British Land Company Plc · LSE:BLND
British Land — FY2002 Earnings Presentation
77 slides from British Land's earnings presentation, May 29, 2002
Slide 1: Results Presentation Year ended 31 March 2002
Results Presentation Year ended 31 March 2002 29 May 2002 1
Slide 2: Agenda
Agenda • Property Review Bob Bowden Property Investment Director • Financial Review Graham Roberts Finance Director • Outlook John Ritblat Chairman 2
Slide 3: Property Review
Property Review 3
Slide 4: Portfolio Valuation by Sector
Portfolio Valuation by Sector £m Total % Uplift % Offices: City 3,359 36 (2.2) West End 670 7 1.2 Other 239 3 2.3 All offices 4,268 46 (1.4) Retail: Shopping Centres 1,723 19 (0.1) Shops 381 4 3.4 Supermarkets 1,091 12 6.5 Retail Warehouses 882 9 3.8 All Retail 4,077 44 2.8 Developments: 498 5 3.4 O
Slide 5: Performance Benchmarking
Performance Benchmarking Long Term Performance Relative to IPD Ungeared Total Returns British Land1 IPD2 IPD – Upper Quartile period to March 2002 (Group) Threshold 10 years 12.8% 10.8% 11.4% Recent Performance Relative to IPD Ungeared Total Returns 12 months to March 2002 12 months to March 2001 Br
Slide 6: Balanced Portfolio Analysis
Balanced Portfolio Portfolio Analysis Retail 44% Offices 46% West End Shopping Centres 19% 7% City Offices 36% (Meadowhall 14%) (Broadgate 31%) Supermarkets 12% Retail Warehouses 9% Other Offices High Street Shops Other Developments 3% 4% 5% 5% 6
Slide 7: Portfolio Activity: Sales
Portfolio Activity: Sales Total Sales BL Share (100% JVs) Group £196m £196m Joint Ventures £363m £182m Total £559m £378m Main sales (100% JVs): £m Sector BL Universal: Portfolio sales of 102 properties 130 High street shops Public House Company: 152 public houses 112 Leisure BL Rank: 4 bingo clubs a
Slide 8: Portfolio Activity: Purchases
Portfolio Activity: Purchases Total Purchases BL Share (100% JVs) Group £364m £364m Joint Ventures £487m £244m Total £851m £608m Main purchases (100% JVs): Cost £m Type of space BL Davidson: Asda Property Holdings 449 Out of town retail/London offices 22 Homebase Stores 156 Retail warehouse Orbital
Slide 9: Portfolio Activity: Developments
Portfolio Activity: Developments Total Programme Net Area Construction ERV (100% JVs) Cost Completed 1.2m sq ft £188m £25m Committed 1.6m sq ft £424m £56m Next Stage 6.7m sq ft £1,152m £145m Total 8.3m sq ft £1,576m £201m 9
Slide 10: Portfolio: 5 Years Activity
Portfolio: 5 Years Activity 5 years to March 2002 Total property purchases and development capex £3.3 bn Total property sales £2.0 bn - in excess of valuation £135 m 10
Slide 11: Portfolio Asset Management
Portfolio Asset Management 2002 2001 Total properties 848 990 Total leases 3,247 3,055 • 297 rent reviews: at rents some 25% above those passing Increase in rental income of £28m pa • 442 new lettings and lease renewals: representing rents of £25m pa 11
Slide 12: Long Lease Structure
Long Lease Structure • Annualised net rents of £524.6m • Average lease length 18.3 yrs - 65.5% of income is committed until March 2017 (15 years) Annualised Average lease net rents £m length (yrs) City offices 192.0 15.4 West End offices 31.9 11.4 Shopping centres and shops 121.6 20.2 Supermarkets a
Slide 13: Strong Tenant Covenants
Strong Tenant Covenants Tenant risk profile: Dun & Bradstreet Stress Score British Land TICCS1 Benchmark Rental income rated: Negligible, low and low-medium risk 82.9% 76.2% Medium-high risk 13.3% 16.0% High risk 1.9% 4.1% Unmatched 1.9% 3.7% Total 100.0% 100.0% 1 Tenant Income Credit rating Covenan
Slide 14: Strong Reversionary Potential
Strong Reversionary Potential March 2002 March 2001 £m £m Annualised net rents 524.6 492.9 Estimated rental values 613.1 605.6 Reversionary income 88.5 112.7 March 2002 Reversion Reversionary £m Net Yield % City offices 31.8 6.7% West End offices 22.3 8.1% Shopping centres and shops 26.1 7.0% Superm
Slide 15: Offices Analysis
Offices Analysis 46% Offices Valuation % of total £m offices Total Offices 4,268 100% Central London offices: 4,029 94% - Broadgate 2,836 66% - Regent’s Place 504 12% Business parks and other offices 239 6% 15
Slide 16: Broadgate, EC2
Broadgate, EC2 • 32 acre office, retail and leisure estate • Adjoins Liverpool Street Station • 3.9m sq ft flexible accommodation • 0.9m sq ft additional development potential • Strong covenants • 16.3 years average lease length • Vacancy rate < 0.3% • Comprehensive estate management 16
Slide 17: Broadgate Valuation
Broadgate Valuation March 2002 March 2001 Valuation £2.836 bn £2.896 bn Equivalent yield 6.23 % 6.23 % Estimated rental value £55.00 psf £57.00 psf Average passing rent £45.40 psf £42.50 psf 17
Slide 18: Broadgate Rent Levels
Broadgate Rent Levels Rent reviews settled on c.625,000 sq ft with a total uplift in rents of £8.1m pa Principal reviews Rent Review Floor Space Rents per Sq ft Date sq ft Overall Implied Previous Headline Exchange House Dec 2000 230,300 £54.50 £57.00 £44.42 155 Bishopsgate Mar 2001 8,000 £59.00 £60
Slide 19: Broadgate Asset Management
Broadgate Asset Management • Negotiated two surrenders of 50,000 sq ft for re-letting: - 12,100 sq ft on Level 7 of 6 Broadgate - 38,000 sq ft on Level 6 of 155 Bishopsgate: vacant possession by October 2002 • £40m capital expenditure programme - Creation of 12,500 sq ft additional retail space - En
Slide 20: City Office Market: Supply
City Office Market: Supply Quarter 1 2002 Total stock 81.5m sq ft Total available Sq ft Vacancy rate Grade A 2.4m 2.9% Grade B and C 4.5m 5.5% 6.9m 8.4% Average vacancy rate 1996 – 2001: 7.1% Highest vacancy rate in 1992: 18.7% 20
Slide 21: City Office Market: Take Up
City Office Market: Take Up Take Up Quarter 1 2002 600,000 sq ft Quarter 4 2001 560,000 sq ft Principal Transactions Quarter 1 2002 Company Building Sq ft Rent psf ACE Underwriting 100 Leadenhall Street 125,000 £55.00 Lloyds TSB 25 Gresham Street 115,000 £60 - £63.00* Berwin Leighton Paisner St Magn
Slide 22: City Office Market: Demand
City Office Market: Demand Demand Q1 2002 Q4 2001 Active 6.2m sq ft 4.8m sq ft Potential 6.7m sq ft 8.6m sq ft Total 12.9m sq ft 13.4m sq ft Active demand sectors: Professional Services 39% Banking & Finance 23% 22
Slide 23: City Office Market: Development
City Office Market: Development Speculative development (Under Construction) Quarter 1 2002 3.3m sq ft Quarter 4 2001 2.2m sq ft Of this total 2.3m sq ft represents units over 100,000 sq ft: Total sq ft Number of units Completion over 100,000 sq ft 2002 570,000 3 2003 1,600,000 9 2004 130,000 1 23
Slide 24: Regent's Place, NW1
Regent’s Place, NW1 24
Slide 25: Regents Place, NW1
Regents Place, NW1 • 10.4 acre masterplanned estate creating a new West End business quarter close to Euston mainline and underground stations • 1.2m sq ft of high quality office and retail accommodation Main Buildings Area Year built/ Principal Tenants Sq ft Refurbished Euston Tower 360,000 1970 HM
Slide 26: West End Office Market: Supply
West End Office Market: Supply Supply Quarter 1 2002 5.3m sq ft Quarter 4 2001 5.1m sq ft Vacancy rate Q1 2002 5.2% of total stock 26
Slide 27: West End Office Market: Take Up
West End Office Market: Take Up Take Up Quarter 1 2002 635,000 sq ft Quarter 4 2001 765,000 sq ft Principal Transactions Quarter 1 2002 Company Building Sq ft Rent psf Debenhams 33 Wigmore Street 20,000 £57 Chubb Cleveland House, St James Square 17,500 £80 Duke St. Capital Almack House, St James 12,
Slide 28: West End Office Market: Demand
West End Office Market: Demand Demand Quarter 1 2002 Quarter 4 2001 Active 3.1m sq ft 2.6m sq ft Potential 2.4m sq ft 5.1m sq ft Total 5.5m sq ft 7.7m sq ft Demand concentrated on larger buildings: Sq ft Supply Active Demand Potential Demand Over 100,000 600,000 750,000 1,300,000 50,000 – 100,000 49
Slide 29: West End Office Market: Development
West End Office Market: Development Speculative development (Under Construction) Completion 2002 1.1m sq ft 2003 0.8m sq ft 2004 - Total 1.9m sq ft 29
Slide 30: Central London Investment Market
Central London Investment Market Investment Quarter 1 2002 £1.0bn Quarter 4 2001 £1.4bn Year to Dec 2001 £6.3bn £860m of City stock under offer at beginning Quarter 2 2002 Recent 280 Bishopsgate* 25 Gresham Street* 33 Holborn Circus* Transactions (under offer) Price £219m £87.8m £240m Rent (per sq f
Slide 31: Retail Analysis
Retail Analysis 44% Retail Valuation % of total £m retail Total Retail 4,077 100% Out of Town: 3,253 80% - Meadowhall 1,280 31% - 91 Supermarkets 1,091 27% - 73 Retail warehouses 882 22% In Town (shopping centres and high street retail) 824 20% 31
Slide 32: Meadowhall Shopping Centre, Sheffield
Meadowhall Shopping Centre, Sheffield • One of only six super regional centres • 1.42m sq ft gross lettable area on 167 acres • Two level mall: c.290 retail and leisure units • Adjacent to M1 motorway with own public transport and 12,600 free car spaces • 18 years average lease length • Average week
Slide 33: Meadowhall Rent Levels
Meadowhall Rent Levels • Valuation: £1.28bn; Equivalent yield 5.64% • Total current rent levels: £m p.a. Total current passing rent £62.4m Total expected rent on settlement of outstanding £67.1m rent reviews and lettings Total estimated rental value £74.7m - 41 rent reviews completed, an uplift of r
Slide 34: Meadowhall: Growth in Cash Flows
Meadowhall: Growth in Cash Flows Cumulative Average Growth Rate in total passing rents of 10.5% pa 68 £67.1m 63 £62.4m Total passing rents £m pa 58 53 £48.5m 48 Sep-99 Mar-00 Sep-00 Mar-01 Sep-01 Mar-02 34
Slide 35: Meadowhall Asset Management
Meadowhall Asset Management • Lettings: 16 new retailers including Ted Baker, Allders, French Connection; 2 relocations; 2 extensions; 13 re-fits and 1 lease renewal • Market Street: proposed two storey extension of 44,000 sq ft • Oasis Food Court: major 9,000 sq ft extension and reconfiguration to
Slide 36: Meadowhall Customer Analysis
Meadowhall Customer Analysis 2001 2000 Increase Customer numbers 24.1m 23.8m 1.2% Average Group Spend: Off Peak Survey (June) £98.93 £88.04 12.4% Peak Survey (December) £146.40 £145.76 0.4% 36
Slide 37: Supermarkets
Supermarkets • Valuation to BL £1.1 billion; up 6.5% • 91 supermarkets; Site area 408 acres; Floor area c. 4.8m sq ft – 30,324 car parking spaces • Secure rental income streams; 22.4 yrs average lease length • Average rent £18.29 per sq ft; Currently yielding 7% • Strong demand from major retailers
Slide 38: Supermarket Extensions
Supermarket Extensions Completions Size of extension Initial rent increase Initial Yield (year to end) (sq ft ‘000) pa (‘000) 1994 14.8 £303 9.9% 1996 4.8 £165 8.1% 1997 11.5 £457 7.4% 1998 103.8 £1,771 7.7% 1999 97.0 £1,405 8.3% 2001 171.3 £2,589 7.0% 2002 32.6 £933 8.1% Committed 121.1 £2,177 7.6%
Slide 39: Retail Warehouses
Retail Warehouses • Valuation to BL £882m; up 3.8% • 73 retail warehouses: 42 retail parks, 31 solus units – Site area 503 acres; Floor area c. 5.5m sq ft • Average rent £13.63 per sq ft: highly reversionary • Currently yielding 6% • Average unexpired lease length 18 years 39
Slide 40: Out of Town Retailing
Out of Town Retailing Expenditure taking a larger share of retail spend (both food and non food) Sales Annual Change % of Retail Spend 1997 £52bn 9.2% 28.3% 1998 £56bn 7.2% 29.2% 1999 £60bn 6.6% 30.1% 2000 £63bn 6.1% 30.9% 2001 £69bn 8.8% 31.6% Source: Verdict 40
Slide 41: Out of Town Retailing
Out of Town Retailing Retail Units - Numbers Out of Town 1991 - 1996 7.2% per annum increase 1996 - 2001 4.7% per annum increase 2001 2.9% per annum increase Source: Verdict 41
Slide 42: Out of Town Retailing
Out of Town Retailing Retail Sales Densities Sales per sq ft 1997 £445 1998 £459 1999 £473 2000 £485 2001 £508 Increase 1996-2001 18.1% - Non Food 1996-2001 30.8% - Food 1996-2001 12.7% Average Out of Town Supermarket Grocery Sales now over £1,000 per sq ft Source: Verdict 42
Slide 43: Controlled Development Programme
Controlled Development Programme Net Area Construction Costs to ERV Cost complete Completed Total 1.2m sq ft £188m - £25m BL Share £155m - £21m Committed Total 1.6m sq ft £424m £344m £56m BL Share £415m £336m £54m Next stage Total 6.7m sq ft £1,152m £1,130m £145m BL Share £764m £751m £102m Total 8.3
Slide 44: Development Programme by Sector
Development Programme by Sector Retail Industrial & 6% Distribution 4% Business Parks 33% Central London Offices 57% By total construction costs 44
Slide 45: Major Completed Developments
Major Completed Developments Completed Projects Main Tenants Sq ft (net) Construction ERV Cost 2 Triton Square Abbey National 200,000 £64m £8m 350 Euston Road Under offer (30,000 sq ft) 130,000 £45m £6m Blythe Valley Park BG Holdings/Vodafone 235,000 £24m £4m Feltham Consignia/EGL Logistics 342,000
Slide 46: Major Committed Developments
Major Committed Developments Committed Projects Sector Sq ft Construction PC Date ERV Pre-let Costs (by Sq ft) Plantation Place City Office 700,300 £277m Q2 2004 £36m Accenture (375,000 sq ft) 10 Exchange City Office 162,400 £53m Q2 2004 £9m - Square Centre West Shopping Centre 286,600 £68m Q1 2003
Slide 47: Major Next Stage Developments
Major Next Stage Developments Next Stage Projects Planning Sector Sq ft 201 Bishopsgate Revised Application City office 737,000 51 Lime Street Application City office 534,000 Caroone House Application City office 125,400 York House Detailed West End office 138,200 Swiss Centre - West End office 105,
Slide 48: The Future: Central London Offices
The Future: Central London Offices Long term fundamentals sound • Dominant world financial centre • Greater London has 4.2m in employment • Employment expected to grow at 1.2 / 1.4% pa over next 5yrs • Transport links: 1m people commute to work by public transport each day • Development pipeline lim
Slide 49: The Future: Retail
The Future: Retail Long term fundamentals for out of town sound • Retail expenditure increasing at: 1996 – 2001 4.7% pa 2001 6.2% pa 2002 Forecast 3.1% pa • Change in shopping habits in last 10 years to out of town and regional shopping centres • Severely restricted supply of new locations • Forecas
Slide 50: Financial Review
Financial Review 50
Slide 51: Financial Highlights
Financial Highlights March 2002 Net rents (including share of JVs) Up 5.7% to £476.9m Profits before tax Up 95.8% to £171.3m Underlying profits before tax Up 5.7% to £127.5m Adjusted basic EPS (pre-exceptional 2001)1 Up 14.6% to 32.1p Dividend per share Up 7.8% to 12.4p 1 Adjusted to exclude the eff
Slide 52: Net Asset Value
Net Asset Value March 2002 Adjusted fully diluted NAV per share1 Up 3.7% 803p Proforma proposed redemption of £323m Convertible Up 11p 814p Adjusted basic NAV per share1 Up 3.9% 833p 1 Adjusted to exclude the effects of FRS 19 (capital allowances) 52
Slide 53: Total Return on Net Assets
Total Return on Net Assets Group JVs Total £m £m £m Gross rental income 415 99 514 Operating profit 364 88 452 Net interest payable (252) (66) (318) Income return 112 22 134 Disposal of fixed assets 39 (2) 37 Revaluation surpluses 37 35 72 Capital return 76 33 109 Taxation (net of prior year tax) (6
Slide 54: Group Net Rental Income
Group Net Rental Income £ Million % Year ended 31 March 2001 (restated) 371.8 Rent reviews and new lettings 18.4 5.0 Current and prior year purchases (Homebase £10.0m) 18.0 4.8 Current and prior year sales (BL West JV £9.7m) (16.6) (4.5) Other (5.0) (1.3) Increase in income 14.8 4.0 Year ended 31 Ma
Slide 55: Underlying Profit Before Tax
Underlying Profit Before Tax March 2002 March 2001 £m £m Profit before tax (2001 pre exceptional) 171.3 171.1 Profit on property trading (6.8) (3.1) Other income: Liberty receipt - (15.3) Disposal of fixed assets Haslemere stake (25.5) - Selfridges stake - (14.6) Other (11.5) (17.5) (37.0) (47.4) Un
Slide 56: Tax Charge
Tax Charge Current Deferred Total £m £m £m Tax on profit for year of £171.3m 51.4 51.4 30.0% Losses and other reliefs (38.6) 22.9 (15.7) 12.8 22.9 35.7 20.8% Prior year items (13.5) (10.3) (23.8) 2002 tax charge (0.7) 12.6 11.9 6.9% 2001 (pre-exceptional, restated) 18.8 16.5 35.3 20.6% 56
Slide 57: Contingent Tax
Contingent Tax March 2002 March 2001 £m £m Contingent tax on realisation of properties 700 720 and not retaining capital allowances Less: Losses (100) (90) Contingent tax – pre FRS 19 600 630 Effect of retaining capital allowances (90) (80) Contingent tax – for statutory reporting 510 550 57
Slide 58: Operating Cash Flow
Operating Cash Flow March 2002 March 2001 £m £m Net operating cash flow 382.4 380.3 Net interest excluding exceptional items £83.6m (2001 - £74.8m) (222.6) (257.7) Dividends received 30.3 7.6 Taxation (7.7) (26.1) Net operating cash flow after finance and tax 182.4 104.1 Effective post tax cash flow
Slide 59: Key Features
Key Features • Capital efficiency – optimal leverage • Risk averse liability management • Interest rate management • Strong earnings growth potential • Cash flow security 59
Slide 60: Capital Efficiency
Capital Efficiency March 2002 Total properties (including share of JVs) £9.3bn Net debt £3.8bn Share of JV net debt (only £33m guaranteed by BL) £0.8bn Adjusted net assets £4.3bn NAV gearing ratio 89% 60
Slide 61: Liability Management: Risk Averse
Liability Management: Risk Averse Group 31 March 2002 31 March 2001 Net Debt: £3,840m £3,717m Weighted average debt maturity 19.8yrs1 17.8yrs At fixed or capped rates 95%1 89% Interest cover (net rents / net interest) 1.5 times 1.5 times Mortgage ratio (debt / property and investments) 46% 46% Cash
Slide 62: Interest Rate Management
Interest Rate Management Proforma1 2002 2001 2000 1999 1998 Average interest rate 6.5% 6.6% 6.9% 7.1% 7.3% 8.5% Lock in interest rates % of net debt at fixed Average debt profile: or capped rates1 0 - 1 years 91% 2 - 5 years 83% 5 -10 years 73% 10 - 15 years 67% 15 – 20 years 67% 20 – 25 years 65% 1
Slide 63: Securitisations
Securitisations • £1.4 bn raised from two further asset specific financings secured on 35 Sainsbury supermarkets and Meadowhall Date Issued Amount Effective Average 2002 raised rate maturity Valuation Sainsbury Jun 2001 £575m 6.8% 16 yrs £742m Meadowhall Dec 2001 £825m 5.5% 21 yrs £1,280m – Long ter
Slide 64: Convertible Bond redemption
Convertible Bond redemption • Enhances earnings with an interest saving of £5.3m pa, reducing the proforma average interest rate by 12bp to 6.5% • Refinance £323m convertible bond with existing bank facilities: remove the dilutive effect of the potential issue of 48.1m shares – Increase proforma ful
Slide 65: Strong Earnings Growth Potential
Strong Earnings Growth Potential March 2002 March 2001 Change £m pa £m pa £m pa Annualised net rents 525 493 32 Reversionary income 88 113 (25) Total rents from existing leases 613 606 7 ERV from developments 156 132 24 Total 769 738 31 65
Slide 66: Secure Income Streams
Secure Income Streams Secure long-term income streams: March 2002 Average unexpired lease term 18.3 yrs Tenant risk profile (D&B Stress Score: % rated high risk) 1.9 % Tenant concentration (% of rental income from top 10 tenants) 39 % Bad debts charge (% of gross rental income) 0.2 % 66
Slide 67: Cash Flow Security
Cash Flow Security • Matched debt and lease maturities 2002 2001 2000 1999 1998 Average debt maturity 19.8yrs1 17.8yrs 18.4yrs 23.0yrs 19.9yrs Average unexpired lease term 18.3yrs 19.0yrs 19.9yrs 19.7yrs 21.3yrs • Leases with upward only rent reviews 1 Proforma for the £323m Convertible Bond redempt
Slide 68: Committed income
Committed income 84% of income secured until March 2012 (10 years) 900 800 700 600 500 £ Million 400 300 200 100 0 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 Year Ending 31 March Current annualised net rents Lease expiries - re-let 68
Slide 69: Reversionary Income
Reversionary Income £88 million of reversions to current market levels 900 800 700 600 £ Million 500 400 300 200 100 0 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 Year Ending 31 March Current annualised net rents Lease expiries - re-let Reversi
Slide 70: Developments
Developments Total prospective ERV £156 million from developments 900 800 700 600 £ Million 500 400 300 200 100 0 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 Year Ending 31 March Current annualised net rents Lease expiries - re-let Reversionary inco
Slide 71: 10 Year View
10 Year View 1 year 5 years 10 years 2002 1997 1992 Total properties under management £11.1bn £5.8bn £1.8bn Group properties and investments £8.4bn £4.8bn £1.8bn Net debt £3.8bn £2.0bn £0.9bn Adjusted net assets £4.3bn £2.4bn £0.8bn NAV gearing ratio 89% 89% 113% Interest cover 1.5 times 1.5 times 1
Slide 72: Performance Record
Performance Record Average Growth Rates 1 Year 5 Years 10 Years Adjusted fully diluted NAV per share 3.7% 11.2% 10.9% Dividends per share 7.8% 6.6% 6.9% Total return on adjusted fully diluted net assets 5.3% 12.9% 12.9% 72
Slide 73: Outlook
Outlook 73
Slide 74: Corporate Strategy
Corporate Strategy British Land’s opportunistic but risk-averse strategy seeks to achieve long-term growth in shareholder value by: • focusing on prime assets in the office and retail sectors; • creating exceptional long-term investments with strong covenants, long lease profiles and growth potentia
Slide 75: Appendix
Appendix 75
Slide 76: Main Assumptions: Income Graph
Main Assumptions: Income Graph The graph shows the proforma rents at 31 March 2002, with no changes to reflect actual or forecast acquisitions, disposals, expenditures and financings or other events subsequent to that date. Rents are the sum of the annualised current passing rent at 31 March 2002, e
Slide 77: Basis of preparation and forward-looking statements
The information has been extracted largely from the Preliminary Announcement for the year ended 31 March 2002. General property market information has been extracted from various agents reports. The results for the year ended 31 March 2002 comply with Financial Reporting Standard 19 (Deferred Tax) a