British Land Company Plc · LSE:BLND
British Land — FY2022 Earnings Presentation
102 slides from British Land's earnings presentation, May 18, 2022
Slide 1: Full Year Results
Full Year Results 31 March 2022 1
Slide 2: Introduction
Introduction Simon Carter Broadgate Circle 2
Slide 3: Strategy delivering strong returns
Strategy delivering strong returns • Strong progress on strategy – On site with 1.7m sq ft development – £1.2bn capital recycled – £747m invested in value accretive opportunities – Urban Logistics pipeline c. £1.3bn GDV • Reflected in our results – Portfolio value up 6.8% – Total accounting return 1
Slide 4: Themes underpinning our strategy continue to strengthen
Themes underpinning our strategy continue to strengthen • Innovation Campuses – Demand polarising to best, most sustainable space – London prime vacancy low, under 4% vs 8% total – 1.7m sq ft Campus leasing since 1 April 2021 • Retail Park value play – Emerged as retailers’ preferred format – Rents
Slide 5: Financial Results
Financial Results Bhavesh Mistry Canada Water – The Printworks 5
Slide 6: Delivering a strong performance across all financial metrics
Delivering a strong performance across all financial metrics £251m 727p £10.5bn Underlying Profit EPRA NTA per share Portfolio valuation +24.9% vs Mar 21 +12.2% vs Mar 21 +6.8% vs Mar 21 14.8% 28.4%Loan to value1 21.92p Dividend per share Total accounting return 32.0% LTV as at Mar 21 +45.7% vs Mar
Slide 7: Net rental income – an uplift of 17%
Net rental income – an uplift of 17% 91 (41) £m 28 (8) (8) 0 429 367 2021 Provisions for Disposals Acquisitions Developments CVAs & admins Like-for-like 2022 debtors and tenant net rents incentives 7
Slide 8: Like-for-like net rental growth in Campuses and Retail Parks
Like-for-like net rental growth in Campuses and Retail Parks Campuses Retail Parks Shopping Centres +2.5% +6% -6% Strong leasing at our Significant leasing, Reflecting deals rebasing newly refurbished improving occupancy by to market levels buildings & across Storey 270bps to 97.4% Retail & Fulfilme
Slide 9: Delivered a 25% increase in Underlying Earnings
Delivered a 25% increase in Underlying Earnings Financial Year to 31 March (£m) 2021 2022 Change % Net rental income 367 429 16.9% Fees & other income 11 13 18.2% Administrative expenses (74) (89) (20.3)% Net finance costs (103) (102) 1.0% Underlying Profit 201 251 24.9% Underlying tax (charge) / cr
Slide 10: EPRA NTA uplift reflects significant valuation gains
EPRA NTA uplift reflects significant valuation gains 27p (17p) (1p) 70p 727p 727p +12.2% 648p Mar 21 Valuation performance Underlying Dividend Finance liability Mar 22 Profit management & other 10
Slide 11: Our strategic activity is driving strong returns
Our strategic activity is driving strong returns +14.8% Total Accounting Return Driven primarily by our strategic activity: +2.1% +1.8% +5.7% +1.4% Active asset Development Retail Park value Capital management Profits play recycling 11
Slide 12: Actively recycling capital into opportunities to drive returns
Actively recycling capital into opportunities to drive returns Crystalising value and releasing capital… We target a 7-8% Total Property Return Canada Paddington Water JV Central JV Off strategy for our portfolio across the cycle assets £290m £694m £196m … and recycling into high returning growth De
Slide 13: A clear financial framework focussing on total returns
A clear financial framework focussing on total returns Our financial ambition is to deliver TAR of 8-10% through the cycle Delivered through: Total Property Net admin Impact of Total Accounting Returns costs leverage Return c.7-8% c.0.5-0.7% c.1.5-2.0% c.8-10% 13
Slide 14: A clear framework for capital allocation
A clear framework for capital allocation Developments Acquisitions Taking a disciplined, returns based approach, we target We own a unique and extensive development pipeline, opportunities with strong fundamentals where we can a key driver of future value and earnings accretion. best deploy our skil
Slide 15: Our development pipeline is insulated from inflation headwinds
Our development pipeline is insulated from inflation headwinds Base case construction cost inflation of 8-10%, moderating to 4-5% after 12-18 months Committed Near term Campuses Urban Logistics 1 Broadgate 2-3 Finsbury Ave Hannah Close • Base case IRR 10-12% • Base case IRR 10-12% • Base case IRR 15
Slide 16: Delivering on our Pathway to Net Zero
Delivering on our Pathway to Net Zero • Completed 29 net zero audits in the year – Conducted by external consultants – Equating to 90% of landlord procured energy – Detailed asset level plans established • £100m retrofit cost for EPC requirements – Around two thirds funded by service charge or by oc
Slide 17: Maintaining a strong financial position
Maintaining a strong financial position 28.4% Loan to value2,3 £1.3bn Undrawn facilities & cash1 79% hedged over next 5 years, fully hedged for FY232,3 2.9% Weighted average 2025 No requirement to refinance A Senior unsecured credit interest rate1,2 until late 20253 rating (Fitch) 1 As at 31 March 2
Slide 18: Progressing on strategy and delivering attractive returns
Progressing on strategy and delivering attractive returns • Delivered a total accounting return of 14.8% • Driven by our actions and progress on strategy • Clear framework to deliver future returns • Strong balance sheet to progress attractive opportunities • Resilience to navigate through the uncer
Slide 19: Real Estate Review
Real Estate Review Darren Richards Eataly – 135 Bishopsgate 19
Slide 20: Strong valuation performance driven by our actions
Strong valuation performance driven by our actions Valuation Valuation Yield ERV £m movement Movement Movement Total 10,467 6.8% -42bps (1.2)% Campuses 6,967 5.4% -11bps 0.0% Central London 6,460 4.6% -11bps (0.1)% Canada Water 283 18.3% - - Retail & Fulfilment 3,500 9.9% -97bps (2.8)% Retail Parks
Slide 21: A portfolio focussed on three key sectors
A portfolio focussed on three key sectors Pro forma portfolio weighting following 75% sale of Paddington Central Campus committed, near Retail Campuses 8.6m sqft and medium term developments 33% Retail Parks Broadgate 64% Shopping Centres 67% Retail Parks as a % of our retail portfolio Regent’s Plac
Slide 22: Campus leasing strongest in +10 years
Campus leasing strongest in +10 years • 1.7m sq ft leasing activity – Representing £94m of rents (£67m BL share) – 5.4% ahead of ERV1 – 318,000 sq ft under offer, 6.3% ahead of ERV1 • Development leasing success, de-risking our pipeline – 100 Liverpool St office space 100% let – 1 Broadgate office s
Slide 23: Strong leasing underpinned by Campus proposition
Strong leasing underpinned by Campus proposition Modern, Public realm & high quality amenities Flexible, ability to Well connected grow Sustainable Community focussed 1 Triton Sq 315k sq ft to Meta, doubling footprint 1 Broadgate 4 Kingdom St Office space 100% pre-let/under option 15k sq ft to Verte
Slide 24: Large floorplates are a key structural advantage
Large floorplates are a key structural advantage Central London availability by floorplate size • Take up trending towards long term averages 2,000 0% 1% 4% 24% 24% 47% – Vacancy dominated by second hand space (70%) BL campuses breakdown by floorplate size – Supply of new space increasingly constrai
Slide 25: Increasingly strong demand for Storey
Increasingly strong demand for Storey • Storey provides premium flexible workspace – Benefits from all the advantages of our Campus – Storey Club gives access to cafes, meeting room and event space • A personalised product, tailored to our customers needs • Provides flexibility and the ability to gr
Slide 26: Exchange House Retrofit case study
Exchange House Retrofit case study Out of hours cooling £115,000 Heat pump replacement £700,000 Hot water heat pump Total Total capex capex £2.5m of £250m: £170,000 • Represents 0.5% of building value • Two-thirds funded through the service charge or Smart ventilation by occupiers £30,000 • Achieves
Slide 27: Retail & Fulfilment continued strong leasing momentum
Retail & Fulfilment continued strong leasing momentum • 2.2m sq ft of total leasing activity – The largest volume in over 10 years – 2.8% ahead of ERV1 • Retail Parks is 60% of activity – 5.9% ahead of ERV1 • Strong pipeline, 679,000 sq ft under offer – 2.2% ahead of ERV1 • Occupancy improving to 96
Slide 28: Outperforming on footfall and sales
Outperforming on footfall and sales FY22 Footfall and Sales Footfall vs benchmark2 LfL Sales and Footfall FY22 Yo2Y1 110% 100% +11.7ppt FY221 90% Outperformance 80% Retail Parks are in line 70% with pre-pandemic levels for both footfall and LfL sales 60% Footfall LfL Sales Portfolio Retail parks Sho
Slide 29: Retail Parks are the preferred choice for retailers
Retail Parks are the preferred choice for retailers • Retail Parks are relatively affordable – 10% OCR1 for our Retail Parks – Important in the context of rising input costs • Good occupational demand from resilient business – c.50%2 of our occupiers looking to expand with over 40% satisfied with cu
Slide 30: Medium term returns for best shopping centres attractive
Medium term returns for best shopping centres attractive Shopping Centre ERV decline decelerating • Approaching an inflection point for capital values Shopping like-for-like ERV decline as a % vs March 2018 • ERV decline moderating 100 8.00 • Yields are flat in the second half 95 • Increasing invest
Slide 31: Urban Logistics: highly attractive market fundamentals
Urban Logistics: highly attractive market fundamentals • We focus on last mile Urban Logistics within the M25 3.8m sq ft 8m sq ft • Extreme demand/supply imbalance South East 2021 South East availability take-up – Driven by demand for same/next day delivery – Most pronounced in London • Supply pipel
Slide 32: Strongest operational performance in over a decade
Strongest operational performance in over a decade • Strong leasing across the business – 3.9m sq ft leasing activity – the most in over ten years • Campus proposition delivering – Demand is targeting quality, all four campuses a clear beneficiary • Retail Parks driving significant value – +20.7% in
Slide 33: Strategy and outlook
Strategy and outlook Simon Carter 2 Finsbury Avenue, Broadgate 33
Slide 34: Investment backdrop for Real Estate
Investment backdrop for Real Estate • International investors are: International investors increasing real estate allocations – Rotating out of bonds Target allocations to global real estate, by investor domicile % – Increasing their allocations to UK real estate 11.0 – Looking for world class partn
Slide 35: Investment increasing into our sectors
Investment increasing into our sectors Greater London City & WE offices Retail Parks Logistics Investment market activity, £bn vs 5 year average 4.0 2.0 2.5 1.8 3.5 1.6 2.0 3.0 1.4 2.5 City 5 yr 1.2 1.5 2.0 1.0 0.8 1.0 1.5 WE 5 yr 0.6 1.0 0.4 0.5 0.5 0.2 0.0 0.0 0.0 Q2 21 Q3 21 Q4 21 Q1 22 Q2 21 Q3
Slide 36: Targeting markets with pricing power
Targeting markets with pricing power Demand Supply Focused on modern, high Leasing London prime vacancy under 4% Innovation 5.4% quality and sustainable space 1% of available space in London Campuses Rents c.10% of salary costs BREEAM Outstanding vs nearly 50% in early 1970s above ERV Preferred form
Slide 37: How we are creating value
How we are creating value Source growth & value opportunities Actively manage & develop Places People Prefer Recycle capital Underpinned by our focus on Sustainability 37
Slide 38: Premier office portfolio across London
Actively manage & Premier office portfolio across London develop Successful Campus proposition Occupier expectations are increasing Modern, Public realm & high quality amenities Flexible, ability to Well connected grow Sustainable Community focussed Delivered through: Best in class asset management
Slide 39: Campus developments driving returns
Actively manage & Campus developments driving returns develop Committed pipeline Near & medium term Norton Folgate Euston Tower • 1.7m sq ft • 6.9m sq ft • 41% pre-let or under offer (committed offices only) • c. £1.3bn profit from Near and Medium Term developments • c.£40m profit taken to date; c.£
Slide 40: New partnership at Canada Water
Source growth Actively & value manage & New partnership at Canada Water opportunities develop • Joint venture with AustralianSuper – £290m sale of 50% of the Masterplan – Accelerating delivery of masterplan, driving returns and de-risking – Returns enhanced by development, asset management and perfo
Slide 41: Reducing development pipeline post 2023
Actively Reducing development pipeline post 2023 manage & develop Q1 2022 Central London Development pipeline over 100k sq ft Completed m sq ft Under construction Potential pipeline 6.0 4.0 2.0 0.0 07 08 09 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 Source: CBRE Note: Forecast reflects Briti
Slide 42: New opportunities for the Campus model
Source growth & value New opportunities for the Campus model opportunities • Targeting development-led opportunities in the Golden Triangle – Strong demand; ability to cluster preferred – BL track record and capabilities unlocking value – Forecast rental growth of c.8% in Cambridge • Peterhouse Tech
Slide 43: Capital recycling on our Campuses
Recycle Capital recycling on our Campuses Capital • Realising value from Paddington Central – 75% of the majority of assets sold to GIC for £694m – Crystallising 9% p.a. total property return since acquisition – Attractive development & asset management fees – Development upside through 5 Kingdom St
Slide 44: Capital allocation to Retail Parks well timed
Source growth Actively & value manage & Capital allocation to Retail Parks well timed opportunities develop • Identified value opportunity early – £400m invested over the last 18 months • Largest owner and operator of Retail Parks • We are best placed to: – Assess trading performance and potential o
Slide 45: London urban logistics: £1.3bn developments sourced
Source growth London urban logistics: £1.3bn developments sourced & value opportunities • Gross development value of urban Repurposing Intensifying logistics pipeline £1.3bn1 – Average expected IRR of 15% on our pipeline • Finsbury Square Car Multi-storey with ramp Park • Heritage House, • Creating
Slide 46: Urban logistics pipeline delivers strong returns
Actively Urban logistics pipeline delivers strong returns manage & develop • Development underwrite assumptions Pipeline of opportunities across London – ERV growth, c.5% pa; already delivered in some locations – Exit yield, c.4% (compared to sub 3% yield today) • Supplemented by near term asset man
Slide 47: Maintaining momentum – next steps
Maintaining momentum – next steps Source growth & Actively manage & Recycle capital value opportunities develop • Increase scale in the Golden • Pre lets at Norton Folgate and • Further recycling out of mature Triangle Canada Water assets into growth & value opportunities • Add to Urban Logistics pi
Slide 48: Outlook for our markets – next 12 months
Outlook for our markets – next 12 months • Campuses – Campuses continue to outperform as demand gravitates to the best space – Rental growth c.1-3% on our assets – Potential for further yield compression • Retail Parks – Rents stable, with rental growth for smaller assets – Further yield compression
Slide 49: Summary
Summary • Strong financial and operational performance • Strategy targeting sectors with pricing power and affordable rents – Innovation Campuses – Retail parks – Urban logistics • Well placed to deliver outperformance – First class capabilities – Development pipeline, c.£2bn profit to come – Active
Slide 50: Appendices
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Slide 51: Major Retail & Fulfilment property holdings
Major Retail & Fulfilment property holdings As at 31 March 2022 BL Share Sq ft Rent (100%) Occupancy Lease Length % 000’s5 £m pa1,4 Rate %2,4 yrs3,4 1 Meadowhall, Sheffield 50 1,500 67 95.9 4.1 2 Glasgow Fort, Glasgow 100 510 17 94.7 5.2 3 Teesside, Stockton 100 569 15 95.0 2.6 4 Hannah Close, Wembl
Slide 52: Broadgate Campus
Broadgate Campus @ 1 Broadgate ef @ 3 Broadgate fi © 1 Finsbury avenue ‘eS © 2.83 Finsbury Avenue @ Broadgate PO6Are stacey © Broadgate Circle @ 100 Liverpoot Street © 1 Appotd Street @ 10 Exchange Square @ Exchange House @ Broadwalk House @® The Broadgate Tower ©® 201 Bishopsgate @ 199 Bishopsgate
Slide 53: Paddington Central Campus
Paddington Central Campus Post year end, in April 2022, the Group exchanged contracts on the sale of a 75% interest in the majority of the Paddington Central campus to GIC, forming a new joint venture with ownership split 75:25 for GIC and British Land respectively. 53
Slide 54: Regent's Place Campus
Regent’s Place Campus DRUMMOND STREET @ EUSTON TRITON STREET regents = ‘é TRITON SQUARE PLA REGENTS > “ane S EUSTON ©) ©) @ 2 ‘EUSTON ROAD CREAT PORTLAND WARREN sTReet STREET @ 20 Triton Street @ 1 Osnaburgh street @ 1-8 Lonaford Street @ VEPN Substation @ | Triton Square © 108rock Street @ 20 Brock
Slide 55: Our 2030 Sustainability Strategy
Our 2030 Sustainability Strategy Net Zero Carbon by 2030 Place based approach • 50% less embodied carbon emissions • Place-based approach to social contribution at our developments, to below 500kg CO2e per sqm • Using our Local Charter to focus on key issues by 2030 (versus industry benchmark) • Par
Slide 56: Sustainability Metrics
Sustainability Metrics Developments – Net Zero Carbon Operational – EPC ratings Net Zero Carbon – Completed and Committed developments % of total ERV % of total Sq Ft Net Zero Developments Embodied Embodied carbon emissions offset intensity EPC % of total embodied kg CO2e per sqm Offices Retail Port
Slide 57: Sustainability Indices Performance
Sustainability Indices Performance FY 2022 performance Other benchmarks and awards Global Real Estate Sustainability Benchmark1 Carbon Disclosure Project EPRA EPRA Sustainability Sustainability Reporting Reporting Awards Awards 2021: 5-star 2021: A- (Standing Investment and 2020: Gold 2021: Gold for
Slide 58: Top occupiers
Top 20 occupiers Retail & Fulfilment Campuses Occupier Split by Industry (% of rent) As at % of As at % of 31 March 2022 R&F 31 March 2022 Campus Grocery & Other 6% Rent Rent Convenience 4% Next 4.9 Meta (Facebook) 17.4 TMT 20% Walgreens (Boots) 4.8 Dentsu international 4.7 Home & DIY 6% M&S 4.1 Vis
Slide 59: Capital Activity
Capital Activity Since 1 April 2021 Campuses Retail & Fulfilment Total £m £m £m Purchases 102 645 747 Sales1 (1,063) (117) (1,180) Development Spend 205 3 208 Capital Spend 28 10 38 Net Investment (728) 541 (187) Gross Capital Activity 1,398 775 2,173 On a proportionally consolidated basis including
Slide 60: Capital Activity £8.0bn
Capital Activity £8.0bn Gross investment activity since April 2017 Net Spend £m £(739)m £(753)m £121m £(964)m £(187)m1 600 200 (200) (600) (1,000) (1,400) FY18 FY19 FY20 FY21 FY22 Sales Capital Investment Purchases Net Spend On a proportionally consolidated basis including the Group’s share of joint
Slide 61: Purchases
Purchases Since 1 April 2021 Sector Price Price Annualised (100%) (BL Share) Net Rents £m £m £m1 Completed Hercules Unit Trust units Retail 148 148 12 Thurrock Retail Park Retail 82 82 5 Reading Gate Retail Park Retail 68 34 2 Blackwater Shopping Park, Farnborough Retail 38 38 2 B&Q, Cambridge Retai
Slide 62: Sales
Sales Since 1 April 2021 Sector Price Price Annualised (100%) (BL Share) Net Rent £m £m £m1 Completed Virgin Active, Chiswick Retail 54 54 2 Woodfields Retail Park, Bury (part-sale) Retail 36 36 2 Beaumont Leys (Fletcher Mall), Leicester Retail 9 9 1 Virgin Active, Brighton Retail 14 14 2 Debenhams,
Slide 63: Collecting rents near pre-pandemic levels, reducing impact of provisions
Collecting rents near pre-pandemic levels, significantly reducing the impact of provisions FY22 Income statement impact £m Provision release for FY21 debtors 36 97% Provisions for debtors billed in FY22 (23) FY22 rent collected1 Net provision release for tenant debtors & accrued income 13 Increase i
Slide 64: FY22 rent collection
FY22 rent collection1 Rent due between 25 March 2021 and 24 March 2022 As at 10th May Offices Retail2 Total Received 100% 95% 97% Rent forgiven - 1% 1% Outstanding - 4% 2% 100% 100% 100% Total £196m £270m £466m 1 As at 10 May 2 Includes non-office customers located within our London campuses. 64
Slide 65: March quarter 2022 rent collection
March quarter 2022 rent collection1 Rent due between 25 March 2022 and 10 May 2022 As at 10th May Offices Retail2 Total Received 98% 92% 96% Rent forgiven - - - Customer paid monthly - 2% 1% Outstanding 2% 6% 3% 100% 100% 100% Total £44m £31m £75m 1 As at 10 May 2 Includes non-office customers locat
Slide 66: FY23 income statement guidance
FY23 income statement guidance Gross Rents Financing • Annualised accounting gross rent of £482m1 as at 31st March 20222. • Weighted average interest rate of 2.9% on gross debt of £3.6bn at 31 March 2022. • The annualised gross rent impact of the Paddington transaction is expected to be c.£32m (comp
Slide 67: Illustrative future income profile breakdown (cash basis)
Illustrative future income profile breakdown (cash basis) For the year to 31 March 2023 2024 2025 2026 2027 Total Accounting Basis As at 31 March 2022 £m £m £m £m £m £m Current Passing Rent 458 4 468 Contracted uplifts 27 15 25 - - 67 Pre-lets of Committed Developments1 - - - - 14 14 11 Contracted r
Slide 68: Gross rental income
Gross rental income1 Accounting Basis £m 12 months to 31 March 2022 Annualised as at 31 March 2022 Joint Joint Group Total Group Total ventures ventures West End 123 6 129 123 5 128 City 13 85 98 7 79 86 Canada Water & other Campuses 8 5 13 6 - 6 Residential2 1 - 1 1 - 1 Campuses 145 96 241 137 84 2
Slide 69: Underlying Profit Bridge
Underlying Profit Bridge 91 (13) £m (8) (12) (8) 251 201 295 181 2021 Net divestment Developments Excl. impact of Like for like incl. Provisions for Net administrative 2022 capital activity CVAs and admins debtors and tenant expenses and fee incentives income 69
Slide 70: Underlying earnings per share
Underlying earnings per share 3.3p 9.8p (1.4p) (0.9p) (1.3p) (0.9p) 27.4p 18.8p 16.6 16.6p 2021 Net divestment Development Excl. impact of Like for like Provisions for Net administrative Tax 2022 capital activity income incl. CVAs debtors and expenses and fee & admins tenant incentives income 70
Slide 71: Operating cash flow bridge
Operating cash flow bridge £m 8 (140) 30 57 (62) (6) 358 245 (204) Cash rental Distributions Fees and other Sale of trading Operating and Net finance Corporation Net cash inflow FY22 income from JVs and income properties admin costs tax from operating Dividend Funds expenses activities 71
Slide 72: Administrative expenses
Administrative expenses Financial Year to 31 March 2021 2022 £m £m Personnel costs 48 56 Share scheme costs 2 6 Other administrative expenses 31 35 Total 81 97 Capitalised costs (7) (8) Total administrative expenses 74 89 On a proportionally consolidated basis including the Group's share of Joint ve
Slide 73: Operating costs metric
Operating costs metric Financial Year to 31 March 2021 2022 £m £m Property operating expenses 141 61 Administrative expenses 74 89 Net fees and other income (11) (13) Ground rent costs and operating expenses de facto included in rents (21) (25) EPRA Costs (including direct vacancy costs) 183 112 Gro
Slide 74: Reconciliation of Underlying Profit
Reconciliation of Underlying Profit Financial Year to 31 March 2021 2022 £m £m IFRS (loss) / profit after tax attributable to shareholders (1,031) 958 Net valuation loss / (gain) 1,298 (633) Profit on disposal of investment and trading properties (28) (45) Capital financing costs (12) (56) Non-contr
Slide 75: Number of shares
Number of shares As at 31 March 2021 31 March 2022 (m) (m) IFRS Basic Weighted average1 927 927 IFRS Diluted Weighted average2 927 930 Underlying/EPRA diluted Weighted average3 930 930 Period end4 933 932 1 For use in IFRS basic earnings per share. 2 For use in IFRS diluted earnings per share. A los
Slide 76: EPRA balance sheet
EPRA balance sheet 31 March 2021 Group Joint ventures 31 March 2022 Total properties (£m)1 9,140 6,938 3,538 10,476 Adjusted net debt (£m) (2,938) (2,495) (963) (3,458) Other net liabilities (£m) (152) (177) (70) (247) EPRA Net Tangible Assets (£m) 6,050 4,266 2,505 6,771 Loan to value (LTV)2 32.0%
Slide 77: EPRA Net Asset Metrics
EPRA Net Asset Metrics 31 March 2021 31 March 2022 EPRA NTA1 EPRA NDV2 EPRA NRV3 EPRA NTA1 EPRA NDV2 EPRA NRV3 IFRS Net Assets 5,983 5,983 5,983 6,733 6,733 6,733 Mark to market on derivatives and related debt 115 - 115 46 - 46 adjustments Adjust to fully diluted on exercise of share 14 14 14 8 8 8
Slide 78: Gross and net debt reconciliation
Gross and net debt reconciliation As at 31 March 2022 Group Joint ventures Less non- Total £m £m controlling £m interests £m Gross Debt (principal) (2,562) (1,086) - (3,648) IFRS adjustments: Issue costs and premia 10 3 - 13 Fair value hedge adjustments (64) - - (64) IFRS gross debt (2,616) (1,083)
Slide 79: Loan to value (LTV)
Loan to value (LTV) As at Valuation Acquisitions Capital Disposals Operating Dividend Other As at 31 March movement spend cashflow 31 March 2021 2022 £m £m Total properties 9,132 633 772 303 (424) - - 51 10,467 Other 26 6 - 14 - - - - 46 investments LTV assets 9,158 639 772 317 (424) - - 51 10,513 A
Slide 80: Debt metrics
Debt metrics Proportionally Consolidated 31 Mar 2021 31 March 2022 Loan to value (LTV) 32.0% 32.9% Weighted average interest rate 2.9% 2.9% Interest cover 3.0x 3.5x Weighted average maturity of drawn debt 7.6yrs 6.9yrs Group 31 Mar 2021 31 March 2022 Loan to value (LTV) 25.1% 26.2% Available undrawn
Slide 81: Debt maturity
Debt maturity £m 1,200 Facilities Undrawn (Unsecured) 1,000 Facilities Drawn (Unsecured) Debentures (Secured) Sterling Bond (Unsecured) 800 US Private Placements (Unsecured) Bank Loans (Secured) JVs – Bank Drawn (Secured) 600 JVs – Securitisations (Secured) 400 200 - 2023 2024 2025 2026 2027 2028 20
Slide 82: Debt financing – diverse profile
Debt financing – diverse profile Strong credit metrics £5.0bn Debt and facilities (£3.6bn drawn)1 • £1.3bn undrawn facilities and cash2 31 March 2022 • Pro forma LTV 28.4%1,3, following completion of £0.3bn Paddington Central transaction Facilities Undrawn • No requirement to refinance until late 20
Slide 83: Portfolio valuation by sector
Portfolio valuation by sector At 31 March 2022 Group Joint ventures Total Change %1 £m £m £m H1 H2 FY West End 3,479 128 3,607 2.8 1.6 4.5 City 438 2,415 2,853 2.6 2.1 4.7 Canada Water & other Campuses 147 283 430 6.9 6.4 12.9 2 Residential 77 - 77 (0.8) 14.7 6.4 Campuses 4,141 2,826 6,967 3.0 2.4 5
Slide 84: Valuation movement – Campuses
Valuation movement – Campuses Financial Year to 31 March 2022 Valuation Change Change Yield movement ERV movement £m £m %1 Bps2 %2 West End 3,607 156 4.5 (7) 0.4 City 2,853 127 4.7 (15) (0.6) Offices 6,460 283 4.6 (11) (0.1) Canada Water & other Campuses 430 82 12.9 1 6.4 Residential 77 9 6.4 - (11.
Slide 85: Valuation movement – Retail & Fulfilment
Valuation movement – Retail & Fulfilment Financial Year to 31 March 2022 Valuation Change Change Yield movement ERV movement £m £m %1 bps2 %2 Retail Parks 2,114 370 20.7 (151) (2.0) Shopping Centre 800 (53) (6.1) 3 (5.2) Urban Logistics 319 - 0.0 (75) 6.3 Other Retail 267 8 2.5 (16) 0.8 Retail & Ful
Slide 86: Retail & Fulfilment Valuation Movements
+10% Retail & Fulfilment Valuation Movements FY22 valuation movement Mar ’22 Valuations (£’m) 1,200 1,000 800 600 400 200 0 Greater than +30% +20% to +30% +10% to +20% 0% to 10% Less than -10% 1 Retail Parks Shopping Centre Urban Logistics Other Retail % Valuation Movement in FY22 1 Negative valuati
Slide 87: Portfolio net yields
Portfolio net yields1,2 As at 31 Mar 2022 EPRA EPRA topped Overall Net Net Net ERV net initial up net initial topped up equivalent equivalent reversionary Growth 5 yield yield net initial yield yield yield % 3 % % yield % movement % 4 % bps West End 3.4 4.1 4.1 4.3 (7) 4.7 0.4 City 2.9 3.8 3.8 4.3 (
Slide 88: Portfolio weighting
Portfolio weighting As at 31 March 2022 2021 2022 2022 % % £m West End 35.9 34.5 3,607 City 27.5 27.3 2,853 Canada Water & other Campuses 6.1 4.1 430 1 Residential 0.6 0.7 77 Campuses 70.1 66.6 6,967 Retail Parks 17.6 20.2 2,114 Shopping Centre 8.3 7.6 800 Urban Logistics 1.2 3.0 319 Other Retail 2.
Slide 89: Lease length and occupancy
Lease length and occupancy As at 31 March 2022 Average Lease Length (yrs) Occupancy Rate (%) To Expiry To Break EPRA Occupancy Occupancy1,2,3 West End 7.8 7.2 95.7 96.8 City 7.4 6.5 90.2 96.2 Other Campuses 7.7 6.8 100.0 100.0 Residential 16.5 16.2 100.0 100.0 Campuses 7.7 7.0 93.5 96.7 Retail Parks
Slide 90: Annualised rent & estimated rental value (ERV)
Annualised rent & estimated rental value (ERV) As at 31 March 2022 Annualised Rents ERV Average Rent (Valuation Basis) £m1 £m (£psf) Group Joint ventures Total Total Contracted2 ERV West End3 114 5 119 161 63.9 69.4 3 City 7 72 79 123 53.5 56.4 Other Campuses 6 - 6 8 27.2 34.5 4 Residential 1 - 1 1
Slide 91: Rent subject to open market rent review
Rent subject to open market rent review For the year to 31 March 2023 2024 2025 2026 2027 2023–25 2023–27 As at 31 March 2022 £m £m £m £m £m £m £m West End 23 4 15 9 22 42 73 City 1 15 8 26 4 24 54 Canada Water & other Campuses - - 1 - - 1 1 Residential - - - - 1 - 1 Campuses 24 19 24 35 27 67 129 R
Slide 92: Rent subject to lease break or expiry
Rent subject to lease break or expiry For the year to 31 March 2023 2024 2025 2026 2027 2023-25 2023-27 As at 31 March 2022 £m £m £m £m £m £m £m West End 19 15 11 13 8 45 66 City 7 16 4 17 3 27 47 Other Campuses 1 2 - - 1 3 4 Residential - - - - - - - Campuses 27 33 15 30 12 75 117 Retail Parks 23 2
Slide 93: Contracted rental increases (cash flow basis)
Contracted rental increases (cash flow basis) For the year to 31 March 2023 2024 2025 2026 2027 2023-25 2023-27 As at 31 March 2022 £m £m £m £m £m £m £m Expiry of rent free periods 23 14 24 - - 61 61 Fixed uplifts (EPRA basis) - - - - - - - Fixed & minimum uplifts - 1 1 1 - 2 3 Total 23 15 25 1 - 63
Slide 94: Total Property Return (as calculated by MSCI)
Total Property Return (as calculated by MSCI) 12 months to 31 March 2022 Offices Retail Total % British Land MSCI British Land MSCI British Land MSCI Capital Return 5.8 3.2 11.6 8.8 7.4 14.9 – ERV Growth 0.1 1.4 (2.9) (2.0) (1.2) 3.1 – Yield Movement1 (11) bps (23) bps (97) bps (82) bps (42) bps (67
Slide 95: De-risked development pipeline focused on campuses
De-risked development pipeline focused on campuses 1 Triton Square Aldgate Place Canada Water, Phase 1 Meadowhall, 369,000 sq ft 5 Kingdom Street Euston Tower 136,000 sq ft Plots A1, A2 and K1 - 585,000 sq ft Logistics Completed Q2 2021 438,000 sq ft 578,000 sq ft Completion Q2 2024 Completion Q3 20
Slide 96: Recently Completed & Committed developments
Recently Completed & Committed developments As at Sector BL Sq ft PC Current Cost to ERV Let & Forecast 31 March 2022 Share (100%) Calendar Value Come under IRR Year offer % '000 £m £m1 £m2 £m5 % 1 Triton Square Office 100 369 Q2 2021 545 - 24.3 23.9 12 Total Completed in the period 369 545 - 24.3 2
Slide 97: Near term development pipeline
Near term development pipeline As at Sector BL Sq ft Earliest Current Cost to ERV Let & Planning 31 March 2022 Share (100%) Start on Value Come Under Status Site Offer % '000 Calendar £m £m1 £m2 £m Year Near Term Pipeline 2-3 Finsbury Avenue Office 50 718 Q3 2022 71 433 31.0 - Consented 5 Kingdom St
Slide 98: Medium term development pipeline
Medium term development pipeline As at 31 March 2022 Sector BL Share Sq ft Planning status (100%) % '000 Medium term Pipeline Thurrock Urban Logistics 100 559 Pre-submission Enfield, Heritage House Urban Logistics 100 431 Pre-submission Hannah Close, Wembley Urban Logistics 100 668 Pre-submission Ve
Slide 99: Estimated future development spend and capitalised interest
Estimated future development spend and capitalised interest As at 31 March 2022 PC Cost to Come £m Calendar (excluding notional interest) – 6 months breakdown Year Sep-22 Mar-23 Sep-23 Mar-24 Sep-24 Mar-25 Sep-25 Mar-26 Total 1 Triton Square - - - - - - - - - Total Completed - - - - - - - - - Norton
Slide 100: Canada Water – Illustrative Scheme
Canada Water – Illustrative Scheme Masterplan Headlines • 10 year scheme • 53 acres • c.3,000 homes (25% social rent, 10% intermediate homes) • 2.5m sq ft workspace • 1.0m sq ft retail, leisure, education, culture • 12 acres of parks, squares and open spaces Buildings highlighted above reflect indic
Slide 101: Significant value creation at Canada Water
Significant value creation at Canada Water £m 4,500 • 11% forecast IRR for Phase 1 4,000 and low teens for total project 3,500 Cumulative (ungeared) value created 3,000 • Value created apportioned to JV 2,500 partners on a pro rata basis 2,000 • British Land returns 1,500 supplemented by development
Slide 102: Disclaimer
Disclaimer The information contained in this presentation has been extracted largely from the Full Year Results Announcement for the year ended on 31 March 2022. For the purpose of this document, references to "presentation" shall be deemed to include this document, the oral briefing provided by Bri