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CAPITAL & COUNTIES PROPERTIES PLC - Interim Results for the six months ended 30 June 2018

Release Date: 25/07/2018 08:00
Code(s): CCO     PDF:  
Wrap Text
Interim Results for the six months ended 30 June 2018

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

25 JULY 2018

CAPITAL & COUNTIES PROPERTIES PLC ("CAPCO")

INTERIM RESULTS FOR THE SIX MONTHS ENDED 30 JUNE 2018

Ian Hawksworth, Chief Executive of Capco, commented:

"Capco has had an active start to the year across its two prime central London estates. At Covent Garden we delivered another
period of strong performance and an increase in value, with excellent demand across all uses driving 21 per cent overall growth
in net rental income. At Earls Court, the consented land is now ready for development and we have realised significant
proceeds over the last twelve months from the sale of the Empress State Building and continued sales at Lillie Square.

Capco has achieved significant growth since listing, with long-term value creation across the business. Covent Garden has
been transformed into a leading global retail and dining destination, attracting a vibrant mix of British, independent and
international brands, while at Earls Court, we have created one of central London's most important mixed-use development
opportunities. Against this backdrop, the Board is considering the structure of the Group and constructive early steps have
been taken in preparing for a possible demerger.

Whilst the broader macroeconomic outlook remains uncertain, Capco is backed by a strong balance sheet and remains
focused on creating long-term value for shareholders. Our two prime central London estates are well-placed for long-term
success."

Key financials

-   Equity attributable to owners of the Parent GBP2.8 billion (Dec 2017: GBP2.8 billion)
-   EPRA NAV maintained at 334 pence per share (Dec 2017: 334 pence per share)
-   Total property value of GBP3.3 billion, a decrease of 0.4 per cent (like-for-like) (Dec 2017: GBP3.3 billion
    adjusted for the sale of the Empress State Building)
-   Proposed interim dividend of 0.5 pence per share (Jun 2017: 0.5 pence per share)

Continued income growth at Covent Garden

-   Covent Garden total property value of GBP2.6 billion, a 1.6 per cent increase (like-for-like) (Dec 2017: GBP2.5
    billion)
-   Net rental income up 11.6 per cent (like-for-like) or 21.2 per cent in absolute terms against June 2017
-   Positive operational momentum; 26 new leases and renewals 8.9 per cent above December 2017 ERV
-   ERV increased by 1.9 per cent (like-for-like) to GBP107 million (Dec 2017: GBP105 million)
-   Development of Floral Court complete; 75 per cent of lettable space contracted
-   Tiffany recently launched new concept store on James Street

Realising value at Earls Court

-  Earls Court interests valued at GBP707 million, a decrease of 7.0 per cent (like-for-like) (Dec 2017: GBP759
   million adjusted for the sale of the Empress State Building)
-  ECPL land available for development; ongoing interest from potential partners and end users
-  Sale of the Empress State Building for GBP250 million, a GBP30 million premium to the Dec 2017 valuation
-  Lillie Square:
         - Delivery of Phase 1 substantially complete, GBP123 million cash proceeds received (Capco share)
         - Over 80 per cent of Phase 2 now reserved or exchanged and main construction has
           commenced

Strong financial position with significant financial flexibility

-   Group loan to value ratio of 17 per cent (Dec 2017: 21 per cent)
-   Group undrawn facilities and cash of GBP886 million (Dec 2017: GBP691 million)
-   Capital commitments of GBP82 million (Dec 2017: GBP61 million)
-   Weighted average maturity of 6.5 years (Dec 2017: 6.9 years)
-   Weighted average cost of debt of 2.9 per cent (Dec 2017: 2.8 per cent)

Preparation for possible demerger

-      Constructive early steps taken in preparing for a possible demerger and further announcements will be
       made in due course

FINANCIAL HIGHLIGHTS
                                                                                                                      30 June     31 December
                                                                                                                         2018            2017
    Equity attributable to owners of the Parent                                                                     GBP2,819m       GBP2,800m
    Equity attributable to owners of the Parent per share                                                              331.5p          329.7p
0.5% Total return for six months ended 30 June 2018 (full year 2017: -1.3%)
    EPRA net asset value                                                                                            GBP2,850m       GBP2,839m
    EPRA net asset value per share                                                                                     334.4p          333.8p
    Dividend per share                                                                                                   0.5p            1.5p
0.6% Total property return for six months ended 30 June 2018 (full year 2017: 1.0%)
    Property market value(1)(2)                                                                                     GBP3,329m       GBP3,525m
    Net rental income from continuing operations                                                                     GBP33.1m        GBP66.2m
    Profit/(loss) for the period attributable to owners of the Parent                                                GBP23.2m       (GBP0.4)m
Underlying earnings per share(3)                                                                                         0.5p            1.3p

(1) On a Group share basis. Refer to Property Data on page 52 for the Group's percentage ownership of property.
(2) On a Group share basis. Refer to note 2 "Segmental Reporting" on page 28.
(3) From continuing and discontinued operations. Refer to Consolidated Underlying Profit Statement on page 54.

Outlook

Our two prime central London estates have had an active first half, making good operational progress. Capco's strategy
remains focused on driving long-term value creation from both estates. Capco has achieved significant growth since listing,
driving value creation from Covent Garden and Earls Court. Backed by a strong balance sheet, with an experienced and
professional management team, Capco is well-positioned to support the current capital requirements of its two prime estates,
both of which have positive long-term growth prospects and distinct investment characteristics.

Against this backdrop, the Board is considering the structure of the Group in order to realise the potential of these two prime
central London estates and enhance shareholder value. Constructive early steps have been taken in preparing for a possible demerger.

Under Capco's stewardship, Covent Garden has been transformed into a world-class retail and dining destination, with a
vibrant mix of global, independent and British brands. Covent Garden is well-positioned to continue to drive income growth and
total returns from the estate. Capco is focused on enhancing the customer environment through creative asset management
and making strategic investments to expand its ownership of the estate.

Recent introductions including The Shop at Bluebird, Alkemistry and Petersham Nurseries represent a positive start to the
repositioning of Floral Street as a fashion and lifestyle destination. As capital initiatives come to completion, the pedestrian flow
of the estate continues to change allowing for further repositioning opportunities. The estate remains well-placed for continued
success and ERV progression towards the target of GBP125 million by December 2020.

At Earls Court, Capco has created one of the most important mixed-use development opportunities in central London through
our strategy of planning, land assembly, land enablement works and selective development. The focus remains on creating
and realising the value of the investment as recently demonstrated through the sale of the Empress State Building for GBP250
million, at a GBP30 million premium to the December valuation and continued sales at Lillie Square.

With the Earls Court Partnership Limited ("ECPL") land now available for development, there is ongoing interest from potential
partners and end users. Capco together with its partner Transport for London ("TfL") will seek to optimise the value of the land
which has the flexibility to be brought forward on a phased basis through the introduction of third-party capital and selective
development across various uses.

Whilst the broader macroeconomic outlook remains uncertain, Capco remains focused on creating long-term value for
shareholders from its two prime central London estates which are well-placed for long-term success.

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                               Head of Investor Relations                   +44 (0)20 3214 9165

Media enquiries:
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 9814).

OPERATING REVIEW

Preparation for a possible demerger

Following the announcement on 24 May 2018, constructive early steps have been taken in preparing for a possible demerger
which would result in two separately-listed businesses based around Covent Garden and Earls Court, both of which have
positive long-term growth prospects and distinct investment cases.
The Board of Capco recognises the need for both businesses to have a ppropriate capital structures to pursue their respective
strategies and would therefore expect the Earls Court business, if separately listed, to retain a significant portion of the GBP250
million proceeds received from the sale of the Empress State Building.

Capco will provide a further update to the market in due course. A demerger, if pursued is expected to be formalised by the end
of this year.

Board changes

On 24 May 2018, Ian Durant announced his intention to step down as Chairman of the Board and on 5 June 2018 Henry
Staunton took over as Chairman.

Overview

Capco's strategy is focused on driving long-term value creation from its two central London estates. Since listing Capco has
achieved significant growth. The progression of its two estates, each with its own distinct investment prospects has been taken
into account by the Board as it considers the structure of the Group and prepares for a possible demerger.

Covent Garden is a world-class retail and dining destination with a vibrant mix of global, independent and British retailers and
restaurateurs delivering strong income and rental value growth. Capco's distinct approach to creative asset management and
strategic investment continues to attract target brands and experiences to meet evolving consumer demand.

Capco has created one of the most important mixed-use development opportunities in central London at Earls Court, located
within two London Boroughs, the Royal Borough of Kensington and Chelsea ("RBKC") and the London Borough of
Hammersmith & Fulham ("LBHF"). Land with detailed planning consent and the ability to grow as a consequence of unrivalled
existing transport links in central London is a scarce commodity. Earls Court is a key strategic scheme for the Capital, providing
the opportunity to create much needed new homes, jobs and places for London.

London is an outstanding global city with a diverse economy and remains a very attractive investment destination. The Greater
London Authority ("GLA") estimates that the Capital's population will continue to grow, attracting people who wish to live, work,
invest in and enjoy the city. Against this backdrop of London's continued prosperity, Capco's two prime central London estates
are well-placed for long-term success.

Valuations

The total property value of the Group decreased marginally by 0.4 per cent (like-for-like) in the period to 30 June 2018 to 
GBP3.3 billion.

The valuation of Covent Garden has risen by 1.6 per cent (like-for-like) to GBP2.6 billion, driven by ERV growth of 1.9 per cent
achieved over the period. The equivalent yield remains broadly unchanged at 3.6 per cent, reflecting the valuer's view of the
strength of demand for central London retail investments.

The valuation of Earls Court Properties was GBP707 million, representing a decrease of 7.0 per cent (like-for-like). The
independent valuer has taken a more conservative view on gross development value and the cost of delivery together with a
higher developer's margin, resulting in a net decline of 9.0 per cent for ECPL.
  
                                                                                     Market Value           Market Value
                                                                                          30 June            31 December            Valuation
                                                                                             2018                   2017               Change
                                                                                             GBPm                   GBPm     Like-for-like(1)
Covent Garden                                                                             2,622.0                2,545.4                 1.6%
Earls Court Properties 
   Earls Court Partnership Limited ("ECPL")(2)                                              518.9                  560.7               (9.0)%
   Lillie Square(3)                                                                         147.7                  156.5                    -
   Empress State                                                                                -                  220.0                    -
   Other                                                                                     40.0                   41.9               (4.9)%
Group share of Earls Court Properties                                                       706.6                  979.1               (7.0)%
Group share of total property(4)                                                          3,328.6                3,524.5               (0.4)%

(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 the carrying value of investment, development and trading property to the market value is shown in note 13 
    'Property Portfolio' within the condensed consolidated financial statements.

The Group has a 63 per cent controlling interest in ECPL, the investment vehicle with 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 7 for further information.

COVENT GARDEN

A leading global retail and dining destination

Covent Garden is firmly established as a leading global retail and dining destination in the heart of London's West End. Capco
is responsible for the management of 1.2 million square feet of lettable space. Visitors to Covent Garden are seeking
differentiated shopping experiences, which is core to Capco's vision for the district, offering a vibrant mix of luxury and
contemporary, global and British brands across the estate. The area is now home to a wide variety of brands including Apple,
Balthazar, Bucherer, Frenchie, Petersham Nurseries and Tiffany.

The Covent Garden estate continues to deliver positive performance and value growth. During the period to 30 June 2018, 26
leasing transactions including new leases and renewals representing GBP4.2 million of annualised rental income were transacted
at 8.9 per cent above 31 December 2017 ERV. Since 30 June 2018, a further GBP2.8 million of annualised income has been
contracted from 7 leasing transactions. Net rental income was GBP28.3 million for the first half of the year, up 11.6 per cent (like-
for-like) or 21.2 per in absolute terms compared to June 2017.

The value of the estate increased 1.6 per cent like-for-like to GBP2.6 billion. The ERV for the estate has increased 1.9 per cent
like-for-like to GBP107 million. Occupancy on the estate remains high at 97 per cent and NRI growth continues to outperform ERV
growth as the reversionary income potential of the portfolio is captured.

Retail

Luxury jewellery brand Tiffany & Co. has opened a store on James Street, showcasing a new concept for Tiffany & Co.,
offering not only its iconic designs, but also an innovative and distinctive retail experience encouraging consumer interaction.
The new Tiffany & Co. store will complement Covent Garden's impressive growing luxury retail offer, joining the strong line-up
which includes Chanel, Tom Ford, Mulberry and Bucherer.

The ongoing repositioning of Floral Street as a fashion and lifestyle destination continues to progress. The Shop at Bluebird
opened in Carriage Hall, housing two dedicated retail floors. The multi brand concept store stocks more than 100 brands such
as Victoria Beckham, Marni, Acne Studios and Alexander McQueen. In addition, ladies footwear brand French Sole has
opened at 19 Floral Street offering luxurious, fashionable footwear. Luxury jewellery brand Alkemistry is the latest signing to
Floral Court and will open in the second half of the year.

Over the period strong demand for the Market Building was recorded; new leasing deals were agreed with Whittards and
Atelier Cologne, along with the introduction of new British watch brand Olivia Burton which will open later this year. South
Africa's leading spa brand Africology is the latest concept to agree terms, taking space in the Market Building, providing a
globally-recognised product range that features in some of the best hotels and spas in the world.

The gifting and luxury accessories category continues to strengthen with the opening of leading travel brand Tumi at the Royal
Opera House Arcade.

Dining

Covent Garden continues to attract innovative food and beverage concepts and is now one of London's best dining
destinations, offering something for everyone, from casual to premium, focusing on high quality differentiated concepts for customers.

In May 2018, Petersham Nurseries opened two restaurants in Floral Court, La Goccia, a vibrant all-day restaurant, offering an
extensive menu of small sharing plates and The Petersham, a sophisticated, a la carte restaurant. During spring and summer
months, tables flow out onto Floral Court, where al fresco dining is offered.

Existing tenant, The Oystermen which opened on Henrietta Street last summer, has agreed terms to upsize, extending into the
adjacent unit, reflecting the strong trading prospects on the estate. Adding to the variety on Henrietta Street is latest opening
Cora Pearl, a new restaurant from the team behind Kitty Fisher's in Mayfair. The 60-cover restaurant is set over two floors, with
an open kitchen and a cocktail bar downstairs.

Abuelo, an Australian-meets-South-American coffee house and kitchen opened on Southampton Street earlier this year. In
addition, there are a number of openings scheduled for the second half of the year; both SushiSamba and Vyta Santa
Margherita are fitting out space in the Market Building and are expected to open in the autumn. Z Hotels is set to open on
Bedford Street in the coming months, providing compact yet luxurious accommodation for visitors with a new 111 room hotel.

New York's iconic restaurant RedFarm is scheduled to open alongside Balthazar on Russell Street at the end of July, bringing
modern Chinese cuisine and dim-sum to Covent Garden. The 96-seat restaurant features modern rustic decor across three
floors offering a casual dining experience.

Avobar, London's first permanent avocado bar will open later this year on Henrietta Street while on King Street, Mariage
Frères, the iconic French tea house, will open its first stand-alone store outside of Paris comprising over 8,000 square feet.
Wahlburgers, the casual dining burger restaurant and bar, will open its first restaurant outside the United States on James
Street offering a menu of high-quality homemade burgers and sandwiches, fresh salads and shakes.

Acquisitions and developments

Development of Floral Court completed in July. Floral Court, which is Capco's largest development to date at Covent Garden,
provides over 85,000 square feet (NIA) of space with eight retail and two restaurant units as well as 45 apartments. The new
connecting courtyard between Floral Street and King Street is now open, improving the pedestrian flow on the northern side of
the estate. Over 75 per cent of the lettable space has now been contracted securing GBP3.8 million of ERV.

Capco continues to make strategic investments expanding its ownership of the estate, acquiring three properties for GBP19 million
consideration including purchasers' costs. Most notably, Capco completed assembly of the Wellington block, which is a scarce
island site in central London, through the acquisition of the last remaining unit, 23 Wellington Street for GBP10 million.
Repositioning of the Wellington block presents a unique investment opportunity; Capco is reviewing plans, which include
proposals for office and retail space to continue Covent Garden's transformation on the southern side of the estate.

Residential

Leasing demand for residential accommodation across the estate remains positive with a high rate of renewals recorded above
previous passing rent.

The residential component of Floral Court comprises 16 heritage apartments on King Street and Rose Street and 29 new
apartments on Floral Street. The entire heritage component has been leased and the new build residential units are being
prepared for sale.

Offices

Demand for office space continues to be strong, attracting professional services, creative industries and SMEs. A number of
office lettings including floors at Regal House and Tower House have been achieved during the period. We continue to see
strong interest from occupiers.

EARLS COURT PROPERTIES

One of the most important mixed-use development opportunities in central London

Capco has created one of the most important mixed-use development opportunities in central London at Earls Court through
implementation of its strategy. Capco has deployed its expertise to successfully carry out complicated and strategic land
assembly, promote the planning framework, achieve a planning consent and undertake highly complex enabling works,
including demolition of the former Earls Court Exhibition Centres.

Located within two London Boroughs, the Royal Borough of Kensington and Chelsea ("RBKC") and the London Borough of
Hammersmith & Fulham ("LBHF"), with planning consent in place and supported by excellent transport infrastructure, Earls
Court has the potential to create a new district. Capco will continue to engage with all stakeholders to evolve and bring forward
the masterplan.

Earls Court is a GLA Opportunity Area making it a strategic scheme for the Capital. The GLA's draft London Plan issued in
December 2017 ("The Plan"), references the Earls Court Masterplan as 'ready to grow' demonstrating the site's potential. In
addition, The Plan estimates that the population of London will increase by 70,000 per annum, reaching 10.5 million in 2041.
Against the backdrop of London's growing housing needs, Opportunity Areas such as Earls Court are seen as vital in order to
meet London's demands. Capco remains focused on optimising the potential of this strategic opportunity and continues to drive
and realise long-term value on its investments at Earls Court.

Investments at Earls Court

Earls Court Properties represents Capco's investments within the Earls Court and West Kensington Opportunity Area and
principally comprises:

- 63 per cent interest in ECPL: the investment vehicle with TfL which owns 999 year leases over the EC1 & EC2 land together
with certain adjacent properties primarily located on or around Lillie Road. Capco is leading the venture in its role as business
and development manager. Capco's interests in ECPL were valued at GBP519 million at 30 June 2018. ECPL land has detailed
planning consent for 3.4 million square feet (GEA).

- 50 per cent interest in the Lillie Square joint venture, with "KFI". Capco's 50 per cent interest was valued at GBP148 million at 30 June 2018.

- 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 Estates"). To date, Capco has paid GBP75 million of the GBP105
million cash consideration payable to LBHF including three of the five annual instalments of GBP15 million.

ECPL

Following the successful completion of the final phase of the demolition of the former Earls Court Exhibition Centres in January
2018, the ECPL land is now available for development. Capco, together with its partner TfL, will seek to optimise the value of
the ECPL land which has the flexibility to be brought forward through the introduction of third-party capital and selective
development across various uses. With the land now available for development, there is ongoing interest from potential
partners and end-users for various parts of the site.

Earls Court has the ability to evolve with the needs of London and benefits from excellent existing transport links, making it
attractive for multiple and mixed-uses, including residential of different forms and tenures, offices, leisure and retail, as well as
potentially education, cultural and other uses.

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 more than 600 private and 200 affordable homes across three phases. Delivery of
Phase 1 is substantially complete, and 217 units have been handed over to residents representing GBP123 million (Capco share)
of sales proceeds. Sales of the nine remaining units of Phase 1 continue to progress, the most recent of which, a premium unit,
transacted in July at GBP2,300 per square foot.

In Phase 2, over 80 per cent of the units (153 of the 186), have now been reserved or exchanged, 60 of these transacted in
2018, including the exchange of contracts with an international investor for all 49 apartments and 31 parking spaces at '9 Lillie
Square', one of the four blocks within Phase 2. Total consideration for this transaction was approximately GBP66 million (GBP33
million Capco share). Pricing was in line with Phase 2 sales to date at a modest premium to comparable units in Phase 1.

Sales proceeds from Phase 1 have been used to pay down the Lillie Square bank facility. With over 80 per cent of Phase 2
reserved or exchanged, the main construction contract was awarded in June 2018. The bank facility will be redrawn to fund
construction of Phase 2 with delivery expected from the end of 2019.

CLSA

Under the CLSA, the residents of The Estates would have the opportunity to be rehoused by the council within the Earls Court
Opportunity Area, some potentially within Block D of the Lillie Square development. Basement works on Block D foundations
have completed to facilitate the first phase of replacement housing for The Estates residents.

The Estates are located within LBHF, with the council having expressed interest in pursuing alternative options for The Estates.
The CLSA represents a legally binding agreement and Capco will continue to engage with all stakeholders in relation to future
plans for the Estates, as part of the wider masterplan.

Sale of the Empress State Building

In March 2018, Capco completed the sale of the Empress State Building ("ESB") for total cash consideration of GBP250 million,
compared to a year end valuation of GBP220 million. ESB has been sold to The Mayor's Office for Policing and Crime ("MOPAC"),
the long-term occupier of the building under a lease due to expire in June 2019. ESB is a 451,000 square foot (NIA), 31 storey,
office building located in Earls Court. The consented Earls Court Masterplan is a mixed-use development and is based on
retention of ESB's current structure. The disposal reflects Capco's disciplined approach to capital management, enabling
Capco to realise significant cash proceeds.

FINANCIAL REVIEW

The Group has strengthened its financial position over the first half of the year, reducing loan to value to 17 per cent and
increasing the level of undrawn facilities and cash to GBP886 million. This has been driven primarily by the sale of the Empress
State Building at a premium to valuation. Our capital structure positions the Group to withstand prevailing market conditions,
take advantage of opportunities as they arise, and deliver long-term returns to shareholders by driving value creation across
our assets.

During the period, the Group has continued to invest into Covent Garden through GBP19 million of acquisitions and GBP14 million of
development spend, predominantly in relation to Floral Court, which have served to increase the Group's weighting in Covent
Garden to 79 per cent. The value of the Covent Garden estate increased by 1.6 per cent (like-for-like) due to the rental growth
achieved during the year, with ERV up by 1.9 per cent on a like-for-like basis.

Uncertainties in the broader political and economic environment continue to impact sentiment around London residential
property. As a result the market value of Earls Court Properties, which represents the Group's interests at Earls Court, has
decreased by 7.0 per cent (like-for-like).

Overall, the Group share of total property value has decreased by 0.4 per cent (like-for-like). EPRA net asset value per share
increased by 0.2 per cent during the period, from 333.8 pence at 31 December 2017 to 334.4 pence. This increase together
with the 1.0 pence dividend paid to shareholders during the period resulted in a total return of 0.5 per cent.
Underlying earnings from continuing activities increased to GBP4.3 million due to higher net rental income and reduced
administration expenses.

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.

Alternative Performance Measures ("APMs"), being financial measures which are not specified under IFRS, are used by the
Group to monitor the performance of the business. These include a number of the Financial Highlights shown on page 2. A
summary of EPRA performance measures and key Group measures included within these interim results are shown on pages
55 and 56. Many of the APMs included are based on the EPRA Best Practice Recommendations reporting framework which
aims to improve the transparency, comparability and relevance of published results of public real estate companies in Europe.

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. In order to align with the way
the Group is managed, therefore, this financial review presents the financial position, performance and cash flow analysis on a
Group share basis.

FINANCIAL POSITION

At 30 June 2018 the Group's EPRA net asset value was GBP2.8 billion (31 December 2017: GBP2.8 billion) representing 334 pence
per share (31 December 2017: 334 pence).

SUMMARY ADJUSTED BALANCE SHEET
                                                                                                          30 June 2018
                                                                                                                             Non-
                                                                                                             Joint    controlling       Group
                                                                                               IFRS    ventures(1)    interest(2)       share
                                                                                               GBPm           GBPm           GBPm        GBPm

Investment, development and trading property                                                3,426.1          118.4        (304.8)     3,239.7
Net debt                                                                                    (567.0)            6.3           21.8     (538.9)
Other assets and liabilities(3)                                                               242.2        (124.7)            1.0       118.5
Non-controlling interest                                                                    (282.0)              -          282.0           -
Net assets attributable to owners of the Parent                                             2,819.3              -              -     2,819.3
Adjustments:
Fair value of derivative financial instruments                                                                                          (1.0)
Unrecognised surplus on trading property                                                                                                 29.3
Deferred tax adjustments                                                                                                                  2.2
EPRA net asset value                                                                                                                  2,849.8
EPRA net asset value per share (pence)(4)                                                                                                 334

(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 30 June 2018 was 852.3 million.

                                                                                                      31 December 2017
                                                                                                                             Non-
                                                                                                          Joint       controlling       Group
                                                                                            IFRS    ventures(1)       interest(2)       share
                                                                                            GBPm           GBPm              GBPm        GBPm
Investment, development and trading property                                             3,645.7          124.7           (329.4)     3,441.0
Net debt                                                                                 (748.3)          (6.1)              20.7     (733.7)
Other assets and liabilities(3)                                                            208.2        (118.6)               2.9        92.5
Non-controlling interest                                                                 (305.8)              -             305.8           -
Net assets attributable to owners of the Parent                                          2,799.8              -                 -     2,799.8
Adjustments:
Fair value of derivative financial instruments                                                                                            5.5
Unrecognised surplus on trading property                                                                                                 31.8
Deferred tax adjustments                                                                                                                  1.9
EPRA net asset value                                                                                                                  2,839.0
EPRA net asset value per share (pence)(4)                                                                                                 334

(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 2017 was 850.6 million.

Investment, development and trading property

The revaluation loss on the Group's property portfolio was GBP17.1 million for the period, representing a 0.4 per cent decrease in
value on a like-for-like basis compared with the IPD Capital Return for the equivalent period of 1.9 per cent. The Group
revaluation loss consists of a GBP36.1 million gain at Covent Garden and a GBP53.2 million loss at Earls Court.

Total property return for the period was 0.6 per cent. The IPD Total Return index recorded a 4.5 per cent return for the
corresponding period.

The revaluation loss of GBP17.1 million occurred on investment property. On an IFRS basis, which includes ECPL at 100 per cent
and does not include Lillie Square on a line by line basis, loss on revaluation and sale of investment and development property
was GBP47.3 million.

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. During the period GBP2.5 million of the unrealised trading property surplus has been realised. At 30 June 2018, the
unrecognised surplus on trading property was GBP29.3 million (31 December 2017: GBP31.8 million) which arises solely on the
Group's share of trading property at Lillie Square.

Debt and gearing

During the first half of the year the Group agreed terms for two 12 month extensions to the Lillie Square LP facility at the
borrower's option. As a result, assuming that both extensions are exercised, the Group's earliest repayment date on its facilities
is now May 2021.

The Group's cash and undrawn committed facilities at 30 June 2018 were GBP886.1 million (31 December 2017: GBP690.8 million).
A reconciliation between IFRS and Group share is shown below:
                                                                      30 June 2018                             31 December 2017
                                                                                   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                             48.9         24.3           (2.2)     71.0    28.6        25.7        (2.0)        52.3
Undrawn committed facilities                         799.4         46.9          (31.2)    815.1   637.9        33.1       (32.5)       638.5
Cash and undrawn committed facilities                848.3         71.2          (33.4)    886.1   666.5        58.8       (34.5)       690.8

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

Net debt decreased by GBP195 million to GBP539 million, principally as a result of the disposal of the Empress State Building, partly
offset by further investment into our assets and the acquisitions at Covent Garden. As set out in the summary adjusted balance
sheet, net debt on an IFRS basis was GBP567 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 16.6 per cent remains
comfortably within the Group's limit of no more than 40 per cent.

                                                                                                                     30 June      31 December
                                                                                                                        2018             2017
Loan to value                                                                                                          16.6%            21.3%
Interest cover                                                                                                          156%             170%
Weighted average debt maturity                                                                                     6.5 years        6.9 years
Weighted average cost of debt                                                                                           2.9%             2.8%
Gross debt with interest rate protection                                                                                 90%              91%

The Group's policy is to eliminate substantially 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 30 June 2018 the proportion of gross debt with interest rate protection was 90 per cent (31 December 2017: 91 per cent).

The Group remains compliant with all of its debt covenants, details of which are set out on page 55, and has substantial levels
of headroom against its covenants across all of its debt facilities.

At 30 June 2018 the Group had capital commitments of GBP82.3 million (GBP61.3 million at 31 December 2017). The increase
mainly relates to the signing of the construction contract for Phase 2 of Lillie Square. Capital commitments consist of GBP6.7
million for Covent Garden and GBP75.6 million for Earls Court Properties (including the GBP30.0 million of CLSA instalments and
GBP43.6 million in relation to Lillie Square).

                                                           30 June 2018                           31 December 2017
                                                                            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                           40.0          43.6           (1.3)       82.3    57.3          7.0           (3.0)         61.3

(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 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 investment property remains unrecognised in the condensed 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 GBP75 million paid to date, GBP15 million relates to the acquisition of two
properties, held as investment and development property, and GBP60 million relates to options over The Estates which is held as
a prepayment within other receivables. The remaining future payments totalling GBP30 million are disclosed as a capital
commitment as referred to above.

The prepayment balance will be transferred to investment and development property once the recognition criteria of investment
and development property have been met. 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 30 June 2018 is presented below:

SUMMARY CASH FLOW
                                                                                                      30 June 2018
                                                                                                                          Non-
                                                                                                      Joint        controlling          Group
                                                                                       IFRS     ventures(1)        interest(2)          share
                                                                                       GBPm            GBPm               GBPm           GBPm
Operating cash flows after interest and tax from continuing activities                (4.2)           (1.4)              (0.3)          (5.9)
Purchase and development of property, plant and equipment                            (58.7)          (12.3)                7.3         (63.7)
Transactions with joint venture partners and non-controlling interests                  4.2             1.1              (6.2)          (0.9)
Net sales proceeds from discontinued operation                                        (0.3)               -                  -          (0.3)
Sale of subsidiaries                                                                  250.4               -                  -          250.4
Net sales proceeds from property and investments                                          -            24.4                  -           24.4
Net cash flow before financing from continuing activities                             191.4            11.8                0.8          204.0
Issue of shares                                                                         0.1               -                  -            0.1
Financing                                                                           (162.2)          (14.3)              (1.0)        (177.5)
Dividends paid                                                                        (5.0)               -                  -          (5.0)
Other                                                                                 (4.0)               -                  -          (4.0)
Net cash flow(3)                                                                       20.3           (2.5)              (0.2)           17.6

(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 GBP1.1 million.

                                                                                                  30 June 2017
                                                                                                                          Non-
                                                                                                      Joint        controlling          Group
                                                                                     IFRS       ventures(1)        interest(2)          share
                                                                                     GBPm              GBPm               GBPm           GBPm
Operating cash flows after interest and tax from continuing activities              (3.2)               2.2              (0.1)          (1.1)
Purchase and development of property, plant and equipment                          (76.9)            (17.2)                7.0         (87.1)
Transactions with joint venture partners and non-controlling interests              (3.6)               0.7                0.2          (2.7)
Net sales proceeds from discontinued operation                                      228.6                 -                  -          228.6
Net sales proceeds from property and investments                                      7.9              33.9                  -           41.8
Net cash flow before financing from continuing activities                           152.8              19.6                7.1          179.5
Issue of shares                                                                       0.2                 -                  -            0.2
Financing                                                                         (160.4)            (18.6)              (5.6)        (184.6)
Dividends paid                                                                      (3.7)                 -                  -          (3.7)
Transfers with discontinued operation(3)                                              5.7                 -                  -            5.7
Net cash flow from continuing activities                                            (5.4)               1.0                1.5          (2.9)

(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 GBP4.2 million.

Operating cash outflows of GBP5.9 million are as a result of changes in net working capital requirements.

During the period, GBP37.6 million was invested at Covent Garden for the purchase of three properties and subsequent
expenditure for the development of property predominantly at Floral Court. At Earls Court, total expenditure of GBP26.1 million
primarily relates to enablement works on ECPL land including the acquisition of the final residential unit at Empress Place and
the construction of Lillie Square Phase 2.

The disposal of the Empress State Building through the disposal of subsidiaries resulted in a net inflow of GBP249.1 million after
transaction-related costs. The proceeds were used to reduce the Group's net debt position and will be deployed in Capco's
core central London estates.

Net sales proceeds from trading property of GBP24.4 million (Group share) relates to the disposal of 35 units at Lillie Square.

Net borrowings repaid during the period were GBP177.5 million.

Dividends paid of GBP5.0 million reflect the final dividend payment made in respect of the 2017 financial year. This was higher
than the previous year due to a lower take up of the scrip dividend alternative, 40 per cent versus 56 per cent for the final
dividend in 2016.

Cash and cash equivalents has increased by GBP18.7 million to GBP71.0 million, which includes GBP32.7 million of Lillie Square
deposits.

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 certain other
items and therefore represents the recurring, underlying performance of the business.

SUMMARY INCOME STATEMENT         
                                                                                                           30 June 2018
                                                                                                                           Non-
                                                                                                              Joint     controlling     Group
                                                                                              IFRS      ventures(1)     interest(2)     share
                                                                                              GBPm             GBPm            GBPm      GBPm
Net rental income                                                                             33.6            (0.1)           (0.4)      33.1
Loss on revaluation and sale of investment and development property                         (47.3)              0.1            30.1    (17.1)
Administration expenses                                                                     (19.7)              0.3             0.2    (19.2)
Net finance costs                                                                            (9.4)                -               -     (9.4)
Taxation                                                                                     (1.8)                -               -     (1.8)
Other                                                                                         37.9            (0.3)               -      37.6
Non-controlling interest                                                                      29.9                -          (29.9)         -
Profit for the year attributable to owners of the Parent from continuing          
operations                                                                                    23.2                -               -      23.2
Adjustments:          
Loss on revaluation and sale of investment and development property                                                                      17.1
Other                                                                                                                                  (36.7)
Taxation on non-underlying items                                                                                                          0.7
Underlying earnings from continuing operations                                                                                            4.3
Underlying earnings per share (pence)                                                                                                     0.5
Weighted average number of shares                                                                                                      850.4m

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

                                                                                                     Re-presented 30 June 2017
                                                                                                                             Non-
                                                                                                            Joint     controlling       Group
                                                                                              IFRS    ventures(1)     interest(2)       share
                                                                                              GBPm           GBPm            GBPm        GBPm
Net rental income                                                                             32.4          (0.2)           (0.4)        31.8
Gain on revaluation and sale of investment and development property                           12.2            0.2             6.2        18.6
Administration expenses                                                                     (21.4)          (0.2)             0.2      (21.4)
Net finance costs                                                                            (9.6)          (0.5)               -      (10.1)
Taxation                                                                                     (0.1)              -               -       (0.1)
Other                                                                                          8.8            0.7             0.3         9.8
Non-controlling interest                                                                       6.3              -           (6.3)           -
Profit for the year attributable to owners of the Parent from continuing operations           28.6              -               -        28.6
Adjustments:
Gain on revaluation and sale of investment and development property                                                                    (18.6)
Other                                                                                                                                   (8.5)
Taxation on non-underlying items                                                                                                        (0.2)
Underlying earnings from continuing operations                                                                                            1.3
Underlying earnings from discontinued operation                                                                                           3.3
Underlying earnings                                                                                                                       4.6
Underlying earnings per share (pence):        
From continuing operations                                                                                                                0.1
From discontinued operation                                                                                                               0.4
Underlying earnings per share (pence)                                                                                                     0.5
Weighted average number of shares                                                                                                      849.2m

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

Income

Net rental income has increased by GBP1.3 million compared to the first half of 2017 as a result of the positive performance of
Covent Garden (up 11.6 per cent like-for-like). The net increase of GBP1.3 million was driven by GBP2.6 million of additional income
on the like-for-like Covent Garden portfolio as the Group continues to convert reversionary potential into contracted rents. Other
movements consist of GBP2.3 million from acquisitions and properties currently held in development, GBP0.4 million like-for-like
increase at Earls Court Properties, and the effect of disposals.

At Covent Garden gross income has increased by 5.8 per cent from GBP60.1 million at 31 December 2017 to GBP63.6 million whilst
ERV has increased by 2.4 per cent from GBP104.8 million to GBP107.3 million over the period.

Loss on revaluation of investment and development property

The loss on revaluation of the Group's investment and development property was GBP17.1 million. Covent Garden recorded a
gain on revaluation of GBP36.1 million as a result of rental growth. The loss on revaluation at Earls Court of GBP53.2 million was
driven by changes in valuers' assumptions.

Administration expenses

Administration expenses have decreased by GBP2.2 million in comparison with the first half of 2017 due to efficiency initiatives.

Net finance costs

Net finance costs have decreased to GBP9.4 million due to the lower level of average borrowings during the period.

Taxation

The total tax charge for the first half of the year, of GBP1.8 million, is made up of both underlying tax and non-underlying tax.

Tax on underlying profits of the Group was GBP1.1 million which reflects a rate in line with the current rate of UK corporation tax.
The main rate of corporation tax reduced from 20 per cent to 19 per cent from 1 April 2017. The corporation tax rate will further
reduce to 17 per cent from 1 April 2020.

Contingent tax, being the amount of tax that would become payable on a theoretical disposal of all investment property held by
the Group, as at 30 June 2018 is nil (31 December 2017: nil). A disposal of the Group's trading properties at their market value,
net of available losses, would result in a corporation tax charge to the Group of GBP1.7 million (19 per cent of GBP9.0 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 is available on the Group website, 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 legislation 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 an interim dividend of 0.5 pence per share to be paid on 21 September 2018 to shareholders on the
register at 31 August 2018. Subject to SARB approval, the Board intends to offer a scrip dividend alternative.

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.

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 & Director of Corporate Services and the Group 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 are established. A full risk review is undertaken annually in which 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 period. 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 for the
year ended 31 December 2017, 'Critical accounting judgements and key sources of estimation and uncertainty'.

Since the EU Referendum, there has been economic and political uncertainty and this is expected to continue into the
foreseeable future. As the date at which the UK is set to depart from the EU approaches, there may be an increased level of
volatility in consumer, occupier and broader corporate decision-making. To date, there has been no adverse impact on
occupier demand for the Covent Garden estate, which has seen strong rental growth. At Earls Court, valuation of residential-led
development land has been impacted by the overall economic and political backdrop.

The political framework for large scale residential development has become more difficult. The Government continues to review
housing and planning policy which may result in beneficial or adverse change for landowners.

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 2018
Economic conditions
Decline in real estate valuations due      Reduced return on investment        Focus on prime assets                              -
to macro-economic conditions               and development property
                                                                               Regular assessment of investment
Relative attractiveness of other asset     Higher finance costs                market conditions including bi-annual
classes or locations                                                           external valuations
                                           Reduced profitability
Inability of the Group to adopt the                                            Regular strategic reviews
appropriate strategy or to react to
                                                                               Strategic focus on creating retail
changing market conditions or                                                  destinations and residential districts
changing consumer behaviour                                                    with unique attributes

Funding
Lack of availability or increased cost     Reduced financial and operational   Maintain appropriate liquidity to                   -
of debt or equity funding                  flexibility                         cover commitments
                                           Increased cost of borrowing         Target longer and staggered debt
                                           Delay to development works          maturities, and diversified sources
                                           Constrained growth, lost            of funding                    
                                           opportunities                       Consideration of early refinancing

                                                                               Derivative contracts to provide
                                                                               interest rate protection
                                                                               Development phasing to enable
                                                                               flexibility and reduce financial exposure
                                                                               
                                                                               Covenant headroom monitored and
                                                                               stress tested

Political climate
Uncertain political climate or changes Inability to deliver business plan      Monitoring proposals and emerging                  -
to legislation and policies                                                    policy and legislation
                                                                               Engagement with key stakeholders
                                                                               and politicians
Catastrophic external event
Such as a terrorist attack, health         Diminishing London's status         Terrorist insurance                                -
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 to    Counter Terrorism Security Office
                                           property                            (NaCTSO) and local authorities
                                           Reputational damage                 Regular training

People
Inability to retain the right people and   Inability to execute strategy and   Succession planning, performance
develop leadership skills within the       business plan                       evaluations, training and development             -           
business                                   Constrained growth, lost            Long-term and competitive incentive
                                           opportunities                       rewards

Health, safety and the environment
Accidents causing loss of life or very     Prosecution for non-compliance      Health and safety procedures                      -
serious injury to employees,               with legislation                    across the Group
contractors, occupiers and visitors to     Litigation or fines                 Appointment of reputable contractors
the Group's properties                     Reputational damage                 External consultants undertake               
Activities at the Group's properties                                           annual audits in all locations
causing detrimental impact on the          
environment                                Distraction of management           Adequate insurance held to cover
                                                                               the risks inherent in construction
                                                                               projects

Compliance with law, regulations and contracts
Breach of legislation, regulation or       Prosecution for non-compliance      Appointment of external advisers                  -
contract                                   with legislation                    to monitor changes in law or
Inability to monitor or anticipate legal   Litigation or fines                 regulation
or regulatory changes                      Reputational damage                 Members of staff attend external
                                                                               briefings to remain cognisant of
                                           Distraction of management           legislative and regulatory
                                                                               changes

PROPERTY
Risk                                       Impact on strategy                  Mitigation                                  Change in 2018

Leasing
Inability to achieve target rents or to    Decline in tenant demand for the    Quality tenant mix                          Whilst there has been
attract target tenants due to market       Group's properties                  Strategic focus on creating retail          a deterioration in
conditions                                 Reduced income                      destinations with unique attributes         sentiment around
                                                                                                                           certain segments of
Competition from other locations/                                                                                          the retail market, to 
formats                                    Reduced return on investment                                                    date, there has been 
                                           and development property                                                        no adverse impact at
                                                                                                                           Covent Garden 
                
Planning
Unfavourable planning policy or            Impact on future land valuations    Outline planning permission already               -
legislation impacting on the ability to                                        granted for the Earls Court Masterplan
secure future planning approvals or                                            Engagement with local and national      
consents                                                                       authorities
Secretary of State or Mayoral
intervention or judicial review                                                Pre-application and consultation with
                                                                               key stakeholders and landowners
                                                                               Engagement with local community
                                                                               bodies
Developments
Decline in returns from development        Lower development returns due to    Focus on prime assets                               -
and impact on land valuations due to:      lower sales proceeds, higher        Regular assessment of market
                                           costs or delay
-      Market conditions                                                       conditions and development strategy
-      Site constraints leading to an                                          Business strategy based on long-term
       increase in overall development                                         returns
       costs                                                                   Professional teams in place to
-      Increased construction costs or                                         manage costs and deliver programme
       delays (including as a result of                                        Earls Court Masterplan designed to
       complexity of developing
                                                                               allow phased implementation
       adjacent to and above public
       transport infrastructure)
-      Failure to implement strategic
       agreements (including with
       adjacent landowners) on
       acceptable terms

DIRECTORS' RESPONSIBILITIES

Statement of Directors' responsibilities

The Directors confirm that these condensed consolidated interim financial statements have been prepared in accordance with
International Accounting Standard 34, 'Interim Financial Reporting', as adopted by the European Union and that the interim
management report includes a fair review of the information required by Disclosure and Transparency Rules (DTR) 4.2.7 and
4.2.8, namely:

   -     an indication of important events that have occurred during the first six months and their impact on the condensed set
         of financial statements, and a description of the principal risks and uncertainties for the remaining six months of the
         financial year; and

   -     material related-party transactions in the first six months and any material changes in the related-party transactions
         described in the last annual report.

The Directors of Capital & Counties Properties PLC are listed in the Capital & Counties Properties PLC Annual Report for 31
December 2017. A list of current Directors is maintained on the Capital & Counties Properties PLC website:
www.capitalandcounties.com.

By order of the Board

Ian Hawksworth                                                       Situl Jobanputra
Chief Executive                                                      Chief Financial Officer
24 July 2018                                                         24 July 2018

INDEPENDENT REVIEW REPORT TO CAPITAL & COUNTIES PROPERTIES PLC

Report on the condensed consolidated financial statements

Our conclusion

We have reviewed Capital & Counties Properties PLC's condensed consolidated financial statements (the "interim financial
statements") in the interim results of Capital & Counties Properties PLC for the six month period ended 30 June 2018. Based
on our review, nothing has come to our attention that causes us to believe that the interim financial statements are not
prepared, in all material respects, in accordance with International Accounting Standard 34, 'Interim Financial Reporting', as
adopted by the European Union and the Disclosure Guidance and Transparency Rules sourcebook of the United Kingdom's
Financial Conduct Authority.

What we have reviewed

The interim financial statements comprise:

-    the Consolidated Balance Sheet as at 30 June 2018;
-    the Consolidated Income Statement and Consolidated Statement of Comprehensive Income for the period then
     ended;
-    the Consolidated Statement of Cash Flows for the period then ended;
-    the Consolidated Statement of Changes in Equity for the period then ended; and
-    the explanatory notes to the interim financial statements.

The interim financial statements included in the interim results have been prepared in accordance with International Accounting
Standard 34, 'Interim Financial Reporting', as adopted by the European Union and the Disclosure Guidance and Transparency
Rules sourcebook of the United Kingdom's Financial Conduct Authority.

As disclosed in note 1 to the interim financial statements, the financial reporting framework that has been applied in the
preparation of the full annual financial statements of the Group is applicable law and International Financial Reporting
Standards (IFRSs) as adopted by the European Union.

Responsibilities for the interim financial statements and the review
Our responsibilities and those of the Directors
The interim results, including the interim financial statements, is the responsibility of, and has been approved by, the Directors.
The Directors are responsible for preparing the interim results in accordance with the Disclosure Guidance and Transparency
Rules sourcebook of the United Kingdom's Financial Conduct Authority.

Our responsibility is to express a conclusion on the interim financial statements in the interim results based on our review. This
report, including the conclusion, has been prepared for and only for the Company for the purpose of complying with the
Disclosure Guidance and Transparency Rules sourcebook of the United Kingdom's Financial Conduct Authority and for no
other purpose. We do not, in giving this conclusion, accept or assume responsibility for any other purpose or to any other
person to whom this report is shown or into whose hands it may come save where expressly agreed by our prior consent in writing.

What a review of interim financial statements involves

We conducted our review in accordance with International Standard on Review Engagements (UK and Ireland) 2410, 'Review
of Interim Financial Information Performed by the Independent Auditor of the Entity' issued by the Auditing Practices Board for
use in the United Kingdom. A review of interim financial information consists of making enquiries, primarily of persons
responsible for financial and accounting matters, and applying analytical and other review procedures.

A review is substantially less in scope than an audit conducted in accordance with International Standards on Auditing (UK)
and, consequently, does not enable us to obtain assurance that we would become aware of all significant matters that might be
identified in an audit. Accordingly, we do not express an audit opinion.

We have read the other information contained in the interim results and considered whether it contains any apparent
misstatements or material inconsistencies with the information in the interim financial statements.

PricewaterhouseCoopers LLP
Chartered Accountants
London
24 July 2018

CONSOLIDATED INCOME STATEMENT (UNAUDITED)
For the six months ended 30 June 2018
                                                                                                                  Re-presented
                                                                                                 Six months         Six months           Year
                                                                                                      ended              ended          ended
                                                                                                    30 June            30 June    31 December
                                                                                                       2018               2017           2017
                                                                                    Notes              GBPm               GBPm           GBPm
Continuing operations
Revenue                                                                                2               42.3               43.7           87.7
Rental income                                                                                          40.5               37.7           80.0
Rental expenses                                                                                       (6.9)              (5.3)         (13.1)
Net rental income                                                                      2               33.6               32.4           66.9
Profit on sale of trading property                                                     3                  -                1.0            0.9
Other income                                                                                            1.8                2.1            3.8
(Loss)/gain on revaluation and sale of investment and development property             4             (47.3)               12.2         (90.9)
Impairment of other receivables                                                        5              (2.3)              (3.3)          (1.3)
Profit on sale of subsidiaries                                                         6               29.6                  -              -
                                                                                                       15.4               44.4         (20.6)
Administration expenses                                                                              (19.7)             (21.4)         (38.8)
Operating (loss)/profit                                                                               (4.3)               23.0         (59.4)

Finance income                                                                         7                0.1               0.5             0.8
Finance costs                                                                          8              (9.5)            (10.1)          (19.9)
Other finance income                                                                   7                6.3               5.5            11.7
Change in fair value of derivative financial instruments                                                2.5               3.6             4.3
Net finance costs                                                                                     (0.6)             (0.5)           (3.1)
                                                                                                      (4.9)              22.5          (62.5)
Share of post-tax loss from joint ventures                                            14                  -             (0.1)               -
(Loss)/profit before tax                                                                              (4.9)              22.4          (62.5)
Current tax                                                                                           (1.1)             (1.2)           (1.7)
Deferred tax                                                                                          (0.7)               1.1           (5.0)
Taxation                                                                               9              (1.8)             (0.1)           (6.7)
(Loss)/profit for the period from continuing operations                                               (6.7)              22.3          (69.2)
Discontinued operation
Profit for the period from discontinued operation                                     10                  -               6.1             6.1
(Loss)/profit for the period                                                                          (6.7)              28.4          (63.1)
Profit/(loss) attributable to:
Owners of the Parent                                                                                   23.2              34.7           (0.4)
Non-controlling interest                                                              15             (29.9)             (6.3)          (62.7)
Earnings per share attributable to owners of the Parent(1)
Basic and diluted earnings/(loss) per share                                           12               2.7p              4.1p          (0.1)p
Earnings per share from continuing operations attributable to owners
of the Parent(1)
Basic and diluted earnings/(loss) per share                                           12               2.7p              3.4p          (0.8)p
Weighted average number of shares                                                     12             850.4m            849.2m          850.0m

(1) Earnings per share from discontinued operation are shown in note 12 'Earnings Per Share and Net Assets Per Share'.

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME (UNAUDITED)  
For the six months ended 30 June 2018                          
                                                                                                                Re-presented
                                                                                                  Six months      Six months             Year
                                                                                                       ended           ended            ended
                                                                                                     30 June         30 June      31 December
                                                                                                        2018            2017             2017
                                                                                       Notes            GBPm            GBPm             GBPm
(Loss)/profit for the period                                                                           (6.7)            28.4           (63.1)
Total comprehensive (expense)/income for the period                                                    (6.7)            28.4           (63.1)
Attributable to:                          
Owners of the Parent                                                                                    23.2            34.7            (0.4)
Non-controlling interest                                                                 15           (29.9)           (6.3)           (62.7)
Arising from:                            
Continuing operations                                                                                  (6.7)            22.3           (69.2)
Discontinued operation                                                                                     -             6.1              6.1
                          
CONSOLIDATED BALANCE SHEET (UNAUDITED)                          
As at 30 June 2018                                                         
                                                                                                                        As at           As at
                                                                                                                      30 June     31 December
                                                                                                                         2018            2017
                                                                                                              Notes      GBPm            GBPm
Non-current assets                                                         
Investment and development property                                                                             13    3,426.1         3,645.7
Plant and equipment                                                                                                       3.7             4.6
Investment in joint ventures                                                                                    14       16.9            16.9
Derivative financial instruments                                                                                20        1.0               -
Deferred tax                                                                                                    21        7.6             7.8
Trade and other receivables                                                                                     16      235.1           224.5
                                                                                                                      3,690.4         3,899.5
Current assets                                                         
Trading property                                                                                                13          -               -
Trade and other receivables                                                                                     16       34.8            33.1
Cash and cash equivalents                                                                                       17       48.9            28.6
                                                                                                                         83.7            61.7
Total assets                                                                                                          3,774.1         3,961.2
Non-current liabilities                                                         
Borrowings, including finance leases                                                                            19    (615.2)         (776.2)
Derivative financial instruments                                                                                20          -           (5.5)
Trade and other payables                                                                                                    -           (0.3)
                                                                                                                      (615.2)         (782.0)
Current liabilities                                                         
Borrowings, including finance leases                                                                            19      (0.7)           (0.7)
Other provisions                                                                                                        (2.0)           (2.0)
Tax liabilities                                                                                                         (2.4)           (1.8)
Trade and other payables                                                                                        18     (52.5)          (69.1)
                                                                                                                       (57.6)          (73.6)
Total liabilities                                                                                                     (672.8)         (855.6)
Net assets                                                                                                            3,101.3         3,105.6
Equity                                                         
Share capital                                                                                                   22      212.6           212.2
Other components of equity                                                                                            2,606.7         2,587.6
Equity attributable to owners of the Parent                                                                           2,819.3         2,799.8
Non-controlling interest                                                                                        15      282.0           305.8
Total equity                                                                                                          3,101.3         3,105.6

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY (UNAUDITED)
For the six months ended 30 June 2018
                                                                  Equity attributable to owners of the Parent
                                                                              Share-
                                                                               based                                         Non-
                                               Share     Share     Merger    payment      Other    Retained           controlling       Total
                                             capital   premium    reserve    reserve   reserves    earnings     Total    interest      equity
                                       Notes    GBPm      GBPm       GBPm       GBPm       GBPm        GBPm      GBPm        GBPm        GBPm
Balance at 1 January 2018                      212.2     221.1      425.8        6.3      (0.6)     1,935.0   2,799.8       305.8     3,105.6
Profit/(loss) for the period                       -         -          -          -          -        23.2      23.2      (29.9)       (6.7)
Total comprehensive
income/(expense) for the period                    -         -          -          -          -        23.2      23.2      (29.9)       (6.7)
Transactions with owners   
  Ordinary shares issued                 22      0.4       3.5          -          -          -       (0.5)       3.4           -         3.4
  Dividends                              11        -         -          -          -          -       (8.5)     (8.5)           -       (8.5)
  Realisation of share-based payment
  reserve on issue of shares                       -         -          -      (0.1)          -           -     (0.1)           -       (0.1)
  Fair value of share-based payment                -         -          -        1.5          -           -       1.5           -         1.5
  Contribution from non-controlling                -         -          -          -          -           -         -         6.1         6.1
  interest
Total transactions with owners                   0.4       3.5          -        1.4          -       (9.0)     (3.7)         6.1         2.4
Balance at 30 June 2018                        212.6     224.6      425.8        7.7      (0.6)     1,949.2   2,819.3       282.0     3,101.3

                                                                    Equity attributable to owners of the Parent
                                                                              Share-
                                                                               based                                         Non-
                                            Share     Share      Merger      payment      Other   Retained            controlling       Total
                                          capital   premium     reserve      reserve   reserves   earnings     Total     interest      equity
                                  Notes      GBPm      GBPm        GBPm         GBPm       GBPm       GBPm      GBPm         GBPm        GBPm
Balance at 1 January 2017                   211.5     215.1       425.8          6.1      (0.7)    1,947.2   2,805.0        368.2     3,173.2
Loss for the period                             -         -           -            -          -       34.7      34.7        (6.3)        28.4
Total comprehensive expense for      
the period                                      -         -           -            -          -       34.7      34.7        (6.3)        28.4
Transactions with owners   
  Ordinary shares issued             22       0.6         -           -            -          -          -       0.6            -         0.6
  Dividends                          11         -         -           -            -          -      (8.5)     (8.5)            -       (8.5)
  Adjustment for bonus issue         11         -         -           -            -          -        4.8       4.8            -         4.8
  Realisation of share-base 
  payment reserve on issue o 
  shares                                        -         -           -        (1.7)          -        1.3     (0.4)            -       (0.4)
  Fair value of share-based
  payment                                       -         -           -          1.1          -          -       1.1            -         1.1
  Realisation of cash flow hedge                -         -           -            -        0.1          -       0.1            -         0.1
  Contribution from non-   
  controlling interest                          -         -           -            -          -          -         -          0.3         0.3
Total transactions with owners                0.6         -           -        (0.6)        0.1      (2.4)     (2.3)          0.3       (2.0)
Balance at 30 June 2017                     212.1     215.1       425.8          5.5      (0.6)    1,979.5   2,837.4        362.2     3,199.6

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY (UNAUDITED)
For the year ended 31 December 2017
                                                                     Equity attributable to owners of the Parent
                                                                               Share-
                                                                                based                                      Non-
                                                 Share      Share    Merger   payment     Other   Retained             controlling      Total
                                               capital    premium   reserve   reserve  reserves   earnings      Total     interest     equity
                                        Notes     GBPm       GBPm      GBPm      GBPm      GBPm       GBPm       GBPm         GBPm       GBPm
Balance at 1 January 2017                        211.5      215.1     425.8       6.1     (0.7)    1,947.2    2,805.0        368.2    3,173.2
Loss for the year                                    -          -         -         -         -      (0.4)      (0.4)       (62.7)     (63.1)
Total comprehensive expense for      
the year ended 31 December 2017                      -          -         -         -         -      (0.4)      (0.4)       (62.7)     (63.1)
Transactions with owners                
  Ordinary shares issued                  22       0.7        6.0         -         -         -      (0.5)        6.2            -        6.2
  Dividends                               11         -          -         -         -         -     (12.7)     (12.7)            -     (12.7)
  Realisation of share-based      
  payment reserve on issue of     
  shares                                             -          -         -     (1.8)         -        1.6      (0.2)            -      (0.2)
  Fair value of share-based       
  payment                                            -          -         -       2.0         -          -        2.0            -        2.0
  Realisation of cash flow hedge                     -          -         -         -       0.1          -        0.1            -        0.1
  Tax relating to share-based      
  payment                                 21         -          -         -         -         -      (0.2)      (0.2)            -      (0.2)
  Contribution from non-                
  controlling interest                               -          -         -         -         -          -          -          0.3        0.3
Total transactions with owners                     0.7        6.0         -       0.2       0.1     (11.8)      (4.8)          0.3      (4.5)
Balance at 31 December 2017                      212.2      221.1     425.8       6.3     (0.6)    1,935.0    2,799.8        305.8    3,105.6

CONSOLIDATED STATEMENT OF CASH FLOWS (UNAUDITED)
For the six months ended 30 June 2018
                                                                                           Six months           Six months               Year
                                                                                                ended                ended              ended
                                                                                              30 June              30 June        31 December
                                                                                                 2018                 2017               2017
                                                                               Notes             GBPm                 GBPm               GBPm
Cash flows from continuing operating activities
Cash generated from operations                                                    25              7.1                  6.8                5.8
Interest paid                                                                                  (10.4)                (9.7)             (18.4)
Interest received                                                                                 0.1                  0.3                0.6
Tax paid                                                                                        (1.0)                (0.6)              (1.2)
Net cash outflow from continuing operating activities                                           (4.2)                (3.2)             (13.2)
Net cash inflow from discontinued operating activities                            10                -                  7.6                7.6
Net cash (outflow)/inflow from operating activities                                             (4.2)                  4.4              (5.6)
Cash flows from investing activities
Purchase and development of property                                                           (58.7)               (76.9)            (211.2)
Sale of property                                                                                    -                 12.4               17.1
Investment in joint venture                                                                         -                (1.9)              (1.9)
Sale of discontinued operation                                                                  (0.3)                228.6              226.0
Sale of subsidiaries(1)                                                                         250.4                (4.5)              (4.5)
Loan advances (to)/from joint ventures                                                          (1.9)                (1.7)               15.2
Net cash inflow from continuing investing activities                                            189.5                156.0               40.7
Net cash outflow from discontinued investing activities                           10                -                (2.4)              (2.4)
Net cash inflow from investing activities                                                       189.5                153.6               38.3
Cash flows from financing activities
Issue of shares                                                                                   0.1                  0.2                0.3
Borrowings drawn                                                                                 22.8                170.1              558.7
Borrowings repaid                                                                             (185.0)              (330.5)            (575.5)
Purchase and repayment of derivative financial instruments                                      (4.0)                    -              (4.1)
Other finance costs                                                                                 -                    -              (2.0)
Cash dividends paid                                                               11            (5.0)                (3.7)              (6.7)
Contribution from non-controlling interest                                                        6.1                  0.3                0.3
Transactions with discontinued operation(2)                                                         -                  5.4                5.4
Net cash outflow from continuing financing activities                                         (165.0)              (158.2)             (23.6)
Net cash outflow from discontinued financing activities                           10                -                (5.4)              (5.4)
Net cash outflow from financing activities                                                    (165.0)              (163.6)             (29.0)
Net increase/(decrease) in cash and cash equivalents                                             20.3                (5.6)                3.7
Unrestricted cash and cash equivalents at 1 January                                              28.6                 24.9               24.9
Unrestricted cash and cash equivalents at period end                                             48.9                 19.3               28.6

(1) Sale of subsidiaries includes GBP249.1 million relating to the sale of the Empress State Building and GBP1.3 million (December 2017: GBP0.5 million) related to deferred
    consideration on the disposal of The Brewery by EC&O Limited on 9 February 2012. Further information on the sale of the Empress State Building can be found in
    note 6 'Profit on Sale of Subsidiaries'.
(2) Relates to transactions between the Group's treasury function and discontinued operations. The Group operates a central treasury function which manages and
    monitors the Group's cash balances.

NOTES TO THE ACCOUNTS (UNAUDITED)

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 and Earls Court.

Basis of preparation

The Group's condensed consolidated financial statements are prepared in accordance with the Disclosure and Transparency
Rules of the Financial Conduct Authority and with IAS 34 'Interim Financial Reporting' as adopted by the European Union. The
condensed consolidated financial statements should be read in conjunction with the Annual Report & Accounts for the year
ended 31 December 2017, which have been prepared in accordance with IFRSs as adopted by the European Union. The
condensed consolidated financial statements are prepared in British pounds sterling.

The condensed consolidated financial statements for the six months ended 30 June 2018 are reviewed, not audited and do not
constitute statutory accounts within the meaning of Section 434 of the Companies Act 2006. Statutory accounts for the year
ended 31 December 2017 were approved by the Board of Directors on 20 February 2018 and delivered to the Registrar of
Companies. The auditors' report on those accounts was unqualified, did not contain an emphasis of matter paragraph and did
not contain a statement made under Section 498 of the Companies Act 2006.

The condensed 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.

There is no material seasonal impact on the Group's financial performance.

These condensed consolidated financial statements were approved by the Board of Directors on 24 July 2018.

The condensed consolidated financial statements have been prepared using the accounting policies, significant judgements,
key assumptions and estimates set out on pages 102 to 106 of the Group's Annual Report & Accounts for 2017.

Re-presentation of prior year comparatives

Profit on sale of discontinued operation of GBP2.9 million was disclosed on a separate line item within the Interim Results for the
six months ended 30 June 2017. This has been re-presented to be included within profit for the period from discontinued
operations which is in line with the 2017 Group's Annual Report & Accounts.

Critical accounting judgements and key sources of estimation and uncertainty
The preparation of condensed 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. This is consistent with the financial statements for the
previous year end. Full disclosure of the critical judgements, assumptions and estimates is included in the Group's Annual
Report & Accounts for 2017.

During 2018, the following accounting standards and interpretations have been adopted by the Group:
IFRS 2 'Share-based Payment' (amendment)
IFRS 9 'Financial instruments'
IFRS 15 'Revenue from contracts with customers'
IAS 28 'Investments in Associates' (amendment)
IAS 40 'Investment Property' (amendment)
Amendments to IFRS (Annual improvements cycle 2014-2016)

These pronouncements had no significant impact on the condensed 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:
IFRS 16 'Leases'
Amendments to IFRS (Annual improvements cycle 2015-2017)

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

As the Group is predominantly a lessor, IFRS 16 'Leases' will not have a material impact on adoption. Where the Group is
currently a lessee, this relates only to immaterial contracts.

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 condensed consolidated financial
statements have been prepared on a going concern basis.

2 SEGMENTAL REPORTING

Management has determined the operating segments based on reports reviewed by the Executive Directors, who are deemed
to be the chief operating decision makers. 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 three divisions:

-     Covent Garden;
-     Earls Court Properties represents the Group's interests in the Earls Court area, comprising properties held in ECPL, Lillie
      Square and a number of smaller properties in the Earls Court area; and
-     Other comprises Innova, the discontinued activity of Venues and The Great Capital Partnership, the Group's residual
      China investments, other head office companies and investments, including the payment of internal rent.

Management information is reported to the chief operating decision makers on a Group share basis. Outlined below is the
Group share by segment:
Segment                                                                                                                           Group share

Covent Garden                                                                                                                            100%
Earls Court Properties
    ECPL                                                                                                                                  63%
    Lillie Square                                                                                                                         50%
    Other                                                                                                                                100%
Other 
    Innova                                                                                                                                50%
    GCP                                                                                                                                   50%
    Venues(1)                                                                                                                              0%
    Other                                                                                                                                100%

(1) Venues was 100 per cent owned until 7 April 2017. Subsequent to this the Group share ownership is nil.

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.

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

Reportable segments
                                                                                 Six months ended 30 June 2018
                                                     Covent    Earls Court                       Group         Consolidation             IFRS
                                                     Garden     Properties       Other           total           adjustments            total
Continuing operations                                  GBPm           GBPm       GBPm             GBPm                  GBPm             GBPm
Rental income                                          34.4            5.6          -             40.0                   0.5             40.5
Proceeds from sale of trading property                    -           25.0          -             25.0                (25.0)                -
Other Income                                              -              -        0.9              0.9                   0.9              1.8
Revenue                                                34.4           30.6        0.9             65.9                (23.6)             42.3
Rent receivable                                        32.4            5.0          -             37.4                   0.5             37.9
Service charge income                                   2.0            0.6          -              2.6                     -              2.6
Rental income                                          34.4            5.6          -             40.0                   0.5             40.5
Rental expenses(1)                                    (6.1)          (0.7)      (0.1)            (6.9)                     -            (6.9)
Net rental income/(expense)                            28.3            4.9      (0.1)             33.1                   0.5             33.6
Profit on sale of trading property                        -            5.0          -              5.0                 (5.0)                -
Other income                                              -              -        0.9              0.9                   0.9              1.8
Gain/(loss) on revaluation and sale of   
investment and development property                    36.1         (53.3)        0.1           (17.1)                (30.2)           (47.3)
Profit on sale of subsidiaries                            -           29.6          -             29.6                     -             29.6
Write down of trading property                            -          (0.4)          -            (0.4)                   0.4                -
             Impairment of other receivables              -              -          -                -                 (2.3)            (2.3)
Segment result                                         64.4         (14.2)        0.9             51.1                (35.7)             15.4
Unallocated costs:
Administration expenses                                                                         (19.2)                 (0.5)           (19.7)
Operating profit/(loss)                                                                           31.9                (36.2)            (4.3)
Net finance costs(2)                                                                             (6.9)                   6.3            (0.6)
Profit/(loss) before tax                                                                          25.0                (29.9)            (4.9)
Taxation                                                                                         (1.8)                     -            (1.8)
Profit/(loss) for the period                                                                      23.2                (29.9)            (6.7)
Profit/(loss) attributable to:
Owners of the Parent                                                                              23.2                     -             23.2
Non-controlling interest                                                                             -                (29.9)           (29.9)
Summary balance sheet
Total segment assets(3)                             2,642.5          785.8       40.3          3,468.6                 262.3          3,730.9
Total segment liabilities(3)                        (598.6)         (86.3)      (7.6)          (692.5)                  19.7          (672.8)
Segmental net assets                                2,043.9          699.5       32.7          2,776.1                 282.0          3,058.1
Unallocated assets(2)                                                                             43.2                     -             43.2
Net assets                                                                                     2,819.3                 282.0          3,101.3
Other segment items:
Depreciation                                          (0.2)          (0.6)      (0.1)            (0.9)                 (0.1)            (1.0)
Capital expenditure                                  (32.5)         (23.4)          -           (55.9)                   8.2           (47.7)

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

Reportable segments
                                                                              Re-presented Six months ended 30 June 2017
                                                               Covent    Earls Court                    Group     Consolidation          IFRS
                                                               Garden     Properties        Other       total       adjustments         total
Continuing operations                                            GBPm           GBPm         GBPm        GBPm              GBPm          GBPm
Rental income                                                    28.6            9.0        (0.3)        37.3               0.4          37.7
Proceeds from sale of trading property                            3.9           34.7            -        38.6            (34.7)           3.9
Other Income                                                        -              -          1.3         1.3               0.8           2.1
Revenue                                                          32.5           43.7          1.0        77.2            (33.5)          43.7
Rent receivable                                                  26.6            9.0        (0.3)        35.3               0.4          35.7
Service charge income                                             2.0              -            -         2.0                 -           2.0
Rental income                                                    28.6            9.0        (0.3)        37.3               0.4          37.7
Rental expenses(1)                                              (5.2)          (0.3)            -       (5.5)               0.2         (5.3)
Net rental income/(expense)                                      23.4            8.7        (0.3)        31.8               0.6          32.4
Profit on sale of trading property                                1.0            4.4            -         5.4             (4.4)           1.0
Other income                                                        -              -          1.3         1.3               0.8           2.1
Gain/(loss) on revaluation and sale of  
investment and development property                              34.7         (16.1)            -        18.6             (6.4)          12.2
Write down of trading property                                      -          (0.5)            -       (0.5)               0.5             -
Impairment of other receivables                                     -              -            -           -             (3.3)         (3.3)
Segment profit/(loss)                                            59.1          (3.5)          1.0        56.6            (12.2)          44.4
Unallocated costs:
Administration expenses                                                                                (21.4)                 -        (21.4)
Operating profit/(loss)(2)                                                                               35.2            (12.2)          23.0
Net finance costs                                                                                       (6.5)               6.0         (0.5)
Share of post-tax loss from joint ventures                                                                  -             (0.1)         (0.1)
Profit/(loss) before tax                                                                                 28.7             (6.3)          22.4
Taxation                                                                                                (0.1)                 -         (0.1)
Profit/(loss) for the period from continuing
operations                                                                                               28.6             (6.3)          22.3
Discontinued operation
Profit for the period from discontinued
operation                                                                                                 6.1                -            6.1
Profit/(loss) for the period                                                                             34.7            (6.3)           28.4
Profit/(loss) attributable to:
Owners of the Parent                                                                                     34.7                -           34.7
Non-controlling interest                                                                                    -            (6.3)          (6.3)
Summary balance sheet
Total segment assets(3)                                      2,375.2        1,187.4          42.1     3,604.7            283.1        3,887.8
Total segment liabilities                                    (630.7)        (138.3)        (14.4)     (783.4)             79.1        (704.3)
Segmental net assets                                         1,744.5        1,049.1          27.7     2,821.3            362.2        3,183.5
Unallocated assets(2)                                                                                    16.1                -           16.1
Net assets                                                                                            2,837.4            362.2        3,199.6
Other segment items:
Depreciation                                                   (0.1)          (0.9)         (0.2)       (1.2)              0.1          (1.1)
Capital expenditure                                           (50.3)         (31.1)         (0.1)      (81.5)              8.0         (73.5)

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

Reportable segments
                                                                                             Year ended 31 December 2017
                                                                 Covent     Earls Court                    Group    Consolidation        IFRS
                                                                 Garden      Properties        Other       total      adjustments       total
Continuing operations                                              GBPm            GBPm         GBPm        GBPm             GBPm        GBPm
Rental income                                                      61.8            18.5        (0.5)        79.8              0.2        80.0
Proceeds from sale of trading property                              3.9            95.1            -        99.0           (95.1)         3.9
Other Income                                                          -               -          2.3         2.3              1.5         3.8
Revenue                                                            65.7           113.6          1.8       181.1           (93.4)        87.7
Rent receivable                                                    57.7            18.2        (0.5)        75.4              0.5        75.9
Service charge income                                               4.1             0.3            -         4.4            (0.3)         4.1
Rental income                                                      61.8            18.5        (0.5)        79.8              0.2        80.0
Rental expenses(1)                                               (12.9)           (0.7)            -      (13.6)              0.5      (13.1)
Net rental income/(expense)                                        48.9            17.8        (0.5)        66.2              0.7        66.9
Profit on sale of trading property                                  0.9            13.6            -        14.5           (13.6)         0.9
Other income                                                          -               -          2.3         2.3              1.5         3.8
Gain/(loss) on revaluation and sale of
investment and development property                                93.4         (121.4)            -      (28.0)           (62.9)      (90.9)
Write down of trading property                                        -           (0.6)            -       (0.6)              0.6           -
Impairment of other receivables                                       -               -            -           -            (1.3)       (1.3)
Segment profit/(loss)                                             143.2          (90.6)          1.8        54.4           (75.0)      (20.6)
Unallocated costs:
Administration expenses                                                                                   (38.7)            (0.1)      (38.8)
Operating profit/(loss)                                                                                     15.7           (75.1)      (59.4)
Net finance costs(2)                                                                                      (15.5)             12.4       (3.1)
Profit/(loss) before tax                                                                                     0.2           (62.7)      (62.5)
Taxation                                                                                                   (6.7)                -       (6.7)
Loss for the year from continuing
operations                                                                                                 (6.5)           (62.7)      (69.2)
Discontinued operation
Profit for the year from discontinued operation                                                              6.1                -         6.1
Loss for the year                                                                                          (0.4)           (62.7)      (63.1)
Loss attributable to
Owners of the Parent                                                                                       (0.4)                -       (0.4)
Non-controlling interest                                                                                       -           (62.7)      (62.7)
Summary balance sheet
Total segment assets(3)                                        2,565.4         1,056.0          40.8     3,662.2            275.7     3,937.9
Total segment liabilities(3)                                   (773.5)         (103.1)         (9.1)     (885.7)             30.1     (855.6)
Segmental net assets                                           1,791.9           952.9          31.7     2,776.5            305.8     3,082.3
Unallocated assets(2)                                                                                       23.3                -        23.3
Net assets                                                                                               2,799.8            305.8     3,105.6
Other segment items: 
Depreciation                                                      (0.3)          (1.5)         (0.3)       (2.1)              0.2        (1.9)
Capital expenditure                                             (177.3)         (56.2)         (0.1)     (233.6)             15.2      (218.4)

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

3 PROFIT ON SALE OF TRADING PROPERTY                                                                                                            
                                                                                                        Six months   Six months          Year   
                                                                                                             ended        ended         ended   
                                                                                                           30 June      30 June   31 December   
                                                                                                              2018         2017          2017   
Continuing operations                                                                                         GBPm         GBPm          GBPm   
Proceeds from the sale of trading property                                                                       -          3.9           3.9   
Cost of sale of trading property                                                                                 -        (2.8)         (2.9)   
Agent, selling and marketing fees                                                                                -        (0.1)         (0.1)   
Profit on sale of trading property                                                                               -          1.0           0.9   

4 (LOSS)/GAIN ON REVALUATION AND SALE OF INVESTMENT AND DEVELOPMENT PROPERTY

                                                                                                        Six months   Six months          Year   
                                                                                                             ended        ended         ended   
                                                                                                           30 June      30 June   31 December   
                                                                                                              2018         2017          2017   
Continuing operations                                                                                         GBPm         GBPm          GBPm   
(Loss)/gain on revaluation of investment and development property                                           (47.3)         12.2        (90.8)   
Loss on sale of investment and development property                                                              -            -         (0.1)   
(Loss)/gain on revaluation and sale of investment and development property                                  (47.3)         12.2        (90.9)   

5 IMPAIRMENT OF OTHER RECEIVABLES                                                                                                               
                                                                                                        Six months   Six months          Year   
                                                                                                             ended        ended         ended   
                                                                                                           30 June      30 June   31 December   
                                                                                                              2018         2017          2017   
Continuing operations                                                                                         GBPm         GBPm          GBPm   
Impairment of other receivables                                                                                2.3          3.3           1.3   

Following an impairment review of amounts receivable from joint ventures by the Group, a net impairment of GBP2.3 million has
been recognised (30 June 2017: GBP3.3 million). The Lillie Square joint venture incurs amortisation charges on deep discount
bonds that were issued to the Group and Kwok Family Interests ("KFI") which has contributed to the cumulative losses. The
Group has recognised GBP6.3 million (30 June 2017: GBP5.5 million) finance income on these deep discount bonds during the period.

The impairment of amounts receivable from joint venture is 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 nil (31 December 2017: nil) in accordance with
IAS 28 'Investment in Associates and Joint Ventures' ("IAS 28"). Refer to note 14 'Investment in Joint Ventures'.

An impairment assessment was performed in accordance with IFRS 9 'Financial instruments' comparing the carrying amount
of the intercompany debtor and deep discount bonds to the present value of the estimated future cash flows. This has resulted
in a write down of GBP2.3 million, of which GBP0.6 million has been recognised against the intercompany debtor (30 June 2017: GBP3.3
million) and GBP1.7 million against the deep discount bonds (30 June 2017: nil).

6 PROFIT ON SALE OF SUBSIDIARIES

On 26 March 2018, the Group completed the sale of the Empress State Building for total cash consideration of GBP250.0 million.
The disposal was effected by way of a sale of the entire issued share capital of Empress Holdings Limited and its subsidiaries
("Empress Holdings Group") which held the freehold interest in the Empress State Building. The disposal was in line with the
Group strategy of realising value at Earls Court over time. After transaction related costs, net proceeds received were GBP249.0
million. Based on the net assets at the date of disposal a profit has been recognised on the sale of GBP29.6 million.

Net assets at the date of disposal were as follows:

                                                                                                                                     26 March   
                                                                                                                                         2018   
                                                                                                                                         GBPm   
Investment and development property                                                                                                     220.0   
Other non-current liabilities                                                                                                           (0.6)   
Net assets                                                                                                                              219.4   
Net consideration(1)                                                                                                                    249.0   
Profit on disposal                                                                                                                       29.6   

(1) Sale of subsidiaries per the consolidated statement of cash flows at 30 June 2018 is GBP250.4 million. This differs to the net consideration above of GBP249.0 million by
    GBP1.4 million. This is due to accrued transaction costs of GBP0.1 million and GBP1.3 million relating to deferred consideration on the disposal of The Brewery by EC&O
    Limited on 9 February 2012.

7 FINANCE INCOME                                                                                                                                
                                                                                                        Six months   Six months          Year   
                                                                                                             ended        ended         ended   
                                                                                                           30 June      30 June   31 December   
                                                                                                              2018         2017          2017   
Continuing operations                                                                                         GBPm         GBPm          GBPm   
Finance income:                                                                                                                                 
On deposits and other                                                                                          0.1          0.5           0.8   
Finance income                                                                                                 0.1          0.5           0.8   
Other finance income:                                                                                                                           
On deep discount bonds(1)                                                                                      6.3          5.5          11.7   
Other finance income                                                                                           6.3          5.5          11.7   

(1) Excluded from the calculation of underlying earnings as deep discount bonds eliminate on a Group share basis.

8 FINANCE COSTS                                                                              
                                                                                                        Six months   Six months          Year   
                                                                                                             ended        ended         ended   
                                                                                                           30 June      30 June   31 December   
                                                                                                              2018         2017          2017   
Continuing operations                                                                                         GBPm         GBPm          GBPm   
Finance costs:                                                                                                                                  
On bank overdrafts, loans and other                                                                           11.2         11.3          22.7   
On obligations under finance leases                                                                            0.4          0.2           0.5   
Gross finance costs                                                                                           11.6         11.5          23.2   
Interest capitalised on property under development                                                           (2.1)        (1.4)         (3.3)   
Finance costs                                                                                                  9.5         10.1          19.9   

Interest is capitalised, before tax relief, on the basis of the weighted average cost of debt of 2.9 per cent (30 June 2017: 3.0 per
cent) applied to the cost of property under development during the period.

9 TAXATION                                                                                                      
                                                                                                        Six months   Six months          Year   
                                                                                                             ended        ended         ended   
                                                                                                           30 June      30 June   31 December   
                                                                                                              2018         2017          2017   
Continuing operations                                                                                         GBPm         GBPm          GBPm   
Current income tax:                                                                                                                             
Current income tax charge excluding non-underlying items                                                       1.0          1.2           0.9   
Current income tax                                                                                             1.0          1.2           0.9   
Deferred income tax:                                                                                                                            
On accelerated capital allowances                                                                              0.5          0.4           1.0   
On other items - non-exceptional                                                                             (0.5)            -             -   
On fair value of derivative financial instruments                                                              0.5          0.7           1.9   
On losses - exceptional                                                                                        0.2            -             -   
On Group losses                                                                                                  -        (1.9)           1.6   
On other temporary differences                                                                                   -        (0.3)           0.7   
Deferred income tax                                                                                            0.7        (1.1)           5.2   
Current income tax charge on non-underlying items                                                              0.1            -           0.8   
Adjustments in respect of previous periods - deferred income tax                                                 -            -         (0.2)   
Total income tax charge reported in the consolidated income statement                                          1.8          0.1           6.7   

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 DISCONTINUED OPERATION

On 7 April 2017, the Group completed the sale of Venues, its exhibition business, comprising Olympia London together with
certain related property assets for a total gross cash consideration of GBP296.0 million. The disposal was in line with the Group
strategy following the successful transition of shows from the former Earls Court Exhibition Centres to Olympia. After the
repayment of debt, working capital adjustments and transaction related costs, net proceeds received were GBP230.2 million.
Based on the net assets at the date of disposal a profit has been recognised on the sale of GBP2.1 million. As part of the sale, the
defined benefit scheme the Group previously held was sold to the purchaser and therefore the Group has no outstanding
liability in relation to the scheme.

The net assets at the date of disposal were as follows:

                                                                                                                                      7 April   
                                                                                                                                         2017   
                                                                                                                                         GBPm   
Investment and development property                                                                                                     292.8   
Other non-current assets                                                                                                                  0.8   
Pension asset                                                                                                                             1.4   
Cash and cash equivalents(1)                                                                                                             10.8   
Other current assets                                                                                                                      8.9   
Other current liabilities                                                                                                              (15.9)   
Deferred tax                                                                                                                           (15.7)   
Borrowings                                                                                                                             (55.0)   
Net assets                                                                                                                              228.1   
Net consideration(2)                                                                                                                    230.2   
Profit on disposal                                                                                                                        2.1   

(1) Cash and cash equivalents include GBP6.0 million of restricted cash and cash equivalents.
(2) Sale of discontinued operation as per the consolidated statement of cash flows as at 31 December 2017 is GBP226.0 million. This differs to the net consideration
    above of GBP230.2 million by GBP4.2 million. This is due to accrued transaction costs of GBP0.6 million less unrestricted cash and cash equivalents disposed of with the
    transaction of GBP4.8 million.

The Venues results which have been included in the income statement as discontinued operation were:

                                                                                                                                       Period   
                                                                                                                                        ended   
                                                                                                                                      7 April   
                                                                                                                                         2017   
Summary income statement                                                                                                                 GBPm   
Revenue                                                                                                                                  10.2   
Net rental income                                                                                                                         7.2   
Administration expenses                                                                                                                 (2.7)   
Operating profit                                                                                                                          4.5   
Net finance costs                                                                                                                       (0.5)   
Profit on disposal                                                                                                                        2.1   
Profit for the period from discontinued operation                                                                                         6.1   
Underlying earnings adjustments                                                                                                                 
Change in fair value of derivative financial instruments                                                                                  0.1   
Profit on disposal                                                                                                                      (2.1)   
Underlying earnings from discontinued operation                                                                                           4.1   

The Venues cash flows which have been included in the statement of cash flow as discontinued operation were:

                                                                                                                                       Period   
                                                                                                                                        ended   
                                                                                                                                      7 April   
                                                                                                                                         2017   
Summary statement of cash flows                                                                                                Note      GBPm   
Cash flows from operating activities                                                                                             25       8.0   
Interest paid                                                                                                                           (0.4)   
Net cash inflow from operating activities                                                                                                 7.6   
Purchase and development of property, plant and equipment                                                                               (0.1)   
Pension funding                                                                                                                         (2.3)   
Net cash outflow from investing activities                                                                                              (2.4)   
Transactions with Group by discontinued operation                                                                                       (5.4)   
Net cash outflow from financing activities                                                                                              (5.4)   
Net decrease in unrestricted cash and cash equivalents from discontinued operation                                                      (0.2)   
Unrestricted cash and cash equivalents at 1 January                                                                                       5.0   
Unrestricted cash and cash equivalents at period end                                                                                      4.8   

11 DIVIDENDS                                                                                                                                    
                                                                                                        Six months   Six months          Year   
                                                                                                             ended        ended         ended   
                                                                                                           30 June      30 June   31 December   
                                                                                                              2018         2017          2017   
                                                                                                              GBPm         GBPm          GBPm   
Ordinary shares                                                                                                                                 
Prior period final dividend of 1.0p per share                                                                  8.5          8.5           8.5   
Interim dividend of 0.5p per share                                                                               -            -           4.2   
Dividend expense                                                                                               8.5          8.5          12.7   
Shares issued in lieu of cash(1)                                                                                 -            -             -   
Bonus issue in lieu of cash dividends(2)                                                                     (3.5)        (4.8)         (6.0)   
Cash dividends paid                                                                                            5.0          3.7           6.7   
Proposed interim dividend of 0.5p per share                                                                    4.3          4.2             -   
Proposed final dividend of 1.0p per share                                                                        -            -           8.5   

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

12 EARNINGS PER SHARE AND NET ASSETS PER SHARE

a) Weighted average number of ordinary shares
                                                                                                        Six months   Six months          Year   
                                                                                                             ended        ended         ended   
                                                                                                           30 June      30 June   31 December   
                                                                                                              2018         2017          2017   
                                                                                                           million      million       million   
Weighted average ordinary shares in issue for calculation of basic earnings/(loss) per                                                          
shareO(1)                                                                                                    850.4        849.2         850.0   
Dilutive effect of contingently issuable share option awards                                                   0.8          0.7           0.6   
Dilutive effect of contingently issuable deferred share awards                                                 0.4          0.3           0.2   
Dilutive effect of contingently issuable matching nil cost option awards                                       0.1          0.1           0.1   
Dilutive effect of deferred bonus share option awards                                                          0.6          0.6           0.6   
Weighted average ordinary shares in issue for calculation of diluted earnings/(loss) per share               852.3        850.9         851.5   

(1) Weighted average number of shares in issue has been adjusted by 1.3 million (31 December 2017: 2.1 million) for the issue of bonus shares in connection with the
    scrip dividend scheme.

b) Basic and diluted earnings/(loss) per share                                                                           
                                                                                                                   Re-presented                 
                                                                                                      Six months     Six months          Year   
                                                                                                           ended          ended         ended   
                                                                                                         30 June        30 June   31 December   
                                                                                                            2018           2017          2017   
                                                                                                            GBPm           GBPm          GBPm   
Continuing and discontinued operations attributable to owners of the Parent                                                                     
Earnings/(loss) used for calculation of basic and diluted earnings per share                                23.2           34.7         (0.4)   
Basic earnings/(loss) per share (pence)                                                                      2.7            4.1         (0.1)   
Diluted earnings/(loss) per share (pence)                                                                    2.7            4.1         (0.1)   
Continuing operations attributable to owners of the Parent                                                                                      
Earnings/(loss) used for calculation of basic and diluted earnings per share                                23.2           28.6         (6.5)   
Basic earnings/(loss) per share (pence)                                                                      2.7            3.4         (0.8)   
Diluted earnings/(loss) per share (pence)                                                                    2.7            3.4         (0.8)   
Discontinued operation attributable to owners of the Parent                                                                                     
Earnings used for calculation of basic and diluted earnings per share                                          -            6.1           6.1   
Basic earnings per share (pence)                                                                               -            0.7           0.7   
Diluted earnings per share (pence)                                                                             -            0.7           0.7   

c) EPRA and underlying earnings per share                                                                                        
                                                                                                                   Re-presented                 
                                                                                                      Six months     Six months          Year   
                                                                                                           ended          ended         ended   
                                                                                                         30 June        30 June   31 December   
                                                                                                            2018           2017          2017   
                                                                                                            GBPm           GBPm          GBPm   
Continuing operations attributable to owners of the Parent                                                                                      
Basic earnings/(loss)                                                                                       23.2           28.6         (6.5)   
Group adjustments:                                                                                                                              
Profit on sale of trading property                                                                             -          (1.0)         (0.9)   
Loss/(gain) on revaluation and sale of investment and development property                                  47.3         (12.2)          90.9   
Change in fair value of derivative financial instruments                                                   (2.5)          (3.7)         (4.3)   
Deferred tax adjustments                                                                                     1.0            1.1           2.9   
Non-controlling interest in respect of the Group adjustments                                              (30.1)          (6.2)        (62.6)   
Joint venture adjustments:                                                                                                                      
Profit on sale of trading property(1)                                                                      (5.0)          (4.4)        (13.6)   
Gain on revaluation and sale of investment and development property                                        (0.1)          (0.1)         (0.3)   
Write down of trading property                                                                               0.4            0.5           0.6   
EPRA adjusted earnings on continuing operations(2)                                                          34.2            2.6           6.2   
Profit on sale of subsidiary                                                                              (29.6)              -             -   
Deferred tax adjustments                                                                                   (0.3)          (1.2)           1.1   
Change in fair value of derivative financial instruments from discontinued operation                           -          (0.1)             -   
Underlying earnings from continued operations                                                                4.3            1.3           7.3   
Underlying earnings from discontinued operation                                                                -            3.3           4.1   
Underlying earnings(2)                                                                                       4.3            4.6          11.4   
Underlying earnings per share (pence) from continuing operations                                             0.5            0.1           0.9   
Underlying earnings per share (pence) from discontinuing operation                                             -            0.4           0.4   
Underlying earnings per share (pence)                                                                        0.5            0.5           1.3   
EPRA earnings per share (pence)                                                                              4.0            0.3           0.7   

(1) Profit on sale of trading property relates to Lillie Square sales and includes GBP0.5 million (30 June 2017: GBP0.8 million) of marketing and selling fees on a Group share
    basis. Marketing fees include costs for units that have not yet completed.(
(2) EPRA earnings and underlying earnings have been reported on a Group share basis.

d) Headline earnings per share

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.

                                                                                                        Six months   Six months          Year   
                                                                                                             ended        ended         ended   
                                                                                                           30 June      30 June   31 December   
                                                                                                              2018         2017          2017   
                                                                                                              GBPm         GBPm          GBPm   
Continuing and discontinued operations attributable to owners of the Parent                                                                     
Basic earnings/(loss)                                                                                         23.2         34.7         (0.4)   
Group adjustments:                                                                                                                              
Loss/(gain) on revaluation and sale of investment and development property                                    47.3       (12.2)          90.9   
Deferred tax adjustments                                                                                         -            -           0.8   
Non-controlling interest in respect of the Group adjustments                                                (30.1)        (6.2)        (62.6)   
Joint venture adjustment:                                                                                                                       
Gain on revaluation and sale of investment and development property                                          (0.1)        (0.1)         (0.3)   
Headline earnings                                                                                             40.3         16.2          28.4   
Headline earnings per share (pence)                                                                            4.7          1.9           3.3   
Diluted headline earnings per share (pence)                                                                    4.7          1.9           3.3   

e) Net assets per share                                                                                           
                                                                                                                          As at         As at   
                                                                                                                        30 June   31 December   
                                                                                                                           2018          2017   
                                                                                                                        million       million   
Number of ordinary shares in issue                                                                                        850.4         849.1   
Adjustments:                                                                                                                                    
Effect of dilution on exercise of contingently issuable share option awards                                                 0.8           0.6   
Effect of dilution of contingently issuable deferred share awards                                                           0.4           0.2   
Effect of dilution on exercise of contingently issuable matching nil cost option awards                                     0.1           0.1   
Effect of dilution on exercise of deferred bonus share option awards                                                        0.6           0.6   
Adjusted, diluted number of ordinary shares in issue                                                                      852.3         850.6   
Net assets attributable to owners of the Parent                                                                         2,819.3       2,799.8   
Fair value of derivative financial instruments                                                                            (1.0)           5.5   
Unrecognised surplus on trading property - Joint venture                                                                   29.3          31.8   
Deferred tax adjustments                                                                                                    2.2           1.9   
EPRA NAV                                                                                                                2,849.8       2,839.0   
Fair value of derivative financial instruments                                                                              1.0         (5.5)   
Excess fair value of debt over carrying value                                                                               9.5         (9.2)   
Deferred tax adjustments                                                                                                  (2.2)         (1.9)   
EPRA NNNAV                                                                                                              2,858.1       2,822.4   
Basic net assets per share (pence)                                                                                        331.5         329.7   
Diluted net assets per share (pence)                                                                                      330.8         329.2   
EPRA NAV per share (pence)                                                                                                334.4         333.8   
EPRA NNNAV per share (pence)                                                                                              335.3         331.8   

13 PROPERTY PORTFOLIO

a) Investment and development property

                                                                                    Property portfolio                            Tenure
                                                                          Covent       Earls Court                                              
                                                                          Garden        Properties    Venues     Total   Freehold   Leasehold   
                                                                            GBPm              GBPm      GBPm      GBPm       GBPm        GBPm   
At 1 January 2017                                                        2,229.2           1,298.0     292.7   3,819.9    1,875.4     1,944.5   
Additions from acquisitions                                                 99.2               2.1         -     101.3       14.5        86.8   
Additions from subsequent expenditure                                       78.1              38.9       0.1     117.1       72.9        44.2   
Sale of discontinued operation                                                 -                 -   (292.8)   (292.8)    (292.8)           -   
Disposals                                                                  (6.2)             (2.7)         -     (8.9)      (8.9)           -   
Gain/(loss) on valuation(1)                                                 93.4           (184.3)         -    (90.9)       59.4     (150.3)   
At 31 December 2017                                                      2,493.7           1,152.0         -   3,645.7    1,720.5     1,925.2   
Additions from acquisitions                                                 18.7              10.6         -      29.3       23.4         5.9   
Additions from subsequent expenditure                                       13.8               4.6         -      18.4       12.5         5.9   
Disposals                                                                      -           (220.0)         -   (220.0)    (220.0)           -   
Gain/(loss) on valuation(1)                                                 36.2            (83.5)         -    (47.3)        8.1      (55.4)   
At 30 June 2018                                                          2,562.4             863.7         -   3,426.1    1,544.5     1,881.6   

b) Trading property
                                                                                       Property portfolio                          Tenure  
                                                                            Covent        Earls Court                                           
                                                                            Garden         Properties   Venues   Total   Freehold   Leasehold   
                                                                              GBPm               GBPm     GBPm    GBPm       GBPm        GBPm   
At 1 January 2017                                                              2.9                  -        -     2.9        2.9           -   
Disposals                                                                    (2.9)                  -        -   (2.9)      (2.9)           -   
At 31 December 2017(2)                                                           -                  -        -       -          -           -   
At 30 June 2018(2)                                                               -                  -        -       -          -           -   

(1) Loss on valuation of GBP47.3 million (31 December 2017: loss GBP90.9 million) is recognised in the consolidated income statement within (loss)/gain on revaluation and
    sale of investment and development property. This loss was unrealised and relates to assets held at the end of the period.
(2) The value of trading property carried at net realisable value was nil (31 December 2017: nil).

c) Market value reconciliation of total property                                                        
                                                                                                               Covent   Earls Court             
                                                                                                               Garden    Properties     Total   
                                                                                                                 GBPm          GBPm      GBPm   
Carrying value of investment and development property at                                                                                      
30 June 2018(1)                                                                                               2,562.4         863.7   3,426.1   
Adjustment in respect of fixed head leases                                                                      (6.1)             -     (6.1)   
Adjustment in respect of tenant lease incentives                                                                 65.7             -      65.7   
Market value of investment and development property at 30 June                                                                                  
2018                                                                                                          2,622.0         863.7   3,485.7   
Joint venture:                                                                                                                                  
Carrying value of joint venture investment, development and trading                                                                             
property at 30 June 2018                                                                                            -         118.4     118.4   
Unrecognised surplus on joint venture trading property(2)                                                           -          29.3      29.3   
                                                                                                              2,622.0       1,011.4   3,633.4   
Non-controlling interest adjustment:                                                                                                            
Market value of non-controlling interest in investment, development                                                                             
and trading property at 30 June 2018                                                                                -       (304.8)   (304.8)   
Market value of investment, development and trading property on                                                                                 
a Group share basis at 30 June 2018                                                                           2,622.0         706.6   3,328.6  
 
                                                                                                               Covent   Earls Court             
                                                                                                               Garden    Properties     Total   
                                                                                                                 GBPm          GBPm      GBPm   
Carrying value of investment, development and trading property                                                                                  
at 31 December 2017(1)                                                                                        2,493.7       1,152.0   3,645.7   
Adjustment in respect of fixed head leases                                                                      (6.1)             -     (6.1)   
Adjustment in respect of tenant lease incentives                                                                 57.8             -      57.8   
Market value of investment, development and trading property                                                                                    
at 31 December 2017                                                                                           2,545.4       1,152.0   3,697.4   
Joint venture:                                                                                                                                  
Carrying value of joint venture investment, development and trading                                                                             
property at 31 December 2017                                                                                        -         124.7     124.7   
Unrecognised surplus on joint venture trading property(2)                                                           -          31.8      31.8   
                                                                                                              2,545.4       1,308.5   3,853.9   
Non-controlling interest adjustment:                                                                                                            
Market value of non-controlling interest in investment, development                                                                             
and trading property at 31 December 2017                                                                            -       (329.4)   (329.4)   
Market value of investment, development and trading property on a                                                                               
Group share basis at 31 December 2017                                                                         2,545.4         979.1   3,524.5   

(1) Included within investment and development property is GBP2.1 million (31 December 2017: GBP3.3 million) of interest capitalised during the period on developments in progress.
(2) The unrecognised surplus on trading property is shown for information 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 condensed consolidated financial statements.

At 30 June 2018, the Group was contractually committed to GBP40.0 million (31 December 2017: GBP57.3 million) of future
expenditure for the purchase, construction, development and enhancement of investment, development and trading property.
Refer to note 23 'Capital Commitments' for further information on capital commitments.

The fair value of the Group's investment, development and trading property at 30 June 2018 was determined by independent,
appropriately qualified external valuers JLL for Earls Court Properties and CBRE 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.

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 16.

14 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 30 June 2018, joint ventures comprise the Lillie Square joint venture ("LSJV"), Innova Investment ("Innova"), and The Great
Capital Partnership ("GCP"). On 29 April 2013, the Group exchanged contracts for the disposal of the final asset, Park Crescent
West, in GCP which has since been 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.

                                                                                                        Six months   Six months          Year   
                                                                                                             ended        ended         ended   
                                                                                                           30 June      30 June   31 December   
                                                                                                              2018         2017          2017   
LSJV                                                                                                          GBPm         GBPm          GBPm   
Summarised income statement                                                                                                                     
Revenue                                                                                                       50.0         69.4         190.3   
Net rental expense                                                                                           (0.1)        (0.3)             -   
Gain on revaluation of investment and development property                                                     0.1          0.3           0.6   
Proceeds from the sale of trading property                                                                    49.9         69.3         190.1   
Cost of sale of trading property                                                                            (39.0)       (58.9)       (156.8)   
Agent, selling and marketing fees                                                                            (1.0)        (1.5)         (6.1)   
Write down of trading property                                                                               (0.7)        (1.0)         (1.2)   
Administration expenses                                                                                      (1.1)        (2.3)         (4.4)   
Finance costs(1)                                                                                            (12.7)       (12.1)        (24.9)   
Loss for the period                                                                                          (4.6)        (6.5)         (2.7)   

(1) Finance costs relate 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 an effective interest rate. Finance income receivable to the
    Group of GBP6.3 million (30 June 2017: GBP5.5 million) is recognised in the consolidated income statement within other finance income.

                                                                                                                          As at         As at   
                                                                                                                        30 June   31 December   
                                                                                                                           2018          2017   
LSJV                                                                                                                       GBPm          GBPm   
Summarised balance sheet                                                                                                                        
Investment and development property                                                                                         3.7           3.7   
Other non-current assets                                                                                                    4.4           4.1   
Trading property                                                                                                          233.0         245.7   
Cash and cash equivalents(1)                                                                                               46.8          49.8   
Other current assets                                                                                                        0.9           0.7   
Borrowings                                                                                                               (36.0)        (63.6)   
Other non-current liabilities(2)                                                                                        (231.4)       (218.9)   
Amounts payable to joint venture partners(3)                                                                             (72.3)        (71.9)   
Other current liabilities                                                                                                (48.9)        (44.8)   
Net liabilities                                                                                                          (99.8)        (95.2)   
Capital commitments                                                                                                        87.2          14.0   
Carrying value of investment, development and trading property                                                            236.7         249.4   
Unrecognised surplus on trading property(4)                                                                                58.6          63.6   
Market value of investment, development and trading property(4)                                                           295.3         313.0   

(1) Includes restricted cash and cash equivalents of GBP32.7 million (31 December 2017: GBP30.6 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 GBP32.7 million (31 December 2017: GBP30.6 million) within other current liabilities.
(2) Other non-current liabilities relate to deep discount bonds. Recoverable amounts receivable by the Group of GBP104.5 million (31 December 2017: GBP100.0 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.
(4) The unrecognised surplus on trading property and the market value of LSJV's property portfolio are shown for information purposes only and are not a requirement
    of IFRS. Trading property continues to be measured at the lower of cost and net realisable value.

Innova

On 29 June 2015, the Group acquired a 50 per cent interest in Innova, 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.

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

The summarised income statement and balance sheet of Innova are presented below.

                                                                                                        Six months   Six months          Year   
                                                                                                             ended        ended         ended   
                                                                                                           30 June      30 June   31 December   
                                                                                                              2018         2017          2017   
Innova                                                                                                        GBPm         GBPm          GBPm   
Summarised income statement                                                                                                                     
Administration expenses                                                                                          -        (0.2)             -   
Loss for the period                                                                                              -        (0.2)             -
   
                                                                                                                          As at         As at   
                                                                                                                        30 June   31 December   
                                                                                                                           2018          2017   
Innova                                                                                                                     GBPm          GBPm   
Summarised balance sheet                                                                                                                        
Other receivables                                                                                                           4.3           3.1   
Cash and cash equivalents                                                                                                   1.8           1.6   
Other current liabilities                                                                                                 (1.4)             -   
Net assets                                                                                                                  4.7           4.7   

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   Innova    Total   
                                                                                                              GBPm     GBPm     GBPm     GBPm   
Net assets/(liabilities) of joint ventures at 31 December 2017                                                 0.1   (95.2)      4.7   (90.4)   
Elimination of joint venture partners' interest                                                                  -     47.6    (2.4)     45.2   
Cumulative losses restricted(1)                                                                                  -     47.6        -     47.6   
Goodwill on acquisition of joint venture(2)                                                                      -        -     14.5     14.5   
Carrying value at 31 December 2017                                                                             0.1        -     16.8     16.9   
Net assets/(liabilities) of joint ventures at 30 June 2018                                                     0.1   (99.8)      4.7   (95.0)   
Elimination of joint venture partners' interest                                                                  -     49.9    (2.4)     47.5   
Cumulative losses restricted(1)                                                                                  -     49.9        -     49.9   
Goodwill on acquisition of joint venture(2)                                                                      -        -     14.5     14.5   
Carrying value at 30 June 2018                                                                                 0.1        -     16.8     16.9   

(1) Cumulative losses restricted represent the Group's share of losses in LSJV which exceed the Group's investment in the joint venture. As a result the carrying value
    of the investment in LSJV is nil (31 December 2017: nil) 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 presented on the consolidated
balance sheet.

                                                                                                                 GCP    LSJV   Innova   Total   
Investment in joint ventures                                                                                    GBPm    GBPm     GBPm    GBPm   
At 1 January 2017                                                                                                0.1       -     14.9    15.0   
Loss for the year(1)                                                                                               -   (1.3)        -   (1.3)   
Loss restricted1                                                                                                   -     1.3        -     1.3   
Issue of equity loan notes                                                                                         -       -      1.9     1.9   
At 31 December 2017                                                                                              0.1       -     16.8    16.9   
Loss for the period(1)                                                                                             -   (2.3)        -   (2.3)   
Loss restricted(1)                                                                                                 -     2.3        -     2.3   
At 30 June 2018                                                                                                  0.1       -     16.8    16.9   

(1) Share of post-tax loss from joint ventures in the consolidated income statement of nil (31 December 2017: nil) comprise loss for the period of GBP2.3 million (31
    December 2017: GBP1.3 million) and loss restricted totalling GBP2.3 million (31 December 2017: GBP1.3 million).

15 NON-CONTROLLING INTEREST

TTL Earls Court Properties Limited, a subsidiary of TfL, holds a 37 per cent 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.
                                                                                                                As at     As at         As at   
                                                                                                              30 June   30 June   31 December   
                                                                                                                 2018      2017          2017   
                                                                                                                 GBPm      GBPm          GBPm   
At 1 January                                                                                                    305.8     368.2         368.2   
Loss and total comprehensive expense for the period attributable to non-controlling interest                   (29.9)     (6.3)        (62.7)   
Unsecured loan notes issued to non-controlling interest                                                           6.1       0.3           0.3   
Non-controlling interest                                                                                        282.0     362.2         305.8   

Unsecured, non-interest bearing loan notes have been 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 (31
December 2017: less than GBP0.1 million) and therefore GBP409.0 million (31 December 2017: GBP402.9 million) has been classified as equity.

Set out below is summarised financial information, before intercompany eliminations, for ECPL.

                                                                                                        Six months   Six months          Year   
                                                                                                             ended        ended         ended   
                                                                                                           30 June      30 June   31 December   
                                                                                                              2018         2017          2017   
Summarised income statement                                                                                   GBPm         GBPm          GBPm   
Net rental income                                                                                              1.2          1.0           1.8   
Administration expenses                                                                                      (0.6)        (1.3)         (2.1)   
Loss on revaluation of investment and development property                                                  (81.4)       (16.8)       (169.2)   
Loss for the period after taxation                                                                          (80.8)       (17.1)       (169.5)   

                                                                                                                         As at         As at   
                                                                                                                       30 June   31 December   
                                                                                                                          2018          2017   
Summarised balance statement                                                                                              GBPm          GBPm   
Investment and development property                                                                                      823.7         890.0   
Cash at bank and at hand                                                                                                   5.9           5.4   
Other current assets                                                                                                       0.1           0.4   
Other non-current assets                                                                                                   0.2           0.5   
Other current liabilities                                                                                                (2.8)         (8.5)   
Borrowings                                                                                                              (65.0)        (61.4)   
Net assets                                                                                                               762.1         826.4  
 
                                                                                                       Six months   Six months          Year   
                                                                                                            ended        ended         ended   
                                                                                                          30 June      30 June   31 December   
                                                                                                             2018         2017          2017   
Summarised cash flows                                                                                        GBPm         GBPm          GBPm   
Operating cash inflow/(outflow) after interest and tax                                                        0.9        (0.4)           0.5   
Purchase and development of property, plant and equipment                                                  (19.7)       (19.4)        (34.0)   
Net cash flow before financing                                                                             (18.8)       (19.8)        (33.5)   
Financing(1)                                                                                                 19.3         15.9          29.5   
Net cash flow                                                                                                 0.5        (3.9)         (4.0)   

(1) Financing comprises GBP16.5 million (31 December 2017: GBP0.8 million) of unsecured, non-interest bearing loan notes and GBP2.8 million 
    (31 December 2017: GBP28.7 million) of external borrowings.

16 TRADE AND OTHER RECEIVABLES
                                                                                                                          As at         As at   
                                                                                                                        30 June   31 December   
                                                                                                                           2018          2017   
                                                                                                                           GBPm          GBPm   
Non-current                                                                                                                                     
Other receivables(1)                                                                                                       70.4          71.1   
Prepayments and accrued income(2)                                                                                          60.2          53.4   
Amounts receivable from joint ventures(3)                                                                                 104.5         100.0   
Trade and other receivables                                                                                               235.1         224.5   
Current                                                                                                                                         
Rent receivable                                                                                                             3.8           3.3   
Other receivables                                                                                                          17.1          16.4   
Prepayments and accrued income(2)                                                                                          13.9          13.4   
Trade and other receivables                                                                                                34.8          33.1   

(1) Includes GBP60.0 million (31 December 2017: GBP60.0 million) payment to LBHF which forms part of the CLSA.
(2) Includes tenant lease incentives, comprising surrender premia paid and incentives offered to new tenants, of GBP65.7 million (31 December 2017: GBP57.8 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. This balance has been impaired by GBP11.2 million (31 December 2017: GBP9.5 million).

17 CASH AND CASH EQUIVALENTS                                                                                                                    
                                                                                                                          As at         As at   
                                                                                                                        30 June   31 December   
                                                                                                                           2018          2017   
                                                                                                                           GBPm          GBPm   
Cash at hand                                                                                                                6.1           8.0   
Cash on short-term deposit                                                                                                 42.8          20.6   
Cash and cash equivalents                                                                                                  48.9          28.6   

18 TRADE AND OTHER PAYABLES                               
                                                                                                                          As at         As at   
                                                                                                                        30 June   31 December   
                                                                                                                           2018          2017   
                                                                                                                           GBPm          GBPm   
Rent received in advance                                                                                                   16.0          18.4   
Accruals and deferred income                                                                                               16.6          32.2   
Trade payables                                                                                                              1.3             -   
Other payables                                                                                                             14.6          15.4   
Other taxes and social security                                                                                             4.0           3.1   
Trade and other payables                                                                                                   52.5          69.1   

19 BORROWINGS, INCLUDING FINANCE LEASES

                                                                                            30 June 2018
                                                             Carrying                             Fixed    Floating         Fair      Nominal
                                                                value   Secured   Unsecured        rate        rate        value        value   
                                                                 GBPm      GBPm        GBPm        GBPm        GBPm         GBPm         GBPm   
Current                                                                                                                                         
Finance lease obligations                                         0.7       0.7           -         0.7           -          0.7          0.7   
Borrowings, including finance leases                              0.7       0.7           -         0.7           -          0.7          0.7   
Non-current                                                                                                                                     
Bank loans                                                       62.3      65.0       (2.7)           -        62.3         65.6         65.6   
Loan notes                                                      547.5         -       547.5       547.5           -        534.7        550.0   
Borrowings                                                      609.8      65.0       544.8       547.5        62.3        600.3        615.6   
Finance lease obligations                                         5.4       5.4           -         5.4           -          5.4          5.4   
Borrowings, including finance leases                            615.2      70.4       544.8       552.9        62.3        605.7        621.0   
Total borrowings, including finance leases                      615.9      71.1       544.8       553.6        62.3        606.4        621.7   
Cash and cash equivalents                                      (48.9)                                                                                
Net debt                                                        567.0                                                                                

                                                                                              31 December 2017
                                                              Carrying                            Fixed    Floating         Fair      Nominal
                                                                 value   Secured   Unsecured       rate        rate        value        value  
                                                                  GBPm      GBPm        GBPm       GBPm        GBPm         GBPm         GBPm   
Current                                                                                                                                         
Finance lease obligations                                          0.7       0.7           -        0.7           -          0.7          0.7   
Borrowings, including finance leases                               0.7       0.7           -        0.7           -          0.7          0.7   
Non-current                                                                                                                                     
Bank loans                                                       223.4      61.4       162.0          -       223.4        227.1        227.1   
Loan notes                                                       547.4         -       547.4      547.4           -        552.9        550.0   
Borrowings                                                       770.8      61.4       709.4      547.4       223.4        780.0        777.1   
Finance lease obligations                                          5.4       5.4           -        5.4           -          5.4          5.4   
Borrowings, including finance leases                             776.2      66.8       709.4      552.8       223.4        785.4        782.5   
Total borrowings, including finance leases                       776.9      67.5       709.4      553.5       223.4        786.1        783.2   
Cash and cash equivalents                                       (28.6)                                                                          
Net debt                                                         748.3                                                                          

20 CLASSIFICATION OF FINANCIAL ASSETS AND LIABILITIES

The tables below set out each class of financial asset, financial liability and their fair values at 30 June 2018 and 31 December 2017.

                                                                    30 June 2018                             31 December 2017            
                                                                            Gain   Loss to other                  (Loss)/gain   Loss 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                                   1.0              -               -          -             (0.1)               -   
Total held for trading assets                                 1.0              -               -          -             (0.1)               -   
Cash and cash equivalents                           17       48.9              -               -       28.6                 -               -   
Other financial assets                                      200.0              -               -      188.1                 -               -   
Total cash and other financial assets                       248.9              -               -      216.7                 -               -   
Derivative financial liabilities                                -            2.5               -      (5.5)               4.4               -   
Total held for trading liabilities                              -            2.5               -      (5.5)               4.4               -   
Borrowings, including finance leases                19    (615.9)              -               -    (776.9)                 -               -   
Other financial liabilities(1)                             (54.9)              -               -     (71.2)                 -               -   
Total borrowings and other financial                                                                                                            
liabilities                                               (670.8)              -               -    (848.1)                 -               -   

(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.

Derivative financial instruments are carried at fair value on the balance sheet and representing Level 2 fair value measurement.
The fair values of derivative financial instruments are determined from observable market prices or estimated using appropriate
yield curves at each reporting date by discounting the future contractual cash flows to the net present values. There has been
no transfer between levels in the period.

21 DEFERRED TAX

The decrease in corporation tax rate to 17 per cent referred to in Note 9 'Taxation' has been enacted for the purposes of IAS 12
'Income Taxes' and therefore has been reflected in these condensed 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 at
30 June 2018 is nil (31 December 2017: nil).

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 30 June 2018 is nil (31 December 2017: nil).

A disposal of the Group's trading property at market value, net of available losses, would result in a corporation tax charge to
the Group of GBP1.7 million (19 per cent of GBP9.0 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 2017                                                        14.6               -           (3.1)           0.4    (9.2)      2.7   
Adjustment in respect of previous years                                     -               -               -             -    (0.2)    (0.2)   
Recognised in income                                                      1.0               -             1.9           0.7      1.6      5.2   
Recognised directly in equity                                               -               -               -           0.2        -      0.2   
Released on discontinued operation                                     (12.6)               -               -         (3.1)        -   (15.7)   
At 31 December 2017                                                       3.0               -           (1.2)         (1.8)    (7.8)    (7.8)   
Recognised in income                                                      0.5               -             0.5         (0.5)      0.2      0.7   
Sale of Empress State Building                                          (0.6)               -               -           0.1        -    (0.5)   
At 30 June 2018                                                           2.9               -           (0.7)         (2.2)    (7.6)    (7.6)   
Unprovided deferred tax (assets):                                                                                                               
At 1 January 2018                                                           -          (64.7)               -             -    (8.7)            
Movement during the period                                                  -          (13.8)               -             -    (0.8)            
At 30 June 2018                                                             -          (78.5)               -             -    (9.5)            

In accordance with the requirements of IAS 12 'Income Taxes', the unprovided deferred tax asset has not been recognised in
the Group Financial Statements due to uncertainty on the level of profits that will be available in the future periods.

22 SHARE CAPITAL AND SHARE PREMIUM

                                                                                                      Issue                   Share     Share   
                                                                                      Transaction     price        Number   capital   premium   
Issue type                                                                                   date   (pence)     of shares      GBPm      GBPm   
At 1 January 2017                                                                                             846,121,707     211.5     215.1   
Scrip dividend - 2016 final                                                                   May       290     1,653,429       0.4       4.8   
Scrip dividend - 2017 interim                                                           September       268       443,695       0.1       1.2   
Share-based payment                                                                                               841,315       0.2         -   
At 31 December 2017                                                                                           849,060,146     212.2     221.1   
Scrip dividend - 2017 final                                                                   May       265     1,295,154       0.3       3.5   
Share-based payment                                                                                                53,280       0.1         -   
At 30 June 2018                                                                                               850,408,580     212.6     224.6   

23 CAPITAL COMMITMENTS

At 30 June 2018, the Group was contractually committed to GBP40.0 million (31 December 2017: GBP57.3 million) of future
expenditure for the purchase, construction, development and enhancement of investment, development and trading property.
Of the GBP40.0 million committed, GBP24.4 million is committed 2018 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 GBP75.0 million of the GBP105.0 million cash consideration payable
under the CLSA. The residual GBP30.0 million will be settled in two annual instalments of GBP15.0 million with the next payment due
on 31 December 2018.

The Group's share of joint venture capital commitments arising on LSJV amounts to GBP43.6 million (31 December 2017: GBP7.0 million).

24 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 23 '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.

25 CASH FLOW INFORMATION

The table below presents the cash generated from continuing operations:
                                                                                                                   Re-presented                 
                                                                                                      Six months     Six months          Year   
                                                                                                           ended          ended         ended   
                                                                                                         30 June        30 June   31 December   
                                                                                                            2018           2017          2017   
Continuing operations                                                                         Notes         GBPm           GBPm          GBPm   
(Loss)/profit before tax                                                                                   (4.9)           22.4        (62.5)   
Adjustments:                                                                                                                                    
Profit on sale of trading property                                                                3            -          (1.0)         (0.9)   
Loss/(gain) on revaluation and sale of investment and development                                                                               
property                                                                                          4         47.3         (12.2)          90.9   
Profit on sale of subsidiaries                                                                    6       (29.6)              -             -   
Impairment of other receivables                                                                   5          2.3            3.3           1.3   
Depreciation                                                                                                 1.0            1.1           1.9   
Amortisation of tenant lease incentives and other direct costs                                             (1.2)          (0.1)         (2.3)   
Share-based payment                                                                                          1.5            1.1           2.0   
Finance income                                                                                    7        (0.1)          (0.5)         (0.8)   
Finance costs                                                                                     8          9.5           10.1          19.9   
Other finance income                                                                              7        (6.3)          (5.5)        (11.7)   
Change in fair value of derivative financial instruments                                                   (2.5)          (3.6)         (4.3)   
Change in working capital:                                                                                                                      
Change in trade and other receivables                                                                      (6.3)          (6.2)        (32.5)   
Change in trade and other payables                                                                         (3.6)          (2.1)           4.8   
Cash generated from continuing operations                                                                    7.1            6.8           5.8   

The table below presents the cash generated from discontinued operation:                                                                   
                                                                                                                                       Period   
                                                                                                                                        ended   
                                                                                                                                      7 April   
                                                                                                                                         2017   
Discontinued operation                                                                                                     Note          GBPm   
Profit before tax                                                                                                            10           6.1   
Adjustments:                                                                                                                                    
Profit on disposal of discontinued operation                                                                                            (2.1)   
Depreciation                                                                                                                              0.1   
Finance costs                                                                                                                             0.4   
Change in fair value of derivative financial instruments                                                                                  0.1   
Change in working capital:                                                                                                                      
Change in trade and other receivables                                                                                                     1.7   
Change in trade and other payables                                                                                                        1.7   
Cash generated from discontinued operation                                                                                                8.0   

The table below provides an analysis of financial liabilities and derivative financial instruments arising from financing activities:

                                                                                                               Derivative   Total liabilities   
                                                                                     Long-term   Short-term     financial      from financing   
                                                                                    borrowings   borrowings   instruments          activities   
                                                                             Note         GBPm         GBPm          GBPm                GBPm   
Balance at 1 January 2018                                                                776.2          0.7           5.5               782.4   
Cash flows from financing activities                                                                                                            
Proceeds from loans and borrowings                                                        22.8            -             -                22.8   
Repayment of borrowings                                                                (185.0)            -             -             (185.0)   
Purchase and repayment of derivatives                                                        -            -         (4.0)               (4.0)   
Total cash flows used in financing activities                                          (162.2)            -         (4.0)             (166.2)   
Non-cash movements from financing activities                                                                                                    
Facility fees capitalised                                                                  0.5            -             -                 0.5   
Changes in fair value                                                          20            -            -         (2.5)               (2.5)   
Borrowing costs capitalised                                                                0.7            -             -                 0.7   
Total non-cash flows from financing activities                                             1.2            -         (2.5)               (1.3)   
Balance at 30 June 2018                                                                  615.2          0.7         (1.0)               614.9   

26 RELATED PARTY TRANSACTIONS     
                                                  
Transactions with Directors                                                         
                                                                                                        Six months   Six months          Year   
                                                                                                             ended        ended         ended   
                                                                                                           30 June      30 June   31 December   
                                                                                                              2018         2017          2017   
Key management compensation(1)                                                                                GBPm         GBPm          GBPm   
Salaries and short-term employee benefits                                                                      1.3          1.3           3.3   
Share-based payment                                                                                            0.9          0.7           1.3   
                                                                                                               2.2          2.0           4.6   

(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 period between the Group and its joint ventures, which are related parties, are disclosed in notes 14
'Investment in Joint Ventures', 16 'Trade and other receivables' and 23 'Capital commitments'. During the period the Group
recognised management fee income of GBP1.8 million (31 December 2017: GBP3.8 million) that was earned 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 Henry Staunton, Chairman of Capital & Counties Properties PLC (from 5 June 2018), together with his spouse
  exchanged contracts to acquire an apartment for a purchase price of GBP1,999,000, and at 31 December 2016 had paid
  deposits totalling GBP399,800. Legal completion occurred during 2017 with a net amount of GBP1,596,850 received, reflecting
  application of a standard legal fee incentive.

- In April 2014 Ian Durant, Chairman of Capital & Counties Properties PLC (until 5 June 2018), together with his spouse
  exchanged contracts to acquire an apartment for a purchase price of GBP725,000, and at 31 December 2016 had paid deposits
  totalling GBP145,000. Legal completion occurred during 2017 with a net amount of GBP579,000 received, reflecting application of a
  standard legal fee incentive and a specification enhancement.

- 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, and at 31 December 2016 had paid deposits totalling GBP171,000. Legal
  completion occurred during 2017 with a net amount of GBP683,000 received, reflecting application of a standard legal fee
  incentive and a specification enhancement.

- 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, and at 31 December 2016 had paid deposits
  totalling GBP142,000. Legal completion occurred during 2017 with a net amount of GBP566,250 received, reflecting application of a
  standard legal fee incentive.

- 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. During construction plans were altered and the two apartments were
  combined into one apartment. Discussions are ongoing regarding the contracts.

- 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. During construction plans were altered and the two apartments were combined
  into one apartment. The terms of the contracts were varied accordingly and assigned to Graeme Gordon. Legal completion
  occurred in 2018 with a total amount of GBP4,794,000 received (including deposits totalling GBP940,000 paid prior to 31 December
  2016), reflecting application of standard legal fee incentives.

- Upon legal completion of the above transactions, the Directors are required to pay annual ground rent and insurance
  premium fees and bi-annual service charge fees. During 2018 GBP23,790 has been received in relation to these charges.
  Certain payments in relation to these charges are made in advance and GBP12,921 has therefore been received for the second
  half of 2018 as at 30 June 2018.

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 30 JUNE 2018                          
                                                                                                                           Market               
                                                                                                                            Value               
                                                                                                                             GBPm   Ownership   
Covent Garden                                                                                                             2,622.0        100%   
Earls Court Properties                                                                                                                          
ECPL                                                                                                                        518.9         63%   
Lillie Square                                                                                                               147.7         50%   
Other                                                                                                                        40.0        100%   
Earls Court Properties (Group share)                                                                                        706.6               
Group share of total property                                                                                             3,328.6               
Investment and development property                                                                                       3,182.8               
Trading property                                                                                                            145.8               

2. ANALYSIS OF CAPITAL RETURN FOR THE PERIOD

                                                                                                                     Revaluation                
                                                                                              Market        Market         gain/                
                                                                                               Value         Value     (loss)(1)                
                                                                                             30 June   31 December       30 June                
                                                                                                2018          2017          2018    Increase/   
Like-for-like capital                                                                           GBPm          GBPm          GBPm   (decrease)   
Covent Garden                                                                                2,606.6       2,545.4          39.2        1.6 %   
Earls Court Properties                                                                         701.2         737.2        (53.1)       (7.0)%   
Total like-for-like capital                                                                  3,307.8       3,282.6        (13.9)       (0.4)%   
Investment and development property                                                          3,162.0       3,149.8        (13.9)       (0.4)%   
Trading property(2)                                                                            145.8         132.8             -        0.0 %   
Non like-for-like capital                                                                                                                       
Acquisitions                                                                                    20.8             -         (3.2)                
Disposals                                                                                          -         241.9             -                
Group share of total property                                                                3,328.6       3,524.5        (17.1)       (0.5)%   
Investment and development property                                                          3,182.8       3,369.8        (17.1)       (0.5)%   
Trading property                                                                               145.8         154.7             -        0.0 %   
All property                                                                                                                                    
Covent Garden                                                                                2,622.0       2,545.4          36.1        1.4 %   
Earls Court Properties                                                                         706.6         979.1        (53.2)       (7.0)%   
Group share of total property                                                                3,328.6       3,524.5        (17.1)       (0.5)%   

(1) Revaluation gain/(loss) includes amortisation of lease incentives and fixed head leases.
(2) Trading property market value and the revaluation surplus/deficit thereon are presented for information purposes only. The revaluation surplus/deficit on trading
    property represents the unrecognised surplus and write down or write back to market value.

3. ANALYSIS OF NET RENTAL INCOME FOR THE PERIOD

                                                                                                         Six months   Six months                
                                                                                                              ended        ended                
                                                                                                            30 June      30 June                
                                                                                                               2018         2017    Increase/   
Like-for-like net rental income from continuing operations                                                     GBPm         GBPm   (decrease)   
Covent Garden                                                                                                  25.1         22.5       11.6 %   
Earls Court Properties                                                                                          1.1          0.7       56.0 %   
Other                                                                                                         (0.1)        (0.3)                
Total like-for-like net rental income                                                                          26.1         22.9       13.8 %   
Like-for-like investment and development property                                                              26.1         22.9       13.7 %   
Like-for-like trading property                                                                                    -            -            -   
Non like-for-like net rental income                                                                                                             
Disposals                                                                                                       3.9          8.1                
Developments                                                                                                    0.9          0.3                
Prior year acquisitions (like-for-like capital)                                                                 2.2          0.5                
Group share of total net rental income                                                                         33.1         31.8       14.4 %   
Investment and development property income                                                                     33.2         32.0       14.2 %   
Trading property income                                                                                       (0.1)        (0.2)                
All property                                                                                                                                    
Covent Garden                                                                                                  28.3         23.4       21.2 %   
Earls Court Properties                                                                                          4.9          8.7      (43.8)%   
Other                                                                                                         (0.1)        (0.3)                
Group share of total net rental income                                                                         33.1         31.8        4.0 %   

4. ANALYSIS OF COVENT GARDEN BY USE

30 June 2018

                                                                                                       Weighted                         Gross
                                                   Initial       Nominal      Passing                   average    Market                area
                                                     yield    equivalent      rent(1)   Occupancy     unexpired     value      ERV    million
                                                    (EPRA)         yield         GBPm        rate   lease years      GBPm     GBPm      Sq ft
Retail                                                                                                  2,007.3      80.9      0.7
Office                                                                                                    342.7      18.7      0.3
Residential                                                                                               270.0       7.6      0.2
Other                                                                                                       2.0       0.1        -
Total                                                2.27%         3.58%         62.1       97.0%           7.6   2,622.0    107.3        1.2

(1) Non-leased income of GBP1.5 million (31 December 2017: GBP1.3 million) is added to passing rent to arrive at gross income.

CONSOLIDATED UNDERLYING PROFIT STATEMENT (UNAUDITED)
For the six months ended 30 June 2018

                                                                                                        Six months   Six months          Year   
                                                                                                             ended        ended         ended   
                                                                                                           30 June      30 June   31 December   
                                                                                                              2018         2017          2017   
Group share                                                                                                   GBPm         GBPm          GBPm   
Continuing operations:                                                                                                                          
Net rental income                                                                                             33.1         31.8          66.2   
Other income                                                                                                   0.9          1.3           2.3   
Administration expenses                                                                                     (19.2)       (21.4)        (38.7)   
Operating profit                                                                                              14.8         11.7          29.8   
Finance costs                                                                                                (9.5)       (10.6)        (20.6)   
Finance income                                                                                                 0.1          0.5           0.8   
Net finance costs                                                                                            (9.4)       (10.1)        (19.8)   
Profit before tax                                                                                              5.4          1.6          10.0   
Taxation                                                                                                     (1.1)        (0.3)         (2.7)   
Underlying earnings from continuing operations                                                                 4.3          1.3           7.3   
Underlying earnings from discontinued operation                                                                  -          3.3           4.1   
Underlying earnings                                                                                            4.3          4.6          11.4   
Underlying earnings per share (pence):                                                                                                          
From continuing operations                                                                                     0.5          0.1           0.9   
From discontinued operation                                                                                      -          0.4           0.4   
Underlying earnings per share (pence)                                                                          0.5          0.5           1.3   
Weighted average number of shares                                                                           850.4m       849.2m        850.0m   

FINANCIAL COVENANTS (UNAUDITED)
For the six months ended 30 June 2018

Financial covenants on non-recourse debt

                                                                                                               30 June 2018
                                                                                                    Loan(s) outstanding                         
                                                                                                             at 30 June              Interest   
                                                                                                                2018(1)        LTV      cover   
Group share                                                                              Maturity                  GBPm   covenant   covenant   
Covent Garden(2)                                                                        2022-2037                 550.0        60%       120%   
ECPL                                                                                         2026                  41.3        40%        n/a   
Lillie Square(3)                                                                             2021                  18.1        75%        n/a   
Total                                                                                                             609.4                         

(1) The loan values are the nominal values at 30 June 2018 shown on a Group share basis. The balance sheet value of the loans includes any unamortised fees.
(2) Covent Garden comprises GBP705 million unsecured Revolving Credit Facility ("RCF") maturing in 2022, undrawn at 30 June 2018, and GBP550 million Private
    Placement unsecured notes maturing between 2024 and 2037.
(3) Subject to exercise of extension options (2019 - 2021) by the borrower.

ALTERNATIVE PERFORMANCE MEASURES

The Group has applied the European Securities and Markets Authority ("ESMA") guidelines on alternative performance
measures ("APMs") in these interim results. An APM is a financial measure of historical or future finance performance, position
or cash flow of the Group which is not a measure defined or specified in IFRS.

Set out below is a summary of the APMs used in these interim results.

Many of the APMs included are based on the EPRA Best Practice Recommendations reporting framework, a set of standard
disclosures for the property industry, which aims to improve the transparency, comparability and relevance of published results
of public real estate companies in Europe.

The Group also uses underlying earnings, property portfolio and financial debt ratios APMs. The Group considers the
presentation of underlying earnings to be useful supplementary information as it removes unrealised and certain other items
and therefore represents the recurring, underlying performance of the business. The property portfolio presents the Group
share of property market value which is the economic value attributable to the owners of the Parent. Financial debt ratios are
supplementary ratios which we believe are useful in monitoring the capital structure of the Group. Additionally loan to value and
interest cover are covenants within many of the Group's borrowing facilities.

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.

APM                                         Nearest IFRS measure                                  Explanation and reconciliation

EPRA earnings and earnings per share        Profit for the period and basic earnings per share
EPRA NAV and NAV per share                  Net assets attributable to shareholders               Note 12
Underlying earnings and earnings per
share                                       Basic earnings per share
Market value of property portfolio          Investment, development and trading properties        Note 13
Loan to value                               N/A
Interest cover                              N/A
                                                                                                  Financial Review, page 9
Gross debt with interest rate protection    N/A
Weighted average cost of debt               N/A

Where this report uses like-for-like comparisons, these are defined within the Glossary.

SELECTED PERFORMANCE MEASURES

The following is a summary of EPRA performance measures and key Group measures included within these interim results.

The measures are defined in the Glossary.

                                                                                                        Six months   Six months          Year   
                                                                                                             ended        ended         ended   
                                                                                                           30 June      30 June   31 December   
APM                               Definition of measure                                          Page         2018         2017          2017   
Alternative to Income Statement                                                                                                                 
EPRA earnings                     Recurring earnings from core operational activity                36     GBP34.2m      GBP2.6m       GBP6.2m   
EPRA earnings per share           EPRA earnings per weighted number of ordinary shares             36         4.0p         0.3p          0.7p   
Underlying earnings               Profit for the period excluding unrealised and one-off items     36      GBP4.3m      GBP4.6m      GBP11.4m   
Underlying earnings per share     Underlying earnings per weighted number of ordinary shares       36         0.5p         0.5p          1.3p   


                                                                                                                     Six months          Year   
                                                                                                                          ended         ended   
                                                                                                                        30 June   31 December   
APM                                  Definition of measure                                                    Page         2018          2017   
Alternative to Balance Sheet                                                                                                                    
Market value of property portfolio   Market value of investment, development and trading properties             39    GBP3,329m     GBP3,525m   
EPRA NAV                             Net asset value adjusted to include properties and other                   37    GBP2,850m     GBP2,839m   
                                     investment interests at fair value and to exclude certain items not                                        
                                     expected to crystallise in a long-term investment property                                                 
                                     business model                                                                                             
EPRA NAV per share                   EPRA NAV per the diluted number of ordinary shares                         37         334p          334p   
EPRA triple net assets               EPRA NAV amended to include the fair value of financial                    37    GBP2,858m     GBP2,822m   
                                     instruments and debt                                                                                       
EPRA triple net assets per share     Diluted triple net assets per the diluted number of ordinary               37         335p          332p   
                                     shares                                                                                                     
Other                                                                                                                                           
EPRA net initial yield               Annualised rental income less non-recoverable costs as a                  N/A         2.3%          2.5%   
                                     percentage of market value plus assumed purchaser's costs                                                  
EPRA topped-up initial yield         Net initial yield adjusted for the expiration of rent-free periods        N/A         2.5%          2.8%   
Occupancy                            ERV of occupied space as a percentage of ERV of combined                   53        97.0%         97.9%   
                                     portfolio                                                                                                  
Loan to value                        Net debt divided by the carrying value of the property portfolio            9        16.6%         21.3%   
Interest cover                       Underlying operating profit divided by net underlying finance               9       155.8%        169.7%   
                                     costs                                                                                                      
Gross debt with interest rate        Proportion of the gross debt with interest rate protection                  9          90%           91%   
protection                                                                                                                                      
Weighted average cost of debt        Cost of debt weighted by the drawn balance of external                      9         2.9%          2.8%   
                                     borrowings                                                                                              

DIVIDENDS

The Directors of Capital & Counties Properties PLC have proposed an interim dividend per ordinary share (ISIN
GB00B62G9D36) of 0.5 pence payable on 21 September 2018.

Dates

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

Sterling/Rand exchange rate struck:                                                                                            17 August 2018
Sterling/Rand exchange rate and dividend amount in Rand announced:                                                             20 August 2018
Ordinary shares listed ex-dividend on the JSE, Johannesburg:                                                                   29 August 2018
Ordinary shares listed ex-dividend on the LSE, London:                                                                         30 August 2018
Record date for interim dividend in UK and South Africa:                                                                       31 August 2018
Election date for scrip dividend alternative (SA)                                                                              31 August 2018
Election date for scrip dividend alternative (UK)                                                                            7 September 2018
Dividend payment date for shareholders                                                                                      21 September 2018

South African shareholders should note that, in accordance with the requirements of Strate, the last day to trade cum-dividend
will be 28 August 2018 and that no dematerialisation of shares will be possible from 29 August 2018 to 31 August 2018
inclusive. No transfers between the UK and South Africa registers may take place from 21 August 2018 to 31 August 2018.

Subject to SARB approval, the Board intends to offer an optional scrip dividend alternative in respect of the 2018 interim dividend.

The above dates are proposed and subject to change.

Important Information for South African Shareholders

The interim dividend declared by the Company is a foreign payment and the funds are sourced from the UK.

The interim 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 interim cash dividend which is paid at a rate of 20 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

APM
A financial measure of historical or future financial performance, position or cash flows of the Group which is not a measure
defined or specified in IFRS.

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), and a number of smaller properties in the Earls Court area.

EBITDA
Earnings before interest, tax, depreciation and amortisation.

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.

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
Profit for the period 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
EPRA earnings divided by the weighted average number of shares in issue during the period.

EPRA net asset value (EPRA NAV)
The net assets as at the end of the period 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 period-end.

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

EPRA net initial yield
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 triple net asset value (EPRA NNNAV)
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.

ESB
Empress State Building.

Estimated rental value (ERV)
The external valuers' estimate of the Group's share of the open market rent which, on the date of valuation, could reasonably
be expected to be obtained on a new letting or rent review of the property.

GCP
The Great Capital Partnership is a 50 per cent Joint Venture between Capital & Counties Limited and Great Portland Estates PLC.

GEA
Gross external area.

GLA
Greater London Authority.

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

Headline earnings
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.

IFRS
International Financial Reporting Standards.

Innova
Innova Investment Limited Partnership is a 50 per cent Joint Venture between the Group and Network Rail Infrastructure Limited.

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
Property which has been owned throughout both periods, without significant capital expenditure in either period, 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 period.

Loan to value (LTV)
LTV is calculated on the basis of Group's net debt divided by the carrying value of the Group's property portfolio.

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

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
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 per cent 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.

RBKC
Royal Borough of Kensington and Chelsea.

SAICA
South African Institute of Chartered Accountants.

SARB
South African Reserve Bank.

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.

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

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

Total return (TR)
The growth in EPRA NAV per share plus dividends per share paid during the year.

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

Underlying earnings
Profit for the year excluding impairment charges, net valuation gains/losses (including profits/losses on disposals), net
refinancing charges, 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)
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").

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

Sponsor
Merrill Lynch South Africa (Pty) Limited

Date: 25/07/2018 08:00:00 Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE'). 
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