41061 Unite AR22 HI-RES WEB-READY - Flipbook - Page 190
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THE UNITE GROUP PLC | Annual Report and Financial Statements 2022
NOTES TO THE FINANCIAL STATEMENTS continued
Section 2: Results for the year
This section focuses on the results and performance of the Group and provides a reconciliation between
the primary statements and EPRA performance measures. On the following pages you will find disclosures
explaining the Group’s results for the year, segmental information, taxation, earnings and net tangible asset
value (NTA) per share.
The Group uses EPRA earnings, adjusted earnings and NTA movement as key comparable indicators across
other real estate companies in Europe. EPRA earnings, adjusted earnings and NTA movement are Alternative
Performance Measures (APMs), further details of which are set out in section 8.
IFRS performance measures
Note
2022
£m
2021
£m
2022
pps
2021
pps
Profit*
2.2b
355.1
342.4
88.9p
85.9p
Net assets*
2.3d
3,792.1
3,527.8
945p
880p
* Profit after tax represents profit attributed to the owners of the parent company, and net assets represents equity attributable to the owners of the
parent company.
EPRA performance measures
EPRA earnings
Note
2022
£m
2021
£m
2022
pps
2021
pps
2.2c
161.9
152.0
40.5p
38.1p
Adjusted earnings**
2.2c
163.4
110.1
40.9p
27.6p
EPRA NTA
2.3d
3,715.2
3,532.2
927p
882p
** Adjusted earnings are calculated as EPRA earnings after adding back abortive costs (2021: less the LSAV performance fee), in order to reflect the comparable
performance of the Group’s underlying operating activities.
2.1 Segmental information
The Board of Directors monitors the business along two activity lines, Operations and Property. The reportable segments
for the years ended 31 December 2022 and 31 December 2021 are Operations and Property.
The Group undertakes its Operations and Property activities directly and through joint ventures with third parties.
The joint ventures are an integral part of each segment and are included in the information used by the Board to monitor
the business.
Detailed analysis of the performance of each of these reportable segments is provided in the following sections 2.2 to 2.3.
The Group’s properties are located exclusively in the United Kingdom. The Group therefore has one geographical segment.
2.2 Earnings
EPRA earnings and adjusted earnings amends IFRS measures by removing principally the unrealised investment property
valuation gains and losses such that users of the financials are able to see the extent to which dividend payments
(dividend per share) are underpinned by earnings arising from purely operational activity. In 2022, in consideration of
EPRA’s focus on presenting clear comparability in results from recurring operational activities, EPRA earnings excludes
abortive costs. In 2021, EPRA earnings was adjusted to remove the impact of the LSAV performance fee. Given the
quantum of the LSAV performance fee, it was excluded from adjusted earnings to improve the comparability of results
year-on-year. The reconciliation between profit attributable to owners of the parent company and EPRA earnings is
available in note 2.2b.
The Operations segment manages rental properties, owned directly by the Group or by joint ventures. Its revenues are
derived from rental income and asset management fees earned from joint ventures. The way in which the Operations
segment adds value to the business is set out in the Operations review on pages 32–34. The Operations segment is the
main contributor to adjusted earnings and adjusted EPS and these are therefore the key indicators which are used by the
Board to monitor the Operations business.
The Board does not manage or monitor the Operations segment through the balance sheet and therefore no segmental
information for assets and liabilities is provided for the Operations segment.
