In June 2021, the Company acquired 15-33 Union Street for a purchase price of GBP10.19 million. 15-33 Union Street occupies a prominent location in Bristol city centre, opposite The Galleries Shopping Centre and near Cabot Circus, Bristol's premier retail destination. Located on a busy thoroughfare for pedestrians, the 65,238 sq ft site experiences high footfall and is ideally suited for retail or leisure units. Constructed in 2001, the property currently comprises five purpose built split-level retail or leisure units over four floors and road access to both Union Street and Fairfax Street. Four of the five units are let to three household names and a successful local retailer. The remaining unit is currently vacant, with the vendor providing a 12 month guarantee. We are currently in discussions with a number of parties who are keen to occupy this space. The location of the site has been identified as a major regeneration area and it offers the ability for further growth through development.
Court ruling
Post year-end, the Company announced the successful outcome of the legal action against two well-funded national tenants to recover unpaid rent. GBP0.52 million has been provided for as expected credit loss relating to these tenants in these financial statements and subsequent to the court ruling all rent arrears of these tenants have been received.
EPRA Unaudited Performance Measures
EPRA disclosures are widely used across the listed property sector and, as such, have been presented below to aid comparison with other companies in this sector.
Detailed below is a summary table showing the EPRA performance measures of the Company
All EPRA performance measures have been calculated in line with EPRA Best Practices Recommendations Guidelines which can be found at www.epra.com.
MEASURE AND DEFINITION PURPOSE PERFORMANCE GBP9.82 million/6.19 pps 1. EPRA Earnings A key measure of a company's underlying operating results and an indication of the extent to which Earnings for operational activities. current dividend payments are supported by earnings. EPRA earnings for year to 31 March 2021 (31 March 2020: GBP13.20 million/8.67 pps) 2. EPRA Net Tangible Assets ('NTA') GBP157.02 million/99.11 pps Assumes that entities buy and sell assets, thereby crystallising certain levels of unavoidable deferred tax. EPRA NTA itas at 31 March 2021 (31 March 2020: GBP147.85 million /93.12 pps) 3. EPRA Net Reinstatement Value ('NRV') GBP168.83 million/ 106.57 pps Assumes that entities never sell assets and aims to represent the value required to rebuild the entity. EPRA NRV as at 31 The EPRA NAV set of metrics make adjustments to March 2021 (31 March the NAV per the IFRS financial statements to 2020 GBP160.34 million/ provide stakeholders with the most relevant 100.99 pps) information on the fair value of the assets and 4. EPRA Net Disposal Value liabilities of a real estate investment company, under different scenarios. ('NDV') GBP157.08 million/ Represents the shareholders' value under a 99.15pps disposal scenario, where deferred tax, financial instruments and certain other adjustments are EPRA NDV as at 31 calculated to the full extent of their March 2021 (31 March liability, net of any resulting tax. 2020 GBP147.86 million/ 93.13pps) 5. EPRA Net Initial Yield ('NIY') A comparable measure for portfolio valuations. Annualised rental income based on the cash 7.37% rents passing at the balance sheet date, less non-recoverable property operating expenses, divided by the market value of the property, This measure should make it easier for investors increased with (estimated) purchasers' costs. to judge themselves, how the valuation of EPRA NIY as at 31 portfolio X compares with portfolio Y. March 2021 (31 March 2020: 8.26%) 6. EPRA 'Topped-Up' NIY A comparable measure for portfolio valuations. This measure incorporates an 8.12% adjustment to the EPRA NIY in This measure should make it easier for investors to judge themselves, how the valuation of respect of the expiration of rent-free periods portfolio X compares with portfolio Y. EPRA 'Topped-Up' NIY (or other unexpired lease incentives such as as at 31 March 2021 discounted rent periods and step rents). (31 March 2020: 8.66%) A 'pure' (%) measure of investment property space 7. EPRA Vacancy Rate that is vacant, based on ERV. 8.96% Estimated Market Rental Value ('ERV') of vacant space divided by ERV of the whole portfolio. EPRA Vacancy Rate as at 31 March 2021 (31 March 2020: 3.68%) 32.94% EPRA Cost Ratio (including direct vacancy costs) as at 31 March 2021 (31 8. EPRA Cost Ratio March 2020: 18.75%) A key measure to enable meaningful measurement of Administrative and operating costs (including the changes in a company's operating costs. and excluding costs of direct vacancy) divided by gross rental income. 22.58% EPRA Cost Ratio (excluding direct vacancy costs) as at 31 March 2021 (31 March 2020: 13.76%) 9. EPRA Capital Expenditure Property which has been held at both the GBP5.98 million for the current and comparative balance sheet dates A measure used to illustrate change in comparable year ended for which there has been no significant capital values. development. 31 March 2021 (31 March 2020:
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