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CAPITAL & COUNTIES PROPERTIES PLC - Audited Preliminary Results for the year ended 31 December 2013

Release Date: 25/02/2014 09:00
Code(s): CCO     PDF:  
Wrap Text
Audited Preliminary Results for the year ended 31 December 2013

Capital & Counties Properties PLC
(Incorporated and registered in the United Kingdom and
Wales with registration Number 07145041 and registered in
South Africa as an external company with Registration
Number 2010/003387/10)
JSE code: CCO
ISIN: GB00B62G9D36

25 February 2014

CAPITAL & COUNTIES PROPERTIES PLC ("Capco")

AUDITED PRELIMINARY RESULTS FOR THE YEAR ENDED 31 DECEMBER 2013
Ian Durant, Chairman of Capco, commented: "This was another year of significant performance for Capco. Our focus on
London and our strong financial position will enable us to build on the momentum and continue to deliver market-leading total
returns for our shareholders from both our landmark estates."

Ian Hawksworth, Chief Executive of Capco, commented: "Our strategy is clear and focused. The creative place-making
strategy at Covent Garden has established the estate as a world-class retail and dining destination. At Earls Court, a number of
major planning and land assembly milestones, including the receipt of outline planning consent for the Masterplan, have
enabled us to drive further momentum as we progress this exciting scheme."

Key highlights for the year

Strong valuation performance

    -    22 per cent increase in EPRA adjusted, diluted NAV to 249 pence per share (2012: 203 pence)
    -    20 per cent (like-for-like) increase in total property value to GBP2.3 billion (2012: GBP1.7 billion)
    -    Proposed final 2013 dividend of 1 pence per share giving a full-year dividend of 1.5 pence per share
    -    23 per cent total return for the year

Value growth through continued transformation at Covent Garden

    -    Total property value of GBP1,156 million, up 19 per cent (like-for-like) (2012: GBP952 million)
    -    Strong growth in ERV, up 11 per cent (like-for-like) to GBP58 million
    -    Revised ERV target of GBP75 million by December 2016
    -    New leases and renewals at 11.6 per cent above December 2012 ERV
    -    12 new retailer and restaurants signed including Dior Beauty, Burberry Beauty Box and Shake Shack
    -    Resolution to grant planning consent for Kings Court and Carriage Hall developments

Value creation through achievement of further milestones at Earls Court Properties

    -    Earls Court interests valued at GBP934 million, up 25 per cent (like-for-like) (2012: GBP574 million)
    -    Outline planning consent granted for the Earls Court Masterplan
    -    Submission of detailed planning application for Earls Court Village, progressing the design of the scheme from
         the outline planning consent
    -    TfL Board approval received in February 2014 for proposed joint venture (Capco share 63 per cent) in respect
         of EC1 & EC2
    -    Exercise of option in relation to the Conditional Land Sale Agreement ("CLSA") with LBHF
    -    Acquisition of remaining 50 per cent interest at Empress State and proposals submitted for conversion to
         residential

Lillie Square preparing for sales launch

    -    Lillie Square valued at GBP153 million (Capco's share), up 31 per cent (like-for-like) (2012: GBP104 million)
    -    Design enhancements to the original scheme consented by LBHF
    -    Sales and marketing launch expected shortly

Strong financial position

    -    Group LTV 15 per cent (2012: 10 per cent)
    -    Cash and available facilities of GBP287 million (2012: GBP401 million) 
    -    New GBP665 million unsecured revolving credit facility agreed for Covent Garden

FINANCIAL HIGHLIGHTS

                                                                           Comprising             2013                2012
23% Total return in 2013
      EPRA adjusted net asset value                                                          GBP1,912m           GBP1,553m
      EPRA adjusted diluted net asset value per share                             22%             249p                203p
      Dividend per share                                                           1%             1.5p                1.5p
22% Total property return in 2013
      Total property portfolio                                                    18%        GBP2,251m           GBP1,721m
      Profits on disposal                                                          1%           GBP13m              GBP35m
      Net rental income                                                            3%         GBP64.8m            GBP65.3m
Underlying earnings per share                                                                     1.0p                1.8p

ENQUIRIES

Capital & Counties Properties PLC:

Ian Hawksworth                           Chief Executive                          +44 (0)20 3214 9188
Soumen Das                               Finance Director                         +44 (0)20 3214 9183
Michelle McGrath                         Head of Investor Relations               +44 (0)20 7297 6093

Media enquiries:

Sarah Hagan                              Director of Communications               +44 (0)20 3214 9185
UK:                                      Michael Sandler / Wendy Baker,           +44 (0)20 7796 4133
                                         Hudson Sandler
SA:                                      Fred Cornet /Nicholas Williams/          +27 (0)11 447 3030
                                         Aletha Johnson
                                         Instinctif Partners

A presentation to analysts and investors will take place today at 9:00am GMT at UBS, 1 Finsbury Avenue, London,
EC2M 2PP. The presentation will also be available to international analysts and investors through a live audio call and
webcast and after the event on the Group's website www.capitalandcounties.com.

A copy of this press release is available for download from our website at www.capitalandcounties.com and hard copies can be
requested via the website or by contacting the Company (email feedback@capitalandcounties.com or telephone +44 (0)20
3214 9153).

CHAIRMAN'S STATEMENT
I am pleased to report that 2013 was a year of excellent performance for Capco. This is our fourth set of annual results
following our establishment as an independent company, a period in which the business has grown in value and capability with
a strong focus on its two estates in central London, Covent Garden and Earls Court Properties. In 2013, significant milestones
were achieved across the business as Capco continued to execute its strategy to generate market-leading total returns for
shareholders.

At Covent Garden, ERV increased by 11 per cent to GBP58.0 million and we have welcomed a number of luxury brands to the
estate, including Dior Beauty, Burberry Beauty Box and Miller Harris. In December 2013, Westminster Council resolved to
grant planning consent for a redevelopment of Kings Court and Carriage Hall which will cover over 90,000 square feet, our first
major development at Covent Garden.

The Earls Court Masterplan has achieved outline planning consent and a detailed planning application in respect of Earls Court
Village to progress the design of the scheme has been submitted. As the development is implemented, the local community will
benefit through commitments made under the Section 106 agreement. Discussions with Transport for London ("TfL") regarding
a proposed joint venture to enable the development of EC1 & EC2 in line with the Earls Court Masterplan are progressing well.
At Lillie Square, our joint venture is preparing to launch the first phase of a residential scheme that will provide over 800 new
homes.

Following recent investment to enhance the Olympia venue, the exhibitions business has been re-launched as Olympia
London.

In December 2013 the Company became a constituent of the JSE 40 index in South Africa which comprises the largest
companies listed on the Johannesburg Stock Exchange. Capco remains a member of the FTSE 250 index in the UK.

Results and Dividends

In 2013, Capco delivered strong performance with a total return of 23 per cent, of which the main component was the increase
in EPRA adjusted, diluted NAV per share from 203 pence to 249 pence. The valuation of the Group's property assets
increased by 19.9 per cent on a like-for-like basis. Total shareholder return was 37 per cent.

The Directors are proposing a final dividend of 1.0 pence per share, bringing the total dividend paid and payable for 2013 to 1.5
pence per share.

I would like to thank the Executive Directors and all Capco's staff for their hard work and commitment during 2013 which has
generated the Group's performance.

The Board and Its Activities

Capco's Board operates openly and transparently, allowing dialogue and debate between the Executive and Non-executive
Directors. The effective operation of the Board was endorsed by an external Board evaluation undertaken during the year. I
would like to thank the Non-executive Directors for their continued commitment during 2013.

During the year, the Board considered the Group's strategy and confirmed that the focus on central London retail and
residential property, with the flexibility to consider non-core opportunities, remained appropriate.

Community

Our corporate strategy is complemented by continued investment and participation in the communities where our estates are
based. Many of our staff participated in our Corporate Responsibility ("CR") programme during the year, contributing over 515
hours to supporting projects. In 2013 the CR programme included fund raising events for The Sir Simon Milton Foundation and
the Covent Garden charity Mousetrap Theatre Projects, engagement with schools in both Earls Court and Covent Garden and
the sponsorship and organisation of a Community Fun Day at Earls Court.

Moving Forward

London continues to thrive as a global city and the value of this remains attractive to investors. As we begin 2014,
macroeconomic conditions appear to be improving, but we must not be complacent and we will continue to focus on the
delivery of Capco's strategy.

I am confident that this clear strategy, with its focus on London, and Capco's strong financial position will enable the Company
to capitalise on the momentum of 2013 and continue to deliver attractive returns for shareholders, whilst embarking on exciting
place-making initiatives at both of our landmark estates.

Ian Durant

Chairman

25 February 2014

CHIEF EXECUTIVE'S REVIEW
Capco performed strongly in 2013 as a result of the strategy to grow value at Covent Garden and create value at Earls Court.
Adjusted NAV per share grew 22.4 per cent to 249 pence per share, driven by a total property return of 21.9 per cent.
Underlying earnings were 1.0 pence per share in 2013.

The central London property market continues to perform strongly, with a deep pool of investors and occupiers. London
continues to thrive as a global city, benefitting the retail and residential sectors on which Capco focuses.

The creative place-making strategy at Covent Garden has again enabled the estate to outperform other areas in central
London. The Group's vision for Earls Court has led to the outline planning consent for a 10.1 million sq ft scheme, adding
further momentum to the project.

Valuations
The Group benefitted from strong valuations across the business. The property portfolio is valued at GBP2.3 billion as at 31
December 2013, an increase of 19.9 per cent like-for-like over the year.

                                                                               Market          Market
                                                                                Value           Value
                                                                                 2013            2012         Market
                                                                                                               Value           ERV      Initial     Equivalent
                                                                                 GBPm            GBPm   Change(1,2)      Change(1)        Yield          Yield
 Covent Garden                                                                  1,156             952         19.2%          11.0%         3.3%           4.7%
 Earls Court Properties
   EC1 & EC2                                                                      453             336         24.0%
   Lillie Square                                                               153(3)          104(3)         31.1%
   Empress State                                                                  265          110(3)         19.9%
   Other                                                                           63              25         21.8%
 Venues                                                                           161             146          6.3%
 Other(4)                                                                           -              48
 Total property                                                                 2,251           1,721         19.9%

(1) Like-for-Like.
(2) Valuation change takes account of amortisation of lease incentives, capital expenditure and fixed head leases.
(3) Represents Capco's 50 per cent share.
(4) GCP (Capco's 50 per cent share), in 2013 a discontinued operation.

Covent Garden
The Covent Garden estate has performed strongly in 2013. The neighbourhood is now established as a vibrant and exciting
district of central London and is receiving global recognition as a world-class retail destination.

The estate is valued at GBP1,156 million as at 31 December 2013, a like-for-like increase of 19.2 per cent during 2013. The
major component of this increase is the strong growth in ERV, up 11.0 per cent on a like-for-like basis to GBP58.0 million. The
ERV target has been revised to GBP75.0 million by December 2016.

Over the past four years, since Capco was established as an independent company, the valuation of Covent Garden has
grown at an annual like-for-like rate of 12.3 per cent, and ERV has grown at 8.9 per cent.

The arrival of a number of luxury retail and restaurant brands, including Dior Beauty and Burberry Beauty Box, alongside
Chanel Beauty Boutique, Ladurée and Balthazar, has made Covent Garden the destination of choice in central London for both
Londoners and visitors.

The value creation at Covent Garden has progressed with the resolutions to grant planning consent for the Kings Court and
Carriage Hall schemes. This will have a major impact on the area, opening up a new pedestrian route between Long Acre and
King Street, and establishing new, high quality retail and restaurant space in and around Floral Street.

Earls Court Properties
The receipt of outline planning consent for the Earls Court Masterplan is a major success and is the culmination of the initial
strategy that commenced when Capco acquired its first interest at Earls Court in 2007.

The valuation of Capco's interests at Earls Court, represented by Earls Court Properties, has grown strongly in the year to
GBP934 million. EC1 & EC2, principally the Group's interests in the Earls Court exhibition centres, has benefitted from the
strong London residential market and planning consent, increasing by 24.0 per cent to GBP453 million.

Lillie Square continues to progress towards a formal sales and marketing launch. The project team has focused on creating a
high quality product that will be competitive in the current marketplace. The intention remains to commence construction of the
scheme later this year.

The remaining interest in the Empress State Building was acquired during 2013, giving Capco 100 per cent ownership of this
major office building at the heart of the Earls Court area. Proposals have been submitted for a conversion to residential use.

Venues
The performance of Venues in 2013 reflects the continued uncertainty over the Earls Court venue. The Olympia venue was
rebranded Olympia London, following Capco's significant investment over the past three years to prepare it for the full transition
of the business to this venue. The team has successfully negotiated the transfer of a number of shows to Olympia from Earls
Court for 2015, including the International Book Fair and Top Drawer.

Outlook
Capco remains well positioned to create significant further value for shareholders from its value growth and value creation
strategy at Covent Garden and Earls Court. The central London property market remains strong, and expectations for the
economy are positive, although the impact of rising interest rates and the withdrawal of central bank liquidity will need to be
carefully monitored. The capital structure remains conservative with sufficient levels of liquidity maintained to manage the
increased activity across the Group.

At Covent Garden, the focus will continue to be on introducing new retail and restaurant brands across the estate, and
implementing residential conversions where appropriate. The Kings Court and Carriage Hall schemes offer the potential to
transform the north-western area of the estate and drive rental values. We will continue to redefine global luxury in London and
cement the district's status as a thriving dining destination.

At Earls Court, the detailed planning applications start the process of re-imagining the area and creating a new neighbourhood
where Kensington, Chelsea and Fulham meet. The team at Lillie Square is focusing on achieving a successful launch shortly.

Ian Hawksworth

Chief Executive

25 February 2014

STRATEGIC REPORT

COVENT GARDEN

London's neighbourhood
Covent Garden is one of the most vibrant and dynamic districts in London. Attracting 44 million visits a year, the estate mixes a
unique shopping experience, all day dining, entertainment and culture in a historic, pedestrianised setting.

Overview
The Covent Garden estate represents 51 per cent of Capco's gross assets and showcases its value growth strategy which is
realised through place-making, creative asset management, acquisitions, investment and strategic development. In total,
Capco owns 64 buildings comprising 378 lettable units and over 912,000 sq ft of lettable space in Covent Garden.

The value of the estate continues to grow with a capital value of GBP1,156 million, a 19.2 per cent like-for-like uplift year-on-
year at 31 December 2013. ERV was GBP58.0 million, 11.0 per cent higher on a like-for-like basis. In 2013, 49 new lettings
and renewals (excluding those with non-standard terms such as development breaks) were negotiated securing GBP5.9
million of passing rent, an 11.6 per cent increase above the 31 December 2012 ERV level.

Tenant demand remains strong across the estate which is operating at near full occupancy at 99 per cent. Gross income was
GBP40.5 million for the year ended 31 December 2013.

Footfall in Covent Garden continues to be consistently strong at 44 million customer visits per year. Londoners now account for
56 per cent of the total visitor numbers with 27 per cent international and 17 per cent domestic visitors. Of the UK based
audience, 93 per cent is classified as ABC1, and 52 per cent AB.

Capco works with stakeholders in the community such as Westminster City Council and the Covent Garden Area Trust to
preserve, maintain and celebrate the attributes which make the area unique. In addition, Capco embeds Corporate
Responsibility into its strategy in Covent Garden, spearheading initiatives which involve the local community such as the Royal
British Legion Poppy Event which returned for the second year and saw a day of fundraising and activity hosted on the Piazza.

Retail
In 2013 Covent Garden attracted a number of new retailers including Dior Beauty, Burberry Beauty Box, Moleskine, Miller
Harris, Aesop and Aveda. A luxury beauty hub has been created by working with luxury brands to introduce new concepts to
Covent Garden, following on from the success of the Chanel Beauty Boutique in 2012.

The Market Building also saw an influx of premium new tenants with Godiva, Il Papiro and Penhaligon's all taking space.

The contemporary luxury offer on King Street expanded with the arrival of Sandro, the signing of Brazilian brand Galleria
Melissa and a pop up store by luxury footwear designer Sophia Webster. Luxury handbag designer Lulu Guinness opened a
new concept store on Floral Street in August, whilst luxury sportswear brand Y-3 also opened on Floral Street in September.
Reebok chose Long Acre for its new Fit Hub store which opened in September and cult yoga brand lululemon athletica is
moving its showroom on Floral Street to Long Acre to create its first official store in the UK which is set to open in March.

Dining
February 2013 saw the opening of Balthazar, one of the most highly anticipated restaurants to open in London. Brought over
from New York by Keith McNally in partnership with Caprice Holdings, the restaurant is the only one outside of Manhattan and
has been a destination for visitors from the UK and abroad. Balthazar Bakery also opened alongside the brasserie.

Following Balthazar's success, terms were agreed with Caprice Holdings for a new flagship restaurant for One South Piazza.
The team behind The Ivy, one of the most famous and successful restaurants in Covent Garden, will develop the unit, which
will boost all day dining from breakfast until after theatre. The site, formerly occupied by Lloyds Bank and Pizza Hut, will anchor
both The Beecham residences and Henrietta Street.

In July the arrival of Shake Shack, Danny Meyer's New York cult burger concept, transformed the food offering in the south
side of the Market Building increasing both footfall and overall dwell time. Shake Shack took over units previously occupied by
The Icecreamists and New York Deli to create the first Shake Shack in the UK with al fresco dining within the Market Building
and on the South Piazza. In November, Copenhagen and Japanese fusion concept Sticks 'n' Sushi opened on Henrietta Street
in a space formerly occupied by Walkabout.

Residential
The residential strategy in Covent Garden complements the value creation from the ground floor retail and dining offer, by
capturing the opportunity to extract further value on the upper parts of buildings through residential conversions which bring the
area back to its 17th Century residential roots.

Following the successful sale of four apartments in The Henrietta, the second residential building, The Russell, was launched in
April. Situated on a corner location on the Piazza and close to the Royal Opera House, The Russell created a further five luxury
apartments. Four of the five apartments have been sold, setting a price record in the area with an average sales price of over
GBP2,400 per sq ft. Conversion work for two further residential blocks in The Beecham and The Southampton has started and
will create a further 16 apartments which will come to market during 2014.

In addition to the residential property intended for sale, the first premium residential rental product was launched in September
at 9 King Street and is fully let, achieving a record rent in the area of GBP65 per sq ft. Further space that can be converted to
residential rental property in due course has been identified.

Kings Court and Carriage Hall
In December, resolutions to grant planning consent for a new mixed-use development that will transform the area between
Floral Street and King Street were received from Westminster City Council.

The Kings Court development will enhance the retail offering on Floral Street including a new retail anchor, and will create a
new passage with retail and restaurant space between Long Acre and King Street to improve pedestrian movement in the
district and open the existing courtyard area to the public. 45 high quality new residential units will be created on the upper
levels with views over the courtyard. The development covers approximately 84,000 sq ft, of which 20,000 sq ft is new space.
Work is expected to start on site in Autumn 2014.

The Grade II listed Carriage Hall on Floral Street, opposite the Kings Court scheme will also be refurbished, creating a large
anchor store. Work is expected to be carried out at the same time as the Kings Court development.

The total development cost of both schemes is expected to be in the order of GBP85 million.

Future Priorities
Capco's strategy in Covent Garden remains on track to grow and create value through creative asset management, large scale
interventions and place-making. Tenant engineering and the curation of the retail and dining mix continue to be the key
activities in order to grow rental values in line with those of the wider prime West End retail areas. This will include a targeted
increase in the luxury offering within the estate, particularly with the repositioning of the Royal Opera House Arcade and
Henrietta Street.

The implementation of the Kings Court and Carriage Hall schemes, as well as an active approach to future development
opportunities and acquisitions within and around the boundaries of the existing estate will be areas of focus. Kings Court will be
the first major development to be undertaken by Capco at Covent Garden, and the construction of the scheme is being
carefully planned to ensure its success and to minimise the disruption to the wider estate. Other future priorities include
extending the residential portfolio and continuing to improve the Covent Garden environment through investing in and
improving the public realm.

EARLS COURT PROPERTIES

Earls Court is a unique opportunity for urban re-imagination, located where Kensington, Chelsea and Fulham meet.

Earls Court Properties represents Capco's interests in Earls Court, which principally comprise:

    -    The leasehold interests of the Earls Court Exhibition Centres and the freehold of the Northern Access Road
         ("EC1 & EC2") 
    -    100 per cent of the Empress State Building  
    -    50 per cent interest in the Lillie Square joint venture 

The valuation of Earls Court Properties has increased significantly during 2013, reflecting the progress made in planning and
land assembly. The total valuation has increased to GBP934 million up 24.5 per cent on a like-for-like basis. EC1 & EC2
increased to GBP453 million, up 24.0 per cent like-for-like.

In January Capco entered into the Conditional Land Sale Agreement ("CLSA") with the London Borough of Hammersmith &
Fulham ("LBHF") to acquire the West Kensington and Gibbs Green Estates (the "Estates"). This agreement is discussed further
below within 'Land Assembly'.

Planning momentum
In November, planning consent was granted for the outline Earls Court Masterplan, marking the culmination of the planning
process that has taken several years and has won the support of the Royal Borough of Kensington & Chelsea ("RBKC"), LBHF
and the Mayor of London. It provides approval for a 10.1 million sq ft residential led, mixed use scheme which offers the
opportunity to create a leading address in central London.

A detailed planning application for Earls Court Village which progresses the design of the scheme beyond the outline consent
was submitted in December to RBKC and LBHF. These proposals offer the opportunity for continued value creation for Capco
by illustrating the quality of the neighbourhood to be created. Garden squares, sweeping crescents and the Lost River Park will
create a new district of London with over 1,300 new homes and the first phase of London's new High Street.

The local community will benefit as the development is implemented through commitments made in the Section 106
agreement. This agreement includes improvements to transport and infrastructure, a new primary school, health facilities and
investment in employment and training.

The judicial review hearing in relation to the Supplementary Planning Document was successfully defended by the local
authorities in October following the hearing in July. Capco participated in the hearing as an interested party as the challenge
was made against LBHF and RBKC. This is the third challenge that the Councils have successfully defended in relation to the
Earls Court Masterplan. No application for judicial review has been received in relation to the outline planning consent.
However the risk of further judicial review challenges against planning decisions or land assembly cannot be discounted.

Land Assembly
The land assembly process in relation to the Earls Court Masterplan is progressing well. In February 2014, the Boards of TfL
and Capco approved terms for a proposed joint venture which would be owned 63 per cent by Capco and 37 per cent by TfL to
enable the development of EC1 & EC2 in line with the Earls Court Masterplan. Legal documentation is currently being finalised.

TfL owns the freehold to the Earls Court exhibition centres and Capco is the leaseholder of both sites. The proposed joint
venture will establish a joint entity which will own new 999 year leases over the sites, as well as the Northern Access Road and
the air rights over the West London Line. The ownership of the joint entity reflects the value created by combining both
organisations' respective freehold and leasehold interests. No cash consideration will be payable by either party. Capco will be
the business manager of the joint entity, which will enable a comprehensive approach to be taken for the implementation of the
Earls Court Masterplan for the wider Earls Court and West Kensington Opportunity Area ("ECOA"). Preparation has
commenced within Capco to meet the operational and governance requirements of this role. At this stage, no agreement is in
place regarding the Lillie Bridge Depot, however TfL has stated it will form part of the Earls Court Masterplan if and when it is
operationally feasible to do so.

In March an agreement with Network Rail was completed regarding the air rights above the West London Line. As part of the
agreement, Capco has secured a new 999 year lease to replace the existing lease in respect of the Earls Court 2 site for an
initial consideration of GBP5.3 million. Within the terms of the agreement, Capco can exercise options for a period of 50 years
for further 999 year leases over the remainder of the West London Line to allow for development of the Lost River Park within
the Earls Court Masterplan. Network Rail is entitled to further payments of 5.55 per cent of the residual land value which will be
payable by Capco at the time development or disposal of each phase of the Earls Court Masterplan is initiated.

In November Capco exercised its option under the CLSA which it entered into with LBHF in January 2013 in relation to
LBHF's land within the redevelopment area. The CLSA was approved by the Secretary of State for the Department of
Communities & Local Government in April and comprises approximately 22 acres including the West Kensington and
Gibbs Green estates.

The land relating to the Estates is not currently recognised within these financial statements as the timing and phasing of
the land draw down remains subject to a detailed process. No phase can be transferred unless replacement homes for
the residents of the relevant phase have been provided and vacant possession is given of the phase. With the option
exercised and with the outline planning consent granted, Capco is working closely with LBHF under the detailed
mechanisms within the CLSA to identify the requirements for the first tranche of replacement homes which would enable
vacant possession of the first phase of land to be provided.

Of the total cash consideration of GBP105 million, GBP15 million was originally paid for the Exclusivity Agreement and is now
held as a prepayment against a future drawdown of the land; whilst the properties acquired in 2013, at the time of signing the
CLSA, are accounted for as investment properties and accordingly were revalued at 31 December 2013. Following exercise of
the CLSA in November, the Group has become committed to the payment of the residual GBP75 million due under the
agreement. The GBP75 million is expected to be paid in five annual instalments of GBP15 million starting on 31 December
2015 which are independent of the land draw down process.

Empress State
In August Capco completed the acquisition of the 50 per cent of the Empress State Building not already owned for a value of
GBP117 million. The 460,000 sq ft office tower is let to the Metropolitan Police Authority which provides a secure income
stream until 2019.

As part of the wider value creation strategy, a planning application was submitted in November to LBHF for a change of use to
residential in line with the wider Earls Court Masterplan. This would create over 300 high quality apartments within the structure
of the existing 31 storey building.

Future Priorities
Earls Court presents a unique opportunity to create a new district of central London. The focus of activities this year will be to
finalise the land assembly and to bring the Masterplan to life through place-making initiatives to create further value.

For Earls Court Village and the Empress State Building, the priority is to obtain approval for the detailed applications that were
submitted in late 2013.

For North End Village, a process for drawing down the first phase of land is being developed in conjunction with LBHF under
the terms of the CLSA. This is likely to involve the commencement of construction of the first phase of replacement social
housing, in order to commence the process of enabling vacant possession of the Estates.

Lillie Square

Overview
Lillie Square is a 1 million sq ft scheme and is owned by a joint venture between Capco and the Kwok Family Interests ("KFI").
The scheme covers over 7.5 acres and will deliver modern garden-square living for future residents, in 608 private and 200
affordable homes.

Project Update
The focus of the Lillie Square development in 2013 has been on finalising the design of the scheme and construction contracts
alongside preparing for the sales and marketing launch. Design amendments were submitted to LBHF and approved in
August. These amendments included enhancements to the previously consented buildings and an improved landscape
strategy.

The changes to the scheme and the enhanced specification have increased the expected total build cost to GBP360 million.
However, due to the phasing of the project, the peak capital requirement is expected to be in the order of GBP130 million
(Capco's share: GBP65 million). Documentation is currently being agreed for a new loan facility to fund the construction of Lillie
Square which will cover this peak capital amount.

Preparations are being made to commence formal sales and marketing with a launch planned shortly. The current intention is
to commence work on site later this year.

Capco notes the on-going legal situation in Hong Kong regarding charges against certain members of the Kwok family, but the
operation of the joint venture continues to be unaffected.

Future Priorities
Adjacent to the wider Earls Court Masterplan, Lillie Square is one of the largest development projects in West London and
offers an exciting opportunity to re-imagine the area creating values in line with established neighbourhoods surrounding the
site.

The focus of our activities this year will be a successful sales launch and commencement of the first phase of construction of
this project, which is expected to deliver 237 units in 2015 and 2016. The central London residential market is currently positive,
and the success of the sales launch will in part depend on these conditions continuing to prevail.

VENUES

Operating Performance
The Venues business continues to perform in line with expectations. Bookings are lower than in previous years reflecting the
continued uncertainty around the future of the Earls Court venue. Earnings before interest, tax, depreciation and amortisation
("EBITDA") in 2013 were GBP10.4 million, down 26 per cent from 2012. Much of the decrease can be attributed to the one-off
contribution in 2012 from the Olympic Games.

The enhanced Olympia London venue remains the focus of the future of the Venues business. Several exhibitions have now
decided to move to Olympia London in 2015 including Top Drawer and the International Book Fair. This is very positive for
London's most historic venue and will enable the transition of the business from the Earls Court venue to commence next year.
Olympia London's improved prospects are reflected in the 2013 valuation performance, up 6.3 per cent to GBP161 million. At
this time, the Earls Court venue is taking bookings for 2014.

As part of the on-going investment in improvement works to Olympia London a series of planning applications were submitted
in July which aim to re-instate and enhance the entrance to Olympia Grand and improve Olympia Way through cycle lanes,
improved surfaces and signage. Consent was also received for a hotel on the G-Gate site.

Future Priorities
The focus for the Venues business is on the successful transition of the business to the enhanced Olympia London. The
decision of the larger shows to move to Olympia from the Earls Court venue in 2015 will commence the transition of the
business to operate at Olympia on a standalone basis. These shows, together with the existing calendar of shows operating at
Olympia, will intensify the use of Olympia and drive value growth of the business.

FINANCIAL REVIEW
EPRA adjusted, diluted net assets per share rose 22.4 per cent during the year, increasing from 203 pence at 31 December
2012 to 249 pence. This 46 pence increase together with the 1.5 pence dividend paid during the year represents a total return
of 23.1 per cent.

The London property market has performed well in 2013, in particular the retail and residential sectors to which the Group is
exposed. There continues to be strong tenant and investor demand for well managed properties in prime central London
locations.

Both yield compression and ERV growth at Covent Garden increased the value of the estate by 18.8 per cent (19.2 per cent
like-for-like), reflecting strong letting performance and increased residential sales values achieved.

The value of Earls Court Properties, the Group's interests at Earls Court, has increased by 19.8 per cent (24.5 per cent like-for-
like), as a result of the planning and land assembly milestones achieved in respect of the Earls Court Masterplan during the
year and the strong central London residential sales market. The valuation of the Group's EC1 & EC2 interests by Jones Lang
LaSalle, the Group's external valuers, implies a land value of GBP31.7 million per acre for the combined freehold and
leasehold interest, based on the terms of the proposed arrangement with TfL.

Post year-end, the Group has agreed a new GBP665 million unsecured revolving credit facility for Covent Garden. This new
facility will replace the three existing secured facilities and increases the Group's available liquidity by over GBP150 million. It
will improve operational and financial flexibility to support the strategy for the estate.

Control acquired of former joint venture

In May the Group acquired 100 per cent control of The Empress State Limited Partnership which owns and manages the
Empress State Building, a building adjacent to the Group's property interests at Earls Court. The transaction was accounted for
as a business combination and from the date of exchange the partnership has been fully consolidated. Completion occurred in
August.

A brief summary of the result this transaction has had on the Group's 31 December 2013 balance sheet is set out below:

Balance sheet                                                                                         GBPm
Investment and development property          Increased by                                            132.5
Borrowings                                   Increased by                                           (48.6)
Other net liabilities                        Increased by                                           (22.6)
Change in net assets                                                                                  61.3

Conditional Land Sale Agreement ("CLSA")

In November the Group exercised its option under the CLSA, which it entered into with the London Borough of Hammersmith &
Fulham ("LBHF") in January, for the purchase of the West Kensington and Gibbs Green housing estates.

The overall consideration payable is expected to be GBP105 million cash plus the planning requirement to provide up to 760
replacement homes.

Of the consideration, GBP15 million was originally paid for the Exclusivity Agreement and is now held as a prepayment against
a future drawdown of the land; whilst the properties acquired in 2013, at the time of signing the CLSA, are accounted for as
investment properties and accordingly were revalued at 31 December 2013.

On exercise in November the Group became committed to payment of the residual GBP75 million due under the agreement,
and is entitled to draw down the land subject to certain conditions as discussed in the Earls Court Properties Operating Review.
This GBP75 million is expected to be paid in five annual instalments of GBP15 million starting on 31 December 2015 which are
independent of the land draw down process. The payment profile could be altered due to certain obligations, primarily
compensation related to achieving vacant possession, which are subject to an overall cap of GBP55 million. Should any
payments be made in respect of these obligations they will be deducted from the total consideration due to LBHF.

The option is value neutral as the underlying asset does not currently meet the recognition criteria required for investment and
development property. The future payments of GBP75 million represent a capital commitment towards the purchase of
investment and development property that has not yet been received. Where any amounts are paid prior to the transfer of
property, they will be carried on the Group's balance sheet as prepayments against future land draw down. A transfer from
prepayment to investment and development property will occur once the risks and rewards of ownership have passed to the
Group. Once this occurs, in line with the Group's accounting policy, the land will become subject to bi-annual valuation with any
uplift reflected in the Group's reported net asset measure.

Discontinued operation

In June, The Great Capital Partnership ("GCP"), the joint venture between the Group and Great Portland Estates plc,
announced the sale of its final asset, Park Crescent West, which marked the culmination of its activities.

As GCP has historically represented a separate major line of business, its results and cash flows have been reported for the
year ended 31 December 2013 as having arisen from a discontinued operation. The requirement extends to the prior year
comparative which has been re-presented in line with reporting requirements. For the purposes of this financial review,
continuing and discontinued operations have been combined.

Segmental analysis

With the cessation of GCP and the changes more widely in the business over the past year, the Group has revised its
segmental analysis. As a result of these changes the discontinued activity of GCP is now disclosed within 'Other'. The segment
previously called Earls Court & Olympia has been split in two: Earls Court Properties and Venues. Earls Court Properties
represents the Group's interests at Earls Court, predominantly comprising EC1 & EC2, the Empress State Building and 50 per
cent of the Lillie Square joint venture (previously Seagrave Road). Venues comprise the exhibitions business including the
Olympia London property interests. Covent Garden remains unchanged.

Financial position
At 31 December 2013 the Group's EPRA adjusted net assets were GBP1.9 billion representing 249 pence per share adjusted
and diluted, an increase of 46 pence per share since 31 December 2012.
                                                                                                         2013                  2012
                                                                                                         GBPm                  GBPm
Investment, development and trading property                                                          2,166.3               1,670.6
Net debt                                                                                              (329.2)               (163.5)
Other assets and liabilities                                                                           (25.0)                (29.3)
IFRS net assets                                                                                       1,812.1               1,477.8
Fair value of derivative financial instruments                                                           14.1                  30.8
Unrecognised surplus on trading property                                                                 69.2                  37.5
Deferred tax liabilities on exceptional items                                                            16.2                   6.9
EPRA adjusted net assets                                                                              1,911.6               1,553.0
EPRA adjusted, diluted net assets per share (pence)                                                       249                   203

Investment, development and trading property

The market value of the Group's property portfolio increased in value by GBP343.8 million during the year, up 19.9 per cent on
a like-for-like basis.

Total property return for the year was 21.9 per cent which compares favourably to the IPD Total Return index for the
corresponding period which recorded a 10.9 per cent return.

Valuation surpluses on properties held for trading are not recorded in the income statement and their balance sheet valuation
does not reflect market value, but rather the lower of cost and market value. Any unrealised surplus is however reflected within
the EPRA adjusted, diluted net asset measure.

At 31 December 2013, the unrecognised surplus on trading property was GBP69.2 million, up from GBP37.5 million at 31
December 2012. This principally arises on property assets at Lillie Square, which has been consented for the development of
residential units for sale.

Excluding the acquisition of the residual 50 per cent interest in the Empress State Building (discussed above), property
acquisitions in the year totalled GBP65.3 million, mainly being small acquisitions at Earls Court. Property disposals were
GBP64.7 million, primarily relating to the sale of the final asset within GCP, Park Crescent West.

Debt and gearing

In July, the Group entered into a new five year GBP118.5m facility to refinance the debt facility secured on the Empress State
Building.

Excluding the debt assumed on the acquisition of control of Empress State, net debt increased by GBP50.5 million in the year
principally the result of property acquisitions and capital expenditure (GBP123.1 million) offset by proceeds from the sale of
residential units at Covent Garden and the final asset within GCP (GBP78.4 million) and further distributions from the Group's
investments in China.

Other than the refinancing of the Empress State facility discussed above, other debt repayments in the year were GBP24.8
million which consisted of GBP20.0 million repayment of funds drawn on the revolving credit facilities and GBP4.8 million of
which was paid on maturity of GCP's debt facility in March.

The gearing measure most widely used in the industry is loan-to-value ("LTV"). LTV at 31 December 2013 was 15 per cent.
The LTV remains comfortably within the Group's current limit of no more than 40 per cent.
                                                                                                           2013                2012
Property loan-to-value                                                                                      15%                 10%
Interest cover                                                                                             148%                172%
Weighted average debt maturity                                                                        4.3 years           4.8 years
Weighted average cost of debt                                                                              4.4%                5.2%
Proportion of gross debt with interest rate protection                                                     100%                100%

The new GBP665 million Covent Garden debt facility was signed in February 2014 and has a five year term. The margin for the
loan is 1.65 per cent. It is an unsecured revolving credit facility which will provide improved operational and financial flexibility
for the estate. The Group's available liquidity will increase by over GBP150 million.

Completion of the facility is expected in March 2014 when the existing Covent Garden facilities will be repaid. The Group will
incur an exceptional charge of approximately GBP12 million relating to fees on the new facility and unamortised fees on the
existing facilities; as well as approximately GBP18 million relating to the termination of derivative contracts.

The Group's policy is to substantially eliminate the short and medium-term risk arising from interest rate volatility. The Group's
banking facilities are arranged on a floating-rate basis, but swapped to fixed-rate or capped using derivative contracts
coterminous with the relevant debt facility. At 31 December 2013 the proportion of gross debt with interest rate protection was
100 per cent (2012: 100 per cent).

The Group remains compliant with all of its debt covenants.

The Group has capital commitments of GBP105.9 million at 31 December 2013 which compares to GBP21.4 million at 31
December 2012. The increase principally relates to the CLSA as discussed above.

Cash flow
A summary of the Group's cash flow for the year to 31 December 2013 is presented below:
                                                                                                            2013                2012
                                                                                                            GBPm                GBPm
Recurring cash flows after interest and tax                                                                  8.0                 4.8
Purchase and development of property and investments                                                     (130.4)             (134.9)
Control acquired of former joint venture                                                                  (50.3)                   –
Sale proceeds of property and investments                                                                   81.6               254.6
Loss of control of former subsidiary                                                                           –                65.4
VAT paid on internal restructure                                                                               –              (22.2)
Net cash flow before financing                                                                            (91.1)               167.7
Financing                                                                                                 (41.5)              (64.2)
Dividends paid                                                                                             (6.9)               (8.6)
Net cash flow                                                                                            (139.5)                94.9

Typically the main cash flow items are operating cash flows, dividends paid and capital transactions undertaken.

Recurring cash flow was GBP8.0 million compared to GBP4.8 million for 2012, mainly due to the lower financing costs.

Investing activities comprise acquisitions (GBP70.7 million), capital expenditure (GBP59.7 million) and payments made to
acquire full control of the former Empress State joint venture (GBP50.3 million), offset in part by proceeds received from the
disposal of property and investments (GBP81.6 million).

Property acquisition and development expenditure was mainly in respect of Earls Court Properties. Proceeds from the sale of
property and investments comprise the disposal of the last remaining asset within GCP, the sale of residential units at Covent
Garden and a further distribution from the Group's investments in China.

Financing cash flows relate to the repayment on maturity of the GCP facility in March, together with the refinancing and
scheduled amortisation payments on the Empress State facility.

Dividends paid of GBP6.9 million reflect the final dividend payment made in respect of the 2012 financial year and the 2013
interim dividend paid in September. This was lower than the previous year due to the scrip dividend alternative, the take up of
which was significantly higher at 48 per cent and 21 per cent respectively.

Cash and undrawn committed facilities at 31 December 2013 were GBP287 million.

Financial performance
The Group has presented an underlying calculation of profit after tax and adjusted earnings per share figures in addition to the
amounts reported under IFRS. The Directors consider this presentation to provide useful information on the underlying
performance of the business as it removes exceptional and other one-off items.
                                                                                                         2013                2012
                                                                                                         GBPm                GBPm
Net rental income                                                                                        64.8                65.3
Other income                                                                                             10.6                 6.1
Gain on revaluation and sale of investment and development property                                     313.4               213.9
Administration expenses                                                                                (33.8)              (26.1)
Net finance costs                                                                                      (20.9)              (24.1)
Profit on available-for-sale investments                                                                  0.9                10.0
Change in fair value of derivative financial instruments                                                 16.4                 0.7
Other                                                                                                   (1.4)               (0.3)
Taxation                                                                                               (12.6)               (5.5)
IFRS profit for the year attributable to owners of the Parent                                           337.4               240.0
Adjustments:
Other income                                                                                           (10.6)               (6.1)
Gain on revaluation and sale of investment and development property                                   (313.4)             (213.9)
Profit on available-for-sale investments                                                                (0.9)              (10.0)
Change in fair value of derivative financial instruments                                               (16.4)               (0.7)
Other adjustments                                                                                         0.9                 1.6
Taxation on exceptional items                                                                            10.3                 1.6
Underlying profit after tax                                                                               7.3                12.5
Underlying earnings per share (pence)                                                                     1.0                 1.8

Income
Net rental income fell by GBP0.5 million (6.0 per cent like-for-like) in the year. The sale of properties within GCP and the
weaker performance of the Venues business, both of which are in line with expectations, reduced net rental income by GBP9.2
million. This has been offset by increased income at Covent Garden and income arising from Earls Court Properties which
includes the Empress State Building and a number of small income producing assets. The acquisition of control of Empress
State in May has contributed GBP4.4 million to the net rental income for the year. Net rental income for Covent Garden in 2014
is likely to be similar to 2013 due to the number of initiatives being pursued to grow the value of the estate but which reduce
income in the short-term.

Other income of GBP10.6 million principally relates to trading property profits of GBP10.4 million which arose on the sale of
residential units at Covent Garden.

Gain on revaluation and sale of investment and development property

The gain on revaluation of the Group's investment and development property was GBP310.6 million. Profits recorded on the
sale of investment and development property were GBP2.8 million, the result of the sale of the last GCP asset, Park Crescent
West.

Administration expenses

Administration expenses increased 30 per cent to GBP33.8 million. The majority of the increase is attributable to a higher than
anticipated charge of GBP8.3 million relating to costs associated with the Group's equity based compensation schemes, which
are linked in part to share price performance. This level of administration expense is now indicative of normalised operating
costs. Any further increases will be in line with headcount as the Group's activities expand.

Net finance costs

Excluding gains arising from the change in fair value and one-off costs incurred on the termination of derivative financial
instruments, the Group's underlying net finance costs for the year fell to GBP20.9 million from GBP22.8 million in 2012, the
result of various debt prepayments and repayments during 2012, together with the benefit of refinancing in a historically low
interest rate environment.

Exceptional items

In addition to revaluation and sale of investment and development property and fair value movements on derivative financial
instruments, exceptional items which have been removed from the calculation of underlying profit include:

- Other income of GBP10.6 million of which profit on sale of trading property represented GBP10.4 million;

- Write back of impairment charges in respect to loan notes receivable of GBP2.0 million

- Trading property write down of GBP1.7 million

- Other exceptional items totalling GBP0.3 million

Taxation

The total tax charge for the year was GBP12.6 million which is made up of both underlying tax and exceptional tax.

Underlying tax, the amount of tax charged on the underlying profits of the Group was GBP2.3 million, reflecting an underlying
tax rate of 23.3 per cent in line with the current rate of UK corporation tax. The UK corporation tax rate is expected to fall to 21
per cent from April 2014 and again to 20 per cent from April 2015.

The exceptional tax of GBP10.3 million arises predominantly on disposals of trading properties and gains on the change in fair
value of derivative financial instruments.

Contingent tax, the amount of tax that would become payable on a theoretical disposal of all investment properties held by the
Group remains GBPnil. The contingent tax position is arrived at after allowing for indexation relief and Group loss relief. A
disposal of the Group's trading properties at their market values as per Note 15 would result in a corporation tax charge to the
Group of GBP16.1 million (23.3 per cent of GBP69.2 million).

The Group's tax policy, which has been approved by the Board and has been disclosed to HM Revenue & Customs, is aligned
with the business strategy. The Group seeks to protect shareholder value by structuring operations in a tax efficient manner,
with external advice as appropriate, which complies with all relevant tax law and regulations and does not adversely impact our
reputation as a responsible taxpayer. As a Group, we are committed to acting in an open and transparent manner.

Consistent with the Group's policy of complying with relevant tax obligations and its goal in respect of its stakeholders, the
Group maintains a constructive and open working relationship with HM Revenue & Customs which regularly includes obtaining
advance clearance on key transactions where the tax treatment may be uncertain.

Dividends

The Board has proposed a final dividend of 1.0 pence per share to be paid on 19 June 2014 to shareholders on the register at
23 May 2014. Subject to SARB approval, the Board intends to offer a scrip dividend alternative.

Going Concern

At 31 December 2013 the Group's cash and undrawn committed facilities were GBP287 million. The agreement to refinance
the Group's Covent Garden facilities in February 2014 has expanded the Group's committed undrawn facilities by a further
GBP150 million.

With weighted average debt maturity exceeding 4 years, LTV of 15 per cent and sufficient headroom against all financial
covenants, there continues to be a reasonable expectation that the Company and Group will have adequate resources to meet
both ongoing and future commitments for the foreseeable future. Accordingly, the Directors have prepared the 2013 Annual
Report & Accounts on a going concern basis.

Soumen Das

Finance Director

25 February 2014

PRINCIPAL RISKS AND UNCERTAINTIES
Through risk management and internal control systems the Group is able to identify, assess and prioritise risk within the
business and seeks to minimise, control and monitor their impact on profitability whilst maximising the opportunities they
present.

The Board has overall responsibility for Group risk management. It reviews principal risks and uncertainties regularly, together
with the actions taken to mitigate them. The Board has delegated responsibility for the assurance for the risk management
process and the review of mitigating controls to the Audit Committee.

Executive Directors together with Senior Management from every division and corporate function of the business complete a
Group risk register. Risks are considered in terms of their impact and likelihood from both a financial and reputational
perspective. Risks are assessed both gross and net of mitigating controls. Review meetings are held to ensure consistency of
response and adequacy of grading. Detailed risk registers are reviewed twice yearly and upon any material change in the
business with a full risk review undertaken annually, at which point it is also reviewed in detail by the Audit Committee with new
or emerging risks considered by the Committee as appropriate. This allows the Audit Committee to monitor the most important
controls and prioritise risk management and internal audit activities accordingly.

On the following pages are the principal risks and uncertainties from across the business and these are reflective of where the
Board has invested time during the year. These are not exhaustive. The Group monitors a number of additional risks and
adjusts those considered 'principal' as the risk profile of the business changes. See also the risks inherent in the compilation of
financial information, as disclosed within note 1 to the accounts, 'Estimation and Uncertainty'.

CORPORATE RISKS
Impact: The Group's ability to maintain its reputation, revenue and value could be damaged by corporate risks

Risk                                         Impact potential                               Mitigation factors
Responding to regulatory and legislative     Reduced flexibility and increased cost         Sound governance and internal policies
challenges.                                  base.                                          with appropriately skilled resource and
                                                                                            support from external advisers as
                                                                                            appropriate.
Responding to reputational,                  Reputational damage and increased              Appointment of experienced individuals
communication and governance                 costs.                                         with clear responsibility and
challenges.                                                                                 accountability. Clear statements of
                                                                                            corporate and social responsibility, skilled
                                                                                            Executive and Non-executive Directors,
                                                                                            with support from external advisers as
                                                                                            appropriate. Continuous stakeholder
                                                                                            communication and consultation.
Inability to implement strategy              Constraints on growth and reduced              Regular strategic reviews and monitoring
or correctly allocate capital.               profitability.                                 of performance indicators.
                                                                                            Corporate level oversight of capital
                                                                                            allocation. Detailed capital planning and
                                                                                            financial modelling. Maintain adequate
                                                                                            cash and available facilities together with
                                                                                            conservative leverage.
Adequacy of partner evaluation and           Reduced profitability, delay or                Appropriate due diligence, procurement
management of agents.                        reputational damage.                           and consultation.
Ineffective operation of joint ventures.     Inability to execute business plan.            Appropriate governance structure and
                                                                                            documentation. Regular dialogue and
                                                                                            reporting.
Risk associated with attracting and          Inability to execute business plan.            Succession planning, performance
retaining staff.                                                                            evaluations, training
                                                                                            and development, long-term incentive
                                                                                            rewards. Sound systems and processes
                                                                                            to effectively capture and manage
                                                                                            employee information.
Failure to comply with health and safety     Loss or injury to employees, tenants or        Comprehensive health and safety
or other statutory regulations or notices.   contractors and resultant reputational         procedures in place across the Group
                                             damage.                                        and monitored regularly. External
                                                                                            consultants undertake annual audits in all
                                                                                            locations. Safe working practices well
                                                                                            established, including staff
                                                                                            communication and training.

CORPORATE RISKS CONTINUED
Group structure brings heightened tax          Competitive disadvantage.                    Group tax policy.
exposure. Non-REIT status has a                Lower returns.                               Open and transparent engagement with
potential competitive disadvantage when                                                     HM Revenue & Customs.
bidding for new assets.
Failure of IT systems / loss of data.          Lack of access to data restricting ability   Disaster recovery plan in place including
Cyber crime compromises data security,         to operate effectively.                      frequent replication of data.
websites and applications.                     Loss of data and accessing of                Extensive testing of security.
                                               commercially sensitive data by               Staff security training.
                                               unauthorised persons.

ECONOMIC RISKS
Impact: Economic factors may threaten the Group's ability to meet its strategic objectives or return targets

Risk                                           Impact potential                             Mitigation factors
Increased competition, changes in social       Declining profitability.                     Focus on prime assets and quality
behaviour or deteriorating profitability and   ERV targets not achieved.                    tenants with initial assessment of credit
confidence during a period of economic         Reduced rental income and/or capital         risk and active credit control.
uncertainty.                                   values.                                      Diversity of tenant mix with limited
                                                                                            exposure to any single tenant.
                                                                                            Strategic focus on creating retail
                                                                                            destinations and residential districts with
                                                                                            unique attributes.
Decline in UK commercial or residential        Declining valuations.                        Focus on prime assets.
real estate market heightened by                                                            Regular assessment of investment
continued global macro-economic                                                             market conditions including bi-annual
conditions, currency fluctuations or the                                                    external valuations.
political landscape.
Restricted availability of credit and higher   Decline in demand for the Group's            Regular monitoring of covenants with
tax rates and macroeconomic factors            properties, declining valuations, and        headroom maintained.
may lead to reduced consumer spending          reduced profitability.                       Ability to monitor tenants on turnover
and higher levels of business failure.                                                      leases.

FINANCING RISKS
Impact: Reduced or limited availability of debt or equity finance may reduce the Group's profitability or threaten the Group's
ability to meet its financial commitments or objectives and potentially to operate as a going concern

Risk                                           Impact potential                             Mitigation factors
Decline in market conditions or a general      Reduced financial and operational            Maintain appropriate liquidity to cover
rise in interest rates could impact the        flexibility and delay to works.              commitments.
availability and cost of debt financing.                                                    Target longer and staggered debt
                                                                                            maturities to avoid refinancing
                                                                                            concentration and consideration of early
                                                                                            refinancing.
                                                                                            Derivative contracts to provide interest
                                                                                            rate protection.
                                                                                            Development phasing to enable flexibility
                                                                                            and reduce financial exposure.
Reduced availability of equity capital.        Constrained growth, lost opportunities,      Maintain appropriate liquidity to cover
                                               higher finance costs.                        commitments.
                                                                                            Target conservative overall leverage
                                                                                            levels.

DEVELOPMENT RISKS
Impact: Inability to deliver against development plans, particularly regarding Earls Court Properties

Risk                                       Impact potential                                 Mitigation factors
Unable to secure planning consent due      Delayed implementation or reduced                Pre-application and continued
to political, legislative or other risks   development opportunity with                     consultation and involvement with key
inherent in the planning environment.      corresponding impact on valuation.               stakeholders and landowners.
Risk of change or delay due to Mayor of                                                     Engagement with relevant authorities at a
London or Secretary of State intervention                                                   local and national level to ensure
or judicial reviews. Inability to gain the                                                  development proposals are in
support of influential stakeholders.                                                        accordance with current and emerging
Failure to demonstrate or implement                                                         policy.
viable development due to legal,                                                            Project team of internal staff and external
contractual, environmental,                                                                 consultants with capabilities across all
transportation, affordable housing or                                                       relevant areas.
other technical factors.                                                                    Technical studies with regular review.
Complexity of legal agreements relating                                                     Responsive consultation with evidence
to planning and land assembly for Earls                                                     based information.
Court Properties.                                                                           Close monitoring and control over key
                                                                                            dates and triggering of obligations.

Inability to achieve lease extension,      Inability to execute business plan.              Informed market valuation and open
renegotiation of use or vacant             Likely negative impact on valuations and         dialogue with adjacent landowners.
possession. Failure to reach agreement     Group's returns or delay to works.               Earls Court Masterplan designed to allow
on land deals with adjacent landowners     Restricted optionality in delivery of            phased implementation.
on acceptable terms (including risk of     development.
Section 34A of the Housing Act 1985 in
relation to land subject to CLSA).

Construction costs increase e.g. due to    Reduced profitability of development.            Extensive consultation, design and
market pricing, unforeseen site issues or                                                   technical work undertaken.
longer build period. Punitive cost, design                                                  Properly tendered or negotiated
or other implications.                                                                      processes to select contractors and
Volatility in sales price.                                                                  manage costs.
                                                                                            Market demand assessments. Pre-sales
                                                                                            and marketing.

CONCENTRATION OF INVESTMENTS
Impact: Heightened exposure to events that threaten or disrupt central London

Risk                                       Impact potential                                 Mitigation factors
Events which damage or diminish            Loss or injury, business disruption or           Terrorist insurance in place.
London's status as a global financial,     damage to property.                              Security and health and safety policies
business and tourist centre could affect                                                    and procedures in offices. Close liaison
the Group's ability to let vacant space,                                                    with police and National Counter
reduce the value of the Group's                                                             Terrorism Security Office (NaCTSO).
properties and potentially disrupt access                                                   Disaster recovery and business continuity
or operations at the Group's head office.                                                   planning.
Changes to or failure of infrastructure.
                                                                                            Active involvement in organisations and
Concentration of higher profile events in
                                                                                            industry bodies promoting London.
central London.

DIRECTORS' RESPONSIBILITIES
Statement of Directors' responsibilities

The statement of Directors' responsibilities has been prepared in relation to the Group's full Annual Report & Accounts for the
year ended 31 December 2013. Certain parts of the Annual Report & Accounts are not included within this announcement.

We confirm to the best of our knowledge:

- the Group financial statements, which have been prepared in accordance with IFRSs as adopted by the EU, give a true and
  fair view of the assets, liabilities, financial position and profit of the Group; and

- the Strategic Report includes a fair review of the development and performance of the business and the position of the
  Group, together with a description of the principal risks and uncertainties that it faces.

Signed on behalf of the Board on 25 February 2014.

Ian Hawksworth
Chief Executive

Soumen Das
Finance Director

CONSOLIDATED INCOME STATEMENT                                                                          
For the year ended 31 December 2013                                                                    
                                                                                        Re-presented   
                                                                                 2013           2012   
                                                                       Notes     GBPm           GBPm   
Continuing operations                                                                                  
Revenue                                                                    2    118.8          109.4   
Rental income                                                                    92.7           91.6   
Rental expenses                                                                (29.1)         (31.7)   
Net rental income                                                          2     63.6           59.9   
Other income                                                               3     10.6            6.1   
Gain on revaluation and sale of investment and development property        4    310.6          190.9   
Profit on sale of available-for-sale investments                           5      0.9           10.0   
Profit on sale of subsidiaries                                             6        –            1.7   
Loss of control of former subsidiary                                       7        –          (1.0)   
Write down of trading property                                                  (1.7)          (0.9)   
Write back of impairment of other receivables                              8      2.0            0.6   
Other exceptional charges                                                       (0.5)              –   
                                                                                385.5          267.3   
Administration expenses                                                        (33.6)         (26.2)   
Operating profit                                                                351.9          241.1   
Finance costs                                                              9   (22.0)         (20.9)   
Finance income                                                                    1.1            0.8   
Other finance costs                                                        9    (0.2)          (2.0)   
Change in fair value of derivative financial instruments                         16.4          (0.3)   
Net finance costs                                                               (4.7)         (22.4)   
Profit before tax                                                               347.2          218.7   
Current tax                                                                     (3.3)          (3.9)   
Deferred tax                                                                   (10.2)          (4.1)   
Taxation                                                                  12   (13.5)          (8.0)   
Profit for the year from continuing operations                                  333.7          210.7   
Discontinued operation                                                                                 
Profit for the year from discontinued operation                           11      4.7           29.3   
Profit for the year                                                             338.4          240.0   
Profit attributable to:                                                                                
Owners of the Parent                                                            337.4          240.0   
Non-controlling interests                                                 10      1.0              –   
Earnings per share from continuing operations attributable to owners                                   
of the Parent                                                                                          
Basic earnings per share                                                  14    44.1p          29.9p   
Diluted earnings per share                                                14    43.4p          29.9p   
Weighted average number of shares                                         14   754.7m         703.9m   

Earnings per share from discontinued operation and adjusted earnings per share from continuing and discontinued operations
are shown in note 14.
Notes on pages 27 to 52 form part of these consolidated financial statements.

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
For the year ended 31 December 2013
                                                                                                      Re-presented
                                                                                               2013            2012
                                                                                    Notes      GBPm            GBPm
Profit for the year                                                                           338.4           240.0
Other comprehensive income/(expense)
Items that may or will be reclassified subsequently to the income statement
Fair value losses on available-for-sale investments                                           (0.7)               –
Realisation of revaluation reserves on disposal of available-for-sale investments             (0.9)           (9.1)
Tax relating to items that may or will be reclassified                                 21         –             2.0
Items that will not be reclassified subsequently to the income statement
Actuarial gains/(losses) on defined benefit pension scheme                                      1.2           (1.7)
Tax relating to items that will not be reclassified                                    21     (0.5)             0.4
Total other comprehensive expense for the year                                                (0.9)           (8.4)
Total comprehensive income for the year                                                       337.5           231.6


Attributable to:
Owners of the Parent                                                                          336.5           231.6
Non-controlling interests                                                              10       1.0               –
Arising from:
Continuing operations                                                                         332.8           202.3
Discontinued operation                                                                 11       4.7            29.3

Notes on pages 27 to 52 form part of these consolidated financial statements.

CONSOLIDATED BALANCE SHEET                                                                                  
As at 31 December 2013                                                                                      
                                                                                           2013      2012   
                                                                                Notes      GBPm      GBPm   
Non-current assets                                                                                          
Investment and development property                                                15   2,051.1   1,586.2   
Plant and equipment                                                                         0.9       1.0   
Available-for-sale investments                                                              0.4       3.6   
Derivative financial instruments                                                   20       3.5       0.5   
Pension asset                                                                               0.8         –   
Trade and other receivables                                                        16      45.3      39.4   
                                                                                        2,102.0   1,630.7   
Current assets                                                                                              
Trading property                                                                   15     115.2      84.4   
Trade and other receivables                                                        16      20.3      25.9   
Cash and cash equivalents                                                          17      45.0     184.5   
                                                                                          180.5     294.8   
Total assets                                                                            2,282.5   1,925.5   
Non-current liabilities                                                                                     
Borrowings, including finance leases                                               19   (357.7)   (269.6)   
Derivative financial instruments                                                   20    (17.6)    (29.3)   
Pension liability                                                                             –     (0.4)   
Deferred tax                                                                       21     (9.9)         –   
                                                                                        (385.2)   (299.3)   
Current liabilities                                                                                         
Borrowings, including finance leases                                               19    (16.5)    (78.4)   
Derivative financial instruments                                                   20         –     (2.0)   
Other provisions                                                                   22     (7.2)     (7.3)   
Tax liabilities                                                                           (0.1)     (2.1)   
Trade and other payables                                                           18    (61.4)    (58.6)   
                                                                                         (85.2)   (148.4)   
Total liabilities                                                                       (470.4)   (447.7)   
Net assets                                                                              1,812.1   1,477.8   
Equity                                                                                                      
Share capital                                                                      23     189.5     188.3   
Other components of equity                                                              1,622.6   1,289.5   
Total equity                                                                            1,812.1   1,477.8   
Notes on pages 27 to 52 form part of these consolidated financial statements.                               

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
For the year ended 31 December 2013

                                      Equity attributable to owners of the Parent

                                                                                                                                                   Non-
                                                    Share       Share     Treasury    Merger Revaluation    Other    Retained               controlling     Total
                                                  capital     premium       shares   reserve     reserve reserves    earnings       Total      interest    equity
                                          Notes      GBPm        GBPm         GBPm      GBPm        GBPm     GBPm        GBPm        GBPm          GBPm      GBPm

Balance at 1 January 2013                           188.3       117.7        (1.0)     277.8         1.7      5.2       888.1     1,477.8             –   1,477.8
Profit for the year                                     –           –            –         –           –        –       337.4       337.4           1.0     338.4
Other comprehensive
income/(expense):
Items that may or will be
reclassified subsequently to
the income statement
  Realisation of revaluation
  reserve on disposal of
  available-for-sale investments                        –           –            –         –       (0.9)        –           –       (0.9)             –     (0.9)
  Fair value losses on
  available-for-sale investments                        –           –            –         –       (0.7)        –           –       (0.7)             –     (0.7)
Items that will not be
reclassified subsequently to
the income statement
  Actuarial gains on defined
  benefit pension scheme                                –           –            –         –           –        –         1.2         1.2             –       1.2
  Tax relating to items that will
  not be reclassified                        21         –           –            –         –           –        –       (0.5)       (0.5)             –     (0.5)
Total comprehensive income
for the year ended 31
December 2013                                           –           –            –         –       (1.6)        –       338.1       336.5           1.0     337.5
Transactions with owners
  Ordinary shares issued                     23       1.2         3.3            –         –           –        –           –         4.5             –       4.5
  Dividend expense                           13         –           –            –         –           –        –      (11.3)      (11.3)             –    (11.3)
  Adjustment for bonus issue                 13         –           –            –         –           –        –         0.8         0.8             –       0.8
  Realisation of share-based
  payment reserve on issue of
  shares                                                –           –            –         –           –    (2.5)         0.7       (1.8)             –     (1.8)
  Fair value of share-based
  payment                                               –           –            –         –           –      4.7           –         4.7             –       4.7
  Tax relating to share-based
  payment                                    21         –           –            –         –           –        –         0.9         0.9             –       0.9
  Non-controlling interests                  10         –           –            –         –           –        –           –           –          43.9      43.9
  Acquisition of non-controlling
  interests                                             –           –            –         –           –        –           –           –        (44.9)    (44.9)
  Disposal of treasury shares(1)                24      –           –          1.0         –           –        –       (1.0)           –             –         –
Total transactions with
owners                                                1.2         3.3          1.0         –           –      2.2       (9.9)       (2.2)         (1.0)     (3.2)
Balance at 31 December 2013                         189.5       121.0            –     277.8         0.1      7.4     1,216.3     1,812.1             –   1,812.1

(1) Treasury shares were used to satisfy employee share awards made in August 2013.

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
For the year ended 31 December 2013
                                                                             Equity attributable to owners of the Parent
                                                                                                                                                               Non-
                                                         Share       Share       Treasury      Merger  Revaluation        Other    Retained                 controlling    Total
                                                       capital     premium         shares     reserve      reserve     reserves    earnings       Total       interest    equity
                                            Notes         GBPm        GBPm           GBPm        GBPm         GBPm         GBPm        GBPm        GBPm           GBPm      GBPm

Balance at 1 January 2012                                170.9        95.1              –       196.2         10.8          2.2       632.7     1,107.9              –   1,107.9
Profit for the year                                          –           –              –           –            –            –       240.0       240.0              –     240.0
Other comprehensive
income/(expense):
Items that may or will be
reclassified subsequently to
the income statement
  Realisation of revaluation
  reserves on disposal of
  available-for-sale
  investments                                                –           –              –           –        (9.1)            –           –       (9.1)              –     (9.1)
  Tax relating to items that
  may or will be reclassified                  21            –           –              –           –            –            –         2.0         2.0              –       2.0
Items that will not be 
reclassified subsequently to
the income statement
  Actuarial losses on defined
  benefit pension scheme                                     –           –              –           –            –            –       (1.7)       (1.7)              –     (1.7)
  Tax relating to items that will
  not be reclassified                          21            –           –              –           –            –            –         0.4         0.4              –       0.4
Total comprehensive income
for the year ended 31
December 2012                                                –           –              –           –        (9.1)            –       240.7       231.6              –     231.6
Transactions with owners
  Ordinary shares issued                                  17.4        22.6              –       106.0            –            –           –       146.0              –     146.0
  Dividend expense                             13            –           –              –           –            –            –      (10.3)      (10.3)              –    (10.3)
  Adjustment for bonus issue                   13            –           –              –           –            –            –         0.6         0.6              –       0.6
  Merger reserve realised(1)                                 –           –              –      (24.4)            –            –        24.4           –              –         –
  Fair value of share-based
  payment                                                    –           –              –           –            –          3.0           –         3.0              –       3.0
  Purchase of treasury
  shares(2)                                    24            –           –          (1.0)           –            –            –           –       (1.0)              –     (1.0)
Total transactions with owners                            17.4        22.6          (1.0)        81.6            –          3.0        14.7       138.3              –     138.3
Balance at 31 December 2012                              188.3       117.7          (1.0)       277.8          1.7          5.2       888.1     1,477.8              –   1,477.8

1 Represents qualifying consideration received by the Group following a number of capital raises in previous years. The residual balance taken to the merger reserve
  does not currently meet the criteria for qualifying consideration as it forms part of a linked transaction.
2 Treasury shares reacquired as a result of the odd-lot offer launched in November 2012.

CONSOLIDATED STATEMENT OF CASH FLOWS                                                                    
For the year ended 31 December 2013                                                                     
                                                                                         Re-presented   
                                                                                    2013         2012   
Continuing operations                                                    Notes      GBPm         GBPm   
Cash flows from operating activities                                                                    
Cash generated from operations                                              27      32.4         28.8   
Interest paid                                                                     (20.7)       (22.1)   
Interest received                                                                    1.2          0.8   
Taxation paid                                                                      (4.4)        (2.9)   
Cash flows from operating activities                                                 8.5          4.6   
Cash flows from investing activities                                                                    
Purchase and development of property(1)                                          (122.4)      (132.7)   
Sale of property(1)                                                                 26.5         18.7   
Sale of available-for-sale investments                                               2.6         17.6   
Loss of control of former subsidiary                                         7         –         65.4   
Control acquired of former joint venture                                    10    (50.3)            –   
Sale of subsidiary companies                                                         0.6          0.2   
VAT paid on internal restructure(2)                                                    –       (22.2)   
Acquisition of company by joint venture                                     10     (7.3)            –   
Cash flows from investing activities                                             (150.3)       (53.0)   
Cash flows from financing activities                                                                    
Issue of shares                                                                        –        145.0   
Treasury shares purchased                                                              –        (1.0)   
Borrowings drawn                                                                   138.5         48.2   
Borrowings repaid                                                                (173.6)      (141.9)   
Purchase of derivative financial instruments                                       (1.5)        (1.6)   
Other finance costs                                                                (0.2)        (1.9)   
Cash dividends paid                                                         13     (6.9)        (8.6)   
Cash flows from financing activities                                              (43.7)         38.2   
Net decrease in unrestricted cash and cash equivalents from continuing                                  
operations                                                                       (185.5)       (10.2)   
Cash flows from discontinued operation                                                                  
Operating activities                                                               (0.5)          0.2   
Investing activities                                                                51.2        215.9   
Financing activities                                                               (4.7)      (111.0)   
Net increase in cash and cash equivalents from discontinued operation               46.0        105.1   
Net (decrease)/increase in cash and cash equivalents                             (139.5)         94.9   
Unrestricted cash and cash equivalents at 1 January                                178.5         83.6   
Unrestricted cash and cash equivalents at 31 December                       17      39.0        178.5   

(1) Includes purchase and sale of plant and equipment.
(2) VAT received on an internal property transfer was deemed to be a VAT supply. Input VAT was received in December 2011 whilst output VAT was not settled until January 2012.

Notes on pages 27 to 52 form part of these consolidated financial statements.

NOTES TO THE ACCOUNTS
1 PRINCIPAL ACCOUNTING POLICIES
General information

Capital & Counties Properties PLC was incorporated and registered in England and Wales on 3 February 2010 under the
Companies Act as a public company limited by shares, registration number 7145051. The registered office of the Company is
15 Grosvenor Street, London, W1K 4QZ, United Kingdom. The principal activity of the Company is to act as the ultimate parent
company of Capital & Counties Properties PLC Group (the "Group"), whose principal activity is the development and
management of property.

The Capital & Counties Properties PLC Group's assets principally comprise investment and development properties at Covent
Garden, Earls Court and the exhibition halls at Olympia.

Basis of preparation

The Group's consolidated financial statements are prepared in accordance with International Financial Reporting Standards
("IFRS"), as adopted by the European Union, International Financial Reporting Interpretations Committee ("IFRIC")
interpretations and with those parts of the Companies Act 2006 applicable to companies reporting under IFRS.

The consolidated financial statements have been prepared under the historical cost convention as modified for the revaluation
of property, available-for-sale investments and financial instruments held for trading.

Standards and guidelines relevant to the Group that were in issue and endorsed at the date of approval of the consolidated
financial statements but not effective at the balance sheet date and have not been adopted early are:

IFRS 10 'Consolidated Financial Statements'
IFRS 11 'Joint Arrangements'
IFRS 12 'Disclosure of Interests in other Entities'
IAS 27 'Separate Financial Statements' (revised)
IAS 28 'Investment in Associates and Joint Ventures' (revised)
IAS 32 'Financial Instruments: Presentation' (amendment)
IAS 36 'Impairment of Assets' (amendment)
IAS 39 'Financial Instruments: Recognition and Measurement' (amendment)

Revisions and amendments issued but not effective are not anticipated to have a material impact on the consolidated financial
statements with the exception of IFRS 11 'Joint Arrangements'. This standard, which has been endorsed by the EU, removes
the proportional consolidation option currently available under IAS 31 'Interests in Joint Ventures'. This will impact the Group's
published accounting policy in respect of joint ventures. Rather than proportionally consolidating the Group's share of assets,
liabilities, income and expenses on a line-by-line basis, the Group's net interest in the joint venture will be disclosed as a single
line item in both the consolidated balance sheet and the consolidated income statement. This change will reduce the total
assets and total liabilities as currently presented, but there will be no overall change in net assets. This standard will be adopted
by the Group from 1 January 2014.

During 2013, the following accounting standards and guidance were adopted by the Group:

IAS 1 'Presentation of Financial Statements' (amendment)
IAS 19 'Employee Benefits' (revised)
IFRS 7 'Financial Instruments: Disclosures' (amendment)
IFRS 13 'Fair Value Measurement'

Collectively these pronouncements had no significant impact on the consolidated financial statements and resulted in changes
to presentation and disclosure only.

A summary of the Group's principal accounting policies, which have been applied consistently across the Group is set out
below.

Going concern basis

The Directors are satisfied that the Group has adequate resources to continue in operational existence for the foreseeable
future and for this reason the consolidated financial statements have been prepared on a going concern basis.

1 PRINCIPAL ACCOUNTING POLICIES CONTINUED
Basis of consolidation

These consolidated financial statements include the consolidation of the following limited partnerships: Capital & Counties
CGP, Capital & Counties CGP 9, Capco CGP 2010 LP, Capco CGP 2012 LP, EC Properties LP and The Empress State
Limited Partnership. The members of these qualifying partnerships have taken advantage of disclosure exemptions available in
Statutory Instrument 2008/569 and therefore will not produce consolidated accounts at the partnership level. The consolidated
financial statements are prepared in British pounds sterling, which is also determined to be the functional currency of the
Parent.

Subsidiaries and joint ventures

Subsidiaries are fully consolidated from the date on which the Group is deemed to govern the financial and operating policies of
an entity, whether through a majority of the voting rights or otherwise. Subsidiaries cease to be consolidated from the date this
control is lost.

All intragroup balances, transactions, income and expenses are eliminated in full.

The Group's interest in jointly controlled entities is accounted for using proportional consolidation. The Group's share of the
assets, liabilities, income and expenses are combined with the equivalent items in the consolidated financial statements on a
line-by-line basis.

Investments in subsidiaries and joint ventures are reviewed at least annually for impairment. Where an indication of impairment
exists, an assessment of the recoverable amount is performed. The recoverable amount is based on the higher of the
investment's continued value in use or its fair value less cost to sell; fair value is derived from the entity's net asset value at the
balance sheet date.

Estimation and uncertainty

The preparation of consolidated financial statements in accordance with IFRS requires the use of estimates and assumptions
that affect the reported amounts of assets, liabilities, income and expenses. Although these estimates are based on
management's best knowledge of the amount, event or actions, actual results ultimately may differ from those estimates.

The most significant area of estimation and uncertainty in the consolidated financial statements is in respect of the valuation of
the property portfolio and investments, where external valuations are obtained. The valuation of the Group's property portfolio is
inherently subjective due to the assumptions as outlined within the property portfolio note. As a result, the valuations the Group
places on its property portfolio are subject to a degree of uncertainty and are made on the basis of assumptions which may not
prove to be accurate and could therefore have a material effect on the Group's financial performance and position.

Other areas of estimation and uncertainty are included within the accounting policies below, the more significant being:

Revenue recognition
Share based payment
Provisions
Pensions
Contingent liabilities and capital commitments
Income taxes
Trade and other receivables
Derivative financial instruments

Operating segments

Management has determined the operating segments with reference to reports on divisional financial performance and position
that are regularly reviewed by the Chief Executive, who is deemed to be the chief operating decision maker.

Foreign currencies

Transactions in currencies other than the Company's functional currency are recorded at the exchange rate prevailing at the
transaction date. Foreign exchange gains and losses resulting from settlement of these transactions and from retranslation of
monetary assets and liabilities denominated in foreign currencies are recognised in the income statement except for differences
arising on the retranslation of available-for-sale investments which are recognised in other comprehensive income.

1 PRINCIPAL ACCOUNTING POLICIES CONTINUED
Revenue recognition

Property rental income and exhibition income consist of gross income calculated on an accruals basis, together with services
where the Group acts as principal in the ordinary course of business, excluding sales of property. Rental income is spread
evenly over the period from lease commencement to lease expiry.

Lease incentive payments, including surrender premiums paid which can be directly linked to enhanced rental income, are
amortised on a straight-line basis over the lease term. Upon receipt of a surrender premium for the early termination of a lease,
the profit and non-recoverable outgoings relating to the lease concerned are immediately reflected in net rental income.

Contingent rents, being those lease payments that are not fixed at the inception of a lease, for example increases arising on
rent reviews, are recorded as income in the periods in which they are earned.

Rent reviews are recognised as income, based on management estimates, when it is reasonable to assume they will be
received. Estimates are derived from knowledge of market rents for comparable properties determined on an individual
property basis and updated for progress of negotiations.

Where revenue is obtained by the sale of property, it is recognised when the significant risks and rewards have been
transferred to the buyer. This will normally take place on exchange of contracts unless there are conditions that suggest
insufficient probability of future economic benefits flowing to the Group. For conditional exchanges, sales are recognised when
these conditions are satisfied.

Interest income is accrued on a time basis, by reference to the principal outstanding and the effective interest rate.

Dividend income is recognised when the relevant Group undertaking's right to receive payment has been established.

Exceptional items

Exceptional items are those items that in the Directors' view are required to be separately disclosed by virtue of their size or
incidence to enable a full understanding of the Group's financial performance. These items are excluded from the calculation of
underlying earnings.

Income taxes

Current tax is the amount payable on the taxable income for the year and any adjustment in respect of prior years. It is
calculated using rates that have been enacted or substantively enacted by the balance sheet date.

In accordance with IAS 12 'Income Taxes', deferred tax is provided for using the balance sheet liability method on temporary
differences between the carrying amounts of assets and liabilities for financial reporting purposes and the tax bases of those
assets and liabilities. However, temporary differences are not recognised to the extent that they arise from the initial recognition
of goodwill or an asset or liability in a transaction that is not a business combination and at the time of the transaction, affects
neither accounting nor taxable profit or loss; or are associated with investments in subsidiaries, joint ventures and associates
where the timing of the reversal of the temporary difference can be controlled by the parent, venture or investor, respectively,
and it is probable that the temporary differences will not reverse in the foreseeable future.

Deferred tax is determined using tax rates that have been enacted or substantively enacted by the balance sheet date and are
expected to apply when the related deferred tax asset is realised or the deferred tax liability is settled.

Deferred tax assets are recognised only to the extent that management believes it is probable that future taxable profit will be
available against which the deferred tax assets can be recovered. Deferred income tax assets and liabilities are only offset
when there is a legally enforceable right to offset current tax assets and liabilities and when the deferred income tax assets and
liabilities relate to income taxes levied by the same tax authority on either the same taxable group or different taxable entities
where there is an intention to settle balances on a net basis.

Tax is included in the income statement except when it relates to items recognised in other comprehensive income or directly in
equity, in which case the related tax is also recognised in other comprehensive income or directly in equity.

An investment property accounted for at fair value will normally be recovered through sale rather than use.

Discontinued operation

A discontinued operation is a component of the Group's business that represents a separate major line of the business that has
been disposed of or meets the criteria for classification as held for sale. Discontinued operations are presented separately from
continuing operations in both the income statement and statement of cash flows. The comparative period is also re-presented
in line with reporting requirements.

1 PRINCIPAL ACCOUNTING POLICIES CONTINUED
Share-based payment

The cost of granting share options and other share-based remuneration to employees and Directors is recognised through the
income statement with reference to the fair value of the instrument at the date of grant.

The income statement is charged over the vesting period of the options with a corresponding increase in equity.

An option pricing model is used applying assumptions around expected yields, forfeiture rates, exercise price and volatility.

Upon eventual exercise, a reserves transfer occurs with no further charge reflected in the income statement.

Own shares held in connection with employee share plans and other share-based payment arrangements are treated as
treasury shares and deducted from equity.

Investment and development property

Investment and development property are owned or leased by the Group and held for long-term rental income and capital
appreciation and exclude property occupied by the Group.

The Group has chosen to use the fair value model. Property and any related obligations are initially recognised when the
significant risks and rewards attached to the property have transferred to the Group. Payments made in respect of the future
acquisition of investment and development property, as is the case for the CLSA, are initially recognised as prepayments until
the recognition criteria outlined above have been met. Investment and development property are recorded at cost and
subsequently revalued at the balance sheet date to fair value as determined by professionally qualified external valuers on the
basis of market value after allowing for future transaction costs.

The fair value of property is arrived at by adjusting the market value as above for directly attributable lease incentive assets and
fixed head leases.

Property held under leases is stated gross of the recognised finance lease liability.

The valuation is based upon assumptions as outlined within the property portfolio note. These assumptions conform with the
Royal Institution of Chartered Surveyors ("RICS") Valuation Professional Standards. The cost of development properties
includes capitalised interest and other directly attributable outgoings, with the exception of properties and land where no
development is imminent in which case no interest is included. Interest is capitalised (before tax relief) on the basis of the
weighted average cost of debt outstanding until the date of practical completion.

When the Group redevelops a property for continued future use, that property is classified as an investment and development
property during the redevelopment period and continues to be measured at fair value.

Gains or losses arising from changes in the fair value of investment property are recognised in the income statement in the
period in which they arise. Depreciation is not provided in respect of investment property including plant and equipment integral
to such investment property.

When the use of a property changes from trading property to investment property, the property is transferred at fair value with
any resulting gain recognised as trading property profit.

Investment properties cease to be recognised as investment property when they have been disposed of or when they cease to
be held for the purpose of generating rental income or for capital appreciation.

Where the Group disposes of a property at fair value in an arm's length transaction the carrying value immediately prior to the
sale is adjusted to the transaction price, offset by any directly attributable costs, and the resulting gain or loss is recorded in the
income statement.

A property ceases to be recognised as investment property and is transferred at its fair value to trading property when, in the
Directors' judgement, development commences with the intention of sale. Criteria considered in this assessment include, the
Board's stated intention, contractual commitments and physical, legal and financial viability.

Share-based payment

The cost of granting share options and other share-based remuneration to employees and Directors is recognised through the
income statement with reference to the fair value of the instrument at the date of grant.

The income statement is charged over the vesting period of the options with a corresponding increase in equity.

An option pricing model is used applying assumptions around expected yields, forfeiture rates, exercise price and volatility.

Upon eventual exercise, a reserves transfer occurs with no further charge reflected in the income statement.

Own shares held in connection with employee share plans and other share-based payment arrangements are treated as
treasury shares and deducted from equity.

Investment and development property

Investment and development property are owned or leased by the Group and held for long-term rental income and capital
appreciation and exclude property occupied by the Group.

The Group has chosen to use the fair value model. Property and any related obligations are initially recognised when the
significant risks and rewards attached to the property have transferred to the Group. Payments made in respect of the future
acquisition of investment and development property, as is the case for the CLSA, are initially recognised as prepayments until
the recognition criteria outlined above have been met. Investment and development property are recorded at cost and
subsequently revalued at the balance sheet date to fair value as determined by professionally qualified external valuers on the
basis of market value after allowing for future transaction costs.

The fair value of property is arrived at by adjusting the market value as above for directly attributable lease incentive assets and
fixed head leases.

Property held under leases is stated gross of the recognised finance lease liability.

The valuation is based upon assumptions as outlined within the property portfolio note. These assumptions conform with the
Royal Institution of Chartered Surveyors (“RICS”) Valuation Professional Standards. The cost of development properties
includes capitalised interest and other directly attributable outgoings, with the exception of properties and land where no
development is imminent in which case no interest is included. Interest is capitalised (before tax relief) on the basis of the
weighted average cost of debt outstanding until the date of practical completion.

When the Group redevelops a property for continued future use, that property is classified as an investment and development
property during the redevelopment period and continues to be measured at fair value.

Gains or losses arising from changes in the fair value of investment property are recognised in the income statement in the
period in which they arise. Depreciation is not provided in respect of investment property including plant and equipment integral
to such investment property.

When the use of a property changes from trading property to investment property, the property is transferred at fair value with
any resulting gain recognised as trading property profit.

Investment properties cease to be recognised as investment property when they have been disposed of or when they cease to
be held for the purpose of generating rental income or for capital appreciation.

Where the Group disposes of a property at fair value in an arm's length transaction the carrying value immediately prior to the
sale is adjusted to the transaction price, offset by any directly attributable costs, and the resulting gain or loss is recorded in the
income statement.

A property ceases to be recognised as investment property and is transferred at its fair value to trading property when, in the
Directors' judgement, development commences with the intention of sale. Criteria considered in this assessment include, the
Board's stated intention, contractual commitments and physical, legal and financial viability.

Trading property

Trading property comprises those properties that in the Directors' view are not held for long-term rental income and capital
appreciation and are expected to be disposed of within one year of the balance sheet date or to be developed with the intention
to sell.

Such property is either acquired or if transferred from investment property, transferred at fair value which is deemed to
represent cost. Subsequently trading property is carried at the lower of cost and net realisable value. Net realisable value is the
estimated selling price in the ordinary course of business, less the estimated costs of completion and selling costs. In the case
of trading property this approximates market value as determined by professionally qualified external valuers at the balance
sheet date.

The amount of any write-down of trading property to market value is recognised as an expense in the period the write down
occurs. Should a valuation uplift occur in a subsequent period, the amount of any reversal shall be recognised as a reduction in
the previous write-down in the period in which the uplift occurs. This may not exceed the property's initial cost.

The sale of trading property is recognised as income when the significant risks and rewards have been transferred to the buyer.
Total costs incurred in respect of trading property are recognised simultaneously as an expense.

Leases

Leases are classified according to the substance of the transaction.

A lease that transfers substantially all the risks and rewards of ownership to the lessee is classified as a finance lease. All other
leases are normally classified as operating leases.

Group as a lessee:

In accordance with IAS 40 'Investment Property', property held under finance and operating leases may be accounted for as
investment property. Finance leases are recognised as both an asset and an obligation to pay future minimum lease payments.
The investment property asset is included in the balance sheet at the lower of fair value and the present value of minimum
lease payments, gross of the recognised finance lease liability. Lease payments are allocated between the liability and finance
charges so as to achieve a constant financing rate.

Other finance leased assets are capitalised at the lower of the fair value of the leased asset and the present value of the
minimum lease payments and depreciated over the shorter of the lease term and the useful life of the asset.

Rental expenses under operating leases are charged to the income statement on a straight-line basis over the lease term.

Plant and equipment

Plant and equipment consist of fixtures, fittings and other office equipment. Plant and equipment are stated at cost less
accumulated depreciation and any accumulated impairment losses. Cost includes the original purchase price of the asset plus
any attributable cost in bringing the asset to its working condition for its intended use. Depreciation is charged to the income
statement on a straight-line basis over an asset's estimated useful life to a maximum of five years.

Investments

Available-for-sale investments, being investments intended to be held for an indefinite period, are initially recognised and
subsequently measured at fair value.

Gains or losses arising from changes in the fair value of available-for-sale investments are included in other comprehensive
income, except to the extent that losses are determined to be attributable to impairment, in which case they are recognised in
the income statement and may not be reversed in subsequent periods.

Disposals are recorded upon distribution, at which time accumulated fair value adjustments are recycled from reserves to the
income statement.

Trade and other receivables

Trade and other receivables are initially recognised at fair value and subsequently measured at amortised cost. The Directors
exercise judgement as to the collectability of the Group's trade and other receivables and determine when it is appropriate to
impair these assets.

Impairment of financial assets

An annual review is conducted for financial assets to determine whether there is any evidence of a loss event as described by
IAS 39 'Financial Instruments: Recognition and Measurement'. Factors such as days past due, credit status of the
counterparty, historical evidence of collection and probability of deriving future economic benefit are considered to assess
whether there is objective evidence of impairment. The amount of any potential loss is calculated by estimating future cash
flows or by using fair value where this is available through observable market prices. If, in a subsequent period, the amount of
the impairment loss decreases and the decrease can be related objectively to an event occurring after the original impairment
was recognised, the impairment reversal is recognised in the income statement on a basis consistent with the original charge.

Cash and cash equivalents

Cash and cash equivalents are recognised at fair value. Cash and cash equivalents comprise cash on hand, deposits with
banks and other short-term highly liquid investments with original maturities of three months or less.

Derivative financial instruments

The Group uses non-trading derivative financial instruments to manage exposure to interest rate risk. These instruments have
not been designated as qualifying for hedge accounting and are classified as held for trading. They are initially recognised on
the trade date at fair value and subsequently remeasured at fair value based on market price. Changes in fair value are
recognised directly in the income statement.

Trade and other payables

Trade payables are obligations for goods or services acquired in the ordinary course of business. Trade payables are
recognised at fair value and subsequently measured at amortised cost until settled.

Dividend distribution

Dividend distributions to shareholders are recognised as a liability once approved by shareholders.

Provisions

Provisions are recognised when the Group has a current obligation arising from a past event and it is probable that the Group
will be required to settle the obligation. Provisions are measured at the Directors' best estimate of the expenditure required to
settle the obligation at the balance sheet date.

Borrowings

Borrowings are recognised initially at their net proceeds as an approximation of fair value and subsequently carried at
amortised cost. When cash flows can be reliably measured, any transaction costs, premiums or discounts are capitalised and
recognised over the contractual life of the loan using the effective interest rate method. When cash flows can not be measured
reliably, or in the event of early repayment, transaction costs, premiums or discounts paid or unamortised costs are recognised
immediately in the income statement.

Pensions

The costs of the defined contribution scheme and the Group's personal pension plans are charged against profits in the year in
which they fall due.

Actuarial gains and losses arising from experience adjustments and changes in actuarial assumptions of the defined benefit
scheme are recognised immediately as a charge in other comprehensive income for the period in which they arise with a
corresponding increase in the pension surplus or deficit. These re-measurements are not reclassified to the income statement
in subsequent periods. Past service costs, current service costs, curtailment or settlement gains or losses and net interest
income or expense are recognised immediately in the income statement. Net interest is calculated by applying the discount
rate to the opening plan assets and scheme obligation. The defined benefit obligation is calculated annually by independent
actuaries using the projected unit credit method and applying assumptions which are agreed between the Group and its
actuaries.

Contingent liabilities and capital commitments

Contingent liabilities are disclosed where there are present or possible obligations arising from past events, but the economic
impact is uncertain in timing, occurrence or amount. A description of the nature and, where possible, an estimate of the
financial effect of contingent liabilities are disclosed.

Capital commitments are disclosed when the Group has a contractual future obligation which has not been provided for at the
balance sheet date, as is the case for the CLSA. Amounts are only provided for where such obligations are onerous.

Share capital

Ordinary shares are classified as equity. Incremental costs directly attributable to the issue of ordinary shares are recognised
as a deduction from equity, net of any tax effects.

Where the Group's own shares are re-purchased, the consideration paid is classified as treasury shares and deducted from
equity. Where such shares are subsequently sold or re-issued, any consideration received is included in equity.

2 SEGMENTAL REPORTING
Management has determined the operating segments based on reports reviewed by the Chief Executive, who is deemed to be
the chief operating decision maker. The principal performance measures have been identified as net rental income and net
asset value.

With the cessation of The Great Capital Partnership (“GCP”) and the changes more widely in the business over the past twelve
months, the chief operating decision maker has revised the segmental analysis. As a result of these changes, the segment
previously called Earls Court & Olympia has been split in two: Earls Court Properties and Venues. Outlined below are the
operating segments of the Group:

    -    Covent Garden.
    -    Earls Court Properties comprises the Group's interests at Earls Court, predominantly EC1 & EC2, the Empress State
         Building and a 50 per cent of the Lillie Square joint venture (previously Seagrave Road).
    -    Venues comprises the exhibitions business including the Olympia property assets.
    -    Other comprises the discontinued activity of GCP, the Group's residual China investments, the business unit
         historically known as Opportunities and other head office companies.  

The Group's operating segments derive their revenue primarily from rental income from lessees, with the exception of Venues
whose revenue principally represents exhibition income.

Unallocated expenses consist primarily of costs incurred centrally which are neither directly nor meaningfully attributable to
individual segments.

Reportable segments
                                                                              2013
                                                   Covent      Earls Court                             Group
                                                   Garden    Properties(1)      Venues      Other      total
Continuing operations                                GBPm             GBPm        GBPm       GBPm       GBPm
Revenue                                              70.0             15.0        33.6        0.2      118.8
Rent receivable and exhibition income                41.3             15.0        33.6          –       89.9
Service charge income                                 2.8                –           –          –        2.8
Rental income                                        44.1             15.0        33.6          –       92.7
Rental expenses(2)                                  (8.5)            (0.5)      (20.1)          –     (29.1)
Net rental income                                    35.6             14.5        13.5          –       63.6
Other income                                         10.4                –           –        0.2       10.6
Gain on revaluation and sale of investment and
development property                                179.9            121.2         9.5          –      310.6
Profit on sale of available-for-sale investments        –                –           –        0.9        0.9
Write down of trading property                      (0.5)            (1.2)           –          –      (1.7)
Write back of impairment of other receivables           –                –           –        2.0        2.0
Other exceptional charges                               –            (0.5)           –          –      (0.5)
Segment result                                      225.4            134.0        23.0        3.1      385.5
Unallocated costs
Administration expenses                                                                               (33.6)
Operating profit                                                                                       351.9
Net finance costs(3)                                                                                   (4.7)
Profit before tax                                                                                      347.2
Taxation                                                                                              (13.5)
Profit for the year from continuing operations                                                         333.7
Discontinued operation
Profit for the year from discontinued operation         –               –            –        4.7        4.7
Profit for the year                                                                                    338.4
Profit attributable to:
Owners of the Parent                                                                                   337.4
Non-controlling interests                                                                                1.0
Summary balance sheet
Total segment assets4                             1,180.6           897.9        175.1       18.5    2,272.1
Total segment liabilities4                        (312.8)         (120.4)       (33.8)     (17.0)    (484.0)
Segmental net assets                                867.8           777.5        141.3        1.5    1,788.1
Unallocated net assets(3)                                                                               24.0
Net assets                                                                                           1,812.1
Other segment items:
Depreciation                                        (0.1)               –        (0.2)          –      (0.3)
Capital expenditure                                (40.0)         (205.6)        (5.1)      (0.8)    (251.5)

(1) Included in the net rental income from Earls Court Properties is GBP11.9 million attributable to the Empress State Building, of which GBP1.2 million represents non-
    controlling interests.
(2) Comprises service charge and other non-recoverable costs.
(3) The Group operates a central treasury function which manages and monitors the Group's finance income and costs on a net basis and the majority of the Group's
    cash balances.
(4) Total assets and total liabilities exclude loans between and investments in Group undertakings.

Reportable segments
                                                                      2012 Re-presented
                                                   Covent   Earls Court                               Group
                                                   Garden    Properties       Venues       Other      total
Continuing operations                                GBPm          GBPm         GBPm        GBPm       GBPm
Revenue                                              54.8           9.4         41.7         3.5      109.4
Rent receivable and exhibition income                38.0           9.4         41.7           –       89.1
Service charge income                                 2.5             –            –           –        2.5
Rental income                                        40.5           9.4         41.7           –       91.6
                    
Rental expenses(1)                                  (8.4)         (0.1)       (23.2)           –     (31.7)
Net rental income                                    32.1           9.3         18.5           –       59.9
Other income                                          2.9             –            –         3.2        6.1
Gain on revaluation and sale of investment and
development property                                 50.7         139.8          0.3         0.1      190.9
Profit on sale of available-for-sale investments        –             –            –        10.0       10.0
Profit on sale of subsidiaries                        0.6             –          1.1           –        1.7
Loss of control of former subsidiary                    –         (1.0)            –           –      (1.0)
Write down of trading property                          –         (0.9)            –           –      (0.9)
Write back of impairment of other receivables           –             –            –         0.6        0.6
Segment result                                       86.3         147.2         19.9        13.9      267.3
Unallocated costs
Administration expenses                                                                              (26.2)
Operating profit                                                                                      241.1
                      
Net finance costs(2)                                                                                 (22.4)
Profit before tax                                                                                     218.7
Taxation                                                                                              (8.0)
Profit for the year from continuing operations                                                        210.7
Discontinued operation
Profit for the year from discontinued operation         –             –            –       29.3        29.3
Profit for the year                                                                                   240.0
Summary balance sheet
                          
Total segment assets(3)                             977.5         573.4        163.0       70.8     1,784.7
Total segment liabilities3                        (316.0)        (75.8)       (54.4)     (17.0)     (463.2)
Segmental net assets                                661.5         497.6        108.6       53.8     1,321.5
Unallocated net assets2                                                                               156.3
Net assets                                                                                          1,477.8
Other segment items:
Depreciation                                        (0.1)             –            –          –       (0.1)
Capital expenditure                               (100.8)        (32.3)       (10.2)      (2.2)     (145.5)

(1) Comprises service charge and other non-recoverable costs.
(2) The Group operates a central treasury function which manages and monitors the Group's finance income and costs on a net basis and the majority of the Group's
    cash balances.
(3) Total assets and total liabilities exclude loans between and investments in Group undertakings.

The Group's geographical segments are set out below. This represents where the Group's assets and revenues are
predominantly domiciled.

Revenue primarily represents income from tenants and total assets primarily constitute investment and development property.
                         
                  Revenue(1)             Total assets             Capital expenditure
                  2013        2012       2013             2012       2013          2012
                  GBPm        GBPm       GBPm             GBPm       GBPm          GBPm
Central London   118.8       109.4    2,282.1          1,921.9      251.5         145.5
Other(2)             –           –        0.4              3.6          –             –
                 118.8       109.4    2,282.5          1,925.5      251.5         145.5

(1) Represents revenue from continuing operations.
(2) Other represents the Group's interest in Harvest China Real Estate Fund I.

3 OTHER INCOME                                         
                                       2013     2012   
Continuing operations                  GBPm     GBPm   
Sale of trading property               25.9     17.8   
Cost of sales of trading property    (15.5)   (11.7)   
Profit on sale of trading property     10.4      6.1   
Non-recurring income                    0.2        –   
Other income                           10.6      6.1   

4 GAIN ON REVALUATION AND SALE OF INVESTMENT AND DEVELOPMENT PROPERTY

                                                                              Re-presented   
                                                                       2013           2012   
Continuing operations                                                  GBPm           GBPm   
Gain on revaluation of investment and development property            310.6          177.7   
Gain on loss of control and appropriation to trading property             –           12.6   
Gain on sale of investment and development property                       –            0.6   
Gain on revaluation and sale of investment and development property   310.6          190.9 
  
5 PROFIT ON SALE OF AVAILABLE-FOR-SALE INVESTMENTS                                           
                                                                       2013           2012   
Continuing operations                                                  GBPm           GBPm   
Profit on sale of available-for-sale investments                        0.9           10.0   

Profit on sale of available-for-sale investments represents part divestments from Harvest China Real Estate Fund I following
property disposals made by the fund as a result of actions taken by the fund manager.

6 PROFIT ON SALE OF SUBSIDIARIES
On 9 February 2012, the Group disposed of its shareholding in The Brewery by EC&O Limited for a consideration of GBP2.0
million, resulting in a profit of GBP1.1 million.

On 29 February 2012, the Group disposed of its shareholding in Covent Garden Restaurants Limited for a consideration of
GBP1.0 million, resulting in a profit of GBP0.6 million.

7 LOSS OF CONTROL OF FORMER SUBSIDIARY
On 30 August 2012, the Group completed a joint venture arrangement with the Kwok Family Interests. The venture, to develop
land interests at Lillie Square, resulted in the loss of control of the former subsidiary Lillie Square GP Limited (formerly
Seagrave Road GP Limited), and the disposal of a 50 per cent limited partnership interest in Lillie Square LP (formerly

7 LOSS OF CONTROL OF FORMER SUBSIDIARY CONTINUED
Seagrave Road LP). Consideration received of GBP7.5 million and associated costs resulted in a net loss of GBP1.0 million.
On the date control was lost, the 50 per cent investment retained was re-measured and reflected at fair value resulting in a gain
on appropriation to trading property of GBP6.3 million.

The disposal of the net assets of the partnership together with reorganisation of internal funding (previously fully provided by
the Group and now reorganised to reflect the respective 50:50 partnership interests) resulted in a net cash inflow of GBP65.4
million.

8 WRITE BACK OF IMPAIRMENT OF OTHER RECEIVABLES
Following an impairment review of loan notes receivable by the Group, a write back of GBP2.0 million was recognised in 2013
(2012: GBP0.6 million). The write back was calculated with reference to the market value of certain property assets that the
Group would have priority over in the event of default.

9 FINANCE COSTS
                                                                    Re-presented
                                                            2013            2012
Continuing operations                                       GBPm            GBPm
Finance costs:
On bank overdrafts, loans and other                         21.2            21.9
Amortisation of debt issue costs                             1.2             1.2
On obligations under finance leases                          0.4             0.4
Gross finance costs                                         22.8            23.5
Interest capitalised on developments                       (0.8)           (2.6)
Finance costs                                               22.0            20.9
Costs of termination of derivative financial instruments     0.2             0.7
Other exceptional finance costs                                –             1.3
Other finance costs(1)                                       0.2             2.0

(1) Treated as exceptional and therefore excluded from the calculation of underlying earnings.

Interest is capitalised, before tax relief, on the basis of the weighted average cost of debt of 4.4 per cent (2012: 5.2 per cent)
applied to the cost of developments during the year.

10 BUSINESS COMBINATIONS

The Empress State Limited Partnership
On 29 May 2013, the Group acquired control of the 50 per cent interest not already owned in The Empress State Limited
Partnership, which owns and manages, through its general partner, the Empress State Building in West London. This 451,000
sq ft 31 storey office building is adjacent to the Group's EC1 & EC2 interests and benefits from an index-linked lease to the
Metropolitan Police Authority until 2019.

The partnership contributed revenues of GBP2.4 million during the period between exchange in May and completion in August,
of which GBP1.2 million is disclosed as being attributable to non-controlling interests. A net profit of GBP1.0 million was
attributable to non-controlling interests during this time. Had the acquisition occurred on 1 January 2013 the Group's revenue
and the net profit would have been GBP3.1 million and GBP7.9 million higher respectively. The net profit amount includes
revaluation gains recognised on exchange of contracts.

On the date control was acquired, the assets acquired and liabilities assumed of the business combination were fair valued with
resulting gains or losses being taken to the Group's income statement. No deferred tax was recognised on this date because
the tax base of the underlying asset was equal to its fair value.

The fair value of assets acquired and liabilities assumed by the business combination were as follows:

                        GBPm   
Non-current assets     117.0   
Current assets           2.8   
Current liabilities   (75.9)   
Net assets acquired     43.9   

Completion of the acquisition occurred on 1 August 2013. Consideration for the net assets acquired, including the non-
controlling interest share of profits, was GBP45 million. Total cash paid was GBP50.3 million comprising both consideration and
the repayment of the joint venture partner's loan account. The Empress State Limited Partnership is now consolidated as a
subsidiary of the Group.

A&P Bolding Limited
On 5 September 2013 the Lillie Square joint venture acquired 100 per cent of the share capital of A&P Bolding Limited for the
purpose of obtaining a number of properties situated adjacent to the joint venture's land interest at Lillie Square.
The Group's share of the fair value of the assets acquired and liabilities assumed by the business combination, which
represents the consideration paid, was as follows:

                       GBPm   
Current assets          7.4   
Current liabilities   (0.1)   
Net assets acquired     7.3   

Had the acquisition occurred on 1 January 2013, there would have been no material impact on either the Group's revenue or
profit.

11 DISCONTINUED OPERATION
On 29 April 2013, the Group exchanged contracts for the disposal of the final asset, Park Crescent West, in The Great Capital
Partnership (“GCP”). This was effected as part of the Group's strategy to dispose of non-core assets in support of the Group's
core estates and, as a result, the partnership has been presented as a discontinued operation with comparatives re-presented
accordingly. GCP was established as a joint venture in 2007 with Great Portland Estates plc, to own, manage and develop a
number of central London properties. The partnership has been accounted for as a joint venture of the Group and has been
proportionately consolidated in accordance with the Group's published accounting policy.

The Group's share of results and residual net assets of GCP which have been included in the income statement and balance
sheet, were as follows:
                                                                       2013    2012   
Summarised income statement                                            GBPm    GBPm   
Revenue                                                                 1.2     5.9   
Net rental income                                                       1.2     5.4   
Gain on revaluation and sale of investment and development property     2.8    23.0   
Administration expenses                                               (0.2)     0.1   
Operating profit                                                        3.8    28.5   
Net finance costs                                                         –   (1.7)   
Profit before tax                                                       3.8    26.8   
Taxation                                                                0.9     2.5   
Profit for the year from discontinued operation                         4.7    29.3   

                                       2013    2012
Summarised balance sheet               GBPm    GBPm
Investment and development property      –     48.4
Deferred tax                            0.3       –
Other current assets                    0.3     3.7
Partners loans(1)                      93.0    96.5
Current liabilities                       –   (7.1)
Net assets                             93.6   141.5

(1) Eliminates on consolidation.

A profit of GBP2.8 million (2012: GBP15.8 million) arose on disposal of the assets of GCP, being the proceeds of disposal less
the carrying amount of the assets.

12 TAXATION                                                                        
                                                                    Re-presented   
                                                             2013           2012   
Continuing operations                                        GBPm           GBPm   
Current income tax:                                                                
Current income tax charge                                     2.2            2.6   
Current income tax on profits excluding exceptional items     2.2            2.6   
Deferred income tax:                                                               
On investment and development property                        1.3          (1.5)   
On accelerated capital allowances                           (0.6)              –   
On losses                                                     0.5            1.1   
On derivative financial instruments                           6.3            2.8   
On non-exceptional items                                      0.5              –   
On exceptional items                                            –            1.7   
Deferred income tax on profits                                8.0            4.1   
Current income tax charge on exceptional items                2.5            1.4   
Adjustments in respect of previous years - current tax      (1.4)          (0.1)   
Adjustments in respect of previous years - deferred tax       2.2              –   
Total tax expense reported in the income statement           13.5            8.0   

Factors affecting the tax charge for the year
The tax assessed for the year is GBP13.5 million which reflects a rate lower than the standard rate of corporation tax in the
United Kingdom. The differences are explained below:

                                                                                                          Re-presented   
                                                                                                   2013           2012   
Continuing operations                                                                              GBPm           GBPm   
Profit before tax                                                                                 347.2          218.7   
Profit on ordinary activities multiplied by the standard rate in the UK of 23.3% (2012: 24.5%)     80.7           53.6   
UK capital allowances not reversing on sale                                                           –            1.6   
Revaluation surplus not recognised in deferred tax                                               (70.0)         (41.7)   
Prior year corporation tax items                                                                    0.8          (0.1)   
Transfer pricing adjustment                                                                         0.3            0.4   
Expenses disallowed                                                                                 1.4            0.5   
Non-taxable items                                                                                 (0.8)          (5.4)   
Other timing differences                                                                            2.8              –   
Reduction in deferred tax following change in corporate tax rate                                  (1.7)          (0.9)   
Total tax expense reported in the income statement                                                 13.5            8.0   

Tax arising on items recognised in other comprehensive income is also reflected within other comprehensive income. This
includes deferred tax on an element of the pension movement. Tax arising on items recognised directly in equity is reflected in
equity. This includes deferred tax on an element of the share-based payment.

Further amendments to the UK corporation tax system were announced in the March 2013 Budget which included changes to
the main rates of UK corporation tax. The main rate of corporation tax decreased from 24 per cent to 23 per cent from 1 April
2013, and will reduce further to 21 per cent from 1 April 2014, and 20 per cent from 1 April 2015.

13 DIVIDENDS
                                                            2013      2012
                                                            GBPm      GBPm
Ordinary shares
Prior year final dividend of 1.0p per share (2012: 1.0p)     7.5       6.8
Interim dividend of 0.5p per share (2012: 0.5p)              3.8       3.5
Dividend expense                                            11.3      10.3
Shares issued in lieu of cash(1)                           (3.6)     (1.1)
Adjustment for bonus issue(1)                              (0.8)     (0.6)
Cash dividends paid                                          6.9       8.6
Proposed final dividend of 1.0p per share (2012: 1.0p)       7.6       7.5

(1) Shares issued in lieu of cash relates to those shareholders who elect to receive their dividends in scrip form following the declaration of dividend which occurs at the
    Company's Annual General Meeting. Adjustments for bonus issue arise from those shareholders who elect to receive their dividends in scrip form on an evergreen
    basis. These shares are treated as a bonus issue and allotted at nominal value.

14 EARNINGS PER SHARE AND NET ASSETS PER SHARE
                                                                2013                          2012 Re-presented
                                                   Earnings        Shares       Pence   Earnings        Shares         Pence
(a) Earnings per share                                 GBPm  Million(1,2)   per share       GBPm  Million(1,2)     per share
Continuing and discontinued operations
attributable to owners of the Parent
Basic earnings                                        337.4        754.7         44.7      240.0         703.9          34.1
Dilutive effect of share option awards                    –          6.1                     3.1           5.9
Dilutive effect of contingently issuable shares           –          0.9                       –           1.8
Dilutive effect of matching nil cost options              –          4.3                       –           3.0
Dilutive effect of deferred shares                        –          1.0                       –           0.4
Diluted earnings                                      337.4        767.0         44.0      243.1         715.0          34.0
Continuing operations attributable to owners
of the Parent
Basic earnings                                        332.7        754.7         44.1      210.7         703.9          29.9
Diluted earnings                                      332.7        767.0         43.4      213.8         715.0          29.9
Discontinued operation attributable to owners
of the Parent
Basic earnings                                          4.7        754.7          0.6       29.3         703.9           4.2
Diluted earnings                                        4.7        767.0          0.6       29.3         715.0           4.1
Continuing operations attributable to owners
of the Parent
Basic earnings                                        332.7                                210.7
Adjustments:
Gain on sale of trading property                     (10.4)                                (6.1)
Gain on revaluation and sale of investment and
development property                                (310.6)                              (190.9)
Profit on sale of subsidiaries                            –                                (1.7)
Loss of control of former subsidiary                      –                                  1.0
Write down of trading property                          1.7                                  0.9
Other exceptional charges                               0.5                                    –
Costs of termination of derivative financial
instruments                                             0.2                                  0.7
Change in fair value of derivative financial
instruments                                          (16.4)                                  0.3
Current tax adjustments                                 2.0                                  1.4
Deferred tax adjustments                                9.2                                  1.2
Less amounts above due to non-controlling
interests                                               0.5                                    –
EPRA adjusted earnings on continuing
operations                                              9.4        754.7         1.2        17.5        703.9           2.5
Non-recurring income                                  (0.2)                                    –
Profit on sale of available-for-sale investments      (0.9)                               (10.0)
Write back of impairment of other receivables         (2.0)                                (0.6)
Refinancing fees                                          –                                  1.3
Current tax adjustments                                 0.5                                (1.1)
Deferred tax adjustments                              (1.5)                                  1.7
Discontinued operation                                  2.0                                  3.7
Underlying earnings                                     7.3        754.7         1.0        12.5        703.9           1.8

(1) Weighted average number of shares in issue has been adjusted by 0.2 million (2012: 0.3 million) for the issue of bonus shares in connection with the scrip dividend
    scheme.
(2) Weighted average number of shares in issue has been adjusted by 0.3 million (2012: nil) for shares held in Treasury.

14 EARNINGS PER SHARE AND NET ASSETS PER SHARE CONTINUED
Headline earnings per share is calculated in accordance with Circular 2/2013 issued by the South African Institute of Chartered
Accountants (SAICA), a requirement of the Group's JSE listing. This measure is not a requirement of IFRS.

                                                              2013                          2012 Re-presented

                                                   Earnings        Shares        Pence   Earnings         Shares         Pence
                                                       GBPm  Million(1,2)    per share       GBPm   Million(1,2)     per share
Profit attributable to owners of the Parent
Basic earnings                                        337.4         754.7         44.7      240.0          703.9          34.1
Adjustments:
Gain on revaluation and sale of investment
and development property                            (313.4)                               (213.9)
Profit on sale of available-for-sale investments      (0.9)                                (10.0)
Profit on sale of subsidiaries                            –                                 (1.7)
Loss of control of former subsidiary                      –                                   1.0
Write back of impairment of other receivables         (2.0)                                 (0.6)
Deferred tax adjustments                                1.3                                 (3.6)
Headline earnings                                      22.4         754.7          3.0       11.2          703.9           1.6
Dilutive effect of share options awards                   –           6.1                     3.1            5.9
Dilutive effect of contingently issuable shares           –           0.9                       –            1.8
Dilutive effect of matching nil cost options              –           4.3                       –            3.0
Dilutive effect of deferred shares                        –           1.0                       –            0.4
Diluted headline earnings                              22.4         767.0          2.9       14.3          715.0           2.0

(1) Weighted average number of shares in issue has been adjusted for issue of bonus shares in connection with the scrip dividend scheme, 0.2 million (2012: 0.3
    million)
(2) Weighted average number of shares in issue has been adjusted by 0.3 million (2012: nil) for shares held in Treasury.

                                                                     2013                                 2012
                                                      Net assets     Shares        Pence   Net assets       Shares         Pence
b) Net assets per share                                     GBPm    million    per share         GBPm   million(1)     per share
Net assets attributable to owners of the Group           1,812.1      757.9        239.1      1,477.8        752.7         196.3
Adjustments:
Effect of dilution on exercise of options                      –        6.2                         –          6.7
Effect of dilution on issue of contingently issuable
shares                                                         –           –                        –          1.8
Effect of dilution on issue of matching nil cost
options                                                        –        4.3                         –          3.0
Effect of dilution on issue of deferred shares                 –        1.0                         –          0.4
Diluted NAV                                              1,812.1      769.4        235.5      1,477.8        764.6         193.3
Fair value of derivative financial instruments              14.1                                 30.8
Unrecognised surplus on trading property                    69.2                                 37.5
Deferred tax adjustments                                    16.2                                  6.9
EPRA adjusted, diluted NAV                               1,911.6      769.4        248.5      1,553.0        764.6         203.1
Fair value of derivative financial instruments            (14.1)                              (30.8)
Deferred tax adjustments                                  (13.1)                                (5.1)
EPRA adjusted, diluted NNNAV                             1,884.4      769.4        244.9      1,517.1        764.6         198.4

(1) The number of shares in issue at the prior year end has been adjusted by 0.4 million for shares held in Treasury.

15 PROPERTY PORTFOLIO

a) Investment and development property
                                                      Property portfolio                                 Tenure

                                                        Earls
                                           Covent       Court
                                           Garden  Properties      Venues     Other       Total    Freehold   Leasehold
                                             GBPm        GBPm        GBPm      GBPm        GBPm        GBPm        GBPm

At 1 January 2012                           797.5       437.6       135.9     245.8     1,616.8      794.7        822.1
Reclassification                                –           –           –         –           –       (0.5)         0.5
Additions from acquisitions                  88.6         7.4           –         –        96.0        82.6        13.4
Additions from subsequent expenditure         6.7        21.3        10.2       2.2        40.4        17.6        22.8
Loss of control of former subsidiary            –      (60.8)           –         –      (60.8)      (59.2)       (1.6)
Disposals                                   (2.4)       (0.9)           –   (206.8)     (210.1)      (54.4)     (155.7)
Transfers to trading property              (20.2)      (60.8)           –         –      (81.0)      (59.1)      (21.9)
Gain on valuation(1)                         50.7       126.6         0.4       7.2       184.9        33.7       151.2
At 31 December 2012                         920.9       470.4       146.5      48.4     1,586.2       755.4       830.8
Additions from acquisitions                  17.9        38.3           –         –        56.2        39.7        16.5
Additions from subsequent expenditure        10.5        30.0         5.1       0.8        46.4        16.0        30.4
Disposals                                       –           –           –    (49.2)      (49.2)           –      (49.2)
Control acquired of former joint venture        –       121.7           –         –       121.7       121.7           –
Transfers to trading property              (20.8)           –           –         –      (20.8)      (20.8)           –
Gain on valuation(1)                        179.9       121.2         9.5         –       310.6       138.6       172.0
At 31 December 2013                       1,108.4       781.6       161.1         –     2,051.1     1,050.6     1,000.5

b) Trading property
                                                               Property portfolio                              Tenure

                                                                 Earls
                                                     Covent      Court
                                                     Garden Properties        Venues   Other    Total   Freehold  Leasehold
                                                       GBPm       GBPm          GBPm    GBPm     GBPm       GBPm       GBPm

At 1 January 2012                                         –          –             –     0.2      0.2        0.2          –
                                                 
Transfers from investment and development property(2)  20.2       67.1             –       –     87.3       65.4       21.9
Additions from acquisitions                               –        2.4             –       –      2.4        2.4          –
Additions from subsequent expenditure                   5.5        1.2             –       –      6.7        1.6        5.1
Disposals                                            (11.1)          –             –   (0.2)   (11.3)     (11.3)          –
Write down of trading property3                           –      (0.9)             –       –    (0.9)      (0.9)          –
At 31 December 2012                                    14.6       69.8             –       –     84.4       57.4       27.0
Transfers from investment and development property     20.8          –             –       –     20.8       20.8          –
Acquisition by joint venture                              –        9.1             –       –      9.1        9.1          –
Additions from subsequent expenditure                  11.6        6.5             –       –     18.1       15.9        2.2
Disposals                                            (15.5)          –             –       –   (15.5)      (3.5)     (12.0)
Write down of trading property(3)                     (0.5)      (1.2)             –       –    (1.7)      (1.7)          –
At 31 December 2013                                    31.0       84.2             –       –    115.2       98.0       17.2

c) Market value reconciliation of total property
                                                                 Covent   Earls Court
                                                                 Garden    Properties   Venues     Other      Total
                                                                   GBPm          GBPm     GBPm      GBPm       GBPm

Carrying value of investment, development and trading property
at 31 December 20124                                              935.5         540.2     146.5     48.4    1,670.6
Adjustment in respect of head leases                              (3.7)             –         –    (0.1)      (3.8)
Adjustment in respect of tenant incentives                         17.1             –         –        –       17.1
Unrecognised revaluation surplus on trading property(5)             3.4          34.1         –        –       37.5
Market value of investment, development and trading property
at 31 December 2012                                               952.3         574.3     146.5     48.3    1,721.4
Carrying value of investment, development and trading property
at 31 December 20134                                            1,139.4         865.8     161.1        –    2,166.3
Adjustment in respect of head leases                              (3.8)             –         –        –      (3.8)
Adjustment in respect of tenant incentives                         19.7             –         –        –       19.7
Unrecognised revaluation surplus on trading property(5)             1.0          68.2         –        –       69.2
Market value of investment, development and trading
property at 31 December 2013                                    1,156.3         934.0     161.1        –    2,251.4

(1) Gain on valuation recognised in the income statement within gain on revaluation and sale of investment and development property. This gain is unrealised and
    relates to assets held at the end of the year.
(2) In respect of the transfer value of Earls Court Properties, further details are disclosed in note 7.
(3) The value of trading property carried at net realisable value was GBP39.1 million at 31 December 2013 (2012: GBP1.8 million).
(4) Included within investment and development property is GBP0.8 million (2012: GBP2.6 million) of interest capitalised during the year on developments in progress.
(5) The unrecognised revaluation surplus on trading property is shown for informational purposes only and is not a requirement of IFRS. Trading property continues to
    be measured at the lower of cost and net realisable value in the consolidated financial statements.

At 31 December 2013, the Group was contractually committed to GBP105.9 million (2012: GBP21.4 million) of future
expenditure for the purchase, construction, development and enhancement of investment, development and trading property.
Refer to note 25 for further information on capital commitments. The fair value of the Group's investment, development and
trading property as at 31 December 2013 was determined by independent, appropriately qualified external valuers Jones Lang
LaSalle for Earls Court Properties (excluding the Empress State Building) and Venues; and CB Richard Ellis for the remainder
of the Group's investment, development and trading property. The valuations conform to the Royal Institution of Chartered
Surveyors (RICS) Valuation Professional Standards. Fees paid to valuers are based on fixed price contracts.

Each year the Investment Director, on behalf of the Board, appoints the external valuers. The valuers are selected based upon
their knowledge, independence and reputation for valuing assets such as those held by the Group.

Valuations are performed bi-annually and are performed consistently across all properties in the Group's portfolio. At each
reporting date appropriately qualified employees of the Group verify all significant inputs and review computational outputs.
Valuers submit and present summary reports to the Group's Audit Committee, with the Investment Director reporting to the
Board on the outcome of each valuation round.

Valuations take into account tenure, lease terms and structural condition. The inputs underlying the valuations include market
rent or business profitability, likely incentives offered to tenants, forecast growth rates, yields, EBITDA, discount rates,
construction costs including any site specific costs (for example section 106), professional fees, planning fees, developer's
profit including contingencies, planning and construction timelines, lease regear costs, planning risk and sales prices based on
known market transactions for similar properties or properties similar to those contemplated for development are considered.

Valuations are based on what is determined to be the highest and best use. When considering the highest and best use a
valuer will consider, on a property by property basis, its actual and potential uses which are physically, legally and financially
viable. Where the highest and best use differs from the existing use, the valuer will consider the cost and the likelihood of
achieving and implementing this change in arriving at its valuation.

A number of the Group's properties have been valued on the basis of their development potential which differs from their
existing use. Most notably, within Earls Court Properties the Group's interests at EC1 & EC2 have been valued on the basis of
a mixed use, residential led scheme. The properties are currently used as exhibition venues, generating an income stream for
the Group, while the process to achieve the change in use is being implemented. Within the Covent Garden segment, where
appropriate, a number of properties have been valued on the basis of their development potential, principally for the conversion
of existing use to residential use or for improving the configuration of retail units.

In respect of development valuations, the valuer ordinarily considers the gross development value of the completed scheme
based upon assumptions of capital and rental values and yields of the properties which would be created through the
implementation of the development. Deductions are then made for anticipated costs, including an allowance for developer's
profit before arriving at a valuation. The valuer has applied this methodology to derive a residual land valuation of the Group's
interests at EC1 & EC2 on the basis of a standalone development of these interests.

There are often restrictions on both freehold and leasehold property which could have a material impact on the realisation of
these assets. The most significant of these occur when planning permission or lease extension and renegotiation of use are
required (as is the case currently regarding the Empress State Building and EC1 & EC2 respectively) or when a credit facility is
in place. These restrictions are factored into the property's valuation by the external valuer. Also see disclosures surrounding
development risks on page 19.

16 TRADE AND OTHER RECEIVABLES
                                   2013    2012
                                   GBPm    GBPm
Non-current
Loan notes receivable               6.0     4.0
Other receivables(1)               18.6    18.0
Prepayments and accrued income(2)  20.7    17.4
Trade and other receivables        45.3    39.4
Current
               
Rent receivable(3)                  5.8     8.8
Other receivables                   2.7     7.0
Prepayments and accrued income(2)  11.8    10.1
Trade and other receivables        20.3    25.9

(1) Includes GBP15 million exclusivity payment with LBHF which forms part of the CLSA.
(2) Included within prepayments and accrued income are tenant lease incentives of GBP19.7 million (2012: GBP17.1 million).
(3) Includes exhibition trade receivables.

17 CASH AND CASH EQUIVALENTS                            
                                         2013    2012   
                                         GBPm    GBPm   
Cash at hand                             22.0    28.0   
Cash on short-term deposit               17.0   150.5   
Unrestricted cash and cash equivalents   39.0   178.5   
Restricted cash                           6.0     6.0   
Cash and cash equivalents                45.0   184.5   

Restricted cash relates to amounts placed on deposit in accounts which are subject to withdrawal conditions.

18 TRADE AND OTHER PAYABLES
                                   2013    2012
                                   GBPm    GBPm
Current
Rent received in advance           18.0    17.2
Accruals and deferred income       29.3    27.4
Trade payables                      1.3     1.1               
Other payables(1)                  10.0    12.6
Other taxes and social security     2.8     0.3
Trade and other payables           61.4    58.6

(1) Includes sundry payables and amounts due to joint venture partners.

19 BORROWINGS, INCLUDING FINANCE LEASES
                                                                   2013
                                       Carrying
                                          value    Secured  Unsecured     Fixed rate   Floating rate   Fair value
                                           GBPm       GBPm       GBPm           GBPm            GBPm         GBPm
Current
Bank loans and overdrafts                  10.0       10.0          –              –            10.0         10.0
Loan notes                                  6.0        6.0          –              –             6.0          6.0
Borrowings, excluding finance leases       16.0       16.0          –              –            16.0         16.0
Finance lease obligations                   0.5        0.5          –            0.5               –          0.5
Borrowings, including finance
leases                                     16.5       16.5          –            0.5            16.0         16.5
Non-current
Bank loan 2016                            155.6      155.6          –              –           155.6        155.6
Bank loan 2017                            111.7      111.7          –              –           111.7        111.7
Bank loan 2018                             87.1       87.1          –              –            87.1         87.1
Borrowings, excluding finance leases      354.4      354.4          –              –           354.4        354.4
Finance lease obligations                   3.3        3.3          –            3.3               –          3.3
Borrowings, including finance
leases                                    357.7      357.7          –            3.3           354.4        357.7
Total borrowings, including
finance leases                            374.2      374.2          –            3.8           370.4        374.2
Cash and cash equivalents                (45.0)
Net debt                                  329.2

                                                                   2012
                                      Carrying
                                         value    Secured   Unsecured     Fixed rate   Floating rate   Fair value
                                          GBPm       GBPm        GBPm           GBPm            GBPm         GBPm
Current
Bank loans and overdrafts                 71.9       71.9           –              –            71.9         71.9
Loan notes                                 6.0        6.0           –              –             6.0          6.0
Borrowings, excluding finance leases      77.9       77.9           –              –            77.9         77.9
Finance lease obligations                  0.5        0.5           –            0.5               –          0.5
Borrowings, including finance leases      78.4       78.4           –            0.5            77.9         78.4
Non-current
Bank loan 2016                           154.6      154.6           –              –           154.6        154.6
Bank loan 2017                           111.7      111.7           –              –           111.7        111.7
Borrowings, excluding finance leases     266.3      266.3           –              –           266.3        266.3
Finance lease obligations                  3.3        3.3           –            3.3               –          3.3
Borrowings, including finance leases     269.6      269.6           –            3.3           266.3        269.6
Total borrowings, including finance
leases                                   348.0      348.0           –            3.8           344.2        348.0
Cash and cash equivalents              (184.5)
Net debt                                 163.5

20 CLASSIFICATION OF FINANCIAL ASSETS AND LIABILITIES

                                                                            Gain  Loss to other
                                              Carrying                 to income  comprehensive
                                                 value   Fair value    statement         income
2013                                              GBPm         GBPm      GBPm(1)           GBPm
Derivative financial assets                        3.5          3.5          0.8              –
Total held for trading assets                      3.5          3.5          0.8              –
Cash and cash equivalents                         45.0         45.0            –              –
Other financial assets                            66.4         66.4          2.0              –
Total cash and other financial assets            111.4        111.4          2.0              –
Available-for-sale investments                     0.4          0.4            –          (0.7)
Total available-for-sale investments               0.4          0.4            –          (0.7)
Derivative financial liabilities                (17.6)       (17.6)         15.6              –
Total held for trading liabilities              (17.6)       (17.6)         15.6              –
Borrowings, including finance leases           (374.2)      (374.2)            –              –
Other financial liabilities                     (68.7)       (68.7)            –              –
Total loans and other financial liabilities    (442.9)      (442.9)            –              –

                                                                             (Loss)/gain  Gain to other
                                                    Carrying                   to income  comprehensive
                                                       value   Fair value      statement         income
2012                                                   GBPm          GBPm        GBPm(1)           GBPm
Derivative financial assets                              0.5          0.5          (2.1)              –
Total held for trading assets                            0.5          0.5          (2.1)              –
Cash and cash equivalents                              184.5        184.5              –              –
Other financial assets                                  65.3         65.3            0.6              –
Total cash and other financial assets                  249.8        249.8            0.6              –
Available-for-sale investments                           3.6          3.6              –              –
Total available-for-sale investments                     3.6          3.6              –              –
Derivative financial liabilities                      (31.3)       (31.3)            2.8              –
Total held for trading liabilities                    (31.3)       (31.3)            2.8              –
Borrowings, including finance leases                 (348.0)      (348.0)              –              –
Other financial liabilities                           (68.4)       (68.4)              –              –
Total loans and other financial liabilities          (416.4)      (416.4)              –              –
1 Includes continuing and discontinued operations

21 DEFERRED TAX
The decreases in corporation tax rate referred to in Note 12 have been substantively enacted for the purposes of IAS 12
'Income Taxes' and therefore have been reflected in these consolidated financial statements based on the expected timing of
the realisation of deferred tax. Deferred tax on investment and development property is calculated under IAS 12 provisions on a
disposals basis by reference to the properties' original tax base cost. Elements factored into the calculation include indexation
relief, the Group's holding structure and the application of the REIT provisions to disposals occurring 2 years or more post exit
(7 May 2012). The Group's recognised deferred tax liability on investment and development property as calculated under IAS
12 is GBP3.1 million as at 31 December 2013 (2012: GBP1.8 million). The Group's contingent tax liability which is calculated
on the same basis as the IAS 12 liability above is GBPnil (2012: GBPnil) after allowing for loss relief.

A disposal of the Group's trading property at their market value as per note 15 would result in a corporation tax charge to the
Group of GBP16.1 million (23.3 per cent of GBP69.2 million).

                                                            Fair value of   Fair value of                                   
                                              Accelerated    investment &      derivative         Other                     
                                                  capital     development       financial     temporary    Group            
                                               allowances      properties     instruments   differences   losses    Total   
                                                     GBPm            GBPm            GBPm          GBPm     GBPm     GBPm   
Provided deferred tax liabilities/(assets):                                                                                 
At 1 January 2012                                    13.2             3.3           (9.2)         (1.7)    (5.6)        –   
Recognised in income                                (2.0)           (1.5)             3.1             –      2.8      2.4   
Recognised in other comprehensive                                                                                           
income                                                  –               –               –         (2.4)        –    (2.4)   
At 31 December 2012                                  11.2             1.8           (6.1)         (4.1)    (2.8)        –   
Adjustments in respect of previous                                                                                          
years                                                 2.2               –               –             –        –      2.2   
Recognised in income                                  0.7             1.8             6.2           0.5      0.5      9.7   
Recognised in other comprehensive                                                                                           
income                                                  –               –               –           0.5        –      0.5   
Recognised directly in equity                           –               –               –         (0.9)        –    (0.9)   
Reduction due to rate change                        (1.2)           (0.5)             0.1             –        –    (1.6)   
At 31 December 2013                                  12.9             3.1             0.2         (4.0)    (2.3)      9.9   
Unprovided deferred tax asset:                                                                                              
At 1 January 2013                                       –               –           (2.2)             –   (10.3)   (12.5)   
Movement in the year                                    –               –           (3.1)             –    (2.6)    (5.7)   
Reduction due to rate change                            –               –             0.7             –      1.4      2.1   
At 31 December 2013                                     –               –           (4.6)             –   (11.5)   (16.1)   

In accordance with the requirements of IAS 12, the deferred tax asset has not been recognised in the consolidated financial
statements due to uncertainty on the level of profits that will be available in future periods.

22 OTHER PROVISIONS                                
                                           Total   
                                            GBPm   
Current                                            
At 1 January 2012 and 2013                   7.3   
Re-measurement of deferred consideration   (0.1)   
At 31 December 2013                          7.2   

Other provisions represent deferred consideration relating to the amount payable on the 2009 acquisition of the non-controlling
interest in EC Properties Limited. The amount of deferred consideration payable is based on a number of factors including a
potential redevelopment of the ECOA, with the final details of such a redevelopment dependent on discussions with the owners
of the adjacent land and the outcome of the planning process. The maximum potential payment is GBP20.0 million.

23 SHARE CAPITAL AND SHARE PREMIUM
                                                                                        Share     Share   
                                 Transaction   Issue Price   Proceeds     Number of   Capital   Premium   
Issue type                              date       (pence)       GBPm        shares      GBPm      GBPm   
At 1 January 2012                                                       683,928,502     170.9      95.1   
Scrip dividend - 2011 final             June           198          –       541,709       0.2       0.9   
Scrip dividend - 2012  interim          Sept           217          –       257,592       0.1     (0.1)   
Placing                                 Sept           218      149.1    68,400,000      17.1      21.8   
At 31 December 2012                                                     753,127,803     188.3     117.7   
Scrip dividend - 2012 final             June           318          –     1,130,749       0.2       3.4   
Scrip dividend - 2013  interim          Sept           341          –       239,751       0.1     (0.1)   
Share-based payment1                       –             –          –     3,404,855       0.9         –   
At 31 December 2013                                                     757,903,158     189.5     121.0   

(1) Between July and December 2013 a total of 3,404,855 new shares were issued at the nominal share price of 25 pence to satisfy the settlement of employee share
    scheme awards.

Full details of the rights and obligations attached to the ordinary shares are contained in the Company's Articles of Association.
These rights include an entitlement to receive the Company's Annual Report & Accounts, to attend and speak at General
Meetings of the Company, to appoint proxies and to exercise voting rights. Holders of ordinary shares may also receive
dividends and may receive a share of the Company's residual assets on liquidation. There are no restrictions on the transfer of
ordinary shares.

At 25 February 2014, the Company had an unexpired authority to repurchase shares up to a maximum of 76,269,635 shares
with a nominal value of GBP18.8 million, and the Directors had an unexpired authority to allot up to a maximum of 500,165,021
shares with a nominal value of GBP125.0 million of which 249,277,385 with a nominal value of GBP62.4 million can only be
allotted pursuant to a fully pre-emptive rights issue.

24 TREASURY SHARES                                    
                                           Treasury   
                                  Number     shares   
                               of shares       GBPm   
Ordinary shares of 25 pence:                          
At 1 January 2012                      –          –   
Shares purchased                 431,450        1.0   
At 31 December 2012              431,450        1.0   
Disposal of shares             (431,450)      (1.0)   
At 31 December 2013                    –          –   

Treasury shares were acquired as a result of the odd-lot offer launched in November 2012 and completed in December
2012. Treasury shares were used to satisfy part of the employee share awards that were exercised during the year.

25 CAPITAL COMMITMENTS

At 31 December 2013, the Group was contractually committed to GBP105.9 million (2012: GBP21.4 million) of future
expenditure for the purchase, construction, development and enhancement of investment, development and trading property.
Of the GBP105.9 million committed, GBP29.5 million is committed 2014 expenditure. The Group's share of joint venture
commitments included within this amount was GBP1.9 million (2012: GBP0.2 million).

In November, the Group exercised its option under the CLSA which it entered into with LBHF in January 2013 in relation to
LBHF's land interest within the Earls Court Masterplan. Under the terms of the CLSA, the Group can draw down land in phases
but no phase can be transferred unless replacement homes for the residents of the relevant phase have been provided and
vacant possession is given of the phase. The Group has already paid GBP30 million of the GBP105 million cash consideration
payable under the CLSA. Independent of the land draw down process, exercising the option commits the Group to the
payment of the residual GBP75 million which is yet to be paid. This is expected to be settled in five annual instalments of
GBP15 million starting on 31 December 2015.

26 CONTINGENT LIABILITIES

Under the terms of the CLSA the Group has certain compensation obligations relating to achieving vacant possession, which
are subject to an overall cap of GBP55 million. Should any payments be made in respect of these obligations, they will be
deducted from the total consideration payable to LBHF (see note 25 'Capital Commitments' above).

In March, an agreement with Network Rail was signed to acquire a 999 year leasehold interest in the air rights above the West
London Line where it runs within the ECOA. Within the terms of the agreement, during the next 50 years the Group can
exercise options for further 999 year leases over the remainder of the West London Line to allow for development within the
Earls Court Masterplan. Network Rail is entitled to further payments of 5.55 per cent of the residual land value which will be
payable at the time of development or disposal of each phase of the Earls Court Masterplan. In addition, the Group has certain
obligations to Network Rail to make contributions to a sinking fund in respect of the maintenance of the existing platform above
the West London Line which would be triggered by any future demolition of the Earls Court exhibition halls.

As at 31 December 2012 the Group had no contingent liabilities.

27 CASH GENERATED FROM OPERATIONS
                                                                                  Re-presented   
                                                                           2013           2012   
Continuing operations                                           Notes      GBPm           GBPm   
Profit before tax attributable to the owners of the Parent                346.2          218.7   
Adjustments for:                                                                                 
Profit on sale of trading property                                  3    (10.4)          (6.1)   
Non-recurring income                                                3     (0.2)              –   
Gain on revaluation of investment and development property          4   (310.6)        (177.7)   
Gain on sale of investment and development property                 4         –          (0.6)   
Gain on loss of control and appropriation to trading property       4         –         (12.6)   
Other exceptional charges                                                   0.5              –   
Profit on sale of available-for-sale investments                    5     (0.9)         (10.0)   
Profit on sale of subsidiaries                                      6         –          (1.7)   
Loss of control of former subsidiary                                7         –            1.0   
Write down of trading property                                              1.7            0.9   
Write back of impairment of other receivables                       8     (2.0)          (0.6)   
Depreciation                                                                0.3            0.1   
Amortisation of lease incentives and other direct costs                     2.4            1.7   
Share-based payment                                                         3.7              –   
Finance costs                                                       9      22.0           20.9   
Finance income                                                            (1.1)          (0.8)   
Other finance costs                                                 9       0.2            2.0   
Change in fair value of derivative financial instruments                 (16.4)            0.3   
Change in working capital:                                                                       
Change in trade and other receivables                                     (1.8)          (3.1)   
Change in trade and other payables                                        (1.2)          (3.6)   
Cash generated from operations                                             32.4           28.8   

28 RELATED PARTY TRANSACTIONS
                                             2013    2012                                 
Key management compensation(1)               GBPm    GBPm
Salaries and short-term employee benefits     3.1     2.9
Share-based payment                           4.0     2.3
                                              7.1     5.2

(1) The Directors of Capital & Counties Properties PLC have been determined to be the only individuals with authority and responsibility for planning, directing and
    controlling the activities of the Company.

29 EVENTS AFTER THE REPORTING PERIOD
On 5 February 2014, the Board of Transport for London ("TfL") approved a proposed arrangement with the Group relating to
the land currently occupied by the Earls Court exhibition centres. The proposed arrangement would establish a venture that
would be granted 999 year leases over this land (and certain adjacent interests, the most significant of which is the Northern
Access Road), this venture would be owned 63 per cent by the Group and 37 per cent by TfL. Legal documentation is being
finalised.

On 21 February 2014, a GBP665 million five year unsecured revolving credit facility was signed to replace the Group's existing
Covent Garden facilities. The Group will incur an exceptional charge of approximately GBP12 million relating to fees on the
new facility and unamortised fees on the existing facilities; as well as approximately GBP18 million relating to the termination of
derivative financial instruments.

ANALYSIS OF PROPERTY PORTFOLIO (UNAUDITED)
1. PROPERTY DATA AS AT 31 DECEMBER 2013
                                                                                                  Weighted
                                                                                                   average       Gross
                             Market              Initial     Nominal Passing          Occupancy  unexpired        area
                              value                yield  equivalent    rent    ERV        rate      lease  million(3)
                                GBPm  Ownership   (EPRA)       yield    GBPm     GBPm    (EPRA)      years       sq ft
Covent Garden                1,156.3    100%(1)    3.33%       4.68%              58.0    98.6%        7.1         0.9
Earls Court Properties (2)     934.0                                              17.7                             2.1
Venues (2)                     161.1      100%                                                                     0.6
Total property               2,251.4                                    56.8      75.7                             3.6
  Investment property        2,067.0                                    56.6      74.0                             3.2
  Trading property             184.4                                     0.2       1.7                             0.4

(1) Represents the Group's interests at Earls Court, predominantly comprising EC1 & EC2, the Empress State Building and 50 per cent of the Lillie Square joint
    venture (previously Seagrave Road).
(2) Due to the nature of properties held in these segments, not all metrics are disclosed.
(3) Area shown is current net internal area of the portfolio, not adjusted for proportional ownership.

2. ANALYSIS OF CAPITAL RETURN FOR THE YEAR
                                                               Revaluation
                                           Market    Market       surplus/
                                            value     value   (deficit)(1)
                                             2013      2012           2013     Increase
Like-for-like capital                        GBPm      GBPm           GBPm            %
Covent Garden                             1,138.8     935.8          180.6        19.2%
Earls Court Properties                      762.4     574.3          149.7        24.5%
Venues                                      161.1     146.5            9.5         6.3%
Total like-for-like capital               2,062.3   1,656.6          339.8        19.9%
  Investment property                     1,885.7   1,551.2          305.3        19.5%
  Trading property(2)                       176.6     105.4           34.5        24.4%
Non like-for-like capital
Acquisitions                                 56.6         –          (6.4)
Control acquired of former joint venture    132.5         –           10.4
Disposals                                       –      64.8              –
Total property                            2,251.4   1,721.4          343.8        18.2%
  Investment property                     2,067.0   1,599.5          310.6        17.8%
                                                                              
  Trading property                          184.4     121.9        33.2(3)        21.9%

All property
Covent Garden                             1,156.3     952.3          180.2        18.8%
Earls Court Properties                      934.0     574.3          154.1        19.8%
Venues                                      161.1     146.5            9.5         6.3%
Other                                           –      48.3              –
Total property                            2,251.4   1,721.4          343.8        18.2%

(1) Revaluation surplus / (deficit) includes amortisation of lease incentives and fixed head leases.
(2) Property transferred to trading during the year is included as like-for-like capital in current and the comparative year where appropriate.
(3) Represents realised gains, impairment charges and unrecognised surplus on trading property. Presented for information only.

ANALYSIS OF PROPERTY PORTFOLIO (UNAUDITED)
3. ANALYSIS OF NET RENTAL INCOME FOR THE YEAR

                                                  2013   2012    Change   
Like-for-like income                              GBPm   GBPm         %   
Covent Garden                                     31.9   31.3      1.9%   
Earls Court Properties                             9.9    8.7     13.8%   
Venues                                            13.5   18.8   (28.2)%   
Like-for-like investment property income          55.3   58.8    (6.0)%   
Like-for-like trading property income                –    0.3             
Total like-for-like income                        55.3   59.1             
Non like-for-like income                                                  
Acquisitions                                       0.1      –             
Control acquired of former joint venture           4.4      –             
Disposals                                          1.2    5.2             
Loss of control of former subsidiary                 –    0.1             
Prior year acquisitions (like-for-like capital)    3.8    0.9             
Total property income                             64.8   65.3    (0.8)%   
Investment property income                        64.8   65.0    (0.3)%   
Trading property income                              –    0.3             
All property                                                              
Covent Garden                                     35.6   32.1     10.9%   
Earls Court Properties                            14.5    9.3     56.0%   
Venues                                            13.5   18.5   (27.0)%   
Other (1)                                          1.2    5.4             
Total property income                             64.8   65.3    (0.8)%   

(1) Net rental income percentage change in Other has not been disclosed as the final asset held by GCP was disposed of during the year.

4. ANALYSIS OF PROPERTY BY USE                                                                    
                                                             2013                       
                                 Retail   Office   Exhibition   Residential  Other(1)     Total   
Market value                       GBPm     GBPm         GBPm          GBPm      GBPm      GBPm   
Covent Garden                     913.3    165.8            –          38.6      38.6   1,156.3   
Earls Court Properties              6.4      8.1            –           9.4     910.1     934.0   
Venues                                –        –        161.1             –         –     161.1   
                                  919.7    173.9        161.1          48.0     948.7   2,251.4   

(1) Consists of property where the highest and best use valuation differs from the current use

                                                     2013                   
                         Retail   Office   Exhibition   Residential   Other   Total   
ERV                        GBPm     GBPm         GBPm          GBPm    GBPm    GBPm   
Covent Garden              44.6     10.1            –           1.3     2.0    58.0   
Earls Court Properties      0.4      0.7            –           0.3    16.3    17.7   
Venues                        –        –            –             –       –       –   
                           45.0     10.8            –           1.6    18.3    75.7   

CONSOLIDATED UNDERLYING PROFIT STATEMENT (UNAUDITED)
For the year ended 31 December 2013

                                                                                2013     2012   
                                                                                GBPm     GBPm   
Net rental income                                                               64.8     65.3   
Administration expenses                                                       (33.8)   (26.1)   
Operating profit                                                                31.0     39.2   
Finance costs                                                                 (22.0)   (23.6)   
Finance income                                                                   1.1      0.8   
Net finance costs                                                             (20.9)   (22.8)   
Profit before tax                                                               10.1     16.4   
Tax on adjusted profit                                                         (2.3)    (3.9)   
Non-controlling interests                                                      (0.5)        –   
Underlying earnings (used for calculation of underlying earnings per share)      7.3     12.5   
Underlying earnings per share (pence)                                            1.0      1.8   

DIVIDENDS
The Directors of Capital & Counties Properties PLC have proposed a final dividend per ordinary share (ISIN GB00B62G9D36)
of 1.0 pence payable on 19 June 2014.

Dates
The following are the salient dates for payment of the proposed final dividend:

Annual General Meeting                                                2 May 2014   
Sterling/Rand exchange rate struck                                    8 May 2014   
Sterling/Rand exchange rate and dividend amount in Rand announced     9 May 2014   
Ordinary shares listed ex-dividend on the JSE, Johannesburg          19 May 2014   
Ordinary shares listed ex-dividend on the London Stock Exchange      21 May 2014   
Record date for final dividend in UK and South Africa                23 May 2014   
Dividend payment date for shareholders                              19 June 2014   

South African shareholders should note that, in accordance with the requirements of Strate, the last day to trade cum-dividend
will be 16 May 2014 and that no dematerialisation of shares will be possible from 19 May 2014 to 23 May 2014 inclusive. No
transfers between the UK and South Africa registers may take place from 9 May 2014 to 23 May 2014.

Subject to SARB approval, the Board intends to offer an optional scrip dividend alternative in respect of the 2013 final dividend.

The above dates are proposed and subject to change.

Important Information for South African Shareholders:
Holders of the Company's shares in South Africa should note that National Treasury introduced a Dividends Tax with effect
from 1 April 2012, at a rate of 15 per cent.

The final cash dividend received by a South African shareholder will constitute a foreign dividend and will therefore be subject
to Dividends Tax. Dividends Tax will be withheld from the amount of the final dividend at a rate of 15 per cent, unless a
shareholder qualifies for an exemption or a reduced rate of Dividends Tax and the prescribed requirements for effecting the
exemption or reduction, as set out in the Scrip Dividend Scheme booklet, are in place.

It is the Company's understanding that a receipt of shares pursuant to the scrip dividend alternative will not constitute a foreign
dividend in terms of current legislation. Under the current legislation, the scrip dividend will not be subject to Dividends Tax, nor
income tax on receipt. The new shares which are acquired under the scrip dividend alternative will be treated as having been
acquired for nil consideration.

This information is included only as a general guide to taxation for Shareholders resident in South Africa based on Capco's
understanding of the law and the practice currently in force.

Any Shareholder who is in any doubt as to their tax position should seek independent professional advice.

Further disclosures required in terms of the JSE Listings Requirements will be detailed in the finalisation announcement to be
published on 9 May 2014.

GLOSSARY
AB and ABC1
Demographic classifications in the UK used to describe the professional classes determined by income, earning levels, social
grade and lifestyle.

Capco
Capco represents Capital & Counties Properties PLC (also referred to as “the Company”) and all its subsidiaries and group
undertakings, collectively referred to as “the Group”.

CLSA
Conditional Land Sale Agreement, an agreement with LBHF relating to its land in the ECOA.

Diluted figures
Reported amounts adjusted to include the dilutive effects of potential shares issuable under employee incentive arrangements.

Earls Court
The London district made up of a series of residential neighbourhoods crossing the boundaries of LBHF and RBKC.

EC1 & EC2
Capco's leasehold interests in the Earls Court 1 and Earls Court 2 exhibition centres (TfL together with Network Rail hold the
freehold interests) and Capco's freehold interest in the Northern Access Road which runs from the exhibition centre northwards
to Fenelon Place. The proposed joint venture with TfL (Capco share would be 63 per cent) relates to these interests.

ECOA
The Earls Court and West Kensington Opportunity Area.

Earls Court Properties
The Group's interests in the Earls Court area, comprising EC1 & EC2, Lillie Square (a 50:50 joint venture partnership with the
Kwok Family Interests), the Empress State Building (Capco ownership 100 per cent) and a number of smaller properties in the
Earls Court area.

EBITDA
Earnings before interest, tax, depreciation and amortisation.

EPRA
European Public Real Estate Association, the publisher of Best Practice Recommendations intended to make financial
statements of public real estate companies in Europe clearer, more transparent and comparable.

EPRA adjusted, diluted NAV
The net assets as at the end of the year including the excess of the fair value of trading property over its cost and excluding the
fair value of financial instruments, deferred taxation on revaluations and diluting for the effect of those shares potentially
issuable under employee share schemes divided by the diluted number of shares at the year end.

EPRA adjusted, diluted NNNAV
EPRA diluted NAV adjusted to reflect the fair value of derivative financial instruments and to include deferred taxation on
revaluations.

EPRA adjusted earnings per share
Profit for the year excluding gains or losses on the revaluation and sale of investment and development property, write down of
trading property, changes in fair value of derivative financial instruments and associated close-out costs and the related
taxation on these items divided by the weighted average number of shares in issue during the year.

Estimated rental value (ERV)
The external valuers' estimate of the Group's share of 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 the property.

GCP
The Great Capital Partnership, a 50:50 joint venture with Great Portland Estates plc. In 2013 this represents a discontinued
operation.

Gross income
The Group's share of passing rent plus sundry non-leased income.

Interest rate swap (IRS)
A derivative financial instrument enabling parties to exchange interest rate obligations for a predetermined period. These are
used by the Group to convert floating rate debt to fixed rates.

Initial yield (EPRA)
Annualised net rent (after deduction of revenue costs such as head rent, running void, service charge after shortfalls and empty
rates) on investment and development property expressed as a percentage of the gross market value before deduction of
theoretical acquisition costs, consistent with EPRA's net initial yield.

IPD
Investment Property Databank Ltd, producer of an independent benchmark of property returns.

Kwok Family Interests (KFI)
Joint venture partner in the Lillie Square development.

LBHF
The London Borough of Hammersmith & Fulham.

LIBOR
London Interbank Offer Rate.

Like-for-like property
Property which has been owned throughout both years without significant capital expenditure in either year, so income can be
compared on a like-for-like basis. For the purposes of comparison of capital values, this will also include assets owned at the
previous balance sheet date but not necessarily throughout the prior year.

Loan-to-value (LTV)
LTV is the ratio of attributable net debt to the book value of property.

NAV
Net Asset Value.

Net Debt
Total borrowings less cash and cash equivalents.

Net rental income (NRI)
The Group's share of gross rental income less ground rents, payable service charge expenses and other non-recoverable
charges, having taken due account of bad debt provisions and adjustments to comply with International Financial Reporting
Standards regarding tenant lease incentives.

Nominal equivalent yield
Effective annual yield to a purchaser on the gross market value, assuming rent is receivable annually in arrears, and that the
property becomes fully occupied and that all rents revert to the current market level (ERV) at the next review date or lease
expiry.

Occupancy rate (EPRA)
The ERV of let and under offer units expressed as a percentage of the ERV of let and under offer units plus ERV of un-let units,
excluding units under development.

Passing rent
The Group's share of contracted annual rents receivable at the balance sheet date. This takes no account of accounting
adjustments made in respect of rent-free periods or tenant incentives, the reclassification of certain lease payments as finance
charges or any irrecoverable costs and expenses, and does not include excess turnover rent, additional rent in respect of
unsettled rent reviews or sundry income such as from car parks etc. Contracted annual rents in respect of tenants in
administration are excluded.

RBKC
The Royal Borough of Kensington & Chelsea.

REIT
Real Estate Investment Trust.

SARB
South African Reserve Bank.

Section 34A Housing Act 1985
An amendment to the 1985 Act enabling an organised group of tenants to require a local authority to transfer their homes to a
private registered provider of social housing, where a transfer proves to be the favoured and viable option. The Housing (Right
to Transfer from a Local Authority Landlord) (England) Regulations 2013 which brought Section 34A into effect came into force
on 5 December 2013.

Section 106
Section 106 of the Town and Country Planning Act 1990, pursuant to which the relevant planning authority can impose
planning obligations on a developer to secure contributions to services, infrastructure and amenities in order to support and
facilitate a proposed development.

Tenant (or lease) incentives
Any incentives offered to tenants to enter into a lease. Typically incentives are in the form of an initial rent-free period and/or a
cash contribution to fit-out the premises. Under International Financial Reporting Standards the value of incentives granted to
tenants is amortised through the income statement on a straight-line basis over the lease term.

TfL
Transport for London and any subsidiary of Transport for London including Transport Trading Limited and London
Underground Limited.

Total property return
Capital growth including gains and losses on disposals plus rent received less associated costs, including ground rent.

Total return
The growth in EPRA adjusted, diluted NAV per share plus dividends per share paid during the year.

Total shareholder return
The increase in the price of an ordinary share plus dividends paid during the year assuming re-investment in ordinary shares.

Underlying earnings
Profit for the year excluding impairment charges, net valuation gains/losses (including profits/losses on disposals), net
refinancing charges and costs of termination of derivative financial instruments.

Weighted average unexpired lease term
The unexpired lease term to lease expiry weighted by ERV for each lease.

Zone A
A means of analysing and comparing the rental value of retail space by dividing it in to zones parallel with the main frontage.
The most valuable zone, Zone A, falls within a 6m depth of the shop frontage. Each successive zone is valued at half the rate
of the zone in front of it. The blend is referred to as being 'ITZA' ('In Terms of Zone A').

NOTES TO EDITORS
Capital & Counties Properties PLC is one of the largest listed property investment and development companies in central London.
Our landmark estates held directly or through joint ventures are valued at GBP2.3 billion.

Covent Garden

The Covent Garden estate represents 51 per cent of Capco's property portfolio and showcases its place-making strategy, which is
realised through creative asset management, acquisitions, investment, strategic development and creative marketing.

Earls Court Properties & Venues

Earls Court Properties & Venues represents 49 per cent of Capco's property portfolio. Capco's strategy is to maintain a robust
exhibitions business at Olympia London whilst unlocking value from its Earls Court interests now that the Mayor of London has
endorsed the proposals and the local authorities have granted outline planning consent for the Earls Court Masterplan, Sir Terry
Farrell's vision to create 'Four Urban Villages and a 21st Century High Street.'

The Lillie Square project is a joint venture between Capco and KFI to take forward the development of the site. It has planning
consent for a residential-led scheme including 808 new homes and a new garden square.

This press release includes statements that are forward-looking in nature. Forward-looking statements involve known and unknown risks,
uncertainties and other factors which may cause the actual results, performance or achievements of Capital & Counties Properties PLC to be
materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Any
information contained in this press release on the price at which shares or other securities in Capital & Counties Properties PLC have been
bought or sold in the past, or on the yield on such shares or other securities, should not be relied upon as a guide to future performance.

Sponsor:
Merrill Lynch South Africa (Pty) Limited
Date: 25/02/2014 09:00:00 Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE'). 
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