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Exhibit 1 Land Securities Group plc 2002-2003 Balance Sheets (£ millions)
Fixed Assets
Intangible asset – goodwill 38.9 36.7
Tangible assets
Investment properties
Freehold 5,715.3 5,759.9
Leasehold 2,084.7 2,064.0
Source: Land Securities Group plc, 2002 and 2003 annual reports.
a
Operating properties are those managed by LSG under contract as part of its “total property outsourcing” strategy. These assets do
not satisfy the definition of investment properties and thus must be reported at depreciated cost.
b
LSG engaged in a capital restructuring in July 2002 that included a substantial dividend payment to shareholders. This restructuring
effectively exchanged one type of common stock shares for another and accounts for the reduction of both “called up share capital”
and “other reserves,” as well as much of the increase in “profit and loss account.”
Exhibit 2 Land Securities Group plc 2002-2003 Income Statements (£ millions)
Revenue
Rental income/other 525.9 519.7
Total property outsourcing/joint venture 406.2 658.3
Other income 93.5 61.5
Total revenue 1,025.6 1,239.5
Expenses
Rentals (124.5) (164.4)
Direct property or contract expenditures (249.9) (399.4)
Indirect property or contract expenditures (50.6) (57.1)
Depreciation/amortization (21.0) (41.9)
Other (62.8) (26.5)
Total expenses (508.8) (689.3)
Source: Land Securities Group plc, 2002 and 2003 annual reports.
Exhibit 3 Land Securities Group plc, 1999-2003 Summary Financial Data (£ millions)
1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001c 2002c 2003c
Balance Sheet
Total Assets 6,004 4,989 4,712 4,426 5,373 5,482 5,696 6,338 7,091 7,483 7,791 8,509 8,868 9,008
Investment Properties:
Historical Cost 2,213 2,478 2,693 2,872 2,981 3,092 3,264 3,411 3,407 3,624 3,871 4,210 4,423 4,785
Revaluation Reserve 3,398 2,231 1,608 1,227 2,051 2,078 2,002 2,349 3,029 3,287 3,583 3,696 3,377 3,039
Open Market Valuea 5,611 4,709 4,301 4,099 5,032 5,170 5,266 5,760 6,436 6,911 7,454 7,906 7,800 7,824
Income Statement
Revenue 296 360 407 437 449 460 462 471 484 500 528 647 1,026 1,240
Expenses
Profit on Ordinary Activities (after (172) (204) (242) (267) (268) (280) (290) (293) (287) (284) (276) (414) (762) (1,010)
tax) 124 156 165 170 181 180 172 178 197 216 252 233 264 230
Source: Compiled by casewriter from Land Securities Group plc, 1990–2003 annual reports.
a
Open Market Value for investment properties was £5,211 million at the end of fiscal 1989.
b
Operating Cash Flows represent cash flows after interest and taxation. This amount is comparable to cash flows from operations in the U.S.
c
The dramatic increase in revenues and expenses for 2001–2003 reflects the incorporation of “total property outsourcing” into LSG’s strategy.
Exhibit 5 Land Securities Group plc, 2003 Investment Property Portfolio
Median
Type # of Properties Valuation Rental Income Vacancy Rate Tenant Lease
Investment Properties by Location (all amounts are percent of investment property value)
Scotland/
Central / Inner Northern
Type London South East Midlands Wales North Ireland TOTAL
Offices 41 1 - - - - 42
Retail:
Shopping Centers 9 4 5 5 7 6 36
Retail Warehouses 4 2 1 5 2 14
Industrial - 5 - - - - 5
Other 1 1 - - 1 - 3
TOTAL 51% 15% 7% 6% 13% 8% 100%
Major Tenants
Note: The 10 largest tenants of LSG investment properties account for 23.8% of current rents. The top three are Central Government (9.6%), Allen and Overy (2.8%), and
Dresdner Bank (2.2%).
Exhibit 10 Condensed Balance Sheets and Income Statements
Footnote excerpt: Real estate is carried at cost, net of accumulated depreciation . . . depreciation is provided on a
straight-line basis over the assets’ estimated useful lives from 7 to 40 years.
Footnote excerpt: Investment properties are carried at open market values, based on the latest professional
valuations. Unrealized capital surpluses and deficits, including those arising on the periodic revaluation of
properties, are taken to the revaluation reserve.
Fair Value Model: Hongkong Land Holdings (December 31, 2003; $ millions)
Footnote excerpt: Investment properties are carried in the balance sheet at fair value, representing open market
value determined annually by independent valuers. Changes in fair value are recorded in the consolidated
profit and loss account.
Source: Compiled by casewriter from respective 2003 annual reports.