41061 Unite AR22 HI-RES WEB-READY - Flipbook - Page 213
STRATEGIC REPORT
GOVERNANCE
FINANCIAL STATEMENTS
211
OTHER INFORMATION
3.4b) Movement in carrying value of the Group’s investments in joint ventures
The carrying value of the Group’s investment in joint ventures increased by £182.5 million during the year ended
31 December 2022 (2021: £195.1 million increase), resulting in an overall carrying value of £1,226.6 million (2021:
£1,044.1 million).
The following table shows how the increase has arisen:
2022
£m
2021
£m
44.5
30.2
1.3
1.1
Recognised in the income statement:
Operations segment result
Non-controlling interest share of Operations segment result
Management fee adjustment related to trading with joint venture
Net valuation gains/(losses) on investment property
4.0
3.0
32.3
88.7
Property disposals
(0.9)
(0.3)
Other
(0.8)
(0.3)
80.4
122.4
4.7
0.6
(4.0)
(3.4)
Recognised in equity:
Movement in effective hedges
Other adjustments to the carrying value:
Profit adjustment related to trading with joint venture
Profit adjustment related sale of property to LSAV
–
(1.9)
Additional capital invested in LSAV
–
157.6
Additional capital invested in USAF
140.9
–
–
(42.2)
LSAV performance fee
USAF distributions received
LSAV distributions received
Increase in carrying value
(19.8)
(19.7)
182.5
(18.6)
(19.4)
195.1
Carrying value at 1 January
1,044.1
849.0
Carrying value at 31 December
1,226.6
1,044.1
3.4c) Transactions with joint ventures
The Group acts as asset and property manager for the joint ventures and receives management fees in relation to
these services.
In addition, the Group is entitled to performance fees from USAF and LSAV if the joint ventures outperform certain
benchmarks. The Group receives either cash or an enhanced equity interest in the joint ventures as consideration for
the performance fee. The Group has recognised the following gross fees in its results for the year.
USAF
LSAV
Asset and property management fees
2022
£m
2021
£m
16.6
15.2
4.8
3.9
21.4
19.1
LSAV performance fee
–
41.9
Investment management fees
–
41.9
21.4
61.0
Total fees
On an EPRA basis, fees from joint ventures are shown net of the Group’s share of the cost to the joint ventures.
