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A glossary of terms is available here.

Annual General Meeting (AGM)

The annual shareholder meeting of the Company.

Building Research Establishment Environmental Assessment Method (BREEAM)

BREEAM sets the standard for best practice in sustainable building design, construction and operation. Buildings are assessed on a broad range of environmental factors and can be given ratings ranging from pass to outstanding.

Capital value return

The valuation movement and realised surpluses or deficits arising from the Group’s investment portfolio expressed as a percentage return on the valuation at the beginning of the period adjusted for acquisitions and capital expenditure.

Conservation area

A conservation area is a heritage asset in an area of special architectural interest, the character or appearance of which is desirable to preserve of enhance. In dealing with development in conservation areas, the general aim of authorities is to ensure that the quality of townscape is preserved or enhanced, though legislation gives protection to individual buildings considered to be particular heritage, significance and values to an area.


Shaftesbury PLC whose shares are listed on the London Stock Exchange.

Derivative financial instruments

An interest rate swap is a financial derivative where two parties exchange future interest payments based on a specified notional amount. One party pays fixed interest and the other pays a floating rate usually on LIBOR.

Diluted earnings per share

Earnings per share adjusted to include the potentially dilutive effect of outstanding options granted over ordinary shares.

Diluted net asset value

Net asset value per share adjusted to include the potentially dilutive effect of outstanding options granted over ordinary shares.

Earnings per share (EPS)

Profit after tax divided by the weighted average number of ordinary shares in issue during the period.

Equivalent yield

Equivalent yield is the internal rate of return from an investment property, based on the gross outlays for the purchase of a property (including purchase costs), reflecting reversions to current market rent, and such items as voids and non-recoverable expenditure but disregarding potential changes in market rents.

European Public Real Estate Association (EPRA)

EPRA develops policies for standards of reporting disclosure, ethics and industry practices.

EPRA adjusted EPS

EPS adjusted to determine the level of recurring income arising from operational activities. It excludes all items which are not relevant to the underlying and recurring portfolio performance.

EPRA adjusted net asset value

EPRA adjusted net asset value aims to provide a consistent long-term performance measure, by adjusting net asset value for assets and liabilities that are not expected to crystallise such as the movement in derivative financial instruments and deferred tax on property valuation movements.

EPRA adjusted triple net asset value

EPRA adjusted net asset value incorporating the fair value of debt.

Estimated rental value (ERV)

ERV is the market rental value of properties owned by the Group, estimated by the Group’s valuers.

Fair Value

The amount at which an asset or liability could be exchanged between two knowledgeable willing unconnected parties in an arm’s length transaction at the valuation date.


Nominal value of Group borrowings expressed as a percentage of Group shareholders’ funds, adjusted to exclude the movement in derivative financial instruments and deferred tax on property valuation movements.


Group refers to Shaftesbury PLC, its subsidiaries and its 50% interest in the Longmartin joint venture.

Gross domestic product (GDP)

GDP refers to the market value of all final goods and services produced in a given period.

Head lease

A lease under which the Group holds an investment property.

Initial yield

The initial yield is the net initial income at the date of valuation expressed as a percentage of gross valuation. Yields reflect net income after deduction of any ground rents, head rents, rent charges and estimated irrecoverable outgoings.

Interest cover ratio

The interest cover is a measure of the number of times the Group can make interest payments with its net property income.

International Financial Reporting Standards (IFRS)

IFRS is a set of accounting standards developed by the International Accounting Standards Board, an independent, not-for-profit organisation.

Investment Property Databank (IPD)

IPD is an independent provider of real estate performance analysis publishing detailed information on real estate market returns.

Joint venture

A joint venture is an entity that is controlled by two or more parties under a contractual agreement. Decisions on financial and operating policies essential to the operation, performance and financial position of the venture require agreement from all parties.

Lease incentives

An incentive offered to a prospective tenant to enter into a lease. For Shaftesbury this is usually in the form of an initial rent free period. under IFRS, the value of the lease incentive is spread over the non-cancellable life of the lease.

Like-for-like portfolio

The like-for-like portfolio includes all properties that have been held throughout both periods, excluding any properties which were acquired or sold.

Listed building

A listed building is a building that has been placed on the Statutory List of Buildings of Special Architectural of Historic Interest. A listed building may not be demolished, extended of altered without special permission from the local planning authority.

Loan-to-value ratio

Nominal value of borrowings expressed as a percentage of the fair value property assets.

London Interbank Offer Rate (LIBOR)

LIBOR is the reference rate based on the interest rates at which banks borrow unsecured funds from other banks in the London wholesale money markets.

Long Term Incentive Plan (LTIP)

An arrangement under which an employee is awarded shares in the Company at nil cost, subject to a period of continued employment and the attainment of NAV and TSR targets over a three-year vesting period.

Net asset value (NAV)

Equity shareholders’ funds divided by the number of ordinary shares at the balance sheet date.

Net asset value return

The change in diluted net asset value per ordinary share expressed as a percentage of the diluted net asset value per share at the beginning of the period.

Property Income Distribution (PID)

A PID is a distribution by a REIT to its shareholders paid out of qualifying profits. A REIT is required to distribute at least 90% of its qualifying profits as a PID to its shareholders.

Real Estate Investment Trust (REIT)

A REIT is a tax designation for an entity or group investing in real estate that reduces or eliminates corporation tax providing certain criteria obligations set out in tax legislation are met.

Total return

A combination of the capital value return and net property income from the portfolio for the period expressed as a percentage return on the valuation at the beginning of the period adjusted for acquisitions and capital expenditure.

Total Shareholder Return (TSR)

The change in the market price of an ordinary share plus dividends reinvested expressed as a percentage of the share price at the beginning of the period.

UK Corporate Governance Code

The June 2014 version of the FRC’s UK Corporate Governance Code for listed companies.