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CAPITAL & COUNTIES PROPERTIES PLC - Audited Preliminary Results for the Year Ended 31 December 2016

Release Date: 22/02/2017 09:00
Code(s): CCO     PDF:  
Wrap Text
Audited Preliminary Results for the Year Ended 31 December 2016

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

PRESS RELEASE

CAPITAL & COUNTIES PROPERTIES PLC ("CAPCO")

AUDITED PRELIMINARY RESULTS FOR THE YEAR ENDED 31 DECEMBER 2016

Ian Durant, Chairman of Capco, commented:

"Capco has delivered good progress in 2016 with considerable activity and milestones achieved at both Covent
Garden and Earls Court. Despite macro-economic uncertainty, London is one of the great cities of the world;
desirable as a retail destination and residential location.

Looking through short-term market movements, Capco's long-term strategy remains unchanged. We are
confident in the strength of our two prime London assets and are well positioned to deliver long-term value
creation for our shareholders."

Ian Hawksworth, Chief Executive of Capco, commented:

"Capco has made significant progress at its two central London estates during 2016. Covent Garden has
introduced high quality retailers and restaurants, resulting in a record year of leasing transactions, producing an
uplift in value of 6 per cent to GBP2.3 billion and an increase in ERV of 8 per cent. At Earls Court, the first phase of
demolition is now complete, de-risking the site and preparing the land for future development. Weakened
sentiment in the residential market, following changes to stamp duty and political uncertainty, particularly in the
first half of 2016, led to a valuation decline at Earls Court Properties of 20 per cent to GBP1.1 billion. As a result,
EPRA NAV declined by 6 per cent to 340 pence per share.

The strong demand for central London retail has continued in 2017 and Covent Garden has had a positive start to
the year. We have increased the ERV target to GBP125 million by December 2020, reflecting the positive prospects
of the estate. The first residents have moved into Lillie Square and additional units will be released over the
coming months, now that the first release of Phase 2 is predominantly sold. Land enablement will continue at
Earls Court and we intend to progress plans to increase the number of much needed homes as we maximise the
potential of this strategic land holding.

Capco remains focused on its strategy to deliver long-term value creation from its two unique central London
estates. Backed by a strong balance sheet with low LTV and high liquidity, the Group is well positioned to
withstand short-term market uncertainty and take advantage of opportunities as they arise."

Key financials
-   Equity attributable to owners of the Parent GBP2.8 billion (H1 2016: GBP2.8 billion) (2015: GBP2.9 billion)
-   EPRA NAV 340 pence per share, a decrease of 5.9 per cent (H1 2016: -4.7 per cent, H2 2016: -1.2 per
    cent) (2015: 361 pence)
-   Total property value GBP3.7 billion, a decrease of 4.4 per cent (like-for-like) (H1 2016: -3.8 per cent, H2
    2016: -0.6 per cent) (2015: GBP3.7 billion)
-   Proposed final 2016 dividend of 1.0 pence per share providing a full-year dividend of 1.5 pence per share

Strong performance at Covent Garden following record year of leasing activity; new ERV target
-   Total property value of GBP2.3 billion an increase of 6 per cent (like-for-like) (2015: GBP2.0 billion)
-   95 new leases and renewals transacted representing GBP13.3 million of income at 9 per cent above 31
    December 2015 ERV
-   ERV increased by 8 per cent (like-for-like) to GBP96 million (2015: GBP86 million)
-   New ERV target of GBP125 million by December 2020
-   Floral Court (formerly known as Kings Court) on track for completion towards the end of 2017
-   GBP85 million invested in acquisitions expanding ownership of the estate

Significant progress on site at Earls Court
-   Earls Court interests valued at GBP1.1 billion, a decrease of 20 per cent (like-for-like) (2015: GBP1.4 billion)
-   Completion of first phase of demolition of EC1 & EC2; final phase of demolition underway, preparing the
    site for future development
-   Representations submitted to GLA's London Plan to enhance the Earls Court Masterplan
-   Construction of Phase 1 of Lillie Square progressing well and the first residents have moved in; sales of
    Phase 2 continue at a modest premium to comparable units in Phase 1

Operational excellence at Venues
-   EBITDA of GBP19 million, up 29 per cent (2015: GBP15 million)
-   Property valuation at GBP293 million, a decrease of 1 per cent (like-for-like) (2015: GBP295 million)

Strong financial position
-   Group loan to value ratio 23 per cent (2015: 16 per cent)
-   Cash and available facilities of GBP556 million (2015: GBP412 million)
-   Weighted average maturity extended to 5.9 years and average cost of debt reduced to 2.7 per cent
-   Capital commitments of GBP157 million (2015: GBP207 million)

KEY FINANCIALS

                                                                                                     2016         2015   
Equity attributable to owners of the Parent                                                     GBP2,805m    GBP2,934m   
Equity attributable to owners of the Parent per share                                                332p         349p   
-5.5% Total return in 2016 (2015: 17%)                                                                                   
EPRA net asset value                                                                            GBP2,878m    GBP3,059m   
EPRA net asset value per share                                                                       340p         361p   
Dividend per share                                                                                   1.5p         1.5p   
-2.3% Total property return in 2016 (2015: 16%)                                                                          
Property market value(1)                                                                        GBP3,710m    GBP3,662m   
Net rental income(2)                                                                             GBP81.5m     GBP74.9m   
(Loss)/profit for the year attributable to owners of the Parent                               (GBP118.6)m    GBP431.1m   
Underlying earnings per share                                                                        1.4p         0.9p  
 
(1) On a Group share basis. Refer to Property Data on page 53 for the Group's percentage ownership of property.                         
(2) On a Group share basis. Refer to the Financial Review.                                                                              


ENQUIRIES

Capital & Counties Properties PLC:
Ian Hawksworth                       Chief Executive                          +44 (0)20 3214 9188
Situl Jobanputra                     Chief Financial Officer                  +44 (0)20 3214 9183
Sarah Corbett                        Investor Relations Manager               +44 (0)20 3214 9165

Media enquiries:
Sarah Hagan                          Director of Communications & Marketing   +44 (0)20 3214 9185
UK: Tulchan                          Susanna Voyle                            +44 (0)20 7353 4200
SA: Instinctif                       Frederic Cornet                          +27 (0)11 447 3030

A presentation to analysts and investors will take place today at 09:00am at UBS, 5 Broadgate, London, EC2M 2QS. 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 announcement 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 (feedback@capitalandcounties.com or telephone +44 (0)20 3214 9184).

CHAIRMAN'S STATEMENT

Overview

2016 was a year of notable political and economic dislocation which has affected the London property market. London remains
a very attractive investment market, a desirable retail destination and residential location. Looking through short-term market
movements Capco's long-term strategy for its two unique estates remains unchanged. During 2016, Capco achieved good
progress at both Covent Garden and Earls Court and, although it was a challenging year in the residential market, I am
confident that Capco will deliver value creation for our shareholders over the coming years.

Performance

Despite strong rental growth at Covent Garden and significant progress on site at Earls Court, Capco's total shareholder return
for the year, which comprises share price performance plus the dividends paid during the year, was -32.3 per cent. Total return
for the year was -5.5 per cent, which represents the change in net assets plus the dividends paid during the year. The total
value of Capco's property portfolio fell by 4.4 per cent on a like-for-like basis to GBP3.7 billion.

Covent Garden delivered ERV growth of 7.9 per cent during the year resulting in a valuation increase of 6.4 per cent on a like-
for-like basis. The excellent performance of Covent Garden was not sufficient to offset the decline in land values at Earls Court
which fell by 20.4 per cent like-for-like due to adverse conditions in the London residential market following stamp duty changes
and the outcome of the EU Referendum.

The Covent Garden team continues to focus on achieving rental growth through creative asset management, strategic
investment and place-making. Covent Garden is an internationally renowned destination successfully attracting global brands
and visitors. Following a record year of leasing activity, new Zone A rental levels were achieved across the estate and
management has released a new ERV target of GBP125 million to be achieved by December 2020. Work on the Floral Court
development continues on schedule and will create high quality retail, restaurant and residential space on the estate.

It has been another year of progress on the ground at Earls Court. The demolition to ground level of the former Exhibition
Centres was completed during the year and land enablement works are now underway preparing the site for future
development. The first residential completions at Lillie Square took place at the end of 2016 with the first units being handed
over in time for Christmas. The strategy remains focused on value creation by exploring opportunities to evolve and enhance
the Earls Court Masterplan.

The Venues business continues to strengthen with a reliable and growing income stream reflecting its excellent prospects as a
central London venue.

The Board and I would like to thank Capco's employees for their work during the year and the achievements made in delivering
Capco's business plans at Covent Garden, Earls Court and Venues.

Financial position and dividends

Capco's financial position is strong with low leverage, high liquidity and modest capital commitments. Responsible
management of capital and prudent financing from a variety of sources is a key feature of Capco's strategy to ensure the
Company maintains a strong balance sheet. During the year, Capco's liquidity was significantly strengthened by the completion
of a GBP100 million financing of the Olympia business, a US Private Placement totalling GBP175 million and the GBP150 million (GBP95
million Capco share) HCA facility at Earls Court to fund infrastructure works on site. The business is well positioned to support
its future activities and withstand periods of uncertainty.

The Directors are proposing a final dividend of 1.0 pence per share, which brings the total dividend for 2016 to 1.5 pence per share.

Directors

There were a number of changes to the Board in 2016. In March we welcomed Anthony Steains as a new independent Non-
executive Director. He brings a diverse perspective to the board, being resident in Asia and experienced in corporate finance
activity. Following the retirement of Ian Henderson at the AGM, Gerry Murphy became Chairman of the Remuneration
Committee and Henry Staunton became Senior Independent Director.

Situl Jobanputra was appointed as Chief Financial Officer with effect from 1 January 2017, following Soumen Das' departure at
the end of the year. Soumen had been with the Company since its listing in 2010 and we are grateful for his substantial
contribution. Situl's appointment reflects Capco's commitment to developing the talent of our employees and promoting from
within the Company where possible. I am delighted to welcome him to the Board.

The Board is committed to encouraging diversity and the development of our people across the business.

During the year Gerry Murphy has led a review of our remuneration arrangements for Executive Directors and the
Remuneration Committee is proposing a revised remuneration package that will simplify our existing arrangements whilst
seeking to incentivise management and align their interests with those of our shareholders. The proposals will be put to
shareholders for approval at our forthcoming AGM.

Board oversight

The Board and individual Directors regularly take opportunities to visit Capco's assets and see for ourselves the
transformations that are taking place. This and the regular briefings we receive from operational management help us gain a
real understanding of the business challenges and opportunities.

In taking its decisions the Board assesses and balances the interests of the different stakeholders who have involvement with
Capco, its properties and the surrounding communities. As well as our shareholders, this includes our employees, partners,
tenants, lenders, government and the communities where we operate. In developing and delivering our plans we undertake
significant stakeholder engagement and the Board is kept fully informed of feedback received.

The delivery of Capco's strategy is underpinned by comprehensive policies designed to ensure that the business plan is
delivered in line with the Board's expectations. These policies are promoted across the Company to create a culture of
accountability and responsibility and to ensure that all of our employees understand their role within the business and the
standards to which they must operate. Reflecting this, I am pleased to report that the Group's revised risk management
structure which was implemented in 2016 is operating effectively and efficiently and the Board is pleased with the health and
safety record achieved at the Group's project sites.

Looking ahead

Despite macro-economic uncertainty and challenging market conditions, Capco's strategy remains clear and focused. London
is an outstanding global city and we have two of its best estates. Capco's strong balance sheet and unique assets are well-
placed for management to create and deliver long-term value for shareholders.

Ian Durant

Chairman
21 February 2017

CHIEF EXECUTIVE'S REVIEW

A year of operational progress across Capco

2016 has been a challenging year but despite macro-economic and political upheaval, Covent Garden has continued to deliver
excellent growth and is now established as one of the best retail estates in the world. The success of our investment strategy at
Covent Garden was not sufficient to offset the decline in land value at Earls Court, which was affected negatively by the
correction in the London residential market as a result of stamp duty increases and the outcome of the EU Referendum. As a
result, EPRA net asset value fell by 5.9 per cent over the year to 340 pence with 4.7 per cent of this occurring in the first six
months of 2016.

Covent Garden continues to deliver excellent rental and value growth. Demand for the estate from retailers, restaurateurs and
consumers is very strong as reflected in a record amount of leasing activity in 2016 resulting in an increase in value of 6.4 per
cent like-for like.

The London residential market has been affected negatively by the EU Referendum and the substantial increase in stamp duty
taxation. These factors were the major contributors to the decline in our Earls Court interests which decreased by 20.4 per cent
(like-for-like) of which 14 per cent (like-for-like) was in the first six months of the year.

Our disciplined approach to capital allocation has meant Capco is in a robust financial position with a low loan to value of 23 per
cent. The balance sheet has been further strengthened by the financing activities across the Group this year resulting in high
liquidity of GBP556 million, an extension of our loan maturities to 5.9 years and a lower average cost of debt of 2.7 per cent.

Our strategy remains clear and focused on driving long-term value creation from our two unique central London estates.
London is a growing and global city and underpinned by a clear strategy; Capco's two estates are well-placed for long-term success.

Capco regularly considers opportunities where its core skills of place-making and masterplanning can be utilised and in 2015
acquired a 50 per cent interest in the Solum Developments joint venture with Network Rail which is exploring potential
opportunities for future redevelopments at significant railway station sites across London.

Valuations

The total property value of the Group declined 4.4 per cent (like-for-like) in the year to 31 December 2016 to GBP3.7 billion. The
December 2016 valuations incorporate the 1 per cent increase in Stamp Duty Land Tax ("SDLT") that was enacted earlier this
year, which was applicable to most of our portfolio and had an impact of GBP32.4 million (0.9 per cent of property value).

The valuation of Covent Garden has risen by 6.4 per cent (like-for-like) to GBP2.3 billion, driven by ERV growth of 7.9 per cent
achieved over the year. The equivalent yield is 3.5 per cent, reflecting the valuers' current view of the strength of demand for
central London retail investments.

The valuation of Earls Court Properties is GBP1.1 billion, a decrease of 20.4 per cent (like-for-like) principally driven by a greater
risk premium through a higher developer's margin for consented development land, trimming of sales values, as well as some
cost inflation. This reflects the valuer's assessment of weakened sentiment and a correction in the central London residential market.

                                                                         Market Value   Market Value         Valuation   
                                                                                 2016           2015            Change   
                                                                                 GBPm           GBPm  Like-for-Like(1)   
Covent Garden                                                                   2,275          2,005              6.4%   
Earls Court Properties                                                                                                   
Earls Court Partnership Limited ("ECPL")(2)                                       644            803           (22.6)%   
Lillie Square(3)                                                                  223            222           (17.0)%   
Empress State                                                                     230            286           (20.0)%   
Other                                                                              45             46            (4.2)%   
Group share of Earls Court Properties                                           1,142          1,357           (20.4)%   
Venues                                                                            293            295            (1.3)%   
Other                                                                               -              5                     
Group share of total property(4)                                                3,710          3,662            (4.4)%   

(1) Valuation change takes account of amortisation of tenant lease incentives, capital expenditure, fixed head leases and unrecognised trading surplus.
(2) Represents the Group's 63 per cent interest in ECPL.
(3) Represents the Group's 50 per cent share on a Group share basis.
(4) A reconciliation of carrying value of investment, development and trading property to the market value is shown in note 12 'Property Portfolio' within the
    consolidated financial statements.

The Group has a 63 per cent controlling interest in Earls Court Partnership Limited ("ECPL"), the investment vehicle with
Transport for London ("TfL") which owns the land formerly occupied by the Earls Court Exhibition Centres ("EC1 & EC2"). As a
result, it is fully consolidated in the financial statements and TfL's interest is represented as a non-controlling interest. See page
12 of the Financial Review for further information.

Covent Garden - a leading global destination for brands and visitors

Covent Garden has been transformed into one of the leading destinations for global 'street retail' and its success has continued
throughout 2016. The uncompromising asset management strategy has driven strong leasing momentum, attracting global
premium brands, many of which choose Covent Garden as their first or only London store, resulting in solid rental performance
across the estate. Our creative approach to managing Covent Garden continues to create value for our retailers through
attracting high quality footfall and positive sales growth.

We achieved a record level of leasing activity in 2016 with 95 new lettings and renewals agreed, securing GBP13.3 million of rent
at 9.3 per cent above December 2015 ERV. The ERV of the estate is GBP96 million, up 7.9 per cent on a like-for-like basis. A new
ERV target of GBP125 million to be achieved by December 2020 has been set, reflecting the positive growth prospects of the estate.

Following positive leasing progress across the estate, new Zone A levels have been achieved reflecting the strong demand for
space in this iconic setting. Tom Ford, Giorgio Armani Beauty's Armani Box London ("Armani Box London") and Hotel Chocolat
are the latest signings to the Market Building while the strategy to reposition the Royal Opera House Arcade with a luxury
accessories focus has seen the introduction of The Watch Gallery, Mulberry and N.PEAL.

The dining offering at Covent Garden has further strengthened this year. We are delighted to welcome Michelin-starred chef
Ollie Dabbous to the estate through the restaurant at the Henrietta Hotel on Henrietta Street, while SushiSamba, RedFarm and
VyTA add to the depth of variety and quality on the estate.

The Floral Court development (formerly Kings Court) is on track for completion towards the end of 2017 and will transform the
pedestrian flows on the northern side of the estate. Petersham Nurseries, the renowned lifestyle brand, will open later in 2017
following a pre-lease for 60 per cent of the commercial space reflecting the strong appeal of the Floral Court development.

We have continued to expand our presence on the estate through strategic acquisitions, investing GBP85 million in properties
located at key access points to the estate and will continue to seek opportunities to further enhance our footprint on the area.
The estate now comprises over 1.1 million square feet of lettable space, establishing itself as one of the largest managed retail-
led estates in London.

Earls Court Masterplan - over 70 acres of consented land in central London

At Earls Court, the complex demolition of the former Earls Court Exhibition Centres to ground level completed on schedule after
almost two years of intensive work on the site. Demolition to basement level has commenced which further de-risks the site
and enables the land for its future development.

The Earls Court Masterplan is a unique opportunity to create the next great estate in London. The Masterplan is one of the
Greater London Authority's ("GLA") designated Opportunity Areas making it a strategic scheme for London. Representations
have been submitted by Capco to the GLA's London Plan signalling Earls Court's potential to deliver an additional 2,500 homes
above the current consented scheme, bringing the total number of new homes to 10,000.

Further to Capco's ambitions for Earls Court, during 2016 ECPL engaged in public consultations on proposals to redevelop
Empress Place. These are strategic assets located on or around the Lillie Road which ECPL has acquired in recent years.
These consultations relate to a scheme comprising 400 new homes and retail space, covering circa 500,000 square feet
(GEA), creating one of the key access points to the Earls Court Masterplan and Lillie Square. Plans are progressing to submit a
detailed planning application in spring 2017, signalling the start of the enhancements to the Earls Court Masterplan.

At Lillie Square, construction of Phase 1 is progressing well and the scheme recently welcomed its first residents. Sales of
Phase 2 have continued with 59 apartments now reserved or exchanged and levels of enquiries remain positive. Preparations
are being made for the next release of apartments in the coming months. The residential sales market remains challenging as
a result of stamp duty increases and the EU Referendum result which has impacted buyers' decision making. Nevertheless,
reflecting the strong location and transport connectivity of the scheme, sales prices achieved in Phase 2 have been at a modest
premium to comparable units in Phase 1.

Venues - operational excellence

The Venues business continues to strengthen with EBITDA of GBP19 million up 29 per cent compared to 2015 reflecting its
excellent prospects as a central London venue.

Olympia London has re-established itself as London's venue of choice for premium exhibitions attracting 1.5 million visitors to
the historic venue in 2016. Olympia London played host to the UK's largest exhibition, The Ideal Home Show, and continues to
attract new business welcoming 5G World for the first time this year.

Outlook

Capco is very well positioned with two significant prime estates in central London. London remains a very attractive investment
market and whilst we expect market challenges to continue into 2017, Capco has a clear strategy to deliver long term value
creation from its two estates in Covent Garden and Earls Court.

Covent Garden has been transformed into one of the leading destinations for global 'street retail'. Following the strong demand
in 2016 from excellent brands and dining concepts, 2017 will be one of our most active years for retail and dining openings
across the estate, further underpinning the estate's reputation as a premier global retail and dining destination. We remain
focused on our ambitious strategy to introduce the best brands for our visitors, invest in strategically expanding the portfolio and
manage the estate to create value for our retailers to underpin rental growth. The estate remains well-placed for continued
success and accordingly we will be focused on achieving a new ERV target of GBP125 million by December 2020.

The Earls Court Masterplan is the only central London GLA Opportunity Area of scale and is a strategic scheme for the Capital.
With its excellent existing transport infrastructure, it has the potential to deliver much-needed homes across various tenures
and places for Londoners to enjoy. Our strategy remains focused on maximising the potential of this strategically important
mixed-use scheme and de-risking the site through land enablement, preparing it for future development.

Capco's financial position has been strengthened by the financing activities undertaken during the year. With low leverage, high
liquidity and modest capital commitments, the Group is well positioned to take advantage of opportunities as they arise. We
enter a new year focused on our strategy to deliver long-term value creation for our shareholders from our two exceptional
central London estates.

Ian Hawksworth

Chief Executive
21 February 2017

STRATEGIC REPORT

COVENT GARDEN

A leading global retail, dining and cultural destination in the heart of central London

Covent Garden has established itself as a leading global retail and dining address in the heart of London's West End. Visitors
are drawn to its unique retail, dining and cultural experience within a historic setting. Capco's distinct approach to creative asset
management and place-making continues to attract the best retail and dining brands.

Overview

Providing over 1.1 million square feet of lettable space in the heart of London's West End, the Covent Garden estate represents
61 per cent of Capco's portfolio by value. At Covent Garden, Capco drives value creation through asset management, strategic
investment and creativity, underpinned by a vision to establish the estate as a global destination for brands and visitors.

2016 was another year of significant progress for Covent Garden as the business continued to implement its leasing and
investment strategy. The value of the estate increased by 6.4 per cent on a like-for-like basis to GBP2.3 billion. ERV is GBP96 million,
a like-for-like increase of 7.9 per cent. 2016 was a record year of leasing activity which reflects the success of the innovative
repositioning strategy through asset management and strategic investment. A new ERV target of GBP125 million by December
2020 has been set, reflecting the positive growth prospects of the estate.

Reflecting the demand for space in this iconic setting, 95 leasing transactions including new leases and renewals representing
GBP13.3 million of rental income per annum were transacted at 9.3 per cent above 31 December 2015 ERV. Net rental income is
GBP41.5 million, up 5.3 per cent (like-for-like) compared to 2015. Occupancy on the estate remains high at 97 per cent.

As the owner of the Covent Garden estate, Capco regularly hosts events on the Piazza attracting footfall to the estate. This
year 'Reflect London' has been created to offer striking new perspectives of the Market Building while concealing renovation
building works which will house an iconic new restaurant from SushiSamba with stunning views overlooking the Piazza.

Capco continues to work closely with the community stakeholders including Westminster City Council ("WCC") and Covent
Garden Area Trust ("CGAT") to maintain and celebrate the attributes which make the area unique. This year was marked by
the opening of a pedestrianised King Street, improving the pedestrian flow on the estate.

Retail

Capco has successfully transformed the Royal Opera House Arcade through its strategy of a luxury accessories and gifting
focus. The Watch Gallery, the UK's leading independent luxury watch retailer, and British lifestyle brand, Mulberry, have
opened stores this year. The latest signings to complement this offering are luxury British cashmere brand N.Peal and British
eyewear brand, Tom Davies, which are due to open later in 2017.

The iconic Market Building has seen strong demand over the year and a new Zone A rental level of GBP675 per square foot has
been achieved. Hotel Chocolat opened in November, offering Covent Garden inspired recipes and bespoke gift collections
which reference the historic Market Building. There have been a number of premium beauty brand lettings in the Market
Building, including the luxury beauty boutique Tom Ford, fragrance brand Atelier Cologne, the first Armani Box London store
and the beauty company Deciem.

Covent Garden has now become the premier Beauty Quarter for London, with more standalone beauty boutiques in one
square mile than anywhere else in the Capital. New signings in the Market Building add to the existing strong line up of Chanel,
Dior, NARS and Charlotte Tilbury.

Henrietta Street continues to strengthen its retail offer, following an array of new signings including luxury men's shoe brand,
Cheaney, award-winning British hair stylist, Kevin Luchmun and Parisian outerwear clothing concept K-Way. These signings
continue the successful transformation of Henrietta Street following the implementation of a menswear and complementary
dining strategy.

Dining

Covent Garden has strengthened its reputation as a global dining destination with a number of new concepts signed this year.

The Market Building's dining offering has evolved and enhanced following a new letting to acclaimed US fast casual restaurant
Buns & Buns. The Miami based 'breadery' and grill will be another London first for Covent Garden and will offer an all-day
casual foodie destination. This builds upon restaurant signings in the Market Building earlier in the year including Italian-style
boulangerie VyTA Santa Margherita, French delicatessen Aubaine and renowned fusion dining restaurant SushiSamba which
will open on the iconic Opera Terrace, one of the most prominent dining locations in London.

Acclaimed New York restaurant, RedFarm, has taken space alongside Balthazar on Russell Street. The new restaurant, the
group's first outside of New York, will bring RedFarm's famed menu of modern and inventive Chinese food to London's West
End and is due to open later in 2017.

A new letting to Experimental Group will see the opening of their latest concept in London on Henrietta Street. Plans from the
team behind The Experimental Cocktail Club include a new restaurant and bar as well as an 18 bedroom hotel. The
Experimental Group is partnering with Michelin-starred chef Ollie Dabbous to create a French seasonal menu. Adding to the
leisure offering is Z Hotels which has taken space on Bedford Street and will provide luxurious yet compact rooms for visitors.
In addition, Capco together with Robert De Niro and BD Hotels were granted planning approval by Westminster City Council to
create The Wellington, a visionary new 83-room luxury boutique hotel on Wellington Street.

Developments

Floral Court will provide over 85,000 square feet (NIA) of space with eight retail and two restaurant units as well as 45 premium
apartments above the development. The Floral Court development continues to make positive progress and is on track for
completion towards the end of 2017 at an expected total cost of GBP105 million. At Carriage Hall, the refurbishment of 15,000
square feet (NIA) nears completion.

The schemes will transform pedestrian flow, creating a new connecting passage between Long Acre and King Street providing
the opportunity to unlock Floral Street's place-making potential.

Highlighting the strong appeal of the scheme, world-renowned lifestyle brand Petersham Nurseries have pre-leased
approximately 60 per cent of the commercial space at Floral Court. Petersham Nurseries will occupy over 16,000 square feet
(NIA), creating new bespoke retail and dining concepts across four units.

The redevelopment of 11-12 Floral Street, the building formerly occupied by The Sanctuary, is well underway and will include
the creation of two new retail units with flagship potential.

Acquisitions

Capco has continued to expand its footprint on the estate, most notably through the strategic acquisition of Tower House, on
Southampton Street, a key access point of the estate, for GBP67.5 million before purchaser's costs.

The property is a substantial corner building well located at the junction of Southampton Street and Tavistock Street with views
towards the Piazza. The property offers prime retail frontage with repositioning opportunities and further enhances Capco's
presence on Southampton Street, a key access point to the Piazza.

Residential

Capco continues to restore the estate's residential heritage. The lettings market has been very active with strong demand for
Capco's brand of premium residential product across the estate with average rents between GBP70 and GBP85 per square foot
setting new rental tones for the area.

This year saw the sale of three apartments, including two penthouses, at The Beecham, a luxury development overlooking the
Piazza. The average price achieved for the scheme is in excess of GBP2,800 per square foot, with one of the penthouse
apartments achieving over GBP3,000 per square foot.

The most recent conversion is at 26-27 Southampton Street, a premium residential development, which is due to complete
shortly and will offer 10 apartments to let.

Future Priorities

The strategy for Covent Garden remains focused on driving value through its creative asset management and investment
strategy. The focus will be on continuing to attract excellent brands and dining concepts to the estate as well as continued
investment through strategic acquisitions to expand the footprint of the estate. Completing the repositioning strategy for the
Royal Opera House Arcade, as well as adding further retail and dining depth to Henrietta Street are key areas of priority.

Further to this, the Floral Court and Carriage Hall developments will complete in 2017 which will transform pedestrian flow in
the area and will provide the opportunity to extend Capco's place-making approach to Floral Street, realising the unlocked
potential in this part of the estate. Reflecting the positive growth prospects of the estate, a new ERV target of GBP125 million to be
achieved by December 2020, has been set.

Following a record year of leasing activity, 2017 will see a large number of retail and dining openings across the estate with
brands such as SushiSamba, Petersham Nurseries, Henrietta Hotel, Tom Ford and Armani Box London providing additional
animation and quality to the portfolio, further underpinning the estate's reputation as a premier global retail and dining destination.

EARLS COURT PROPERTIES

Opportunity to create London's next great estate

Covering over 70 acres of prime, strategic land in Chelsea and Fulham, the consented Earls Court Masterplan is the largest
redevelopment opportunity in central London. The site is located in an established London neighbourhood and provides
excellent transport infrastructure. Underpinned by Capco's distinct approach to place-making, the Earls Court Masterplan
represents an opportunity to create the next great estate of London.

The mixed-use scheme is a GLA 'Opportunity Area', making it a key strategic scheme for the Capital and is currently consented
to provide 7,500 new homes, creating 10,000 jobs and will deliver over GBP450 million in community benefits. The scheme is the
only central London Opportunity Area of scale with the potential to deliver substantially more housing. Accordingly,
representations have been made by Capco to the GLA's London Plan to deliver 10,000 new homes, an additional 2,500 homes
above the current consented scheme.

Against the backdrop of London's growing housing needs, maximising Opportunity Areas is seen as vital in order to meet
London's demands. The current GLA London Plan estimates that London's population will grow by two million by 2036 and the
provision of housing a key priority with the Capital requiring over 40,000 new homes per annum.

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

-  63 per cent interest in ECPL: the investment vehicle with TfL in respect of EC1 & EC2, and including certain assets on
   and around Lillie Road
-  100 per cent of the Empress State Building
-  50 per cent interest in the Lillie Square joint venture

In addition, in 2013, Capco exercised its option under the Conditional Land Sale Agreement ("CLSA"), a binding agreement in
relation to the West Kensington and Gibbs Green Estates.

The valuation of Earls Court Properties is GBP1.1 billion, a decrease of 20.4 per cent (like-for-like) principally driven by a greater
risk premium through a higher developer's margin for consented development land, trimming of sales values, as well as some
cost inflation. This reflects the valuer's assessment of weakened sentiment and a correction in the central London residential market.

The Masterplan is located in two London Boroughs, the Royal Borough of Kensington and Chelsea and the London Borough of
Hammersmith & Fulham. Capco remains committed to working positively and constructively with all its stakeholders.

Earls Court Properties saw continued operational progress and achieved a number of milestones throughout 2016.

Planning

As a designated GLA Opportunity Area, The Earls Court Masterplan is a strategic scheme for the Capital with outline planning
consent for 10.7 million square feet (including The Empress State Building). In preparation for the next revision of the London
Plan, which is expected next year, representations have been submitted by Capco to the GLA outlining The Earls Court
Masterplan's ability to deliver a minimum of 10,000 new homes, well in excess of the 7,500 currently consented, demonstrating
the site's potential to deliver more housing and maximise this important London scheme. The additional density will deliver
much needed homes for all Londoners including additional affordable housing and a diversity of residential tenures.

ECPL has consolidated its ownership in the Masterplan area in recent years, acquiring a number of smaller assets on and
around Empress Place. During 2016, ECPL engaged in public consultations on proposals for 400 new homes and retail space,
covering circa 500,000 square feet (GEA), creating one of the key access points to the Earls Court Masterplan and Lillie
Square. Preparations are being made for the submission of the planning application by ECPL for the Empress Place scheme.
The application is expected to be submitted in spring 2017 and could add an additional circa 200,000 square feet (GEA) of
space to the Masterplan area, aligning with Earls Court's ability to deliver greater density.

In October 2016, a detailed planning application was submitted to the Royal Borough of Kensington and Chelsea for Exhibition
Square which is located at the entrance of the Earls Court estate adjacent to Earls Court Underground station. Detailed
planning consent was granted in January 2017. The consent which covers 1.8 acres will create an important gateway to the
Earls Court scheme and its new high street, including a public square and gardens, a signature hotel, offices and an entrance
to Earls Court Underground station.

Due to the scale of the Earls Court Masterplan, there will remain a risk of protests and legal challenges (ranging from
complaints about noise through to judicial reviews or applications for listing) against specific aspects of the scheme as it is
progressed. It should be noted that all such challenges to date have been successfully defended however future challenges of
this nature cannot be discounted.

Land assembly and enablement

ECPL, the venture with TfL in respect of EC1 & EC2 owns 999 year leases over the EC1 & EC2 land together with certain
adjacent properties primarily located on or around Lillie Road. Capco owns 63 per cent share and is leading the venture in its
role as business and development manager.

ECPL has made significant progress in the enablement of land interests at Earls Court. The first phase of the complex
demolition of the former Earls Court Exhibition Centres to ground level completed this year at a cost of GBP60 million. Demolition
to basement level will further de-risk the site and prepares the land for future development. This final phase of demolition is
expected to take 12 months at a cost of circa GBP40 million.

In 2013, Capco exercised its option under the CLSA, a binding agreement in relation to the West Kensington and Gibbs Green
Estates. To date, Capco has paid GBP60 million of the GBP105 million cash consideration payable to LBHF including two of the five
annual instalments of GBP15 million. Enabling works have commenced on Block D of Lillie Square foundations to facilitate the first
phase of replacement housing for the West Kensington and Gibbs Green estates residents.

Lillie Square

The Lillie Square development is a one million square foot (GEA) residential scheme located adjacent to the Earls Court
Masterplan. The development will deliver 608 private and 200 affordable homes across three phases.

The valuation of Capco's 50 per cent interest in Lillie Square, which is held in a joint venture with the Kwok Family Interests
("KFI"), decreased to GBP223 million, a like-for-like decrease of 17.0 per cent over the year.

Phase 1 launched in 2014 and is substantially pre-sold. The average price per square foot of Phase 1 is approximately GBP1,500
with the range of pricing achieved at GBP1,200 - GBP2,800 per square foot including a penthouse pre-sold for GBP6.3 million.
Construction of Phase 1 nears completion and the scheme welcomed its first residents in December 2016. Over GBP125 million of
sales proceeds (Capco's share) are expected in the coming year on completion of handovers of Phase 1.

Sales of Phase 2 have continued with 59 apartments now reserved or exchanged. Sales prices achieved in Phase 2 have
remained positive with prices at a modest premium to comparable units in Phase 1. Preparations are being made to enable the
next release in the coming months while plans are progressing to enable construction of Phase 2.

Construction costs in relation to the private element of the Lillie Square scheme are currently expected to be in the order of
GBP420 million, reflecting market conditions in the construction industry.

Future Priorities

Capco's strategy at Earls Court is to drive long-term value creation through planning, land assembly, land enablement and
selective development activities.

At Earls Court, the focus of activities will be the completion of the complex demolition of the former Earls Court Exhibition
Centres to below ground level, preparing the land for its future development potential. At Empress Place, the priority is to obtain
approval for the planning application which could increase the potential consented Masterplan area by circa 200,000 square
feet (GEA).

The Earls Court Masterplan is currently consented to deliver 7,500 new homes and is the only designated GLA Opportunity
Area of scale in central London making it a strategic scheme for the Capital. Representations recently made by Capco to the
GLA's London Plan outline the ability of The Earls Court Masterplan to deliver a minimum of 10,000 new homes, well in excess
of the currently consented scheme. Capco remains focused on maximising the potential of this important London scheme.

At Lillie Square, the focus will be to complete and deliver Phase 1, continue sales of Phase 2 through the next release of units
later in 2017 and progress plans to enable the construction of Phase 2.

VENUES

A leading central London venue

Olympia London is now established as a preferred central London venue for premium shows welcoming over 1.5 million visitors
each year. The business has performed very well during 2016, delivering EBITDA of GBP19 million, up 29 per cent compared to
2015 driven by improved pricing and utilisation as well as a business rates rebate. The valuation of the Venues business, which
includes Olympia London property assets and Maclise Road, decreased to GBP293 million, a like-for-like decrease of 1.3 per cent.

This year, Olympia London played host to inspiring showcases for L'Oreal and Samsung and also the UK's largest exhibition:
The Ideal Home Show and it continues to attract some of the best shows in the exhibition industry.

FINANCIAL REVIEW

Capco maintains a robust and disciplined financial position with low leverage of 23 per cent and available liquidity of GBP556
million. Our capital structure positions the Group to withstand prevailing market conditions and deliver long-term returns to
shareholders by driving value across our assets. During 2016 political and economic uncertainties have had a negative impact
on the property sector, in particular London residential property, which is reflected in the fall in valuations.

EPRA net asset value per share fell by 5.9 per cent during the year, decreasing from 361 pence at 31 December 2015 to 340
pence. This 21 pence decrease together with the 1.5 pence dividend paid during the year represents a total return of -5.5 per cent.

At Covent Garden rental growth achieved during the year was the main driver of the increase in value of the estate by 6.0 per
cent (6.4 per cent like-for-like).

The market value of Earls Court Properties, which comprises the Group's interests at Earls Court, has decreased by 20.4 per
cent, reflecting the valuers' assessment of the weakened sentiment in the central London residential market.

Basis of preparation

In line with the requirements of IFRS 11 'Joint Arrangements', the Group is required to present its joint ventures under the
equity method in the consolidated financial statements. Under the equity method, the Group's interest in joint ventures is
disclosed as a single line item in both the consolidated balance sheet and consolidated income statement rather than
proportionally consolidating the Group's share of assets, liabilities, income and expenses on a line-by-line basis.

Internally, the Board focuses on and reviews information and reports prepared on a Group share basis, which includes the
Group's share of joint ventures but excludes the non-controlling interest share of our subsidiaries. Therefore, to align with the
way the Group is managed, this financial review presents the financial position, performance and cash flow analysis on a
Group share basis. In previous years the Board focused on and reviewed information on a proportionally consolidated basis
therefore the comparative summary income statement and summary cash flow statements have been re-presented.

FINANCIAL POSITION

At 31 December 2016 the Group's EPRA net asset value was GBP2.9 billion (31 December 2015: GBP3.1 billion) representing 340
pence per share (31 December 2015: 361 pence).

The Group presents EPRA net asset value in addition to the net assets attributable to owners of the Parent. The EPRA
alternative performance measures are widely used by public real estate companies in Europe and therefore assist with comparability.

SUMMARY ADJUSTED BALANCE SHEET

                                                                                             2016             
                                                                                                        Non-             
                                                                                         Joint   controlling     Group   
                                                                            IFRS   ventures(1)   interest(2)     share   
                                                                            GBPm          GBPm          GBPm      GBPm   
Investment, development and trading property                             3,822.8         176.0       (378.5)   3,620.3   
Net debt                                                                 (815.4)        (40.1)           8.2   (847.3)   
Other assets and liabilities(3)                                            165.8       (135.9)           2.1      32.0   
Non-controlling interest                                                 (368.2)             -         368.2         -   
Net assets attributable to owners of the Parent                          2,805.0             -             -   2,805.0   
Adjustments:                                                                                                             
Fair value of derivative financial instruments                                                                    13.7   
Unrecognised surplus on trading property                                                                          48.1   
Deferred tax adjustments                                                                                          11.5   
EPRA net asset value                                                                                           2,878.3   
EPRA net asset value per share (pence)(4)                                                                          340   

(1) Primarily Lillie Square.
(2) Non-controlling interest represents TfL's 37 per cent share of ECPL.
(3) IFRS includes amounts receivable from joint ventures which eliminate on a Group share basis.
(4) Adjusted, diluted number of shares in issue at 31 December 2016 was 847.6 million.

                                                                                            2015             
                                                                                                        Non-             
                                                                                         Joint   controlling     Group   
                                                                            IFRS   ventures(1)   interest(2)     share   
                                                                            GBPm          GBPm          GBPm      GBPm   
Investment, development and trading property                             3,870.7         130.9       (471.6)   3,530.0   
Net debt                                                                 (559.2)         (9.4)        (10.3)   (578.9)   
Other assets and liabilities(3)                                             91.3       (121.5)          13.1    (17.1)   
Non-controlling interest                                                 (468.8)             -         468.8         -   
Net assets attributable to owners of the Parent                          2,934.0             -             -   2,934.0   
Adjustments:                                                                                                             
Fair value of derivative financial instruments                                                                     2.4   
Unrecognised surplus on trading property                                                                          99.9   
Deferred tax adjustments                                                                                          28.9   
Non-controlling interest in respect of the adjustments                                                           (5.8)   
EPRA net asset value                                                                                           3,059.4   
EPRA net asset value per share (pence)(4)                                                                          361   

(1) Primarily Lillie Square.
(2) Non-controlling interest represents TfL's 37 per cent share of ECPL.
(3) IFRS includes amounts receivable from joint ventures which eliminate on a Group share basis.
(4) Adjusted, diluted number of shares in issue at 31 December 2015 was 847.7 million.

Investment, development and trading property

The revaluation deficit on the Group's property portfolio was GBP170.4 million for the year, representing a 4.4 per cent decrease in
value on a like-for-like basis compared with the IPD Capital Return for the equivalent period of a 2.8 per cent loss. Revaluation
gains at Covent Garden of GBP129.4 million were not sufficient to offset revaluation loss at Earls Court of GBP292.7 million. On an
IFRS basis, which includes ECPL at 100% and Lillie Square at 50%, revaluation loss and sale of investment property was
GBP235.0 million.

Total property return for the year was a deficit of 2.3 per cent. The IPD Total Return index recorded a 2.6 per cent gain for the
corresponding period. The 2016 valuations incorporate the increased SDLT levels that were enacted earlier this year which had
an impact of GBP32.4 million (0.9 per cent of property value).

Trading property is carried on the consolidated balance sheet at the lower of cost and market value, therefore valuation
surpluses on trading property are not recorded. Any unrecognised surplus is however reflected within the EPRA net asset value
measure. At 31 December 2016, the unrecognised surplus on trading property was GBP48.1 million (31 December 2015: GBP99.9
million). This arises primarily on trading property at Lillie Square.

Debt and gearing

During the year the Group increased its share of available facilities by GBP425 million, with five new agreements.

-     In January, the Group replaced the GBP665 million Covent Garden debt facility with a GBP705 million five year Covent
      Garden debt facility which increased available facilities by GBP40 million. GBP640 million of the facility matures in 2021
      with the remaining GBP65 million maturing in 2020 with an option to extend to 2021. There is a further option to extend
      the facility to 2022.

-     In March, a GBP150 million (GBP95 million Group share) 10 year secured credit agreement was signed by Earls Court
      Partnership Limited to fund infrastructure-related costs on land interests at Earls Court.
 
-     In June, the Group entered into an agreement to extend the existing construction facility which funds the Lillie
      Square development by GBP30 million (GBP15 million Group share) for a one year period.
 
-     In September, the Group signed an agreement with five institutional investors for a private placement of GBP175
      million 10 and 12 year senior unsecured notes which enhance the unsecured debt platform at Covent Garden.
      Closing occurred in November and proceeds were used to repay bank debt.
 
-     In December, a GBP100 million four year secured credit agreement was signed by Olympia Exhibitions Holdings Limited.

The Group's cash and undrawn committed facilities at 31 December 2016 were GBP556.3 million (31 December 2015: GBP412.1
million). A reconciliation between IFRS and Group share is shown below:

                                                  2016                                       2015          
                                                              Non-                                        Non-           
                                               Joint   controlling   Group                 Joint   controlling   Group   
                                  IFRS   ventures(1)   interest(2)   share    IFRS   ventures(1)   interest(2)   share   
                                  GBPm          GBPm          GBPm    GBPm    GBPm          GBPm          GBPm    GBPm   
Cash and cash equivalents         30.9          37.4         (3.5)    64.8    66.9          34.4        (10.3)    91.0   
Undrawn committed facilities     532.7           2.4        (43.6)   491.5   300.0          21.1             -   321.1   
Cash and undrawn committed                                                                                               
facilities                       563.6          39.8        (47.1)   556.3   366.9          55.5        (10.3)   412.1   

(1) Primarily Lillie Square.
(2) Non-controlling interest represents TfL's 37 per cent share of ECPL.

Net debt increased by GBP268.4 million to GBP847.3 million, principally as a result of further investment in and the acquisition of
property. As set out in the summary adjusted balance sheet net debt on an IFRS basis was GBP815.4 million.

The gearing measure most widely used in the industry is loan to value ("LTV"). LTV is calculated on the basis of net debt
divided by the carrying value of the Group's property portfolio. The Group focuses most on an LTV measure that includes the
notional share of joint venture interests but excludes the share of the non-controlling interest. The LTV of 23.4 per cent remains
comfortably within the Group's limit of no more than 40 per cent.

                                                                                                   2016           2015   
Loan to value                                                                                     23.4%          16.4%   
Interest cover                                                                                     173%           124%   
Weighted average debt maturity                                                                5.9 years      4.1 years   
Weighted average cost of debt                                                                      2.7%           3.3%   
Gross debt with interest rate protection                                                            86%            91%   


The Group's policy is to substantially eliminate the medium and long-term risk arising from interest rate volatility. The Group's
banking facilities are arranged on a floating rate basis but are generally swapped to fixed rate or capped using derivative
contracts. At 31 December 2016 the proportion of gross debt with interest rate protection was 86 per cent (31 December 2015:
91 per cent).

The Group remains compliant with all of its debt covenants and has substantial levels of headroom against its covenants
across all its debt facilities. Details of the covenants are included on page 56.

At 31 December 2016 the Group had capital commitments of GBP156.6 million compared to GBP206.5 million at 31 December 2015,
of which Covent Garden represents GBP74.2 million, Earls Court Properties GBP64.2 million (including the GBP45.0 million of CLSA
instalments) and Lillie Square GBP18.2 million. The pipeline has been significantly de-risked, for example at Floral Court where
approximately 60 per cent of the commercial space has been pre-let to Petersham Nurseries, and through over GBP300 million
(GBP150 million Group share) of pre-sales at Lillie Square. On a pro forma basis, not taking into account any property valuation
movements or any receipts, expenditure on capital commitments would increase the LTV from 23.4 per cent to 27.7 per cent.

                                                    2016                                      2015          
                                                                Non-                                      Non-           
                                                 Joint   controlling   Group               Joint   controlling   Group   
                                     IFRS  ventures(1)   interest(2)   share    IFRS ventures(1)   interest(2)   share   
                                     GBPm         GBPm          GBPm    GBPm    GBPm        GBPm          GBPm    GBPm   
Capital commitments                 149.2         18.2        (10.8)   156.6   162.5        48.6         (4.6)   206.5   

(1) Primarily Lillie Square.
(2) Non-controlling interest represents TfL's 37 per cent share of ECPL.

Conditional Land Sale Agreement ("CLSA")

In November 2013 the Group exercised its option under the CLSA, which it entered into with the London Borough of
Hammersmith & Fulham ("LBHF"), for the purchase of the West Kensington and Gibbs Green housing estates (the "Estates").
The overall consideration payable is expected to be GBP105 million cash plus the planning requirement to provide up to 760
replacement homes.

The CLSA remains unrecognised in the consolidated financial statements of the Group as its main underlying asset (the land
relating to the Estates) does not currently meet the recognition criteria under IFRS required for investment and development
property. Annual payments of GBP15 million commenced in December 2015 and will run through to December 2019. Where
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. Of the GBP60 million paid to date, GBP15 million relates to the acquisition of two properties and GBP45 million is
held as a prepayment. The remaining future payments totalling GBP45 million are disclosed as a capital commitment. 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 changes reflected in the Group's reported net asset measure.

CASH FLOW

A summary of the Group's cash flow for the year ended 31 December 2016 is presented below:

SUMMARY CASH FLOW

                                                                                            2016          
                                                                                                        Non-             
                                                                                         Joint   controlling     Group   
                                                                            IFRS   ventures(1)   interest(2)     share   
                                                                            GBPm          GBPm          GBPm      GBPm   
Operating cash flows after interest and tax                               (29.5)           1.4         (2.5)    (30.6)   
Purchase and development of property, plant and equipment                (216.1)        (41.4)          16.8   (240.7)   
Transactions with joint venture partners and non-controlling interests    (12.3)           6.4           3.9     (2.0)   
Net sales proceeds from property and investments                            19.4           1.3             -      20.7   
Net cash flow before financing                                           (238.5)        (32.3)          18.2   (252.6)   
Issue of shares                                                              0.1             -             -       0.1   
Financing                                                                  209.9          31.6        (11.4)     230.1   
Dividends paid                                                             (7.5)             -             -     (7.5)   
Net cash flow(3)                                                          (36.0)         (0.7)           6.8    (29.9)   

(1) Primarily Lillie Square.
(2) Non-controlling interest represents TfL's 37 per cent share of ECPL.
(3) Net cash flow is based on unrestricted cash and cash equivalents and therefore does not include the movement in Lillie Square deposits on a Group share basis of
    GBP3.7 million.

                                                                                   Re-presented(1) 2015             
                                                                                                        Non-             
                                                                                         Joint   controlling     Group   
                                                                            IFRS   ventures(2)   interest(3)     share   
                                                                            GBPm          GBPm          GBPm      GBPm   
Operating cash flows after interest and tax                                (2.3)         (4.3)        (16.0)    (22.6)   
Purchase and development of property, plant and equipment                (250.2)        (32.7)          12.8   (270.1)   
Transactions with joint venture partners and non-controlling interests    (16.7)           4.2             -    (12.5)   
Net sales proceeds from property and investments                            17.7         (1.6)             -      16.1   
Deferred consideration on purchase of subsidiary                           (7.1)             -             -     (7.1)   
Net cash flow before financing                                           (258.6)        (34.4)         (3.2)   (296.2)   
Issue of shares                                                              0.1             -             -       0.1   
Financing                                                                  238.3          36.9             -     275.2   
Dividends paid                                                             (7.7)             -             -     (7.7)   
Net cash flow(4)                                                          (27.9)           2.5         (3.2)    (28.6)   

(1) The 31 December 2015 summary cash flow has been prepared on a Group share basis. In the 'Annual Report for the year ended 31 December 2015' the summary
    cash flow was presented on a proportionate consolidation basis.
(2) Primarily Lillie Square.
(3) Non-controlling interest represents TfL's 37 per cent share of ECPL.
(4) Net cash flow is based on unrestricted cash and cash equivalents and therefore does not include the movement in Lillie Square deposits on a Group share basis of
    GBP14.9 million.

Operating cash outflows of GBP30.6 million, of which GBP15.0 million relates to the CLSA annual payment, have increased from
GBP22.6 million for the year to 31 December 2015 as a result of changes to net working capital requirements.

During the year, GBP164.0 million was invested at Covent Garden for the purchase of two properties and subsequent expenditure
for the development of property, predominantly at Floral Court. At Earls Court GBP75.0 million was spent on subsequent
expenditure for the construction of Lillie Square Phase 1 and the demolition of the Earls Court Exhibition Centres.

Net sales proceeds from property and investments comprise the disposal of three residential units at The Beecham, Covent
Garden and five residential units at Lillie Square, net of sales and marketing fees. Marketing fees include costs for units that
have not yet completed.

Net borrowings drawn during the year were GBP239.7 million. Refinancing activities and purchase of derivatives resulted in a cash
outflow of GBP9.6 million.

Dividends paid of GBP7.5 million reflect the final dividend payment made in respect of the 2015 financial year and the 2016 interim
dividend paid in September. This was lower than the previous year due to a higher take up of the scrip dividend alternative, 41
per cent versus 38 per cent in 2015.

FINANCIAL PERFORMANCE

The Group presents underlying earnings and underlying earnings per share in addition to the amounts reported on a Group
share basis. The Group considers this presentation to provide useful information as it removes unrealised and other one-off
items and therefore represents the recurring, underlying performance of the business.

SUMMARY INCOME STATEMENT

                                                                                           2016         
                                                                                                        Non-             
                                                                                         Joint   controlling     Group   
                                                                             IFRS  ventures(1)   interest(2)     share   
                                                                             GBPm         GBPm          GBPm      GBPm   
Net rental income                                                            82.0        (0.1)         (0.4)      81.5   
Loss on revaluation and sale of investment and development property       (235.0)        (0.1)         110.3   (124.8)   
Administration expenses                                                    (50.6)        (0.8)           0.9    (50.5)   
Net finance costs                                                          (19.3)        (0.2)             -    (19.5)   
Taxation                                                                     16.8            -         (5.9)      10.9   
Other                                                                      (17.4)          1.2             -    (16.2)   
Non-controlling interest                                                    104.9            -       (104.9)         -   
(Loss)/profit for the year attributable to owners of the Parent           (118.6)            -             -   (118.6)   
Adjustments:                                                                                                             
Loss on revaluation and sale of investment and development property                                              124.8   
Other                                                                                                             18.9   
Taxation on non-underlying items                                                                                (13.3)   
Underlying earnings                                                                                               11.8   
Underlying earnings per share (pence)                                                                              1.4   
Weighted average number of shares                                                                               844.4m   

(1) Lillie Square and Solum Developments.
(2) Non-controlling interest represents TfL's 37 per cent share of ECPL.

                                                                                   Re-presented(1) 2015             
                                                                                                        Non-             
                                                                                         Joint   controlling     Group   
                                                                            IFRS   ventures(1)   interest(2)     share   
                                                                            GBPm          GBPm          GBPm      GBPm   
Net rental income                                                           75.3             -         (0.4)      74.9   
Gain on revaluation and sale of investment and development property        453.9           0.1        (32.2)     421.8   
Administration expenses                                                   (52.1)         (0.7)           0.3    (52.5)   
Net finance costs                                                         (20.1)             -             -    (20.1)   
Taxation                                                                   (2.7)             -           5.8       3.1   
Other                                                                        2.9           0.6           0.4       3.9   
Non-controlling interest                                                  (26.1)             -          26.1         -   
Profit for the year attributable to owners of the Parent                   431.1             -             -     431.1   
Adjustments:                                                                                                             
Gain on revaluation and sale of investment and development property                                            (421.8)   
Other                                                                                                            (1.4)   
Taxation on non-underlying items                                                                                 (0.1)   
Underlying earnings                                                                                                7.8   
Underlying earnings per share (pence)                                                                              0.9   
Weighted average number of shares                                                                               840.8m   

(1) The 31 December 2015 summary income statement has been prepared on a Group share basis. In the 'Annual Report for the year ended 31 December 2015' the
    summary income statement was presented on a proportionate consolidation basis.
(2) Lillie Square and Solum Developments.
(3) Non-controlling interest represents TfL's 37 per cent share of ECPL.

Income

Net rental income has increased by GBP6.6 million (7.8 per cent like-for-like) during the year as a result of strong performances at
Covent Garden and Olympia London.

(Loss)/gain on revaluation and sale of investment and development property

The loss on revaluation and sale of the Group's investment and development property was GBP124.8 million. Covent Garden
recorded a gain on revaluation of GBP126.1 million as a result of rental growth. The loss on revaluation at Earls Court of GBP247.2
million reflects the valuers' assessment of the weakened sentiment in the central London residential market, driven by market
uncertainties following the outcome of the EU Referendum and the increase in SDLT.

Administration expenses

Administration expenses have decreased by GBP2.0 million due to a reduction in performance related employment costs, which
have been partly offset by an increase in establishment costs. It is expected that there will be further reduction in administration
expenses as efficiency initiatives are pursued.

Net finance costs

Net finance costs have decreased by 3.0 per cent to GBP19.5 million, with a lower weighted average cost of debt offsetting an
increased level of net debt.

Taxation

The total tax credit is made up of both underlying tax and non-underlying tax and for the year is GBP10.9 million. This credit
predominantly arises from the loss on revaluation of the Group's investment and development property at Earls Court.

Tax on underlying profits of the Group was GBP2.4 million, which reflects a rate in line with the current rate of UK corporation tax
being 20 per cent. Following the enactment of Finance (No. 2) Act 2015 and Finance Act 2016 the corporation tax rate will
reduce to 19 per cent from April 2017 and 17 per cent from April 2020.

Contingent tax, the amount of tax that would become payable on a theoretical disposal of all investment property held by the
Group, was GBPnil (31 December 2015: GBP17.6 million). A disposal of the Group's trading property at market value would result in a
corporation tax charge to the Group of GBP9.6 million (20 per cent of GBP48.1 million).

The provisions of IAS 12 provide for the recognition of a deferred tax asset where it is probable there will be future taxable profit
against which a deductible temporary difference can be utilised. As a result of the application of this provision, the Group has
not recognised the deferred tax asset on decreases to the carrying value of investment property and certain losses carried forward.

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 31 May 2017 to shareholders on the register at
21 April 2017. Subject to SARB approval, a scrip dividend alternative will be offered. Together with the interim dividend paid in
September this brings the total dividend for the year to 1.5 pence per share.

Going concern

At 31 December 2016 the Group's cash and undrawn committed facilities were GBP556.3 million and its capital commitments
were GBP156.6 million. With weighted average debt maturity of nearly six years, LTV of 23.4 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 over a period of at least 12 months from the date of
approval of the financial statements. Accordingly, the Directors have prepared the 2016 Annual Report & Accounts on a going
concern basis.

Situl Jobanputra

Chief Financial Officer
21 February 2017

PRINCIPAL RISKS AND UNCERTAINTIES

RISK MANAGEMENT:

The Board has overall responsibility for Group risk management. It determines its risk appetite and reviews principal risks and
uncertainties regularly, together with the actions taken to mitigate them. The Board has delegated responsibility for the review
of the adequacy and effectiveness of the Group's internal control framework to the Audit Committee.

Following a comprehensive review of risk management undertaken in 2015, risk is a standing agenda item at all management
meetings. This gives rise to a more risk aware culture and consistency in decision making across the organisation in line with
the corporate strategy and risk appetite. All corporate decision making takes risk into account, in a measured way, while
continuing to drive an entrepreneurial culture.

The Executive Directors are responsible for the day to day operational and commercial activity across the Group and are
therefore responsible for the management of business risk. The Executive Risk Committee, comprising of the Executive
Directors, the General Counsel and the Financial Controller, is the executive level management forum for the review and
discussion of risks, controls and mitigation measures. The corporate and business division risks are reviewed on a quarterly
basis by the Executive Risk Committee so that trends and emerging risks can be identified and reported to the Board.

Senior management from every division and corporate function of the business identify and manage the risks for their division
or function and complete and maintain a risk register. The severity of each risk is assessed through a combination of each
risk's likelihood of an adverse outcome and its impact. In assessing impact, consideration is given to financial, reputational and
regulatory factors and risk mitigation plans established. A full risk review is undertaken annually where the risk registers are
aggregated and reviewed by the Executive Risk Committee. The Directors confirm that they have completed a robust
assessment of the principal risks faced by the business, assisted by the work performed by the Executive Risk Committee.

The Group's principal risks and uncertainties, which are set out on the following pages, are reflective of where the Board has
invested time during the year. These principal risks 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 'Principal Accounting Policies' to the consolidated financial statements, 'Critical
accounting judgements and key sources of estimation and uncertainty'.

The EU Referendum has resulted in economic and political uncertainty during 2016 and this is expected to continue into the
foreseeable future. To date there has been no adverse impact on occupier demand, footfall or the trading results of our tenants
at the Covent Garden estate, which has seen strong rental growth, although the valuation of residential-led development land
has been impacted by the overall economic and political backdrop. London, as a highly desirable global city, continues to
attract businesses and people and we would expect this leading position to be maintained over time. Uncertainty remains,
however, around the exit mechanism and longer term implications of Brexit, and this will continue to have a direct or indirect
impact on a number of the principal risks set out on the following pages.

CORPORATE

Risk                                    Impact on strategy                  Mitigation                              Change in 2016
Economic conditions
Decline in real estate valuations       Reduced return on investment        Focus on prime assets                   Increased
due to macro-economic                   and development property
conditions                              Higher finance costs                Regular assessment of investment        Greater uncertainty over
                                                                            market conditions including bi-         macro-economic conditions
                                                                            annual external valuations              following the EU
      
Relative attractiveness of other        Reduced profitability               Regular strategic reviews               Referendum result
asset classes or locations                                                                                          
                                                                            Strategic focus on creating retail
Inability of the Company to                                                 destinations and residential
adopt the appropriate strategy                                              districts with unique attributes                                                            
or to react to changing market                                              
conditions

Funding
Lack of availability or increased       Reduced financial and               Maintain appropriate liquidity to       Increased
cost of debt or equity funding          operational flexibility             cover commitments                       
                                                                                                                    Whilst interest rates have
                                        Increased cost of borrowing         Target longer and staggered debt        declined, economic
                                        Delay to development works          maturities                              uncertainties could
                                                                                                                    adversely impact the
                                        Constrained growth, lost            Consideration of early refinancing      availability and pricing of
                                        opportunities                                                               future funding              
                                                                            Derivative contracts to provide         
                                                                            interest rate protection

                                                                            Development phasing to enable
                                                                            flexibility and reduce financial
                                                                            exposure

                                                                            Covenant headroom monitored
                                                                            and stress tested

Risk                                    Impact on strategy                  Mitigation                              Change in 2016
Political climate and public opinion    
Uncertain political climate or          Prosecution for non-compliance      Monitoring proposals and                Increased
changes to legislation                                                      emerging policy and legislation
                                        Litigation                                                                  EU Referendum result,
The Group's business (or                                                    Engagement with key stakeholders        election of new London
aspects of it) is opposed or            Reputational damage                 and politicians                         Mayor and change of Prime
challenged by public interest or                                                                                    Minister result in increased
activist groups                         Distraction of management           Review activity and                     uncertainty over future
                                                                            communications of activist groups       policy and legislation                                                                                                              
Catastrophic external event 
Such as a terrorist attack,             Diminishing London's status         Terrorist insurance                     Static
health pandemic or cyber crime  
                                        Heightened by concentration of      On-site security
                                        investments
                                                                            Health and safety policies and
                                        Reduced rental income and/or        procedures
                                        capital values
                                                                            Close liaison with police, National
                                        Business disruption or damage       Counter Terrorism Security Office
                                        to property                         (NaCTSO) and local authorities
 
                                        Reputational damage                 Regular training
People 
Inability to retain the right           Inability to execute strategy and   Succession planning, performance        Static
people and develop leadership           business plan                       evaluations, training and
skills within the business                                                  development
                                        Constrained growth, lost
                                        opportunities                       Long-term and competitive
                                                                            incentive rewards
Health, safety & the environment 
Accidents causing loss of life or       Prosecution for non-compliance      Health and safety procedures            Static
very serious injury to                  with legislation                    across the Group
employees, contractors,                 
occupiers and visitors to the           Litigation or fines                 Appointment of reputable
Group's properties                                                          contractors
                                        Reputational damage 
Activities at the Group's                                                   External consultants undertake
properties causing detrimental          Distraction of management           annual audits in all locations
impact on the environment                                                                            
                                                                            Adequate insurance held to cover the
                                                                            risks inherent in construction projects
Compliance with law, regulations and contracts
Breach of legislation, regulation       Prosecution for non-compliance      Appointment of external advisers        Static
or contract                             with legislation                    to monitor changes in law or
                                                                            regulation
Inability to monitor or anticipate      Litigation or fines
legal or regulatory changes                                                 Members of staff attend external
                                        Reputational damage                 briefings to remain cognisant of
                                                                            legislative and regulatory changes
                                        Distraction of management

PROPERTY

Risk                                    Impact on strategy                  Mitigation                              Change in 2016
Leasing
Inability to achieve target rents       Decline in tenant demand for        Quality tenant mix                      Static
or to attract target tenants due        the Group's properties              Strategic focus on creating retail
to market conditions                                                        destinations with unique attributes
                                        Reduced income                      
Competition from other                  
locations                               Expansion of yield

Planning
Unfavourable planning policy or         Delay or failure to achieve         Outline planning permission             Static
legislation impacting on the            growth in land valuation            already granted for the Earls Court
ability to secure future planning                                           Masterplan
approvals or consents
                                                                            Engagement with local and
Secretary of State or Mayoral                                               national authorities
intervention or judicial review 
                                                                            Pre-application and consultation
                                                                            with key stakeholders and
                                                                            landowners

                                                                            Engagement with local community
                                                                            bodies
Developments
Decline in returns from                 Lower development returns due       Focus on prime assets                   Increased
development and impact on               to lower sales proceeds, higher                                       
land valuations due to:                 costs or delay                      Regular assessment of market            Greater uncertainty over
                                                                            conditions, pricing and sales           macro-economic conditions
-      Market conditions                                                    strategy                                and central London
                                                                                                                    residential market following
-      Increased construction                                               Business strategy based on long-        the EU Referendum result
       costs or delays (including                                           term returns                            
       as a result of complexity of                                         
       developing adjacent to                                               Professional teams in place to             
       and above public transport                                           manage costs and deliver
       infrastructure)                                                      programme
                                                                            
-      Failure to implement                                                 Earls Court Masterplan designed
       strategic land deals with                                            to allow phased implementation
       adjacent landowners on
       acceptable terms

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 2016. 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 loss 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 21 February 2017.

Ian Hawksworth
Chief Executive

Situl Jobanputra
Chief Financial Officer

CONSOLIDATED INCOME STATEMENT
For the year ended 31 December 2016
                                                                                                         2016     2015   
                                                                                              Notes      GBPm     GBPm   
Revenue                                                                                           2     127.4    114.9   
Rental income                                                                                           104.0     99.7   
Rental expenses                                                                                        (22.0)   (24.4)   
Net rental income                                                                                 2      82.0     75.3   
Profit on sale of trading property                                                                3       5.6      3.5   
Other income                                                                                              4.6      4.0   
(Loss)/gain on revaluation and sale of investment and development property                        4   (235.0)    453.9   
Profit/(loss) on sale of available-for-sale investments                                                   0.4    (0.2)   
Impairment of other receivables                                                                   5    (14.8)   (12.2)   
Other costs                                                                                       6     (5.0)    (0.2)   
                                                                                                      (162.2)    524.1   
Administration expenses                                                                                (50.6)   (52.1)   
Operating (loss)/profit                                                                               (212.8)    472.0   
Finance income                                                                                    7       0.3      0.7   
Finance costs                                                                                     8    (19.6)   (20.8)   
Other finance income                                                                              7      10.5      9.3   
Other finance costs                                                                               8     (5.3)        -   
Change in fair value of derivative financial instruments                                         19    (13.1)    (0.6)   
Net finance costs                                                                                      (27.2)   (11.4)   
                                                                                                      (240.0)    460.6   
Share of post-tax loss from joint ventures                                                       13     (0.3)    (0.7)   
(Loss)/profit before tax                                                                              (240.3)    459.9   
Current tax                                                                                             (1.0)      2.2   
Deferred tax                                                                                             17.8    (4.9)   
Taxation                                                                                          9      16.8    (2.7)   
(Loss)/profit for the year                                                                            (223.5)    457.2   
(Loss)/profit attributable to:                                                                                           
Owners of the Parent                                                                                  (118.6)    431.1   
Non-controlling interest                                                                         14   (104.9)     26.1   
Earnings per share attributable to owners of the Parent                                                                  
Basic (loss)/earnings per share                                                                  11   (14.0)p    51.3p   
Diluted (loss)/earnings per share                                                                11   (14.0)p    50.9p   
Weighted average number of shares                                                                11    844.4m   841.1m   

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
For the year ended 31 December 2016
                                                                                                          2016    2015   
                                                                                               Notes      GBPm     BPm   
(Loss)/profit for the year                                                                             (223.5)   457.2   
Other comprehensive (expense)/income                                                                                     
Items that may be reclassified subsequently to the income statement                                                      
Realise revaluation reserves on available-for-sale investments                                           (0.2)       -   
Loss on cash flow hedge                                                                                  (1.2)       -   
Tax relating to items that may be reclassified subsequently                                       20       0.3       -   
Items that will not be reclassified subsequently to the income statement                                                 
Actuarial (loss)/gain on defined benefit pension scheme                                                  (1.6)     0.8   
Tax relating to items that will not be reclassified                                               20       0.3   (0.2)   
Total other comprehensive (expense)/income for the year                                                  (2.4)     0.6   
Total comprehensive (expense)/income for the year                                                      (225.9)   457.8   
Attributable to:                                                                                                         
Owners of the Parent                                                                                   (121.0)   431.7   
Non-controlling interest                                                                          14   (104.9)    26.1   

CONSOLIDATED BALANCE SHEET
As at 31 December 2016
                                                                                                        2016      2015   
                                                                                             Notes      GBPm      GBPm   
Non-current assets                                                                                                       
Investment and development property                                                             12   3,819.9   3,855.3   
Plant and equipment                                                                                      7.1       6.9   
Investment in joint ventures                                                                    13      15.0      14.8   
Available-for-sale investments                                                                             -       0.2   
Derivative financial instruments                                                                19       0.2       0.8   
Pension asset                                                                                              -       0.7   
Trade and other receivables                                                                     15     194.8     158.9   
                                                                                                     4,037.0   4,037.6   
Current assets                                                                                                           
Trading property                                                                                12       2.9      15.5   
Trade and other receivables                                                                     15      47.8      32.3   
Cash and cash equivalents                                                                       16      30.9      66.9   
                                                                                                        81.6     114.7   
Total assets                                                                                         4,118.6   4,152.3   
Non-current liabilities                                                                                                  
Borrowings, including finance leases                                                            18   (827.8)   (607.6)   
Derivative financial instruments                                                                19    (13.9)     (3.2)   
Pension liability                                                                                      (0.9)         -   
Deferred tax                                                                                    20     (2.7)    (19.5)   
                                                                                                     (845.3)   (630.3)   
Current liabilities                                                                                                      
Borrowings, including finance leases                                                            18    (18.5)    (18.5)   
Other provisions                                                                                       (2.0)     (2.0)   
Tax liabilities                                                                                        (1.3)     (2.8)   
Trade and other payables                                                                        17    (78.3)    (95.9)   
                                                                                                     (100.1)   (119.2)   
Total liabilities                                                                                    (945.4)   (749.5)   
Net assets                                                                                           3,173.2   3,402.8   
Equity                                                                                                                   
Share capital                                                                                   21     211.5     210.5   
Other components of equity                                                                           2,593.5   2,723.5   
Equity attributable to owners of the Parent                                                          2,805.0   2,934.0   
Non-controlling interest                                                                        14     368.2     468.8   
Total equity                                                                                         3,173.2   3,402.8   

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
For the year ended 31 December 2016
                                                                          Equity attributable to owners of the Parent                                     
                                                                                            Share-                                                                  
                                                                                             based                                                 Non-             
                                                Share     Share           Merger           payment             Other   Retained             controlling     Total   
                                              capital   premium       reserve(1)           reserve       reserves(2)   earnings     Total      interest    equity   
                                      Notes      GBPm      GBPm             GBPm              GBPm              GBPm       GBPm      GBPm          GBPm      GBPm   
Balance at 1 January 2015                       209.1     206.9            425.8              11.4               0.4    1,652.7   2,506.3             -   2,506.3   
Profit for the year                                 -         -                -                 -                 -      431.1     431.1          26.1     457.2   
Other comprehensive                                                                                                                                                 
income/(expense)                                                                                                                                                    
Actuarial gain on defined                           -         -                -                 -                 -        0.8       0.8             -       0.8   
benefit pension scheme                                                                                                                                              
Tax relating to items that will                     -         -                -                 -                 -      (0.2)     (0.2)             -     (0.2)   
not be reclassified                      20                                                                                                                         
Total comprehensive income for the                  -         -                -                 -                 -      431.7     431.7          26.1     457.8   
year ended 31 December 2015                                                                                                                                         
Transactions with owners                                                                                                                                            
Ordinary shares issued                   21       1.4       4.2                -                 -                 -          -       5.6             -       5.6   
Dividend expense                         10         -         -                -                 -                 -     (12.6)    (12.6)             -    (12.6)   
Adjustment for bonus issue               10         -         -                -                 -                 -        0.6       0.6             -       0.6   
Realisation of share-based payment                                                                                                                                  
reserve on issue of shares                          -         -                -             (5.7)                 -        5.0     (0.7)             -     (0.7)   
Fair value of share-based payment                   -         -                -               4.6                 -          -       4.6             -       4.6   
Tax relating to share-based payment      20         -         -                -                 -                 -      (1.5)     (1.5)             -     (1.5)   
Contribution from non-controlling                                                                                                                                   
interest                                 14         -         -                -                 -                 -          -         -         442.7     442.7   
Total transactions with owners                    1.4       4.2                -             (1.1)                 -      (8.5)     (4.0)         442.7     438.7   
Balance at 31 December 2015                     210.5     211.1            425.8              10.3               0.4    2,075.9   2,934.0         468.8   3,402.8   
Loss for the year                                   -         -                -                 -                 -    (118.6)   (118.6)       (104.9)   (223.5)   
Other comprehensive (expense)/                                                                                                                                      
income                                                                                                                                                              
Realise revaluation reserves on                                                                                                                                     
Available- for-sale investments                     -         -                -                 -             (0.2)          -     (0.2)             -     (0.2)   
Loss on cash flow hedge                             -         -                -                 -             (1.2)          -     (1.2)             -     (1.2)   
Tax relating to items that may be                                                                                                                                   
reclassified subsequently                20         -         -                -                 -               0.3          -       0.3             -       0.3   
Actuarial loss on defined                                                                                                                                           
benefit pension scheme                              -         -                -                 -                 -      (1.6)     (1.6)             -     (1.6)   
Tax relating to items that will                                                                                                                                     
not be reclassified                      20         -         -                -                 -                 -        0.3       0.3             -       0.3   
Total comprehensive expense for                                                                                                                                     
the year ended 31 December 2016                     -         -                -                 -             (1.1)    (119.9)   (121.0)       (104.9)   (225.9)   
Transactions with owners                                                                                                                                            
Ordinary shares issued                   21       1.0       4.0                -                 -                 -          -       5.0             -       5.0   
Dividend expense                         10         -         -                -                 -                 -     (12.7)    (12.7)             -    (12.7)   
Adjustment for bonus issue               10         -         -                -                 -                 -        0.9       0.9             -       0.9   
Realisation of share-based payment                                                                                                                                  
reserve on issue of shares                          -         -                -             (5.3)                 -        4.6     (0.7)             -     (0.7)   
Fair value of share-based payment                   -         -                -               1.1                 -          -       1.1             -       1.1   
Tax relating to share-based payment      20         -         -                -                 -                 -      (1.6)     (1.6)             -     (1.6)   
Contribution from non-controlling                                                                                                                                   
interest                                 14         -         -                -                 -                 -          -         -           4.3       4.3   
Total transactions with owners                    1.0       4.0                -             (4.2)                 -      (8.8)     (8.0)           4.3     (3.7)   
Balance at 31 December 2016                     211.5     215.1            425.8               6.1             (0.7)    1,947.2   2,805.0         368.2   3,173.2   

(1) Represents non-qualifying consideration received by the Group following the share placing in May 2014 and previous share placements. The amounts taken to
    the merger reserve do not currently meet the criteria for qualifying consideration as they form part of linked transactions.
(2) Other reserves comprises of revaluation reserve of GBPnil (2015: GBP0.1 million) and cash flow hedge reserve of -GBP0.7 million (2015: GBP0.3 million).

CONSOLIDATED STATEMENT OF CASH FLOWS
For the year ended 31 December 2016
                                                                                                        2016      2015   
                                                                                             Notes      GBPm      GBPm   
Cash flows from operating activities                                                                                     
Cash generated from operations                                                                  24     (7.7)      13.1   
Interest paid                                                                                         (19.6)    (19.6)   
Interest received                                                                                        0.2       0.7   
Tax (paid)/received                                                                                    (2.4)       3.5   
Net cash outflow from operating activities                                                            (29.5)     (2.3)   
Cash flows from investing activities                                                                                     
Purchase and development of property                                                                 (216.1)   (250.2)   
Sale of property                                                                                        18.5      11.2   
Acquisition of interest in joint venture                                                                   -    (13.5)   
Investment in joint venture                                                                            (0.5)         -   
Proceeds from available-for-sale investments                                                             0.4         -   
Sale of loan notes                                                                                         -       6.0   
Sale of subsidiaries(1)                                                                                  0.5       0.5   
Loan advances to joint ventures                                                                       (11.8)     (3.2)   
Deferred consideration on purchase of subsidiary                                                           -     (7.1)   
Net cash outflow from investing activities                                                           (209.0)   (256.3)   
Cash flows from financing activities                                                                                     
Issue of shares                                                                                          0.1       0.1   
Borrowings drawn                                                                                       832.0     225.0   
Borrowings repaid                                                                                    (612.0)    (51.0)   
Purchase of derivative financial instruments                                                           (1.9)         -   
Other finance costs                                                                                    (8.2)     (0.4)   
Cash dividends paid                                                                             10     (7.5)     (7.7)   
Contribution from non-controlling interest                                                                 -      64.7   
Net cash inflow from financing activities                                                              202.5     230.7   
Net decrease in unrestricted cash and cash equivalents                                                (36.0)    (27.9)   
Unrestricted cash and cash equivalents at 1 January                                                     60.9      88.8   
Unrestricted cash and cash equivalents at 31 December                                           16      24.9      60.9   

(1) Cash inflows from sale of subsidiaries relate to deferred consideration on the disposal of The Brewery by EC&O Limited on 9 February 2012.

NOTES TO THE ACCOUNTS

1 PRINCIPAL ACCOUNTING POLICIES

General information

Capital & Counties Properties PLC (the "Company") 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 Group's assets principally comprise investment and development property 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, IFRS Interpretations Committee ("IFRSIC") 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 derivative financial instruments.

During 2016, the following accounting standards and interpretations have been adopted by the Group:

IFRS 10 'Consolidated Financial Statements' (amendment)
IFRS 11 'Joint Arrangements' (amendment)
IAS 1 'Presentation of Financial Statements' (amendment)
IAS 16 'Property, Plant and Equipment' (amendment)
IAS 27 'Separate Financial Statements' (amendment)
IAS 28 'Investments in Associates and Joint Ventures' (amendment)
IAS 38 'Intangible Assets' (amendment)
Amendments to IFRS (Annual improvements cycle 2012-2014)

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

At the date of approval of the consolidated financial statements the following standards and interpretations which have not been
applied in these financial statements were in issue but not effective, and in some cases have not been adopted for use in the
European Union are:

IFRS 2 'Share-based Payment' (amendment)
IFRS 4 'Insurance Contracts' (amendment)
IFRS 9 'Financial Instruments'
IFRS 10 'Consolidated Financial Statements' and IAS 28 'Investments in Associates and Joint Ventures' (amendment)
IFRS 15 'Revenue from Contracts with Customers'
IFRS 16 'Leases'
IAS 7 'Statement of Cash Flows' (amendment)
IAS 12 'Income Taxes' (amendment)

The Group has assessed the impact of these new standards and interpretations and do not anticipate any material impact
on the financial statements.

In relation to IFRS 15 'Revenue from Contracts with Customers', the Group's material revenue stream relates to property
rental income. On the adoption of the standard this revenue stream will not be materially impacted due to property rental
income continuing to be within the scope of IAS 17 'Leases' and therefore is out of scope. As the Group is predominately a
lessor, IFRS 16 'Leases', will not have a material impact on adoption. Where the Group is currently a lessee, this relates to
immaterial contracts.

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

Going Concern

The Directors are satisfied that the Group has adequate resources to continue in operational existence for a period of at least
12 months from the date of approval of the financial statements and for this reason the consolidated financial statements have
been prepared on a going concern basis.

Basis of consolidation

These consolidated financial statements include the consolidation of the following limited partnerships: Capital & Counties
CGP, Capco CGP 2012 LP, CG Investments 2016 LP, EC Properties LP, Solum Group Holdings LP and The Empress State
Limited Partnership. The members of these qualifying partnerships have taken advantage of 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

Subsidiaries are fully consolidated from the date on which the Group has control; it is exposed, or has rights, to variable returns
from its involvement with an entity and has the ability to affect those returns through its power over an entity. Subsidiaries cease
to be consolidated from the date this control is lost.

Non-controlling interests are recognised on the basis of their proportionate share in the recognised amounts of a subsidiary's
identifiable net assets. On the balance sheet non-controlling interests are presented separately from the equity of the owners of
the Parent. Profit or loss and total comprehensive income for the period attributable to non-controlling interests are presented
separately in the income statement and the statement of comprehensive income.

Critical accounting judgements and key sources of estimation and uncertainty

The preparation of consolidated financial statements in accordance with IFRS requires the Directors to make judgements,
estimates and assumptions that affect the reported amounts of assets, liabilities, equity, income and expenses from sources
not readily apparent. Although these estimates and assumptions are based on management's best knowledge of the amount,
historical experiences and other factors, actual results ultimately may differ from those estimates. The estimates and underlying
assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the
estimate is revised if the revision affects only that period.

Significant area of estimation and uncertainty is:

Property valuation: 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 note 12 'Property Portfolio'. 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.

The key areas of accounting judgement are:

Property classification: Judgement is required in the classification of property between investment, development, trading and
owner occupied. Management considers each property separately and reviews factors including the long term intention for the
property, in determining if trading, and the level of ancillary income, in determining if owner occupied, to ensure the appropriate classification.

Revenue recognition: In making its judgement over revenue recognition for property transactions, management considered the
detailed criteria for the recognition of revenue set out in IAS 18 'Revenue' and, in particular, whether the Group had transferred
to the buyer the significant risks and rewards of ownership of the assets being disposed. Management also consider the
appropriate accounting treatment of tenant lease incentives.

Other less significant judgements and sources of estimation and uncertainty relate to provisions, share-based payment,
contingent liabilities and pensions.

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.

Revenue recognition

Rent receivable consists 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.

Tenant 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. Revenue arising from the sale of property under construction is generally recognised when both
contracts have been exchanged and the building work is physically complete.

Other income includes management fees charged to joint ventures for services associated with the management of properties
and other general expenses as defined by management agreements.

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

Non-underlying items

Non-underlying 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. Items deemed as non-underlying are impairment
charges, net valuation gain/losses (including profits/losses on disposal), net refinancing charges, costs of termination of
derivative financial instruments and non-recurring costs and income.

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.

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 substantially 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 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 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 respectively.

For tax purposes, 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.

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.

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 tenant lease incentives
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 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 and development 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. Investment and development properties cease to be recognised as investment
and development 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.

Disposals are recognised on completion. Gains or losses arising are recognised in the income statement. The gain on disposal
is determined as the difference between the net sales proceeds and the carrying amount of the asset at the commencement of
the accounting period plus capital expenditure in the period.

A property ceases to be recognised as investment and development 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.

When the use of a property changes from trading property to investment and development property, the property is transferred
at fair value with any resulting gain recognised in the income statement.

Trading property

Trading property comprises those properties that in the Directors' view are not held for long-term rental income or 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 constructed, acquired, or if transferred from investment and development 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. 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 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.

Investment in joint ventures

Joint ventures are those entities over whose activities the Group has joint control, established by contractual agreement.

Investments in joint ventures are accounted for using the equity method. On initial recognition the investment is recognised at
cost, and the carrying amount is subsequently increased or decreased to recognise the Group's share of the profit or loss of the
joint venture after the date of acquisition. Goodwill, if any, on acquisition is included in the carrying amount of the investment.

The Group's investment in joint ventures is presented separately on the balance sheet and the Group's share of the joint
venture's post-tax profit or loss for the period is also presented separately in the income statement.

Where there is an indication that the Group's investment in joint ventures may be impaired the Group evaluates the recoverable
amount of its investment, being the higher of the joint venture's fair value less costs to sell and value in use. If the recoverable
amount is lower than the carrying value an impairment loss is recognised in the income statement.

If the Group's share of losses in a joint venture equals or exceeds its investment in the joint venture, the Group does not
recognise further losses, unless it has legal or constructive obligations to make payments on behalf of the joint venture.

Available-for-sale 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.

Derivative financial instruments

The Group uses non-trading derivative financial instruments to manage exposure to interest rate risk. They are initially
recognised on the trade date at fair value and subsequently remeasured at fair value based on market price.

The method of recognising the resulting gain or loss depends on whether the derivative is designated as a hedging instrument,
and if so, the nature of the item being hedged.

Instruments that have not been designated as qualifying for hedge accounting are classified as held for trading. Changes in fair
value of these instruments are recognised directly in the income statement.

The Group designates certain derivatives as hedges of a highly probable forecast transaction (cash flow hedge). For hedging
instruments, the Group documents at the inception of the transaction the relationship between hedging instruments and
hedged items, as well as its risk management objectives and strategy for undertaking hedging transactions. The Group also
documents its assessment, both at hedge inception and on an on-going basis, of whether the derivatives that are used in
hedging transactions are highly effective in offsetting changes in cash flows of hedged items.

The effective portion of changes in the fair value of derivatives that are designated and qualify as cash flow hedges is
recognised in other comprehensive income. The gain or loss relating to the ineffective portion is recognised immediately in the
income statement. Amounts accumulated in equity are reclassified to profit or loss in the periods when the hedged item affects
profit or loss.

When a hedging instrument expires or is sold, or when a hedge no longer meets the criteria for hedge accounting, any
cumulative gain or loss existing in equity at that time remains in equity and is recognised when the forecast transaction is
ultimately recognised in the income statement. When a forecast transaction is no longer expected to occur, the cumulative gain
or loss that was reported in equity is immediately transferred 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.

Trade and other payables

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

Deposits

Property deposits and on account receipts are held within trade and other payables.

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 ordinarily recognised initially at their net proceeds as an approximation of fair value.

If the transaction price is not an approximation of fair value at initial recognition, the Group determines the fair value as
evidenced by a quoted price in an active market for an identical instrument or based on a valuation technique that uses data
from observable markets. Where equity holders of the Group are party to the transaction the difference between the net
proceeds and fair value is recognised within equity.

Borrowings are subsequently carried at amortised cost. Any transaction costs, premiums or discounts are capitalised and
recognised over the contractual life of the loan using the effective interest rate method; or on a straight line basis where it is
impractical to do so.

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. 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.

Share capital continued
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.

For management and reporting purposes the Group is organised into four divisions:

-   Covent Garden;

-   Earls Court Properties represents the Group's interests in the Earls Court area, comprising properties held in ECPL, Lillie
    Square, the Empress State Building and a number of smaller properties in the Earls Court area;

-   Venues comprises the Olympia London property assets and Maclise Road; and

-   Other comprises Solum, the discontinued activity of The Great Capital Partnership, the Group's residual China
    investments, other head office companies and investments, including the payment of internal rent.

Management information, previously reported on a proportionally consolidated basis until December 2015, is now reported to
the chief operating decision maker on a Group share basis. Consequently the comparative period has been re-presented in line
with reporting requirements. Outlined below is the Group share by segment:

Segment                                                                                                                                         Group share
Covent Garden                                                                                                                                          100%
Earls Court Properties
ECPL                                                                                                                                                    63%
Lillie Square                                                                                                                                           50%
Empress State                                                                                                                                          100%
Other                                                                                                                                                  100%
Venues                                                                                                                                                 100%
Other
Solum                                                                                                                                                   50%
GCP                                                                                                                                                     50%
Other                                                                                                                                                  100%

Segmental reporting has been presented in line with management information and therefore consolidation adjustments are
presented to reconcile segmental performance and position to the IFRS total.

The Group's operating segments derive their revenue primarily from rental income from lessees, with the exception of Venues
which derives revenue from licence fees from the letting of space.

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

Reportable segments
                                                                                                2016
                                                     Covent       Earls Court                                        Group     Consolidation           IFRS
                                                     Garden        Properties          Venues          Other         total       adjustments          total
                                                       GBPm              GBPm            GBPm           GBPm          GBPm              GBPm           GBPm
Revenue(1)                                             71.4              20.4            33.3            2.3         127.4                 -          127.4
Rent receivable                                        49.4              17.7            33.3          (0.4)         100.0               0.8          100.8
Service charge income                                   3.2                 -               -              -           3.2                 -            3.2
Rental income                                          52.6              17.7            33.3          (0.4)         103.2               0.8          104.0
Rental expenses(2)                                   (11.1)             (0.9)           (9.7)              -        (21.7)             (0.3)         (22.0)
Net rental income/(expense)                            41.5              16.8            23.6          (0.4)          81.5               0.5           82.0
Profit/(loss) on sale of trading property               5.6             (1.2)               -              -           4.4               1.2            5.6
Other income                                              -                 -               -            2.7           2.7               1.9            4.6
Gain/(loss) on revaluation and sale of 
investment and development property                   126.1           (247.2)           (3.8)            0.1       (124.8)           (110.2)        (235.0)
Write down of trading property                            -             (0.4)               -              -         (0.4)               0.4              -
Profit on sale of available-for-sale  
investments                                               -                 -               -            0.4           0.4                 -            0.4
Impairment of other receivables                           -                 -               -              -             -            (14.8)         (14.8)
Other costs                                               -             (5.0)               -              -         (5.0)                 -          (5.0)
Segment result                                        173.2           (237.0)            19.8            2.8        (41.2)           (121.0)        (162.2)
Unallocated costs
Administration expenses                                                                                             (50.5)             (0.1)         (50.6)
Operating loss                                                                                                      (91.7)           (121.1)        (212.8)
Net finance costs(3)                                                                                                (37.8)              10.6        (27.2))
Share of post-tax loss from joint
ventures                                                                                                                 -             (0.3)          (0.3)
Loss before tax                                                                                                    (129.5)           (110.8)        (240.3)
Taxation                                                                                                             10.9                5.9           16.8
Loss for the year                                                                                                  (118.6)           (104.9)        (223.5)
Loss attributable to: 
Owners of the Parent                                                                                               (118.6)                 -        (118.6)
Non-controlling interest                                                                                                 -           (104.9)        (104.9)
Summary balance sheet
Total segment assets(4)                             2,294.0           1,213.2           313.0           35.3       3,855.5             252.6        4,108.1
Total segment liabilities(4)                        (724.8)           (240.3)          (83.1)         (12.8)     (1,061.0)             115.6        (945.4)
Segmental net assets                                1,569.2             972.9           229.9           22.5       2,794.5             368.2        3,162.7
Unallocated assets(3)                                                                                                 10.5                 -           10.5
Net assets                                                                                                         2,805.0             368.2        3,173.2
Other segment items:
Depreciation                                          (0.2)             (1.3)           (0.4)          (0.3)         (2.2)               0.4          (1.8)
Capital expenditure                                 (153.9)            (80.2)           (1.5)              -       (235.6)              31.1        (204.5)

(1) Total revenue of GBP127.4 million comprises rental income of GBP104.0 million, proceeds from sale of trading property of GBP18.8 million and other income of GBP4.6 million.
(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 segmental assets and total segmental liabilities exclude loans between and investments in Group undertakings.

Reportable segments
                                                                                        Re-presented 2015
                                                       Covent       Earls Court                                     Group     Consolidation            IFRS
                                                       Garden        Properties      Venues         Other           total       adjustments           total
                                                         GBPm              GBPm        GBPm          GBPm            GBPm              GBPm            GBPm
Revenue(1)                                               61.3              18.2        31.3           2.1           112.9               2.0           114.9
Rent receivable                                          46.4              18.1        31.3         (0.4)            95.4               0.6            96.0
Service charge income                                     3.7                 -           -             -             3.7                 -             3.7
Rental income                                            50.1              18.1        31.3         (0.4)            99.1               0.6            99.7
Rental expenses(2)                                     (11.3)             (0.8)      (12.0)         (0.1)          (24.2)             (0.2)          (24.4)
Net rental income/(expense)                              38.8              17.3        19.3         (0.5)            74.9               0.4            75.3
Profit/(loss) on sale of trading property                 3.5             (1.5)          -              -             2.0               1.5             3.5
Other income                                                -               0.1           -           2.5             2.6               1.4             4.0
Gain/(loss) on revaluation and sale of
investment and development property                     262.9             100.9        58.4         (0.4)           421.8              32.1           453.9
Write back of trading property                              -               0.2           -             -             0.2             (0.2)               -
Loss on sale of available-for-sale   
investments                                                 -                 -           -         (0.2)           (0.2)                 -           (0.2)
Impairment of other receivables                             -                 -           -             -               -            (12.2)          (12.2)
Other costs                                                 -                 -           -         (0.2)           (0.2)                 -           (0.2)
Segment result                                          305.2             117.0        77.7           1.2           501.1              23.0           524.1
Unallocated costs 
Administration expenses                                                                                            (52.5)               0.4          (52.1)
Operating profit                                                                                                    448.6              23.4           472.0
Net finance costs(3)                                                                                               (20.6)               9.2          (11.4)
Share of post-tax loss from joint 
ventures                                                                                                                -             (0.7)           (0.7)
Profit before tax                                                                                                   428.0              31.9           459.9
Taxation                                                                                                              3.1             (5.8)           (2.7)
Profit for the year                                                                                                 431.1              26.1           457.2
Profit attributable to:    
Owners of the Parent                                                                                                431.1                 -           431.1
Non-controlling interest                                                                                                -              26.1            26.1
Summary balance sheet
Total segment assets(4)                               2,010.4           1,360.6       314.7          39.2         3,724.9             395.8         4,120.7
Total segment liabilities(4)                          (569.6)           (193.7)      (36.6)        (22.6)         (822.5)              73.0         (749.5)
Segmental net assets                                  1,440.8           1,166.9       278.1          16.6         2,902.4             468.8         3,371.2
Unallocated assets(3)                                                                                                31.6                 -            31.6
Net assets                                                                                                        2,934.0             468.8         3,402.8
Other segment items:
Depreciation                                            (0.2)                 -       (0.2)         (0.1)           (0.5)                 -           (0.5)
Capital expenditure                                   (110.8)           (360.1)       (4.0)         (0.3)         (475.2)           (142.7)         (617.9)

(1) Total revenue of GBP114.9 million comprises rental income of GBP99.7 million, proceeds from sale of trading property of GBP11.2 million and other 
    income of GBP4.0 million.
(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 segmental assets and total segmental liabilities exclude loans between and investments in Group undertakings.

3 PROFIT ON SALE OF TRADING PROPERTY
                                                                                                                                             2016      2015
                                                                                                                                             GBPm      GBPm
Proceeds from the sale of trading property                                                                                                   18.8      11.2
Cost of sale of trading property                                                                                                           (12.9)     (7.5)
Agent, selling and marketing fees                                                                                                           (0.3)     (0.2)
Profit on sale of trading property                                                                                                            5.6       3.5
                 
4 (LOSS)/GAIN ON REVALUATION AND SALE OF INVESTMENT AND DEVELOPMENT PROPERTY                 
                                                                                                                                             2016      2015
                                                                                                                                             GBPm      GBPm
(Loss)/gain on revaluation of investment and development property                                                                         (235.2)     453.9
Gain on sale of investment and development property                                                                                           0.2         -
(Loss)/gain on revaluation and sale of investment and development property                                                                (235.0)     453.9
                 
5 IMPAIRMENT OF OTHER RECEIVABLES                 
                                                                                                                                             2016      2015
                                                                                                                                             GBPm      GBPm
Impairment of other receivables                                                                                                              14.8      12.2

Following an impairment review of amounts receivable from joint ventures by the Group, an impairment of GBP14.8 million has
been recognised (2015: GBP12.2 million). The impairment was calculated with reference to the Group's share of the cumulative
losses in the Lillie Square joint venture.

The carrying value of the investment is GBPnil (2015: GBPnil) in accordance with IAS 28 'Investment in Associates and Joint
Ventures' ("IAS 28"). Refer to note 13 'Investment in Joint Ventures'.

6 OTHER COSTS

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 and the disposal
of a 50 per cent limited partnership interest in Lillie Square LP. During 2016 additional costs associated with the transaction
have been incurred resulting in a loss of GBP5.0 million (2015: GBPnil). Other costs for 2015 relate to loss on sale of loan notes of
GBP0.2 million.

7 FINANCE INCOME
                                                                                                                                          2016         2015
                                                                                                                                          GBPm         GBPm
Finance income:             
On loan notes                                                                                                                                -          0.2
On deposits and other                                                                                                                      0.3          0.5
Finance income                                                                                                                             0.3          0.7         
Other finance income:             
On deep discount bonds                                                                                                                    10.5          9.3
Other finance income(1)                                                                                                                   10.5          9.3

(1) Excluded from the calculation of underlying earnings as deep discount bonds eliminate on a Group share basis.                     
             
8 FINANCE COSTS             
                                                                                                                                          2016         2015
                                                                                                                                          GBPm         GBPm
Finance costs:                   
On bank overdrafts, loans and other                                                                                                       20.5         21.0
On obligations under finance leases                                                                                                        0.5          0.5
Gross finance costs                                                                                                                       21.0         21.5
Interest capitalised on property under development                                                                                       (1.4)        (0.7)
Finance costs                                                                                                                             19.6         20.8
Other finance costs:
Costs of termination of bank loans and other                                                                                               5.3            -
Other finance costs(1)                                                                                                                     5.3            -

(1) Non-recurring finance costs 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 2.7 per cent (2015: 3.3 per
cent) applied to the cost of property under development during the year.

9 TAXATION
                                                                                                                                          2016         2015
                                                                                                                                          GBPm         GBPm
Current income tax:                
Current income tax charge excluding non-underlying items                                                                                   1.4          1.6
Current income tax on profits                                                                                                              1.4          1.6
Deferred income tax:                
On accelerated capital allowances                                                                                                          0.8          0.1
On fair value of investment and development property                                                                                    (15.6)          3.8
On fair value of derivative financial instruments                                                                                        (2.4)        (0.1)
On Group losses                                                                                                                          (5.6)          0.5
On other temporary differences                                                                                                             4.8        (0.8)
Deferred income tax on profits                                                                                                          (18.0)          3.5
Adjustments in respect of previous years - current income tax                                                                            (0.4)        (3.8)
Adjustments in respect of previous years - deferred income tax                                                                             0.2          1.4
Total income tax (credit)/charge reported in the consolidated income statement                                                          (16.8)          2.7

Factors affecting the tax charge for the year

The tax assessed for the year is GBP16.8 million which reflects a rate lower than the standard rate of corporation tax in the United
Kingdom ("UK"). The differences are explained below:
                                                                                                                                          2016         2015
                                                                                                                                          GBPm         GBPm
(Loss)/profit before tax                                                                                                               (240.3)        459.9
(Loss)/profit on ordinary activities multiplied by the standard rate in the UK of 20.0% (2015: 20.25%)                                  (48.1)         93.1
Unrecognised deferred income tax on revaluation losses/(gains)                                                                            32.4       (74.3)
Adjustments in respect of previous years                                                                                                 (0.3)        (2.4)
Expenses disallowed                                                                                                                        1.5          1.7
Other temporary differences                                                                                                              (1.4)       (12.9)
Reduction in deferred income tax following change in corporation tax rate                                                                (0.9)        (2.5)
Total income tax (credit)/charge reported in the consolidated income statement                                                          (16.8)          2.7

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 in addition to movement on the cash flow hedge. Tax arising on
items recognised directly in equity is reflected in equity. This includes deferred tax on an element of the share-based payment.

Finance Act 2015 sets the main rate of UK corporation tax at 20 per cent with effect on 1 April 2015. The enactment of Finance
(No. 2) Act 2015 and Finance Act 2016 reduces the main rate of corporation tax to 19 per cent from April 2017 and 17 per cent
from April 2020.

10 DIVIDENDS
                                                                                                                                          2016         2015
                                                                                                                                          GBPm         GBPm
Ordinary shares      
Prior year final dividend of 1.0p per share (2015: 1.0p)                                                                                   8.4          8.4
Interim dividend of 0.5p per share (2015: 0.5p)                                                                                            4.3          4.2
Dividend expense                                                                                                                          12.7         12.6
Shares issued in lieu of cash(1)                                                                                                         (4.3)        (4.3)
Adjustment for bonus issue(2)                                                                                                            (0.9)        (0.6)
Cash dividends paid                                                                                                                        7.5          7.7
Proposed final dividend of 1.0p per share (2015: 1.0p)                                                                                     8.5          8.4

(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.
(2) 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.

11 EARNINGS PER SHARE AND NET ASSETS PER SHARE

(a) Earnings per share
                                                                                    2016                                           2015
                                                                                                      (Loss)/
                                                                      (Loss)/                        earnings                                      Earnings
                                                                     earnings        Shares(1)      per share        Earnings      Shares(1)      per share
                                                                         GBPm          million        (pence)            GBPm        million        (pence)
Basic (loss)/earnings                                                 (118.6)            844.4         (14.0)           431.1          841.1           51.3
Dilutive effect of contingently issuable share option 
awards                                                                      -              0.7                              -            2.1
Dilutive effect of contingently issuable deferred share  
awards                                                                      -                -                              -            0.8
Dilutive effect of contingently issuable matching nil cost  
options awards                                                              -              0.1                              -            1.3
Dilutive effect of deferred bonus share option awards                       -              0.7                              -            1.3
Diluted (loss)/earnings                                               (118.6)            845.9         (14.0)           431.1          846.6           50.9
Basic (loss)/earnings                                                 (118.6)                                           431.1
Group adjustments:
Profit on sale of trading property                                      (5.6)                                           (3.5)
Loss/(gain) on revaluation and sale of investment and
development property                                                    235.0                                         (453.9)
Loss on sale of loan notes                                                  -                                             0.2
Other finance costs                                                       5.3                                               -
Change in fair value of derivative financial instruments                 13.1                                             0.6
Deferred tax adjustments                                               (17.2)                                             3.8
Non-controlling interest in respect of the adjustments                (104.6)                                            26.4
Joint venture adjustments:
Loss on sale of trading property(2)                                       1.2                                             1.6
Loss/(gain) on revaluation of investment and
development property                                                      0.1                                           (0.1)
Write down/(back) of trading property                                     0.4                                           (0.2)
EPRA earnings(3)                                                          9.1            844.4            1.1             6.0          841.1            0.7
(Profit)/loss on sale of available-for-sale investments                 (0.4)                                             0.2    
Other costs                                                               5.0                                               -    
Deferred tax adjustments                                                (1.9)                                             1.7    
Joint venture adjustment:    
Other income                                                                -                                           (0.1)    
Underlying earnings(3)                                                   11.8            844.4            1.4             7.8          841.1            0.9

(1) Weighted average number of shares in issue has been adjusted by 0.3 million (2015: 0.1 million) for the issue of bonus shares in connection with the scrip
    dividend scheme.
(2) Loss on sale of trading property relates to Lillie Square sales and includes GBP1.4 million (2015: GBP1.6 million) of marketing and selling fees on a Group share basis.
    Marketing fees include costs for units that have not yet completed.
(3) EPRA earnings and underlying earnings have been reported on a Group share basis.

Headline earnings per share is calculated in accordance with Circular 2/2015 issued by the South African Institute of Chartered
Accountants ("SAICA"), a requirement of the Group's Johannesburg Stock Exchange ("JSE") listing. This measure is not a
requirement of IFRS.

                                                                                      2016                                          2015
                                                                                                        (Loss)/
                                                                        (Loss)/                        earnings                                    Earnings
                                                                       earnings        Shares(1)      per share        Earnings    Shares(1)      per share
                                                                           GBPm          million        (pence)            GBPm      million        (pence)


Basic (loss)/earnings                                                   (118.6)            844.4         (14.0)           431.1        841.1           51.3
Group adjustments:
Loss/(gain) on revaluation and sale of investment
and development property                                                  235.0                                         (453.9)
(Profit)/loss on sale of available-for-sale investments                   (0.4)                                             0.2
Loss on sale of loan notes                                                    -                                             0.2
Deferred tax adjustments                                                 (15.6)                                             3.8
Non-controlling interest in respect of the Group  
adjustments                                                             (104.6)                                            26.4
Joint venture adjustment:
Loss/(gain) on revaluation of investment and
development property                                                        0.1                                           (0.1)
Headline (loss)/earnings                                                  (4.1)            844.4          (0.5)             7.7        841.1            0.9
Dilutive effect of contingently issuable share option
awards                                                                        -              0.7                              -          2.1
Dilutive effect of contingently issuable deferred share 
awards                                                                        -                -                              -          0.8
Dilutive effect of contingently issuable matching nil cost 
options awards                                                                -              0.1                              -          1.3
Dilutive effect of deferred bonus share option awards                         -              0.7                              -          1.3
Diluted headline (loss)/earnings                                          (4.1)            845.9          (0.5)             7.7        846.6            0.9

(1) Weighted average number of shares in issue has been adjusted by 0.3 million (2015: 0.1 million) for the issue of bonus shares in connection with the scrip
    dividend scheme.

(b) Net assets per share
                                                                                               2016                                2015
                                                                                        Net                        NAV        Net                       NAV
                                                                                     assets      Shares      per share     assets       Shares    per share
                                                                                       GBPm     million        (pence)       GBPm      million      (pence)
Net assets attributable to owners of the Parent                                     2,805.0       846.1          331.5    2,934.0        842.0        348.5
Effect of dilution on exercise of contingently issuable
share option awards                                                                       -         0.7                         -          2.3
Effect of dilution on vesting of contingently issuable 
deferred share awards                                                                     -           -                         -          0.8
Effect of dilution on exercise of contingently issuable 
matching nil cost option awards                                                           -         0.1                         -          1.3
Effect of dilution on exercise of deferred bonus share 
option awards                                                                             -         0.7                         -          1.3
Diluted NAV                                                                         2,805.0       847.6          330.9    2,934.0        847.7        346.1
Group adjustments:
Fair value of derivative financial instruments                                         13.7                                   2.4
Unrecognised surplus on trading property - Group                                        1.5                                   8.3
Unrecognised surplus on trading property - Joint venture                               46.6                                  91.6
Deferred tax adjustments                                                               11.5                                  28.9
Non-controlling interests in respect of the adjustments                                   -                                 (5.8)
EPRA NAV                                                                            2,878.3       847.6          339.6    3,059.4        847.7        360.9
Fair value of derivative financial instruments                                       (13.7)                                 (2.4)   
Excess fair value of debt over carrying value                                        (12.4)                                (12.1)   
Deferred tax adjustments                                                             (11.5)                                (28.9)   
EPRA NNNAV                                                                          2,840.7       847.6          335.1    3,016.0        847.7        355.8

12 PROPERTY PORTFOLIO

(a) Investment and development property
                                                                                     Property portfolio                                    Tenure
                                                      Covent      Earls Court
                                                      Garden       Properties           Venues            Other      Total         Freehold       Leasehold
                                                        GBPm             GBPm             GBPm             GBPm       GBPm             GBPm            GBPm
At 1 January 2015                                    1,576.7            970.6            232.6              4.5    2,784.4          1,469.4         1,315.0
Reclassification                                           -                -                -                -          -           (32.0)            32.0
Additions from acquisitions                             50.0            449.2                -                -      499.2             85.6           413.6
Additions from subsequent expenditure                   59.9             53.6              4.0              0.3      117.8             48.5            69.3
Gain/(loss) on valuation(1)                            262.9            133.0             58.4            (0.4)      453.9            225.4           228.5
At 31 December 2015                                  1,949.5          1,606.4            295.0              4.4    3,855.3          1,796.9         2,058.4
Additions from acquisitions                             85.2              4.6                -                -       89.8             75.6            14.2
Additions from subsequent expenditure                   68.4             44.5              1.5                -      114.4             53.0            61.4
Disposals                                                  -                -                -            (4.4)      (4.4)            (4.4)               -
Gain/(loss) on valuation(1)                            126.1          (357.5)            (3.8)                -    (235.2)           (45.7)         (189.5)
At 31 December 2016                                  2,229.2          1,298.0            292.7                -    3,819.9          1,875.4         1,944.5

(b) Trading property
                                                                                        Property portfolio                                   Tenure
                                                         Covent      Earls Court
                                                         Garden       Properties          Venues         Other        Total        Freehold       Leasehold
                                                           GBPm             GBPm            GBPm          GBPm         GBPm            GBPm            GBPm
At 1 January 2015                                          22.1                -               -             -         22.1            22.1               -
Additions from subsequent expenditure                       0.9                -               -             -          0.9             0.9               -
Disposals                                                 (7.5)                -               -             -        (7.5)           (7.5)               -
At 31 December 2015(2)                                     15.5                -               -             -         15.5            15.5               -
Additions from subsequent expenditure                       0.3                -               -             -          0.3             0.3               -
Disposals                                                (12.9)                -               -             -       (12.9)          (12.9)               -
At 31 December 2016(2)                                      2.9                -               -             -          2.9             2.9               -

(1) Loss on valuation of GBP235.2 million (2015: gain GBP453.9 million) is recognised in the consolidated income statement within (loss)/gain on revaluation and sale of
    investment and development property. This loss is unrealised and relates to assets held at the end of the year.
(2) The value of trading property carried at net realisable value was GBPnil (2015: GBPnil).

(c) Market value reconciliation of total property
                                                                             Covent          Earls Court
                                                                             Garden           Properties          Venues          Other               Total
                                                                               GBPm                 GBPm            GBPm           GBPm                GBPm
Carrying value of investment and development
property at 31 December 2016                                                2,229.2              1,298.0           292.7              -             3,819.9
Carrying value of trading property at 31 December 2016                          2.9                    -               -              -                 2.9
Carrying value of investment, development
and trading property at 31 December 2016(1)                                 2,232.1              1,298.0           292.7              -             3,822.8
Adjustment in respect of fixed head leases                                    (4.1)                    -               -              -               (4.1)
Adjustment in respect of tenant lease incentives                               45.3                    -               -              -                45.3
Unrecognised surplus on trading property(2)                                     1.5                    -               -              -                 1.5
Market value of investment, development
and trading property at 31 December 2016                                    2,274.8              1,298.0           292.7              -             3,865.5
Joint ventures:
Carrying value of joint venture investment, development
and trading property at 31 December 2016                                          -                176.0               -              -               176.0
Unrecognised surplus on joint venture trading property(2)                         -                 46.6               -              -                46.6
                                                                            2,274.8              1,520.6           292.7              -             4,088.1
Non-controlling interest adjustment:
Market value of non-controlling interest in investment,
development and trading property at 31 December 2016                              -              (378.5)               -              -             (378.5)
Market value of investment, development and trading
property on a Group share basis at 31 December 2016                         2,274.8              1,142.1           292.7              -             3,709.6

                                                                            Covent           Earls Court
                                                                            Garden            Properties          Venues          Other               Total
                                                                              GBPm                  GBPm            GBPm           GBPm                GBPm
Carrying value of investment and development
property at 31 December 2015                                               1,949.5               1,606.4           295.0            4.4             3,855.3
Carrying value of trading property at 31 December 2015                        15.5                     -               -              -                15.5
Carrying value of investment, development 
and trading property at 31 December 2015(1)                                1,965.0               1,606.4           295.0            4.4             3,870.8
Adjustment in respect of fixed head leases                                   (4.1)                     -               -              -               (4.1)
Adjustment in respect of tenant lease incentives                              36.0                     -               -              -                36.0
Unrecognised surplus on trading property(2)                                    8.3                     -               -              -                 8.3
Market value of investment, development
and trading property at 31 December 2015                                   2,005.2               1,606.4           295.0            4.4             3,911.0
Joint ventures:
Carrying value of joint venture investment, development  
and trading property at 31 December 2015                                         -                 130.8               -              -               130.8
Unrecognised surplus on joint venture trading property(2)                        -                  91.6               -              -                91.6
                                                                           2,005.2               1,828.8           295.0            4.4             4,133.4
Non-controlling interest adjustment:
Market value of non-controlling interest in investment,
development and trading property at 31 December 2015                             -               (471.6)               -              -             (471.6)
Market value of investment, development and trading
property on a Group share basis at 31 December 2015                        2,005.2               1,357.2           295.0            4.4             3,661.8

(1) Included within investment and development property is GBP1.4 million (2015: GBP0.7 million) of interest capitalised during the year on developments in progress.
(2) The unrecognised 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 2016, the Group was contractually committed to GBP149.2 million (2015: GBP162.5 million) of future expenditure for
the purchase, construction, development and enhancement of investment, development and trading property. Refer to note 22
'Capital Commitments' for further information on capital commitments.

The fair value of the Group's investment, development and trading property at 31 December 2016 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 property portfolio. 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 Executive Directors, on behalf of the Board, appoint 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 Executive Directors 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 re-gear costs, planning risk and sales prices based on
known market transactions for similar properties or properties similar to those contemplated for development.

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. In respect of development valuations, the valuer ordinarily considers the gross development value of the
completed scheme based upon assumptions of capital values, 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.

Most notably, within Earls Court Properties, the Empress State Building has been valued on the basis of its development
potential as a residential led scheme. The property is currently used as an office space, 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 also been valued on the basis of their development potential, principally for the
conversion to residential use or for improving the configuration of retail units.

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 is required or when a credit facility is in place.
These restrictions are factored into the property's valuation by the external valuer. Refer to disclosures surrounding property
risks on page 20.

13 INVESTMENT IN JOINT VENTURES

Investment in joint ventures is measured using the equity method. All joint ventures are held with other joint venture investors
on a 50:50 basis.

At 31 December 2016, joint ventures comprise the Lillie Square joint venture ("LSJV"), Solum Developments ("Solum") and The
Great Capital Partnership ("GCP") which is accounted for as a discontinued operation.

LSJV

LSJV was established as a joint venture arrangement with the Kwok Family Interests ("KFI"), in August 2012. The joint venture
was established to own, manage and develop land interests at Lillie Square. LSJV comprises Lillie Square LP, Lillie Square GP
Limited, acting as general partner to the partnership, and its subsidiaries. All major decisions regarding LSJV are taken by the
Board of Lillie Square GP Limited, through which the Group shares strategic control.

The summarised income statement and balance sheet of LSJV are presented below.
                                                                                                                                    2016               2015
LSJV                                                                                                                                GBPm               GBPm
Summarised income statement
Revenue                                                                                                                              5.5                0.6
Net rental income                                                                                                                  (0.2)                0.5
(Loss)/gain on revaluation of investment and development property                                                                  (0.1)                0.2
Proceeds from the sale of trading property                                                                                           5.4                  -
Cost of sale of trading property                                                                                                   (5.1)                  -
Agent, selling and marketing fees                                                                                                  (2.7)              (3.1)
Write (down)/back of trading property                                                                                              (0.8)                0.5
Administration expenses                                                                                                            (4.8)              (3.8)
Finance costs(1)                                                                                                                  (21.2)             (18.7)
Other costs                                                                                                                        (0.1)                  -
Loss for the year                                                                                                                 (29.6)             (24.4)

(1) Finance costs includes GBP20.9 million (2015: GBP18.7 million) relating to the amortisation of deep discount bonds that were issued by LSJV to the Group and KFI.
    The bonds are redeemable at their nominal value of GBP263.4 million on 24 August 2019. The discount applied is unwound over the period to maturity using the
    effective interest rate. Finance income receivable to the Group of GBP10.5 million (2015: GBP9.3 million) is recognised in the consolidated income statement within
    other finance income.

                                                                                                                                   2016                2015
LSJV                                                                                                                               GBPm                GBPm
Summarised balance sheet  
Investment and development property                                                                                                 3.1                 3.2
Other non-current assets                                                                                                            2.1                 3.0
Trading property                                                                                                                  349.0               258.5
Cash and cash equivalents(1)                                                                                                       74.2                67.2
Other current assets                                                                                                                5.8                 0.2
Borrowings                                                                                                                      (155.1)              (87.7)
Other non-current liabilities(2)                                                                                                (195.4)             (174.5)
Amounts payable to joint venture partners(3)                                                                                    (102.1)              (75.2)
Other current liabilities(1)                                                                                                     (74.2)              (57.7)
Net liabilities                                                                                                                  (92.6)              (63.0)
Capital commitments                                                                                                                36.4                97.2
Carrying value of investment, development and trading property                                                                    352.1               261.7
Unrecognised surplus on trading property(4)                                                                                        93.2               183.2
Market value of investment, development and trading property(4)                                                                   445.3               444.9

(1) Includes restricted cash and cash equivalents of GBP59.7 million (2015: GBP52.3 million) relating to amounts received as property deposits that will not be available for
    use by LSJV until completion of building work. There is a corresponding liability of GBP59.7 million (2015: GBP52.3 million) within other current liabilities.
(2) Other non-current liabilities relate to deep discount bonds. Amounts receivable by the Group of GBP97.7 million (2015: GBP87.2 million) are recognised on the
    consolidated balance sheet within non-current trade and other receivables.
(3) Amounts payable to joint venture partners relate to working capital funding advanced by the Group and KFI. Recoverable amounts receivable of GBP7.0 million
    (2015: GBP10.0 million) by the Group are recognised on the consolidated balance sheet within current trade and other receivables.
(4) The unrecognised surplus on trading property and the market value of LSJV's property portfolio are shown for informational purposes only and are not a
    requirement of IFRS. Trading property continues to be measured at the lower of cost and net realisable value.

Solum

On 29 June 2015, the Group acquired a 50 per cent interest in Solum, a joint venture arrangement with Network Rail
Infrastructure Limited ("NRIL"). Total acquisition costs were GBP14.5 million, GBP2.0 million of which is contingent on achieving
consent to develop specific railway sites with NRIL. The joint venture will explore opportunities for future redevelopments on
and around significant railway station sites in London.

Solum comprises Solum Developments Limited Partnership and Solum Developments (GP) Limited, acting as general partner
to the partnership. All major decisions regarding Solum are taken by the Board of Solum Developments (GP) Limited, through
which the Group shares strategic control.

The summarised income statement and balance sheet of Solum are presented below.
                                                                                                                                     2016              2015
Solum                                                                                                                                GBPm              GBPm
Summarised income statement
Administration expenses                                                                                                             (0.6)             (1.4)
Loss for the year                                                                                                                   (0.6)             (1.4)

                                                                                                                                     2016              2015
Solum                                                                                                                                GBPm              GBPm
Summarised balance sheet
Trade and other receivables                                                                                                           0.8                 -
Cash and cash equivalents                                                                                                             0.5               1.6
Other current liabilities                                                                                                           (0.5)             (1.1)
Net assets                                                                                                                            0.8               0.5

Reconciliation of summarised financial information:

The table below reconciles the summarised joint venture financial information previously presented to the carrying value of
investment in joint ventures as presented on the consolidated balance sheet.

                                                                                      GCP                 LSJV                 Solum                  Total
                                                                                     GBPm                 GBPm                  GBPm     
Net assets/(liabilities) of joint ventures at 31 December 2015                        0.1               (63.0)                   0.5                 (62.4)
Elimination of joint venture partners' interest                                         -                 31.5                 (0.3)                   31.2
Cumulative losses restricted(1)                                                         -                 31.5                     -                   31.5
Goodwill on acquisition of joint venture(2)                                             -                    -                  14.5                   14.5
Carrying value at 31 December 2015                                                    0.1                    -                  14.7                   14.8
Net assets/(liabilities) of joint ventures at 31 December 2016                        0.1               (92.6)                   0.8                 (91.7)
Elimination of joint venture partners' interest                                         -                 46.3                 (0.4)                   45.9
Cumulative losses restricted(1)                                                         -                 46.3                     -                   46.3
Goodwill on acquisition of joint venture(2)                                             -                    -                  14.5                   14.5
Carrying value at 31 December 2016                                                    0.1                    -                  14.9                   15.0
                                                                                   
(1) Cumulative losses restricted represent the Group's share of losses in LSJV which exceed its investment in the joint venture. As a result the carrying value of the
    investment in LSJV is GBPnil (2015: GBPnil) in accordance with the requirements of IAS 28.
(2) In accordance with the initial recognition exemption provisions under IAS 12 'Income Taxes', no deferred tax is recognised on goodwill.

Reconciliation of investment in joint ventures:

The table below reconciles the opening to closing carrying value of investment in joint ventures as presented on the
consolidated balance sheet.
                                                                                      GCP                   LSJV                 Solum                Total
Investment in joint ventures                                                         GBPm                   GBPm                  GBPm                 GBPm
At 1 January 2015                                                                     0.1                      -                     -                  0.1
Loss for the year(1)                                                                    -                 (12.2)                 (0.7)               (12.9)
Loss restricted(1)                                                                      -                   12.2                     -                 12.2
Issue of equity loan notes                                                              -                      -                   0.9                  0.9
Goodwill on acquisition of joint venture                                                -                      -                  14.5                 14.5
At 31 December 2015                                                                   0.1                      -                  14.7                 14.8
Loss for the year(1)                                                                    -                 (14.8)                 (0.3)               (15.1)
Loss restricted1                                                                        -                   14.8                     -                 14.8
Issue of equity loan notes                                                              -                      -                   0.5                  0.5
At 31 December 2016                                                                   0.1                      -                  14.9                 15.0

(1) Share of post-tax loss from joint ventures in the consolidated income statement of GBP0.3 million (2015: loss GBP0.7 million) comprises loss for the year of GBP15.1
   million (2015: GBP12.9 million) and loss restricted totalling GBP14.8 million (2015: GBP12.2 million).

14 NON-CONTROLLING INTEREST

TTL Earls Court Properties Limited, a subsidiary of TfL, holds a 37% non-controlling interest in ECPL, a subsidiary of the
Group. The principal place of business of ECPL is within the UK.
The accumulated non-controlling interest is presented below.
                                                                                                                                    2016               2015
                                                                                                                                    GBPm               GBPm
At 1 January                                                                                                                       468.8                  -
Profit and total comprehensive income for the year attributable to non-controlling interest                                      (104.9)               26.1
Capital contribution from non-controlling interest                                                                                     -               44.4
Unsecured loan notes issued to non-controlling interest                                                                              4.3              398.3
At 31 December                                                                                                                     368.2              468.8

During the year, unsecured, non-interest bearing loan notes were issued by ECPL to TTL Earls Court Properties Limited. As
the transaction price of the loan notes was not an approximation of their fair value, the Group determined the fair value by using
data from observable inputs. As a result, the initial fair value of the loan notes was valued at less than GBP0.1 million (2015: less
than GBP0.1 million) and therefore GBP402.6 million (2015: GBP398.3 million) has been classified as equity.

Set out below is summarised financial information, before intercompany eliminations, for ECPL.
                                                                                                                                    2016               2015
ECPL                                                                                                                                GBPm               GBPm
Summarised income statement
Net rental income                                                                                                                    1.2                1.2
Administrative expenses                                                                                                            (2.5)              (2.4)
Other income                                                                                                                           -                0.4
(Loss)/gain on revaluation of investment and development property                                                                (298.2)               86.9
Taxation                                                                                                                            15.9             (15.6)
(Loss)/profit on ordinary activities after taxation                                                                              (283.6)               70.5

                                                                                                                                    2016               2015
ECPL                                                                                                                                GBPm               GBPm
Summarised balance statement
Investment and development property                                                                                              1,022.8            1,274.7
Cash at bank and at hand                                                                                                             9.4               27.8
Other current assets                                                                                                                 1.3                2.4
Other non-current assets                                                                                                             0.8                0.9
Other current liabilities                                                                                                          (7.6)             (23.2)
Borrowings                                                                                                                        (31.5)                  -
Other non-current liabilities                                                                                                          -             (15.6)
Net assets                                                                                                                         995.2            1,267.0

                                                                                                                                    2016               2015
ECPL                                                                                                                                GBPm               GBPm
Summarised cash flows
Operating cash flows after interest and tax                                                                                        (4.8)              (0.6)
Purchase and development of property, plant and equipment                                                                         (45.6)          (1,187.4)
Net cash flow before financing                                                                                                    (50.4)          (1,188.0)
Issue of shares                                                                                                                        -              120.0
Financing(1)                                                                                                                        32.0            1,076.5
Net cash flow                                                                                                                     (18.4)                8.5

(1) Financing comprises GBPnil (2015: GBP1,076.5 million) of unsecured, non-interest bearing loan notes and GBP32.0 million (2015: GBPnil) of external borrowings.

15 TRADE AND OTHER RECEIVABLES
                                                                                                                                    2016               2015
                                                                                                                                    GBPm               GBPm
Non-current
Other receivables(1)                                                                                                                55.3               38.5
Prepayments and accrued income(2)                                                                                                   41.8               33.2
Amounts receivable from joint ventures(3)                                                                                           97.7               87.2
Trade and other receivables                                                                                                        194.8              158.9
Current
Rent receivable                                                                                                                      7.9                6.6
Other receivables                                                                                                                   14.6                3.4
Prepayments and accrued income(2)                                                                                                   18.3               12.3
Amounts receivable from joint ventures(4)                                                                                            7.0               10.0
Trade and other receivables                                                                                                         47.8               32.3

(1) Includes GBP45.0 million (2015: GBP30.0 million) payment to LBHF which forms part of the CLSA.
(2) Includes tenant lease incentives of GBP45.3 million (2015: GBP36.0 million).
(3) Non-current amounts receivable from joint ventures relate to deep discount bonds that were issued by LSJV to the Group. The bonds are redeemable at their
    nominal value of GBP131.7 million on 24 August 2019.
(4) Current amounts receivable from joint ventures comprise working capital funding advanced by the Group to LSJV and Solum. The balance has been impaired
    by GBP46.3 million (2015: GBP31.5 million).

16 CASH AND CASH EQUIVALENTS
                                                                                                                                    2016               2015
                                                                                                                                    GBPm               GBPm
Cash at hand                                                                                                                         8.1               11.6
Cash on short-term deposit                                                                                                          16.8               49.3
Unrestricted cash and cash equivalents                                                                                              24.9               60.9
Restricted cash and cash equivalents(1)                                                                                              6.0                6.0
Cash and cash equivalents                                                                                                           30.9               66.9

1 Restricted cash and cash equivalents relate to amounts placed on deposit in accounts which are subject to withdrawal conditions.

17 TRADE AND OTHER PAYABLES
                                                                                                                                    2016               2015
                                                                                                                                    GBPm               GBPm
Rent received in advance                                                                                                            23.9               21.3
Accruals and deferred income                                                                                                        35.3               58.5
Trade payables                                                                                                                       1.0                2.7
Other payables                                                                                                                      15.6                6.9
Other taxes and social security                                                                                                      2.5                2.1
Amounts payable to non-controlling interest                                                                                            -                4.4
Trade and other payables                                                                                                            78.3               95.9

18 BORROWINGS, INCLUDING FINANCE LEASES
                                                                                                                    2016

                                                                                  Carrying                           Fixed      Floating     Fair   Nominal
                                                                                     value    Secured    Unsecured    rate          rate    value     value
                                                                                      GBPm       GBPm         GBPm    GBPm          GBPm     GBPm      GBPm
Current
Bank loans and overdrafts                                                             12.0       12.0            -       -          12.0     12.0      12.0
Loan notes                                                                             6.0        6.0            -       -           6.0      6.0       6.0
Borrowings                                                                            18.0       18.0            -       -          18.0     18.0      18.0
Finance lease obligations                                                              0.5        0.5            -     0.5             -      0.5       0.5
Borrowings, including finance leases                                                  18.5       18.5            -     0.5          18.0     18.5      18.5
Non-current
Bank loans                                                                           500.8      153.6        347.2       -         500.8    505.9     505.9
Loan notes                                                                           323.4          -        323.4   323.4             -    330.7     325.0
Borrowings                                                                           824.2      153.6        670.6   323.4         500.8    836.6     830.9
Finance lease obligations                                                              3.6        3.6            -     3.6             -      3.6       3.6
Borrowings, including finance leases                                                 827.8      157.2        670.6   327.0         500.8    840.2     834.5
Total borrowings, including finance leases                                           846.3      175.7        670.6   327.5         518.8    858.7     853.0
Cash and cash equivalents                                                           (30.9)
Net debt                                                                             815.4

                                                                                                                   2015

                                                                                  Carrying                           Fixed      Floating     Fair   Nominal
                                                                                     value    Secured   Unsecured     rate          rate    value     value
                                                                                      GBPm       GBPm        GBPm     GBPm          GBPm     GBPm      GBPm
Current
Bank loans and overdrafts                                                             12.0       12.0           -        -          12.0     12.0      12.0
Loan notes                                                                             6.0        6.0           -        -           6.0      6.0       6.0
Borrowings                                                                            18.0       18.0           -        -          18.0     18.0      18.0
Finance lease obligations                                                              0.5        0.5           -      0.5             -      0.5       0.5
Borrowings, including finance leases                                                  18.5       18.5           -      0.5          18.0     18.5      18.5
Non-current 
Bank loans                                                                           454.6       84.8       369.8        -         454.6    460.5     460.5
Loan notes                                                                           149.4          -       149.4    149.4             -    155.6     150.0
Borrowings                                                                           604.0       84.8       519.2    149.4         454.6    616.1     610.5
Finance lease obligations                                                              3.6        3.6           -      3.6             -      3.6       3.6
Borrowings, including finance leases                                                 607.6       88.4       519.2    153.0         454.6    619.7     614.1
Total borrowings, including  
finance leases                                                                       626.1      106.9       519.2    153.5         472.6    638.2     632.6
Cash and cash equivalents                                                           (66.9)
Net debt                                                                             559.2

19 CLASSIFICATION OF FINANCIAL ASSETS AND LIABILITIES
                                                                                             2016                                      2015
                                                                                       Loss  Loss to other                 (Loss)/gain        Gain to other
                                                                       Carrying   to income  comprehensive   Carrying        to income        comprehensive
                                                                          value   statement         income      value        statement               income
                                                             Notes         GBPm        GBPm           GBPm       GBPm             GBPm                 GBPm
Derivative financial assets                                                 0.2       (2.4)              -        0.8            (1.3)                    -
Total held for trading assets                                               0.2       (2.4)              -        0.8            (1.3)                    -
Cash and cash equivalents                                       16         30.9           -              -       66.9                -                    -
Other financial assets                                          15        242.6           -              -      191.2            (0.2)                    -
Total cash and other financial assets                                     273.5           -              -      258.1            (0.2)                    -
Available-for-sale investments                                                -           -          (0.2)        0.2            (0.2)                    -
Total available-for-sale investments                                          -           -          (0.2)        0.2            (0.2)                    -
Derivative financial liabilities                                          (13.9)     (10.7)              -      (3.2)              0.7                    -
Total held for trading liabilities                                        (13.9)     (10.7)              -      (3.2)              0.7                    -
Borrowings, including finance leases                            18       (846.3)          -              -    (626.1)                -                    -
Other financial liabilities(1)                                            (79.6)          -              -     (98.7)                -                    -
Total borrowings and other financial   
liabilities                                                              (925.9)          -             -     (724.8)                -                    -

(1) Includes trade and other payables and tax liabilities.

Fair value estimation

Financial instruments carried at fair value are required to be analysed by level depending on the valuation method adopted
under IFRS 13 'Fair Value Measurement'.

The different levels are defined as follows:

Level 1: valuation based on quoted market prices traded in active markets;

Level 2: valuation based on inputs other than quoted prices included within Level 1 that maximise the use of observable data
either directly or from market prices or indirectly derived from market prices;

Level 3: where one or more inputs to valuation are not based on observable market data. Valuations at this level are more
subjective and therefore more closely managed, including sensitivity analysis of inputs to valuation models. Such testing has
not indicated that any material difference would arise due to a change in input variables.

The table below presents the Group's financial assets and liabilities recognised at fair value at 31 December 2016 and 31
December 2015.

The fair values of derivative financial instruments are determined from observable market prices or estimated using appropriate
yield curves at 31 December each year by discounting the future contractual cash flows to the net present values.

                                                                                         2016                                     2015
                                                                          Level 1    Level 2     Level 3    Total    Level 1   Level 2     Level 3    Total
                                                                             GBPm       GBPm        GBPm     GBPm       GBPm      GBPm        GBPm     GBPm
Derivative financial assets
Held for trading                                                                -        0.2           -      0.2          -       0.8           -      0.8
Investments   
Available-for-sale investments                                                  -          -           -        -          -         -         0.2      0.2
Total assets                                                                    -        0.2           -      0.2          -       0.8         0.2      1.0
Derivative financial liabilities  
Held for trading                                                                -     (13.9)           -   (13.9)          -     (3.2)           -    (3.2)
Total liabilities                                                               -     (13.9)           -   (13.9)          -     (3.2)           -    (3.2)

The table below presents a reconciliation of Level 3 fair value measurements for the year.
                                                                                                                                     2016              2015
                                                                                                                                     GBPm              GBPm
Available-for-sale investments
At 1 January                                                                                                                          0.2               0.4
- In Income                                                                                                                             -             (0.2)
- In comprehensive income                                                                                                           (0.2)                 -
At 31 December                                                                                                                          -               0.2

All of the Group's Level 3 financial instruments are unlisted equity investments. The valuation of the available-for-sale
investment is based on expected cash distributions to be received from China Harvest Fund 1 with reference to the
market value of the underlying assets held. During the year final proceeds were received by the Group. The China
Harvest Fund 1 is expected to be liquidated in 2017.

20 DEFERRED TAX

The decrease in corporation tax rate referred to in note 9 'Taxation' has been enacted for the purposes of IAS 12 'Income
Taxes' ("IAS 12") and therefore has 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 and the Group's holding
structure. The Group's recognised deferred tax liability on investment and development property as calculated under IAS 12 is
GBPnil at 31 December 2016 (2015: GBP15.6 million). The Group's contingent tax liability on investment properties, calculated on the
same tax base cost as above but based on a deemed market value disposal at year-end, is GBPnil (2015: GBP17.6 million).

A disposal of the Group's trading properties including Lillie Square at their market value as per note 12 'Property Portfolio'
would result in a corporation tax charge to the Group of GBP9.6 million (20.0 per cent of GBP48.1 million).

                                                                                      Fair value of     Fair value of
                                                                          Accelerated  investment &        derivative           Other
                                                                              capital   development         financial       temporary      Group
                                                                           allowances      property       instruments     differences     losses      Total
                                                                                 GBPm          GBPm              GBPm            GBPm       GBPm       GBPm
Provided deferred tax liabilities/(assets):
At 1 January 2015                                                                13.6          11.8             (0.3)           (6.6)      (5.6)       12.9
Adjustments in respect of previous years                                            -             -                 -               -        1.4        1.4
Recognised in income                                                              0.8           5.6             (0.1)           (0.9)        0.5        5.9
Recognised in other comprehensive income                                            -             -                 -             0.2          -        0.2
Recognised directly in equity                                                       -             -                 -             1.5          -        1.5
Reduction due to rate change                                                    (0.7)         (1.8)                 -             0.1          -      (2.4)
At 31 December 2015                                                              13.7          15.6             (0.4)           (5.7)      (3.7)       19.5
Adjustments in respect of previous years                                          0.1             -                 -               -        0.1        0.2
Recognised in income                                                              0.8        (14.7)             (2.4)             4.8      (5.6)     (17.1)
Recognised in other comprehensive income                                            -             -             (0.3)           (0.3)          -      (0.6)
Recognised directly in equity                                                       -             -                 -             1.6          -        1.6
Reduction due to rate change                                                        -         (0.9)                 -               -          -      (0.9)
At 31 December 2016                                                              14.6             -             (3.1)             0.4      (9.2)        2.7
Unprovided deferred tax assets: 
At 1 January 2016                                                                   -             -                 -               -      (7.8)
Movement during the year                                                            -        (35.9)                 -               -      (6.1)
At 31 December 2016                                                                 -        (35.9)                 -               -     (13.9)

In accordance with the requirements of IAS 12, deferred tax assets are only recognised to the extent that the Group
believes it is probable that future taxable profit will be available against which the deferred tax assets can be recovered.

21 SHARE CAPITAL AND SHARE PREMIUM
                                                                                                                 Issue                    Share       Share
                                                                                        Transaction              price          Number  capital     premium
Issue type                                                                                     date            (pence)       of shares     GBPm        GBPm
At 1 January 2015                                                                                                          836,236,407    209.1       206.9
  Scrip dividend - 2014 final                                                                  June                416       1,028,609      0.3         4.0
  Scrip dividend - 2015 interim                                                           September                467         122,277        -           -
  Share-based payment(1)                                                                                                     4,601,652      1.1         0.2
At 31 December 2015                                                                                                        841,988,945    210.5       211.1
  Scrip dividend - 2015 final                                                                  June                338       1,275,480      0.3         4.0
  Scrip dividend - 2016 interim                                                           September                293         303,831      0.1           -
  Share-based payment(2)                                                                                                     2,553,451      0.6           -
At 31 December 2016                                                                                                        846,121,707    211.5       215.1

(1) In 2015 a total of 4,601,652 new shares were issued to satisfy employee share scheme awards.
(2) In 2016 a total of 2,553,451 new shares were issued to satisfy employee share scheme awards.

At 21 February 2017, the Company had an unexpired authority to repurchase shares up to a maximum of 84,198,894 shares
with a nominal value of GBP21.0 million, and the Directors had an unexpired authority to allot up to a maximum of 559,185,325
shares with a nominal value of GBP139.8 million of which 280,382,318 with a nominal value of GBP70.0 million can only be allotted
pursuant to a fully pre-emptive rights issue.

22 CAPITAL COMMITMENTS

At 31 December 2016, the Group was contractually committed to GBP149.2 million (2015: GBP162.5 million) of future expenditure for
the purchase, construction, development and enhancement of investment, development and trading property. Of the GBP149.2
million committed, GBP114.7 million is committed 2017 expenditure.

In November 2013, 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 land can be transferred unless replacement homes for the residents of the relevant phase have been provided
and vacant possession is given. The Group has already paid GBP60.0 million of the GBP105.0 million cash consideration payable
under the CLSA. The residual GBP45.0 million will be settled in three annual instalments of GBP15.0 million with the next payment
due on 31 December 2017.

The Group's share of joint venture capital commitments arising on LSJV amounts to GBP18.2 million (2015: GBP48.6 million).

23 CONTINGENT LIABILITIES

The Group has contingent liabilities in respect of legal claims, guarantees and warranties arising from the ordinary course of
business. Contingent liabilities that may result in material liabilities are described below.

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 GBP55.0 million. Should any payments be made in respect of these obligations, they will be
deducted from the total consideration payable to LBHF (refer to note 22 'Capital Commitments').

In March 2013, 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 Earls Court and West Kensington Opportunity Area". Within the terms of the
agreement, the Group can exercise options during the next 50 years 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. Any further payments to Network Rail will be treated as contingent rent within finance lease obligations.

Within the terms of the agreement of the acquisition of the Northern Access Road land, the vendor's successor in title is entitled
to further payments until 2027 if certain conditions are met. Further payments become due following the grant of a planning
permission for change of use or on disposal. In the event such planning permission is implemented, the payment is calculated
at 50 per cent of the uplift in land value following the grant of the permission. In the event of a disposal, the payment is
calculated as 50 per cent of the difference between the sale value against the land value without the relevant permission.

24 CASH GENERATED FROM OPERATIONS
                                                                                                                                            2016       2015
                                                                                                                                 Notes      GBPm       GBPm
(Loss)/profit before tax                                                                                                                  (240.3)     459.9
Adjustments:
Profit on sale of trading property                                                                                                   3      (5.6)     (3.5)
Loss/(gain) on revaluation and sale of investment and
development property                                                                                                                 4      235.0   (453.9)
Profit on sale of available-for-sale investments                                                                                            (0.4)         -
Impairment of other receivables                                                                                                      5       14.8      12.2
Other costs                                                                                                                          6        5.0       0.2
Depreciation                                                                                                                                  1.8       0.5
Amortisation of tenant lease incentives and other direct costs                                                                                2.0         -
Share-based payment(1)                                                                                                                        1.1       5.1
Finance income                                                                                                                       7      (0.3)     (0.7)
Finance costs                                                                                                                        8       19.6      20.8
Other finance income                                                                                                                 7     (10.5)     (9.3)
Other finance costs                                                                                                                  8        5.3         -
Change in fair value of derivative financial instruments                                                                            19       13.1       0.6
Change in working capital:
Change in trade and other receivables                                                                                                      (40.9)    (40.5)
Change in trade and other payables                                                                                                          (7.4)      21.7
Cash generated from operations                                                                                                              (7.7)      13.1

(1) Includes GBP1.1 million (2015: GBP4.6 million) relating to the IFRS 2 'Share-based payment' charge.

25 RELATED PARTY TRANSACTIONS

Transactions with Directors
                                                                                                                                             2016      2015
Key management compensation(1)                                                                                                               GBPm      GBPm
Salaries and short-term employee benefits                                                                                                     2.8       3.5
Share-based payment                                                                                                                           0.5       3.2
                                                                                                                                              3.3       6.7

(1) Key management comprises the Directors of the Company who have been determined to be the only individuals with authority and 
    responsibility for planning, directing and controlling the activities of the Company.

Transactions between the Group and its joint ventures

Transactions during the year between the Group and its joint ventures, which are related parties, are disclosed in notes 13
'Investment in Joint Ventures', 15 'Trade and other receivables' and 22 'Capital commitments'. During the year the Group
recognised management fee income of GBP4.6 million (2015: GBP4.0 million) that was earnt on an arm's length basis.

Property purchased by Directors of the Company

A related party of the Group, Lillie Square GP Limited, entered into the following related party transactions as defined by IAS 24
'Related Party Disclosures':

- In April 2014 Ian Durant, Chairman of Capital & Counties Properties PLC, together with his spouse exchanged
  contracts to acquire an apartment for a purchase price of GBP725,000. At 31 December 2014 an initial deposit of GBP72,500
  had been received. In April 2015 a further GBP72,500 was received with the balance of GBP580,000 due upon legal completion.

- In April 2014 Andrew Strang, a Non-executive Director of Capital & Counties Properties PLC exchanged contracts to
  acquire an apartment for a purchase price of GBP855,000. At 31 December 2014 an initial deposit of GBP85,500 had been
  received. In April 2015 a further GBP85,500 was received with the balance of GBP684,000 due upon legal completion.

- In April 2014 Henry Staunton, a Non-executive Director of Capital & Counties Properties PLC, together with his spouse
  exchanged contracts to acquire an apartment for a purchase price of GBP1,999,000. At 31 December 2014 an initial
  deposit of GBP199,900 had been received. In April 2015 a further GBP199,900 was received with the balance of GBP1,599,200
  due upon legal completion.

- In April 2014 Situl Jobanputra, Chief Financial Officer of Capital & Counties Properties PLC, together with a family
  member exchanged contracts to acquire an apartment for a purchase price of GBP710,000. At 31 December 2014 an
  initial deposit of GBP71,000 had been received. In April 2015 a further GBP71,000 was received with the balance of GBP568,000
  due upon legal completion.

- In December 2014 Graeme Gordon, a Non-executive Director of Capital & Counties Properties PLC, exchanged
  contracts to acquire two apartments for GBP1,925,000 and GBP2,725,000. At 31 December 2014, initial deposits of GBP192,500
  and GBP272,500 had been received. In December 2015 a further GBP192,500 and GBP272,500 had been received, with the
  balance due upon legal completion.

- In December 2014 Blue Lillie Limited, an entity connected to Graeme Gordon, exchanged contracts to acquire two
  apartments for GBP1,975,000 and GBP2,825,000. At 31 December 2014, initial deposits of GBP197,500 and GBP282,500 had been
  received. In December 2015 a further GBP197,500 and GBP282,500 had been received with the balance due on legal completion.

The above transactions with Directors were conducted at fair and reasonable market price based upon similar
comparable transactions at that time. Where applicable, appropriate approval has been provided.

Lillie Square GP Limited acts in the capacity of general partner to Lillie Square LP, a joint venture between the Group and KFI.

ANALYSIS OF PROPERTY PORTFOLIO (UNAUDITED)

1. PROPERTY DATA AS AT 31 DECEMBER 2016
                                                                                                                                   Market
                                                                                                                                    Value
                                                                                                                                     GBPm         Ownership
Covent Garden                                                                                                                     2,274.8              100%
Earls Court Properties
ECPL                                                                                                                                644.4               63%
Lillie Square                                                                                                                       222.6               50%
Empress State                                                                                                                       230.0              100%
Other                                                                                                                                45.1              100%
Earls Court Properties (Group share)                                                                                              1,142.1    
Venues                                                                                                                              292.7              100%
Group share of total property                                                                                                     3,709.6
Investment and development property                                                                                               3,484.1
Trading property                                                                                                                    225.5

2. ANALYSIS OF CAPITAL RETURN FOR THE YEAR
                                                                                                                               Revaluation
                                                                                                   Market        Market           surplus/
                                                                                                    Value         Value       (deficit)(1)
                                                                                              31 December   31 December        31 December
                                                                                                     2016          2015               2016        Increase/
Like-for-like capital                                                                                GBPm          GBPm               GBPm       (decrease)
Covent Garden                                                                                     2,193.0       1,985.8              129.4             6.4%
Earls Court Properties                                                                            1,142.1       1,355.4            (292.6)          (20.4)%
Venues                                                                                              292.7         295.0              (3.8)           (1.3)%
Total like-for-like capital                                                                       3,627.8       3,636.2            (167.0)           (4.4)%
Investment and development property                                                               3,402.3       3,412.6            (121.5)           (3.5)%
Trading property                                                                                    225.5         223.6          (45.5)(2)          (16.8)%
Non like-for-like capital
Acquisitions                                                                                         81.8             -              (3.4)
Disposals                                                                                               -          25.6                  -
Total property                                                                                    3,709.6       3,661.8            (170.4)           (4.4)%
Investment and development property                                                               3,484.1       3,417.1            (124.9)           (3.5)%
Trading property                                                                                    225.5         244.7            (45.5)2          (16.8)%
All property
Covent Garden                                                                                     2,274.8       2,005.2             126.1              6.0%
Earls Court Properties                                                                            1,142.1       1,357.2           (292.7)           (20.4)%
Venues                                                                                              292.7         295.0             (3.8)            (1.3)%
Other                                                                                                   -           4.4                 -                 -
Total property                                                                                    3,709.6       3,661.8           (170.4)            (4.4)%

(1) Revaluation surplus/(deficit) includes amortisation of lease incentives and fixed head leases.
(2) Represents unrecognised surplus and write down or write back to market value of trading property. Presented for information purposes only.

3. ANALYSIS OF NET RENTAL INCOME FOR THE YEAR
                                                                                                                2016              2015            Increase/
Like-for-like net rental income                                                                                 GBPm              GBPm           (decrease)
Covent Garden                                                                                                   40.7              38.6                 5.3%
Earls Court Properties                                                                                          16.8              17.2               (2.1)%
Venues                                                                                                          23.6              19.3                22.4%
Other                                                                                                          (0.5)             (0.4)                    -
Total like-for-like net rental income                                                                           80.6              74.7                 7.8%
Like-for-like investment and development property                                                               80.6              74.7                 7.8%
Like-for-like trading property                                                                                     -                 -                    -
Non like-for-like net rental income
Acquisitions                                                                                                     0.9                 -
Developments                                                                                                   (0.3)               0.2
Disposals                                                                                                          -             (0.1)
Prior year acquisitions (like-for-like capital)                                                                  0.3               0.1
Total net rental income                                                                                         81.5              74.9                 8.7%
Investment and development property                                                                             81.6              74.9                 9.0%
Trading property                                                                                               (0.1)                 -
All property
Covent Garden                                                                                                   41.5              38.8                 6.9%
Earls Court Properties(1)                                                                                       16.8              17.3               (2.8)%
Venues                                                                                                          23.6              19.3                22.4%
Other                                                                                                          (0.4)             (0.5)                    -
Total net rental income                                                                                         81.5              74.9                 8.7%
1 ERV of the Empress State Building is GBP16.4 million.

4. ANALYSIS OF COVENT GARDEN BY USE

31 December 2016
                                                                                                           Weighted                                     Net
                                                     Initial     Nominal        Passing                     average        Market                      area
                                                       yield  equivalent           rent      Occupancy    unexpired         value           ERV     million
                                                      (EPRA)       yield           GBPm           rate  lease years          GBPm          GBPm       Sq ft
Retail                                                                                                                    1,636.1          65.5         0.6
Office                                                                                                                      292.9          16.0         0.2
Residential                                                                                                                 135.4           3.6         0.2
Other(1)                                                                                                                    210.4          10.9         0.1
Total                                                  2.10%       3.54%           51.2          96.5%          6.5       2,274.8          96.0         1.1

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

CONSOLIDATED UNDERLYING PROFIT STATEMENT (UNAUDITED)
For the year ended 31 December 2016
                                                                                                                                            Re-presented(1)
                                                                                                                                    2016               2015
Group share                                                                                                                         GBPm               GBPm
Net rental income                                                                                                                   81.5               74.9
Other income                                                                                                                         2.7                2.5
Administration expenses                                                                                                           (50.5)             (52.5)
Operating profit                                                                                                                    33.7               24.9
Finance costs                                                                                                                     (19.8)             (20.8)
Finance income                                                                                                                       0.3                0.7
Net finance costs                                                                                                                 (19.5)             (20.1)
Profit before tax                                                                                                                   14.2                4.8
Taxation                                                                                                                           (2.4)                3.0
Underlying earnings                                                                                                                 11.8                7.8
Underlying earnings per share (pence)                                                                                                1.4                0.9
Weighted average number of shares                                                                                                 844.4m             841.1m

(1) Comparative period has been re-presented from proportionate consolidation to Group share basis.

FINANCIAL COVENANTS (UNAUDITED)
For the year ended 31 December 2016

Financial covenants on non-recourse debt

                                                                                                  31 December 2016
                                                                                                           Loan(s)
                                                                                                       outstanding
                                                                                                    at 31 December                                 Interest
                                                                                                           2016(1)                LTV                 cover
Group share                                                                        Maturity                   GBPm           covenant              covenant
Covent Garden(2)                                                                2020 - 2028                  675.0                60%                  120%
ECPL                                                                                   2026                   20.3                40%                   n/a
Lillie Square(3)                                                                2017 - 2018                   77.6                75%                   n/a
Empress State                                                                          2018                   85.5                60%                  300%
Venues                                                                                 2020                   50.0                50%                  250%
Total                                                                                                        908.4

(1) The loan values are the nominal values at 31 December 2016 shown on a Group share basis. The balance sheet value of the loans includes any unamortised fees.
(2) Covent Garden comprises five loans with maturities in 2020, 2021, 2024, 2026 and 2028.
(3) Lillie Square comprises two loans with maturities in 2017 and 2018.

DIVIDENDS

The Directors of Capital & Counties Properties PLC have proposed a final dividend per ordinary share (ISIN GB00B62G9D36)
of 1.0 pence payable on 31 May 2017.

Dates

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

Sterling/Rand exchange rate struck                                                                                                             6 April 2017
Sterling/Rand exchange rate and dividend amount in Rand announced                                                                              7 April 2017
Ordinary shares listed ex-dividend on the JSE, Johannesburg                                                                                   19 April 2017
Ordinary shares listed ex-dividend on the London Stock Exchange                                                                               20 April 2017
Record date for final dividend in UK and South Africa                                                                                         21 April 2017
Annual General Meeting                                                                                                                           5 May 2017
Dividend payment date for shareholders                                                                                                          31 May 2017

South African shareholders should note that, in accordance with the requirements of Strate, the last day to trade cum-dividend
will be 18 April 2017 and that no dematerialisation of shares will be possible from 19 April 2017 to 21 April 2017 inclusive. No
transfers between the UK and South Africa registers may take place from 7 April 2017 to 21 April 2017 inclusive.

Subject to SARB approval, the Board intends to offer an optional scrip dividend alternative in respect of the 2016 final dividend.

The above dates are proposed and subject to change.

Important Information for South African Shareholders

The final cash dividend declared by the Company will constitute a dividend for Dividends Tax purposes. Dividends Tax will
therefore be withheld from the amount of the final cash dividend which is paid at a rate of 15 per cent, unless a shareholder
qualifies for an exemption and the prescribed requirements for effecting the exemption, as set out in the rules of the Scrip
Dividend Scheme, are in place.

It is the Company's understanding that the issue and receipt of shares pursuant to the scrip dividend alternative will not have
any Dividends Tax nor income tax implications. 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.

GLOSSARY

Capco

Capco represents Capital & Counties Properties PLC (also referred to as "the Company" or "the Parent") 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 Earls Court and West Kensington
Opportunity Area.

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 London Borough of
Hammersmith & Fulham and Royal Borough of Kensington & Chelsea.

Earls Court Masterplan

The Earls Court Masterplan, created by Sir Terry Farrell and Partners is the consented scheme for the transformation of Earls
Court and West Kensington Opportunity Area. The London Borough of Hammersmith & Fulham and The Royal Borough of
Kensington & Chelsea formally granted outline planning permission for the Earls Court Masterplan on 14 November 2013.

Earls Court Properties

The Group's interests in the Earls Court area, comprising properties held in ECPL, Lillie Square (a 50:50 joint venture
partnership with the Kwok Family Interests), the Empress State Building and a number of smaller properties in the 
Earls Court area.

ECPL

Earls Court Partnership Limited is the investment vehicle with TfL. The Group holds 63 per cent controlling interest and TfL
holds 37 per cent. ECPL holds interests in EC1 & EC2 and other adjacent property primarily located on and around Lillie Road.

EBITDA

Earnings before interest, tax, depreciation and amortisation.

EC1 & EC2

The site formerly the location of the Earls Court 1 and Earls Court 2 Exhibition Centres.

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 earnings(1)

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 tax on
these items.

EPRA earnings per share(1)

EPRA earnings divided by the weighted average number of shares in issue during the year.

EPRA net asset value (EPRA NAV)(1)

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 tax 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 net asset value per share(1)

EPRA net asset value divided by the diluted number of ordinary shares.

EPRA net initial yield(1)

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.

EPRA topped-up initial yield(1)

Net initial yield adjusted for the expiration of rent-free periods.

EPRA triple net asset value (EPRA NNNAV)(1)

EPRA NAV adjusted to reflect the fair value of derivative financial instruments, excess fair value of debt over carrying value and
deferred tax on derivative financial instruments, revaluations and capital allowances.

EPRA Vacancy(1)

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

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.

Floral Court

Development at Covent Garden previously known as Kings Court.

GEA

Gross external area

GCP

Great Capital Partnership is a 50% Joint Venture between Capital & Counties Limited and Great Portland Estates PLC.

GLA

Greater London Authority.

Gross income

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

Headline earnings(1)

Headline earnings per share is calculated in accordance with Circular 2/2015 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.

HCA

Home and Communities Agency.

HMRC

Her Majesty's Revenue and Customs.

IPD

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

JSE

Johannesburg Stock Exchange.

Kwok Family Interests (KFI)

Joint venture partner in the Lillie Square development.

LBHF

The London Borough of Hammersmith & Fulham.

Like-for-like property(1)

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.

LSJV

The Lillie Square joint venture is a 50% Joint Venture between the Group and Kwok Family Interests.

Loan to value (LTV)(1)

LTV is calculated on the basis of Group's net debt divided by the value of the Group's property portfolio.

NAV

Net Asset Value.

NAV per share

Net Asset Value attributable to owners of the Parent per share. The Group considers this presentation to provide useful
information as it presents the value attributable to each share.

Net Debt

Total borrowings less cash and cash equivalents.

NIA

Net Internal Area.
Net rental income (NRI)
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.

NRIL

Network Rail Infrastructure Limited.

Occupancy rate(1)

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. This is equivalent to 100% less the EPRA vacancy rate.

Opportunity Area

In September 2011 the GLA published the 'Opportunity Area Planning Frameworks Report'. Opportunity Areas are London's
major reservoirs of brownfield land with significant capacity to accommodate new housing, commercial and other developments
linked to existing or potential improvements to public transport accessibility. Typically, they can accommodate at least 5,000
jobs or 2,500 new homes or a combination of the two, along with other supporting facilities and infrastructure.

Passing rent

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 lease 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.

RICS

Royal Institution of Chartered Surveyors.

SARB

South African Reserve Bank.

SAICA

South African Institute of Chartered Accountants.

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.

SDLT

Stamp Duty Land Tax

Solum

Solum Development Limited Partnership is a 50% Joint Venture between the Group and Network Rail Infrastructure Limited.

Tenant 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 (TPR)(1)

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

Total return (TR)(1)

The growth in EPRA NAV per share plus dividends per share paid during the year.

Total shareholder return (TSR)(1)

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

Underlying earnings(1)

Profit for the year excluding impairment charges, net valuation gains/losses (including profits/losses on disposals), net
refinancing charges, costs of termination of derivative financial instruments and non-recurring costs and income. Underlying
earnings is reported on a Group share basis.

Underlying earnings per share (EPS)(1)

Underlying earnings divided by the weighted average number of shares in issue during the year.

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").

(1) Relates to an alternative performance measure as defined by the FRC

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: 22/02/2017 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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