British Land Company PLC – Annual report – 31 March 2023
Industry: real estate
17 Net debt (extract)
Loan to Value (LTV)
LTV is the ratio of principal amount of gross debt less cash, short term deposits and liquid investments to the aggregate value of properties and investments, excluding non-controlling interests. EPRA LTV has been disclosed in Table E.
1. Prior year comparatives have been restated for a change in accounting policy in respect of rental concessions. Refer to Note 1 for further information.
2. Cash and short term deposits exclude tenant deposits of £26m (2021/22: £37m).
3. The £19m (2021/22: £22m) difference between other investments and plant, property and equipment per the balance sheet totalling £80m (2021/22: £68m), relates to a right-of-use asset recognised under a lease which is classified as property, plant and equipment which is not included within Total assets for the purposes of the LTV calculation.
4. Cash and short term deposits exclude tenant deposits of £49m (2021/22: £61m).
Net Debt to EBITDA
Net Debt to EBITDA is the ratio of principal amount of gross debt less cash, short term deposits and liquid investments to earnings before interest, tax, depreciation and amortisation (EBITDA).
The Group ratio excludes non-recourse and joint venture borrowings and includes distributions and other receivables from nonrecourse companies and joint ventures.
1. Cash and short term deposits exclude tenant deposits of £26m (2021/22: £37m).
2. Underlying Profit due to joint ventures £92m (2021/22: £84m) as disclosed in the consolidated income statement and Underlying Profit due to non-recourse companies £52m (2021/22: £49m).
3. Distributions and other receivables from joint ventures £73m (2021/22 £57m) as disclosed in the consolidated statement of cash flows and distributions and other receivables from non-recourse companies £34m (2021/22: £40m).
4. Cash and short term deposits exclude tenant deposits of £49m (2021/22: £61m).
British Land Unsecured Financial Covenants
The two financial covenants applicable to the Group unsecured debt are shown below:
In calculating Adjusted Capital and Reserves for the purpose of the unsecured debt financial covenants, there is an adjustment of £161m (2021/22: £174m) to reflect the cumulative net amortised exceptional items relating to the refinancings in the years ended 31 March 2005, 2006 and 2007.
1. Prior year comparatives have been restated for a change in accounting policies in respect of rental concessions and tenant deposits. Refer to Note 1 for further information.
2. Cash and short term deposits exclude tenant deposits of £26m (2021/22: £47m).
3. The £19m (2021/22: £22m) difference between other investments and plant, property and equipment per the balance sheet totalling £80m (2021/22: £68m), relates to a right-of-use asset recognised under a lease which is classified as property, plant and equipment which is not included within Total assets for the purposes of the LTV calculation.
Accounts examples 