Shaftesbury AR 2017 LR
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FINANCIAL STATEMENTS NOTES to the financial statements <strong>Shaftesbury</strong> Annual Report <strong>2017</strong><br />
24 Performance measures continued<br />
The calculations of diluted net asset value per share show the potentially dilutive effect of share options outstanding at the Balance Sheet date and include<br />
the increase in shareholders’ equity which would arise on the exercise of those options.<br />
In accordance with EPRA recommendations, the adjustment for the fair value of derivatives at 30 September 2016 excludes those interest rate swaps which<br />
were cancelled in October 2016.<br />
Net asset value return<br />
<strong>2017</strong><br />
PENCE<br />
2016<br />
PENCE<br />
EPRA NAV at 1 October (A) 888.00 869.00<br />
EPRA NAV at 30 September 952.00 888.00<br />
Increase during the year 64.00 19.00<br />
Dividends paid during the year 15.45 14.08<br />
NAV return (B) 79.45 33.08<br />
NAV return % (B/A) 8.9% 3.8%<br />
Financing ratios<br />
<strong>2017</strong> 2016<br />
WHOLLY-<br />
OWNED<br />
BUSINESS<br />
£M<br />
SH<strong>AR</strong>E OF<br />
JOINT<br />
VENTURE<br />
£M<br />
TOTAL<br />
£M<br />
WHOLLY-<br />
OWNED<br />
BUSINESS<br />
£M<br />
SH<strong>AR</strong>E OF<br />
JOINT<br />
VENTURE<br />
£M<br />
TOTAL<br />
£M<br />
Loan-to-value and gearing<br />
Nominal value of debt 959.8 60.0 1,019.8 767.7 60.0 827.7<br />
Cash and cash equivalents (45.6) (0.6) (46.2) (15.6) (2.0) (17.6)<br />
Net debt (A) 914.2 59.4 973.6 752.1 58.0 810.1<br />
Fair value of investment properties (B) 3,418.9 227.8 3,646.7 3,123.6 224.4 3,348.0<br />
Loan-to-value (A/B) 26.7% 26.1% 26.7% 24.1% 25.8% 24.2%<br />
EPRA net assets (C) 2,665.3 2,481.7<br />
Gearing (A/C) 36.5% 32.6%<br />
Interest cover<br />
Operating profit before investment property disposals<br />
and valuation movements (A)<br />
74.2 7.9 82.1 70.0 6.6 76.6<br />
Finance costs 32.8 2.7 35.5 33.7 2.7 36.4<br />
Finance income (0.1) - (0.1) (0.1) - (0.1)<br />
Net finance costs (B) 32.7 2.7 35.4 33.6 2.7 36.3<br />
Interest cover (A/B) 2.3x 2.9x 2.3x 2.1x 2.4x 2.1x<br />
For the wholly-owned group, the blended cost of debt is 3.19% (2016: 4.47%). This is calculated using the drawn cost of borrowings of 2.99% (2016: 4.45%)<br />
plus the cost of commitment fees on undrawn bank facilities of 0.69% (2016: 0.70%). At 30 September <strong>2017</strong>, the undrawn bank facilities totalled £275.0<br />
million (2016: £59.3 million). For total debt, the blended cost of debt is 3.26% (2016: 4.52%) and includes the impact of our share of debt in our joint<br />
venture of £60 million (2016: £60 million), upon which interest is charged at 4.43% (2016: 4.43%).<br />
See also pages 50 to 54 in the Strategic Report for explanations of why we use these performance measures.<br />
137
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