British Land Company Plc · LSE:BLND
British Land — H1 FY2022 Earnings Presentation
106 slides from British Land's earnings presentation, November 2021
Slide 1: Half Year Results
Half Year Results 30 September 2021
Slide 2: Introduction
Introduction Simon Carter BusinessGreen Leaders Awards 2021 WINNER nB § British Sy Land = 100 Liverpool Street
Slide 3: Themes underpinning our strategy are strengthening
Themes underpinning our strategy are strengthening • Innovation Campuses – Development-led investment – Demand polarising to best, most sustainable space – 1m sq ft Campus leasing since 1 April – Central London vacancy: Prime 3.5% vs. All 9.1% • Retail Park value play – Increasingly retailers’ prefe
Slide 4: Strategy driving performance and positioning us for growth
Strategy driving performance and positioning us for growth • Good early progress on strategy – On site with 1.6m sq ft development – £312m invested in Retail Parks and Campus opportunities – GDV Urban Logistics pipeline c. £600m • Reflected in our results – Portfolio value up 2.9% – Total accounting
Slide 5: Financial Results
Financial Results Bhavesh Mistry Norton Folgate
Slide 6: Delivering improved financial performance
Delivering improved financial performance £120m Underlying Profit 681p £9.8bn EPRA NTA per share Portfolio valuation +12.1% vs Sep 20 +5.1% vs Mar 21 +2.9% vs Mar 21 96% HY22 rent collected 33.4% Loan to value 10.32p Dividend per share Offices 100%, Retail 93% No requirement to refinance +22.9% vs S
Slide 7: Net rental income
Net rental income Retail & Fulfilment +1.5%1 47 £m Campuses +1.4%1 (1) (7) (4) (26) 10 210 191 HY 2021 Like for like CVAs & admins Developments Disposals Acquisitions Provisions for HY 2022 net rents debtors and tenant incentives 1 Like for like % excludes the impact of surrender premia, CVAs & admi
Slide 8: Collecting rents near pre-pandemic levels
Collecting rents near pre-pandemic levels HY22 rent due (25 March 2021 to 28 September 2021) As at 9th November Offices Retail1 Total Received 100% 93% 96% Rent forgiven - 2% 1% Outstanding - 5% 3% 100% 100% 100% Total £94m £137m £231m September 21 quarter rent collection is 93%, with offices at 99%
Slide 9: Significantly reduced the impact of provisioning
Significantly reduced the impact of provisioning HY22 Income statement impact £m Provision release for FY21 debtors 24 Provisions for debtors billed in HY22 (21) Net provision release for tenant debtors & accrued income 3 Increase in provisions for tenant incentives (3) HY22 P&L Impact - HY21 P&L Im
Slide 10: Income statement
Income statement 6 months to 30 September (£m) H1 2021 H1 2022 Change % Net rental income 191 210 9.9% Fees & other income 6 5 (16.7)% Administrative expenses (38) (44) (15.8)% Net finance costs (52) (51) 1.9% Underlying Profit 107 120 12.1% Underlying earnings per share (p) 10.5 12.9 22.9% Dividend
Slide 11: Dividend policy that provides strategic flexibility
Dividend policy that provides strategic flexibility Clear & • 80% of Underlying earnings per share simple policy • Based on the most recently completed six-month period Maintains • Dividend adjusts to reflect the impact of capital activity strategic and trading conditions flexibility • REIT complian
Slide 12: EPRA NTA performance reflects valuation improvements
EPRA NTA performance reflects valuation improvements 13p (7p) (1p) (2p) 30p 683p 681pp 681p 648p +5.1% Mar 21 Valuation Underlying Dividend Finance liability Other Sep 21 performance Profit management 12
Slide 13: Our strategic activity is a key driver of returns
Our strategic activity is a key driver of returns +6.1% Total Accounting Return Driven primarily by our strategic activity: +1.0% +1.5% +1.9% Active asset management Development Profits Retail Park value play 13
Slide 14: Significant development pipeline providing future returns
Significant development pipeline providing future returns £m - ERV Recently completed & committed pipeline1 100 • ERV of £91m, delivering up to 7.3p of earnings £91m 80 • Speculative exposure now 8% 60 • 95% of costs fixed for Norton Folgate, Aldgate Place and Canada Water, Phase 1 40 £35m • Maintai
Slide 15: Actively recycling capital into opportunities to drive returns
Actively recycling capital into opportunities to drive returns Portman Other Retail Clarges Cluster offices sales £177m £401m £162m £673m £1.4bn of asset sales invested into1: Campuses Retail & Fulfilment Innovation Retail Canada 1 Broadgate Norton Aldgate Urban Urban outside Park value Water Folgat
Slide 16: Maintaining a strong financial position
Maintaining a strong financial position A Senior unsecured credit £1.5bn Undrawn facilities & cash 33.4% Loan to value1 rating (Fitch) 2.7% Weighted average interest 2024 No requirement to refinance 43% Valuation headroom2 rate1 until late 2024 1 On a proportionally consolidated basis including the
Slide 17: Continued progress against our 2030 sustainability strategy
Continued progress against our 2030 sustainability strategy • Achieved a GRESB 5* rating • All developments net zero carbon – 100 Liverpool Street: 389kg CO2e per sqm – 1 Triton Square: 436kg CO2e per sqm – Residual carbon offset through certified schemes • Retrofitting standing portfolio for EPC re
Slide 18: Returns focused and positioned for growth
Returns focused and positioned for growth • A strong set of results and positive outlook • Rent collection near pre-pandemic levels • Financial position that can drive future growth Broadgate Circle 18
Slide 19: Operations & markets
Operations & markets Darren Richards 1 Broadgate
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 9,840 2.9% -15bps -1.0% Campuses 6,903 3.0% -6bps -0.3% Central London 6,245 2.8% -6bps -0.3% Canada Water & 600 6.9% +1bps -0.2% other Campuses Retail & Fulfilment 2,937 2.7% -32bps
Slide 21: Campus leasing strongest in 5 years
Campus leasing strongest in 5 years • 819,000 sq ft leasing activity – Representing £37.7m of rents, 6.1% ahead of ERV1 – 330,000 sq ft under offer • 1 Broadgate offices fully let or under option – 254,000 sq ft pre-let to A&O post period end • Retail at 100 Liverpool Street fully let • Storey occup
Slide 22: Market polarising towards new and best in class space
Market polarising towards new and best in class space Second hand C. London availability by age and size 500 • Increased activity with a focus on quality Availability focused on old, – Q3 under offers at 3.9m sq ft, highest since Q3 2019 small space – 38% of C. London deals over £75 psf vs 27% pre-
Slide 23: Campuses more attractive post Covid as themes accelerate
Campuses more attractive post Covid as themes accelerate Campus advantages Post Covid trends Modern, high quality space Demand polarising to best in class Key to attract and retain talent; Emphasis on Wellness encourages return to office Occupiers more focused on carbon Sustainability footprint Well
Slide 24: Focus on flexibility – a unique benefit of our offer
Focus on flexibility – a unique benefit of our offer Expansion Consolidation & relocation 24
Slide 25: Energy efficient space a competitive advantage
Energy efficient space a competitive advantage • 2030 commitment to improve whole building energy efficiency by 25% • Offices fully compliant with 2023 EPC requirements – 100% A-E rated today • Proactive approach to improving EPC ratings – Net zero carbon audits cover over 90% of landlord procured e
Slide 26: Retail & Fulfilment continued strong leasing momentum
Retail & Fulfilment continued strong leasing momentum Diverse occupier base with strong covenants • 1m sq ft of total leasing activity Online compatible – 0.2% ahead of ERV • Retail Parks over 60% of activity – 1.8% ahead of ERV1 • Strong pipeline, 571,000 sq ft under offer Online resilient – 6.6% a
Slide 27: Outperforming on footfall and sales
Outperforming on footfall and sales Footfall and Sales since reopening Footfall vs benchmark1 LfL Sales and Footfall vs 2019 +8.8ppt 16 May – 30 October1 100% 80% HY222 Outperformance 60% 40% Retail Parks are in line with pre-pandemic 20% levels for both footfall and LfL sales 0% Footfall LfL Sales
Slide 28: Retail & Fulfilment portfolio weighted to Retail Parks
Retail & Fulfilment portfolio weighted to Retail Parks Retail & Fulfilment Portfolio - £2.9bn Open air schemes • Increasingly strong occupier base focused on Retail Parks – Affordable rents Traditional 8% covered shopping – Online compatible & online resilient customers centres 20% • Occupational ma
Slide 29: Driving operational performance at Shopping Centres
Driving operational performance at Shopping Centres • Near term focus: – Maximising occupancy – Stabilising rental income • Attractive returns as yields and cash flows stabilise • Longer term opportunities for London and South East centres Drake Circus, Plymouth 22
Slide 30: Leveraging the crossover between retail and fulfilment
Leveraging the crossover between retail and fulfilment Traditional Retail Park Adding logistics space Conversion Fort Kinnaird Teesside Shopping Park Thurrock Shopping Park 30% of occupiers shipping from store Utilising additional space on well Partial conversion of retail parks that connected retai
Slide 31: Strategic activity driving operational performance
Strategic activity driving operational performance • Strong leasing across the business – 2m sq ft leasing activity • Campus proposition delivering – 1 Broadgate fully pre-let or under option • Retail Parks driving value – +7.1% in the half – £1.7bn Retail Park portfolio Teesside 31
Slide 32: Strategy and outlook
Strategy and outlook Simon Carter Peterhouse Technology Park, Cambridge 32
Slide 33: Our Strategy: Places people prefer
Our Strategy Places people prefer. With a focus on development, active management and repositioning opportunities. Investing behind two strategic themes: Campuses Retail & Dynamic Fulfilment neighbourhoods Retail Parks & Urban focused on growth Logistics aligned to the customers and growth of sector
Slide 34: Leveraging our Campus proposition to drive value
Campuses Leveraging our Campus proposition to drive value • Sweet spot for today’s occupiers – Modern high quality space and market leading sustainability credentials – Excellent transport connections, public realm & amenities • Campus development delivered £2bn of profits over ten years • Successfu
Slide 35: Recently completed developments delivered attractive IRRs
Campuses Recently completed developments delivered attractive IRRs 1 Triton Square 100 Liverpool Street 135 Bishopsgate 1 Finsbury Avenue 12% pa IRR1 15% pa IRR1 9% pa IRR1 14% pa IRR1 Offices fully let to Facebook 94% let Fully let 94% let BREEAM Outstanding BREEAM Outstanding BREEAM Excellent BREE
Slide 36: On site with 1.6m sq ft Campus development
Campuses On site with 1.6m sq ft Campus development PC Q2 25 PC Q3 23 PC Q2 24 PC Q3 24 1 Broadgate Norton Folgate Aldgate Place Canada Water Phase 1 10% forecast IRR1 12% forecast IRR1 11% forecast IRR1 11% forecast IRR1 Fully pre-let on offices Speculative Build to rent Speculative 901kg CO2e per
Slide 37: Delivering Phase 1 at Canada Water
Campuses Delivering Phase 1 at Canada Water A1, 272,000 sq ft A2, 248,000 sq ft K1, 62,000 sq ft 186 build to sell homes 180,000 sq ft workspace 79 affordable homes pre sold to London Borough of 120,000 sq ft workspace Rents £50+ psf Southwark 10,000 sq ft retail Rents £50+ psf 70% social rent 55,00
Slide 38: Large pipeline of attractive campus development opportunities
Campuses Large pipeline of attractive campus development opportunities Near Term Medium Term 2-3 Finsbury Avenue 718,000 sq ft Workspace 5 Kingdom Street 438,000 sq ft Workspace The Priestley Centre Canada Water, later phases Euston Tower 116,000 sq ft 4.5m sq ft 574,000 sq ft Lab-enabled space Full
Slide 39: Investing in Innovation – the Golden Triangle
Campuses Investing in Innovation – the Golden Triangle Golden Triangle rationale Plays to our strengths Investment: £65bn VC funding in Track record of securing planning Planning & London, Oxford & Cambridge development and delivering high quality buildings Talent: Account for majority of successful
Slide 40: Acquiring assets aligned to growth and innovation
Campuses Acquiring assets aligned to growth and innovation • Peterhouse Technology Park, Cambridge – Acquired for £75m, 4.15% NIY – Fully let to Arm, UK’s leading tech business – Highly reversionary, passing rent of £25.85 psf • Surrey Research Park, Guildford – £27m acquisitions – Development poten
Slide 41: Retail Park value play – our hypothesis
Retail & Retail Park value play – our hypothesis Fulfilment • Retailers rotating into retail parks – occupational market stronger – Affordable rents – Online compatible: click & collect, ship from store – Online resilient: attractive to discounters • Institutional investors entering the market – £1.
Slide 42: Retail Parks delivering quicker than expected
Retail & Retail Parks delivering quicker than expected Fulfilment Indicative 5 year view in May Investment thesis playing out Attractive net initial yield of 8% 6 months to 30 Sept 2021: ERV decline, c.5% then stabilisation Mild ERV decline, down 1.1% Occupancy increase, c.5% Occupancy increase, +1.
Slide 43: Urban Logistics in London
Retail & Urban Logistics in London Fulfilment • Creating new logistics warehouse space for last mile delivery in London via: – Repurposing – Densification – Incorporating into mixed use • Strong drivers of demand – E-commerce, in particular same day delivery – Attractive sustainability credentials •
Slide 44: Three key themes which play to our strengths
Retail & Three key themes which play to our strengths Fulfilment Retail Park Thurrock Shopping Park Conversions Heritage House Regent’s Place Densification Heritage House, Enfield opportunities Finsbury Square Car Park Thurrock Shopping Centre Paddington Central Canada Water Repurposing & Finsbury S
Slide 45: Retail Park Conversion – Thurrock
Retail & Retail Park Conversion – Thurrock Fulfilment • Attractive entry price – £82m, £3.8m per acre • Well suited for urban logistics – 21.5 acres, M25 location – Elevated location facilitates multi-storey development without a ramp • Target IRR c.15%1 • Target market: – Retailer fulfilment – Thir
Slide 46: Densification opportunities – Enfield
Retail & Densification opportunities – Enfield Fulfilment • £87m acquisition • Opportunity to deliver multi- storey urban logistics warehouse – 11 acres, inside the M25 – 40% coverage ratio – low for London – Area identified for intensification • Target IRR c.10%1 • Target market: – Retailer fulfilm
Slide 47: Repurposing in Central London – Finsbury Square car park
Retail & Repurposing in Central London – Finsbury Fulfilment Square car park • £20m acquisition • Ideal as a city-centre logistics hub – 75,000 sq ft GIA today – Zone 1 close to Broadgate • Target IRR c.15%1 • Target market: – Third party logistics providers – Quick commerce – Dark kitchens 1 From a
Slide 48: Maintaining momentum – next steps
Maintaining momentum – next steps Realising the Progressing value Targeting the potential of our accretive opportunities in Active capital Campuses development retail fulfilment recycling Pre-lets at Norton Progress pipeline Acquire assets with Further recycling out of Folgate and Canada including 5
Slide 49: Outlook for our markets – next 12 months
Outlook for our markets – next 12 months • Campuses – Expect London Campus ERV growth of 0-3% – Yield compression likely • Retail Parks – ERVs to stabilise with growth returning for small, well located parks – Further yield compression, appetite extending to larger lot sizes • Shopping Centres – ERV
Slide 50: Summary
Summary • Themes underpinning strategy strengthening • Good progress delivering – Development-led investment in Innovation Campuses – Retail Park value play – Urban Logistics in London • Well placed to deliver attractive total returns Norton Folgate 29
Slide 51: Appendices
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Slide 52: A high-quality portfolio, focusing on two themes
A high-quality portfolio, focusing on two themes £9.8bn (BL share) Retail & Fulfilment (30%) Campuses (70%) Retail parks (18%) London campuses (63%) 80% Shopping centres (8%) London & Canada Water & other campuses (6%) South East Other retail (3%) Residential (1%) Urban logistics (1%) 52
Slide 53: HY22 rent collection
HY22 rent collection Rent due between 25 March 2021 and 28 September 2021 As at 9th November Offices Retail1 Total Received 100% 93% 96% Rent forgiven - 2% 1% Outstanding - 5% 3% 100% 100% 100% Total £94m £137m £231m 1 Includes non-office customers located within our London campuses. 53
Slide 54: September quarter 2021 rent collection
September quarter 2021 rent collection Rent due between 29 September 2021 and 9 November 2021 As at 9th November Offices Retail1 Total Received 99% 87% 93% Rent forgiven - - - Customer paid monthly - 4% 2% Outstanding 1% 9% 5% 100% 100% 100% Total £48m £52m £100m 1 Includes non-office customers loca
Slide 55: Major retail property holdings
Major retail property holdings As at 30 September 2021 BL Share Sq ft Rent (100%) Occupancy Lease Length % 000’s £m pa1,4 Rate %2,4 yrs3,4 1 Meadowhall, Sheffield 50 1,500 70 97.0 4.1 2 Glasgow Fort, Glasgow 100 510 17 94.3 5.3 3 Teesside, Stockton 100 569 14 94.2 3.0 4 Ealing Broadway, London 100 5
Slide 56: Broadgate Campus
Broadgate Campus @ 1 Broadgate @ 3 Broadgate © 1 Finsbury avenue © 2.83 Finsbury Avenue @ Broadgate "oAre sce, © Broadgate Circle @ 100 Liverpool Street © 1 Appold Street @ 10 Exchange Square @ Exchange House @ Broadwalk House @® The Broadgate Tower ©® 201 Bishopsgate @ 199 Bishopsgate ® 175 Bishops
Slide 57: Paddington Central Campus
Paddington Central Campus 57
Slide 58: 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 59: Storey roll out
Storey roll out 1 Finsbury Avenue 100 Liverpool Street Woolwich 19 Wells Street national House ) F
Slide 60: 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 61: 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 62: Sustainability Indices Performance
Sustainability Indices Performance HY 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 2020: A- (Standing Investment and 2020: Gold 2021: Gold for
Slide 63: Top 20 occupiers
Top 20 occupiers Retail & Fulfilment Campuses Occupier Split by Industry (% of rent) As at % of As at % of 30 September 2021 Retail 30 September 2021 Office Grocery & Other 6% Rent Rent Convenience 3% Next 5.4 Meta (Facebook) 17.6 TMT 20% Walgreens (Boots) 4.9 dentsu international 4.5 Home & DIY 5%
Slide 64: Capital Activity
Capital Activity Since 1 April 2021 Campuses Retail & Fulfilment Total £m £m £m Purchases1 102 399 501 Sales2 (79) (117) (196) Development Spend 90 4 94 Capital Spend 13 10 23 Net Investment 126 296 422 Gross Capital Activity 284 530 814 On a proportionally consolidated basis including the Group’s s
Slide 65: Capital Activity £6.6bn
Capital Activity £6.6bn Gross investment activity since April 2017 Net Spend1 £m £(739)m £(753)m £121m £(961)m £422m 600 200 (200) (600) (1,000) (1,400) FY18 FY19 FY20 FY21 HY22 Sales Capital Investment Purchases Net Spend 1 Previous periods have been restated to exclude transactions exchanged in th
Slide 66: Purchases
Purchases Since 1 April 2021 Sector Price Price Annual (100%) (BL Share) Passing Rent £m £m £m1 Completed Hercules Unit Trust units Retail 148 148 12 Thurrock Retail Park Retail 82 82 5 Blackwater Shopping Park, Farnborough2 Retail 38 38 2 B&Q, Cambridge2 Retail 24 24 1 Heritage House, Enfield Logis
Slide 67: Sales
Sales Since 1 April 2021 Sector Price Price Annual (100%) (BL Share) Passing 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 Wardrobe Court, London Residential 70 70 - St Ann
Slide 68: H2 FY22 income statement guidance
H2 FY22 income statement guidance Gross Rents Financing • Annualised accounting gross rent of £449m as at 30 Sep • Weighted average interest rate now 2.7% on gross debt of £3.5bn. 20211. • Undrawn facilities of £1.4bn, with commitment fees of c.30bps p.a. • Retail % like for like movement, absent an
Slide 69: Illustrative future income profile breakdown (cash basis)
Illustrative future income profile breakdown (cash basis) For the year to 31 March 2022 2023 2024 2025 2026 Total Accounting Basis As at 30 September 2021 £m £m £m £m £m £m Current Passing Rent 448 4 452 Contracted uplifts 12 17 13 23 - 65 Pre-lets of Committed Developments1 - - - - 5 5 4 Contracted
Slide 70: Gross rental income
Gross rental income1 Accounting Basis £m 6 months to 30 September 2021 Annualised as at 30 September 2021 Group JVs & Funds Total Group JVs & Funds Total West End 57 3 60 122 5 127 City 6 42 48 6 74 80 Canada Water & other Campuses 5 - 5 7 - 7 Residential2 1 - 1 1 - 1 Campuses 69 45 114 136 79 215 R
Slide 71: Underlying Profit Bridge
Underlying Profit Bridge 47 (8) 2 £m (14) (6) (8) 120 107 295 87 HY 2021 Net divestment Developments Excl. impact of Like for like incl. Provisions for Fees & other costs Financing activity HY 2022 capital activity CVAs and admins debtors and tenant and lower interest incentives rates 71
Slide 72: Underlying earnings per share
Underlying earnings per share 5.1p (0.8p) 1.0p (1.4p) (0.6p) (0.9p) 12.9p 10.5p 8.5 8.5p HY 2021 Net divestment Development Excl. impact of Like for like Provisions for Financing and Tax charge HY 2022 capital activity income incl. CVAs debtors and admin costs & admins tenant incentives 72
Slide 73: Operating cash flow bridge
Operating cash flow bridge 9 (81) £m 13 24 (31) (2) 175 107 (96) Cash rental Distributions Fees and other Sale of trading Operating and Net finance Corporation Net cash inflow HY22 income from JVs and income properties admin costs tax from operating Dividend Funds expenses activities HY22 Dividend e
Slide 74: Administrative expenses
Administrative expenses 6 months to 30 September 2020 2021 £m £m Personnel costs 21 26 Share scheme costs 3 3 Other administrative expenses 17 18 Total 41 47 Capitalised costs (3) (3) Total administrative expenses 38 44 On a proportionally consolidated basis including the Group's share of Joint vent
Slide 75: CVAs and Administrations
CVAs and Administrations Data since April 2017 Annualised contracted rent lost by Quarter (£m) Contracted rent Number of % split of CVA - stores closing CVA - reduced rents reduction £m Stores Units 18 Admins - stores closing Admins - reduced rent Number of units in portfolio c.3,000 16 Stores under
Slide 76: Operating costs metric
Operating costs metric 6 months to 30 September 2020 2021 £m £m Property operating expenses 77 31 Administrative expenses 38 44 Net fees and other income (6) (5) Ground rent costs and operating expenses de facto included in rents (10) (10) EPRA Costs (including direct vacancy costs) 99 60 Gross rent
Slide 77: Reconciliation of Underlying Profit
Reconciliation of Underlying Profit 6 months to 30 September 2020 2021 £m £m IFRS (loss) / profit after tax attributable to shareholders (730) 370 Net valuation loss / (gain) 875 (279) Profit on disposal of investment and trading properties (19) (3) Capital financing costs 11 1 Non-controlling inter
Slide 78: Number of shares
Number of shares As at 31 March 2021 30 Sep 2021 (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 loss
Slide 79: EPRA balance sheet
EPRA balance sheet 31 March 2021 Group JVs & Funds 30 Sep 2021 Total properties (£m)1 9,140 6,719 3,131 9,850 Adjusted net debt (£m) (2,938) (2,293) (1,003) (3,296) Other net liabilities (£m) (152) (166) (42) (208) EPRA Net Tangible Assets (£m) 6,050 4,260 2,086 6,346 Loan to value (LTV)2 32.0% 33.4
Slide 80: EPRA Net Asset Metrics
EPRA Net Asset Metrics 31 March 2021 30 Sep 2021 EPRA NTA1 EPRA NDV2 EPRA NRV3 EPRA NTA1 EPRA NDV2 EPRA NRV3 IFRS Net Assets 5,983 5,983 5,983 6,249 6,249 6,249 Mark to market on derivatives and related debt 115 - 115 103 - 103 adjustments Adjust to fully diluted on exercise of share 14 14 14 11 11
Slide 81: Gross and net debt reconciliation
Gross and net debt reconciliation As at 30 Sep 2021 Group JVs & Funds Less non- Total £m £m controlling £m interests £m Gross Debt (principal) (2,361) (1,096) - (3,457) IFRS adjustments: Issue costs and premia 10 4 - 14 Fair value hedge adjustments (102) - - (102) IFRS gross debt (2,453) (1,092) - (
Slide 82: Loan to value (LTV)
Loan to value (LTV) As at Valuation Acquisitions Capital Disposals Operating Dividend Other As at 31 March movement spend cashflow 30 Sep 2021 2021 £m £m Total properties 9,132 279 432 143 (159) (9) - 22 9,840 Other 26 5 - - - - - 4 35 investments LTV assets 9,158 284 432 143 (159) (9) - 26 9,875 Ad
Slide 83: Debt metrics
Debt metrics Proportionally Consolidated 31 Mar 2021 30 Sep 2021 Loan to value (LTV) 32.0% 33.4% Weighted average interest rate 2.9% 2.7% Interest cover 3.0x 3.4x Weighted average maturity of drawn debt 7.6yrs 7.0yrs Group 31 Mar 2021 30 Sep 2021 Loan to value (LTV) 25.1% 26.0% Available undrawn fac
Slide 84: Debt maturity
Debt maturity £m 1,600 1,400 Facilities Undrawn (Unsecured) Facilities Drawn (Unsecured) Debenture & Loan Notes (Secured) 1,200 Sterling Bond (Unsecured) US Private Placements (Unsecured) 1,000 JVs & Funds – Bank Drawn (Secured) JVs – Securitisations (Secured) 800 600 400 200 - 2022 2023 2024 2025 2
Slide 85: Debt financing – diverse profile
Debt financing – diverse profile £4.9bn Debt and facilities (£3.5bn drawn)1 • £1.5bn undrawn facilities and cash 30 September 2021 • Refinanced 100 Liverpool Street; £0.6bn – Broadgate joint venture raised new £420m, 5 year Facilities Undrawn secured ‘Green Loan’ Facilities Drawn £1.4bn US Private P
Slide 86: Portfolio valuation by sector
Portfolio valuation by sector At 30 September 2021 Group JVs & Funds Total Change %1 £m £m £m % £m West End 3,409 128 3,537 2.8 98 City 369 2,339 2,708 2.6 70 Canada Water & other Campuses 600 - 600 6.9 38 2 Residential 58 - 58 (0.8) (1) Campuses 4,436 2,467 6,903 3.0 205 Retail Parks 1,461 271 1,73
Slide 87: Valuation movement – Campuses
Valuation movement – Campuses 6 months to 30 Sep 2021 Valuation Change Change Yield movement ERV movement £m £m %1 Bps2 %2 West End 3,537 98 2.8 -6bps (0.4) City 2,708 70 2.6 -7bps (0.1) Central London 6,245 168 2.8 -6bps (0.3) Canada Water & other Campuses 600 38 6.9 +1bps (0.2) Residential 58 (1)
Slide 88: Valuation movement – Retail & Fulfilment
Valuation movement – Retail & Fulfilment 6 months to 30 Sep 2021 Valuation Change Change Yield movement ERV movement £m £m %1 Bps2 %2 Retail Parks 1,732 117 7.1 -54 (1.1) Shopping Centre 814 (36) (4.2) +8 (3.8) Other Retail 273 (1) (0.4) -15 0.5 Urban Logistics 118 (1) (0.9) -26 - Retail & Fulfilmen
Slide 89: Retail & Fulfilment Valuation Movements
+3%Internal Retail & Fulfilment Valuation Movements H1 FY22 valuation movement Sep ’21 Valuations (£’m) 1,200 1,000 800 600 400 200 0 Greater than 10% 5% to 10% 0% to 5% 0% to -5% -5% to -10% Less than -10% Retail Parks Shopping Centre Urban Logistics Other Retail % Valuation Movement in H1 FY22 89
Slide 90: Portfolio net yields
Portfolio net yields1,2 As at 30 Sep 2021 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 3.2 4.0 4.0 4.4 -6 4.7 (0.4) City 2.9 3.7 3.7 4.4
Slide 91: Portfolio weighting
Portfolio weighting As at 30 September 2021 2020 2021 2021 % % £m West End 39.5 35.9 3,537 City 24.6 27.5 2,708 Canada Water & other Campuses 3.5 6.1 600 Residential1 1.3 0.6 58 Campuses 68.9 70.1 6,903 Retail Parks 14.7 17.6 1,732 Shopping Centre 12.2 8.3 814 Other Retail 4.1 2.8 273 Urban Logistic
Slide 92: Lease length and occupancy
Lease length and occupancy As at 30 September 2021 Average Lease Length (yrs) Occupancy Rate (%) To Expiry To Break EPRA Occupancy Occupancy1,2,3 West End 7.9 7.3 96.7 97.1 City 8.0 6.9 85.1 93.8 Other Campuses 6.9 5.5 82.0 82.6 Residential 17.0 16.7 100.0 100.0 Campuses 7.9 7.1 91.3 95.1 Retail Par
Slide 93: Annualised rent & estimated rental value (ERV)
Annualised rent & estimated rental value (ERV) As at 30 September 2021 Annualised Rents ERV Average Rent (Valuation Basis) £m1 £m (£psf) Group JVs & Funds Total Total Contracted2 ERV West End3 114 5 119 160 64.5 68.8 3 City 6 71 77 124 54.0 56.8 Other Campuses 7 - 7 12 20.1 36.6 4 Residential 1 - 1
Slide 94: Rent subject to open market rent review
Rent subject to open market rent review For the year to 31 March 2022 2023 2024 2025 2026 2022–24 2022–26 As at 30 September 2021 £m £m £m £m £m £m £m West End 5 22 5 14 9 32 55 City - 2 15 8 27 17 52 Canada Water & other Campuses - - - 1 - - 1 Residential 1 - - - - 1 1 Campuses 6 24 20 23 36 50 109
Slide 95: Rent subject to lease break or expiry
Rent subject to lease break or expiry For the year to 31 March 2022 2023 2024 2025 2026 2022-24 2022-26 As at 30 September 2021 £m £m £m £m £m £m £m West End 9 16 13 10 14 38 62 City 4 2 15 4 16 21 41 Other Campuses 2 1 2 - - 5 5 Residential - - - - - - - Campuses 15 19 30 14 30 64 108 Retail Parks
Slide 96: Contracted rental increases (cash flow basis)
Contracted rental increases (cash flow basis) For the year to 31 March 2022 2023 2024 2025 2026 2022-24 2022-26 As at 30 September 2021 £m £m £m £m £m £m £m Expiry of rent free periods 8 15 12 22 - 35 57 Fixed uplifts (EPRA basis) - 1 - - - 1 1 Fixed & minimum uplifts - 1 1 1 - 2 3 Total 8 17 13 23
Slide 97: Total Property Return (as calculated by MSCI)
Total Property Return (as calculated by MSCI) 6 months to 30 September 2021 Offices Retail Total % British Land MSCI British Land MSCI British Land MSCI Capital Return 3.3 1.2 2.9 2.4 3.1 5.4 – ERV Growth (0.3) 0.5 (1.9) (1.6) (1.0) 0.8 – Yield Movement1 (6) bps (14) bps (32) bps (33) bps (15) bps (
Slide 98: De-risked development pipeline focused on campuses
De-risked development pipeline focused on campuses 2-3 Finsbury Avenue 1 Triton Square Canada Water, Phase 1 The Priestley Centre Meadowhall, Logistics 718,000 sq ft 369,000 sq ft Plots A1, A2 and K1 - 582,000 sq ft 116,000 sq ft 571,000 sq ft Completed Q2 2021 Completion Q3 2024 Norton Folgate Aldg
Slide 99: Recently Completed & Committed developments
Recently Completed & Committed developments As at Sector BL Sq ft PC Current Cost to ERV Let & Forecast 30 September 2021 Share (100%) Calendar Value Come under IRR Year offer % '000 £m £m1 £m2 £m % 1 Triton Square Office 100 369 Q2 2021 514 - 24.3 23.9 12 Total Completed in the period 369 514 - 24.
Slide 100: Near term development pipeline
Near term development pipeline As at Sector BL Sq ft Earliest Current Cost to ERV Let & Planning 30 September 2021 Share (100%) Start on Value Come Under Status Site Offer % '000 Calendar £m £m1 £m2 £m Year Near Term Pipeline 5 Kingdom Street Office 100 438 Q4 2022 122 350 30.0 - Consented Meadowhal
Slide 101: Medium term development pipeline
Medium term development pipeline As at 30 September 2021 Sector BL Share Sq ft Planning status (100%) % '000 Medium term Pipeline 2-3 Finsbury Avenue Office 50 718 Consented Eden Walk Retail & Residential Mixed Use 50 452 Consented Ealing – 10-40 The Broadway Mixed Use 100 303 Pre-submission Ealing
Slide 102: Estimated future development spend and capitalised interest
Estimated future development spend and capitalised interest As at 30 September 2021 PC Cost to Come £m Calendar (excluding notional interest) – 6 months breakdown Year Mar-22 Sep-22 Mar-23 Sep-23 Mar-24 Sep-24 Mar-25 Sep-25 Total 1 Triton Square Q2 2021 - - - - - - - - - Total Completed - - - - - -
Slide 103: Canada Water – Illustrative Scheme
Canada Water – Illustrative Scheme First K1 Masterplan detailed plots L2 A1 Total NIA H2 L1 5.0m 0.6m (sq ft) M1 H3 H1 A2 Commercial 2.1m 0.3m D1 D2 (sq ft) Retail & Leisure 0.6m 0.1m (sq ft) New Homes 3,000 265 (units) Buildings highlighted above reflect indicative First Major Scheme Note: The figu
Slide 104: Central London development pipeline
Central London development pipeline Completed Q3 2021 U/C Pre-let Pipeline Pre-let U/C – Speculative Potential Speculative m sq ft 10 year average new and under-construction take-up 10 year average development completions 12.0 10.0 8.0 6.0 4.7m 4.0 4.4m 2.0 0.0 07 08 09 10 11 12 13 14 15 16 17 18 19
Slide 105: Vacancy Central London
Vacancy Central London West End West End & City Vacancy Rates West End 10 year average City 20 City 10 year 18 average 16 14 12 10 8 6 4 2 0 1985 1990 1995 2000 2005 2010 2015 Q3 2021 Source: CBRE (historic) 105
Slide 106: Disclaimer
Disclaimer The information contained in this presentation has been extracted largely from the Half Year Results Announcement for the year ending on 30 September 2021. For the purpose of this document, references to "presentation" shall be deemed to include this document, the oral briefing provided b