Slide 1: Interim Results: Momentum Maintained
WORKSPACE ANALYST AND INVESTOR PRESENTATION 13 NOVEMBER 2012 INTERIM RESULTS MOMENTUM MAINTAINED
Slide 2: Agenda
AGENDA WORKSPACE Jamie Hopkins Chief Executive Officer PERFORMANCE Graham Clemett Chief Financial Officer DIRECTION Jamie Hopkins Chief Executive Officer QUESTIONS
Slide 3: Results
WORKSPACE RESULTS September March Six Months 2012 2012 Change Enquiries (per month) 1,038 1,009 +5% Occupancy (lfl) 88.8% 87.7% Up 1.1% Rent Roll (lfl) £43.6m £42.3m +3% Rent per sq ft. (lfl) £12.99 £12.77 +2% Valuation £781m £760m +2%* EPRA NAV (per share) £3.19 £3.08 +4% blank September September
Slide 4: Driving Income
WORKSPACE DRIVING INCOME FOCUSED ASSET MANAGEMENT 460 lettings: targeted marketing 170 rent reviews: rigorous approach 67 events held: 3,000 attendees REFURBISHMENT AND REDEVELOPMENT ACTIVITY 2 refurbishments completed: Canalot and Whitechapel 6 refurbishment projects initiated: repositioning 2 rede
Slide 5: Driving Values
WORKSPACE DRIVING VALUES 30 30% 20 20% 10 10% Total Return 0 0% 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 H1 2013 * -10 -10% -20 -20% -30 -30% WKP Total Return IPD Universe Total Return *Year to 30th September 2012 3
Slide 6: Highlights
PERFORMANCE HIGHLIGHTS September September 2012 2011 Change Trading Profit after Interest £8.8m £7.8m +13% Profit before Tax £24.6m £16.9m +46% EPRA Earnings per Share 5.9p 5.9p 0% Interim Dividend per Share 3.22p 2.93p +10% blank Net Assets £453m £407m +11% Loan to Value 41% 42% Down 1% EPRA Net As
Slide 7: Trading Profit After Interest
PERFORMANCE TRADING PROFIT AFTER INTEREST £9.0m 9.0 £0.5m £8.8m £8.8m 8.8 £0.8m -£0.2m £0.2m -£0.3m £8.6m 8.6 8.4 £8.4m 8.2 £8.2m 8.0 £8.0m £7.8m 7.8 £7.8m 7.6 £7.6m 7.4 £7.4m 7.2 £7.2m 7.0 £7.0m September Underlying Disposals JV Admin Interest September 2011 Income Income Expenses Costs 2012 5
Slide 8: Cash Flow
PERFORMANCE CASH FLOW £m Trading Net cash from operations 9 1 Dividends paid (8) Other Capital Expenditure (12) Joint Venture Investments (5) (6) Disposals 9 Other 2 Net Cash flow (5) Net Bank Debt at March 2012 (314) Net Bank Debt at September 2012 (319) 6
Slide 9: Debt Analysis
PERFORMANCE DEBT ANALYSIS September Impact of 2012 Retail Bond Pro-forma Secured Bank Facilities £393m (£57m) £336m Unsecured Bond − £57m £57m Term to Maturity (average) 2.7 Years 0.7 Years 3.4 years Undrawn Facilities/Cash £74m (£2m) £72m Percentage hedged (on drawn bank facilities) 77% (2%) 75% Av
Slide 10: EPRA NAV per Share
PERFORMANCE EPRA NAV PER SHARE 3.5 £3.50 3.4 £3.40 £0.06 -£0.06 3.3 £3.30 £0.06 -£0.06 £0.12 £3.19 -£0.01 -£0.01 £3.19 3.2 £3.20 £0.12 £0.06 £3.08 £0.06 -£0.03 -£0.03 £0.01 £0.01 £3.08 3.1 £3.10 £0.14 £0.14 3.0 £3.00 £2.90 £2.90 2.9 £2.90 2.8 £2.80 September Valuation Trading Dividend Other March Va
Slide 11: Refurbishment and Redevelopment Projects
PERFORMANCE REFURBISHMENT AND REDEVELOPMENT PROJECTS Potential Number of Rent Future Future Projects Value* Roll* Capex Rent** Other Refurbishments Completed 2 £15m £0.3m £0m £1.3m − Underway 6 £40m £1.9m £32m £5.6m − Design Stage 8 £37m £1.8m £55m £7.8m − Redevelopments £22m cash Underway 4 £71m £0
Slide 12: Refurbishment & Redevelopment Rent Roll Estimates
PERFORMANCE REFURBISHMENT & REDEVELOPMENT RENT ROLL ESTIMATES £12.0m £10.6m £10.0m £9.3m £8.0m £6.4m £6.0m £4.2m £4.0m £4.0m £3.2m £2.7m £2.8m £2.0m £0.0m Mar 11 Mar 12 Sep 12 Mar 13 Mar 14 Mar 15 Mar 16 Mar 17 Completed - Refurbishment Underway - Refurbishment Underway - Redevelopment 10
Slide 13: What We Do: Tailored Business Premises, New and Growing Companies
DIRECTION WHAT WE DO TAILORED BUSINESS PREMISES + NEW AND GROWING COMPANIES + LONDON 11
Slide 14: Tailored Business Premises
DIRECTION TAILORED BUSINESS PREMISES Southbank House, SE1 Pall Mall Deposit, W10 12
Slide 15: New and Growing Companies
DIRECTION NEW AND GROWING COMPANIES 1. Business and professional services: 32% 2. Creative industries: 23% 3. Wholesale and retail: 10% 4. Government and public sector: 9% 5. Manufacturing: 9% 6. Other services: 8% 7. IT & communications: 6% 8. Transport and storage: 3% 13
Slide 16: London
DIRECTION LONDON OPPORTUNITY FOR GROWTH WORKSPACE LOCATIONS London continues to lead the UK’s economic recovery Around 750,000 private sector enterprises in London Early stage entrepreneurial activity in London is the highest of any region in the UK London’s GDP expected to grow 1.5% in 2012, 2.4% i
Slide 17: Direction: Capture Growth, Drive Growth, Confident Outlook
DIRECTION CAPTURE GROWTH London factor: Supply Customer confidence: Demand Drive income: Trends positive DRIVE GROWTH Leverage operations and brand Selective acquisitions and disposals Benefit from London residential market CONFIDENT OUTLOOK Solid balance sheet Progressive dividend policy Business i
Slide 18: Questions
© Questions eve) R 3 g iad m 16
Slide 19: Customer Demand: Enquiries per Month
APPENDIX CUSTOMER DEMAND 1400 1200 1000 Enquiries per month 800 600 400 200 0 2010 Q1 2010 Q2 2010 Q3 2010 Q4 2011 Q1 2011 Q2 2011 Q3 2011 Q4 2012 Q1 Jul 2012 Aug 2012 Sep 2012 Oct 2012 2010 2010 2010 2010 2011 2011 2011 2011 2012 2012 2012 2012 2012 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 July Aug Sep Oct 17
Slide 20: Disclaimer
DISCLAIMER This presentation contains forward looking statements. Although the Group believes that the estimates and assumptions on which such statements are based are reasonable, they are inherently uncertain and involve a number of risks and uncertainties that are beyond the Group’s control. The G