|Financial highlights Non-statutory measures||2017||2016||Statutory measures||2017||2016|
|EPRA NAV per share (pence)||471.2||460.5||NAV per share (pence)||450.9||431.0|
|Total accounting return(2) (%)||6.0||5.6||Total dividend per share (pence)||6.28||6.00|
|Trading profit (£m)||64.6||56.1||Profit before tax (£m)||70.3||66.9|
|Adjusted EPRA EPS(3) (pence)||13.3||9.7||Basic EPS (pence)||26.9||24.1|
|See-through loan-to-value (%)||24.2||30.5||Group net borrowings (£m)||433.8||470.0|
- NAV per share up 4.6% to 450.9 pence (2016: 431.0 pence).
- Total accounting return for the year up 0.4ppt to 6.0% (2016: 5.6%).
- Trading profit up 15.2% to £64.6m (2016: £56.1m).
- Total dividend up 4.7% to 6.28 pence per share (2016: 6.00 pence per share).
- See-through LTV down 6.3ppt to 24.2% (2016: 30.5%).
- Successfully refinanced majority of debt facilities with new £475m unsecured facility post year end, providing greater flexibility and longer debt maturity at lower cost.
Building momentum in executing our more focused strategy based on four strategic objectives, with a clear focus on sectors with long-term structural growth characteristics.
Portfolio focus and capital discipline:
- Good progress achieved in shifting portfolio mix by increasing exposure to income producing assets to 51% (2016: 45%), with intention to further increase this over time.
- Sold Nine Elms Square land for £190m net proceeds, £27m small assets, Swansea student housing for £87m net proceeds post year end and intend to sell £100-150m retail and small assets in 2018, with terms agreed on c. £40m of this.
Accelerate our commercial development activity
- Delivered 1.4m sq ft new space with total GDV of £216m, including 0.9m sq ft industrial and logistics space of which we will retain £66m, with 1.6m sq ft committed pipeline at start of 2018 expected to grow further during the year.
- Prepared pipeline to deliver continued growth in 2019 and 2020 subject to tenant demand, with 7.5m sq ft medium term A1 industrial and logistics pipeline which has a GDV of c. £700m and ERV of c. £45m of which we expect to retain the majority.
Grow our residential and housebuilding business
- Sold 54 acres of residential land to third party housebuilders for £56m (2016: £48m) at or above book value, with at least similar volume expected for 2018.
- Delivered 43% growth in St. Modwen Homes’ volumes to 694 units sold (2016: 485), driving 52% growth in pre-tax profits to £23.3m (2016: £15.3m), with up to 25% growth in volumes expected for 2018.
Cement and grow our regeneration reputation
- Started next phase of development of academic facilities and student housing at Bay Campus, Swansea, having released £87m of capital from the sale of the first phase.
- Progressed development of NCGM market facilities following the sale of the first ten acres of land and further phases of mixed-use development at Longbridge.
- Secured two major new residential schemes in Wantage and Buckover for combined 4,500 new homes on a ‘capital light’ basis.