British Land Company Plc · LSE:BLND
British Land — FY2024 Earnings Presentation
72 slides from British Land's earnings presentation, May 23, 2024
Slide 1: Full Year Results
fw mtv TH | ct 22 MAY 2024 FULL YEAR RESULTS
Slide 2: Introduction
01 I N T R O D U CT I O N SIMON CARTER Paddington Central FULL YEAR RESULTS | 31 MARCH 2024 PG.2
Slide 3: Key Takeaways
KEY TAKEAWAYS CONTINUED OPERATIONAL STRONG RENTAL GROWTH AND MOMENTUM VALUES STABLE IN H2 Strong leasing 3.3m sq ft, 15.1% ahead of ERV 5.9% ERV growth, yields +33 bps Good cost control Stable values in H2 Underlying Profit up 2% 300 bps MSCI All Property total return outperformance ACTIVE CAPITAL R
Slide 4: Financial Results
FINANCIAL R E S U LT S BHAVESH MISTRY Glasgow Fort FULL YEAR RESULTS | 31 MARCH 2024 PG.4
Slide 5: Good Performance and Resilient Balance Sheet
GOOD PERFORMANCE AND RESILIENT BALANCE SHEET £268M 28.5P 22.80P Underlying Profit Underlying earnings per share Dividend per share +2% vs FY23 +1% vs FY23 +1% vs FY23 562P 34.6% 6.4X EPRA NTA per share Loan To Value Group Net Debt to EBITDA (Pro forma for Meadowhall disposal post year end) (Pro form
Slide 6: Full Year Earnings and Dividend Growth
FULL YEAR EARNINGS AND DIVIDEND GROWTH Financial year ending 31 March (£m) FY24 FY23 Change % Rent impacted by Paddington JV Gross rental income 476 493 (3%) (-£11m) and Meta surrender (-£9m) Property operating expenses (36) (47) (23%) Net rental income 440 446 (1%) NRI margin 92.4% 90.5% +190 bps T
Slide 7: Earnings Per Share Growth
EARNINGS PER SHARE GROWTH Campuses +4% Storey -18% Retail1 +1% 0.5p (2.6p) 0.5p (0.3p) 0.5p 0.4p 1.2p 28.3p 28.5p +1% Mar-23 Mar-23 Net divestment Net Developments Provisions Provisions for for Like-for-like Like-for-like Fee Fee income income Admin Admin & & finance finance Tax Tax Mar-24 divestmen
Slide 8: EPRA NTA Broadly Flat in H2
EPRA NTA BROADLY FLAT IN H2 (23p) MINIMAL H2 NTA DECLINE 13p (12p) (4p) 588p (0p) 565p 562p Mar-23 H1 movement Sep-23 Valuation Underlying Dividend Other 1 Mar-24 movements Profit TOTA L A C C O U N T I N G R E T U R N – 0 . 5 % FULL YEAR RESULTS | 31 MARCH 2024 1 Other includes movement in respect
Slide 9: Strong Financial Position
STRONG FINANCIAL POSITION Pro forma 31 March 31 March Meadowhall 2024 2023 EXCELLENT LIQUIDITY − £1.9bn undrawn facilities and cash at 31 March 2024 Net Debt1 £2.9bn £3.3bn £3.2bn − No requirement to refinance until early 2027 Net Debt to EBITDA Group2 6.4x 6.8x 6.4x GOOD ACCESS TO DEBT MARKETS Prop
Slide 10: Loan to Value
LOAN TO VALUE 0.8% (1.7)% 3.2% (2.9)% 1.5% 0.4% (2.7)% 41.2% 36.0% 37.5% 37.3% 34.6% (140) bps Mar-23 Valuation Acquistions Development Other Meta Disposals Mar-24 Meadowhall Proforma Mvmt capex Surrender disposal Mar-24 FULL YEAR RESULTS | 31 MARCH 2024 PG.10
Slide 11: Capital Allocation
CAPITAL ALLOCATION BALANCE SHEET ACQUISITIONS Westwood Retail Park, Thanet purchased at a Disposals on average 11% above book value 8.1% NIY DEVELOPMENTS SHAREHOLDER DISTRIBUTIONS Committed to Mandela Way and Dividend growth of 1% 2 Finsbury Avenue1 1 Post period end FULL YEAR RESULTS | 31 MARCH 202
Slide 12: Developments: Commitments Made Under Current Market Conditions
DEVELOPMENTS: COMMITMENTS MADE UNDER CURRENT MARKET CONDITIONS MET THROUGH IMPROVING INCREASED HURDLES M A R K E T DY N A M I C S Target returns London campuses IRR IRR 10-12% 12-14% Target returns London urban logistics − Limited new supply IRR IRR − Driving higher rents 12-14% 14-16% − Constructio
Slide 13: Developments: Strong Returns on Recent Commitments
DEVELOPMENTS: STRONG RETURNS ON RECENT COMMITMENTS Yield Profit IRR on Cost on Cost E P S TO CO M E 1 Target returns INCREMENTAL EARNINGS PER SHARE (P) 12 - 14% 6.5 - 7.5% c.20% London campuses Projected returns 2 Finsbury Avenue c.15% 4.5 Target returns 14 - 16% 6 - 7% c.18.5% London urban logistic
Slide 14: Summary
SUMMARY UNDERLYING RESILIENT BALANCE SHEET, ACTIVE & DISCIPLINED PROFIT GROWTH EXCELLENT LIQUIDITY CAPITAL DEPLOYMENT FULL YEAR RESULTS | 31 MARCH 2024 PG.14
Slide 15: Real Estate Review
R E A L E STAT E REVIEW DARREN RICHARDS RICHARDS Regent’s Place FULL YEAR RESULTS | 31 MARCH 2024 PG.15
Slide 16: Values Stable in H2 with Strong Rental Growth
VALUES STABLE IN H2 WITH STRONG RENTAL GROWTH YIELD VALUATION MOVEMENT ERV VALUATION £M NEY MOVEMENT H1 H2 FY24 MOVEMENT TOTAL 8,684 +33 bps -2.5% -0.2% -2.6% 6.2% 5.9% Campuses 5,278 +50 bps -4.0% -1.5% -5.3% 5.5% 5.4% Retail & London Urban Logistics 3,406 +15 bps 0.1% 2.0% 2.1% 7.0% 6.3% Retail Pa
Slide 17: Demand Focussed on Best Space in Core London Locations
CAMPUSES DEMAND IS FOCUSSED ON THE BEST SPACE IN CORE LONDON LOCATIONS CENTRAL LONDON ACTIVE DEMAND BY SECTOR 2 (m sq ft) CORE CENTRAL LONDON TAKE UP 13 12 +12% AHEAD OF 10-YR AVERAGE 1 11 10 POSITIVE FORWARD-LOOKING 9 INDICATORS 8 7 − Under offers 24% above 10-year average1 6 5 − Super prime deals
Slide 18: Vacancy for the Best vs Rest Continues to Diverge
CAMPUSES VACANCY FOR THE BEST VS REST CONTINUES TO DIVERGE VACANCY F O R NEW SPACE I N CO RE CENTRAL LO NDO N I S DI VERG I NG M AJO RI TY O F VACANT SPACE I S SECO NDH AND 2 F RO M TH E REST 1 (m sq ft) 14% Q1 2024: 11.1% 12% 10% 8% 6% 4% 2% Q1 2024: 1% 0% 2014 2015 2016 2017 2018 2019 2020 2021 20
Slide 19: Strong Operational Momentum Across Our Campuses
CAMPUSES STRONG OPERATIONAL MOMENTUM ACROSS OUR CAMPUSES − 679,000 sq ft of leasing activity1, 8.7% ahead of ERV − 316,000 sq ft of deals completed post period end 13.1% ahead of ERV, including 252,000 sq ft pre-let to Citadel at 2FA − 544,000 sq ft under offer, 9.3% ahead of ERV, with a further 806
Slide 20: Excellent Leasing Across Our Developments
CAMPUSES EXCELLENT LEASING ACROSS OUR DEVELOPMENTS Completed: Q1 24 Committed / onsite Completed / onsite 3 SHELDON SQUARE, 2 F I N S B U R Y AV E N U E , UP NEXT PA D D I N GTO N C E N T R A L B R O A D G AT E − LOW CARBON REFURBISHMENT: − 252,000 SQ FT PRE-LET TO − NORTON FOLGATE ALL ELECTRIC DESI
Slide 21: Canada Water
CAMPUSES CANADA WATER FIRST PHASE READY FOR OCCUPATION IN 2025 − Residential sales achieving £1,250 psf, above target pricing, sales velocity increasing − Best-in-class office space targeting £50 psf FLEXIBILITY BUILT IN TO THE MASTERPLAN − Ability to deliver the right mix of residential, retail, le
Slide 22: 1 Triton Square JV: The Economics
CAMPUSES 1 TRITON SQUARE JV: THE ECONOMICS £149M SURRENDER PREMIUM RECEIVED − Opportunity to capture positive £149M £193M WE RETAIN reversion SURRENDER PROCEEDS 50% OF THE − Opportunity to accelerate our PREMIUM OF THE JV BUILDING science and technology strategy 50:50 JV WITH ROYAL LONDON EQUIVALENT
Slide 23: Excellent Progress on EPC Upgrades
CAMPUSES EXCELLENT PROGRESS ON EPC UPGRADES PERCENTAGE OF THE PORTFOLIO c.64% £18M RATED EPC A OR B 58% spent to date on EPC upgrades of which 63% has been recovered via service charge 50% 45% 36% GRESB 5* across developments and standing investments – global industry leader score 99/100 on developm
Slide 24: Retail Parks Have Favourable Supply Fundamentals
R E TA I L PA R K S RETAIL PARKS HAVE FAVOURABLE SUPPLY FUNDAMENTALS <5% 8% o f re t a il p a r k s up p l y a d d e d in l a s t o f t o t a l 1 . 5 b n s q ft U K re t a il 1 0 y ea r s m a r ke t 15-20 units 8.9% p e r re t a il p a r k occupancy cost ratio HU F A LLFL YYEEAAR RR R E SEUSLUTLST|S
Slide 25: Retail Parks: Another Record Breaking Year
R E TA I L PA R K S RETAIL PARKS: ANOTHER RECORD BREAKING YEAR 1 . 5 M S Q F T O F R E TA I L PA R K L E A S I N G AC T I V I TY − 19.9% ahead of ERV A F U RT H E R 2 8 2 , 0 0 0 S Q F T U N D E R O F F E R − 19.2% ahead of ERV O CC U PA N CY R E M A I N S H I G H AT 9 9 % − Reflecting strong demand
Slide 26: Positive Leasing and Planning Progress
LONDON URBAN LOGISTICS POSITIVE LEASING AND PLANNING PROGRESS Regeared 230,000 sq ft of space Deals completed 102% ahead of across the portfolio previous passing FULL YEAR RESULTS | 31 MARCH 2024 Planning achieved on 4 of our Started on site at Mandela 7 sites Way in Southwark FULL YEAR RESULTS | 31
Slide 27: Summary
SUMMARY STRONG LEASING WE ARE IN THE RIGHT PROGRESS ON AHEAD OF ERV SUBMARKETS DEVELOPMENT PIPELINE FULL YEAR RESULTS | 31 MARCH 2024 PG.27
Slide 28: Strategy & Outlook
04 ST R AT E GY & O U T LO O K SIMON CARTER 1 Triton Square CGI FULL YEAR RESULTS | 31 MARCH 2024 PG.28 PG.28
Slide 29: Capital Recycling Highlights
CAPITAL RECYCLING HIGHLIGHTS DISPOSALS REINVESTMENT − Realised > 80% of value − 2 Finsbury Avenue 1 TRITON forecast mid-teens IRR B E S T- I N - C L A S S SQUARE − c.£30 psf reversion DEVELOPMENTS − 1 Triton Square science SURRENDER & JV − Forecast IRR c.30% and tech repositioning − Exited at £360m,
Slide 30: We Are in the Right Submarkets
WE ARE IN THE RIGHT SUBMARKETS VACANCY OUTPERFORMANCE VS MSCI5 BL1 MARKET ERV GROWTH TPR LO N D O N C A M P U S E S A R E 4% 9% 2 OUTPERFORMING vs +260bps +720bps R E TA I L PA R K S A R E 3 R E TA I L E R S ’ P R E F E R R E D 1% vs 14% +550bps +840bps F O R M AT F U N D A M E N TA L S 0.2% vs 7.2%
Slide 31: Campuses in Sweet Spot of Demand
CAMPUSES CAMPUSES IN SWEET SPOT OF DEMAND L O C AT I O N ESG EXPERIENCE Key transport hubs Low carbon ‘Hotelification’ of space Exciting part of town Wellbeing End of trip facilities Amenity and public realm Community Flexibilit y 80% OF CAMPUS SPACE LET TO UK HQs FULL YEAR RESULTS
Slide 32: Shortfall of New Supply in the City
CAMPUSES SHORTFALL OF NEW SUPPLY IN THE CITY M SQ FT CITY DEVELOPMENT PIPELINE UNDER CONSTRUCTION 1 3.0 2 Finsbury Avenue = only committed building being AVERAGE ANNUAL CITY DEVELOPMENT delivered in 2027 (>100k sq ft) 2.5 OF 1.3M SQ FT TO 2027 1 2.1m sq ft3 − Only 1.7m sq ft in total is speculative
Slide 33: Driving Rental Growth
CAMPUSES DRIVING RENTAL SUPER PRIME (TOP 10%) VS PRIME CITY RENTS 1 (£psf) GROWTH £140 £131 £120 £113 ERV ACROSS OUR CAMPUSES £95 £97 £100 − Increased by 5.4% in FY24 £94 £88 £80 SIGNIFICANT GROWTH IN SUPER £78 PRIME CITY RENTS £73 £60 − Super prime rents in the City forecast to £40 grow c.8% per an
Slide 34: 2 Finsbury Avenue
CAMPUSES 2 FINSBURY AVENUE PRE-LET SECURED WITH CITADEL AT RECORD RENTS − 252k sq ft; option to take a further 128k sq ft − 33% of building pre-let; 50% if option space taken ATTRACTIV E RETURNS − Yield on cost 7% − Profit on cost above 20% − Delivering mid-teens IRR BROADGATE DEVELOPMENTS HAVE BEEN
Slide 35: Track Record of Using JVs to Accelerate Returns
TRACK RECORD OF USING JV’S TO ACCELERATE RETURNS AND STRETCH OUR EQUITY PARTNERSHIPS ENABLE US TO: − ACCELERATE RETURNS − STRETCH OUR EQUITY − SHARE RISK − EARN ATTRACTIVE FEE INCOME FULL YEAR RESULTS | 31 MARCH 2024 PG.35
Slide 36: Recap: Key Takeaways from Science & Technology Seminar
CAMPUSES RECAP: KEY TAKEAWAYS FROM SCIENCE & TECHNOLOGY SEMINAR RIGHT REAL ESTATE, KEY ELEMENT OF OUR BROAD AND FAST LOCATIONS AND CAMPUS STRATEGY GROWING SECTOR CAPABILITIES SCIENCE & TECHNOLOGY CUSTOMERS COULD REPRESENT c.50% OF OUR CAMPUS PORTFOLIO BY 2030 FULL YEAR RESULTS | 31 MARCH 2024 PG.36
Slide 37: Progressing Our Science and Technology Pipeline
CAMPUSES PROGRESSING OUR SCIENCE AND TECHNOLOGY PIPELINE REGENT’S PLACE, PRIESTLEY CENTRE, THE OPTIC, LONDON GUILDFORD CAMBRIDGE Completed 1 Triton Square JV, due to Secured first pre-let with LGC, a Currently onsite; targeting commit to updated scheme shortly global life sciences tools company comp
Slide 38: Retail Parks Are the Preferred Physical Format for Retailers
R E TA I L PA R K S RETAIL PARKS ARE THE PREFERRED PHYSICAL FORMAT FOR RETAILERS W H Y R E TA I L E R S P R E F E R PA R K S N E T S TO R E TA K E U P ( 2 0 1 6 - 2 0 2 3 ) 2 AFFORDABILITY Low occupancy cost ratio: 8.9%1 UK RETAIL PARKS +615 units ACCESSIBILITY Highly efficient way for consumers to
Slide 39: Attractive Forward-Looking Returns
R E TA I L PA R K S ATTRACTIVE FORWARD-LOOKING RETURNS INVESTMENT UNDERPINS STRONG OCCUPATIONAL FUNDAMENTALS 6-7% Net Equivalent Yield LIMITED CAPEX REQUIREMENTS 3-5% ERV growth LIQUIDITY VALUES < REPLACEMENT COST 9-12% Total Property Return FULL YEAR RESULTS | 31 MARCH 2024 PG.39
Slide 40: Occupational Fundamentals Strongest in London Last Mile
LONDON URBAN LOGISTICS OCCUPATIONAL FUNDAMENTALS STRONGEST IN LONDON LAST MILE LONDON LOGISTICS VS UK BIG BOX MARKET VACANCY 1 STRONG OCCUPATIONAL 8% FUNDAMENTALS 7% GROWTH OF E-COMMERCE 6% 5% RISING DEMAND FOR PRIORITY 4% / SAME DAY DELIVERY 3% POLLUTION AND CARBON KEY 2% ISSUES FOR LONDON 1% VERY
Slide 41: Delivering New Space into a Supply Constrained Market
LONDON URBAN LOGISTICS DELIVERING NEW SPACE INTO A SUPPLY CONSTRAINED MARKET MANDELA WAY Enfield Wembley Paddington Finsbury Square Mandela Way Thurrock Verney Road − 144,000 sq ft over 4 storeys − BREEAM outstanding / EPC A Consented schemes Submitted schemes Schemes in design FULL YEAR RESULTS | 3
Slide 42: Outlook
OUTLOOK MACRO AND GEOPOLITICAL UNCERTAINTY REMAINS OUR BASE CASE FOR NEXT 12 MONTHS: − Market implied interest rates − Labour market to remain tight − Real wages to grow modestly FORECASTING 3-5% RENTAL GROWTH IN EACH OF OUR MARKETS FULL YEAR RESULTS | 31 MARCH 2024 PG.42 1 Broadgate PG.42
Slide 43: Priorities Going Forward
PRIORITIES GOING FORWARD CAMPUSES − Recycle out of mature assets − Progress super prime developments including bringing in partners − Increase science and tech weighting R E TA I L PA R K S − Grow the business, investing at attractive yields below replacement cost LONDON URBAN LOGISTICS − Build out
Slide 44: Attractive Future Return Profile
ATTRACTIVE FUTURE RETURN PROFILE VALUE-ADD APPROACH 6.2% PORTFOLIO YIELD 3-5% RENTAL GROWTH DEVELOPMENT UPSIDE TA R G E T I N G TA R O F 8 - 1 0 % T H R O U G H T H E C YC L E FULL YEAR RESULTS | 31 MARCH 2024 PG.44
Slide 45: Appendices
A P P E N D I C E S Please note that information disclosed in the prior period appendices which has now been removed can be found in the press release
Slide 46: Portfolio: Yields
PORTFOLIO: Yields PORTFOLIO NET YIELDS 1,2 As at 31 March 2024 EPRA EPRA topped up Overall topped up Net Net equivalent Net reversionary ERV net initial net initial net initial equivalent yield yield movement yield Growth 3 4 yield yield yield vs Mar-23 5 6 % % % % Bps % % West End 3.7 4.7 4.7 5.6 5
Slide 47: Portfolio: Annual Rent & ERV
PORTFOLIO: Annual Rent & ERV VALUATION BASIS: ANNUALISED RENT & ESTIMATED RENTAL VALUE (ERV) As at 31 March 2024 Annualised rents on a valuation basis ERV Average rent £m1 £m (£psf) Group Joint ventures Total Total Contracted2 ERV West End3 56 15 71 110 68.0 80.7 City3 4 83 87 140 57.5 65.6 Other Ca
Slide 48: Income: Annualised Accounting
INCOME: Annualised Accounting ACCOUNTING BASIS: ANNUALISED GROSS RENTAL INCOME Accounting Basis £m Annualised as at 31 March 2024 Group Joint ventures Total West End 63 16 79 City 23 87 110 Other Campuses 9 4 13 Residential1 - - - Campuses 95 107 202 Retail Parks 143 13 156 Shopping Centre 36 42 78
Slide 49: FY2025 Guidance
FY2025 GUIDANCE GUIDANCE FY2024 FY2025 GUIDANCE £m £m Slightly up as like for like growth and Gross Rental Income 476 480 – 490 development lettings offset Meta surrender and lost income from disposals Return to normalised level following one-off Net Rental Income Margin 92.4% 89 – 91% collection of
Slide 50: Portfolio: Valuation
PORTFOLIO: Valuation PORTFOLIO VALUATION BY SECTOR As at 31 March 2024 Group Joint ventures Total1 % Change2 £m £m £m H1 H2 FY West End 1,570 515 2,085 (2.5) 0.0 (2.5) City 453 2,075 2,528 (4.6) (2.7) (6.9) Canada Water & other Campuses 184 330 514 (9.2) (5.5) (13.1) Residential3 149 2 151 0.8 14.4
Slide 51: Portfolio: Weighting
PORTFOLIO: Weighting PORTFOLIO WEIGHTING As at 31 March 2024 2024 2024 2023 % £m % West End 24.0 2,085 28.5 City 29.1 2,528 28.9 Canada Water & other Campuses 5.9 514 5.1 Residential1 1.8 151 1.0 Campuses 60.8 5,278 63.5 Of which London 98 5,154 97 Retail Parks 24.5 2,128 22.2 Shopping Centre 8.7 75
Slide 52: Portfolio: Occupancy
PORTFOLIO: Occupancy LEASE LENGTH AND OCCUPANCY As at 31 March 2024 Average Lease Length (yrs) Occupancy Rate (%) To Expiry To Break EPRA Occupancy Occupancy1,2,3 West End 5.5 4.7 89.6 95.0 City 8.2 6.7 79.3 97.2 Other Campuses 9.9 7.4 86.2 86.2 Residential4 12.3 12.3 100.0 100.0 Campuses 7.0 5.8 83
Slide 53: Portfolio: Top Occupiers
PORTFOLIO: Top 20 Occupiers TOP 20 OCCUPIERS RETAIL & LONDON URBAN LOGISTICS CAMPUSES OCCUPIER SPLIT BY INDUSTRY (% OF RENT) As at % of Retail & Urban As at % of Campus rent 31 March 2024 Logistics rent 31 March 2024 Next 4.6 Meta 12.6 Grocery & Other, 6% Walgreens (Boots) 4.3 Reed Smith 6.5 Conveni
Slide 54: Portfolio: Occupancy Cost Ratios
PORTFOLIO: Occupancy Cost Ratios BRITISH LAND OCCUPANCY COST RATIO 1 24% 20% 19.2% 35% Reduction 17.7% 50% Reduction 2.0% 0.9% 16.4% 16% 2.1% 14.7% 5.5% 5.5% 12.5% 2.1% 12.4% 12% 0.7% 4.5% 1.7% 9.8% 4.4% 3.8% 0.6% 8.9% 3.0% 0.6% 8% 3.2% 2.6% 11.3% 11.7% 9.8% 4% 8.0% 8.2% 7.7% 6.0% 5.7% 0% 2016 2019
Slide 55: Developments: Committed
DEVELOPMENTS: Committed COMPLETED & COMMITTED DEVELOPMENTS As at Sector BL Sq ft PC Calendar Current Cost to ERV Let & Gross Yield 31 March 2024 Share (100%) Year Value Come Under Offer on Cost COMPLETED % ‘000 £m £m1 £m2 £m4 %5 Norton Folgate Office 100 335 Q4 2023 364 40 25.7 10.9 5.5 3 Sheldon Sq
Slide 56: Developments: Near Term
DEVELOPMENTS: Near Term NEAR TERM DEVELOPMENT PIPELINE Sector BL Sq ft Earliest Current Cost to ERV Planning As at Share (100%) Start on Value Come Status 31 March 2024 Site % ‘000 Calendar year £m £m1 £m2 Near Term Pipeline 1 Triton Square Science & Technology 50 311 Q2 2024 190 51 16.7 Submitted T
Slide 57: Developments: Medium Term
DEVELOPMENTS: Medium Term MEDIUM TERM DEVELOPMENT PIPELINE As at 31 March 2024 Sector BL Sq ft Planning status Share (100%) % ‘000 Medium Term Pipeline Broadgate Tower Office 50 405 Submitted 1 Appold Street Office 50 397 Consented Euston Tower Office 100 529 Submitted 5 Kingdom Street Office 100 21
Slide 58: Developments: Future Spend
DEVELOPMENTS: Future Spend ESTIMATED FUTURE DEVELOPMENT SPEND AND CAPITALISED INTEREST As at 31 March 2024 Cost to Come £m PC calendar (excluding notional interest) – 6 months breakdown year Sep-24 Mar-25 Sep-25 Mar-26 Sep-26 Mar-27 Sep-27 Mar-28 Total Norton Folgate Q4 2023 34 6 - - - - - - 40 3 Sh
Slide 59: Balance Sheet: Debt Metrics
BALANCE SHEET: Debt Metrics DEBT METRICS Proportionally Consolidated 31 March 2024 31 March 2023 Loan to value (LTV) 37.3% 36.0% Net Debt to EBITDA 1 8.5x 8.4x Weighted average interest rate 3.4% 3.5% Interest cover 3.5x 3.4x Weighted average debt maturity 5.8 yrs 5.9 yrs Group 31 March 2024 31 Marc
Slide 60: Balance Sheet: Debt Financing
BALANCE SHEET: Debt Financing DEBT FINANCING – DIVERSE PROFILE £5.3BN GROSS DEBT AND FACILITIES (£3.4BN DRAWN)¹ 31 MARCH 2024 STRONG CREDIT METRICS – £1.9bn undrawn facilities and cash £0.4bn – No requirement to refinance until early 2027 – Interest rate on our debt fully hedged to March 2025, 86% h
Slide 61: Balance Sheet: Debt Maturity
BALANCE SHEET: Debt Maturity DEBT MATURITY £m 1200 Facilities Undrawn (Unsecured) Facilities Drawn (Unsecured) 1000 Term Loans (Unsecured) US Private Placements (Unsecured) 800 Sterling Bond (Unsecured) Debentures (Secured) JVs Bank Loans (Secured) 600 JVs Securitisation (Secured) 400 200 0 2025 202
Slide 62: Operating Cashflow Bridge
OPERATING CASHFLOW BRIDGE OPERATING CASH FLOW BRIDGE £m 47 (177) 77 (48) (6) 367 260 213 Cash tenant Distributions Fees and other Operating and Net finance costs Corporation Net cash inflow 1 FY24 Dividend 2 income from JVs income admin expenses tax from operating activities 1 Excludes £149m surrend
Slide 63: Income: Potential Future Income
INCOME: Potential Future Income ILLUSTRATIVE POTENTIAL FUTURE INCOME Annualised accounting rent (£’m): 26 (20) 35 63 24 2 591 461 487 +6% +21% Annualised Agreement for Committed Future committed Committed 1 Reversion, RPI 2 Development 3 Near term 3 Potential Accounting Rent lease rents developments
Slide 64: Capital Activity: Since Apr-19
£5.9bn CAPITAL ACTIVITY: Since Apr-19 Gross investment activity CAPITAL ACTIVITY since April 2019 Net Spend1 £m £121m £(964)m £507m £(233)m £49m 1,000 600 200 (200) (600) (1,000) (1,400) FY23 FY24 FY20 FY21 FY22 Sales Capital Investment Purchases Net Spend FULL YEAR RESULTS | 31 MARCH 2024 On a prop
Slide 65: Sustainability
SUSTAINABILITY OUR 2030 SUSTAINABILITY STRATEGY GREENER SPACES: THRIVING PLACES: DECARBONSING OUR CREATING A LONG-LASTING PORTFOLIO POSITIVE IMPACT 50% LOWER – £200m direct Social Value generated by 2030, enabling £100m of social value and £100m of economic value embodied carbon intensity at our off
Slide 66: Sustainability Metrics
SUSTAINABILITY SUSTAINABILITY METRICS DEVELOPMENTS OPERATIONAL – EPC RATINGS Embodied carbon intensity of the development pipeline % of total ERV kg CO2e per sqm GIA EPC2 Rating Offices Retail Portfolio Office developments A 10 5 8 Completed 408 B 54 46 50 Committed1 628 Near term & medium term 624
Slide 67: Sustainability Performance
SUSTAINABILITY SUSTAINABILITY PERFORMANCE Global Real Estate CDP EPRA Sustainability Sustainability Benchmark1 Science Based Target 2023: A- Reporting Awards 2023: 5-star (Development) Approval in 2021 2022: B 2023: Gold for 12th year 5-star (Standing Investments) MSCI ESG Ratings2 Social Mobility I
Slide 68: Campus Maps: Broadgate
CAMPUS MAPS: Broadgate BROADGATE CAMPUS FULL YEAR RESULTS | 31 MARCH 2024 PG.68
Slide 69: Campus Maps: Paddington
CAMPUS MAPS: Paddington PADDINGTON CENTRAL CAMPUS FULL YEAR RESULTS | 31 MARCH 2024 PG.69
Slide 70: Campus Maps: Regents Place
CAMPUS MAPS: Regents Place REGENT’S PLACE CAMPUS FULL YEAR RESULTS | 31 MARCH 2024 PG.70
Slide 71: Campus Maps: Canada Water
CAMPUS MAPS: Canada Water CANADA WATER CAMPUS FULL YEAR RESULTS | 31 MARCH 2024 PG.71
Slide 72: Disclaimer
DISCLAIMER The information contained in this presentation has been extracted largely from the Full Year Results Announcement for the full year ended 31 March 2024. For the purpose of this document, references to "presentation" shall be deemed to include this document, the oral briefing provided by B