British Land Company Plc · LSE:BLND
British Land — H1 2013/14 Earnings Presentation
83 slides from British Land's earnings presentation, Nov 13, 2013
Slide 1: Half Year Results Presentation
WWW.BRITISHLAND.COM HALF YEAR RESULTS PRESENTATION HALF YEAR ENDED 30 SEPTEMBER 2013
Slide 2: Results Overview
RESULTS OVERVIEW Chris Grigg Chief Executive 1
Slide 3: Introduction
INTRODUCTION • A strong set of results – Improving performance from Retail – Further step-up in Offices’ performance • Successfully executing our plan – Investing our placing proceeds – Increasing our development pipeline 2
Slide 4: Performance Highlights
PERFORMANCE HIGHLIGHTS HY to 30 September % Change UK Valuation £11.2bn +2.8% Capital Returns vs IPD +100bps NAV per Share 623p +4.5% Dividend per Share 13.5p +2.3% 6 month Total Accounting Return 6.8% 3
Slide 5: Material Improvement in Valuations
MATERIAL IMPROVEMENT IN VALUATIONS UK Valuation Drivers £m TOTAL VALUATION MOVEMENT 320 £22m £90m £309m 220 120 20 -80 H1 2012/13 H2 2012/13 H1 2013/14 Asset Management Development Yield Movement Total Valuation 4
Slide 6: Stronger Letting Activity
STRONGER LETTING ACTIVITY • Investment lettings and renewals at 5.4% ahead of ERV Increased Letting Activity Future Annual Rent Added Sq ft 000’s £m 14.1 322 9.8 110 59 609 6.1 410 433 H1 2012/13 H2 2013/13 H1 2013/14 H1 2012/13 H2 2012/13 H1 2013/14 Investment Lettings Development Lettings Lettings
Slide 7: Investing in Line with Strategy
INVESTING IN LINE WITH STRATEGY ADDING FUTURE GROWTH TO THE PORTFOLIO Successfully • Proceeds fully deployed ahead of expectations 1 investing placing proceeds • Largest deal Paddington Central (£470m) • Expected to be accretive to earnings in current year Rebuilding • £1.1bn recently committed/near
Slide 8: Retail
& British Land
Slide 9: Improving Retail Performance
IMPROVING RETAIL PERFORMANCE • Strengthening capital returns (+1.5%) after 18 months of declines • Performance driven by yield compression and asset management • Continue to outperform IPD across all subsectors Capital Returns (%) H1 2012/13 H2 2012/13 H1 2013/14 Retail Parks (2.3) (0.8) 1.0 Superst
Slide 10: Continued Retail Polarisation
CONTINUED RETAIL POLARISATION Retail ERV Growth Retail Occupancy Indexed March 2010 = 100 % 105 97.4 98.0 100 94.7 95.3 95 88.3 88.9 90 85 Mar Sep Mar Sep Mar Sep Mar Sep Mar 13 Sep 13 10 10 11 11 12 12 13 13 BL All Retail IPD All Retail IPD Secondary BL All Retail IPD All Retail IPD Secondary 9
Slide 11: Strong Retail Asset Management
STRONG RETAIL ASSET MANAGEMENT • Leasing activity significantly ahead Increased Lettings/Renewals of last half year Sq ft 000s • Lettings/renewals 3.8% ahead of ERV 721 • Administration down to 0.2% of total rent (from 0.9%) • Occupancy up 60bps to 98.0% 403 354 • Continue to outperform on footfall
Slide 12: Breadth and Quality of Offer in Retail
BREADTH AND QUALITY OF OFFER IN RETAIL Homewares • Wren Kitchens at Colchester and Oxford • CSL at Stockton 125,000 sq ft • Next Home at Colchester • Harvey’s at Bradford, Wakefield and Oldham • Nike at Rotherham and Chester Fashion • Outfit at Stockton • Schuh at Glasgow Fort 248,000 sq ft • Fat Fa
Slide 13: Recycling Retail Assets
TAKING ADVANTAGE OF MARKET STRENGTH RECYCLING RETAIL ASSETS • Increase in pace of asset sales • £311m of retail assets sold to year to date; £243m sold last year • Over £80m of deals under offer; more than £100m in the market Retail Asset Sales (Year to Date) No of Assets Sale Price Retail Parks 3 £
Slide 14: Investing in the Right Retail Locations: Southgate, Bath
INVESTING IN THE RIGHT RETAIL LOCATIONS SOUTHGATE, BATH 50% acquired for £101m 430,000sq ft Top 10 Bath as a UK Tourist Destination 18m Visitors pa 13
Slide 15: Investing in the Right Retail Locations: Southgate, Bath
INVESTING IN THE RIGHT RETAIL LOCATIONS SOUTHGATE, BATH Modern retail formats Great brands Bought significantly below replacement cost Growth potential • Affordable rents • Improving the occupier mix • 5.7% yield when fully let 14
Slide 16: Developing in the Right Retail Locations: Whiteley
DEVELOPING IN THE RIGHT RETAIL LOCATIONS WHITELEY SHOPPING 320,000 sq ft scheme completed in May 7.8% yield on cost Nearly 2.5m shoppers since opening £90m estimated annual sales Highly affordable • Rents £25 - £45psf • Service charge: £3.50psf Planning for 60,000 sq ft leisure scheme 15
Slide 17: Offices and Residential
OFFICES AND RESIDENTIAL 16
Slide 18: Another Strong Office Performance
ANOTHER STRONG OFFICE PERFORMANCE • Strong performance with capital returns of 5.4% • Capital returns driven by both standing investments, 3.4% and developments, 11.1% • Outperformed IPD across sector and subsectors Capital Returns (%) H1 2012/13 H2 2012/13 H1 2013/14 West End 3.6 6.2 6.9 City 1.5 1
Slide 19: Benefiting from Increased West End Exposure
BENEFITING FROM INCREASED WEST END EXPOSURE £2.7bn £4.5bn £5.5bn 41% 43% 64% 59% 57% 36% 36%2010 MARCH SEP 2013 SEP 2013 (Reported) Including NDV of committed developments West End City 18
Slide 20: Strong Office Asset Management
STRONG OFFICE ASSET MANAGEMENT • Step up in letting activity across Letting Activity by Sector investment and developments 3% 2% • 439,000 sq ft of lettings/extensions – 9.5% ahead of ERV 7% 8% TMT – Further 142,000 sq ft under offer 37% • Occupancy at 94.7% reflecting 12% completion and acquisition
Slide 21: Delivering Performance Through Developments
DELIVERING PERFORMANCE THROUGH DEVELOPMENTS • Completed 637,000 sq ft of London developments • 262,000 sq ft development pre-lets agreed/under offer 10-30 BROCK STREET 10 PORTMAN SQUARE CLARGES £20.1m ERV; 88% pre-let £9.7m ERV; 51% pre-let 11% valuation uplift Profit on cost of over 60% Profit on c
Slide 22: Creating Outstanding Spaces – Regent's Place
CREATING OUTSTANDING SPACES – REGENT’S PLACE 10-30 Brock Street Completion another significant milestone 10 Brock Street 100% let 3 months after completion Manchester City FC Secures additional £18m of rent for 16 years 21
Slide 23: Delivering Rental Growth – Regent's Place
DELIVERING RENTAL GROWTH – REGENT’S PLACE 2009/10 2010/11 2011/12 2012/13 2013/14 10/20 Triton St 20 Triton St 10/30 Brock Street £ Debenhams Manchester City FC PSF 70psf 70 65 60 55 50 45 42.50psf 22
Slide 24: Delivering Strong Returns from 2010 Office Development Programme
DELIVERING STRONG RETURNS FROM 2010 OFFICE DEVELOPMENT PROGRAMME • Profit on cost over 40%; IRRs of c30% £m £490m £423m 90 £391m £359m £321m 126 £257m 175 192 188 400 192 297 216 133 167 65 Mar 11 Sep 11 Mar 12 Sep 12 Mar 13 Sep 13 Profit Taken Profit to Come 23
Slide 25: Paddington Central
PADDINGTON CENTRAL Acquired for £470m Fully let yield of 6.2% Significant opportunity to create value from asset management and development Third of vacant office space already let at terms ahead of ERV on acquisition 24
Slide 26: Shoreditch Estate – East London
SHOREDITCH ESTATE – EAST LONDON S W Broadgate E N Shoreditch Estate 25
Slide 27: Replenishing Our Development Pipeline
REPLENISHING OUR DEVELOPMENT PIPELINE • 2.1m sq ft next phase London and retail development (recently committed and near-term) • £1.1bn total development cost • Estimated profit to come of around £275m Clarges The Aldgate Yalding 4 Kingdom Shoreditch 5 Kingdom Estate Hempel Phase 1 House Street Esta
Slide 28: Financial Review
FINANCIAL REVIEW Lucinda Bell Finance Director 27
Slide 29: Highlights
HIGHLIGHTS HY to 30 September H1 2013 H1 2014 Change Underlying Profit before Tax (£m) 137 146 +6.6% Underlying Earnings per Share (p) 15.2 14.5 (4.6%) Dividend per Share (p) 13.2 13.5 +2.3% Net Asset Value per Share (p) 596 623 +4.5% Valuation Performance 0.2% 2.8% Total Accounting Return 2.4% 6.8%
Slide 30: Net Rental Income Movement
NET RENTAL INCOME MOVEMENT £m 3 3 13 (1) (15) Like for like Retail 1.5% 275 272 Offices 0.4% Total 1.2% H1 2013 PY Acquisitions/ Placing Developments Like for Like Other H1 2014 Disposals Investment 29
Slide 31: Financing Costs
FINANCING COSTS £m 6 2 1 (3) 104 98 H1 2013 Ropemaker Sale Equity Placing Equity Proceeds Other H1 2014 Proceeds Investment 30
Slide 32: Income Statement
INCOME STATEMENT HY to 30 September H1 2012/13 H1 2013/14 Change Net Rental Income (£m) 272 275 1.1% Fees & Other Income (£m) 8 7 Administrative Expenses (£m) (39) (38) Net Finance Costs (£m) (104) (98) Underlying PBT (£m) 137 146 +6.6% Underlying EPS (p) 15.2p 14.5p (4.6)% 31
Slide 33: Deploying Our Placing Proceeds
DEPLOYING OUR PLACING PROCEEDS • £790m acquisition spend including £100m of development opportunities • NIY of 5.7% on £690m of income producing investments • £230m of prospective development spend • Earnings neutral in H1; 0.5p accretive in FY14 Prospective Acquisition Spend Development Spend £m £m
Slide 34: Growth in EPRA Net Asset Value
GROWTH IN EPRA NET ASSET VALUE NAV (p) 14p 10p 10p (13p) 10p (4p) 623p 596p Mar 13 Developments Offices Retail Underlying Dividends Other Sep 13 Profit 33
Slide 35: Strong Valuation Performance
STRONG VALUATION PERFORMANCE ERV IPD Capital Return Valuation Uplift Growth NEY Outperformance Weighting HY to 30 September 2013 £m % % % (bps) % UK Retail 6,636 1.5 0.6 5.8 +50 59% UK Offices & Residential 4,561 4.9 41% - Of which Offices 4,401 5.0 1.7 5.5 +160 39% UK Total 11,197 2.8 0.9 5.7 +100
Slide 36: Debt Financing – Diverse Funding Profile
DEBT FINANCING – DIVERSE FUNDING PROFILE Diverse Debt Profile (30 September 2013)1 • £610m of new financing arranged in H1 £0.6bn • £3.1bn raised since 2011 £0.9bn (£2.6bn BL share) • £1.3bn of facilities in place for £1.7bn £1.7bn more than two years • 75% fixed over 5 years £1.0bn £0.4bn £0.7bn Dr
Slide 37: Strength of Balance Sheet Metrics
STRENGTH OF BALANCE SHEET METRICS Proportionally Consolidated 31 Mar 2013 30 Sep 2013 Loan to Value (LTV) 40.2% 42.3% Average Interest Rate 4.6% 4.2% Interest Cover 2.3x 2.5x Average Maturity of Drawn Debt (years) 9.9 8.9* Group 31 Mar 2013 30 Sep 2013 Loan to Value (LTV) 24.2% 28.5% Average Interes
Slide 38: Development Programme Driving Future Performance
DEVELOPMENT PROGRAMME DRIVING FUTURE PERFORMANCE • 2010 committed office programme already 68% pre-let, well ahead of plan • Recently committed programme; profit on cost 25% • Total pipeline of 3m sq ft Sq ft ‘000 Current Dev. Cost £m 2010 Committed Development Programme 2,666 1,335 Recently Committ
Slide 39: Development Programme – Contributing to Future Performance
DEVELOPMENT PROGRAMME – CONTRIBUTING TO FUTURE PERFORMANCE • Current development commitment Development Commitment of £1.3bn £m • Residential commitment at £500m 1400 level, as previously set 1200 • New developments to come on 1000 stream as 2010 programme 800 completes 600 • Capacity to further rep
Slide 40: A Platform for Future Income Growth
A PLATFORM FOR FUTURE INCOME GROWTH Cash Flow Basis Accounting Basis Annualised Gross Rents £m £m Current Passing Rent 5495 Expiry of Rent-free Periods 571 5731 Fixed, Minimum Uplifts 13 2010 Non-Completed Developments Pre-let 28 24 Recently Committed Developments Pre-let 4 4 Total Contracted 651 60
Slide 41: Conclusion
CONCLUSION CHRIS GRIGG Chief Executive 40
Slide 42: Outlook
OUTLOOK • Market outlook overall positive – London to remain strong – Improving outlook for high quality retail • Expect to continue to benefit from our actions – Increased exposure to London and the South East (now 61% of portfolio) – Investment in up and coming London locations – Replenished devel
Slide 43: Our Priorities
OUR PRIORITIES Driving • Focusing on leasing and asset management 1 growth from standing investments • Bedding down new assets such as Ealing Broadway and Southgate, Bath • Completing and letting up our 2010 programme Delivering • Starting on site on recently committed developments 2 returns from de
Slide 44: Summary
SUMMARY • British Land is a strongly performing business – Delivering value from asset management, development and portfolio reshaping • Executing smartly, according to plan – Raised funds and successfully deployed them – Continue buying and selling well – Replenishing our development pipeline • Enc
Slide 45: Appendices
G “vw, British Land
Slide 46: Another Successful Period Operationally
ANOTHER SUCCESSFUL PERIOD OPERATIONALLY BL UK Property Returns vs IPD1 bps 180 160 140 160 120 100 80 100 90 60 40 60 60 50 20 - Retail Offices Total Capital Returns Total Returns 1 For 6 months ended 30 September 2013 45
Slide 47: Reconciliation of Underlying Profit Before Tax
RECONCILIATION OF UNDERLYING PROFIT BEFORE TAX HY to 30 September (£m) 2012/13 2013/14 IFRS profit before tax 109 422 Net valuation movement (includes disposals) 13 (287) Deferred and current taxation of joint ventures & funds (3) (6) Amortisation of intangible assets 1 - Capital financing costs 10
Slide 48: Period on Period Profit Growth
PERIOD ON PERIOD PROFIT GROWTH £m 7 3 (3) 13 (4) 146 137 (8) H1 2013 PY Equity Placing Like-for-Like Development Cost of New Other H1 2014 Transactions Income Activity Facilities Growth 47
Slide 49: UK Gross Rental Income – Sectoral
UK GROSS RENTAL INCOME1 – SECTORAL HY to 30 Sep 2013 Annualised as at 30 Sep 2013 (Accounting Basis) £m Group JVs & Funds Total Group JVs & Funds Total Retail parks 52 21 73 102 45 147 Superstores 5 32 37 7 63 71 Shopping centres 27 30 57 50 64 114 Department stores 16 - 16 34 - 34 Leisure 14 - 14 2
Slide 50: Operating Costs Metric
OPERATING COSTS METRIC HY to 30 September (£m) H1 2012/13 H1 2013/14 Property outgoings 7 9 Administrative expenses 37 36 Share of joint ventures and funds expenses 7 9 Less: Performance & management fees (from joint ventures & funds) (5) (5) Other fees and commission (3) (2) EPRA Costs (including d
Slide 51: Reconciliation of EPRA NAV & NNNAV
RECONCILIATION OF EPRA NAV & NNNAV As at 31 Mar 13 30 Sep 13 £m Pence £m Pence Balance Sheet (IFRS) Net Assets 5,687 568 6,106 604 Deferred tax arising on revaluation movements 14 1 5 - Mark to market on effective cash flow hedges and 198 20 138 14 related debt adjustments Adjust to fully diluted on
Slide 52: EPRA Balance Sheet (Proportional Consolidation)
EPRA BALANCE SHEET (PROPORTIONAL CONSOLIDATION) £m Mar 13 Group JVs & Funds Sep 13 Total properties 10,499 6,219 5,219 11,438 Net debt (4,266) (2,628) (2,292) (4,920) Other net liabilities (266) (51) (169) (220) EPRA Net Assets 5,967 3,540 2,758 6,298 Loan to value (LTV)1 40.2% 28.6% 42.3% Average i
Slide 53: Debt Maturity – Group
DEBT MATURITY – GROUP1 £m 1,000 800 600 400 200 0 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036 2037 Year to 30 September Debentures & Loan Notes Private Placements Convertible Bonds 1 Pro forma for the drawdown of the £200m 2014 U
Slide 54: Debt Maturity – Joint Ventures and Funds
DEBT MATURITY – JOINT VENTURES AND FUNDS1 £m 1,000 800 600 400 200 0 2014 2015 2016 2017 2018 2019-2023 2024-2036 Year to 30 September JVs - Securitisations JVs - Bank Drawn Funds - Bank Drawn JVs - Bank Undrawn Funds - Bank Undrawn 1 At British Land share 53
Slide 55: Gross and Net Debt Reconciliation
GROSS AND NET DEBT RECONCILIATION As at 30 September 2013 (£m) Group JVs & Funds Total Gross debt (principal value) 2,687 2,507 5,194 IFRS Adjustments: Issue costs and premia (7) (11) (18) Fair value hedges 61 - 61 Other items 20 - 20 Gross Debt (IFRS basis) 2,761 2,496 5,257 Market value of derivat
Slide 56: EPRA Net Debt – Proportionally Consolidated
EPRA NET DEBT – PROPORTIONALLY CONSOLIDATED £m LTV 40.2% 42.3% £1.5bn £2.1bn Available Available 625 153 74 Facilities 19 18 Facilities 136 99 4,920 4,266 Mar 13 Acquisitions Disposals Development Operating Dividends Convertible Other Sep 13 Net Debt and Capex Cashflow bond market Net Debt value 55
Slide 57: Major Holdings
MAJOR HOLDINGS As at 30 September 2013 BL Sq ft Rent Occupancy Lease (excl. developments under construction) Share % 000’s £m pa1 Rate % Length yrs3 2 1 Broadgate, London EC2 50 3,963 177 97.0 7.6 2 Regent's Place, London NW1 100 1,589 67 97.6 9.6 3 Meadowhall Shopping Centre, Sheffield 50 1,374 82
Slide 58: Top Customers & Customer Split by Industry
TOP 20 CUSTOMERS & CUSTOMER SPLIT BY INDUSTRY As at 30 September 2013 % of Total Rent Customer Split by Industry (%) Tesco plc 7.3 Sainsbury Group 5.9 2% Debenhams 5.7 6% UBS AG 3.2 15% Home Retail Group 2.7 11% Kingfisher (B&Q) 2.6 HM Government 2.5 18% Arcadia Group 2.1 14% Next plc 2.1 Virgin Act
Slide 59: UK Portfolio Weighting
UK PORTFOLIO WEIGHTING As at 30 September 2013 (%) 2012 2013 (Current) 2013 (Pro forma)¹ Retail parks 24.5 22.9 20.8 Superstores 12.6 11.7 10.9 Shopping centres 17.6 17.3 15.7 Department stores 4.6 4.6 4.1 Leisure 3.0 2.8 2.6 UK Retail 62.3 59.3 54.1 City 17.1 16.5 17.3 West End 18.4 22.0 25.3 Provi
Slide 60: UK Portfolio Valuation by Sector
UK PORTFOLIO VALUATION BY SECTOR Group JVs & Funds Total Change %2 As at 30 September 2013 £m £m1 £m H1 Retail parks 1,755 814 2,569 1.1 Superstores 118 1,188 1,306 2.0 Shopping centres 756 1,181 1,937 0.3 Department stores 512 1 513 6.5 Leisure 308 3 311 2.0 UK Retail 3,449 3,187 6,636 1.5 City 57
Slide 61: UK Portfolio Net Yields
UK PORTFOLIO NET YIELDS1 As at 30 September 2013 EPRA Net Initial EPRA Topped- Overall Topped- Net Net (excl. developments) Yield % Up Net Initial Up Net Initial Reversionary Equivalent 2 Yield % Yield%3 Yield % Yield % Retail parks 5.5 5.7 5.8 5.8 5.9 Superstores 5.1 5.1 5.1 5.1 5.1 Shopping centre
Slide 62: UK Lease Length and Occupancy
UK LEASE LENGTH AND OCCUPANCY As at 30 September 2013 Average Lease Length (yrs) Occupancy Rate (%) To Expiry To Break Occupancy Occupancy (underlying)1 Retail parks 9.5 8.6 95.7 97.4 Superstores 15.0 15.0 100.0 100.0 Shopping centres 9.6 8.8 95.6 97.0 Department stores 27.4 24.1 99.5 99.5 Leisure 2
Slide 63: UK Annualised Rent & Estimated Rental Value (ERV)
UK ANNUALISED RENT & ESITMATED VALUE (ERV) As at 30 September 2013 Annualised Rents (Valuation Basis) £m1 ERV £m Average Rent (£psf)2 (excl. Developments) Group JVs & Funds Total Total Contracted ERV Retail parks 103 46 149 159 23.2 23.8 Superstores 7 63 70 70 21.8 21.7 Shopping centres 50 66 116 12
Slide 64: UK Rent Subject to Open Market Rent Review
UK RENT SUBJECT TO OPEN MARKET RENT REVIEW 12 months to 30 September (£m) 2014 2015 2016 2017 2018 2014-16 2014-18 Retail parks 18 17 22 16 21 57 94 Superstores 8 23 13 4 4 44 52 Shopping centres 14 17 14 14 12 45 71 Department stores - - 5 - 1 5 6 Leisure - - - - - - - UK Retail 40 57 54 34 38 151
Slide 65: UK Rent Subject to Lease Break or Expiry
UK RENT SUBJECT TO LEASE BREAK OR EXPIRY As at 30 September (£m) 2014 2015 2016 2017 2018 2014-16 2014-18 Retail parks 4 7 7 9 13 18 40 Superstores - - - - - - - Shopping centres 10 7 12 11 6 29 46 Department stores - - - - - - - Leisure - - - - - - - UK Retail 14 14 19 20 19 47 86 City 1 1 19 - 8 2
Slide 66: ERV Resetting to Market
ERV RESETTING TO MARKET Annualised at 30 September (£m pa) 2014 2015 2016 2017 2018 2014-16 2014-18 ERV Expiring – existing portfolio1 20 19 39 33 34 78 145 Speculative developments – City 10 1 - - - 11 11 Speculative developments – West End 9 - 6 - - 15 15 Speculative developments – Retail 3 1 - -
Slide 67: Total ERV Resetting to Market (Next 3 Years)
TOTAL ERV RESETTING TO MARKET (NEXT 3 YEARS) Total ERV Resetting to Market (Next 3 Years) 30% 25% 20% 15% 5% 29% 10% 13% 5% 0% British Land IPD (exc. development) Portfolio Vacancies & Expiries Developments (Speculative)¹ ¹ ERV of unlet portion of committed developments as a proportion of portfolio
Slide 68: UK Contracted Rental Increases (Cash Flow Basis)
UK CONTRACTED RENTAL INCREASES (CASH FLOW BASIS) Annualised at 30 September (£m pa) 2014 2015 2016 2017 2018 2014-16 2014-18 Expiry of rent free periods – 38 9 9 1 - 56 57 standing portfolio Expiry of rent free periods – - 3 21 5 3 24 32 development pre-lets Fixed uplifts (EPRA basis) 1 1 - - 1 2 3
Slide 69: Recently Committed Development Programme
RECENTLY COMMITTED DEVELOPMENT PROGRAMME 12 months to 30 September (£m) Sector BL Share Sq ft PC Current Cost to ERV Pre-let Resi End Calendar Value Complete Value % '000 Year £m £m1,4 £m2 £m £m 3 The Clarges Estate Mixed Use 100 193 2017 170 179 5.6 - 388 Hereford Retail 100 310 2014 35 40 5.5 2.8
Slide 70: 2010 Development Programme
2010 DEVELOPMENT PROGRAMME 12 months to 30 September (£m) Sector BL Share Sq ft PC Current Cost to ERV Pre-let Resi End Calendar Value Complete Value3 % '000 Year £m £m1,6 £m2 £m £m 4 10 - 30 Brock St, Regents Place Mixed Use 100 505 Completed 360 6 20.1 17.1 115 5 Broadgate Offices 50 710 2015 195
Slide 71: Near-term and Prospective Developments
NEAR-TERM AND PROSPECTIVE DEVELOPMENTS As at 30 September 2013 (£m) BL Share Sq ft Total Cost Status % '000 £m1 Near-term Pipeline The Shoreditch Estate Offices 100 322 165 Pre-submission 2 5 Kingdom Street Offices 100 240 154 Consented 4 Kingdom Street Offices 100 145 93 Consented Surrey Quays (Ext
Slide 72: Estimated Future Development Spend and Capitalised Interest
ESTIMATED FUTURE DEVELOPMENT SPEND AND CAPITALISED INTEREST PC Prelet ERV Cost to complete £m (excluding notional interest) – 6 mths As at 30 September 2013 Calendar Year £m Mar 14 Sep 14 Mar 15 Sep 15 Mar 16 Sep 16 5 Broadgate 2015 19.2 34 25 28 The Leadenhall Building 2014 8.6 19 11 13 Marble Arch
Slide 73: Estimated Future Development Rental Income (Accounting Basis)
ESTIMATED FUTURE DEVELOPMENT RENTAL INCOME (ACCOUNTING BASIS) PC Gross Rental Income (Accounting Basis)1 £m – 12 mths As at 30 September 2013 Calendar Year Sep 14 Sep 15 Sep 16 Sep 17 Sep 18 Committed Developments 5 Broadgate Q1 2015 Contracted - 9 18 18 18 The Leadenhall Building Q2 2014 Contracted
Slide 74: Number of Shares
NUMBER OF SHARES Number of shares (m) Mar 13 Sep 13 Basic Weighted Average 895 993 Period End 986 999 Diluted Weighted Average 901 997 Period End 1,001 1,011 73
Slide 75: Shortage of Quality Space
SHORTAGE OF QUALITY SPACE West End Development Completions M sq ft 7 6 5 4 3 2 1 0 90 91 92 93 94 95 96 97 98 99 00 01 02 03 04 05 06 07 08 09 10 11 12 13 14 15 16 Total (m) Available U/C 10 yr average Grade A take-up Source: Deloitte Real Estate 74
Slide 76: Shortage of Quality Space
SHORTAGE OF QUALITY SPACE City Development Completions M sq ft 2.5 2.0 1.5 1.0 0.5 0.0 90 91 92 93 94 95 96 97 98 99 00 01 02 03 04 05 06 07 08 09 10 11 12 13 14 15 16 Total (m) Available U/C 10 yr average Grade A take-up Source: Deloitte Real Estate 75
Slide 77: Office Market Rental Outlook
OFFICE MARKET RENTAL OUTLOOK Rental Growth Driven by Imbalance between Supply and Demand £ psf 140 120 100 80 60 40 20 Actual Forecast - 1990 1991 1993 1994 1996 1997 1999 2000 2002 2003 2005 2006 2008 2009 2011 2012 2014 2015 2017 West End City Source: CBRE (historic) and Average Agents' Consensus
Slide 78: Regent's Place
REGENT’S PLACE [Regent's Place Management Offic ED Sainsbury's Local Pret a Manger =O tax 10 Brock Street Starbucks € Pod Regent's Park Wasabi vn Tri 7,1 Street E Eat Triton Triton Squarel 13 14 _ Square NatWest Union Bar and Gri Giovanni Rana Regent's Park ‘UNDERGROURD: BARERLOO UNE New Diorama The
Slide 79: Paddington Central
PADDINGTON CENTRAL Key: BL ownership Non BL ownership Multi-let offices Multi-let offices 268,000 sq ft 143,000 sq ft 200 residential units Development sites sold on long leases; (355,000 sq ft) + retail at ground floor Crossrail box below (80,000 sq ft) FOUR KINGDOM STREET New Hammersmith & FIVE KI
Slide 80: Broadgate
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Slide 81: Our Team Today
OUR TEAM TODAY OFFICES CHARLES BUTTERS NICOLA THOMAS DAVID LOCKYER MATTHEW PINSENT Acquisitions Head of Property Head of West End Office Head of City Office Director Performance Asset Management Asset Management RETAIL DARREN RICHARDS RICHARD WISE BRYAN LEWIS Head of Investment Head of UK Retail Hea
Slide 82: Our Team Today
OUR TEAM TODAY STRATEGY JEAN-MARC VANDEVIVERE Head of Strategy & Residential FINANCE SIMON CARTER ROB HUDSON SARAH BARZYCKI MARC FURLONGER Head of Treasury Group Financial Head of Finance Head of Forecasting & Capital Markets Controller 81
Slide 83: Disclaimer
DISCLAIMER The information contained in this presentation has been extracted largely from the Half Year Results Announcement for the year ended 30 September 2013. This presentation may contain certain “forward-looking” statements. By their nature, forward-looking statements involve risk and uncertai