Glossary

Base rate
is the rate at which the Bank of England lends to other financial institutions.
Book value
is the amount at which assets and liabilities are reported in the financial statements.
BREEAM
is the European Building Research Establishment Environmental Assessment Method.
Company
is A & J Mucklow Group plc.
Development construction cost
is the total cost of construction of a project to completion, excluding site values and finance costs.
Development properties
are properties held for development purposes and are shown as non-current assets in the balance sheet.
Earnings per share (EPS)
is earnings, in pence, attributable to each equity share, and consists of profit/(loss) after tax divided by the weighted average number of shares in issue during the period.
EPRA
is the European Public Real Estate Association.
EPRA earnings
are the profit/(loss) after taxation excluding investment and development property and derivative financial instrument revaluations and gains/(losses) on disposals of investment, development and trading properties and their related taxation whether deferred or otherwise.
EPRA net asset value
is the net asset value, excluding deferred tax on property revaluation surpluses and including the surplus on trading properties and excluding the fair value of derivative financial instruments.
Equivalent yield
represents the return a property will produce based upon the timing of the income received. In accordance with usual practice, the equivalent yields (as determined by the Group’s external valuers) assume rent received annually in arrears and on values including prospective purchasers’ costs.
Estimated rental value (ERV)
is the Group’s external valuers’ opinion as to the open market rent which, on the date of valuation, could reasonably be expected to be obtained on a new letting or rent review of a property.
Finance lease
is a lease that transfers substantially all the risks and rewards of ownership from the lessor to the lessee.
Gearing
is total borrowings, including bank overdrafts, less short-term deposits, corporate bonds and cash, at book value, plus non-equity shareholders’ funds as a percentage of equity shareholders’ funds.
Group
is A & J Mucklow Group plc and its subsidiaries.
IFRS
is International Financial Reporting Standards.
Lease incentives
are any incentive offered to occupiers to enter into a lease. Typically the incentive will be an initial rent-free period, or a cash contribution to fit-out or similar costs. For accounting purposes, under IFRS, the value of the rent-free period is spread over the life of the lease.
LIBOR
is the London Interbank Offered Rate, the interest rate charged by one bank to another for lending money.
Mark to market
is the difference between the book value of an asset or liability and its market value.
Market value
in relation to property assets is an opinion of the best price at which the sale of an interest in the property would complete unconditionally for cash consideration on the date of valuation (as determined by the Group’s external valuers). In accordance with usual practice, the Group’s external valuers report valuations net, after the deduction of the prospective purchaser’s costs, including stamp duty, agents’ and legal fees.
Net asset value (NAV) per share
is total equity divided by the number of Ordinary shares in issue at the period end.
Net rental income
is the rental income receivable in the period after payment of ground rents and net property outgoings. Net rental income will differ from annualised net rents and passing rent due to the effects of income from rent reviews, net property outgoings and accounting adjustments for fixed and minimum guaranteed rent reviews and lease incentives.
Occupancy rate
is the area of let units expressed as a percentage of the total area of the portfolio, excluding development properties.
Planning Consent
gives consent for a development, and covers matters such as use and design. Full details of the development scheme must be provided in an application for full planning consent, including detailed design, external appearance and landscaping before a project can proceed. Outline planning consent establishes the broad outline of the scheme and is subject to the later approval of the details of the design.
Pre-let
is a lease signed with an occupier prior to completion of a development.
Property Income Distribution (PID)
As a REIT the Group is obliged to distribute 90% of the tax-exempt profits. These dividends, which are referred to as PIDs, are subject to withholding tax at the basic rate of income tax. Certain classes of shareholders may qualify to receive the dividend gross. See our website (www.mucklow.com) for details. The Group can also make other (normal) dividend payments which are taxed in the usual way.
Qualifying activities/qualifying assets
is the ownership (activity) of property (assets) which is held to earn rental income and qualifies for tax-exempt treatment (income and capital gains) under UK REIT legislation.
Real Estate Investment Trust (REIT)
is a listed property company which qualifies for and has elected into a tax regime, which exempts qualifying UK property rental income and gains on investment property disposals from corporation tax. A & J Mucklow Group converted to REIT status on 1 July 2007.
Total shareholder return
is the growth in value of a shareholding over a specified period, assuming that dividends are reinvested to purchase additional units of stock.
Trading properties
are properties held for trading purposes and are shown as current assets in the balance sheet.
Vacancy rate
is the area of vacant properties expressed as a percentage of the total area of the portfolio, excluding development properties.
Yield
is the annualised net rents generated by the portfolio expressed as a percentage of the portfolio valuation, excluding development properties.
Yield shift
is a movement (negative or positive) in the equivalent yield of a property asset.