41061 Unite AR22 HI-RES WEB-READY - Flipbook - Page 199
STRATEGIC REPORT
GOVERNANCE
FINANCIAL STATEMENTS
OTHER INFORMATION
The Group earns revenue from the following activities:
Rental income*
Operations segment
Management fees
Operations segment
LSAV performance fee
Unallocated
Impact of non-controlling interest on management fees
Total revenue
*
Note
2022
£m
2021
£m
2.2a
241.7
209.0
17.6
16.2
–
41.9
259.3
267.1
(0.2)
259.1
(0.2)
266.9
EPRA earnings includes £339.7 million (2021: £282.7 million) of rental income, which is comprised of £241.7 million (2021: £209.0 million)
recognised on wholly owned assets and a further £98.0 million (2021: £73.7 million) from joint ventures, which is included in share of
joint venture profit/(loss) in the consolidated income statement.
The LSAV and USAF performance fees are constrained this year due to an inability to meet the highly probable criteria
that the fees would be earned. In the year to 31 December 2021, the LSAV performance fee under the previous agreement
crystallised and a total fee of £41.9 million was recognised.
The cost of sales included in the consolidated income statement includes property operating expenses of £70.3 million
(2021: £64.4 million).
2.5 Tax
As a REIT, rental profits and gains on disposal of investment properties are exempt from corporation tax. The Group pays
UK corporation tax on the profits from its residual business, including management fees received from joint ventures,
together with UK income tax on rental income that arises from investments held by offshore subsidiaries in which the
Group holds a non-controlling interest.
Accounting policies
The tax charge for the year is recognised in the income statement and the statement of comprehensive income,
according to the accounting treatment of the related transaction. The tax charge comprises both current and
deferred tax.
Current tax is the expected tax payable or receivable on the taxable income or loss for the year and any adjustment to
tax payable in respect of previous years. The current tax charge is based on tax rates that are enacted or substantively
enacted at the year-end.
Deferred tax arises due to certain temporary differences between the carrying amounts of assets and liabilities
for financial reporting purposes and those for taxation purposes. Temporary differences relating to investments in
subsidiaries and joint ventures are not provided for to the extent that they will probably not reverse in the foreseeable
future. The amount of deferred tax provided is based on the expected manner of realisation or settlement of the
carrying amount of assets and liabilities.
As a REIT, rental profits and gains on disposal of investment properties and property rich investments are exempt
from corporation tax. As a result, no deferred tax provision has been recognised at the balance sheet date in respect of
property assets or units in USAF and LSAV held by members of the REIT group.
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