Income statement As noted above our EPRA earnings for the year have increased compared to 2020, rising 0.6% to £20.1 million. Within that, property revenue has reduced as expected during the pandemic, but there have been savings in both property costs and administrative expenses, and finance costs are also lower. Total revenue from the property portfolio for the year was £43.3 million. Rental income, at £36.6 million, was lower by 3.2% compared to 2020, which was due to asset disposals and additional provisions made against income as a result of the pandemic despite an increase in occupancy. On a like-for-like basis, rental income increased marginally by 0.2% compared to the previous year, on an EPRA basis. Rent collection over the year has held up well, but the variations between different business sectors have been quite apparent. Our policy of engaging with occupiers from an early stage has been beneficial, and the amount of rent concessions that we have granted has been limited, at only 4% of rent due over the year. The table below sets out a summary of our rent collection over the last year. Our Covid-19 response
Dividends At the start of the pandemic, in common with many other property companies, we reviewed the level of our dividend and concluded that a prudent approach was appropriate, reducing the May 2020 dividend by 29%. We maintained this lower rate for two quarters and have subsequently increased it twice, initially by 12% and then by a further 14%, so that the dividend is now at 91% of the pre-pandemic level, as rent collection rates have remained robust. The dividend for the year was 2.75 pence per share, with total dividends paid out of £15.0 million. Dividend cover for the full year was 134%. EPRA Best Practices Recommendations The EPRA key performance measures for the year are set out on page 3 of the Report, with more detail provided in the Supplementary Disclosures section which starts on page 127. EPRA introduced updated Best Practices Recommendations effective for accounting periods starting after 1 January 2020, including newmeasures of net asset value. These are net tangible asset value, net disposal value and net reinstatement value. We have included these measures in this Report, and in the Supplementary Disclosures section we set out the calculations in more detail. Alternative performancemeasures We use a number of alternative performance measures (APMs) when reporting on the performance of the business and its financial position. These do not always have a standard meaning and may not be comparable to those used by other entities. However, we will use industry standard measures and terminology where possible. In common with many other listed property companies we report the EPRA performance measures. We have reported these for a number of years in order to provide a consistent comparison with similar companies. In the Additional Information section of this Report we provide more detailed information and reconciliations to IFRS where appropriate. Our key performance indicators include three of the key EPRA measures but also total return, total property return, property income return, total shareholder return, loan to value ratio, cost ratio, occupier retention rate and EPC ratings. The definition of these measures, and the rationale for their use, is set out in the Key Performance Indicators section.
Rent due 25 March 2020 to 24 March 2021
Retail and Leisure (%)
Total (%)
Industrial (%)
Office (%)
92
Collected Deferred
91
97
85
1
1
–
4
Concessions agreed Outstanding
4 3
4 4
2 1
8 3
For the year we wrote off £1.6 million of debts, and increased the provision against occupier debtors by £0.2 million, with the total provision at 31 March 2021 standing at £1.6 million. We continue to engage with occupiers to resolve all amounts outstanding. Property void costs reduced by 27% to £2.2 million, reflecting both the increase in occupancy over the year and the lower service charge costs attributable to vacant units. Administrative expenses for the year were £5.4 million, again lower than the previous year, by 3%. Savings were made against a number of corporate level costs. Interest costs are also lower this year at £8.0 million, due to the loan repayments that we made towards the end of the last financial year. There were no drawdowns made under the new revolving credit facility. Capital gains on the portfolio were £13.7 million for the year, with positive valuation movements during the year. There was divergence across the sectors, with the industrial assets showing significant gains, while retail and leisure assets were more adversely impacted by the pandemic. One disposal was made during the year, realising a 30% gain compared to the March 2020 valuation. The total profit for the year was £33.8 million, up over 50% compared with 2020.
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