41061 Unite AR22 HI-RES WEB-READY - Flipbook - Page 43
STRATEGIC REPORT
GOVERNANCE
FINANCIAL STATEMENTS
FY 2022
£m
41
OTHER INFORMATION
FY 2021
YoY change
Total
£m
Wholly
owned
£m
Share of
fund/JV
£m
Total
£m
£m
%
87.3
310.9
184.7
68.1
252.8
58.1
23.0%
18.1
10.7
28.8
24.1
5.8
29.9
(1.1)
241.7
98.0
339.7
208.8
73.9
282.7
57.0
20.2%
(66.0)
(24.6)
(90.6)
(58.6)
(21.1)
(79.7)
(10.9)
13.7%
(6.0)
(2.1)
(8.1)
(9.1)
(2.1)
(11.2)
3.1
(72.0)
(26.7)
(98.7)
(67.7)
(23.2)
(90.9)
(7.8)
8.6%
157.6
62.7
220.3
126.1
46.9
173.1
47.2
27.3%
12.1
8.6
20.7
15.0
3.8
18.7
2.0
169.7
71.3
241.0
141.1
50.7
191.8
49.2
Wholly
owned
£m
Share of
fund/JV
£m
223.6
Rental Income
Like-for-like properties
Non-like-for-like properties
Total rental income
Property operating expenses
Like-for-like properties
Non-like-for-like properties
Total property operating
expenses
Net operating income
Like-for-like properties
Non-like-for-like properties
Total net operating income
25.7%
Overheads decreased by £3.8 million, reflecting lower performance related pay as well as underlying cost control. Recurring
management fee income from joint ventures increased to £17.4 million (2021: £15.9 million), driven by higher NOI and
property valuations in USAF and LSAV. Our EBIT margin improved to 67.9% (2021: 62.3%) or 68.4% excluding the impact of
non-recurring restructuring costs relating to the implementation of our new 24/7 operating model.
We are targeting an improvement in our adjusted EBIT margin to 70% in 2023, driven by higher occupancy, rental growth
and further efficiencies over time in areas such as staff costs, procurement and the enhanced use of technology.
Finance costs were held broadly flat at £63.0 million in 2022 (2021: £63.3 million), with reduced borrowings offsetting the
increase in our average cost of debt to 3.4% (2021: 3.0%). £6.4 million of interest costs were capitalised during the year
(2021: £5.2 million) in relation to our development pipeline.
Development (pre-contract) and other costs increased to £5.8 million (2021: £2.8 million), reflecting a non-recurring tax
credit of £2.8 million in the prior year and non-recurring abortive acquisition costs.