41061 Unite AR22 HI-RES WEB-READY - Flipbook - Page 225
STRATEGIC REPORT
GOVERNANCE
FINANCIAL STATEMENTS
OTHER INFORMATION
4.6b) Lease receivables
The Group accounts for its tenancy contracts offered to commercial and individual tenants as operating leases.
Operating lease contracts with universities contain RPI uplifts and market review clauses.
The lessee does not have an option to purchase the property at the expiry of the lease period.
Maturity analysis of operating lease receivables
The future minimum lease payments receivable under non-cancellable operating leases are as follows:
2022
£m
2021
£m
Year 1
218.7
194.1
Year 2
112.8
78.8
Year 3
73.8
57.9
Year 4
66.8
52.0
Year 5
58.5
46.2
Onwards
311.0
239.0
Total
841.6
668.0
4.7 Capital management
The capital structure of the Group consists of shareholders’ equity and adjusted net debt, including cash held on deposit.
The Group’s equity is analysed into its various components in the Statement of Changes in Equity. The components and
calculation of adjusted net debt is set out in note 4.4. Capital is managed so as to continue as a going concern and to promote
the long-term success of the business and to maintain sustainable returns for shareholders and joint venture partners.
The Group uses a number of key metrics to manage its capital structure:
•
net debt (note 4.4)
•
gearing (note 4.4)
•
LTV (note 2.3a)
•
weighted average cost of investment debt (note 4.5a)
In order to manage levels of adjusted gearing over the medium term, the Group seeks to deliver NAV growth and to
recycle capital invested in lower performing assets into new assets and property developments. £339.0 million of
property assets were sold in 2022 and we plan to sell £100-£150 million of property during 2023. The Group only commits
to schemes where there is a meaningful spread between development yields and funding costs, on investments in its
development and university partnerships pipeline. The Group does not commit to developing new sites until sufficient
equity and funding to fulfil the full cost of the development is secure.
The Board monitors the ability of the Group to pay dividends out of available cash and distributable profits. Based on the
assumption that no shareholders take up the scrip dividend, the full year dividend will be covered by operating cash flows.
The full year dividend is expected to be £130.7 million compared to operating cash flow of £160.2 million.
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