41061 Unite AR22 HI-RES WEB-READY - Flipbook - Page 44
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THE UNITE GROUP PLC | Annual Report and Financial Statements 2022
FINANCIAL REVIEW continued
FINANCIAL PERFORMANCE continued
IFRS earnings
IFRS profit before tax increased to £358.0 million in the year (2021: £343.1 million), driven by the increase in adjusted
earnings of £53.3 million, a revaluation gain net of losses on disposal of £119.2 million (2021: £182.2 million) and £70.7 million
from the positive revaluation of interest rate swaps on the back of rising interest rates (2021: £6.7 million).
Adjusted earnings
LSAV performance fee
Abortive acquisition costs
2022
£m
2021
£m
163.4
110.1
–
41.9
(1.5)
–
EPRA earnings
161.9
152.0
Valuation gains/(losses) and loss on disposal
119.2
182.2
70.7
6.7
Changes in valuation of interest rate swaps and debt break costs
6.2
2.2
IFRS profit before tax
358.0
343.1
Adjusted earnings per share
40.9p
27.6p
IFRS basic earnings per share
88.9p
85.9p
Non-controlling interest and other items
A reconciliation of profit before tax to adjusted earnings and EPRA earnings is expanded in section 7 of the financial statements.
EPRA NTA growth
EPRA net tangible assets (NTA) per share, our key measure of NAV, increased by 5% to 927p at 31 December 2022
(31 December 2021: 882p). EPRA net tangible assets were £3,715 million at 31 December 2022, up £183 million from
£3,532 million a year earlier.
The main drivers of the £183 million increase in EPRA NTA and 45 pence increase in EPRA NTA per share were revaluation
gains on investment properties driven by rental growth and higher occupancy, development surpluses and retained profits,
which more than offset the impact of losses on disposals and a further provision for fire safety capex.
£m
Diluted
pence per
share
3,532
882
123
31
Yield movement
(12)
(3)
Fire safety capex
EPRA NTA as at 31 December 2021
Rental growth
(20)
(5)
Development surplus
46
11
Disposals and associated transaction costs
(17)
(4)
Retained profits/other
EPRA NTA as at 31 December 2022
63
15
3,715
927
IFRS net assets increased by 7% in the year to £3,792.1 million (31 December 2021: £3,527.8 million), principally driven
by positive revaluation movements and retained profits. On a per share basis, IFRS NAV increased by 7% to 945p.
Property portfolio
The valuation of our property portfolio at 31 December 2022, including our share of properties assets held in USAF and LSAV,
was £5,690 million (31 December 2021: £5,287 million). The £403 million increase in portfolio value reflects the valuation
movements outlined above, a £177 million increase in the Group’s share of USAF, acquisition of a BTR investment property
for £71 million, £256 million of completed disposals, and capital expenditure and interest capitalised on developments of
£284 million.