.875% unsecured green bonds 2031
(347.2)
(281.2)
Level 1
Unsecured private placement notes 2026 \u2013 2034
(453.6)
(391.3)
Level 2
Bank borrowings due after one year
(290.5)
(293.0)
Level 2
Other loans
(20.0)
(20.0)
Level 2
Derivative financial instruments
0.6
0.6
Level 2
(1,462.9)
(1,333.2)
Amounts not fair valued:
Cash and cash equivalents
71.4
Other assets \u2013 current
17.6
Leasehold liabilities
(34.6)
Other liabilities \u2013 current
(117.4)
Net financial assets and liabilities
(1,525.9)
At 31 December 2023
1.5% unsecured convertible bonds 2025
(172.1)
(164.7)
Level 1
6.5% secured bonds 2026
(179.6)
(178.1)
Level 1
1.875% unsecured green bonds 2031
(346.8)
(279.0)
Level 1
Unsecured private placement notes 2026 \u2013 2034
(453.5)
(399.0)
Level 2
3.99% secured loan 2024
(82.9)
(81.8)
Level 2
Bank borrowings due after one year
(81.2)
(84.0)
Level 2
Other loans
(20.0)
(20.0)
Level 2
Derivative financial instruments
2.9
2.9
Level 2
(1,333.2)
(1,203.7)
Amounts not fair valued:
Cash and cash equivalents
73.0
Other assets \u2013 current
13.2
Leasehold liabilities
(34.6)
Other liabilities \u2013 current
(93.9)
Net financial assets and liabilities
(1,375.5)
The fair values of the following financial assets and liabilities are the same as their carrying values:
\u2022
Cash and cash equivalents.
\u2022
Trade receivables, other receivables and accrued income included within trade and other receivables.
\u2022
Trade payables, other payables and accruals included within trade and other payables.
\u2022 Leasehold liabilities.
There have been no transfers between levels in either 2024 or 2023.", "dimensions": { "concept": "ifrs-full:DisclosureOfFairValueMeasurementExplanatory", "language": "en", "entity": "scheme:213800BXKQ9KZNUR1M61", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "TagsThatMustBeAppliedIfCorrespondingInformationIsPresentInAReport_Label_00217": { "value": "17\u2002Property, plant and equipment
Owner-
occupied
property
Artwork
Other
Total
\u00a3m
\u00a3m
\u00a3m
\u00a3m
At 1 January 2024
46.1
0.8
3.0
49.9
Additions
\u2013
\u2013
0.3
0.3
Depreciation
\u2013
\u2013
(1.0)
(1.0)
Revaluation
2.9
(0.1)
\u2013
2.8
At 31 December 2024
49.0
0.7
2.3
52.0
At 1 January 2023
50.0
0.8
3.5
54.3
Additions
\u2013
\u2013
0.6
0.6
Depreciation
\u2013
\u2013
(1.1)
(1.1)
Revaluation
(3.9)
\u2013
\u2013
(3.9)
At 31 December 2023
46.1
0.8
3.0
49.9
Net book value
Cost or valuation
49.0
0.7
8.7
58.4
Accumulated depreciation
\u2013
\u2013
(6.4)
(6.4)
At 31 December 2024
49.0
0.7
2.3
52.0
Net book value
Cost or valuation
46.1
0.8
8.4
55.3
Accumulated depreciation
\u2013
\u2013
(5.4)
(5.4)
At 31 December 2023
46.1
0.8
3.0
49.9
The artwork is periodically valued by Bonhams on the basis of fair value using their extensive market knowledge. The latest
valuation was carried out in December 2024. In accordance with IFRS 13 Fair Value Measurement, the artwork is deemed to be
classified as Level 3.
The historical cost of the artwork in the Group at 31 December 2024 was \u00a30.9m (2023: \u00a30.9m). See note 16 for the historical cost
of owner-occupied property and IFRS 13 Fair Value Measurement disclosures.", "dimensions": { "concept": "ifrs-full:DisclosureOfPropertyPlantAndEquipmentExplanatory", "language": "en", "entity": "scheme:213800BXKQ9KZNUR1M61", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "TagsThatMustBeAppliedIfCorrespondingInformationIsPresentInAReport_Label_00218": { "value": "18\u2002Trading stock
2024
2023
\u00a3m
\u00a3m
Trading stock
17.5
8.9
Trading stock relates to capitalised development expenditure incurred which is due to be transferred under development agreements
to a third party upon completion. This has been included in trading stock, as opposed to trading property, as the Group does not
have an ownership interest in the property.", "dimensions": { "concept": "ifrs-full:DisclosureOfInventoriesExplanatory", "language": "en", "entity": "scheme:213800BXKQ9KZNUR1M61", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "TagsThatMustBeAppliedIfCorrespondingInformationIsPresentInAReport_Label_00220": { "value": "20\u2002Other receivables (non-current) \n \n
2024
2023
\u00a3m
\u00a3m
Rents recognised in advance
173.6
173.9
Initial direct letting costs
14.4
14.5
Prepayments
13.0
12.6
Other receivables
201.0
201.0
Other receivables includes \u00a3173.6m (2023: \u00a3173.9m) after impairments relating to rents recognised in advance as a result of
spreading tenant lease incentives over the expected terms of their respective leases. This includes rent-free and reduced rent
periods, capital contributions in lieu of rent-free periods and contracted rent uplifts. In addition, \u00a314.4m (2023: \u00a314.5m) relates
to the spreading effect of the initial direct costs of letting over the same term. Together with \u00a324.8m (2023: \u00a322.6m), which was
included as accrued income within trade and other receivables (see note 21), these amounts totalled \u00a3212.8m at 31 December
2024 (2023: \u00a3211.0m).
Prepayments represent \u00a313.0m (2023: \u00a312.6m) of costs incurred in relation to Old Street Quarter EC1, stated net of a \u00a30.8m
(2023: \u00a30.6m) impairment in accordance with IAS 36 Impairment of Assets. In May 2022, the Group entered into a conditional
contract to acquire the freehold of Old Street Quarter island site. The site is being sold by Moorfields Eye Hospital NHS Foundation
Trust and UCL, together the Oriel joint initiative (\u2018Oriel\u2019). Completion is subject to delivery by Oriel of a new hospital at St Pancras
and subsequent vacant possession of the site, which is anticipated no earlier than 2027.
The total movement in tenant lease incentives is shown below:
\n \n
2024
2023
\u00a3m
\u00a3m
At 1 January
194.1
188.8
Amounts taken to income statement
6.3
5.9
Movement in lease incentive impairment
0.3
0.5
Disposal of investment properties
(4.9)
(0.3)
Write off to bad debt
(0.2)
(0.8)
195.6
194.1
Amounts included in trade and other receivables (see note 21)
(22.0)
(20.2)
At 31 December
173.6
173.9
", "dimensions": { "concept": "ifrs-full:DisclosureOfOtherNoncurrentAssetsExplanatory", "language": "en", "entity": "scheme:213800BXKQ9KZNUR1M61", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "TagsThatMustBeAppliedIfCorrespondingInformationIsPresentInAReport_Label_00221": { "value": "20\u2002Other receivables (non-current) \n \n
2024
2023
\u00a3m
\u00a3m
Rents recognised in advance
173.6
173.9
Initial direct letting costs
14.4
14.5
Prepayments
13.0
12.6
Other receivables
201.0
201.0
Other receivables includes \u00a3173.6m (2023: \u00a3173.9m) after impairments relating to rents recognised in advance as a result of
spreading tenant lease incentives over the expected terms of their respective leases. This includes rent-free and reduced rent
periods, capital contributions in lieu of rent-free periods and contracted rent uplifts. In addition, \u00a314.4m (2023: \u00a314.5m) relates
to the spreading effect of the initial direct costs of letting over the same term. Together with \u00a324.8m (2023: \u00a322.6m), which was
included as accrued income within trade and other receivables (see note 21), these amounts totalled \u00a3212.8m at 31 December
2024 (2023: \u00a3211.0m).
Prepayments represent \u00a313.0m (2023: \u00a312.6m) of costs incurred in relation to Old Street Quarter EC1, stated net of a \u00a30.8m
(2023: \u00a30.6m) impairment in accordance with IAS 36 Impairment of Assets. In May 2022, the Group entered into a conditional
contract to acquire the freehold of Old Street Quarter island site. The site is being sold by Moorfields Eye Hospital NHS Foundation
Trust and UCL, together the Oriel joint initiative (\u2018Oriel\u2019). Completion is subject to delivery by Oriel of a new hospital at St Pancras
and subsequent vacant possession of the site, which is anticipated no earlier than 2027.", "dimensions": { "concept": "ifrs-full:DisclosureOfPrepaymentsAndOtherAssetsExplanatory", "language": "en", "entity": "scheme:213800BXKQ9KZNUR1M61", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "TagsThatMustBeAppliedIfCorrespondingInformationIsPresentInAReport_Label_00219": { "value": "20\u2002Other receivables (non-current) \n \n
2024
2023
\u00a3m
\u00a3m
Rents recognised in advance
173.6
173.9
Initial direct letting costs
14.4
14.5
Prepayments
13.0
12.6
Other receivables
201.0
201.0
Other receivables includes \u00a3173.6m (2023: \u00a3173.9m) after impairments relating to rents recognised in advance as a result of
spreading tenant lease incentives over the expected terms of their respective leases. This includes rent-free and reduced rent
periods, capital contributions in lieu of rent-free periods and contracted rent uplifts. In addition, \u00a314.4m (2023: \u00a314.5m) relates
to the spreading effect of the initial direct costs of letting over the same term. Together with \u00a324.8m (2023: \u00a322.6m), which was
included as accrued income within trade and other receivables (see note 21), these amounts totalled \u00a3212.8m at 31 December
2024 (2023: \u00a3211.0m).
Prepayments represent \u00a313.0m (2023: \u00a312.6m) of costs incurred in relation to Old Street Quarter EC1, stated net of a \u00a30.8m
(2023: \u00a30.6m) impairment in accordance with IAS 36 Impairment of Assets. In May 2022, the Group entered into a conditional
contract to acquire the freehold of Old Street Quarter island site. The site is being sold by Moorfields Eye Hospital NHS Foundation
Trust and UCL, together the Oriel joint initiative (\u2018Oriel\u2019). Completion is subject to delivery by Oriel of a new hospital at St Pancras
and subsequent vacant possession of the site, which is anticipated no earlier than 2027.
The total movement in tenant lease incentives is shown below:
\n \n
2024
2023
\u00a3m
\u00a3m
At 1 January
194.1
188.8
Amounts taken to income statement
6.3
5.9
Movement in lease incentive impairment
0.3
0.5
Disposal of investment properties
(4.9)
(0.3)
Write off to bad debt
(0.2)
(0.8)
195.6
194.1
Amounts included in trade and other receivables (see note 21)
(22.0)
(20.2)
At 31 December
173.6
173.9
21\u2002Trade and other receivables
\n \n
2024
2023
\u00a3m
\u00a3m
Trade receivables
13.3
10.4
Other receivables
3.2
2.0
Prepayments
15.4
6.9
Accrued income
Rents recognised in advance
22.0
20.2
Initial direct letting costs
2.8
2.4
Other
1.1
0.8
57.8
42.7
\n \n
2024
2023
\u00a3m
\u00a3m
Group trade receivables are split as follows:
less than three months due
12.9
10.3
between three and six months due
0.2
0.1
between six and twelve months due
0.2
\u2013
13.3
10.4
Group trade receivables are stated net of impairment.
In response to the Group\u2019s climate change agenda, costs of \u00a32.5m (2023: \u00a31.1m) were incurred in relation to a c.100 acre, 18.4MW
solar park on its Scottish land and have been included within prepayments. Resolution to grant planning consent for this project
was received in 2022. Additionally, during 2024 the Group paid \u00a31.7m for carbon credits, bringing the total included in prepayments
to \u00a31.8m.
The Group has \u00a34.6m (2023: \u00a34.6m) of provision for bad debts as shown below. \u00a32.4m (2023: \u00a31.9m) is included in trade receivables,
\u00a30.4m (2023: \u00a30.5m) in accrued income and \u00a31.8m (2023: \u00a32.2m) in prepayments and accrued income within other receivables
(non-current) (note 20).
2024
2023
\u00a3m
\u00a3m
Provision for bad debts
At 1 January
4.6
5.0
Trade receivables provision
0.7
0.5
Lease incentive provision
(0.4)
\u2013
Service charge provision
(0.2)
0.7
Released
(0.1)
(1.6)
At 31 December
4.6
4.6
The provision for bad debts are split as follows:
less than three months due
0.9
0.7
between three and six months due
0.5
0.3
between six and twelve months due
0.5
0.8
over twelve months due
2.7
2.8
4.6
4.6
", "dimensions": { "concept": "ifrs-full:DisclosureOfTradeAndOtherReceivablesExplanatory", "language": "en", "entity": "scheme:213800BXKQ9KZNUR1M61", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "TagsThatMustBeAppliedIfCorrespondingInformationIsPresentInAReport_Label_00222": { "value": "22\u2002Non-current assets held for sale
2024
2023
\u00a3m
\u00a3m
Transferred from investment properties (see note 16)
25.7
\u2013
25.7
\u2013
In October 2024, the Group exchanged contracts for the disposal of its freehold interest in 4 & 10 Pentonville Road N1. The property
was valued at \u00a326.0m as at 31 December 2024. In accordance with IFRS 5 Non-current Assets Held for Sale, this property was
recognised as a non-current asset held for sale and, after deducting selling costs of \u00a30.3m, the carrying value was \u00a325.7m
(see note 16). The transaction completed in January 2025 for \u00a326.0m before costs.", "dimensions": { "concept": "ifrs-full:DisclosureOfNoncurrentAssetsOrDisposalGroupsClassifiedAsHeldForSaleExplanatory", "language": "en", "entity": "scheme:213800BXKQ9KZNUR1M61", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "TagsThatMustBeAppliedIfCorrespondingInformationIsPresentInAReport_Label_00223": { "value": "23\u2002Trade and other payables
2024
2023
\u00a3m
\u00a3m
Trade payables
0.6
0.7
Other payables
3.6
3.6
Other taxes
7.3
3.3
Accruals
57.2
30.5
Deferred income
50.0
50.8
Tenant rent deposits
27.9
27.0
Service charge balances
28.1
32.1
174.7
148.0
Deferred income primarily relates to rents received in advance.", "dimensions": { "concept": "ifrs-full:DisclosureOfTradeAndOtherPayablesExplanatory", "language": "en", "entity": "scheme:213800BXKQ9KZNUR1M61", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "TagsThatMustBeAppliedIfCorrespondingInformationIsPresentInAReport_Label_00224": { "value": "
2024
2023
\u00a3m
\u00a3m
Trade payables
0.6
0.7
Other payables
3.6
3.6
Other taxes
7.3
3.3
Accruals
57.2
30.5
Deferred income
50.0
50.8
Tenant rent deposits
27.9
27.0
Service charge balances
28.1
32.1
174.7
148.0
Deferred income primarily relates to rents received in advance.", "dimensions": { "concept": "ifrs-full:DisclosureOfDeferredIncomeExplanatory", "language": "en", "entity": "scheme:213800BXKQ9KZNUR1M61", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "TagsThatMustBeAppliedIfCorrespondingInformationIsPresentInAReport_Label_00225": { "value": "24\u2002Provisions \n \n
2024
2023
\u00a3m
\u00a3m
At 1 January
0.4
0.2
Provided in the income statement
0.2
0.2
At 31 December
0.6
0.4
Due within one year
0.2
0.1
Due after one year
0.4
0.3
0.6
0.4
The provisions in the Group relate to national insurance that is payable on gains made by employees on the exercise of share
options granted to them. The eventual liability to national insurance is dependent on:
\u2022
the market price of the Company\u2019s shares at the date of exercise;
\u2022
the number of equity share options that are exercised; and
\u2022
the prevailing rate of national insurance at the date of exercise.", "dimensions": { "concept": "ifrs-full:DisclosureOfProvisionsExplanatory", "language": "en", "entity": "scheme:213800BXKQ9KZNUR1M61", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "TagsThatMustBeAppliedIfCorrespondingInformationIsPresentInAReport_Label_00191": { "value": "25\u2002Net debt and derivative financial instruments \n \n
2024
2023
\u00a3m
\u00a3m
Current liabilities
Other loans
20.0
20.0
3.99% secured loan 2024
\u2013
82.9
1.5% unsecured convertible bonds 2025
174.1
\u2013
194.1
102.9
Non-current liabilities
1.5% unsecured convertible bonds 2025
\u2013
172.1
6.5% secured bonds 2026
178.1
179.6
1.875% unsecured green bonds 2031
347.2
346.8
2.68% unsecured private placement notes 2026
54.9
54.9
3.46% unsecured private placement notes 2028
29.9
29.9
4.41% unsecured private placement notes 2029
24.9
24.9
2.87% unsecured private placement notes 2029
92.8
92.8
2.97% unsecured private placement notes 2031
49.9
49.8
3.57% unsecured private placement notes 2031
74.8
74.8
3.09% unsecured private placement notes 2034
51.8
51.8
4.68% unsecured private placement notes 2034
74.6
74.6
Unsecured bank loans
290.5
81.2
1,269.4
1,233.2
Borrowings
1,463.5
1,336.1
Leasehold liabilities \u2013 current
0.4
0.4
Leasehold liabilities \u2013 non-current
34.2
34.2
Derivative financial instruments \u2013 current
(0.6)
\u2013
Derivative financial instruments \u2013 non-current
\u2013
(2.9)
Gross debt
1,497.5
1,367.8
Reconciliation to net debt:
Gross debt
1,497.5
1,367.8
Derivative financial instruments
0.6
2.9
Cash at bank excluding restricted cash (see note 33)
(15.4)
(13.9)
Net debt
1,482.7
1,356.8
1.5% unsecured convertible bonds 2025
\n
In June 2019 the Group issued \u00a3175m of convertible bonds. The unsecured instruments pay a coupon of 1.5% until June 2025 or the
\n
conversion date, if earlier. The initial conversion price was set at \u00a344.96 per share. In accordance with IAS 32, the equity and debt
\n
components of the bonds are accounted for separately and the fair value of the debt component has been determined using the
\n
market interest rate for an equivalent non-convertible bond, deemed to be 2.3%. As a result, \u00a3167.3m was recognised as a liability
\n
in the balance sheet on issue and the remainder of the proceeds, \u00a37.7m, which represents the equity component, was credited
\n
to reserves. The difference between the fair value of the liability and the principal value is being amortised through the income
\n
statement from the date of issue. Issue costs of \u00a34.0m were allocated between equity and debt and the element relating to the
\n
debt component is being amortised over the life of the bonds. The issue costs apportioned to equity of \u00a30.2m were not amortised.
\n
The fair value was determined by the ask-price of \u00a398.38 per \u00a3100 as at 31 December 2024 (2023: \u00a395.25 per \u00a3100), representing
\n
Level 1 fair value measurement as defined by IFRS 13 Fair Value Measurement. The carrying value at 31 December 2024 was \u00a3174.1m
\n
(2023: \u00a3172.1m).
\n
Reconciliation of nominal value to carrying value:
\n\n \n
\u00a3m
Nominal value
175.0
Fair value adjustment on issue allocated to equity
(7.7)
Debt component on issue
167.3
Unamortised issue costs
(0.3)
Amortisation of fair value adjustment
7.1
Carrying amount included in borrowings
174.1
\n
6.5% secured bonds 2026
\n
As a result of the acquisition of London Merchant Securities plc in 2007, the secured bonds 2026 were included at fair value less
\n
unamortised issue costs. This difference between fair value at acquisition and principal value is being amortised through the
\n
income statement. The fair value at 31 December 2024 was determined by the ask-price of \u00a3100.99 per \u00a3100 (2023: \u00a3101.77
\n
per \u00a3100), representing Level 1 fair value measurement. The carrying value at 31 December 2024 was \u00a3178.1m (2023: \u00a3179.6m).
\n
1.875% unsecured green bonds 2031
\n
In November 2021, the Group issued \u00a3350m of green bonds on a 10-year term maturing in 2031. The unsecured instrument pays a
\n
coupon of 1.875% and the effective interest rate is 1.934%. This represents an issue discount of \u00a31.8m. The unsecured green bonds
\n
2031 are accounted for at amortised cost. The fair value at 31 December 2024 was determined by the ask-price of \u00a380.36 per
\n
\u00a3100 (2023: \u00a379.71 per \u00a3100), representing Level 1 fair value measurement. The carrying value at 31 December 2024 was \u00a3347.2m
\n
(2023: \u00a3346.8m). The \u00a3350m green bonds are used to fund qualifying \u2018green\u2019 expenditure in accordance with the Group\u2019s Green
\n
Finance Framework.
\n
2.68% unsecured private placement notes 2026, 2.87% unsecured private placement notes 2029,
\n
2.97% unsecured private placement notes 2031 and 3.09% unsecured private placement notes 2034
\n
In October 2018, the Group arranged unsecured private placement notes, comprising \u00a355m for 7 years, \u00a393m for 10 years, \u00a350m
\n
for 12 years and \u00a352m for 15 years. The funds were drawn on 31 January 2019. The fair values were determined by discounting
\n
the contractual cash flows by the replacement rate. The replacement rate is the sum of the current underlying Gilt rate plus the
\n
market implied margin. These represent Level 2 fair value measurement. The carrying values at 31 December 2024 were \u00a354.9m
\n
(2023: \u00a354.9m), \u00a392.8m (2023: \u00a392.8m), \u00a349.9m (2023: \u00a349.8m) and \u00a351.8m (2023: \u00a351.8m), respectively.
\n
3.46% unsecured private placement notes 2028 and 3.57% unsecured private placement notes 2031
\n
In February 2016, the Group arranged unsecured private placement notes, comprising \u00a330m for 12 years and \u00a375m for 15 years.
\n
The funds were drawn on 4 May 2016. The fair values were determined by discounting the contractual cash flows by the
\n
replacement rate. The replacement rate is the sum of the current underlying Gilt rate plus the market implied margin. These
\n
represent Level 2 fair value measurement. The carrying values at 31 December 2024 were \u00a329.9m (2023: \u00a329.9m) and \u00a374.8m
\n
(2023: \u00a374.8m), respectively.
\n
4.41% unsecured private placement notes 2029 and 4.68% unsecured private placement notes 2034
\n
In November 2013, the Group arranged unsecured private placement notes, comprising \u00a325m for 15 years and \u00a375m for 20 years.
\n
The funds were drawn on 8 January 2014. The fair values were determined by discounting the contractual cash flows by the
\n
replacement rate. The replacement rate is the sum of the current underlying Gilt rate plus the market implied margin. These
\n
represent Level 2 fair value measurement. The carrying values at 31 December 2024 were \u00a324.9m (2023: \u00a324.9m) and \u00a374.6m
\n
(2023: \u00a374.6m), respectively.
3.99% secured loan 2024
\n
In July 2012, the Group arranged a 12\u00bc-year secured fixed rate loan. The loan was drawn on 1 August 2012. The fair value was
\n
determined by discounting the contractual cash flows by the replacement rate. The replacement rate is the sum of the current
\n
underlying Gilt rate plus the market implied margin. This represents Level 2 fair value measurement. On 21 October 2024 the loan
\n
was repaid in full and security released, as a result of which the carrying value at 31 December 2024 was \u00a3nil (2023: \u00a382.9m).
\n
Unsecured bank loans
\n
In June 2024, Derwent London plc signed an agreement for an unsecured term loan facility of \u00a3100m. As of 31 December 2024,
\n
the Group had fully drawn all funds from this facility. The loan is for a three-year term and has two one-year extension options.
\n
In December 2024, Derwent London plc signed an agreement for an unsecured facility of \u00a3115m, consisting of a \u00a382.5m term loan
\n
and \u00a332.5m revolving credit facility (RCF). As of 31 December 2024, the Group had fully drawn all funds from the term loan facility.
\n
The loan is for a two-year term and has two one-year extension options.
\n
Unsecured bank borrowings are accounted for at amortised cost. At 31 December 2024, there was \u00a3110.5m (2023: \u00a384.0m)
\n
drawn on the RCFs, \u00a3182.5m (2023: \u00a3nil) drawn on term loans and the combined unamortised arrangement fees were \u00a32.5m
\n
(2023: \u00a32.8m), resulting in the carrying value being \u00a3290.5m (2023: \u00a381.2m).
\n
The main corporate \u00a3450m RCF includes a \u00a3300m \u2018green tranche\u2019 to fund qualifying \u2018green\u2019 expenditure in accordance with the
\n
Group\u2019s Green Finance Framework.
\n
As all main corporate facilities were refinanced or amended recently, the fair values of the Group\u2019s bank loans are deemed to be
\n
approximately the same as their carrying amount, after adjusting for the unamortised arrangement fees, and represent Level 2
\n
fair value measurement.
\n
Undrawn committed bank facilities \u2013 maturity pro\ufb01le
\n\n \n
< 1 year
1 to 2 years
2 to 3 years
3 to 4 years
4 to 5 years
> 5 years
Total
\u00a3m
\u00a3m
\u00a3m
\u00a3m
\u00a3m
\u00a3m
\u00a3m
At 31 December 2024
\u2013
395.5
76.5
\u2013
\u2013
\u2013
472.0
At 31 December 2023
\u2013
\u2013
383.5
82.5
\u2013
\u2013
466.0
\n
Other loans
\n
Other loans consist of a \u00a320.0m interest-free loan with no fixed repayment date from a third party providing development
\n
consultancy services on the residential element of the 25 Baker Street W1 development. The loan will be repaid from the sale
\n
proceeds of these residential apartments after completion of the scheme. The agreement provides for a profit share on completion
\n
of the sales which, under IFRS 9 Financial Instruments, has been deemed to have a carrying value of \u00a3nil at 31 December 2024
\n
(2023: \u00a3nil). The carrying value of the loan at 31 December 2024 was \u00a320.0m (2023: \u00a320.0m).
\n
Derivative \ufb01nancial instruments
\n
The derivative financial instruments consist of interest rate swaps, the fair values of which represent the net present value of the
\n
difference between the contracted fixed rates and the fixed rates payable if the swaps were to be replaced on 31 December 2024
\n
for the period to the contracted expiry dates. These represent Level 2 fair value measurement.
\n
The fair values of the Group\u2019s outstanding interest rate swaps have been estimated using the mid-point of the yield curves
\n
prevailing on the reporting date and represent the net present value of the differences between the contracted rate and the
\n
valuation rate when applied to the projected balances for the period from the reporting date to the contracted expiry dates.
\n
These represent Level 2 fair value measurement.
\n\n \n
Group
Weighted average
Principal
interest rate
Average life
\u00a3m
%
Years
At 31 December 2024
Interest rate swaps
75.0
1.36
0.3
At 31 December 2023
Interest rate swaps
55.0
1.36
1.3
Secured and unsecured debt
\n\n \n
2024
2023
\u00a3m
\u00a3m
Secured
6.5% secured bonds 2026
178.1
179.6
3.99% secured loan 2024
\u2013
82.9
178.1
262.5
Unsecured
1.5% unsecured convertible bonds 2025
174.1
172.1
1.875% unsecured green bonds 2031
347.2
346.8
Unsecured private placement notes 2026 \u2013 2034
453.6
453.5
Unsecured bank loans
290.5
81.2
Other loans
20.0
20.0
1,285.4
1,073.6
Borrowings
1,463.5
1,336.1
\n
As at 31 December 2024, the Group\u2019s secured bonds 2026 were secured by a floating charge over a number of the Group\u2019s
\n
subsidiary companies which contained \u00a3376.3m (2023: \u00a3395.9m) of the Group\u2019s properties.
\n
Fixed interest rate and hedged debt
\n
At 31 December 2024 and 31 December 2023, the Group\u2019s fixed rate and hedged debt included the unsecured convertible bonds,
\n
the unsecured green bonds, the secured bonds, the unsecured private placement notes, other loans and unsecured term loans.
\n
Interest rate exposure
\n
After taking into account the various interest rate hedging instruments entered into by the Group and the Company, the interest
\n
rate exposure of the Group\u2019s and Company\u2019s borrowings were:
\n\n \n
Weighted
Weighted
average
average
Floating rate
Hedged
Fixed rate
Borrowings
interest rate
1
life
\u00a3m
\u00a3m
\u00a3m
\u00a3m
%
Years
At 31 December 2024
1.5% unsecured convertible bonds 2025
\u2013
\u2013
174.1
174.1
2.30
0.4
6.5% secured bonds 2026
\u2013
\u2013
178.1
178.1
6.50
1.2
1.875% unsecured green bonds 2031
\u2013
\u2013
347.2
347.2
1.88
6.9
Unsecured private placement notes 2026 \u2013 2034
\u2013
\u2013
453.6
453.6
3.42
5.6
Unsecured bank loans
216.1
74.4
\u2013
290.5
4.81
2.2
Other loans
2
\u2013
\u2013
20.0
20.0
\u2013
\u2013
216.1
74.4
1,173.0
1,463.5
3.53
4.0
At 31 December 2023
1.5% unsecured convertible bonds 2025
\u2013
\u2013
172.1
172.1
2.30
1.4
6.5% secured bonds 2026
\u2013
\u2013
179.6
179.6
6.50
2.2
1.875% unsecured green bonds 2031
\u2013
\u2013
346.8
346.8
1.88
7.9
Unsecured private placement notes 2026 \u2013 2034
\u2013
\u2013
453.5
453.5
3.42
6.6
3.99% secured loan 2024
\u2013
\u2013
82.9
82.9
3.99
0.8
Unsecured bank loans
28.0
53.2
\u2013
81.2
3.71
3.0
Other loans
2
\u2013
\u2013
20.0
20.0
\u2013
\u2013
28.0
53.2
1,254.9
1,336.1
3.29
5.0
\n
1
The weighted average interest rates are based on the nominal amounts of the debt facilities.
\n
2
Other loans shown above are interest free and have no \ufb01xed repayment date. For further detail, see Other loans section above.
Contractual undiscounted cash out\ufb02ows
IFRS 7 Financial Instruments: Disclosure, requires disclosure of the maturity of the Group\u2019s remaining contractual financial
liabilities. The tables below show the contractual undiscounted cash outflows arising from the Group\u2019s gross debt.
< 1 year
1 to 2 years
2 to 3 years
3 to 4 years
4 to 5 years
> 5 years
Total
\u00a3m
\u00a3m
\u00a3m
\u00a3m
\u00a3m
\u00a3m
\u00a3m
At 31 December 2024
1.5% unsecured convertible bonds 2025
175.0
\u2013
\u2013
\u2013
\u2013
\u2013
175.0
6.5% secured bonds 2026
\u2013
175.0
\u2013
\u2013
\u2013
\u2013
175.0
1.875% unsecured green bonds 2031
\u2013
\u2013
\u2013
\u2013
\u2013
350.0
350.0
Unsecured private placement notes 2026 \u2013 2034
\u2013
55.0
\u2013
30.0
118.0
252.0
455.0
Unsecured bank loans
\u2013
169.5
123.5
\u2013
\u2013
\u2013
293.0
Other loans
20.0
\u2013
\u2013
\u2013
\u2013
\u2013
20.0
Total on maturity
195.0
399.5
123.5
30.0
118.0
602.0
1,468.0
Leasehold liabilities
1.7
1.8
1.8
1.8
1.6
208.6
217.3
Interest on borrowings
50.7
37.4
24.1
20.0
16.1
15.8
164.1
Effect of interest rate swaps
(0.8)
\u2013
\u2013
\u2013
\u2013
\u2013
(0.8)
Gross loan commitments
246.6
438.7
149.4
51.8
135.7
826.4
1,848.6
At 31 December 2023
1.5% unsecured convertible bonds 2025
\u2013
175.0
\u2013
\u2013
\u2013
\u2013
175.0
6.5% secured bonds 2026
\u2013
\u2013
175.0
\u2013
\u2013
\u2013
175.0
1.875% unsecured green bonds 2031
\u2013
\u2013
\u2013
\u2013
\u2013
350.0
350.0
Unsecured private placement notes 2026 \u2013 2034
\u2013
\u2013
55.0
\u2013
30.0
370.0
455.0
3.99% secured loan 2024
83.0
\u2013
\u2013
\u2013
\u2013
\u2013
83.0
Unsecured bank loans
\u2013
\u2013
66.5
17.5
\u2013
\u2013
84.0
Other loans
\u2013
20.0
\u2013
\u2013
\u2013
\u2013
20.0
Total on maturity
83.0
195.0
296.5
17.5
30.0
720.0
1,342.0
Leasehold liabilities
1.7
1.7
1.7
1.7
1.8
209.6
218.2
Interest on borrowings
42.9
37.5
25.4
21.1
20.0
54.3
201.2
Effect of interest rate swaps
(2.4)
(0.4)
\u2013
\u2013
\u2013
\u2013
(2.8)
Gross loan commitments
125.2
233.8
323.6
40.3
51.8
983.9
1,758.6
Reconciliation to borrowings:
Adjustments
Gross loan
Interest on
Effect of interest
Leasehold
Non-cash
commitments
gross debt
rate swaps
liabilities
amortisation
Borrowings
\u00a3m
\u00a3m
\u00a3m
\u00a3m
\u00a3m
\u00a3m
At 31 December 2024
Maturing in:
< 1 year
246.6
(50.7)
0.8
(1.7)
\u2013
195.0
1 to 2 years
438.7
(37.4)
\u2013
(1.8)
(1.8)
397.7
2 to 3 years
149.4
(24.1)
\u2013
(1.8)
(1.9)
121.6
3 to 4 years
51.8
(20.0)
\u2013
(1.8)
3.0
33.0
4 to 5 years
135.7
(16.1)
\u2013
(1.6)
(0.3)
117.7
> 5 years
826.4
(15.8)
\u2013
(208.6)
(3.5)
598.5
1,848.6
(164.1)
0.8
(217.3)
(4.5)
1,463.5
At 31 December 2023
Maturing in:
< 1 year
125.2
(42.9)
2.4
(1.7)
(0.1)
82.9
1 to 2 years
233.8
(37.5)
0.4
(1.7)
\u2013
195.0
2 to 3 years
323.6
(25.4)
\u2013
(1.7)
(5.4)
291.1
3 to 4 years
40.3
(21.1)
\u2013
(1.7)
4.1
21.6
4 to 5 years
51.8
(20.0)
\u2013
(1.8)
(0.1)
29.9
> 5 years
983.9
(54.3)
\u2013
(209.6)
(4.4)
715.6
1,758.6
(201.2)
2.8
(218.2)
(5.9)
1,336.1
Financial instruments \u2013 risk management
The Group is exposed through its operations to the following financial risks:
\u2022 credit risk;
\u2022 market risk; and
\u2022 liquidity risk.
In common with all other businesses, the Group is exposed to risks that arise from its use of financial instruments. The following
describes the Group\u2019s objectives, policies and processes for managing those risks and the methods used to measure them. Further
quantitative information in respect of these risks is presented throughout these financial statements. Further information on risk
as required by IFRS 7 is given on pages 90 to 115.
There have been no substantive changes in the Group\u2019s exposure to financial instrument risks, its objectives, policies and processes
for managing those risks or the methods used to measure them from previous years. The Group\u2019s EPRA loan-to-value ratio has
increased to 29.9% as at 31 December 2024 but remains moderate.
Principal \ufb01nancial instruments
The principal financial instruments used by the Group, from which financial instrument risk arises, are trade receivables, accrued
income arising from the spreading of lease incentives, cash at bank, trade and other payables, floating rate bank loans and
private placement notes, secured and unsecured bonds and interest rate swaps.
General objectives, policies and processes
The Board has overall responsibility for the determination of the Group\u2019s risk management objectives and policies and, whilst
retaining ultimate responsibility for them, it has delegated the authority to executive management for designing and operating
processes that ensure the effective implementation of the objectives and policies.
The overall objective of the Board is to set policies that seek to reduce risk as far as possible without unduly affecting the Group\u2019s
flexibility and its ability to maximise returns. Further details regarding these policies are set out below:
Credit risk
Credit risk is the risk of financial loss to the Group if a customer or counterparty to a financial instrument fails to meet its
contractual obligations. The Group is mainly exposed to credit risk from lease contracts in relation to its property portfolio. It is
Group policy to assess the credit risk of new tenants before entering into such contracts. The Board has a Credit Committee which
assesses each new tenant before a new lease is signed. The review includes the latest sets of financial statements, external ratings
when available and, in some cases, forecast information and bank or trade references. The covenant strength of each tenant is
determined based on this review and, if appropriate, a deposit or a guarantee is obtained. The Committee also reviews existing
tenant covenants from time to time.
Impairment calculations have been carried out on trade receivables and lease incentive receivables, applying IFRS 9 and IAS
36, respectively. In addition, the Credit Committee has reviewed its register of tenants at higher risk, particularly in the retail or
hospitality sectors, those in administration or CVA and the top 50 tenants by size with the remaining occupiers considered on a
sector-by-sector basis.
As the Group operates predominantly in central London, it is subject to some geographical concentration risk. However, this is
mitigated by the wide range of tenants from a broad spectrum of business sectors.
Credit risk also arises from cash and cash equivalents and deposits with banks and financial institutions. For banks and financial
institutions, only independently rated parties with a minimum rating of investment grade are accepted. This risk is also reduced by
the short periods that money is on deposit at any one time.
The carrying amount of financial assets recorded in the financial statements represents the Group\u2019s maximum exposure to credit
risk without taking account of the value of any collateral obtained.
Market risk
Market risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate due to changes in market
prices. Market risk arises for the Group from its use of variable interest-bearing instruments (interest rate risk).
The Group monitors its interest rate exposure on at least a quarterly basis. Sensitivity analysis performed to ascertain the impact
on profit or loss and net assets of a 50-basis point shift in interest rates would result in an increase of \u00a31.1m (2023: \u00a30.1m) or
decrease of \u00a31.1m (2023: \u00a30.1m).
It is currently Group policy that generally between 60% and 85% of external Group borrowings (excluding finance lease payables)
are at fixed rates. Where the Group wishes to vary the amount of external fixed rate debt it holds (subject to it being generally
between 60% and 85% of expected Group borrowings, as noted above), the Group makes use of interest rate derivatives to
achieve the desired interest rate profile. Although the Board accepts that this policy neither protects the Group entirely from
the risk of paying rates in excess of current market rates nor eliminates fully cash flow risk associated with variability in interest
payments, it considers that it achieves an appropriate balance of exposure to these risks. At 31 December 2024, the proportion
of fixed debt held by the Group was within this range at 85% (2023: 98%). During both 2024 and 2023, the Group\u2019s borrowings
at variable rate were denominated in Sterling.
The Group manages its cash flow interest rate risk by using floating-to-fixed interest rate swaps. When the Group raises long-term
borrowings, it is generally at fixed rates.
Liquidity risk
Liquidity risk arises from the Group\u2019s management of working capital and the finance charges and principal repayments on its
debt instruments. It is the risk that the Group will encounter difficulty in meeting its financial obligations as they fall due.
The Group\u2019s policy is to ensure that it will always have sufficient headroom in its loan facilities to allow it to meet its liabilities
when they become due. To achieve this aim, it seeks to maintain committed facilities to meet the expected requirements. The
Group also seeks to reduce liquidity risk by fixing interest rates (and hence cash flows) on a portion of its long-term borrowings.
This is further explained in the \u2018market risk\u2019 section above.
Executive management receives rolling three-year projections of cash flow and loan balances on a regular basis as part of the
Group\u2019s forecasting processes. At the balance sheet date, these projections indicated that the Group expected to have sufficient
liquid resources to meet its obligations under all reasonably expected circumstances.
The Group\u2019s loan facilities and other borrowings are spread across a range of banks and financial institutions so as to minimise any
potential concentration of risk. The liquidity risk of the Group is managed centrally by the finance department.
Capital disclosures
The Group\u2019s capital comprises all components of equity (share capital, share premium, other reserves and retained earnings).
The Group\u2019s objectives when maintaining capital are:
\u2022
to safeguard the entity\u2019s ability to continue as a going concern so that it can continue to provide above average long-term
returns for shareholders; and
\u2022
to provide an above average annualised total return to shareholders.
The Group sets the amount of capital it requires in proportion to risk. The Group manages its capital structure and makes
adjustments to it in light of changes in economic conditions and the risk characteristics of the underlying assets. In order to
maintain or adjust the capital structure, the Group may vary the amount of dividends paid to shareholders subject to the rules
imposed by its REIT status. It may also seek to redeem bonds, return capital to shareholders, issue new shares or sell assets to
reduce debt. Consistent with others in its industry, the Group monitors capital on the basis of NAV gearing and loan-to-value
ratio. During 2024, the Group\u2019s strategy, which was unchanged from 2023, was to maintain the NAV gearing below 80% in normal
circumstances. These two gearing ratios, as well as the net interest cover ratio, are defined in the list of definitions on pages 284
and 285 and are derived in note 40.
The Group is also required to ensure that it has sufficient property assets which are not subject to fixed or floating charges or
other encumbrances. Most of the Group\u2019s debt is unsecured and, accordingly, there was \u00a34.7bn (2023: \u00a34.2bn) of uncharged
property as at 31 December 2024.
26\u2002Financial assets and liabilities and fair values
Categories of \ufb01nancial assets and liabilities
\n \n
Fair value
Financial
Financial
Total
through profit
assets held at
liabilities held at
carrying
and loss
amortised cost
amortised cost
value
\u00a3m
\u00a3m
\u00a3m
\u00a3m
Financial assets
Cash and cash equivalents
\u2013
71.4
\u2013
71.4
Other assets \u2013 current
\u2013
17.6
\u2013
17.6
\u2013
89.0
\u2013
89.0
Financial liabilities
1.5% unsecured convertible bonds 2025
\u2013
\u2013
(174.1)
(174.1)
6.5% secured bonds 2026
\u2013
\u2013
(178.1)
(178.1)
1.875% unsecured green bonds 2031
\u2013
\u2013
(347.2)
(347.2)
Unsecured private placement notes 2026 \u2013 2034
\u2013
\u2013
(453.6)
(453.6)
Bank borrowings due after one year
\u2013
\u2013
(290.5)
(290.5)
Other loans
\u2013
\u2013
(20.0)
(20.0)
Leasehold liabilities
\u2013
\u2013
(34.6)
(34.6)
Derivative financial instruments
0.6
\u2013
\u2013
0.6
Other liabilities \u2013 current
\u2013
\u2013
(117.4)
(117.4)
0.6
\u2013
(1,615.5)
(1,614.9)
At 31 December 2024
0.6
89.0
(1,615.5)
(1,525.9)
Financial assets
Cash and cash equivalents
\u2013
73.0
\u2013
73.0
Other assets \u2013 current
\u2013
13.2
\u2013
13.2
\u2013
86.2
\u2013
86.2
Financial liabilities
1.5% unsecured convertible bonds 2025
\u2013
\u2013
(172.1)
(172.1)
6.5% secured bonds 2026
\u2013
\u2013
(179.6)
(179.6)
1.875% unsecured green bonds 2031
\u2013
\u2013
(346.8)
(346.8)
Unsecured private placement notes 2026 \u2013 2034
\u2013
\u2013
(453.5)
(453.5)
3.99% secured loan 2024
\u2013
\u2013
(82.9)
(82.9)
Bank borrowings due after one year
\u2013
\u2013
(81.2)
(81.2)
Other loans
\u2013
\u2013
(20.0)
(20.0)
Leasehold liabilities
\u2013
\u2013
(34.6)
(34.6)
Derivative financial instruments
2.9
\u2013
\u2013
2.9
Other liabilities \u2013 current
\u2013
\u2013
(93.9)
(93.9)
2.9
\u2013
(1,464.6)
(1,461.7)
At 31 December 2023
2.9
86.2
(1,464.6)
(1,375.5)
Reconciliation of net \ufb01nancial assets and liabilities to gross debt
\n \n
2024
2023
\u00a3m
\u00a3m
Net financial assets and liabilities
(1,525.9)
(1,375.5)
Other assets \u2013 current
(17.6)
(13.2)
Other liabilities \u2013 current
117.4
93.9
Cash and cash equivalents
(71.4)
(73.0)
Gross debt
(1,497.5)
(1,367.8)
Fair value measurement
The table below shows the fair values, where applicable, of borrowings and derivative financial instruments held by the Group,
together with a reconciliation to net financial assets and liabilities. Details of inputs and valuation methods used to derive the fair
values are shown in note 25.
\n \n
Group
Carrying value
Fair value
Fair value
\u00a3m
\u00a3m
hierarchy
At 31 December 2024
1.5% unsecured convertible bonds 2025
(174.1)
(171.6)
Level 1
6.5% secured bonds 2026
(178.1)
(176.7)
Level 1
1.875% unsecured green bonds 2031
(347.2)
(281.2)
Level 1
Unsecured private placement notes 2026 \u2013 2034
(453.6)
(391.3)
Level 2
Bank borrowings due after one year
(290.5)
(293.0)
Level 2
Other loans
(20.0)
(20.0)
Level 2
Derivative financial instruments
0.6
0.6
Level 2
(1,462.9)
(1,333.2)
Amounts not fair valued:
Cash and cash equivalents
71.4
Other assets \u2013 current
17.6
Leasehold liabilities
(34.6)
Other liabilities \u2013 current
(117.4)
Net financial assets and liabilities
(1,525.9)
At 31 December 2023
1.5% unsecured convertible bonds 2025
(172.1)
(164.7)
Level 1
6.5% secured bonds 2026
(179.6)
(178.1)
Level 1
1.875% unsecured green bonds 2031
(346.8)
(279.0)
Level 1
Unsecured private placement notes 2026 \u2013 2034
(453.5)
(399.0)
Level 2
3.99% secured loan 2024
(82.9)
(81.8)
Level 2
Bank borrowings due after one year
(81.2)
(84.0)
Level 2
Other loans
(20.0)
(20.0)
Level 2
Derivative financial instruments
2.9
2.9
Level 2
(1,333.2)
(1,203.7)
Amounts not fair valued:
Cash and cash equivalents
73.0
Other assets \u2013 current
13.2
Leasehold liabilities
(34.6)
Other liabilities \u2013 current
(93.9)
Net financial assets and liabilities
(1,375.5)
The fair values of the following financial assets and liabilities are the same as their carrying values:
\u2022
Cash and cash equivalents.
\u2022
Trade receivables, other receivables and accrued income included within trade and other receivables.
\u2022
Trade payables, other payables and accruals included within trade and other payables.
\u2022 Leasehold liabilities.
There have been no transfers between levels in either 2024 or 2023.
27\u2002Net debt to cash flow reconciliation
Net debt reconciliation
The table below shows net debt movement during the year as a result of cash flows and other non-cash movements.
\n \n
Non-cash changes
Impact of issue
Transfer from
and arrangement
Fair value
non-current to
2023
Cash flows
costs
Other
adjustments
current
2024
\u00a3m
\u00a3m
\u00a3m
\u00a3m
\u00a3m
\u00a3m
\u00a3m
Current liabilities
Borrowings
102.9
(83.0)
0.3
(0.2)
\u2013
174.1
194.1
Leasehold liabilities
0.4
\u2013
\u2013
\u2013
\u2013
\u2013
0.4
Non-current liabilities
Borrowings
1,233.2
208.3
1.9
\u2013
0.1
(174.1)
1,269.4
Leasehold liabilities
34.2
\u2013
\u2013
\u2013
\u2013
\u2013
34.2
Total liabilities from financing activities
1,370.7
125.3
2.2
(0.2)
0.1
\u2013
1,498.1
Cash at bank
1
(13.9)
(1.5)
\u2013
\u2013
\u2013
\u2013
(15.4)
Net debt
1,356.8
123.8
2.2
(0.2)
0.1
\u2013
1,482.7
1
Cash at bank excluding restricted cash (see note 33).", "dimensions": { "concept": "ifrs-full:DisclosureOfBorrowingsExplanatory", "language": "en", "entity": "scheme:213800BXKQ9KZNUR1M61", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "TagsThatMustBeAppliedIfCorrespondingInformationIsPresentInAReport_Label_00192": { "value": "25\u2002Net debt and derivative financial instruments \n \n
2024
2023
\u00a3m
\u00a3m
Current liabilities
Other loans
20.0
20.0
3.99% secured loan 2024
\u2013
82.9
1.5% unsecured convertible bonds 2025
174.1
\u2013
194.1
102.9
Non-current liabilities
1.5% unsecured convertible bonds 2025
\u2013
172.1
6.5% secured bonds 2026
178.1
179.6
1.875% unsecured green bonds 2031
347.2
346.8
2.68% unsecured private placement notes 2026
54.9
54.9
3.46% unsecured private placement notes 2028
29.9
29.9
4.41% unsecured private placement notes 2029
24.9
24.9
2.87% unsecured private placement notes 2029
92.8
92.8
2.97% unsecured private placement notes 2031
49.9
49.8
3.57% unsecured private placement notes 2031
74.8
74.8
3.09% unsecured private placement notes 2034
51.8
51.8
4.68% unsecured private placement notes 2034
74.6
74.6
Unsecured bank loans
290.5
81.2
1,269.4
1,233.2
Borrowings
1,463.5
1,336.1
Leasehold liabilities \u2013 current
0.4
0.4
Leasehold liabilities \u2013 non-current
34.2
34.2
Derivative financial instruments \u2013 current
(0.6)
\u2013
Derivative financial instruments \u2013 non-current
\u2013
(2.9)
Gross debt
1,497.5
1,367.8
Reconciliation to net debt:
Gross debt
1,497.5
1,367.8
Derivative financial instruments
0.6
2.9
Cash at bank excluding restricted cash (see note 33)
(15.4)
(13.9)
Net debt
1,482.7
1,356.8
1.5% unsecured convertible bonds 2025
\n
In June 2019 the Group issued \u00a3175m of convertible bonds. The unsecured instruments pay a coupon of 1.5% until June 2025 or the
\n
conversion date, if earlier. The initial conversion price was set at \u00a344.96 per share. In accordance with IAS 32, the equity and debt
\n
components of the bonds are accounted for separately and the fair value of the debt component has been determined using the
\n
market interest rate for an equivalent non-convertible bond, deemed to be 2.3%. As a result, \u00a3167.3m was recognised as a liability
\n
in the balance sheet on issue and the remainder of the proceeds, \u00a37.7m, which represents the equity component, was credited
\n
to reserves. The difference between the fair value of the liability and the principal value is being amortised through the income
\n
statement from the date of issue. Issue costs of \u00a34.0m were allocated between equity and debt and the element relating to the
\n
debt component is being amortised over the life of the bonds. The issue costs apportioned to equity of \u00a30.2m were not amortised.
\n
The fair value was determined by the ask-price of \u00a398.38 per \u00a3100 as at 31 December 2024 (2023: \u00a395.25 per \u00a3100), representing
\n
Level 1 fair value measurement as defined by IFRS 13 Fair Value Measurement. The carrying value at 31 December 2024 was \u00a3174.1m
\n
(2023: \u00a3172.1m).
\n
Reconciliation of nominal value to carrying value:
\n\n \n
\u00a3m
Nominal value
175.0
Fair value adjustment on issue allocated to equity
(7.7)
Debt component on issue
167.3
Unamortised issue costs
(0.3)
Amortisation of fair value adjustment
7.1
Carrying amount included in borrowings
174.1
\n
6.5% secured bonds 2026
\n
As a result of the acquisition of London Merchant Securities plc in 2007, the secured bonds 2026 were included at fair value less
\n
unamortised issue costs. This difference between fair value at acquisition and principal value is being amortised through the
\n
income statement. The fair value at 31 December 2024 was determined by the ask-price of \u00a3100.99 per \u00a3100 (2023: \u00a3101.77
\n
per \u00a3100), representing Level 1 fair value measurement. The carrying value at 31 December 2024 was \u00a3178.1m (2023: \u00a3179.6m).
\n
1.875% unsecured green bonds 2031
\n
In November 2021, the Group issued \u00a3350m of green bonds on a 10-year term maturing in 2031. The unsecured instrument pays a
\n
coupon of 1.875% and the effective interest rate is 1.934%. This represents an issue discount of \u00a31.8m. The unsecured green bonds
\n
2031 are accounted for at amortised cost. The fair value at 31 December 2024 was determined by the ask-price of \u00a380.36 per
\n
\u00a3100 (2023: \u00a379.71 per \u00a3100), representing Level 1 fair value measurement. The carrying value at 31 December 2024 was \u00a3347.2m
\n
(2023: \u00a3346.8m). The \u00a3350m green bonds are used to fund qualifying \u2018green\u2019 expenditure in accordance with the Group\u2019s Green
\n
Finance Framework.
\n
2.68% unsecured private placement notes 2026, 2.87% unsecured private placement notes 2029,
\n
2.97% unsecured private placement notes 2031 and 3.09% unsecured private placement notes 2034
\n
In October 2018, the Group arranged unsecured private placement notes, comprising \u00a355m for 7 years, \u00a393m for 10 years, \u00a350m
\n
for 12 years and \u00a352m for 15 years. The funds were drawn on 31 January 2019. The fair values were determined by discounting
\n
the contractual cash flows by the replacement rate. The replacement rate is the sum of the current underlying Gilt rate plus the
\n
market implied margin. These represent Level 2 fair value measurement. The carrying values at 31 December 2024 were \u00a354.9m
\n
(2023: \u00a354.9m), \u00a392.8m (2023: \u00a392.8m), \u00a349.9m (2023: \u00a349.8m) and \u00a351.8m (2023: \u00a351.8m), respectively.
\n
3.46% unsecured private placement notes 2028 and 3.57% unsecured private placement notes 2031
\n
In February 2016, the Group arranged unsecured private placement notes, comprising \u00a330m for 12 years and \u00a375m for 15 years.
\n
The funds were drawn on 4 May 2016. The fair values were determined by discounting the contractual cash flows by the
\n
replacement rate. The replacement rate is the sum of the current underlying Gilt rate plus the market implied margin. These
\n
represent Level 2 fair value measurement. The carrying values at 31 December 2024 were \u00a329.9m (2023: \u00a329.9m) and \u00a374.8m
\n
(2023: \u00a374.8m), respectively.
\n
4.41% unsecured private placement notes 2029 and 4.68% unsecured private placement notes 2034
\n
In November 2013, the Group arranged unsecured private placement notes, comprising \u00a325m for 15 years and \u00a375m for 20 years.
\n
The funds were drawn on 8 January 2014. The fair values were determined by discounting the contractual cash flows by the
\n
replacement rate. The replacement rate is the sum of the current underlying Gilt rate plus the market implied margin. These
\n
represent Level 2 fair value measurement. The carrying values at 31 December 2024 were \u00a324.9m (2023: \u00a324.9m) and \u00a374.6m
\n
(2023: \u00a374.6m), respectively.
\n\n\n
3.99% secured loan 2024
\n
In July 2012, the Group arranged a 12\u00bc-year secured fixed rate loan. The loan was drawn on 1 August 2012. The fair value was
\n
determined by discounting the contractual cash flows by the replacement rate. The replacement rate is the sum of the current
\n
underlying Gilt rate plus the market implied margin. This represents Level 2 fair value measurement. On 21 October 2024 the loan
\n
was repaid in full and security released, as a result of which the carrying value at 31 December 2024 was \u00a3nil (2023: \u00a382.9m).
\n
Unsecured bank loans
\n
In June 2024, Derwent London plc signed an agreement for an unsecured term loan facility of \u00a3100m. As of 31 December 2024,
\n
the Group had fully drawn all funds from this facility. The loan is for a three-year term and has two one-year extension options.
\n
In December 2024, Derwent London plc signed an agreement for an unsecured facility of \u00a3115m, consisting of a \u00a382.5m term loan
\n
and \u00a332.5m revolving credit facility (RCF). As of 31 December 2024, the Group had fully drawn all funds from the term loan facility.
\n
The loan is for a two-year term and has two one-year extension options.
\n
Unsecured bank borrowings are accounted for at amortised cost. At 31 December 2024, there was \u00a3110.5m (2023: \u00a384.0m)
\n
drawn on the RCFs, \u00a3182.5m (2023: \u00a3nil) drawn on term loans and the combined unamortised arrangement fees were \u00a32.5m
\n
(2023: \u00a32.8m), resulting in the carrying value being \u00a3290.5m (2023: \u00a381.2m).
\n
The main corporate \u00a3450m RCF includes a \u00a3300m \u2018green tranche\u2019 to fund qualifying \u2018green\u2019 expenditure in accordance with the
\n
Group\u2019s Green Finance Framework.
\n
As all main corporate facilities were refinanced or amended recently, the fair values of the Group\u2019s bank loans are deemed to be
\n
approximately the same as their carrying amount, after adjusting for the unamortised arrangement fees, and represent Level 2
\n
fair value measurement.
\n
Undrawn committed bank facilities \u2013 maturity pro\ufb01le
\n\n \n
< 1 year
1 to 2 years
2 to 3 years
3 to 4 years
4 to 5 years
> 5 years
Total
\u00a3m
\u00a3m
\u00a3m
\u00a3m
\u00a3m
\u00a3m
\u00a3m
At 31 December 2024
\u2013
395.5
76.5
\u2013
\u2013
\u2013
472.0
At 31 December 2023
\u2013
\u2013
383.5
82.5
\u2013
\u2013
466.0
\n
Other loans
\n
Other loans consist of a \u00a320.0m interest-free loan with no fixed repayment date from a third party providing development
\n
consultancy services on the residential element of the 25 Baker Street W1 development. The loan will be repaid from the sale
\n
proceeds of these residential apartments after completion of the scheme. The agreement provides for a profit share on completion
\n
of the sales which, under IFRS 9 Financial Instruments, has been deemed to have a carrying value of \u00a3nil at 31 December 2024
\n
(2023: \u00a3nil). The carrying value of the loan at 31 December 2024 was \u00a320.0m (2023: \u00a320.0m).
\n
Derivative \ufb01nancial instruments
\n
The derivative financial instruments consist of interest rate swaps, the fair values of which represent the net present value of the
\n
difference between the contracted fixed rates and the fixed rates payable if the swaps were to be replaced on 31 December 2024
\n
for the period to the contracted expiry dates. These represent Level 2 fair value measurement.
\n
The fair values of the Group\u2019s outstanding interest rate swaps have been estimated using the mid-point of the yield curves
\n
prevailing on the reporting date and represent the net present value of the differences between the contracted rate and the
\n
valuation rate when applied to the projected balances for the period from the reporting date to the contracted expiry dates.
\n
These represent Level 2 fair value measurement.
\n\n \n
Group
Weighted average
Principal
interest rate
Average life
\u00a3m
%
Years
At 31 December 2024
Interest rate swaps
75.0
1.36
0.3
At 31 December 2023
Interest rate swaps
55.0
1.36
1.3
Secured and unsecured debt
\n\n \n
2024
2023
\u00a3m
\u00a3m
Secured
6.5% secured bonds 2026
178.1
179.6
3.99% secured loan 2024
\u2013
82.9
178.1
262.5
Unsecured
1.5% unsecured convertible bonds 2025
174.1
172.1
1.875% unsecured green bonds 2031
347.2
346.8
Unsecured private placement notes 2026 \u2013 2034
453.6
453.5
Unsecured bank loans
290.5
81.2
Other loans
20.0
20.0
1,285.4
1,073.6
Borrowings
1,463.5
1,336.1
\n
As at 31 December 2024, the Group\u2019s secured bonds 2026 were secured by a floating charge over a number of the Group\u2019s
\n
subsidiary companies which contained \u00a3376.3m (2023: \u00a3395.9m) of the Group\u2019s properties.
\n
Fixed interest rate and hedged debt
\n
At 31 December 2024 and 31 December 2023, the Group\u2019s fixed rate and hedged debt included the unsecured convertible bonds,
\n
the unsecured green bonds, the secured bonds, the unsecured private placement notes, other loans and unsecured term loans.
\n
Interest rate exposure
\n
After taking into account the various interest rate hedging instruments entered into by the Group and the Company, the interest
\n
rate exposure of the Group\u2019s and Company\u2019s borrowings were:
\n\n \n
Weighted
Weighted
average
average
Floating rate
Hedged
Fixed rate
Borrowings
interest rate
1
life
\u00a3m
\u00a3m
\u00a3m
\u00a3m
%
Years
At 31 December 2024
1.5% unsecured convertible bonds 2025
\u2013
\u2013
174.1
174.1
2.30
0.4
6.5% secured bonds 2026
\u2013
\u2013
178.1
178.1
6.50
1.2
1.875% unsecured green bonds 2031
\u2013
\u2013
347.2
347.2
1.88
6.9
Unsecured private placement notes 2026 \u2013 2034
\u2013
\u2013
453.6
453.6
3.42
5.6
Unsecured bank loans
216.1
74.4
\u2013
290.5
4.81
2.2
Other loans
2
\u2013
\u2013
20.0
20.0
\u2013
\u2013
216.1
74.4
1,173.0
1,463.5
3.53
4.0
At 31 December 2023
1.5% unsecured convertible bonds 2025
\u2013
\u2013
172.1
172.1
2.30
1.4
6.5% secured bonds 2026
\u2013
\u2013
179.6
179.6
6.50
2.2
1.875% unsecured green bonds 2031
\u2013
\u2013
346.8
346.8
1.88
7.9
Unsecured private placement notes 2026 \u2013 2034
\u2013
\u2013
453.5
453.5
3.42
6.6
3.99% secured loan 2024
\u2013
\u2013
82.9
82.9
3.99
0.8
Unsecured bank loans
28.0
53.2
\u2013
81.2
3.71
3.0
Other loans
2
\u2013
\u2013
20.0
20.0
\u2013
\u2013
28.0
53.2
1,254.9
1,336.1
3.29
5.0
\n
1
The weighted average interest rates are based on the nominal amounts of the debt facilities.
\n
2
Other loans shown above are interest free and have no \ufb01xed repayment date. For further detail, see Other loans section above.
Contractual undiscounted cash out\ufb02ows
IFRS 7 Financial Instruments: Disclosure, requires disclosure of the maturity of the Group\u2019s remaining contractual financial
liabilities. The tables below show the contractual undiscounted cash outflows arising from the Group\u2019s gross debt.
< 1 year
1 to 2 years
2 to 3 years
3 to 4 years
4 to 5 years
> 5 years
Total
\u00a3m
\u00a3m
\u00a3m
\u00a3m
\u00a3m
\u00a3m
\u00a3m
At 31 December 2024
1.5% unsecured convertible bonds 2025
175.0
\u2013
\u2013
\u2013
\u2013
\u2013
175.0
6.5% secured bonds 2026
\u2013
175.0
\u2013
\u2013
\u2013
\u2013
175.0
1.875% unsecured green bonds 2031
\u2013
\u2013
\u2013
\u2013
\u2013
350.0
350.0
Unsecured private placement notes 2026 \u2013 2034
\u2013
55.0
\u2013
30.0
118.0
252.0
455.0
Unsecured bank loans
\u2013
169.5
123.5
\u2013
\u2013
\u2013
293.0
Other loans
20.0
\u2013
\u2013
\u2013
\u2013
\u2013
20.0
Total on maturity
195.0
399.5
123.5
30.0
118.0
602.0
1,468.0
Leasehold liabilities
1.7
1.8
1.8
1.8
1.6
208.6
217.3
Interest on borrowings
50.7
37.4
24.1
20.0
16.1
15.8
164.1
Effect of interest rate swaps
(0.8)
\u2013
\u2013
\u2013
\u2013
\u2013
(0.8)
Gross loan commitments
246.6
438.7
149.4
51.8
135.7
826.4
1,848.6
At 31 December 2023
1.5% unsecured convertible bonds 2025
\u2013
175.0
\u2013
\u2013
\u2013
\u2013
175.0
6.5% secured bonds 2026
\u2013
\u2013
175.0
\u2013
\u2013
\u2013
175.0
1.875% unsecured green bonds 2031
\u2013
\u2013
\u2013
\u2013
\u2013
350.0
350.0
Unsecured private placement notes 2026 \u2013 2034
\u2013
\u2013
55.0
\u2013
30.0
370.0
455.0
3.99% secured loan 2024
83.0
\u2013
\u2013
\u2013
\u2013
\u2013
83.0
Unsecured bank loans
\u2013
\u2013
66.5
17.5
\u2013
\u2013
84.0
Other loans
\u2013
20.0
\u2013
\u2013
\u2013
\u2013
20.0
Total on maturity
83.0
195.0
296.5
17.5
30.0
720.0
1,342.0
Leasehold liabilities
1.7
1.7
1.7
1.7
1.8
209.6
218.2
Interest on borrowings
42.9
37.5
25.4
21.1
20.0
54.3
201.2
Effect of interest rate swaps
(2.4)
(0.4)
\u2013
\u2013
\u2013
\u2013
(2.8)
Gross loan commitments
125.2
233.8
323.6
40.3
51.8
983.9
1,758.6
Reconciliation to borrowings:
Adjustments
Gross loan
Interest on
Effect of interest
Leasehold
Non-cash
commitments
gross debt
rate swaps
liabilities
amortisation
Borrowings
\u00a3m
\u00a3m
\u00a3m
\u00a3m
\u00a3m
\u00a3m
At 31 December 2024
Maturing in:
< 1 year
246.6
(50.7)
0.8
(1.7)
\u2013
195.0
1 to 2 years
438.7
(37.4)
\u2013
(1.8)
(1.8)
397.7
2 to 3 years
149.4
(24.1)
\u2013
(1.8)
(1.9)
121.6
3 to 4 years
51.8
(20.0)
\u2013
(1.8)
3.0
33.0
4 to 5 years
135.7
(16.1)
\u2013
(1.6)
(0.3)
117.7
> 5 years
826.4
(15.8)
\u2013
(208.6)
(3.5)
598.5
1,848.6
(164.1)
0.8
(217.3)
(4.5)
1,463.5
At 31 December 2023
Maturing in:
< 1 year
125.2
(42.9)
2.4
(1.7)
(0.1)
82.9
1 to 2 years
233.8
(37.5)
0.4
(1.7)
\u2013
195.0
2 to 3 years
323.6
(25.4)
\u2013
(1.7)
(5.4)
291.1
3 to 4 years
40.3
(21.1)
\u2013
(1.7)
4.1
21.6
4 to 5 years
51.8
(20.0)
\u2013
(1.8)
(0.1)
29.9
> 5 years
983.9
(54.3)
\u2013
(209.6)
(4.4)
715.6
1,758.6
(201.2)
2.8
(218.2)
(5.9)
1,336.1
Financial instruments \u2013 risk management
The Group is exposed through its operations to the following financial risks:
\u2022 credit risk;
\u2022 market risk; and
\u2022 liquidity risk.
In common with all other businesses, the Group is exposed to risks that arise from its use of financial instruments. The following
describes the Group\u2019s objectives, policies and processes for managing those risks and the methods used to measure them. Further
quantitative information in respect of these risks is presented throughout these financial statements. Further information on risk
as required by IFRS 7 is given on pages 90 to 115.
There have been no substantive changes in the Group\u2019s exposure to financial instrument risks, its objectives, policies and processes
for managing those risks or the methods used to measure them from previous years. The Group\u2019s EPRA loan-to-value ratio has
increased to 29.9% as at 31 December 2024 but remains moderate.
Principal \ufb01nancial instruments
The principal financial instruments used by the Group, from which financial instrument risk arises, are trade receivables, accrued
income arising from the spreading of lease incentives, cash at bank, trade and other payables, floating rate bank loans and
private placement notes, secured and unsecured bonds and interest rate swaps.
General objectives, policies and processes
The Board has overall responsibility for the determination of the Group\u2019s risk management objectives and policies and, whilst
retaining ultimate responsibility for them, it has delegated the authority to executive management for designing and operating
processes that ensure the effective implementation of the objectives and policies.
The overall objective of the Board is to set policies that seek to reduce risk as far as possible without unduly affecting the Group\u2019s
flexibility and its ability to maximise returns. Further details regarding these policies are set out below:
Credit risk
Credit risk is the risk of financial loss to the Group if a customer or counterparty to a financial instrument fails to meet its
contractual obligations. The Group is mainly exposed to credit risk from lease contracts in relation to its property portfolio. It is
Group policy to assess the credit risk of new tenants before entering into such contracts. The Board has a Credit Committee which
assesses each new tenant before a new lease is signed. The review includes the latest sets of financial statements, external ratings
when available and, in some cases, forecast information and bank or trade references. The covenant strength of each tenant is
determined based on this review and, if appropriate, a deposit or a guarantee is obtained. The Committee also reviews existing
tenant covenants from time to time.
Impairment calculations have been carried out on trade receivables and lease incentive receivables, applying IFRS 9 and IAS
36, respectively. In addition, the Credit Committee has reviewed its register of tenants at higher risk, particularly in the retail or
hospitality sectors, those in administration or CVA and the top 50 tenants by size with the remaining occupiers considered on a
sector-by-sector basis.
As the Group operates predominantly in central London, it is subject to some geographical concentration risk. However, this is
mitigated by the wide range of tenants from a broad spectrum of business sectors.
Credit risk also arises from cash and cash equivalents and deposits with banks and financial institutions. For banks and financial
institutions, only independently rated parties with a minimum rating of investment grade are accepted. This risk is also reduced by
the short periods that money is on deposit at any one time.
The carrying amount of financial assets recorded in the financial statements represents the Group\u2019s maximum exposure to credit
risk without taking account of the value of any collateral obtained.
Market risk
Market risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate due to changes in market
prices. Market risk arises for the Group from its use of variable interest-bearing instruments (interest rate risk).
The Group monitors its interest rate exposure on at least a quarterly basis. Sensitivity analysis performed to ascertain the impact
on profit or loss and net assets of a 50-basis point shift in interest rates would result in an increase of \u00a31.1m (2023: \u00a30.1m) or
decrease of \u00a31.1m (2023: \u00a30.1m).
It is currently Group policy that generally between 60% and 85% of external Group borrowings (excluding finance lease payables)
are at fixed rates. Where the Group wishes to vary the amount of external fixed rate debt it holds (subject to it being generally
between 60% and 85% of expected Group borrowings, as noted above), the Group makes use of interest rate derivatives to
achieve the desired interest rate profile. Although the Board accepts that this policy neither protects the Group entirely from
the risk of paying rates in excess of current market rates nor eliminates fully cash flow risk associated with variability in interest
payments, it considers that it achieves an appropriate balance of exposure to these risks. At 31 December 2024, the proportion
of fixed debt held by the Group was within this range at 85% (2023: 98%). During both 2024 and 2023, the Group\u2019s borrowings
at variable rate were denominated in Sterling.
The Group manages its cash flow interest rate risk by using floating-to-fixed interest rate swaps. When the Group raises long-term
borrowings, it is generally at fixed rates.
Liquidity risk
Liquidity risk arises from the Group\u2019s management of working capital and the finance charges and principal repayments on its
debt instruments. It is the risk that the Group will encounter difficulty in meeting its financial obligations as they fall due.
The Group\u2019s policy is to ensure that it will always have sufficient headroom in its loan facilities to allow it to meet its liabilities
when they become due. To achieve this aim, it seeks to maintain committed facilities to meet the expected requirements. The
Group also seeks to reduce liquidity risk by fixing interest rates (and hence cash flows) on a portion of its long-term borrowings.
This is further explained in the \u2018market risk\u2019 section above.
Executive management receives rolling three-year projections of cash flow and loan balances on a regular basis as part of the
Group\u2019s forecasting processes. At the balance sheet date, these projections indicated that the Group expected to have sufficient
liquid resources to meet its obligations under all reasonably expected circumstances.
The Group\u2019s loan facilities and other borrowings are spread across a range of banks and financial institutions so as to minimise any
potential concentration of risk. The liquidity risk of the Group is managed centrally by the finance department.
Capital disclosures
The Group\u2019s capital comprises all components of equity (share capital, share premium, other reserves and retained earnings).
The Group\u2019s objectives when maintaining capital are:
\u2022
to safeguard the entity\u2019s ability to continue as a going concern so that it can continue to provide above average long-term
returns for shareholders; and
\u2022
to provide an above average annualised total return to shareholders.
The Group sets the amount of capital it requires in proportion to risk. The Group manages its capital structure and makes
adjustments to it in light of changes in economic conditions and the risk characteristics of the underlying assets. In order to
maintain or adjust the capital structure, the Group may vary the amount of dividends paid to shareholders subject to the rules
imposed by its REIT status. It may also seek to redeem bonds, return capital to shareholders, issue new shares or sell assets to
reduce debt. Consistent with others in its industry, the Group monitors capital on the basis of NAV gearing and loan-to-value
ratio. During 2024, the Group\u2019s strategy, which was unchanged from 2023, was to maintain the NAV gearing below 80% in normal
circumstances. These two gearing ratios, as well as the net interest cover ratio, are defined in the list of definitions on pages 284
and 285 and are derived in note 40.
The Group is also required to ensure that it has sufficient property assets which are not subject to fixed or floating charges or
other encumbrances. Most of the Group\u2019s debt is unsecured and, accordingly, there was \u00a34.7bn (2023: \u00a34.2bn) of uncharged
property as at 31 December 2024.", "dimensions": { "concept": "ifrs-full:DisclosureOfDebtSecuritiesExplanatory", "language": "en", "entity": "scheme:213800BXKQ9KZNUR1M61", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "TagsThatMustBeAppliedIfCorrespondingInformationIsPresentInAReport_Label_00226": { "value": "25\u2002Net debt and derivative financial instruments \n \n
2024
2023
\u00a3m
\u00a3m
Current liabilities
Other loans
20.0
20.0
3.99% secured loan 2024
\u2013
82.9
1.5% unsecured convertible bonds 2025
174.1
\u2013
194.1
102.9
Non-current liabilities
1.5% unsecured convertible bonds 2025
\u2013
172.1
6.5% secured bonds 2026
178.1
179.6
1.875% unsecured green bonds 2031
347.2
346.8
2.68% unsecured private placement notes 2026
54.9
54.9
3.46% unsecured private placement notes 2028
29.9
29.9
4.41% unsecured private placement notes 2029
24.9
24.9
2.87% unsecured private placement notes 2029
92.8
92.8
2.97% unsecured private placement notes 2031
49.9
49.8
3.57% unsecured private placement notes 2031
74.8
74.8
3.09% unsecured private placement notes 2034
51.8
51.8
4.68% unsecured private placement notes 2034
74.6
74.6
Unsecured bank loans
290.5
81.2
1,269.4
1,233.2
Borrowings
1,463.5
1,336.1
Leasehold liabilities \u2013 current
0.4
0.4
Leasehold liabilities \u2013 non-current
34.2
34.2
Derivative financial instruments \u2013 current
(0.6)
\u2013
Derivative financial instruments \u2013 non-current
\u2013
(2.9)
Gross debt
1,497.5
1,367.8
Reconciliation to net debt:
Gross debt
1,497.5
1,367.8
Derivative financial instruments
0.6
2.9
Cash at bank excluding restricted cash (see note 33)
(15.4)
(13.9)
Net debt
1,482.7
1,356.8
1.5% unsecured convertible bonds 2025
\n
In June 2019 the Group issued \u00a3175m of convertible bonds. The unsecured instruments pay a coupon of 1.5% until June 2025 or the
\n
conversion date, if earlier. The initial conversion price was set at \u00a344.96 per share. In accordance with IAS 32, the equity and debt
\n
components of the bonds are accounted for separately and the fair value of the debt component has been determined using the
\n
market interest rate for an equivalent non-convertible bond, deemed to be 2.3%. As a result, \u00a3167.3m was recognised as a liability
\n
in the balance sheet on issue and the remainder of the proceeds, \u00a37.7m, which represents the equity component, was credited
\n
to reserves. The difference between the fair value of the liability and the principal value is being amortised through the income
\n
statement from the date of issue. Issue costs of \u00a34.0m were allocated between equity and debt and the element relating to the
\n
debt component is being amortised over the life of the bonds. The issue costs apportioned to equity of \u00a30.2m were not amortised.
\n
The fair value was determined by the ask-price of \u00a398.38 per \u00a3100 as at 31 December 2024 (2023: \u00a395.25 per \u00a3100), representing
\n
Level 1 fair value measurement as defined by IFRS 13 Fair Value Measurement. The carrying value at 31 December 2024 was \u00a3174.1m
\n
(2023: \u00a3172.1m).
\n
Reconciliation of nominal value to carrying value:
\n\n \n
\u00a3m
Nominal value
175.0
Fair value adjustment on issue allocated to equity
(7.7)
Debt component on issue
167.3
Unamortised issue costs
(0.3)
Amortisation of fair value adjustment
7.1
Carrying amount included in borrowings
174.1
\n
6.5% secured bonds 2026
\n
As a result of the acquisition of London Merchant Securities plc in 2007, the secured bonds 2026 were included at fair value less
\n
unamortised issue costs. This difference between fair value at acquisition and principal value is being amortised through the
\n
income statement. The fair value at 31 December 2024 was determined by the ask-price of \u00a3100.99 per \u00a3100 (2023: \u00a3101.77
\n
per \u00a3100), representing Level 1 fair value measurement. The carrying value at 31 December 2024 was \u00a3178.1m (2023: \u00a3179.6m).
\n
1.875% unsecured green bonds 2031
\n
In November 2021, the Group issued \u00a3350m of green bonds on a 10-year term maturing in 2031. The unsecured instrument pays a
\n
coupon of 1.875% and the effective interest rate is 1.934%. This represents an issue discount of \u00a31.8m. The unsecured green bonds
\n
2031 are accounted for at amortised cost. The fair value at 31 December 2024 was determined by the ask-price of \u00a380.36 per
\n
\u00a3100 (2023: \u00a379.71 per \u00a3100), representing Level 1 fair value measurement. The carrying value at 31 December 2024 was \u00a3347.2m
\n
(2023: \u00a3346.8m). The \u00a3350m green bonds are used to fund qualifying \u2018green\u2019 expenditure in accordance with the Group\u2019s Green
\n
Finance Framework.
\n
2.68% unsecured private placement notes 2026, 2.87% unsecured private placement notes 2029,
\n
2.97% unsecured private placement notes 2031 and 3.09% unsecured private placement notes 2034
\n
In October 2018, the Group arranged unsecured private placement notes, comprising \u00a355m for 7 years, \u00a393m for 10 years, \u00a350m
\n
for 12 years and \u00a352m for 15 years. The funds were drawn on 31 January 2019. The fair values were determined by discounting
\n
the contractual cash flows by the replacement rate. The replacement rate is the sum of the current underlying Gilt rate plus the
\n
market implied margin. These represent Level 2 fair value measurement. The carrying values at 31 December 2024 were \u00a354.9m
\n
(2023: \u00a354.9m), \u00a392.8m (2023: \u00a392.8m), \u00a349.9m (2023: \u00a349.8m) and \u00a351.8m (2023: \u00a351.8m), respectively.
\n
3.46% unsecured private placement notes 2028 and 3.57% unsecured private placement notes 2031
\n
In February 2016, the Group arranged unsecured private placement notes, comprising \u00a330m for 12 years and \u00a375m for 15 years.
\n
The funds were drawn on 4 May 2016. The fair values were determined by discounting the contractual cash flows by the
\n
replacement rate. The replacement rate is the sum of the current underlying Gilt rate plus the market implied margin. These
\n
represent Level 2 fair value measurement. The carrying values at 31 December 2024 were \u00a329.9m (2023: \u00a329.9m) and \u00a374.8m
\n
(2023: \u00a374.8m), respectively.
\n
4.41% unsecured private placement notes 2029 and 4.68% unsecured private placement notes 2034
\n
In November 2013, the Group arranged unsecured private placement notes, comprising \u00a325m for 15 years and \u00a375m for 20 years.
\n
The funds were drawn on 8 January 2014. The fair values were determined by discounting the contractual cash flows by the
\n
replacement rate. The replacement rate is the sum of the current underlying Gilt rate plus the market implied margin. These
\n
represent Level 2 fair value measurement. The carrying values at 31 December 2024 were \u00a324.9m (2023: \u00a324.9m) and \u00a374.6m
\n
(2023: \u00a374.6m), respectively.
\n\n\n
3.99% secured loan 2024
\n
In July 2012, the Group arranged a 12\u00bc-year secured fixed rate loan. The loan was drawn on 1 August 2012. The fair value was
\n
determined by discounting the contractual cash flows by the replacement rate. The replacement rate is the sum of the current
\n
underlying Gilt rate plus the market implied margin. This represents Level 2 fair value measurement. On 21 October 2024 the loan
\n
was repaid in full and security released, as a result of which the carrying value at 31 December 2024 was \u00a3nil (2023: \u00a382.9m).
\n
Unsecured bank loans
\n
In June 2024, Derwent London plc signed an agreement for an unsecured term loan facility of \u00a3100m. As of 31 December 2024,
\n
the Group had fully drawn all funds from this facility. The loan is for a three-year term and has two one-year extension options.
\n
In December 2024, Derwent London plc signed an agreement for an unsecured facility of \u00a3115m, consisting of a \u00a382.5m term loan
\n
and \u00a332.5m revolving credit facility (RCF). As of 31 December 2024, the Group had fully drawn all funds from the term loan facility.
\n
The loan is for a two-year term and has two one-year extension options.
\n
Unsecured bank borrowings are accounted for at amortised cost. At 31 December 2024, there was \u00a3110.5m (2023: \u00a384.0m)
\n
drawn on the RCFs, \u00a3182.5m (2023: \u00a3nil) drawn on term loans and the combined unamortised arrangement fees were \u00a32.5m
\n
(2023: \u00a32.8m), resulting in the carrying value being \u00a3290.5m (2023: \u00a381.2m).
\n
The main corporate \u00a3450m RCF includes a \u00a3300m \u2018green tranche\u2019 to fund qualifying \u2018green\u2019 expenditure in accordance with the
\n
Group\u2019s Green Finance Framework.
\n
As all main corporate facilities were refinanced or amended recently, the fair values of the Group\u2019s bank loans are deemed to be
\n
approximately the same as their carrying amount, after adjusting for the unamortised arrangement fees, and represent Level 2
\n
fair value measurement.
\n
Undrawn committed bank facilities \u2013 maturity pro\ufb01le
\n\n \n
< 1 year
1 to 2 years
2 to 3 years
3 to 4 years
4 to 5 years
> 5 years
Total
\u00a3m
\u00a3m
\u00a3m
\u00a3m
\u00a3m
\u00a3m
\u00a3m
At 31 December 2024
\u2013
395.5
76.5
\u2013
\u2013
\u2013
472.0
At 31 December 2023
\u2013
\u2013
383.5
82.5
\u2013
\u2013
466.0
\n
Other loans
\n
Other loans consist of a \u00a320.0m interest-free loan with no fixed repayment date from a third party providing development
\n
consultancy services on the residential element of the 25 Baker Street W1 development. The loan will be repaid from the sale
\n
proceeds of these residential apartments after completion of the scheme. The agreement provides for a profit share on completion
\n
of the sales which, under IFRS 9 Financial Instruments, has been deemed to have a carrying value of \u00a3nil at 31 December 2024
\n
(2023: \u00a3nil). The carrying value of the loan at 31 December 2024 was \u00a320.0m (2023: \u00a320.0m).
\n
Derivative \ufb01nancial instruments
\n
The derivative financial instruments consist of interest rate swaps, the fair values of which represent the net present value of the
\n
difference between the contracted fixed rates and the fixed rates payable if the swaps were to be replaced on 31 December 2024
\n
for the period to the contracted expiry dates. These represent Level 2 fair value measurement.
\n
The fair values of the Group\u2019s outstanding interest rate swaps have been estimated using the mid-point of the yield curves
\n
prevailing on the reporting date and represent the net present value of the differences between the contracted rate and the
\n
valuation rate when applied to the projected balances for the period from the reporting date to the contracted expiry dates.
\n
These represent Level 2 fair value measurement.
\n\n \n
Group
Weighted average
Principal
interest rate
Average life
\u00a3m
%
Years
At 31 December 2024
Interest rate swaps
75.0
1.36
0.3
At 31 December 2023
Interest rate swaps
55.0
1.36
1.3
Secured and unsecured debt
\n\n \n
2024
2023
\u00a3m
\u00a3m
Secured
6.5% secured bonds 2026
178.1
179.6
3.99% secured loan 2024
\u2013
82.9
178.1
262.5
Unsecured
1.5% unsecured convertible bonds 2025
174.1
172.1
1.875% unsecured green bonds 2031
347.2
346.8
Unsecured private placement notes 2026 \u2013 2034
453.6
453.5
Unsecured bank loans
290.5
81.2
Other loans
20.0
20.0
1,285.4
1,073.6
Borrowings
1,463.5
1,336.1
\n
As at 31 December 2024, the Group\u2019s secured bonds 2026 were secured by a floating charge over a number of the Group\u2019s
\n
subsidiary companies which contained \u00a3376.3m (2023: \u00a3395.9m) of the Group\u2019s properties.
\n
Fixed interest rate and hedged debt
\n
At 31 December 2024 and 31 December 2023, the Group\u2019s fixed rate and hedged debt included the unsecured convertible bonds,
\n
the unsecured green bonds, the secured bonds, the unsecured private placement notes, other loans and unsecured term loans.
\n
Interest rate exposure
\n
After taking into account the various interest rate hedging instruments entered into by the Group and the Company, the interest
\n
rate exposure of the Group\u2019s and Company\u2019s borrowings were:
\n\n \n
Weighted
Weighted
average
average
Floating rate
Hedged
Fixed rate
Borrowings
interest rate
1
life
\u00a3m
\u00a3m
\u00a3m
\u00a3m
%
Years
At 31 December 2024
1.5% unsecured convertible bonds 2025
\u2013
\u2013
174.1
174.1
2.30
0.4
6.5% secured bonds 2026
\u2013
\u2013
178.1
178.1
6.50
1.2
1.875% unsecured green bonds 2031
\u2013
\u2013
347.2
347.2
1.88
6.9
Unsecured private placement notes 2026 \u2013 2034
\u2013
\u2013
453.6
453.6
3.42
5.6
Unsecured bank loans
216.1
74.4
\u2013
290.5
4.81
2.2
Other loans
2
\u2013
\u2013
20.0
20.0
\u2013
\u2013
216.1
74.4
1,173.0
1,463.5
3.53
4.0
At 31 December 2023
1.5% unsecured convertible bonds 2025
\u2013
\u2013
172.1
172.1
2.30
1.4
6.5% secured bonds 2026
\u2013
\u2013
179.6
179.6
6.50
2.2
1.875% unsecured green bonds 2031
\u2013
\u2013
346.8
346.8
1.88
7.9
Unsecured private placement notes 2026 \u2013 2034
\u2013
\u2013
453.5
453.5
3.42
6.6
3.99% secured loan 2024
\u2013
\u2013
82.9
82.9
3.99
0.8
Unsecured bank loans
28.0
53.2
\u2013
81.2
3.71
3.0
Other loans
2
\u2013
\u2013
20.0
20.0
\u2013
\u2013
28.0
53.2
1,254.9
1,336.1
3.29
5.0
\n
1
The weighted average interest rates are based on the nominal amounts of the debt facilities.
\n
2
Other loans shown above are interest free and have no \ufb01xed repayment date. For further detail, see Other loans section above.
Contractual undiscounted cash out\ufb02ows
IFRS 7 Financial Instruments: Disclosure, requires disclosure of the maturity of the Group\u2019s remaining contractual financial
liabilities. The tables below show the contractual undiscounted cash outflows arising from the Group\u2019s gross debt.
< 1 year
1 to 2 years
2 to 3 years
3 to 4 years
4 to 5 years
> 5 years
Total
\u00a3m
\u00a3m
\u00a3m
\u00a3m
\u00a3m
\u00a3m
\u00a3m
At 31 December 2024
1.5% unsecured convertible bonds 2025
175.0
\u2013
\u2013
\u2013
\u2013
\u2013
175.0
6.5% secured bonds 2026
\u2013
175.0
\u2013
\u2013
\u2013
\u2013
175.0
1.875% unsecured green bonds 2031
\u2013
\u2013
\u2013
\u2013
\u2013
350.0
350.0
Unsecured private placement notes 2026 \u2013 2034
\u2013
55.0
\u2013
30.0
118.0
252.0
455.0
Unsecured bank loans
\u2013
169.5
123.5
\u2013
\u2013
\u2013
293.0
Other loans
20.0
\u2013
\u2013
\u2013
\u2013
\u2013
20.0
Total on maturity
195.0
399.5
123.5
30.0
118.0
602.0
1,468.0
Leasehold liabilities
1.7
1.8
1.8
1.8
1.6
208.6
217.3
Interest on borrowings
50.7
37.4
24.1
20.0
16.1
15.8
164.1
Effect of interest rate swaps
(0.8)
\u2013
\u2013
\u2013
\u2013
\u2013
(0.8)
Gross loan commitments
246.6
438.7
149.4
51.8
135.7
826.4
1,848.6
At 31 December 2023
1.5% unsecured convertible bonds 2025
\u2013
175.0
\u2013
\u2013
\u2013
\u2013
175.0
6.5% secured bonds 2026
\u2013
\u2013
175.0
\u2013
\u2013
\u2013
175.0
1.875% unsecured green bonds 2031
\u2013
\u2013
\u2013
\u2013
\u2013
350.0
350.0
Unsecured private placement notes 2026 \u2013 2034
\u2013
\u2013
55.0
\u2013
30.0
370.0
455.0
3.99% secured loan 2024
83.0
\u2013
\u2013
\u2013
\u2013
\u2013
83.0
Unsecured bank loans
\u2013
\u2013
66.5
17.5
\u2013
\u2013
84.0
Other loans
\u2013
20.0
\u2013
\u2013
\u2013
\u2013
20.0
Total on maturity
83.0
195.0
296.5
17.5
30.0
720.0
1,342.0
Leasehold liabilities
1.7
1.7
1.7
1.7
1.8
209.6
218.2
Interest on borrowings
42.9
37.5
25.4
21.1
20.0
54.3
201.2
Effect of interest rate swaps
(2.4)
(0.4)
\u2013
\u2013
\u2013
\u2013
(2.8)
Gross loan commitments
125.2
233.8
323.6
40.3
51.8
983.9
1,758.6
Reconciliation to borrowings:
Adjustments
Gross loan
Interest on
Effect of interest
Leasehold
Non-cash
commitments
gross debt
rate swaps
liabilities
amortisation
Borrowings
\u00a3m
\u00a3m
\u00a3m
\u00a3m
\u00a3m
\u00a3m
At 31 December 2024
Maturing in:
< 1 year
246.6
(50.7)
0.8
(1.7)
\u2013
195.0
1 to 2 years
438.7
(37.4)
\u2013
(1.8)
(1.8)
397.7
2 to 3 years
149.4
(24.1)
\u2013
(1.8)
(1.9)
121.6
3 to 4 years
51.8
(20.0)
\u2013
(1.8)
3.0
33.0
4 to 5 years
135.7
(16.1)
\u2013
(1.6)
(0.3)
117.7
> 5 years
826.4
(15.8)
\u2013
(208.6)
(3.5)
598.5
1,848.6
(164.1)
0.8
(217.3)
(4.5)
1,463.5
At 31 December 2023
Maturing in:
< 1 year
125.2
(42.9)
2.4
(1.7)
(0.1)
82.9
1 to 2 years
233.8
(37.5)
0.4
(1.7)
\u2013
195.0
2 to 3 years
323.6
(25.4)
\u2013
(1.7)
(5.4)
291.1
3 to 4 years
40.3
(21.1)
\u2013
(1.7)
4.1
21.6
4 to 5 years
51.8
(20.0)
\u2013
(1.8)
(0.1)
29.9
> 5 years
983.9
(54.3)
\u2013
(209.6)
(4.4)
715.6
1,758.6
(201.2)
2.8
(218.2)
(5.9)
1,336.1
", "dimensions": { "concept": "ifrs-full:DisclosureOfDerivativeFinancialInstrumentsExplanatory", "language": "en", "entity": "scheme:213800BXKQ9KZNUR1M61", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "TagsThatMustBeAppliedIfCorrespondingInformationIsPresentInAReport_Label_00227": { "value": "Financial instruments \u2013 risk management
The Group is exposed through its operations to the following financial risks:
\u2022 credit risk;
\u2022 market risk; and
\u2022 liquidity risk.
In common with all other businesses, the Group is exposed to risks that arise from its use of financial instruments. The following
describes the Group\u2019s objectives, policies and processes for managing those risks and the methods used to measure them. Further
quantitative information in respect of these risks is presented throughout these financial statements. Further information on risk
as required by IFRS 7 is given on pages 90 to 115.
There have been no substantive changes in the Group\u2019s exposure to financial instrument risks, its objectives, policies and processes
for managing those risks or the methods used to measure them from previous years. The Group\u2019s EPRA loan-to-value ratio has
increased to 29.9% as at 31 December 2024 but remains moderate.
Principal \ufb01nancial instruments
The principal financial instruments used by the Group, from which financial instrument risk arises, are trade receivables, accrued
income arising from the spreading of lease incentives, cash at bank, trade and other payables, floating rate bank loans and
private placement notes, secured and unsecured bonds and interest rate swaps.
General objectives, policies and processes
The Board has overall responsibility for the determination of the Group\u2019s risk management objectives and policies and, whilst
retaining ultimate responsibility for them, it has delegated the authority to executive management for designing and operating
processes that ensure the effective implementation of the objectives and policies.
The overall objective of the Board is to set policies that seek to reduce risk as far as possible without unduly affecting the Group\u2019s
flexibility and its ability to maximise returns. Further details regarding these policies are set out below:
Credit risk
Credit risk is the risk of financial loss to the Group if a customer or counterparty to a financial instrument fails to meet its
contractual obligations. The Group is mainly exposed to credit risk from lease contracts in relation to its property portfolio. It is
Group policy to assess the credit risk of new tenants before entering into such contracts. The Board has a Credit Committee which
assesses each new tenant before a new lease is signed. The review includes the latest sets of financial statements, external ratings
when available and, in some cases, forecast information and bank or trade references. The covenant strength of each tenant is
determined based on this review and, if appropriate, a deposit or a guarantee is obtained. The Committee also reviews existing
tenant covenants from time to time.
Impairment calculations have been carried out on trade receivables and lease incentive receivables, applying IFRS 9 and IAS
36, respectively. In addition, the Credit Committee has reviewed its register of tenants at higher risk, particularly in the retail or
hospitality sectors, those in administration or CVA and the top 50 tenants by size with the remaining occupiers considered on a
sector-by-sector basis.
As the Group operates predominantly in central London, it is subject to some geographical concentration risk. However, this is
mitigated by the wide range of tenants from a broad spectrum of business sectors.
Credit risk also arises from cash and cash equivalents and deposits with banks and financial institutions. For banks and financial
institutions, only independently rated parties with a minimum rating of investment grade are accepted. This risk is also reduced by
the short periods that money is on deposit at any one time.
The carrying amount of financial assets recorded in the financial statements represents the Group\u2019s maximum exposure to credit
risk without taking account of the value of any collateral obtained.
Market risk
Market risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate due to changes in market
prices. Market risk arises for the Group from its use of variable interest-bearing instruments (interest rate risk).
The Group monitors its interest rate exposure on at least a quarterly basis. Sensitivity analysis performed to ascertain the impact
on profit or loss and net assets of a 50-basis point shift in interest rates would result in an increase of \u00a31.1m (2023: \u00a30.1m) or
decrease of \u00a31.1m (2023: \u00a30.1m).
It is currently Group policy that generally between 60% and 85% of external Group borrowings (excluding finance lease payables)
are at fixed rates. Where the Group wishes to vary the amount of external fixed rate debt it holds (subject to it being generally
between 60% and 85% of expected Group borrowings, as noted above), the Group makes use of interest rate derivatives to
achieve the desired interest rate profile. Although the Board accepts that this policy neither protects the Group entirely from
the risk of paying rates in excess of current market rates nor eliminates fully cash flow risk associated with variability in interest
payments, it considers that it achieves an appropriate balance of exposure to these risks. At 31 December 2024, the proportion
of fixed debt held by the Group was within this range at 85% (2023: 98%). During both 2024 and 2023, the Group\u2019s borrowings
at variable rate were denominated in Sterling.
The Group manages its cash flow interest rate risk by using floating-to-fixed interest rate swaps. When the Group raises long-term
borrowings, it is generally at fixed rates.
Liquidity risk
Liquidity risk arises from the Group\u2019s management of working capital and the finance charges and principal repayments on its
debt instruments. It is the risk that the Group will encounter difficulty in meeting its financial obligations as they fall due.
The Group\u2019s policy is to ensure that it will always have sufficient headroom in its loan facilities to allow it to meet its liabilities
when they become due. To achieve this aim, it seeks to maintain committed facilities to meet the expected requirements. The
Group also seeks to reduce liquidity risk by fixing interest rates (and hence cash flows) on a portion of its long-term borrowings.
This is further explained in the \u2018market risk\u2019 section above.
Executive management receives rolling three-year projections of cash flow and loan balances on a regular basis as part of the
Group\u2019s forecasting processes. At the balance sheet date, these projections indicated that the Group expected to have sufficient
liquid resources to meet its obligations under all reasonably expected circumstances.
The Group\u2019s loan facilities and other borrowings are spread across a range of banks and financial institutions so as to minimise any
potential concentration of risk. The liquidity risk of the Group is managed centrally by the finance department.
Capital disclosures
The Group\u2019s capital comprises all components of equity (share capital, share premium, other reserves and retained earnings).
The Group\u2019s objectives when maintaining capital are:
\u2022
to safeguard the entity\u2019s ability to continue as a going concern so that it can continue to provide above average long-term
returns for shareholders; and
\u2022
to provide an above average annualised total return to shareholders.
The Group sets the amount of capital it requires in proportion to risk. The Group manages its capital structure and makes
adjustments to it in light of changes in economic conditions and the risk characteristics of the underlying assets. In order to
maintain or adjust the capital structure, the Group may vary the amount of dividends paid to shareholders subject to the rules
imposed by its REIT status. It may also seek to redeem bonds, return capital to shareholders, issue new shares or sell assets to
reduce debt. Consistent with others in its industry, the Group monitors capital on the basis of NAV gearing and loan-to-value
ratio. During 2024, the Group\u2019s strategy, which was unchanged from 2023, was to maintain the NAV gearing below 80% in normal
circumstances. These two gearing ratios, as well as the net interest cover ratio, are defined in the list of definitions on pages 284
and 285 and are derived in note 40.
The Group is also required to ensure that it has sufficient property assets which are not subject to fixed or floating charges or
other encumbrances. Most of the Group\u2019s debt is unsecured and, accordingly, there was \u00a34.7bn (2023: \u00a34.2bn) of uncharged
property as at 31 December 2024.", "dimensions": { "concept": "ifrs-full:DisclosureOfFinancialRiskManagementExplanatory", "language": "en", "entity": "scheme:213800BXKQ9KZNUR1M61", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "TagsThatMustBeAppliedIfCorrespondingInformationIsPresentInAReport_Label_00229": { "value": "Credit risk
Credit risk is the risk of financial loss to the Group if a customer or counterparty to a financial instrument fails to meet its
contractual obligations. The Group is mainly exposed to credit risk from lease contracts in relation to its property portfolio. It is
Group policy to assess the credit risk of new tenants before entering into such contracts. The Board has a Credit Committee which
assesses each new tenant before a new lease is signed. The review includes the latest sets of financial statements, external ratings
when available and, in some cases, forecast information and bank or trade references. The covenant strength of each tenant is
determined based on this review and, if appropriate, a deposit or a guarantee is obtained. The Committee also reviews existing
tenant covenants from time to time.
Impairment calculations have been carried out on trade receivables and lease incentive receivables, applying IFRS 9 and IAS
36, respectively. In addition, the Credit Committee has reviewed its register of tenants at higher risk, particularly in the retail or
hospitality sectors, those in administration or CVA and the top 50 tenants by size with the remaining occupiers considered on a
sector-by-sector basis.
As the Group operates predominantly in central London, it is subject to some geographical concentration risk. However, this is
mitigated by the wide range of tenants from a broad spectrum of business sectors.
Credit risk also arises from cash and cash equivalents and deposits with banks and financial institutions. For banks and financial
institutions, only independently rated parties with a minimum rating of investment grade are accepted. This risk is also reduced by
the short periods that money is on deposit at any one time.
The carrying amount of financial assets recorded in the financial statements represents the Group\u2019s maximum exposure to credit
risk without taking account of the value of any collateral obtained.", "dimensions": { "concept": "ifrs-full:DisclosureOfCreditRiskExplanatory", "language": "en", "entity": "scheme:213800BXKQ9KZNUR1M61", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "TagsThatMustBeAppliedIfCorrespondingInformationIsPresentInAReport_Label_00230": { "value": "Market risk
Market risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate due to changes in market
prices. Market risk arises for the Group from its use of variable interest-bearing instruments (interest rate risk).
The Group monitors its interest rate exposure on at least a quarterly basis. Sensitivity analysis performed to ascertain the impact
on profit or loss and net assets of a 50-basis point shift in interest rates would result in an increase of \u00a31.1m (2023: \u00a30.1m) or
decrease of \u00a31.1m (2023: \u00a30.1m).
It is currently Group policy that generally between 60% and 85% of external Group borrowings (excluding finance lease payables)
are at fixed rates. Where the Group wishes to vary the amount of external fixed rate debt it holds (subject to it being generally
between 60% and 85% of expected Group borrowings, as noted above), the Group makes use of interest rate derivatives to
achieve the desired interest rate profile. Although the Board accepts that this policy neither protects the Group entirely from
the risk of paying rates in excess of current market rates nor eliminates fully cash flow risk associated with variability in interest
payments, it considers that it achieves an appropriate balance of exposure to these risks. At 31 December 2024, the proportion
of fixed debt held by the Group was within this range at 85% (2023: 98%). During both 2024 and 2023, the Group\u2019s borrowings
at variable rate were denominated in Sterling.
The Group manages its cash flow interest rate risk by using floating-to-fixed interest rate swaps. When the Group raises long-term
borrowings, it is generally at fixed rates. ", "dimensions": { "concept": "ifrs-full:DisclosureOfMarketRiskExplanatory", "language": "en", "entity": "scheme:213800BXKQ9KZNUR1M61", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "TagsThatMustBeAppliedIfCorrespondingInformationIsPresentInAReport_Label_00231": { "value": "Liquidity risk
Liquidity risk arises from the Group\u2019s management of working capital and the finance charges and principal repayments on its
debt instruments. It is the risk that the Group will encounter difficulty in meeting its financial obligations as they fall due.
The Group\u2019s policy is to ensure that it will always have sufficient headroom in its loan facilities to allow it to meet its liabilities
when they become due. To achieve this aim, it seeks to maintain committed facilities to meet the expected requirements. The
Group also seeks to reduce liquidity risk by fixing interest rates (and hence cash flows) on a portion of its long-term borrowings.
This is further explained in the \u2018market risk\u2019 section above.
Executive management receives rolling three-year projections of cash flow and loan balances on a regular basis as part of the
Group\u2019s forecasting processes. At the balance sheet date, these projections indicated that the Group expected to have sufficient
liquid resources to meet its obligations under all reasonably expected circumstances.
The Group\u2019s loan facilities and other borrowings are spread across a range of banks and financial institutions so as to minimise any
potential concentration of risk. The liquidity risk of the Group is managed centrally by the finance department.", "dimensions": { "concept": "ifrs-full:DisclosureOfLiquidityRiskExplanatory", "language": "en", "entity": "scheme:213800BXKQ9KZNUR1M61", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "TagsThatMustBeAppliedIfCorrespondingInformationIsPresentInAReport_Label_00228": { "value": "Capital disclosures
The Group\u2019s capital comprises all components of equity (share capital, share premium, other reserves and retained earnings).
The Group\u2019s objectives when maintaining capital are:
\u2022
to safeguard the entity\u2019s ability to continue as a going concern so that it can continue to provide above average long-term
returns for shareholders; and
\u2022
to provide an above average annualised total return to shareholders.
The Group sets the amount of capital it requires in proportion to risk. The Group manages its capital structure and makes
adjustments to it in light of changes in economic conditions and the risk characteristics of the underlying assets. In order to
maintain or adjust the capital structure, the Group may vary the amount of dividends paid to shareholders subject to the rules
imposed by its REIT status. It may also seek to redeem bonds, return capital to shareholders, issue new shares or sell assets to
reduce debt. Consistent with others in its industry, the Group monitors capital on the basis of NAV gearing and loan-to-value
ratio. During 2024, the Group\u2019s strategy, which was unchanged from 2023, was to maintain the NAV gearing below 80% in normal
circumstances. These two gearing ratios, as well as the net interest cover ratio, are defined in the list of definitions on pages 284
and 285 and are derived in note 40.
The Group is also required to ensure that it has sufficient property assets which are not subject to fixed or floating charges or
other encumbrances. Most of the Group\u2019s debt is unsecured and, accordingly, there was \u00a34.7bn (2023: \u00a34.2bn) of uncharged
property as at 31 December 2024.", "dimensions": { "concept": "ifrs-full:DisclosureOfObjectivesPoliciesAndProcessesForManagingCapitalExplanatory", "language": "en", "entity": "scheme:213800BXKQ9KZNUR1M61", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "TagsThatMustBeAppliedIfCorrespondingInformationIsPresentInAReport_Label_00232": { "value": "26\u2002Financial assets and liabilities and fair values
Categories of \ufb01nancial assets and liabilities
\n \n
Fair value
Financial
Financial
Total
through profit
assets held at
liabilities held at
carrying
and loss
amortised cost
amortised cost
value
\u00a3m
\u00a3m
\u00a3m
\u00a3m
Financial assets
Cash and cash equivalents
\u2013
71.4
\u2013
71.4
Other assets \u2013 current
\u2013
17.6
\u2013
17.6
\u2013
89.0
\u2013
89.0
Financial liabilities
1.5% unsecured convertible bonds 2025
\u2013
\u2013
(174.1)
(174.1)
6.5% secured bonds 2026
\u2013
\u2013
(178.1)
(178.1)
1.875% unsecured green bonds 2031
\u2013
\u2013
(347.2)
(347.2)
Unsecured private placement notes 2026 \u2013 2034
\u2013
\u2013
(453.6)
(453.6)
Bank borrowings due after one year
\u2013
\u2013
(290.5)
(290.5)
Other loans
\u2013
\u2013
(20.0)
(20.0)
Leasehold liabilities
\u2013
\u2013
(34.6)
(34.6)
Derivative financial instruments
0.6
\u2013
\u2013
0.6
Other liabilities \u2013 current
\u2013
\u2013
(117.4)
(117.4)
0.6
\u2013
(1,615.5)
(1,614.9)
At 31 December 2024
0.6
89.0
(1,615.5)
(1,525.9)
Financial assets
Cash and cash equivalents
\u2013
73.0
\u2013
73.0
Other assets \u2013 current
\u2013
13.2
\u2013
13.2
\u2013
86.2
\u2013
86.2
Financial liabilities
1.5% unsecured convertible bonds 2025
\u2013
\u2013
(172.1)
(172.1)
6.5% secured bonds 2026
\u2013
\u2013
(179.6)
(179.6)
1.875% unsecured green bonds 2031
\u2013
\u2013
(346.8)
(346.8)
Unsecured private placement notes 2026 \u2013 2034
\u2013
\u2013
(453.5)
(453.5)
3.99% secured loan 2024
\u2013
\u2013
(82.9)
(82.9)
Bank borrowings due after one year
\u2013
\u2013
(81.2)
(81.2)
Other loans
\u2013
\u2013
(20.0)
(20.0)
Leasehold liabilities
\u2013
\u2013
(34.6)
(34.6)
Derivative financial instruments
2.9
\u2013
\u2013
2.9
Other liabilities \u2013 current
\u2013
\u2013
(93.9)
(93.9)
2.9
\u2013
(1,464.6)
(1,461.7)
At 31 December 2023
2.9
86.2
(1,464.6)
(1,375.5)
", "dimensions": { "concept": "ifrs-full:DisclosureOfFinancialInstrumentsAtFairValueThroughProfitOrLossExplanatory", "language": "en", "entity": "scheme:213800BXKQ9KZNUR1M61", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "TagsThatMustBeAppliedIfCorrespondingInformationIsPresentInAReport_Label_00233": { "value": "26\u2002Financial assets and liabilities and fair values
Categories of \ufb01nancial assets and liabilities
\n \n
Fair value
Financial
Financial
Total
through profit
assets held at
liabilities held at
carrying
and loss
amortised cost
amortised cost
value
\u00a3m
\u00a3m
\u00a3m
\u00a3m
Financial assets
Cash and cash equivalents
\u2013
71.4
\u2013
71.4
Other assets \u2013 current
\u2013
17.6
\u2013
17.6
\u2013
89.0
\u2013
89.0
Financial liabilities
1.5% unsecured convertible bonds 2025
\u2013
\u2013
(174.1)
(174.1)
6.5% secured bonds 2026
\u2013
\u2013
(178.1)
(178.1)
1.875% unsecured green bonds 2031
\u2013
\u2013
(347.2)
(347.2)
Unsecured private placement notes 2026 \u2013 2034
\u2013
\u2013
(453.6)
(453.6)
Bank borrowings due after one year
\u2013
\u2013
(290.5)
(290.5)
Other loans
\u2013
\u2013
(20.0)
(20.0)
Leasehold liabilities
\u2013
\u2013
(34.6)
(34.6)
Derivative financial instruments
0.6
\u2013
\u2013
0.6
Other liabilities \u2013 current
\u2013
\u2013
(117.4)
(117.4)
0.6
\u2013
(1,615.5)
(1,614.9)
At 31 December 2024
0.6
89.0
(1,615.5)
(1,525.9)
Financial assets
Cash and cash equivalents
\u2013
73.0
\u2013
73.0
Other assets \u2013 current
\u2013
13.2
\u2013
13.2
\u2013
86.2
\u2013
86.2
Financial liabilities
1.5% unsecured convertible bonds 2025
\u2013
\u2013
(172.1)
(172.1)
6.5% secured bonds 2026
\u2013
\u2013
(179.6)
(179.6)
1.875% unsecured green bonds 2031
\u2013
\u2013
(346.8)
(346.8)
Unsecured private placement notes 2026 \u2013 2034
\u2013
\u2013
(453.5)
(453.5)
3.99% secured loan 2024
\u2013
\u2013
(82.9)
(82.9)
Bank borrowings due after one year
\u2013
\u2013
(81.2)
(81.2)
Other loans
\u2013
\u2013
(20.0)
(20.0)
Leasehold liabilities
\u2013
\u2013
(34.6)
(34.6)
Derivative financial instruments
2.9
\u2013
\u2013
2.9
Other liabilities \u2013 current
\u2013
\u2013
(93.9)
(93.9)
2.9
\u2013
(1,464.6)
(1,461.7)
At 31 December 2023
2.9
86.2
(1,464.6)
(1,375.5)
Reconciliation of net \ufb01nancial assets and liabilities to gross debt
\n \n
2024
2023
\u00a3m
\u00a3m
Net financial assets and liabilities
(1,525.9)
(1,375.5)
Other assets \u2013 current
(17.6)
(13.2)
Other liabilities \u2013 current
117.4
93.9
Cash and cash equivalents
(71.4)
(73.0)
Gross debt
(1,497.5)
(1,367.8)
Fair value measurement
The table below shows the fair values, where applicable, of borrowings and derivative financial instruments held by the Group,
together with a reconciliation to net financial assets and liabilities. Details of inputs and valuation methods used to derive the fair
values are shown in note 25.
\n \n
Group
Carrying value
Fair value
Fair value
\u00a3m
\u00a3m
hierarchy
At 31 December 2024
1.5% unsecured convertible bonds 2025
(174.1)
(171.6)
Level 1
6.5% secured bonds 2026
(178.1)
(176.7)
Level 1
1.875% unsecured green bonds 2031
(347.2)
(281.2)
Level 1
Unsecured private placement notes 2026 \u2013 2034
(453.6)
(391.3)
Level 2
Bank borrowings due after one year
(290.5)
(293.0)
Level 2
Other loans
(20.0)
(20.0)
Level 2
Derivative financial instruments
0.6
0.6
Level 2
(1,462.9)
(1,333.2)
Amounts not fair valued:
Cash and cash equivalents
71.4
Other assets \u2013 current
17.6
Leasehold liabilities
(34.6)
Other liabilities \u2013 current
(117.4)
Net financial assets and liabilities
(1,525.9)
At 31 December 2023
1.5% unsecured convertible bonds 2025
(172.1)
(164.7)
Level 1
6.5% secured bonds 2026
(179.6)
(178.1)
Level 1
1.875% unsecured green bonds 2031
(346.8)
(279.0)
Level 1
Unsecured private placement notes 2026 \u2013 2034
(453.5)
(399.0)
Level 2
3.99% secured loan 2024
(82.9)
(81.8)
Level 2
Bank borrowings due after one year
(81.2)
(84.0)
Level 2
Other loans
(20.0)
(20.0)
Level 2
Derivative financial instruments
2.9
2.9
Level 2
(1,333.2)
(1,203.7)
Amounts not fair valued:
Cash and cash equivalents
73.0
Other assets \u2013 current
13.2
Leasehold liabilities
(34.6)
Other liabilities \u2013 current
(93.9)
Net financial assets and liabilities
(1,375.5)
The fair values of the following financial assets and liabilities are the same as their carrying values:
\u2022
Cash and cash equivalents.
\u2022
Trade receivables, other receivables and accrued income included within trade and other receivables.
\u2022
Trade payables, other payables and accruals included within trade and other payables.
\u2022 Leasehold liabilities.
There have been no transfers between levels in either 2024 or 2023.", "dimensions": { "concept": "ifrs-full:DisclosureOfFairValueOfFinancialInstrumentsExplanatory", "language": "en", "entity": "scheme:213800BXKQ9KZNUR1M61", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "TagsThatMustBeAppliedIfCorrespondingInformationIsPresentInAReport_Label_00234": { "value": "27\u2002Net debt to cash flow reconciliation
Net debt reconciliation
The table below shows net debt movement during the year as a result of cash flows and other non-cash movements.
\n \n
Non-cash changes
Impact of issue
Transfer from
and arrangement
Fair value
non-current to
2023
Cash flows
costs
Other
adjustments
current
2024
\u00a3m
\u00a3m
\u00a3m
\u00a3m
\u00a3m
\u00a3m
\u00a3m
Current liabilities
Borrowings
102.9
(83.0)
0.3
(0.2)
\u2013
174.1
194.1
Leasehold liabilities
0.4
\u2013
\u2013
\u2013
\u2013
\u2013
0.4
Non-current liabilities
Borrowings
1,233.2
208.3
1.9
\u2013
0.1
(174.1)
1,269.4
Leasehold liabilities
34.2
\u2013
\u2013
\u2013
\u2013
\u2013
34.2
Total liabilities from financing activities
1,370.7
125.3
2.2
(0.2)
0.1
\u2013
1,498.1
Cash at bank
1
(13.9)
(1.5)
\u2013
\u2013
\u2013
\u2013
(15.4)
Net debt
1,356.8
123.8
2.2
(0.2)
0.1
\u2013
1,482.7
1
Cash at bank excluding restricted cash (see note 33).
28\u2002Cash generated from operations
The table below shows the reconciliation of cash generated from operations.
\n \n
2024
2023
\u00a3m
\u00a3m
Profit/(loss) from operations
156.4
(428.9)
Adjustment for non-cash items:
Revaluation deficit
2.7
581.5
Depreciation
1.0
1.1
Lease incentive/cost spreading
(6.8)
(6.6)
Share-based payments
3.1
2.5
Ground rent adjustment
0.7
0.3
Adjustment for other items:
Profit on disposal
(1.9)
(1.2)
Changes in working capital:
Increase in receivables balance
(8.8)
(3.7)
Increase in payables balance
9.5
17.5
Increase in trading property and trading stock
(53.3)
(27.2)
Cash generated from operations
102.6
135.3
Cash generated from operations includes \u00a33.6m (2023: \u00a3nil) cash inflows from disposal of trading properties, \u00a343.0m (2023: \u00a319.2m)
cash outflows in relation to expenditure on trading properties and \u00a39.8m (2023: \u00a35.5m) cash outflows in relation to expenditure
on trading stock.", "dimensions": { "concept": "ifrs-full:DisclosureOfCashFlowStatementExplanatory", "language": "en", "entity": "scheme:213800BXKQ9KZNUR1M61", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "TagsThatMustBeAppliedIfCorrespondingInformationIsPresentInAReport_Label_00235": { "value": "29\u2002Deferred tax \n \n
Revaluation
Other
Total
\u00a3m
\u00a3m
\u00a3m
At 1 January 2024
2.8
(2.7)
0.1
Charged to the income statement
0.1
\u2013
0.1
Charged to other comprehensive income
0.6
\u2013
0.6
At 31 December 2024
3.5
(2.7)
0.8
At 1 January 2023
3.7
(3.1)
0.6
Charged to the income statement
0.1
0.4
0.5
Credited to other comprehensive income
(1.0)
\u2013
(1.0)
At 31 December 2023
2.8
(2.7)
0.1
Deferred tax has been recognised at the main rate of corporation tax of 25.0% which is the rate enacted for the purposes of IAS 12
on the basis of the expected timing of the realisation of the deferred tax.
Deferred tax on the balance sheet revaluation deficit/surplus is calculated on the basis of the chargeable gains that would
crystallise on the sale of the property portfolio at each balance sheet date. The calculation takes account of any available
indexation on the historical cost of the properties. Due to the Group\u2019s REIT status, deferred tax is only provided at each balance
sheet date on properties outside the REIT ring-fence. As a result, the Group has recognised an increase in the deferred tax liability
on owner-occupied property of \u00a30.6m through other comprehensive income.
A deferred tax charge has been recognised through the income statement of \u00a30.1m. This is due to a \u00a31.0m reduction in the
deferred tax asset in relation to share-based payments and other temporary timing differences, offset by an increase in the
deferred tax asset of \u00a30.9m in respect of tax losses which the Directors believe will be recovered in the future.", "dimensions": { "concept": "ifrs-full:DisclosureOfDeferredTaxesExplanatory", "language": "en", "entity": "scheme:213800BXKQ9KZNUR1M61", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "TagsThatMustBeAppliedIfCorrespondingInformationIsPresentInAReport_Label_00237": { "value": "30\u2002Share capital
The movement in the number of 5p ordinary shares in issue is shown in the table below:
\n \n
Number of shares in issue fully paid
Number
At 1 January 2023
112,290,679
Issued as a result of the exercise of share options
1
250
At 31 December 2023 and 2024
112,290,929
1
Proceeds from these issues were \u00a3nil (2023: \u00a3nil).
The number of outstanding share options and other share awards granted are disclosed in the report of the Remuneration
Committee and note 13.", "dimensions": { "concept": "ifrs-full:DisclosureOfIssuedCapitalExplanatory", "language": "en", "entity": "scheme:213800BXKQ9KZNUR1M61", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "TagsThatMustBeAppliedIfCorrespondingInformationIsPresentInAReport_Label_00236": { "value": "30\u2002Share capital
The movement in the number of 5p ordinary shares in issue is shown in the table below:
\n \n
Number of shares in issue fully paid
Number
At 1 January 2023
112,290,679
Issued as a result of the exercise of share options
1
250
At 31 December 2023 and 2024
112,290,929
1
Proceeds from these issues were \u00a3nil (2023: \u00a3nil).
The number of outstanding share options and other share awards granted are disclosed in the report of the Remuneration
Committee and note 13.
31\u2002Reserves
The following describes the nature and purpose of each reserve within shareholders\u2019 equity:
\n \n
Reserve
Description and purpose
Share premium
Amount subscribed for share capital in excess of nominal value less directly attributable issue costs.
Other
Merger
Premium on the issue of shares as equity consideration for the acquisition of London Merchant
reserves:
Securities plc (LMS).
Revaluation
Revaluation of the owner-occupied property and the associated deferred tax.
Other
Equity portion of the convertible bonds for the Group and intercompany loans for the Company.
Fair value of equity instruments granted but not yet exercised under share-based payments.
Retained earnings
Cumulative net gains and losses recognised in the Group income statement together with other
items such as dividends.
2024
2023
Other reserves
\u00a3m
\u00a3m
Merger reserve
910.5
910.5
Revaluation reserve
15.4
13.1
Equity portion of the convertible bonds
7.5
7.5
Fair value of equity instruments under share-based payments
9.8
8.2
943.2
939.3
", "dimensions": { "concept": "ifrs-full:DisclosureOfShareCapitalReservesAndOtherEquityInterestExplanatory", "language": "en", "entity": "scheme:213800BXKQ9KZNUR1M61", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "TagsThatMustBeAppliedIfCorrespondingInformationIsPresentInAReport_Label_00238": { "value": "31\u2002Reserves
The following describes the nature and purpose of each reserve within shareholders\u2019 equity:
\n \n
Reserve
Description and purpose
Share premium
Amount subscribed for share capital in excess of nominal value less directly attributable issue costs.
Other
Merger
Premium on the issue of shares as equity consideration for the acquisition of London Merchant
reserves:
Securities plc (LMS).
Revaluation
Revaluation of the owner-occupied property and the associated deferred tax.
Other
Equity portion of the convertible bonds for the Group and intercompany loans for the Company.
Fair value of equity instruments granted but not yet exercised under share-based payments.
Retained earnings
Cumulative net gains and losses recognised in the Group income statement together with other
items such as dividends.
2024
2023
Other reserves
\u00a3m
\u00a3m
Merger reserve
910.5
910.5
Revaluation reserve
15.4
13.1
Equity portion of the convertible bonds
7.5
7.5
Fair value of equity instruments under share-based payments
9.8
8.2
943.2
939.3
", "dimensions": { "concept": "ifrs-full:DisclosureOfReservesAndOtherEquityInterestExplanatory", "language": "en", "entity": "scheme:213800BXKQ9KZNUR1M61", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "TagsThatMustBeAppliedIfCorrespondingInformationIsPresentInAReport_Label_00239": { "value": "32\u2002Dividend
Dividend per share
PID
Non-PID
Total
2024
2023
Payment date
p
p
p
\u00a3m
\u00a3m
Current year
2024 final dividend
1
30 May 2025
45.50
10.00
55.50
\u2013
\u2013
2024 interim dividend
11 October 2024
25.00
\u2013
25.00
28.1
\u2013
70.50
10.00
80.50
28.1
\u2013
Prior year
2023 final dividend
31 May 2024
39.00
16.00
55.00
61.7
\u2013
2023 interim dividend
13 October 2023
24.50
\u2013
24.50
\u2013
27.5
63.50
16.00
79.50
61.7
27.5
2022 final dividend
2 June 2023
38.50
16.00
54.50
\u2013
61.2
Dividends as reported in the Group
statement of changes in equity
89.8
88.7
2024 interim dividend withholding tax
14 January 2025
(3.9)
\u2013
2023 interim dividend withholding tax
12 January 2024
3.7
(3.7)
2022 interim dividend withholding tax
13 January 2023
\u2013
3.7
Dividends paid as reported in the
Consolidated cash flow statement
89.6
88.7
1
Subject to shareholder approval at the AGM on 16 May 2025.", "dimensions": { "concept": "ifrs-full:DisclosureOfDividendsExplanatory", "language": "en", "entity": "scheme:213800BXKQ9KZNUR1M61", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "TagsThatMustBeAppliedIfCorrespondingInformationIsPresentInAReport_Label_00240": { "value": "0.555", "decimals": 4, "dimensions": { "concept": "ifrs-full:DividendsProposedOrDeclaredBeforeFinancialStatementsAuthorisedForIssueButNotRecognisedAsDistributionToOwnersPerShare", "entity": "scheme:213800BXKQ9KZNUR1M61", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00", "unit": "iso4217:GBP/xbrli:shares" } }, "TagsThatMustBeAppliedIfCorrespondingInformationIsPresentInAReport_Label_00241": { "value": "0.55", "decimals": 4, "dimensions": { "concept": "ifrs-full:DividendsProposedOrDeclaredBeforeFinancialStatementsAuthorisedForIssueButNotRecognisedAsDistributionToOwnersPerShare", "entity": "scheme:213800BXKQ9KZNUR1M61", "period": "2023-01-01T00:00:00/2024-01-01T00:00:00", "unit": "iso4217:GBP/xbrli:shares" } }, "TagsThatMustBeAppliedIfCorrespondingInformationIsPresentInAReport_Label_00242": { "value": "0.545", "decimals": 4, "dimensions": { "concept": "ifrs-full:DividendsProposedOrDeclaredBeforeFinancialStatementsAuthorisedForIssueButNotRecognisedAsDistributionToOwnersPerShare", "entity": "scheme:213800BXKQ9KZNUR1M61", "period": "2022-01-01T00:00:00/2023-01-01T00:00:00", "unit": "iso4217:GBP/xbrli:shares" } }, "TagsThatMustBeAppliedIfCorrespondingInformationIsPresentInAReport_Label_00243": { "value": "33\u2002Cash and cash equivalents
2024
2023
\u00a3m
\u00a3
Cash at bank
15.4
13.9
Cash held in restricted accounts
Tenant rent deposits
27.9
27.0
Service charge balances
28.1
32.1
71.4
73.0
", "dimensions": { "concept": "ifrs-full:DisclosureOfCashAndCashEquivalentsExplanatory", "language": "en", "entity": "scheme:213800BXKQ9KZNUR1M61", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "TagsThatMustBeAppliedIfCorrespondingInformationIsPresentInAReport_Label_00244": { "value": "33\u2002Cash and cash equivalents
2024
2023
\u00a3m
\u00a3
Cash at bank
15.4
13.9
Cash held in restricted accounts
Tenant rent deposits
27.9
27.0
Service charge balances
28.1
32.1
71.4
73.0
", "dimensions": { "concept": "ifrs-full:DisclosureOfRestrictedCashAndCashEquivalentsExplanatory", "language": "en", "entity": "scheme:213800BXKQ9KZNUR1M61", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "TagsThatMustBeAppliedIfCorrespondingInformationIsPresentInAReport_Label_00246": { "value": "34\u2002Capital commitments and contingent liabilities
Contracts for capital expenditure entered into by the Group at 31 December 2024 and not provided for in the accounts relating
to the construction, development or enhancement of the Group\u2019s investment properties amounted to \u00a3101.0m (2023: \u00a3156.0m),
whilst that relating to the Group\u2019s trading properties amounted to \u00a329.3m (2023: \u00a377.6m). At 31 December 2024 and 31 December
2023, there were no material contractual obligations for the purchase, repair or maintenance of investment or trading properties.
In May 2022, Derwent London exchanged a conditional contract to acquire the freehold of the Old Street Quarter site, the existing
site of the Moorfields Eye Hospital and the UCL Institute of Ophthalmology, together the Oriel joint initiative (\u2018Oriel\u2019). Consideration
for the site has been agreed as \u00a3239m before costs. Completion is subject to delivery by Oriel of a new hospital at St Pancras and
subsequent vacant possession of the site, which is anticipated no earlier than 2027.", "dimensions": { "concept": "ifrs-full:DisclosureOfContingentLiabilitiesExplanatory", "language": "en", "entity": "scheme:213800BXKQ9KZNUR1M61", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "TagsThatMustBeAppliedIfCorrespondingInformationIsPresentInAReport_Label_00245": { "value": "34\u2002Capital commitments and contingent liabilities
Contracts for capital expenditure entered into by the Group at 31 December 2024 and not provided for in the accounts relating
to the construction, development or enhancement of the Group\u2019s investment properties amounted to \u00a3101.0m (2023: \u00a3156.0m),
whilst that relating to the Group\u2019s trading properties amounted to \u00a329.3m (2023: \u00a377.6m). At 31 December 2024 and 31 December
2023, there were no material contractual obligations for the purchase, repair or maintenance of investment or trading properties.
In May 2022, Derwent London exchanged a conditional contract to acquire the freehold of the Old Street Quarter site, the existing
site of the Moorfields Eye Hospital and the UCL Institute of Ophthalmology, together the Oriel joint initiative (\u2018Oriel\u2019). Consideration
for the site has been agreed as \u00a3239m before costs. Completion is subject to delivery by Oriel of a new hospital at St Pancras and
subsequent vacant possession of the site, which is anticipated no earlier than 2027.", "dimensions": { "concept": "ifrs-full:DisclosureOfCommitmentsExplanatory", "language": "en", "entity": "scheme:213800BXKQ9KZNUR1M61", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "TagsThatMustBeAppliedIfCorrespondingInformationIsPresentInAReport_Label_00247": { "value": "34\u2002Capital commitments and contingent liabilities
Contracts for capital expenditure entered into by the Group at 31 December 2024 and not provided for in the accounts relating
to the construction, development or enhancement of the Group\u2019s investment properties amounted to \u00a3101.0m (2023: \u00a3156.0m),
whilst that relating to the Group\u2019s trading properties amounted to \u00a329.3m (2023: \u00a377.6m). At 31 December 2024 and 31 December
2023, there were no material contractual obligations for the purchase, repair or maintenance of investment or trading properties.
In May 2022, Derwent London exchanged a conditional contract to acquire the freehold of the Old Street Quarter site, the existing
site of the Moorfields Eye Hospital and the UCL Institute of Ophthalmology, together the Oriel joint initiative (\u2018Oriel\u2019). Consideration
for the site has been agreed as \u00a3239m before costs. Completion is subject to delivery by Oriel of a new hospital at St Pancras and
subsequent vacant possession of the site, which is anticipated no earlier than 2027.", "dimensions": { "concept": "ifrs-full:DisclosureOfCommitmentsAndContingentLiabilitiesExplanatory", "language": "en", "entity": "scheme:213800BXKQ9KZNUR1M61", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "TagsThatMustBeAppliedIfCorrespondingInformationIsPresentInAReport_Label_00248": { "value": "35\u2002Leases \n \n
2024
2023
\u00a3m
\u00a3m
Operating lease receipts
Minimum lease receipts under non-cancellable operating leases to be received:
not later than one year
207.8
205.6
later than one year and not later than five years
634.9
676.2
later than five years
698.1
809.6
1,540.8
1,691.4
\n \n
2024
2023
\u00a3m
\u00a3m
Headlease obligations
Minimum lease payments under headleases that fall due:
not later than one year
1.7
1.7
later than one year and not later than five years
7.0
6.9
later than five years
208.6
209.6
217.3
218.2
Future finance charges on headleases
(182.7)
(183.6)
Present value of headlease liabilities
34.6
34.6
Present value of minimum headlease obligations:
not later than one year
0.4
0.4
later than one year and not later than five years
1.9
1.8
later than five years
32.3
32.4
34.6
34.6
The Group has approximately 758 leases granted to its tenants. These vary depending on the individual tenant and the respective
property and demise but typically are let for a term of five to 20 years, at a market rent with provisions to review to market rent
every five years. Standard lease provisions include service charge payments and recovery of other direct costs. The weighted
average lease length of the leases commencing during 2024 was 5.4 years (2023: 8.6 years). Of these leases, on a weighted
average basis, 73% (2023: 84%) included a rent-free or half rent period.", "dimensions": { "concept": "ifrs-full:DisclosureOfLeasesExplanatory", "language": "en", "entity": "scheme:213800BXKQ9KZNUR1M61", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "TagsThatMustBeAppliedIfCorrespondingInformationIsPresentInAReport_Label_00336": { "value": "36\u2002Post balance sheet events
In January 2025, the Group completed the disposal of its freehold interest in 4 & 10 Pentonville Road N1 for \u00a326.0m before costs.
At 31 December 2024, in line with IFRS 5, this property was classified as a non-current asset held for sale, see note 22.
Following the bank facility signed in December 2024, the Group signed a new \u00a3115 million unsecured bank facility in February 2025.
The new facility bears interest at compounded SONIA plus a margin and includes an \u00a382.5m term loan and a \u00a332.5m revolving
credit facility. The new facility is for an initial two-year term and includes one extension option.", "dimensions": { "concept": "ifrs-full:DisclosureOfEventsAfterReportingPeriodExplanatory", "language": "en", "entity": "scheme:213800BXKQ9KZNUR1M61", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "TagsThatMustBeAppliedIfCorrespondingInformationIsPresentInAReport_Label_00249": { "value": "37\u2002Related party disclosure
Details of Directors\u2019 remuneration are given in the report of the Remuneration Committee on pages 174 to 199 and note 11.
Details of transactions with joint ventures are shown in note 19. A full list of subsidiaries and joint ventures is given in note xii
of the Company financial statements. Other related party transactions are as follows:
The Group earned fees of \u00a30.4m (2023: \u00a30.5m) for the period up to 31 October 2024 in relation to development management,
asset management and administration of the Derwent Lazari Baker Street Limited Partnership. See note 19 for further information.", "dimensions": { "concept": "ifrs-full:DisclosureOfSignificantInvestmentsInSubsidiariesExplanatory", "language": "en", "entity": "scheme:213800BXKQ9KZNUR1M61", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "TagsThatMustBeAppliedIfCorrespondingInformationIsPresentInAReport_Label_00250": { "value": "37\u2002Related party disclosure
Details of Directors\u2019 remuneration are given in the report of the Remuneration Committee on pages 174 to 199 and note 11.
Details of transactions with joint ventures are shown in note 19. A full list of subsidiaries and joint ventures is given in note xii
of the Company financial statements. Other related party transactions are as follows:
The Group earned fees of \u00a30.4m (2023: \u00a30.5m) for the period up to 31 October 2024 in relation to development management,
asset management and administration of the Derwent Lazari Baker Street Limited Partnership. See note 19 for further information.", "dimensions": { "concept": "ifrs-full:DisclosureOfRelatedPartyExplanatory", "language": "en", "entity": "scheme:213800BXKQ9KZNUR1M61", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "TagsThatMustBeAppliedIfCorrespondingInformationIsPresentInAReport_Label_00251": { "value": "38\u2002EPRA performance measures and core recommendations
Unaudited unless stated otherwise.
As with most other UK property companies and real estate investment trusts (REITs), the Group presents many of its financial
measures in accordance with the guidance criteria issued by the European Public Real Estate Association (EPRA). These measures,
which provide consistency across the sector, are all derived from the IFRS figures.
Summary table of EPRA performance measures
\n \n
2024
2023
Pence
Pence
per share
per share
p
p
EPRA earnings (audited)
\u00a3119.5m
106.45
\u00a3114.5m
101.97
EPRA Net Tangible Assets (audited)
\u00a33,545.0m
3,149
\u00a33,522.1m
3,129
EPRA Net Disposal Value (audited)
\u00a33,671.4m
3,261
\u00a33,649.6m
3,243
EPRA Net Reinstatement Value (audited)
\u00a33,889.5m
3,455
\u00a33,852.9m
3,423
EPRA Cost Ratio (including direct vacancy costs)
27.0%
27.3%
EPRA Cost Ratio (excluding direct vacancy costs)
21.7%
22.3%
EPRA Net Initial Yield
4.3%
4.3%
EPRA \u2018topped-up\u2019 Net Initial Yield
5.2%
5.2%
EPRA Vacancy Rate
3.1%
4.0%
The definition of these measures can be found on pages 283 and 284.
Number of shares
\n \n
Earnings per share
Net asset value per share
Weighted average
At 31 December
2024
2023
2024
2023
Audited
Audited
Audited
Audited
\u2018000
\u2018000
\u2018000
\u2018000
For use in basic measures
112,258
112,291
112,258
112,291
Dilutive effect of share-based payments
342
243
323
257
For use in diluted measures
112,600
112,534
112,581
112,548
The \u00a3175m unsecured convertible bonds 2025 (\u20181.5% convertible bonds 2025\u2019) have an initial conversion price set at \u00a344.96.
The Group recognises the effect of conversion of the bonds if they are both dilutive and, based on the share price, likely to convert.
For the year ended 31 December 2023 and 2024, the Group did not recognise the dilutive impact of the conversion of the 2025
bonds on its earnings per share (EPS) or net asset value (NAV) per share metrics as, based on the share price at the end of each
year, the bonds were not expected to convert.
The following tables set out reconciliations between the IFRS and EPRA earnings for the year and earnings per share.
The adjustments made between the figures are as follows:
A \u2013 Disposal of investment and trading property (including the Group\u2019s share in joint ventures), and associated tax.
B \u2013
Revaluation movement on investment property, in joint ventures and other interests, write-down of trading property and
associated deferred tax.
C \u2013Fair value movement and termination income relating to derivative financial instruments.
Earnings and earnings per share (audited)
\n \n
Adjustments
EPRA
IFRS
A
B
C
basis
\u00a3m
\u00a3m
\u00a3m
\u00a3m
\u00a3m
Year ended 31 December 2024
Net property and other income
198.3
\u2013
0.2
\u2013
198.5
Total administrative expenses
(41.1)
\u2013
\u2013
\u2013
(41.1)
Revaluation deficit
(2.7)
\u2013
2.7
\u2013
\u2013
Profit on disposal of investments
1.9
(1.9)
\u2013
\u2013
\u2013
Net finance costs
(39.6)
\u2013
\u2013
\u2013
(39.6)
Movement in fair value of derivative financial instruments
(2.3)
\u2013
\u2013
2.3
\u2013
Share of results of joint ventures
1.5
\u2013
0.3
\u2013
1.8
Profit before tax
116.0
(1.9)
3.2
2.3
119.6
Tax charge
(0.1)
\u2013
\u2013
\u2013
(0.1)
Profit for the year
115.9
(1.9)
3.2
2.3
119.5
Earnings attributable to equity shareholders
115.9
(1.9)
3.2
2.3
119.5
Earnings per share
103.24p
106.45p
Diluted earnings per share
102.93p
106.13p
Year ended 31 December 2023
Net property and other income
190.5
\u2013
1.0
\u2013
191.5
Total administrative expenses
(39.1)
\u2013
\u2013
\u2013
(39.1)
Revaluation deficit
(581.5)
\u2013
581.5
\u2013
\u2013
Profit on disposal of investments
1.2
(1.2)
\u2013
\u2013
\u2013
Net finance costs
(39.5)
\u2013
\u2013
\u2013
(39.5)
Movement in fair value of derivative financial instruments
(2.1)
\u2013
\u2013
2.1
\u2013
Financial derivative termination income
1.8
\u2013
\u2013
(1.8)
\u2013
Share of results of joint ventures
(7.2)
\u2013
9.2
\u2013
2.0
Loss before tax
(475.9)
(1.2)
591.7
0.3
114.9
Tax charge
(0.5)
\u2013
0.1
\u2013
(0.4)
(Loss)/earnings attributable to equity shareholders
(476.4)
(1.2)
591.8
0.3
114.5
(Loss)/earnings per share
(424.25p)
101.97p
Diluted (loss)/earnings per share
(424.25p)
101.75p
The diluted loss per share for the year to 31 December 2023 was restricted to a loss of 424.25p per share, as the loss per share
cannot be reduced by dilution in accordance with IAS 33 Earnings per Share.
EPRA Net Asset Value metrics (audited)
\n\n \n
2024
2023
\u00a3m
\u00a3m
Net assets attributable to equity shareholders
3,539.8
3,508.8
Adjustment for:
Revaluation of trading properties
0.6
9.8
Deferred tax on revaluation surplus
1
1.8
1.4
Fair value of derivative financial instruments
(0.6)
(2.9)
Fair value adjustment to secured bonds
3.4
5.0
EPRA Net Tangible Assets
3,545.0
3,522.1
Per share measure \u2013 diluted
3,149p
3,129p
Net assets attributable to equity shareholders
3,539.8
3,508.8
Adjustment for:
Revaluation of trading properties
0.6
9.8
Fair value adjustment to secured bonds
3.4
5.0
Mark-to-market of fixed rate debt
133.6
133.4
Unamortised issue and arrangement costs
(6.0)
(7.4)
EPRA Net Disposal Value
3,671.4
3,649.6
Per share measure \u2013 diluted
3,261p
3,243p
Net assets attributable to equity shareholders
3,539.8
3,508.8
Adjustment for:
Revaluation of trading properties
0.6
9.8
Deferred tax on revaluation surplus
3.5
2.8
Fair value of derivative financial instruments
(0.6)
(2.9)
Fair value adjustment to secured bonds
3.4
5.0
Purchasers\u2019 costs
2
342.8
329.4
EPRA Net Reinstatement Value
3,889.5
3,852.9
Per share measure \u2013 diluted
3,455p
3,423p
\n
1
Only 50% of the deferred tax on the revaluation surplus is excluded.
\n
2
Includes Stamp Duty Land Tax. Total costs assumed to be 6.8% of the portfolio\u2019s fair value.
Cost ratio
\n\n \n
2024
2023
\u00a3m
\u00a3m
Administrative expenses
41.1
39.1
Write-off/impairment of receivables
0.2
2.0
Other property costs
16.7
15.2
Dilapidation receipts
(0.8)
(0.1)
Net service charge costs
6.6
6.6
Service charge costs recovered through rents but not separately invoiced
(1.3)
(0.9)
Management fees received less estimated profit element
(5.1)
(4.5)
Share of joint ventures\u2019 expenses
0.3
0.4
EPRA costs (including direct vacancy costs) (A)
57.7
57.8
Direct vacancy costs
(11.3)
(10.4)
EPRA costs (excluding direct vacancy costs) (B)
46.4
47.4
Gross rental income
214.8
212.8
Ground rent
(1.5)
(2.2)
Service charge components of rental income
(1.3)
(0.9)
Share of joint ventures\u2019 rental income less ground rent
2.0
2.4
Adjusted gross rental income (C)
214.0
212.1
EPRA cost ratio (including direct vacancy costs) (A/C)
27.0%
27.3%
EPRA cost ratio (excluding direct vacancy costs) (B/C)
21.7%
22.3%
\n
In addition to the two EPRA cost ratios, the Group has calculated an additional cost ratio based on its property portfolio fair value
\n
to recognise the \u2018total return\u2019 nature of the Group\u2019s activities.
\n\n \n
2024
2023
\u00a3m
\u00a3m
Property portfolio at fair value (D)
5,041.1
4,844.7
Portfolio cost ratio (A/D)
1.1%
1.2%
Net Initial Yield and \u2018topped-up\u2019 Net Initial Yield
\n\n \n
2024
2023
\u00a3m
\u00a3m
Property portfolio \u2013 wholly owned
5,041.1
4,844.7
Investment property \u2013 share of joint ventures
Share of joint ventures
\u2013
33.8
Less non-EPRA properties
1
(696.0)
(488.3)
Completed property portfolio
4,345.1
4,390.2
Allowance for:
Estimated purchasers\u2019 costs
295.5
298.5
EPRA property portfolio valuation (A)
4,640.6
4,688.7
Annualised contracted rental income, net of ground rents
204.9
204.9
Share of joint ventures
\u2013
2.5
Less non-EPRA properties
1
(0.7)
(0.7)
Add outstanding rent reviews
0.7
0.1
Less estimate of non-recoverable expenses
(5.6)
(6.6)
(5.6)
(7.2)
Current income net of non-recoverable expenses (B)
198.7
200.2
Contractual rental increases across the portfolio
42.2
44.6
Contractual rental increases across the EPRA portfolio
42.2
44.6
\u2018Topped-up\u2019 net annualised rent (C)
240.9
244.8
EPRA net initial yield (B/A)
4.3%
4.3%
EPRA \u2018topped-up\u2019 net initial yield (C/A)
5.2%
5.2%
\n
Vacancy rate
\n\n \n
2024
2023
\u00a3m
\u00a3m
Annualised estimated rental value of vacant premises
8.4
10.8
Portfolio estimated rental value
324.3
314.0
Less non-EPRA properties
1
(49.7)
(46.0)
274.6
268.0
EPRA vacancy rate
3.1%
4.0%
\n
1
In accordance with EPRA best practice guidelines, deductions are made for development properties, land and long-dated reversions.
Like-for-like rental growth
\n \n
Like-for-like
Development
Acquisitions
portfolio
property
and disposals
Total
\u00a3m
\u00a3m
\u00a3m
\u00a3m
2024
Gross rental income
199.6
12.5
2.7
214.8
Other property expenditure
(18.8)
(5.9)
(0.1)
(24.8)
Write-off/impairment of receivables
(0.4)
0.2
\u2013
(0.2)
Impairment included in prepayments (see note 20)
\u2013
\u2013
(0.2)
(0.2)
Net rental income
180.4
6.8
2.4
189.6
Other
7.8
0.9
\u2013
8.7
Net property and other income
188.2
7.7
2.4
198.3
2023
Gross rental income
194.6
13.6
4.6
212.8
Other property expenditure
(20.7)
(3.1)
(0.2)
(24.0)
Write-off/impairment of receivables
(0.9)
(1.1)
\u2013
(2.0)
Impairment included in prepayments (see note 20)
\u2013
\u2013
(0.6)
(0.6)
Net rental income
173.0
9.4
3.8
186.2
Other
4.7
(0.4)
\u2013
4.3
Net property and other income
177.7
9.0
3.8
190.5
Change based on:
Gross rental income
2.6%
0.9%
Net rental income
4.3%
1.8%
Net property and other income
5.9%
4.1%
Property-related capital expenditure
\n \n
2024
2023
Group
Group
(excl. Joint
Joint ventures
Total
(excl. Joint
Joint ventures
Total
ventures)
(50% share)
Group
ventures)
(50% share)
Group
\u00a3m
\u00a3m
\u00a3m
\u00a3m
\u00a3m
\u00a3m
Acquisitions
47.0
\u2013
47.0
3.8
\u2013
3.8
Development
136.2
3.3
139.5
127.3
0.6
127.9
Investment properties
Incremental lettable space
2.5
\u2013
2.5
\u2013
\u2013
\u2013
No incremental lettable space
45.3
\u2013
45.3
25.0
\u2013
25.0
Tenant incentives
0.3
\u2013
0.3
\u2013
\u2013
\u2013
Capitalised interest
10.7
\u2013
10.7
6.3
\u2013
6.3
Total capital expenditure
242.0
3.3
245.3
162.4
0.6
163.0
Conversion from accrual to cash basis
(12.1)
\u2013
(12.1)
12.1
0.1
12.2
Total capital expenditure on a cash basis
229.9
3.3
233.2
174.5
0.7
175.2
", "dimensions": { "concept": "dln:DisclosureOfEpraPerformanceMeasuresAndCoreRecommendationsExplanatoryTextBlock", "language": "en", "entity": "scheme:213800BXKQ9KZNUR1M61", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "TagsThatMustBeAppliedIfCorrespondingInformationIsPresentInAReport_Label_00252": { "value": "38\u2002EPRA performance measures and core recommendations
Unaudited unless stated otherwise.
As with most other UK property companies and real estate investment trusts (REITs), the Group presents many of its financial
measures in accordance with the guidance criteria issued by the European Public Real Estate Association (EPRA). These measures,
which provide consistency across the sector, are all derived from the IFRS figures.
Summary table of EPRA performance measures
\n \n
2024
2023
Pence
Pence
per share
per share
p
p
EPRA earnings (audited)
\u00a3119.5m
106.45
\u00a3114.5m
101.97
EPRA Net Tangible Assets (audited)
\u00a33,545.0m
3,149
\u00a33,522.1m
3,129
EPRA Net Disposal Value (audited)
\u00a33,671.4m
3,261
\u00a33,649.6m
3,243
EPRA Net Reinstatement Value (audited)
\u00a33,889.5m
3,455
\u00a33,852.9m
3,423
EPRA Cost Ratio (including direct vacancy costs)
27.0%
27.3%
EPRA Cost Ratio (excluding direct vacancy costs)
21.7%
22.3%
EPRA Net Initial Yield
4.3%
4.3%
EPRA \u2018topped-up\u2019 Net Initial Yield
5.2%
5.2%
EPRA Vacancy Rate
3.1%
4.0%
The definition of these measures can be found on pages 283 and 284.
Number of shares
\n \n
Earnings per share
Net asset value per share
Weighted average
At 31 December
2024
2023
2024
2023
Audited
Audited
Audited
Audited
\u2018000
\u2018000
\u2018000
\u2018000
For use in basic measures
112,258
112,291
112,258
112,291
Dilutive effect of share-based payments
342
243
323
257
For use in diluted measures
112,600
112,534
112,581
112,548
The \u00a3175m unsecured convertible bonds 2025 (\u20181.5% convertible bonds 2025\u2019) have an initial conversion price set at \u00a344.96.
The Group recognises the effect of conversion of the bonds if they are both dilutive and, based on the share price, likely to convert.
For the year ended 31 December 2023 and 2024, the Group did not recognise the dilutive impact of the conversion of the 2025
bonds on its earnings per share (EPS) or net asset value (NAV) per share metrics as, based on the share price at the end of each
year, the bonds were not expected to convert.
The following tables set out reconciliations between the IFRS and EPRA earnings for the year and earnings per share.
The adjustments made between the figures are as follows:
A \u2013 Disposal of investment and trading property (including the Group\u2019s share in joint ventures), and associated tax.
B \u2013
Revaluation movement on investment property, in joint ventures and other interests, write-down of trading property and
associated deferred tax.
C \u2013Fair value movement and termination income relating to derivative financial instruments.
Earnings and earnings per share (audited)
\n \n
Adjustments
EPRA
IFRS
A
B
C
basis
\u00a3m
\u00a3m
\u00a3m
\u00a3m
\u00a3m
Year ended 31 December 2024
Net property and other income
198.3
\u2013
0.2
\u2013
198.5
Total administrative expenses
(41.1)
\u2013
\u2013
\u2013
(41.1)
Revaluation deficit
(2.7)
\u2013
2.7
\u2013
\u2013
Profit on disposal of investments
1.9
(1.9)
\u2013
\u2013
\u2013
Net finance costs
(39.6)
\u2013
\u2013
\u2013
(39.6)
Movement in fair value of derivative financial instruments
(2.3)
\u2013
\u2013
2.3
\u2013
Share of results of joint ventures
1.5
\u2013
0.3
\u2013
1.8
Profit before tax
116.0
(1.9)
3.2
2.3
119.6
Tax charge
(0.1)
\u2013
\u2013
\u2013
(0.1)
Profit for the year
115.9
(1.9)
3.2
2.3
119.5
Earnings attributable to equity shareholders
115.9
(1.9)
3.2
2.3
119.5
Earnings per share
103.24p
106.45p
Diluted earnings per share
102.93p
106.13p
Year ended 31 December 2023
Net property and other income
190.5
\u2013
1.0
\u2013
191.5
Total administrative expenses
(39.1)
\u2013
\u2013
\u2013
(39.1)
Revaluation deficit
(581.5)
\u2013
581.5
\u2013
\u2013
Profit on disposal of investments
1.2
(1.2)
\u2013
\u2013
\u2013
Net finance costs
(39.5)
\u2013
\u2013
\u2013
(39.5)
Movement in fair value of derivative financial instruments
(2.1)
\u2013
\u2013
2.1
\u2013
Financial derivative termination income
1.8
\u2013
\u2013
(1.8)
\u2013
Share of results of joint ventures
(7.2)
\u2013
9.2
\u2013
2.0
Loss before tax
(475.9)
(1.2)
591.7
0.3
114.9
Tax charge
(0.5)
\u2013
0.1
\u2013
(0.4)
(Loss)/earnings attributable to equity shareholders
(476.4)
(1.2)
591.8
0.3
114.5
(Loss)/earnings per share
(424.25p)
101.97p
Diluted (loss)/earnings per share
(424.25p)
101.75p
The diluted loss per share for the year to 31 December 2023 was restricted to a loss of 424.25p per share, as the loss per share
cannot be reduced by dilution in accordance with IAS 33 Earnings per Share.", "dimensions": { "concept": "ifrs-full:DisclosureOfEarningsPerShareExplanatory", "language": "en", "entity": "scheme:213800BXKQ9KZNUR1M61", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "TagsThatMustBeAppliedIfCorrespondingInformationIsPresentInAReport_Label_00253": { "value": "39\u2002Total return
2024
2023
p
p
EPRA Net Tangible Assets on a diluted basis
At end of year
3,149
3,129
At start of year
(3,129)
(3,632)
Increase/(decrease)
20
(503)
Dividend per share
80
79
Increase/(decrease) including dividend
100
(424)
Total return
3.2%
(11.7%)
", "dimensions": { "concept": "dln:DisclosureOfTotalReturnTextBlock", "language": "en", "entity": "scheme:213800BXKQ9KZNUR1M61", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "TagsThatMustBeAppliedIfCorrespondingInformationIsPresentInAReport_Label_00254": { "value": "40\u2002Gearing and interest cover
NAV gearing
2024
2023
\u00a3m
\u00a3m
Net debt
1,482.7
1,356.8
Net assets
3,539.8
3,508.8
NAV gearing
41.9%
38.7%
Loan-to-value ratio
2024
2023
\u00a3m
\u00a3m
Group loan-to-value ratio
Net debt
1,482.7
1,356.8
Fair value adjustment of secured bonds
(3.4)
(5.0)
Unamortised discount on unsecured green bonds
1.3
1.5
Unamortised issue and arrangement costs
6.0
7.4
Leasehold liabilities
(34.6)
(34.6)
Drawn debt net of cash (A)
1,452.0
1,326.1
Fair value of property portfolio (B)
5,041.1
4,844.7
Loan-to-value ratio (A/B)
28.8%
27.4%
Proportionally consolidated loan-to-value ratio
Drawn debt net of cash (A)
1,452.0
1,326.1
Share of cash and cash equivalents in joint ventures
\u2013
(2.2)
Drawn debt net of cash including Group\u2019s share of joint ventures (C)
1,452.0
1,323.9
Fair value of property portfolio (B)
5,041.1
4,844.7
Share of fair value of property portfolio of joint ventures
\u2013
33.8
Fair value of property portfolio including Group\u2019s share of joint ventures (D)
5,041.1
4,878.5
Proportionally consolidated loan-to-value ratio (C/D)
28.8%
27.1%
EPRA loan-to-value ratio
Drawn debt net of cash including Group\u2019s share of joint ventures (C)
1,452.0
1,323.9
Debt with equity characteristics
(20.0)
(20.0)
Adjustment for hybrid debt instruments
0.6
2.0
Net payables adjustment
72.7
57.2
Adjusted debt (E)
1,505.3
1,363.1
Fair value of property portfolio including Group\u2019s share of joint ventures (D)
5,041.1
4,878.5
EPRA loan-to-value ratio (E/D)
29.9%
27.9%
Net interest cover ratio
\n \n
2024
2023
\u00a3m
\u00a3m
Group net interest cover ratio
Net property and other income
198.3
190.5
Adjustments for:
Other income
(5.1)
(4.5)
Other property income
(0.1)
\u2013
Surrender premiums received
(2.7)
(0.1)
Write-down of trading property
\u2013
0.4
Adjusted net property income
190.4
186.3
Finance income
(0.3)
(0.9)
Finance costs
39.9
40.4
39.6
39.5
Adjustments for:
Finance income
0.3
0.9
Other finance costs
(0.4)
(0.3)
Amortisation of fair value adjustment to secured bonds
1.6
1.5
Amortisation of issue and arrangement costs
(2.6)
(2.6)
Finance costs capitalised
11.2
6.5
Net interest payable
49.7
45.5
Group net interest cover ratio
383%
409%
Proportionally consolidated net interest cover ratio
Adjusted net property income
190.4
186.3
Share of joint ventures\u2019 net property income
1.9
2.2
Adjusted net property income including share of joint ventures
192.3
188.5
Net interest payable
49.7
45.5
Proportionally consolidated net interest cover ratio
387%
414%
Net debt to EBITDA
\n \n
2024
2023
\u00a3m
\u00a3m
Net debt (A)
1,482.7
1,356.8
Profit/(loss) for the year
115.9
(476.4)
Add back: tax charge
0.1
0.5
Profit/(loss) before tax
116.0
(475.9)
Add back: net finance charges
39.6
39.5
Add back: movement in fair value of derivative financial instruments
2.3
2.1
Add back: financial derivative termination income
\u2013
(1.8)
157.9
(436.1)
Add back: profit on disposal of investment property
(1.9)
(1.2)
Add back: revaluation deficit
2.7
581.5
Add back: share of joint venture revaluation movement/impairment (note 9)
0.3
9.2
Add back: depreciation
1.0
1.1
EBITDA (B)
160.0
154.5
Net debt to EBITDA (A/B)
9.3
8.8
", "dimensions": { "concept": "dln:DisclosureOfGearingAndInterestCover", "language": "en", "entity": "scheme:213800BXKQ9KZNUR1M61", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "TagsThatMustBeAppliedIfCorrespondingInformationIsPresentInAReport_Label_00255": { "value": "41\u2002Material accounting policies
Basis of consolidation
The Group financial statements incorporate the financial statements of Derwent London plc and all of its subsidiaries, together
with the Group\u2019s share of the results of its joint ventures.
Subsidiaries are all entities (including structured entities) over which the Group has control. The Group controls an entity when
the Group is exposed to, or has rights to, variable returns from its involvement with the entity and has the ability to affect those
returns through its power over the entity. Subsidiaries are consolidated from the date on which control is transferred to the Group.
They are no longer consolidated from the date that control ceases.
Joint ventures are those entities over whose activities the Group has joint control, established by contractual agreement.
Interests in joint ventures are accounted for using the equity method of accounting as permitted by IFRS 11 Joint Arrangements,
and following the procedures for this method set out in IAS 28 Investments in Associates and Joint Ventures. The equity method
requires the Group\u2019s share of the joint venture\u2019s post-tax profit or loss for the year to be presented separately in the income
statement and the Group\u2019s share of the joint venture\u2019s net assets to be presented separately in the balance sheet.
Intra-group balances and any unrealised gains and losses arising from intra-group transactions are eliminated in preparing the
consolidated financial statements. Unrealised gains arising from transactions with joint ventures are eliminated to the extent of
the Group\u2019s interest in the joint venture concerned. Unrealised losses are eliminated in the same way, but only to the extent that
there is no evidence of impairment.
Gross property income
Gross property income arises from two main sources:
(i)
Rental income
\u2013 This arises from operating leases granted to tenants. An operating lease is a lease other than a finance lease.
A finance lease is one whereby substantially all the risks and rewards of ownership are passed to the lessee.
Rental income is recognised in the Group income statement on a straight-line basis over the term of the lease in accordance
with IFRS 16 Leases. This includes the effect of lease incentives given to tenants, which are normally in the form of rent-free or
half rent periods or capital contributions in lieu of rent-free periods, and the effect of contracted rent uplifts and payments
received from tenants on the grant of leases. Where the total consideration due under a lease is modified, the revised total
amount due under the lease is recognised on a straight-line basis over the remaining term of the lease. Where rent demanded
is forgiven for periods that have passed, these amounts are assessed under IFRS 9 and written off. Where rent is forgiven for
future periods, this is considered a lease modification and spread on a straight-line basis over the remaining lease term in
accordance with IFRS 16.
For income from property leased out under a finance lease, a lease receivable asset is recognised in the balance sheet at an
amount equal to the net investment in the lease, as defined in IFRS 16 Leases. Minimum lease payments receivable, again
defined in IFRS 16, are apportioned between finance income and the reduction of the outstanding lease receivable so as
to produce a constant periodic rate of return on the remaining net investment in the lease. Contingent rents, being the
difference between the rent currently receivable and the minimum lease payments when the net investment in the lease was
originally calculated, are recognised in property income in the years in which they are receivable.
(ii)
Surrender premiums
\u2013 Payments received from tenants to surrender their lease obligations are recognised immediately in the
Group income statement. In circumstances where surrender payments received relate to specific periods, they are deferred
and recognised in those periods.
Other income
Other income consists of commissions, fees charged to tenants for the management of certain Group properties and administration
services provided to joint ventures. Other income is recognised in the Group income statement in accordance with the delivery of
services as required by IFRS 15 Revenue from Contracts with Customers.
Service charges
Service charge income relates to expenditure that is directly recoverable from tenants, excluding management fees which are
included in \u2018other income\u2019. Service charge income is recognised as revenue in the period to which it relates as required by IFRS 15
Revenue from Contracts with Customers.
Expenses
(i)
Lease payments
\u2013 For leasehold investment properties held, a right of use asset is recognised at commencement date of
the lease within the investment property carrying value. The initial cost includes the lease liabilities recognised, initial direct
costs incurred and any lease payments made at commencement adjusted for any lease incentives received. In addition, a
corresponding lease liability is also included on the balance sheet. Minimum lease payments are apportioned between the
finance charge and the reduction of the outstanding liability so as to produce a constant periodic rate of interest on the
remaining lease liability.
(ii)
Dilapidations
\u2013 Dilapidations monies received from tenants in respect of their lease obligations are recognised immediately
in the Group income statement, unless they relate to future capital expenditure. In the latter case, where the costs are
considered to be recoverable they are capitalised as part of the carrying value of the property.
(iii)
Reverse surrender premiums
\u2013 Payments made to tenants to surrender their lease obligations are charged directly to the
Group income statement unless the payment is to enable the probable redevelopment of a property. In the latter case, where
the costs are considered to be recoverable, they are capitalised as part of the carrying value of the property.
(iv)
Other property expenditure
\u2013 Vacant property costs and other property costs are expensed in the year to which they relate,
with the exception of the initial direct costs incurred in negotiating and arranging leases which are, in accordance with IFRS
16 Leases, added to the carrying value of the relevant property and recognised as an expense over the lease term on the same
basis as the lease income.
Employee bene\ufb01ts
(i) Share-based remuneration
Equity-settled \u2013 The Company operates a long-term incentive plan and share option scheme. The fair value of the conditional
awards of shares granted under the long-term incentive plan and the options granted under the share option scheme are
determined at the date of grant. This fair value is then expensed on a straight-line basis over the vesting period, based on
an estimate of the number of shares that will eventually vest. At each reporting date, the non-market based performance
criteria of the long-term incentive plan are reconsidered and the expense is revised as necessary. In respect of the share
option scheme, the fair value of the options granted is calculated using a binomial lattice pricing model.
(ii) Pensions
Defined contribution plans \u2013 Obligations for contributions to defined contribution pension plans are recognised as an
expense in the Group income statement in the period to which they relate.
Defined benefit plans \u2013 The Group\u2019s net obligation in respect of defined benefit post-employment plans, including pension
plans, is calculated separately for each plan by estimating the amount of future benefit that employees have earned in
return for their service in the current and prior periods. That benefit is discounted to determine its present value, and the fair
value of any plan assets is deducted. The discount rate is the yield at the balance sheet date on AA credit rated bonds that
have maturity dates approximating the terms of the Group\u2019s obligations. The calculation is performed by a qualified actuary
using the projected unit credit method. Any actuarial gain or loss in the period is recognised in full in the Group statement of
comprehensive income.
Business combinations
Business combinations are accounted for under the acquisition method. Any excess of the purchase price of business combinations
over the fair value of the assets, liabilities and contingent liabilities acquired and resulting deferred tax thereon is recognised as
goodwill. Any discount is credited to the Group income statement in the period of acquisition. Goodwill is recognised as an asset
and reviewed for impairment. Any impairment is recognised immediately in the Group income statement and is not subsequently
reversed. Any residual goodwill is reviewed annually for impairment.
Investment property
(i)
Valuation
\u2013 Investment properties are those that are held either to earn rental income or for capital appreciation or both,
including those that are undergoing redevelopment. Investment properties are measured initially at cost, including related
transaction costs. After initial recognition, they are carried in the Group balance sheet at fair value adjusted for the carrying
value of leasehold interests and lease incentive and letting cost receivables. Fair value is the price that would be received to
sell an investment property in an orderly transaction between market participants at the measurement date. The valuation is
undertaken by independent valuers who hold recognised and relevant professional qualifications and have recent experience
in the locations and categories of properties being valued.
Surpluses or deficits resulting from changes in the fair value of investment property are reported in the Group income
statement in the year in which they arise.
The Group leases out investment properties under operating leases with rents generally payable monthly or quarterly. The Group
is exposed to changes in the residual value of properties at the end of current lease agreements, and mitigates this risk by
actively managing its tenant mix in order to maximise the weighted average lease term, minimise vacancies across the portfolio
and maximise exposure to tenants with strong financial characteristics. The Group also grants lease incentives to encourage
high quality tenants to remain in properties for longer lease terms.
(ii)
Capital expenditure
\u2013 Capital expenditure, being costs directly attributable to the redevelopment or refurbishment of
an investment property, up to the point of it being completed for its intended use, are capitalised in the carrying value of
that property. In addition, in accordance with IAS 23 Borrowing Costs, finance costs that are directly attributable to such
expenditure are capitalised using the Group\u2019s average cost of borrowings during each quarter.
Certain internal staff and associated costs directly attributable to the major development and refurbishment schemes are
also capitalised based on the proportion of time spent on the relevant scheme. These costs are capitalised from the date the
Group determines it is probable that the development will progress until the date of practical completion.
(iii)
Disposal
\u2013 Properties are treated as disposed when the Group transfers the significant risks and rewards of ownership to
the buyer. Generally this would occur on completion of contract. On disposal, any gain or loss is calculated as the difference
between the net disposal proceeds and the carrying value at the last year end plus subsequent capitalised expenditure during
the year. Where the net disposal proceeds have yet to be finalised at the balance sheet date, the proceeds recognised reflect
the Directors\u2019 best estimate of the amounts expected to be received. Any contingent consideration is recognised at fair value
at the balance sheet date. The fair value is calculated using future discounted cash flows based on expected outcomes with
estimated probabilities taking account of the risk and uncertainty of each input.
(iv)
Development
\u2013 When the Group begins to redevelop an existing investment property for continued use as an investment
property or acquires a property with the subsequent intention of developing as an investment property, the property is classified
as an investment property and is accounted for as such. When the Group begins to redevelop an existing investment property
with a view to sale, the property is transferred to trading properties and held as a current asset. The property is remeasured
to fair value as at the date of transfer with any gain or loss being taken to the income statement. The remeasured amount
becomes the deemed cost at which the property is then carried in trading properties.
Trading property and trading stock
Trading property relates to property being developed for sale. Trading stock relates to development expenditure which is due to
be disposed of to third parties under development agreements. In accordance with IAS 2 Inventories, trading property and trading
stock are held at the lower of cost and net realisable value. Proceeds from sale are recognised in the Group\u2019s income statement
when title has been transferred to the purchaser as required by IFRS 15 Revenue from Contracts with Customers.
Prepayment (non-current)
Acquisition and capital expenditure costs incurred in advance of ownership of a property are initially included as a prepayment
in the Group\u2019s balance sheet and measured at cost. This asset is then tested for impairment under IAS 36 Impairment of Assets.
On completion of the purchase, the asset will be transferred to either investment property or trading property as appropriate.
Property, plant and equipment
(i)
Owner-occupied property
\u2013 Owner-occupied property is stated at its revalued amount, which is determined in the same
manner as investment property. It is depreciated over its remaining useful life (40 years) with the depreciation included in
administrative expenses. On revaluation, any accumulated depreciation is eliminated against the gross carrying amount of
the property concerned, and the net amount restated to the revalued amount. Subsequent depreciation charges are adjusted
based on the revalued amount for each property. Any difference between the depreciation charge on the revalued amount
and that which would have been charged under historic cost is transferred, net of any related deferred tax, between the
revaluation reserve and retained earnings as the property is utilised. Surpluses or deficits resulting from changes in the fair
value are reported in the Group statement of comprehensive income. The land element of the property is not depreciated.
(ii)
Artwork
\u2013 Artwork is stated at revalued amounts on the basis of open market value.
(iii)
Other
\u2013 Plant and equipment is depreciated at a rate of between 10% and 25% per annum which is calculated to write off the
cost, less estimated residual value of the individual assets, over their expected useful lives.
Investments
Investments in joint ventures, being those entities over whose activities the Group has joint control, as established by contractual
agreement, are included in the Group\u2019s balance sheet at cost together with the Group\u2019s share of post-acquisition reserves, on a
net equity basis. Investments in subsidiaries and joint ventures are included in the Company\u2019s balance sheet at the lower of cost
and recoverable amount. Any impairment is recognised immediately in the income statement.
Non-current assets held for sale
Non-current assets are classified as held for sale if their carrying value will be recovered through a sale transaction rather than
through continuing use. This condition is regarded as met if the sale is highly probable, the asset is available for immediate sale
in its present condition, being actively marketed and management is committed to the sale which should be expected to qualify
for recognition as a completed sale within one year from the date of classification.
In accordance with IFRS 5, non-current assets, including related liabilities, classified as held for sale are measured at the lower of
carrying value and fair value less costs of disposal.
Financial assets
(i)
Cash and cash equivalents
\u2013 Cash at bank comprises cash in hand and on-demand deposits. Cash at bank comprises
short-term, highly liquid investments that are readily convertible to known amounts of cash and which are subject to an
insignificant risk of changes in value.
Tenant rent deposits are subject to contractual restrictions and meet the definition of \u2018cash and cash equivalents\u2019 under
IAS 7 and are recognised as restricted cash.
Cash collected on behalf of tenants to fund service charges of properties in the portfolio meet the definition of \u2018cash and
cash equivalents\u2019 under IAS 7 and are recognised as restricted cash.
(ii)
Trade receivables
\u2013 Trade receivables are recognised and carried at the original transaction value. This balance is subject
to impairment testing under IFRS 9 using the forward-looking, simplified approach to the expected credit loss model.
Lease incentive receivables
In accordance with IFRS 16, rental income is recognised in the Group income statement on a straight-line basis over the term of
the lease. This includes the effect of lease incentives given to tenants (in the form of rent-free periods, half rent periods or capital
contributions in lieu of rent-free periods) and any contracted rental uplifts granted at lease inception. The result is included within
accrued income in the balance sheet. This balance is subject to impairment testing under IAS 36.
Financial liabilities
(i)
Bank loans and fixed rate loans
\u2013 Bank loans and fixed rate loans are included as financial liabilities on the balance sheets
at amortised cost. Interest payable is expensed as a finance cost in the year to which it relates.
Where there has been a change to the terms of a debt agreement, such as the applicable interest rate or benchmark
rate, this is assessed under IFRS 9 using quantitative and qualitative assessments to determine if the debt modification
is considered substantial enough to be deemed an extinguishment. It is common for loan facilities agreements to include
extension options which extend the loan maturity out by one year. When these options are exercised as per the agreement,
with no changes to other terms, this is deemed to be a modification of the loan and not an extinguishment.
(ii)
Non-convertible bonds
\u2013 These are included as a financial liability on the balance sheet net of the unamortised discount
and costs on issue. The difference between this carrying value and the redemption value is recognised in the Group income
statement over the life of the bond on an effective interest basis. Interest payable to bond holders is expensed in the year to
which it relates.
(iii)
Convertible bonds
\u2013 The fair value of the liability component of a convertible bond is determined using the market
interest rate for an equivalent non-convertible bond. This amount is recorded as a liability on an amortised cost basis until
extinguished on conversion or maturity of the bonds. The remainder of the proceeds is allocated to the conversion option.
This is recognised and included in shareholders\u2019 equity, net of income tax effects and is not subsequently re-measured. Issue
costs are apportioned between the liability and the equity components of the convertible bonds based on their carrying
amounts at the date of issue. The portion relating to the equity component is charged directly against equity. The issue costs
apportioned to the liability are amortised over the life of the bond. The issue costs apportioned to equity are not amortised.
(iv)
Finance lease liabilities
\u2013 Finance lease liabilities arise for those investment properties held under a leasehold interest and
accounted for as investment property. The liability is initially calculated as the present value of the minimum lease payments,
reducing in subsequent years by the apportionment of payments to the lessor, as described above under the heading for lease
payments.
(v)
Interest rate derivatives
\u2013 The Group uses derivative financial instruments to manage the interest rate risk associated with
the financing of the Group\u2019s business. No trading in financial instruments is undertaken.
At each reporting date, these interest rate derivatives are measured at fair value, being the estimated amount that the Group
would receive or pay to terminate the agreement at the balance sheet date, taking into account current interest rates and
the current credit rating of the counterparties. The gain or loss at each fair value remeasurement is recognised in the Group
income statement because the Group does not apply hedge accounting.
(vi)
Trade payables
\u2013 Trade payables are recognised and carried at the original transaction value.
Deferred tax
Deferred tax is the tax expected to be payable or recoverable on differences between the carrying amounts of assets and
liabilities in the financial statements and the corresponding tax bases used in the tax computations, and is accounted for using
the balance sheet liability method. Deferred tax liabilities are generally recognised for all taxable temporary differences and
deferred tax assets are recognised to the extent that it is probable that taxable profits will be available against which deductible
temporary differences can be utilised. In respect of the deferred tax on the revaluation surplus, this is calculated on the basis of
the chargeable gains that would crystallise on the sale of the investment portfolio as at the reporting date. The calculation takes
account of available indexation on the historical cost of the properties.
Deferred tax is calculated at the tax rates that are expected to apply in the period, based on Acts substantially enacted at the
year end, when the liability is settled or the asset is realised. Deferred tax is included in profit or loss for the period, except when
it relates to items recognised in other comprehensive income or directly in equity.
Cash \ufb02ow
Transactions in the cash flow statement under operating, investing and financing activities have been prepared net of value
added tax in order to reflect the true cash inflows and outflows of the Group.
Dividends
Dividends payable on the ordinary share capital are recognised in the year in which they are declared.", "dimensions": { "concept": "ifrs-full:DisclosureOfMaterialAccountingPolicyInformationExplanatory", "language": "en", "entity": "scheme:213800BXKQ9KZNUR1M61", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "TagsThatMustBeAppliedIfCorrespondingInformationIsPresentInAReport_Label_00256": { "value": "Basis of consolidation
The Group financial statements incorporate the financial statements of Derwent London plc and all of its subsidiaries, together
with the Group\u2019s share of the results of its joint ventures.
Subsidiaries are all entities (including structured entities) over which the Group has control. The Group controls an entity when
the Group is exposed to, or has rights to, variable returns from its involvement with the entity and has the ability to affect those
returns through its power over the entity. Subsidiaries are consolidated from the date on which control is transferred to the Group.
They are no longer consolidated from the date that control ceases.
Joint ventures are those entities over whose activities the Group has joint control, established by contractual agreement.
Interests in joint ventures are accounted for using the equity method of accounting as permitted by IFRS 11 Joint Arrangements,
and following the procedures for this method set out in IAS 28 Investments in Associates and Joint Ventures. The equity method
requires the Group\u2019s share of the joint venture\u2019s post-tax profit or loss for the year to be presented separately in the income
statement and the Group\u2019s share of the joint venture\u2019s net assets to be presented separately in the balance sheet.
Intra-group balances and any unrealised gains and losses arising from intra-group transactions are eliminated in preparing the
consolidated financial statements. Unrealised gains arising from transactions with joint ventures are eliminated to the extent of
the Group\u2019s interest in the joint venture concerned. Unrealised losses are eliminated in the same way, but only to the extent that
there is no evidence of impairment.", "dimensions": { "concept": "ifrs-full:DisclosureOfBasisOfConsolidationExplanatory", "language": "en", "entity": "scheme:213800BXKQ9KZNUR1M61", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "TagsThatMustBeAppliedIfCorrespondingInformationIsPresentInAReport_Label_00257": { "value": "Gross property income
Gross property income arises from two main sources:
(i)
Rental income
\u2013 This arises from operating leases granted to tenants. An operating lease is a lease other than a finance lease.
A finance lease is one whereby substantially all the risks and rewards of ownership are passed to the lessee.
Rental income is recognised in the Group income statement on a straight-line basis over the term of the lease in accordance
with IFRS 16 Leases. This includes the effect of lease incentives given to tenants, which are normally in the form of rent-free or
half rent periods or capital contributions in lieu of rent-free periods, and the effect of contracted rent uplifts and payments
received from tenants on the grant of leases. Where the total consideration due under a lease is modified, the revised total
amount due under the lease is recognised on a straight-line basis over the remaining term of the lease. Where rent demanded
is forgiven for periods that have passed, these amounts are assessed under IFRS 9 and written off. Where rent is forgiven for
future periods, this is considered a lease modification and spread on a straight-line basis over the remaining lease term in
accordance with IFRS 16.
For income from property leased out under a finance lease, a lease receivable asset is recognised in the balance sheet at an
amount equal to the net investment in the lease, as defined in IFRS 16 Leases. Minimum lease payments receivable, again
defined in IFRS 16, are apportioned between finance income and the reduction of the outstanding lease receivable so as
to produce a constant periodic rate of return on the remaining net investment in the lease. Contingent rents, being the
difference between the rent currently receivable and the minimum lease payments when the net investment in the lease was
originally calculated, are recognised in property income in the years in which they are receivable.
(ii)
Surrender premiums
\u2013 Payments received from tenants to surrender their lease obligations are recognised immediately in the
Group income statement. In circumstances where surrender payments received relate to specific periods, they are deferred
and recognised in those periods.
Other income
Other income consists of commissions, fees charged to tenants for the management of certain Group properties and administration
services provided to joint ventures. Other income is recognised in the Group income statement in accordance with the delivery of
services as required by IFRS 15 Revenue from Contracts with Customers.
Service charges
Service charge income relates to expenditure that is directly recoverable from tenants, excluding management fees which are
included in \u2018other income\u2019. Service charge income is recognised as revenue in the period to which it relates as required by IFRS 15
Revenue from Contracts with Customers.", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForRecognitionOfRevenue", "language": "en", "entity": "scheme:213800BXKQ9KZNUR1M61", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "TagsThatMustBeAppliedIfCorrespondingInformationIsPresentInAReport_Label_00258": { "value": "Other income
Other income consists of commissions, fees charged to tenants for the management of certain Group properties and administration
services provided to joint ventures. Other income is recognised in the Group income statement in accordance with the delivery of
services as required by IFRS 15 Revenue from Contracts with Customers.", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForFeeAndCommissionIncomeAndExpenseExplanatory", "language": "en", "entity": "scheme:213800BXKQ9KZNUR1M61", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "TagsThatMustBeAppliedIfCorrespondingInformationIsPresentInAReport_Label_00259": { "value": "Expenses
(i)
Lease payments
\u2013 For leasehold investment properties held, a right of use asset is recognised at commencement date of
the lease within the investment property carrying value. The initial cost includes the lease liabilities recognised, initial direct
costs incurred and any lease payments made at commencement adjusted for any lease incentives received. In addition, a
corresponding lease liability is also included on the balance sheet. Minimum lease payments are apportioned between the
finance charge and the reduction of the outstanding liability so as to produce a constant periodic rate of interest on the
remaining lease liability.
(ii)
Dilapidations
\u2013 Dilapidations monies received from tenants in respect of their lease obligations are recognised immediately
in the Group income statement, unless they relate to future capital expenditure. In the latter case, where the costs are
considered to be recoverable they are capitalised as part of the carrying value of the property.
(iii)
Reverse surrender premiums
\u2013 Payments made to tenants to surrender their lease obligations are charged directly to the
Group income statement unless the payment is to enable the probable redevelopment of a property. In the latter case, where
the costs are considered to be recoverable, they are capitalised as part of the carrying value of the property.
(iv)
Other property expenditure
\u2013 Vacant property costs and other property costs are expensed in the year to which they relate,
with the exception of the initial direct costs incurred in negotiating and arranging leases which are, in accordance with IFRS
16 Leases, added to the carrying value of the relevant property and recognised as an expense over the lease term on the same
basis as the lease income.", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForExpensesExplanatory", "language": "en", "entity": "scheme:213800BXKQ9KZNUR1M61", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "TagsThatMustBeAppliedIfCorrespondingInformationIsPresentInAReport_Label_00260": { "value": "(i)
Lease payments
\u2013 For leasehold investment properties held, a right of use asset is recognised at commencement date of
the lease within the investment property carrying value. The initial cost includes the lease liabilities recognised, initial direct
costs incurred and any lease payments made at commencement adjusted for any lease incentives received. In addition, a
corresponding lease liability is also included on the balance sheet. Minimum lease payments are apportioned between the
finance charge and the reduction of the outstanding liability so as to produce a constant periodic rate of interest on the
remaining lease liability.Lease incentive receivables
In accordance with IFRS 16, rental income is recognised in the Group income statement on a straight-line basis over the term of
the lease. This includes the effect of lease incentives given to tenants (in the form of rent-free periods, half rent periods or capital
contributions in lieu of rent-free periods) and any contracted rental uplifts granted at lease inception. The result is included within
accrued income in the balance sheet. This balance is subject to impairment testing under IAS 36.(iv)
Finance lease liabilities
\u2013 Finance lease liabilities arise for those investment properties held under a leasehold interest and
accounted for as investment property. The liability is initially calculated as the present value of the minimum lease payments,
reducing in subsequent years by the apportionment of payments to the lessor, as described above under the heading for lease
payments.", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForLeasesExplanatory", "language": "en", "entity": "scheme:213800BXKQ9KZNUR1M61", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "TagsThatMustBeAppliedIfCorrespondingInformationIsPresentInAReport_Label_00261": { "value": "Employee bene\ufb01ts
(i) Share-based remuneration
Equity-settled \u2013 The Company operates a long-term incentive plan and share option scheme. The fair value of the conditional
awards of shares granted under the long-term incentive plan and the options granted under the share option scheme are
determined at the date of grant. This fair value is then expensed on a straight-line basis over the vesting period, based on
an estimate of the number of shares that will eventually vest. At each reporting date, the non-market based performance
criteria of the long-term incentive plan are reconsidered and the expense is revised as necessary. In respect of the share
option scheme, the fair value of the options granted is calculated using a binomial lattice pricing model.
(ii) Pensions
Defined contribution plans \u2013 Obligations for contributions to defined contribution pension plans are recognised as an
expense in the Group income statement in the period to which they relate.
Defined benefit plans \u2013 The Group\u2019s net obligation in respect of defined benefit post-employment plans, including pension
plans, is calculated separately for each plan by estimating the amount of future benefit that employees have earned in
return for their service in the current and prior periods. That benefit is discounted to determine its present value, and the fair
value of any plan assets is deducted. The discount rate is the yield at the balance sheet date on AA credit rated bonds that
have maturity dates approximating the terms of the Group\u2019s obligations. The calculation is performed by a qualified actuary
using the projected unit credit method. Any actuarial gain or loss in the period is recognised in full in the Group statement of
comprehensive income.", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForEmployeeBenefitsExplanatory", "language": "en", "entity": "scheme:213800BXKQ9KZNUR1M61", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "TagsThatMustBeAppliedIfCorrespondingInformationIsPresentInAReport_Label_00262": { "value": "(i) Share-based remuneration
Equity-settled \u2013 The Company operates a long-term incentive plan and share option scheme. The fair value of the conditional
awards of shares granted under the long-term incentive plan and the options granted under the share option scheme are
determined at the date of grant. This fair value is then expensed on a straight-line basis over the vesting period, based on
an estimate of the number of shares that will eventually vest. At each reporting date, the non-market based performance
criteria of the long-term incentive plan are reconsidered and the expense is revised as necessary. In respect of the share
option scheme, the fair value of the options granted is calculated using a binomial lattice pricing model.", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForSharebasedPaymentTransactionsExplanatory", "language": "en", "entity": "scheme:213800BXKQ9KZNUR1M61", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "TagsThatMustBeAppliedIfCorrespondingInformationIsPresentInAReport_Label_00275": { "value": "Business combinations
Business combinations are accounted for under the acquisition method. Any excess of the purchase price of business combinations
over the fair value of the assets, liabilities and contingent liabilities acquired and resulting deferred tax thereon is recognised as
goodwill. Any discount is credited to the Group income statement in the period of acquisition. Goodwill is recognised as an asset
and reviewed for impairment. Any impairment is recognised immediately in the Group income statement and is not subsequently
reversed. Any residual goodwill is reviewed annually for impairment.", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForBusinessCombinationsAndGoodwillExplanatory", "language": "en", "entity": "scheme:213800BXKQ9KZNUR1M61", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "TagsThatMustBeAppliedIfCorrespondingInformationIsPresentInAReport_Label_00276": { "value": "Business combinations
Business combinations are accounted for under the acquisition method. Any excess of the purchase price of business combinations
over the fair value of the assets, liabilities and contingent liabilities acquired and resulting deferred tax thereon is recognised as
goodwill. Any discount is credited to the Group income statement in the period of acquisition. Goodwill is recognised as an asset
and reviewed for impairment. Any impairment is recognised immediately in the Group income statement and is not subsequently
reversed. Any residual goodwill is reviewed annually for impairment.", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForBusinessCombinationsExplanatory", "language": "en", "entity": "scheme:213800BXKQ9KZNUR1M61", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "TagsThatMustBeAppliedIfCorrespondingInformationIsPresentInAReport_Label_00293": { "value": "Business combinations
Business combinations are accounted for under the acquisition method. Any excess of the purchase price of business combinations
over the fair value of the assets, liabilities and contingent liabilities acquired and resulting deferred tax thereon is recognised as
goodwill. Any discount is credited to the Group income statement in the period of acquisition. Goodwill is recognised as an asset
and reviewed for impairment. Any impairment is recognised immediately in the Group income statement and is not subsequently
reversed. Any residual goodwill is reviewed annually for impairment.", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForGoodwillExplanatory", "language": "en", "entity": "scheme:213800BXKQ9KZNUR1M61", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "TagsThatMustBeAppliedIfCorrespondingInformationIsPresentInAReport_Label_00294": { "value": "Investment property
(i)
Valuation
\u2013 Investment properties are those that are held either to earn rental income or for capital appreciation or both,
including those that are undergoing redevelopment. Investment properties are measured initially at cost, including related
transaction costs. After initial recognition, they are carried in the Group balance sheet at fair value adjusted for the carrying
value of leasehold interests and lease incentive and letting cost receivables. Fair value is the price that would be received to
sell an investment property in an orderly transaction between market participants at the measurement date. The valuation is
undertaken by independent valuers who hold recognised and relevant professional qualifications and have recent experience
in the locations and categories of properties being valued.
Surpluses or deficits resulting from changes in the fair value of investment property are reported in the Group income
statement in the year in which they arise.
The Group leases out investment properties under operating leases with rents generally payable monthly or quarterly. The Group
is exposed to changes in the residual value of properties at the end of current lease agreements, and mitigates this risk by
actively managing its tenant mix in order to maximise the weighted average lease term, minimise vacancies across the portfolio
and maximise exposure to tenants with strong financial characteristics. The Group also grants lease incentives to encourage
high quality tenants to remain in properties for longer lease terms.
(ii)
Capital expenditure
\u2013 Capital expenditure, being costs directly attributable to the redevelopment or refurbishment of
an investment property, up to the point of it being completed for its intended use, are capitalised in the carrying value of
that property. In addition, in accordance with IAS 23 Borrowing Costs, finance costs that are directly attributable to such
expenditure are capitalised using the Group\u2019s average cost of borrowings during each quarter.
Certain internal staff and associated costs directly attributable to the major development and refurbishment schemes are
also capitalised based on the proportion of time spent on the relevant scheme. These costs are capitalised from the date the
Group determines it is probable that the development will progress until the date of practical completion.
(iii)
Disposal
\u2013 Properties are treated as disposed when the Group transfers the significant risks and rewards of ownership to
the buyer. Generally this would occur on completion of contract. On disposal, any gain or loss is calculated as the difference
between the net disposal proceeds and the carrying value at the last year end plus subsequent capitalised expenditure during
the year. Where the net disposal proceeds have yet to be finalised at the balance sheet date, the proceeds recognised reflect
the Directors\u2019 best estimate of the amounts expected to be received. Any contingent consideration is recognised at fair value
at the balance sheet date. The fair value is calculated using future discounted cash flows based on expected outcomes with
estimated probabilities taking account of the risk and uncertainty of each input.
(iv)
Development
\u2013 When the Group begins to redevelop an existing investment property for continued use as an investment
property or acquires a property with the subsequent intention of developing as an investment property, the property is classified
as an investment property and is accounted for as such. When the Group begins to redevelop an existing investment property
with a view to sale, the property is transferred to trading properties and held as a current asset. The property is remeasured
to fair value as at the date of transfer with any gain or loss being taken to the income statement. The remeasured amount
becomes the deemed cost at which the property is then carried in trading properties.", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForInvestmentPropertyExplanatory", "language": "en", "entity": "scheme:213800BXKQ9KZNUR1M61", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "TagsThatMustBeAppliedIfCorrespondingInformationIsPresentInAReport_Label_00295": { "value": "(ii)
Capital expenditure
\u2013 Capital expenditure, being costs directly attributable to the redevelopment or refurbishment of
an investment property, up to the point of it being completed for its intended use, are capitalised in the carrying value of
that property. In addition, in accordance with IAS 23 Borrowing Costs, finance costs that are directly attributable to such
expenditure are capitalised using the Group\u2019s average cost of borrowings during each quarter.
Certain internal staff and associated costs directly attributable to the major development and refurbishment schemes are
also capitalised based on the proportion of time spent on the relevant scheme. These costs are capitalised from the date the
Group determines it is probable that the development will progress until the date of practical completion.", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForBorrowingCostsExplanatory", "language": "en", "entity": "scheme:213800BXKQ9KZNUR1M61", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "TagsThatMustBeAppliedIfCorrespondingInformationIsPresentInAReport_Label_00296": { "value": "Trading property and trading stock
Trading property relates to property being developed for sale. Trading stock relates to development expenditure which is due to
be disposed of to third parties under development agreements. In accordance with IAS 2 Inventories, trading property and trading
stock are held at the lower of cost and net realisable value. Proceeds from sale are recognised in the Group\u2019s income statement
when title has been transferred to the purchaser as required by IFRS 15 Revenue from Contracts with Customers.", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForTradingIncomeAndExpenseExplanatory", "language": "en", "entity": "scheme:213800BXKQ9KZNUR1M61", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "TagsThatMustBeAppliedIfCorrespondingInformationIsPresentInAReport_Label_00297": { "value": "Property, plant and equipment
(i)
Owner-occupied property
\u2013 Owner-occupied property is stated at its revalued amount, which is determined in the same
manner as investment property. It is depreciated over its remaining useful life (40 years) with the depreciation included in
administrative expenses. On revaluation, any accumulated depreciation is eliminated against the gross carrying amount of
the property concerned, and the net amount restated to the revalued amount. Subsequent depreciation charges are adjusted
based on the revalued amount for each property. Any difference between the depreciation charge on the revalued amount
and that which would have been charged under historic cost is transferred, net of any related deferred tax, between the
revaluation reserve and retained earnings as the property is utilised. Surpluses or deficits resulting from changes in the fair
value are reported in the Group statement of comprehensive income. The land element of the property is not depreciated.
(ii)
Artwork
\u2013 Artwork is stated at revalued amounts on the basis of open market value.
(iii)
Other
\u2013 Plant and equipment is depreciated at a rate of between 10% and 25% per annum which is calculated to write off the
cost, less estimated residual value of the individual assets, over their expected useful lives.", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForPropertyPlantAndEquipmentExplanatory", "language": "en", "entity": "scheme:213800BXKQ9KZNUR1M61", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "TagsThatMustBeAppliedIfCorrespondingInformationIsPresentInAReport_Label_00298": { "value": "Property, plant and equipment
(i)
Owner-occupied property
\u2013 Owner-occupied property is stated at its revalued amount, which is determined in the same
manner as investment property. It is depreciated over its remaining useful life (40 years) with the depreciation included in
administrative expenses. On revaluation, any accumulated depreciation is eliminated against the gross carrying amount of
the property concerned, and the net amount restated to the revalued amount. Subsequent depreciation charges are adjusted
based on the revalued amount for each property. Any difference between the depreciation charge on the revalued amount
and that which would have been charged under historic cost is transferred, net of any related deferred tax, between the
revaluation reserve and retained earnings as the property is utilised. Surpluses or deficits resulting from changes in the fair
value are reported in the Group statement of comprehensive income. The land element of the property is not depreciated.
(ii)
Artwork
\u2013 Artwork is stated at revalued amounts on the basis of open market value.
(iii)
Other
\u2013 Plant and equipment is depreciated at a rate of between 10% and 25% per annum which is calculated to write off the
cost, less estimated residual value of the individual assets, over their expected useful lives.", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForDepreciationExpenseExplanatory", "language": "en", "entity": "scheme:213800BXKQ9KZNUR1M61", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "TagsThatMustBeAppliedIfCorrespondingInformationIsPresentInAReport_Label_00299": { "value": "Investments
Investments in joint ventures, being those entities over whose activities the Group has joint control, as established by contractual
agreement, are included in the Group\u2019s balance sheet at cost together with the Group\u2019s share of post-acquisition reserves, on a
net equity basis. Investments in subsidiaries and joint ventures are included in the Company\u2019s balance sheet at the lower of cost
and recoverable amount. Any impairment is recognised immediately in the income statement.", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForInvestmentsInJointVentures", "language": "en", "entity": "scheme:213800BXKQ9KZNUR1M61", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "TagsThatMustBeAppliedIfCorrespondingInformationIsPresentInAReport_Label_00302": { "value": "Investments
Investments in joint ventures, being those entities over whose activities the Group has joint control, as established by contractual
agreement, are included in the Group\u2019s balance sheet at cost together with the Group\u2019s share of post-acquisition reserves, on a
net equity basis. Investments in subsidiaries and joint ventures are included in the Company\u2019s balance sheet at the lower of cost
and recoverable amount. Any impairment is recognised immediately in the income statement.", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForSubsidiariesExplanatory", "language": "en", "entity": "scheme:213800BXKQ9KZNUR1M61", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "TagsThatMustBeAppliedIfCorrespondingInformationIsPresentInAReport_Label_00303": { "value": "Non-current assets held for sale
Non-current assets are classified as held for sale if their carrying value will be recovered through a sale transaction rather than
through continuing use. This condition is regarded as met if the sale is highly probable, the asset is available for immediate sale
in its present condition, being actively marketed and management is committed to the sale which should be expected to qualify
for recognition as a completed sale within one year from the date of classification.
In accordance with IFRS 5, non-current assets, including related liabilities, classified as held for sale are measured at the lower of
carrying value and fair value less costs of disposal.", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForNoncurrentAssetsOrDisposalGroupsClassifiedAsHeldForSaleExplanatory", "language": "en", "entity": "scheme:213800BXKQ9KZNUR1M61", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "TagsThatMustBeAppliedIfCorrespondingInformationIsPresentInAReport_Label_00305": { "value": "Financial assets
(i)
Cash and cash equivalents
\u2013 Cash at bank comprises cash in hand and on-demand deposits. Cash at bank comprises
short-term, highly liquid investments that are readily convertible to known amounts of cash and which are subject to an
insignificant risk of changes in value.
Tenant rent deposits are subject to contractual restrictions and meet the definition of \u2018cash and cash equivalents\u2019 under
IAS 7 and are recognised as restricted cash.
Cash collected on behalf of tenants to fund service charges of properties in the portfolio meet the definition of \u2018cash and
cash equivalents\u2019 under IAS 7 and are recognised as restricted cash.
(ii)
Trade receivables
\u2013 Trade receivables are recognised and carried at the original transaction value. This balance is subject
to impairment testing under IFRS 9 using the forward-looking, simplified approach to the expected credit loss model.
Lease incentive receivables
In accordance with IFRS 16, rental income is recognised in the Group income statement on a straight-line basis over the term of
the lease. This includes the effect of lease incentives given to tenants (in the form of rent-free periods, half rent periods or capital
contributions in lieu of rent-free periods) and any contracted rental uplifts granted at lease inception. The result is included within
accrued income in the balance sheet. This balance is subject to impairment testing under IAS 36.", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForFinancialAssetsExplanatory", "language": "en", "entity": "scheme:213800BXKQ9KZNUR1M61", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "TagsThatMustBeAppliedIfCorrespondingInformationIsPresentInAReport_Label_00304": { "value": "Financial assets
(i)
Cash and cash equivalents
\u2013 Cash at bank comprises cash in hand and on-demand deposits. Cash at bank comprises
short-term, highly liquid investments that are readily convertible to known amounts of cash and which are subject to an
insignificant risk of changes in value.
Tenant rent deposits are subject to contractual restrictions and meet the definition of \u2018cash and cash equivalents\u2019 under
IAS 7 and are recognised as restricted cash.
Cash collected on behalf of tenants to fund service charges of properties in the portfolio meet the definition of \u2018cash and
cash equivalents\u2019 under IAS 7 and are recognised as restricted cash.
(ii)
Trade receivables
\u2013 Trade receivables are recognised and carried at the original transaction value. This balance is subject
to impairment testing under IFRS 9 using the forward-looking, simplified approach to the expected credit loss model.Financial liabilities
(i)
Bank loans and fixed rate loans
\u2013 Bank loans and fixed rate loans are included as financial liabilities on the balance sheets
at amortised cost. Interest payable is expensed as a finance cost in the year to which it relates.
Where there has been a change to the terms of a debt agreement, such as the applicable interest rate or benchmark
rate, this is assessed under IFRS 9 using quantitative and qualitative assessments to determine if the debt modification
is considered substantial enough to be deemed an extinguishment. It is common for loan facilities agreements to include
extension options which extend the loan maturity out by one year. When these options are exercised as per the agreement,
with no changes to other terms, this is deemed to be a modification of the loan and not an extinguishment.
(ii)
Non-convertible bonds
\u2013 These are included as a financial liability on the balance sheet net of the unamortised discount
and costs on issue. The difference between this carrying value and the redemption value is recognised in the Group income
statement over the life of the bond on an effective interest basis. Interest payable to bond holders is expensed in the year to
which it relates.
(iii)
Convertible bonds
\u2013 The fair value of the liability component of a convertible bond is determined using the market
interest rate for an equivalent non-convertible bond. This amount is recorded as a liability on an amortised cost basis until
extinguished on conversion or maturity of the bonds. The remainder of the proceeds is allocated to the conversion option.
This is recognised and included in shareholders\u2019 equity, net of income tax effects and is not subsequently re-measured. Issue
costs are apportioned between the liability and the equity components of the convertible bonds based on their carrying
amounts at the date of issue. The portion relating to the equity component is charged directly against equity. The issue costs
apportioned to the liability are amortised over the life of the bond. The issue costs apportioned to equity are not amortised.
(iv)
Finance lease liabilities
\u2013 Finance lease liabilities arise for those investment properties held under a leasehold interest and
accounted for as investment property. The liability is initially calculated as the present value of the minimum lease payments,
reducing in subsequent years by the apportionment of payments to the lessor, as described above under the heading for lease
payments.
(v)
Interest rate derivatives
\u2013 The Group uses derivative financial instruments to manage the interest rate risk associated with
the financing of the Group\u2019s business. No trading in financial instruments is undertaken.
At each reporting date, these interest rate derivatives are measured at fair value, being the estimated amount that the Group
would receive or pay to terminate the agreement at the balance sheet date, taking into account current interest rates and
the current credit rating of the counterparties. The gain or loss at each fair value remeasurement is recognised in the Group
income statement because the Group does not apply hedge accounting.
(vi)
Trade payables
\u2013 Trade payables are recognised and carried at the original transaction value.", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForFinancialInstrumentsExplanatory", "language": "en", "entity": "scheme:213800BXKQ9KZNUR1M61", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "TagsThatMustBeAppliedIfCorrespondingInformationIsPresentInAReport_Label_00306": { "value": "(i)
Cash and cash equivalents
\u2013 Cash at bank comprises cash in hand and on-demand deposits. Cash at bank comprises
short-term, highly liquid investments that are readily convertible to known amounts of cash and which are subject to an
insignificant risk of changes in value.
Tenant rent deposits are subject to contractual restrictions and meet the definition of \u2018cash and cash equivalents\u2019 under
IAS 7 and are recognised as restricted cash.
Cash collected on behalf of tenants to fund service charges of properties in the portfolio meet the definition of \u2018cash and
cash equivalents\u2019 under IAS 7 and are recognised as restricted cash.", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyToDetermineComponentsOfCashAndCashEquivalents", "language": "en", "entity": "scheme:213800BXKQ9KZNUR1M61", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "TagsThatMustBeAppliedIfCorrespondingInformationIsPresentInAReport_Label_00307": { "value": "Tenant rent deposits are subject to contractual restrictions and meet the definition of \u2018cash and cash equivalents\u2019 under
IAS 7 and are recognised as restricted cash.
Cash collected on behalf of tenants to fund service charges of properties in the portfolio meet the definition of \u2018cash and
cash equivalents\u2019 under IAS 7 and are recognised as restricted cash.", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForRestrictedCashAndCashEquivalentsExplanatory", "language": "en", "entity": "scheme:213800BXKQ9KZNUR1M61", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "TagsThatMustBeAppliedIfCorrespondingInformationIsPresentInAReport_Label_00308": { "value": "(ii)
Trade receivables
\u2013 Trade receivables are recognised and carried at the original transaction value. This balance is subject
to impairment testing under IFRS 9 using the forward-looking, simplified approach to the expected credit loss model.", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForTradeAndOtherReceivablesExplanatory", "language": "en", "entity": "scheme:213800BXKQ9KZNUR1M61", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "TagsThatMustBeAppliedIfCorrespondingInformationIsPresentInAReport_Label_00309": { "value": "Financial liabilities
(i)
Bank loans and fixed rate loans
\u2013 Bank loans and fixed rate loans are included as financial liabilities on the balance sheets
at amortised cost. Interest payable is expensed as a finance cost in the year to which it relates.
Where there has been a change to the terms of a debt agreement, such as the applicable interest rate or benchmark
rate, this is assessed under IFRS 9 using quantitative and qualitative assessments to determine if the debt modification
is considered substantial enough to be deemed an extinguishment. It is common for loan facilities agreements to include
extension options which extend the loan maturity out by one year. When these options are exercised as per the agreement,
with no changes to other terms, this is deemed to be a modification of the loan and not an extinguishment.
(ii)
Non-convertible bonds
\u2013 These are included as a financial liability on the balance sheet net of the unamortised discount
and costs on issue. The difference between this carrying value and the redemption value is recognised in the Group income
statement over the life of the bond on an effective interest basis. Interest payable to bond holders is expensed in the year to
which it relates.
(iii)
Convertible bonds
\u2013 The fair value of the liability component of a convertible bond is determined using the market
interest rate for an equivalent non-convertible bond. This amount is recorded as a liability on an amortised cost basis until
extinguished on conversion or maturity of the bonds. The remainder of the proceeds is allocated to the conversion option.
This is recognised and included in shareholders\u2019 equity, net of income tax effects and is not subsequently re-measured. Issue
costs are apportioned between the liability and the equity components of the convertible bonds based on their carrying
amounts at the date of issue. The portion relating to the equity component is charged directly against equity. The issue costs
apportioned to the liability are amortised over the life of the bond. The issue costs apportioned to equity are not amortised.
(iv)
Finance lease liabilities
\u2013 Finance lease liabilities arise for those investment properties held under a leasehold interest and
accounted for as investment property. The liability is initially calculated as the present value of the minimum lease payments,
reducing in subsequent years by the apportionment of payments to the lessor, as described above under the heading for lease
payments.
(v)
Interest rate derivatives
\u2013 The Group uses derivative financial instruments to manage the interest rate risk associated with
the financing of the Group\u2019s business. No trading in financial instruments is undertaken.
At each reporting date, these interest rate derivatives are measured at fair value, being the estimated amount that the Group
would receive or pay to terminate the agreement at the balance sheet date, taking into account current interest rates and
the current credit rating of the counterparties. The gain or loss at each fair value remeasurement is recognised in the Group
income statement because the Group does not apply hedge accounting.
(vi)
Trade payables
\u2013 Trade payables are recognised and carried at the original transaction value.", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForFinancialLiabilitiesExplanatory", "language": "en", "entity": "scheme:213800BXKQ9KZNUR1M61", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "TagsThatMustBeAppliedIfCorrespondingInformationIsPresentInAReport_Label_00310": { "value": "(i)
Bank loans and fixed rate loans
\u2013 Bank loans and fixed rate loans are included as financial liabilities on the balance sheets
at amortised cost. Interest payable is expensed as a finance cost in the year to which it relates.
Where there has been a change to the terms of a debt agreement, such as the applicable interest rate or benchmark
rate, this is assessed under IFRS 9 using quantitative and qualitative assessments to determine if the debt modification
is considered substantial enough to be deemed an extinguishment. It is common for loan facilities agreements to include
extension options which extend the loan maturity out by one year. When these options are exercised as per the agreement,
with no changes to other terms, this is deemed to be a modification of the loan and not an extinguishment.", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForBorrowingsExplanatory", "language": "en", "entity": "scheme:213800BXKQ9KZNUR1M61", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "TagsThatMustBeAppliedIfCorrespondingInformationIsPresentInAReport_Label_00312": { "value": "(v)
Interest rate derivatives
\u2013 The Group uses derivative financial instruments to manage the interest rate risk associated with
the financing of the Group\u2019s business. No trading in financial instruments is undertaken.
At each reporting date, these interest rate derivatives are measured at fair value, being the estimated amount that the Group
would receive or pay to terminate the agreement at the balance sheet date, taking into account current interest rates and
the current credit rating of the counterparties. The gain or loss at each fair value remeasurement is recognised in the Group
income statement because the Group does not apply hedge accounting.", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForDerivativeFinancialInstrumentsAndHedgingExplanatory", "language": "en", "entity": "scheme:213800BXKQ9KZNUR1M61", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "TagsThatMustBeAppliedIfCorrespondingInformationIsPresentInAReport_Label_00311": { "value": "(v)
Interest rate derivatives
\u2013 The Group uses derivative financial instruments to manage the interest rate risk associated with
the financing of the Group\u2019s business. No trading in financial instruments is undertaken.
At each reporting date, these interest rate derivatives are measured at fair value, being the estimated amount that the Group
would receive or pay to terminate the agreement at the balance sheet date, taking into account current interest rates and
the current credit rating of the counterparties. The gain or loss at each fair value remeasurement is recognised in the Group
income statement because the Group does not apply hedge accounting.", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForDerivativeFinancialInstrumentsExplanatory", "language": "en", "entity": "scheme:213800BXKQ9KZNUR1M61", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "TagsThatMustBeAppliedIfCorrespondingInformationIsPresentInAReport_Label_00313": { "value": "(v)
Interest rate derivatives
\u2013 The Group uses derivative financial instruments to manage the interest rate risk associated with
the financing of the Group\u2019s business. No trading in financial instruments is undertaken.
At each reporting date, these interest rate derivatives are measured at fair value, being the estimated amount that the Group
would receive or pay to terminate the agreement at the balance sheet date, taking into account current interest rates and
the current credit rating of the counterparties. The gain or loss at each fair value remeasurement is recognised in the Group
income statement because the Group does not apply hedge accounting.", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForFinancialInstrumentsAtFairValueThroughProfitOrLossExplanatory", "language": "en", "entity": "scheme:213800BXKQ9KZNUR1M61", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "TagsThatMustBeAppliedIfCorrespondingInformationIsPresentInAReport_Label_00314": { "value": "(vi)
Trade payables
\u2013 Trade payables are recognised and carried at the original transaction value.", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForTradeAndOtherPayablesExplanatory", "language": "en", "entity": "scheme:213800BXKQ9KZNUR1M61", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "TagsThatMustBeAppliedIfCorrespondingInformationIsPresentInAReport_Label_00315": { "value": "Deferred tax
Deferred tax is the tax expected to be payable or recoverable on differences between the carrying amounts of assets and
liabilities in the financial statements and the corresponding tax bases used in the tax computations, and is accounted for using
the balance sheet liability method. Deferred tax liabilities are generally recognised for all taxable temporary differences and
deferred tax assets are recognised to the extent that it is probable that taxable profits will be available against which deductible
temporary differences can be utilised. In respect of the deferred tax on the revaluation surplus, this is calculated on the basis of
the chargeable gains that would crystallise on the sale of the investment portfolio as at the reporting date. The calculation takes
account of available indexation on the historical cost of the properties.
Deferred tax is calculated at the tax rates that are expected to apply in the period, based on Acts substantially enacted at the
year end, when the liability is settled or the asset is realised. Deferred tax is included in profit or loss for the period, except when
it relates to items recognised in other comprehensive income or directly in equity.", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForDeferredIncomeTaxExplanatory", "language": "en", "entity": "scheme:213800BXKQ9KZNUR1M61", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "TagsThatMustBeAppliedIfCorrespondingInformationIsPresentInAReport_Label_00316": { "value": "Cash \ufb02ow
Transactions in the cash flow statement under operating, investing and financing activities have been prepared net of value
added tax in order to reflect the true cash inflows and outflows of the Group.", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForCashFlowsExplanatory", "language": "en", "entity": "scheme:213800BXKQ9KZNUR1M61", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "TagsThatMustBeAppliedIfCorrespondingInformationIsPresentInAReport_Label_00335": { "value": "Dividends Dividends payable on the ordinary share capital are recognised in the year in which they are declared.", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForDividendsExplanatory", "language": "en", "entity": "scheme:213800BXKQ9KZNUR1M61", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "TagsThatMustBeAppliedIfCorrespondingInformationIsPresentInAReport_Label_00181": { "value": "COMPANY BALANCE SHEET
as at 31 December 2024
Registered No. 1819699
\n \n
2023
2024
Restated
1
Note
\u00a3m
\u00a3m
Non-current assets
Property, plant and equipment
17.1
19.1
Investments
vi
2,578.3
2,189.8
Receivables: amounts falling due after more than one year
vii
1,920.4
2,327.3
Derivative financial instruments
ix
\u2013
2.9
Deferred tax
x
0.8
2.6
Pension scheme surplus
vi
1.8
2.0
4,518.4
4,543.7
Current assets
Receivables: amounts falling due within one year
vii
33.4
31.8
Derivative financial instruments
ix
0.6
\u2013
Corporation tax asset
0.3
0.3
Cash and cash equivalents
20.7
24.8
55.0
56.9
Total assets
4,573.4
4,600.6
Current liabilities
Borrowings
ix
174.1
82.9
Leasehold liabilities
ix
1.3
1.3
Payables: amounts falling due within one year
viii
1,615.5
2,009.6
Provisions
0.2
0.1
1,791.1
2,093.9
Non-current liabilities
Borrowings
ix
1,091.3
1,053.6
Leasehold liabilities
ix
19.0
20.3
Provisions
0.4
0.3
1,110.7
1,074.2
Total liabilities
2,901.8
3,168.1
Total net assets
1,671.6
1,432.5
Equity
Share capital
xi
5.6
5.6
Share premium
196.6
196.6
Other reserves
927.8
926.2
Retained earnings
541.6
304.1
Total equity
1,671.6
1,432.5
1
Prior year \ufb01gures for the Company have been restated. See note i for additional information.
The financial statements were approved by the Board of Directors and authorised for issue on 26 February 2025.
Paul Williams
Damian Wisniewski
Chief Executive
Chief Financial Officer
The notes on pages 270 to 276 form part of these financial statements.
COMPANY STATEMENT OF CHANGES IN EQUITY
\n
for the year ended 31 December 2024
\n\n \n
Equity
Share
Share
Other
Retained
shareholders\u2019
Total
capital
premium
reserves
earnings
funds
equity
\u00a3m
\u00a3m
\u00a3m
\u00a3m
\u00a3m
\u00a3m
At 1 January 2024
5.6
196.6
926.2
304.1
1,432.5
1,432.5
Profit for the year
\u2013
\u2013
\u2013
326.3
326.3
326.3
Other comprehensive expense
\u2013
\u2013
\u2013
(0.4)
(0.4)
(0.4)
Share-based payments
\u2013
\u2013
1.6
1.4
3.0
3.0
Dividends paid
\u2013
\u2013
\u2013
(89.8)
(89.8)
(89.8)
At 31 December 2024
5.6
196.6
927.8
541.6
1,671.6
1,671.6
At 1 January 2023
5.6
196.6
925.9
202.2
1,330.3
1,330.3
Profit for the year
\u2013
\u2013
\u2013
189.6
189.6
189.6
Other comprehensive expense
\u2013
\u2013
\u2013
(0.7)
(0.7)
(0.7)
Share-based payments
\u2013
\u2013
0.3
1.7
2.0
2.0
Dividends paid
\u2013
\u2013
\u2013
(88.7)
(88.7)
(88.7)
At 31 December 2023
5.6
196.6
926.2
304.1
1,432.5
1,432.5
i\u2002Basis of preparation
\n
Derwent London plc is a public limited company, limited by shares, incorporated, domiciled and registered in England in the
\n
United Kingdom under the Companies Act. The address of the registered office is given on the back cover.
\n
Consolidated financial statements are on pages 216 to 220.
\n
The Company has prepared its financial statements in accordance with Financial Reporting Standard 101 \u2018Reduced Disclosure
\n
Framework\u2019 (FRS 101). The financial statements have been prepared on a going concern basis under the historical cost convention,
\n
except for the revaluation of derivatives which are measured at fair value.
\n
Transition to FRS 101
\n
These are the Company\u2019s first financial statements prepared in accordance with FRS 101. Previously, the financial statements
\n
were prepared in accordance with UK-adopted International Accounting Standards in conformity with the requirements of the
\n
Companies Act 2006. The date of transition to FRS 101 is 1 January 2023.
\n
The transition to FRS 101 has been made in accordance with the provisions set out in the standard. The Company has applied the
\n
recognition, measurement, and presentation requirements of UK-adopted International Accounting Standards in conformity with
\n
the requirements of the Companies Act 2006.
\n
As permitted by FRS 101, the exemptions that have been applied in preparation of these financial statements are as follows:
\n
\u2022
A cash flow statement and related notes have not been presented in line with IAS 7 Statement of Cash Flows.
\n
\u2022
Disclosures in respect of new standards and interpretations that have been issued but which are not yet effective have not
\n
been provided, in line with paragraphs 30 and 31 of IAS 8 Accounting Policies, Changes in Accounting Estimates and Errors.
\n
\u2022
Disclosures in respect of transactions with wholly owned subsidiaries have not been made in line with IAS 24 Related
\n
Party Disclosures.
\n
\u2022
Disclosures required by paragraphs 91 to 99 of IFRS 13 Fair Value Measurement and the disclosures required by IFRS 7 Financial
\n
Instruments: Disclosures have not been made.
\n
\u2022
Paragraphs 45(b) and 46 to 52 of IFRS 2 Share-based payment (details of the number and weighted average exercise
\n
prices of share options, and how the fair value of goods or services received was determined), have not been presented.
\n
\u2022
Disclosures under paragraphs 17 and 18A of IAS 24 Related Party Disclosures to disclose key management personnel
\n
compensation have not been presented.
\n
\u2022
The requirements of paragraphs 10(f); 40A to 40D; and 134 to 136 of IAS 1 Presentation of Financial Statements are no
\n
longer required.
\n
No material adjustments were necessary to previously reported figures as a result of adopting FRS 101, except for the reduced
\n
disclosures as noted above.
\n
Going concern
\n
The Company balance sheet shows a net current liability position of \u00a31,736.1m, primarily as a result of amounts owed to
\n
subsidiaries of \u00a31,593.3m being classified as current liabilities. The subsidiaries are all under common control in the Group, and
\n
the balances are not due to external counterparties. Although they are repayable on demand, there is no intention or expectation
\n
for them to be called or repaid within the next 12 months. The net current liability position also results from the \u00a3175m of finance
\n
facilities that reach maturity within the next 12 months. As at 31 December 2024, the Company had access to \u00a3487m of available
\n
undrawn facilities and cash to meet current liabilities as they fall due. In addition, a new \u00a3115m unsecured term/revolving bank
\n
facility was signed in February 2025, which provides the Directors with a reasonable expectation that the Group will be able to
\n
meet these current liabilities as they fall due.
\n
Having due regard to these matters and after making appropriate enquiries, the Directors have reasonable expectation that the
\n
Company has adequate resources to continue in operational existence for a period of at least 12 months from the date of signing
\n
of these financial statements and, therefore, the Directors continue to adopt the going concern basis in their preparation.
\n
Restatement of amounts owed by subsidiaries in Company balance sheet
\n
The Company reassessed the amounts owed by subsidiaries under \u2018IAS 1 Presentation of Financial Statements\u2019 and, based on
\n
expected timing of receipts, \u00a32,327.3m from amounts falling due within one year should have been classified to amounts falling
\n
due after more than one year as of 31 December 2023. Comparatives have been restated accordingly. Please refer to note vii for
\n
further details.
ii\u2002Accounting policies
\n
The principal accounting policies are described in the Group\u2019s note 41 and are consistent with those applied in the Group\u2019s
\n
financial statements for the year to 31 December 2023, as amended to reflect the adoption of new standards, amendments
\n
and interpretations which became effective in the year as shown below.
\n
New standards adopted during the year
\n
The following standards, amendments and interpretations were effective for the first time for the Group\u2019s current accounting
\n
period. They did not have any material impact on the amounts recognised in prior periods and are not expected to significantly
\n
affect the current or future periods.
\n
IAS 1 (amended) \u2013 Classification of liabilities as current or non-current, Non-current Liabilities with Covenants;
\n
IAS 7 and IFRS 7 (amended) \u2013 Supplier Finance Arrangements;
\n
IFRS 16 (amended) \u2013 Lease Liability in a Sale and Leaseback.
\n
iii\u2002Profit for the year attributable to members of Derwent London plc
\n
Company retained earnings includes a profit of \u00a3326.3m (2023: \u00a3189.6m) for the year. The Company has taken advantage
\n
of the exemption allowed under section 408 of the Companies Act 2006 and has not presented its own income statement in
\n
these financial statements. The employees of the Company are the Directors and the Company Secretary. Full disclosure of the
\n
Directors\u2019 remuneration can be found on pages 174 to 199.
\n
iv\u2002Employees
\n
Employee costs for the year include wages and salaries of \u00a320.5m (2023: \u00a320.2m), social security costs of \u00a33.1m (2023: \u00a32.7m),
\n
pension costs of \u00a32.7m (2023: \u00a32.3m) and share-based payment expenses relating to equity-settled schemes of \u00a33.1m
\n
(2023: \u00a32.5m). Details of the Executive Directors\u2019 remuneration are disclosed in the Remuneration Report on pages 174 to 199.
\n
The monthly average number of employees in the Company during the year, excluding Directors, was 146 (2023: 142).
\n
v\u2002Pension
\n
The Company operates both a defined contribution scheme and a defined benefit scheme and details are set out in note 14 of the
\n
consolidated financial statements.
\n
vi\u2002Investments
\n\n \n
Subsidiaries
\u00a3m
At 1 January 2023
2,224.7
Additions
135.0
Reversal of impairment
0.2
Impairment
(170.1)
At 31 December 2023
2,189.8
Additions
390.0
Repayment of capital
(2.0)
Reversal of impairment
0.5
At 31 December 2024
2,578.3
\n
At 31 December 2024, the carrying values of the investment in wholly owned subsidiaries were reviewed in accordance with IAS 36
\n
Impairment of Assets on both a \u2018value in use\u2019 and \u2018fair value less costs to sell\u2019 basis. The Company\u2019s accounting policy is to carry
\n
investments in subsidiary undertakings at the lower of cost and recoverable amount and recognise any impairment, or reversal
\n
thereof, in the income statement. As a result, the Company recognised a net impairment reversal of \u00a30.5m (2023: net impairment
\n
charge of \u00a3169.9m). This was due to property revaluation surpluses charged to the income statement in a number of the property
\n
investment subsidiaries held directly or indirectly by the Company. Investment properties are held by the property investment
\n
subsidiaries with any surpluses or deficits on revaluation being reported in the income statement of those subsidiaries. The Group
\n
uses the valuation carried out by external valuers as the fair value of its property portfolio. See note 3 of the consolidated financial
\n
statements for further details.
vii\u2002Receivables
\n\n \n
2024
2023
\u00a3m
\u00a3m
Amounts falling due within one year:
Other receivables
3.7
1.0
Prepayments
4.1
2.6
Other taxes
\u2013
4.0
Accrued income
Other
25.6
24.2
33.4
31.8
\n\n \n
2023
2024
Restated
\u00a3m
\u00a3m
Amounts falling due after more than one year:
Amounts owed by subsidiaries
1,920.4
2,327.3
1,920.4
2,327.3
\n
Following a reassessment of when certain amounts owed by subsidiaries are expected to be realised, the Company has determined
\n
that it did not intend to require settlement for certain amounts within 12 months of the balance sheet date. Accordingly, the
\n
comparatives have been restated, reclassifying \u00a32,327.3m to amounts falling due greater than one year.
\n
Amounts owed by subsidiaries in the Company are unsecured, have no fixed date of repayment and are repayable on demand,
\n
however, there is no intention or expectation for them to be paid within the next 12 months. Interest is charged at a rate
\n
dependent on the Group\u2019s overall debt funding cost for the year. For the year ended 31 December 2024, interest was charged at
\n
3.90% (2023: 3.89%). These balances have been considered as part of the full expected credit loss assessment under IFRS 9 and
\n
no impairments were determined to be required (2023: \u00a3nil).
\n
viii\u2002Payables
\n\n \n
2024
2023
\u00a3m
\u00a3m
Amounts falling due within one year:
Amounts owed to subsidiaries
1,593.3
1,992.2
Taxation and social security
0.5
\u2013
Trade payables
\u2013
0.4
Other payables
0.9
0.4
Accruals
20.7
16.4
Deferred income
0.1
0.2
1,615.5
2,009.6
\n
Amounts owed to subsidiaries in the Company are unsecured, have no fixed date of repayment and are repayable on demand,
\n
however, there is no intention or expectation for them to be paid within the next 12 months. Interest is charged at a rate dependent
\n
on the Group\u2019s overall debt funding cost for the year. For the year ended 31 December 2024, interest was charged at 3.90%
\n
(2023: 3.89%).
ix\u2002Net debt
\n
Secured and unsecured debt
\n\n \n
2024
2023
\u00a3m
\u00a3m
Secured
3.99% secured loan 2024
\u2013
82.9
\u2013
82.9
Unsecured
1.875% unsecured green bonds 2031
347.2
346.8
Unsecured private placement notes 2026 \u2013 2034
453.6
453.5
Unsecured bank loans
290.5
81.2
Intercompany loan
174.1
172.1
1,265.4
1,053.6
Borrowings
1,265.4
1,136.5
Leasehold liabilities \u2013 current
1.3
1.3
Leasehold liabilities \u2013 non-current
19.0
20.3
Derivative financial instruments \u2013 current
(0.6)
\u2013
Derivative financial instruments \u2013 non-current
\u2013
(2.9)
Gross debt
1,285.1
1,155.2
Reconciliation to net debt:
Gross debt
1,285.1
1,155.2
Derivative financial instruments
0.6
2.9
Cash at bank excluding restricted cash
(12.9)
(11.6)
Net debt
1,272.8
1,146.5
\n
Reconciliation to borrowings:
\n\n \n
Adjustments
Effect of
Gross loan
Interest on
interest
Leasehold
Non-cash
commitments
gross debt
rate swaps
liabilities
amortisation
Borrowings
\u00a3m
\u00a3m
\u00a3m
\u00a3m
\u00a3m
\u00a3m
Company
At 31 December 2024
Maturing in:
< 1 year
215.6
(39.3)
0.8
(2.1)
\u2013
175.0
1 to 2 years
261.7
(35.1)
\u2013
(2.1)
(1.8)
222.7
2 to 3 years
149.7
(24.1)
\u2013
(2.1)
(1.9)
121.6
3 to 4 years
52.1
(20.0)
\u2013
(2.1)
(0.1)
29.9
4 to 5 years
136.2
(16.1)
\u2013
(2.1)
(0.3)
117.7
> 5 years
632.5
(15.8)
\u2013
(14.7)
(3.5)
598.5
1,447.8
(150.4)
0.8
(25.2)
(7.6)
1,265.4
At 31 December 2023
Maturing in:
< 1 year
114.2
(31.5)
2.4
(2.1)
(0.1)
82.9
1 to 2 years
202.8
(26.1)
0.4
(2.1)
\u2013
175.0
2 to 3 years
146.6
(23.0)
\u2013
(2.1)
(5.4)
116.1
3 to 4 years
40.7
(21.1)
\u2013
(2.1)
(0.5)
17.0
4 to 5 years
52.1
(20.0)
\u2013
(2.1)
(0.1)
29.9
> 5 years
791.1
(54.3)
\u2013
(16.8)
(4.4)
715.6
1,347.5
(176.0)
2.8
(27.3)
(10.5)
1,136.5
x\u2002Deferred tax
\n\n \n
Other
Total
\u00a3m
\u00a3m
At 1 January 2024
(2.6)
(2.6)
Charged to the income statement
1.8
1.8
At 31 December 2024
(0.8)
(0.8)
At 1 January 2023
(3.0)
(3.0)
Charged to the income statement
0.4
0.4
At 31 December 2023
(2.6)
(2.6)
\n
Deferred tax on the balance sheet revaluation deficit/surplus is calculated on the basis of the chargeable gains that would
\n
crystallise on the sale of the property portfolio at each balance sheet date. The calculation takes account of any available
\n
indexation on the historical cost of the properties. Due to the Group\u2019s REIT status, deferred tax is only provided at each balance
\n
sheet date on properties outside the REIT ring-fence.
\n
xi\u2002Share capital
\n
The movement in the number of 5p ordinary shares in issue is shown in the table below:
\n\n \n
Number of shares in issue fully paid
Number
At 1 January 2023
112,290,679
Issued as a result of the exercise of share options
1
250
At 31 December 2023 and 2024
112,290,929
\n
1
Proceeds from these issues were \u00a3nil (2023: \u00a3nil).
\n
xii\u2002List of subsidiaries and joint ventures
\n
A full list of subsidiaries and joint ventures as at 31 December 2024 is set out below.
\n
Audit exemption taken for subsidiaries
\n
Certain UK subsidiaries are exempt from the requirement of the Companies Act 2006 relating to the audit of individual accounts
\n
by virtue of Section 479A of the Act. These subsidiaries are identified in the table below (superscript/footnote 2):
\n\n \n
Company number
Ownership
3
Principal activity
Subsidiaries
Asta Commercial Limited
2
09644973
100%
Property investment
BBR Property Limited
1
08486476
100%
Dormant
Caledonian Properties Limited
2
00669924
100%
Property investment
Caledonian Property Estates Limited
2
07412270
100%
Property investment
Caledonian Property Investments Limited
2
00669923
100%
Property investment
Carlton Construction & Development Company Limited
00538216
100%
Dormant
Central London Commercial Estates Limited
00656914
100%
Property investment
Charlotte Apartments Limited
2
09642563
100%
Property investment
80 Charlotte Street Limited
1, 2
10579271
100%
Property investment
Derwent Asset Management Limited
1, 2
07325387
100%
Property management
Derwent Central Cross Limited
1, 2
07320070
100%
Property investment
Derwent Henry Wood Limited
1, 2
07412653
100%
Property investment
Derwent London 50 Baker Street Limited
13644777
100%
Property investment
Derwent London Angel Building Limited
13247175
100%
Property investment
Derwent London AD Limited
1
13227143
100%
Dormant
Derwent London Asta Limited
2
09643005
100%
Property trading
Derwent London Baker Street Limited
00806862
100%
Property investment
Derwent London BH Limited
1, 2
13136439
100%
Property investment
Derwent London Blackfriars Limited
1, 2
13655681
100%
Property investment
Company number
Ownership
3
Principal activity
Derwent London Brixton Limited
1, 2
12405614
100%
Property investment
Derwent London BSP Limited
2
13635308
100%
Property investment
Derwent London Capital No. 3 (Jersey) Limited
1
00129106
100%
Finance company
Derwent London Development Services Limited
1
09850541
100%
Development services
Derwent London Euston Road Limited
1, 2
13136412
100%
Property investment
Derwent London Farringdon Limited
1, 2
09310500
100%
Property investment
Derwent London Featherstone Limited
1, 2
11296132
100%
Property investment
Derwent London Gallery Limited
1, 2
12752908
100%
Property investment
Derwent London George Street Limited
1
13034088
100%
Property trading
Derwent London Green Energy Limited
1, 2
12824452
100%
Energy production
Derwent London Holden House Limited
1, 2
11325906
100%
Property investment
Derwent London Holford Works Limited
1, 2
13302967
100%
Property investment
Derwent London Horseferry Limited
1, 2
13136399
100%
Property investment
Derwent London KSW Limited
1, 2
08802313
100%
Property investment
Derwent London Member Services Limited
1, 2
14958936
100%
Events & catering services
Derwent London No.5 Limited
1, 2
13906854
100%
Property investment
Derwent London Network Limited
1
14009618
100%
Property investment
Derwent London Oliver\u2019s Yard Limited
1, 2
10775826
100%
Property investment
Derwent London Page Street (Nominee) Limited
07540717
100%
Dormant
Derwent London Page Street Limited
1, 2
07540699
100%
Property investment
Derwent London Savile Row Limited
1, 2
12902975
100%
Property investment
Derwent London White Chapel Limited
1, 2
13136446
100%
Property investment
Derwent London White Collar Limited
1, 2
13136415
100%
Property investment
Derwent London Whitfield Street Limited
1,2
10775868
100%
Property investment
Derwent Valley Central Limited
1
00205226
100%
Property investment
Derwent Valley Employee Trust Limited
1, 2
04177132
100%
Employee trust
Derwent Valley Finance Limited
2
05622597
100%
Investment holding
Derwent Valley Limited
00445037
100%
Holding company
Derwent Valley London Limited
1
00229333
100%
Property investment
Derwent Valley Property Developments Limited
1
02148266
100%
Property investment
Derwent Valley Property Investments Limited
1, 2
01885847
100%
Property investment
Derwent Valley Property Trading Limited
1,2
03087749
100%
Property trading
Derwent Valley Railway Company
1
100%
Dormant
Derwent Valley West End Limited
1, 2
02035801
100%
Property investment
Kensington Commercial Property Investments Limited
00590078
100%
Property investment
LMS (City Road) Limited
2
05642456
100%
Property investment
LMS Finance Limited
2
05622669
100%
Investment holding
LMS Offices Limited
2
05308784
100%
Property investment
London Merchant Securities Limited
1
00007064
100%
Holding company
The New River Company Limited
00085094
100%
Property investment
Urbanfirst Limited
02213216
100%
Investment holding
West London & Suburban Property Investments Limited
00538148
100%
Property investment
Joint ventures
Dorrington Derwent Holdings Limited
02355611
50%
Holding company
Dorrington Derwent Investments Limited
02359387
50%
Investment company
Primister Limited
02068292
50%
Property investment
\n
1
Indicates subsidiary undertakings held directly.
\n
2
Exempt from the requirement of the Companies Act 2006 relating to the audit of individual accounts by virtue of Section 479A of the Act.
\n
3
All holdings are of ordinary shares.
The Company controls 50% of the voting rights of its joint ventures, which are accounted for and disclosed in accordance with
IFRS 11 Joint Arrangements.
All of the entities above are incorporated and domiciled in England and Wales, with the exception of Derwent London Capital
No. 3 (Jersey) Limited which is incorporated and domiciled in Jersey. In addition, all the entities are registered at 25 Savile Row,
London, W1S 2ER, with the exception of:
\u2022
Derwent London Capital No. 3 (Jersey) Limited, which is registered at 47 Esplanade, St Helier, JE1 0BD, Channel Islands;
\u2022
Dorrington Derwent Holdings Limited and Dorrington Derwent Investments Limited, which are registered at 16 Hans Road,
London, SW3 1RT;
\u2022
Primister Limited, which is registered at Quadrant House, Floor 6, 4 Thomas More Square, London, E1W 1YW.", "dimensions": { "concept": "ifrs-full:DisclosureOfConsolidatedAndSeparateFinancialStatementsExplanatory", "language": "en", "entity": "scheme:213800BXKQ9KZNUR1M61", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "TagsThatMustBeAppliedIfCorrespondingInformationIsPresentInAReport_Label_00175": { "value": "25 Savile Row, London W1S 2ER", "dimensions": { "concept": "ifrs-full:AddressOfRegisteredOfficeOfEntity", "language": "en", "entity": "scheme:213800BXKQ9KZNUR1M61", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } } } }