British Land Company Plc · LSE:BLND
British Land — Shareholder Meeting (July 2016)
25 slides from British Land's shareholder meeting presentation, Jul 19, 2016
Slide 1: Annual General Meeting
Annual General Meeting 19 July 2016 www.britishland.com @britishlandplc
Slide 2: The 2016 Queen's Award for Enterprise
British Land is proud to have been awarded The 2016 Queen’s Award for Enterprise Acknowledging our economic, social and environmental contribution
Slide 3: The Leadenhall Building – Official opening
The Leadenhall Building – Official opening 3
Slide 4: Introduction
Introduction John Gildersleeve Chairman
Slide 5: Positioned for a range of outcomes
Positioned for a range of outcomes • Resilience built into the company • Low capital commitments, flexibility in our development pipeline • A clear strategy – creating a portfolio suited to future and current needs 5
Slide 6: A resilient business
A resilient business • Quality of income – Long leases – 9 years to first break – High occupancy (99%) – Modern buildings • £2bn of Retail assets recycled • Strength of financing – Gearing at 29.7% (pro forma for disposals) – Long average debt maturity – over 8 years – Weighted average interest rate
Slide 7: Modest development commitments; flexibility for the future
Modest development commitments; flexibility for the future Committed Near term opportunities Medium term opportunities • 195,000 sq ft of offices • 100 Liverpool Street • Meadowhall Leisure – 4 Kingdom Street • 1 Finsbury Avenue • 2–3 Finsbury Avenue – Clarges Mayfair • Plymouth Leisure • Eden Walk,
Slide 8: Aligning our strategy to long term trends
Aligning our strategy to long term trends Key long term trends Implications for British Land Strength Globalisation of London Transforming impact Rise of omnichannel of technology Population growth Sharpened focus and urbanisation on end user Importance of Blurring of work infrastructure and leisure
Slide 9: Our purpose and strategy is aligned around Places People Prefer
Our purpose and strategy is aligned around Places People Prefer Places People Prefer Places where people want to work, shop and live Strategic focus Placemaking Values Customer Orientation We Connect Right Places We Design Capital Efficiency We Enhance Expert People We Enliven 9
Slide 10: Introduction
Introduction Chris Grigg Chief Executive
Slide 11: Placemaking lies at the heart of our business
Placemaking lies at the heart of our business Offices Retail Lifestyle orientated mixed use offices Multi-let lifestyle centres Campuses Regional Large, office-led mixed use Attracting visitors from a wide lifestyle campuses catchment for a planned trip Campus-lite Local Smaller clusters Fitting into
Slide 12: How Britain shops today
How Britain shops today 39% ofof home food eaten out in the UK c. 90% of shopping spend touches the physical store 28% ofuseBLF&B/leisure visitors Source: Verdict Source: ONS/British Land surveys <20 mins average customer drive time to BL assets Convenience ranked #1 70% importance for a shopping tr
Slide 13: A well positioned multi-let portfolio
A well positioned multi-let portfolio Potential to reach 60% BL regional centres of the population BL local centres BL asset catchments Annual footfall of 330m 90% of our car parking spaces are free 13
Slide 14: Our Retail operational metrics remain strong
Our Retail operational metrics remain strong Total multi-let portfolio Regional Local +3.0% Footfall Ahead of market by +2.9% +3.2% 440 bps in-store sales +2.4% Retailer Ahead of market by +2.2% +3.2% 200 bps ERV growth 3.4% Ahead of market by 3.5% 3.3% 200 bps 14
Slide 15: Delivering growth across our London campuses
Delivering growth across our London campuses >70% Our 3 campuses as a % of office assets Regent’s Place Broadgate Paddington Central 15
Slide 16: A focus on campuses driving Office performance
A focus on campuses driving Office performance 9.6% • Our actions contributed ERV growth FY2016 45% of the valuation uplift – ERV growth a key driver • Lettings/renewals 6% ahead of ERV – Leadenhall now fully let, at record City rents • Overall, activity added over £14m of rent 16
Slide 17: Results highlights
Results highlights • Another strong set of results • Underlying profits up 16% to £363m • NAV up 11% to 919p • Good performances across the business • Rising rental growth and strong lettings • 5.3% ERV growth 17
Slide 18: Underlying profit up £50 million
Underlying profit up £50 million £m 27 (4) (6) 15 18 363 313 FY 2015 Developments Like for like Financing Investment Administrative FY 2016 rental growth activities activity expenses 18
Slide 19: Resilient income
Resilient income Top Occupiers • Long leases – 9 years to first break • 99% occupancy Occupier split by sector (%) Other 8% General Retail 18% DIY 6% TMT 7% Professional Fashion & Corporate & Beauty 8% 15% Food/Leisure 9% Supermarket 12% Banks & Financial Services 16% Proposed FY17 dividend of 29.2p
Slide 20: Valuation performance
Valuation performance FY to March 2016 Valuation Uplift Uplift Yield ERV NEY Weighting £bn £m % Compression Growth % % bps % Retail & Leisure 7.3 184 2.4 13 2.4 5.0 49 Offices & Residential 7.0 761 11.8 21 9.6 4.4 49 Canada Water 0.3 5 1.7 13 0.5 3.2 2 Total 14.6 950 6.7 17 5.3 4.7 100 - Of which St
Slide 21: Growth in diluted EPRA net asset value
Growth in diluted EPRA net asset value 34p (26p) (3p) 17p 68p 919p +11% 829p Mar 15 Offices & Retail & Leisure Underlying Dividends Finance Mar 16 Residential Profit transaction costs FY16 Total Accounting Return of 14% 21
Slide 22: Canada Water
Canada Water a SE16 Printworks and Roberts Close sites % Surrey Quays Shopping Centre Site My HH Surrey Quays Leisure Park Site
Slide 23: Outlook
Outlook • Resilience built into the company • Low capital commitments, flexibility in our development pipeline • A clear strategy – creating a portfolio suited to future and current needs 23
Slide 24: Q&A
Q&A
Slide 25: Disclaimer
Disclaimer The information contained in this presentation has been extracted largely from the Full Year Results Announcement for the period ended 31 March 2016. This presentation may contain certain “forward-looking” statements. By their nature, forward-looking statements involve risk and uncertaint