British Land Company Plc · LSE:BLND
British Land — H1 FY2021 Earnings Presentation
91 slides from British Land's earnings presentation, Nov 18, 2020
Slide 1: Half Year Results Presentation
Half Year Results Presentation Six months to 30 Sept 2020
Slide 2: Key strengths of our business
Key strengths of our business • High quality assets – Supported by a strong balance sheet • Clear strategy – Mixed use focus a clear differentiator • Best in class operational capabilities – In-house property management – Placemaking skills • Focus on the customer – Use of data central to our custom
Slide 3: Financial Results
Financial Results Simon Carter 100 Liverpool Street
Slide 4: Results Overview
Results Overview 10.5p 693p £ 10.3bn Underlying earnings EPRA Net Tangible Assets Portfolio valuation per share per share -7.3% vs March 20 -34.8% vs Sep 19 -10.3% vs Mar 20 (Retail -14.9%, Offices -3.1%) 35.7% £ 1.0bn 8.4p Loan to value Undrawn facilities and cash Dividend per share Incl: +270bps v
Slide 5: Underlying earnings per share
Underlying earnings per share (0.6p) (0.2p) 0.2p 0.2p (5.0p) Financing £5m Admin £3m 16.3p 0.8p (1.0p) 16.1p 15.9 10.5p HY 2020 Net divestment Development Share buyback Excl. impact of Like for like Provisions for rent Cost savings Tax charge HY 2021 capital activity income incl. CVAs receivables, &
Slide 6: Net rental income
Net rental income 1 Offices +4.0%1 £m Retail –10.3%1 (3) (6) (31) (13) 243 (2) 3 191 HY 2020 Net divestment Like for like incl. Provisions for Provisions for Provisions for Developments and HY 2021 CVAs and admins outstanding rents deferred rents tenant incentives other and service charge income 1 L
Slide 7: September rent collection
September rent collection Rent due between 29 September and 10 November As at 10th November Offices Retail1 Total Received 97% 62% 77% Rent deferrals - - - Rent forgiven - 1% - Customer paid monthly 1% 2% 2% Outstanding 2% 35% 21% 100% 100% 100% Total £48m £64m £112m Collection of adjusted billing2
Slide 8: Rent & service charge receivables
Rent & service charge receivables Debtor Provision % provided HY 21 Receivable Balance sheet category Description balance balance for impact Less than 90 days Trade debtor £48m £12m 25% £12m We take a systematic approach to 90 – 190 days Trade debtor £41m £18m 44% £15m provisioning based on ageing a
Slide 9: Income statement
Income statement 6 months to 30 September H1 2019 H1 2020 Change % Net rental income (£m) 243 191 (21.4%) Fees & other income (£m) 7 6 (14.3%) Administrative expenses (£m) (41) (38) (7.3%) Net finance costs (£m) (57) (52) (8.8%) Underlying Profit (£m) 152 107 (29.6%) Underlying tax charge - (9) - Un
Slide 10: Dividend policy
Dividend policy 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 strategic activity and trading conditions flexibility • REIT compliant 2021 interim • 8.4p dividend per s
Slide 11: EPRA Net Tangible Assets
EPRA Net Tangible Assets (91p) 11p 2p (2p) 773p 693p Mar 20 Valuation performance Underlying Property disposals Other Sep 20 Profit 11
Slide 12: Strength of debt metrics
Strength of debt metrics 31 March 2020 30 September 2020 Undrawn Facilities and Cash £1.3bn £1.0bn No requirement to refinance until: 2024 2024 Loan to value (LTV)1 34.0% 35.7% Weighted Average Interest Rate1 2.5% 2.5% Interest Cover1 3.8x 3.1x Weighted Average Drawn Debt Maturity1 7.5yrs 7.8yrs Sen
Slide 13: Operations & markets
Operations & markets Darren Richards Broadgate
Slide 14: Valuation performance
Valuation performance Valuation Valuation Yield ERV £m movement movement movement Total 10,315 (7.3%) +17bps -4.9% Offices 6,651 (3.1%) +8bps +0.7% Retail 3,175 (14.9%) +33bps -10.9% Retail Parks 1,506 (13.1%) +26bps -11.6% Shopping Centres 1,248 (18.1%) +41bps -11.9% Residential 135 (9.1%) Canada W
Slide 15: Offices leasing
Offices leasing • Leasing volumes lower, reflecting our high occupancy and a subdued market – 130,000 sq ft offices leasing – Includes 65,000 sq ft over one year, 9% ahead of ERV1 – 95% occupancy on our offices portfolio – Developments well let • Encouraging pipeline despite uncertainty – Under offe
Slide 16: Outlook for London offices
Outlook for London offices • Central London market subdued Q3 2020 Central London Development pipeline – Take up 65% below long term average Completed in the period U/C Pre-let m sq ft Pipeline Pre-let – Vacancy up 210 bps to 6.5% U/C – Speculative Potential Speculative – Second hand space now 74% o
Slide 17: Resilient Offices portfolio
Resilient Offices portfolio • Our portfolio benefits from a diverse mix of high quality office occupiers – Majority are global technology, financial institutions, professional and corporate – Rent collection high at 97% for September quarter • Campuses are 82% of our offices portfolio; a unique and
Slide 18: Retail leasing & outlook
Retail leasing & outlook 96% -26.1% Retail occupancy Retail FY20 Working with high quality occupiers valuation movement • Pragmatic approach focused on maximising occupancy – Accepting lower rents to generate sustainable cash flow • 439,000 sq ft retail leasing – 161,000 sq ft over one year; 11% bel
Slide 19: Smart approach and relative resilience in Retail
Smart approach and relative resilience in Retail • Rent collection ahead of market at 62% for September – 69% for June quarter; 46%1 for March quarter – Concessions generally in exchange for lease re- gears, lease extensions or new space – Rent collected from all of our top 10 customers • Leasing st
Slide 20: BL footfall and sales performance vs benchmark
BL footfall and sales performance vs benchmark Outperformance for the period to Sept 2020 Outperformance for the period Sept 2020 Retail Parks +22% Retail Parks +14% Portfolio +17% Portfolio +14% Footfall vs benchmark LFL sales vs benchmark % YoY % YoY Jan Feb Mar Apr May Jun Jul Aug Sep Oct Jan Feb
Slide 21: Out of town Retail highly attractive today and going forward
Out of town Retail highly attractive today and going forward • Relative resilience during Covid – Open air – Supports mission based shopping – Reflected in strong operational fundamentals – Preferred by retailers, including Next and M&S • Well connected and affordable to retailers – Occupancy cost r
Slide 22: Our proactive approach to leasing
Our proactive approach to leasing Kingston Centre, Milton Keynes Giltbrook, Nottingham • 50,000 sq ft space returned across three units • 28,000 sq ft space returned – Space substantially reconfigured – Reconfigured units and signed two high quality – Re-let during the pandemic to high quality occup
Slide 23: Strategy and outlook
Strategy and outlook Simon Carter Canada Water
Slide 24: Our competitive edge
Our competitive edge Best in Partner of class Innovation choice platform Unique Attractive Long term mixed use development commitment campuses pipeline to ESG When we deploy these, we deliver the best value for our shareholders 24
Slide 25: Best in class, fully integrated platform delivering
Best in class, fully integrated platform delivering Development Active asset management £1.8bn profit in 10 years Repositioning Paddington Retail delivering in tough markets • £470m acquisition in 2013 • 95% occupancy • Developed 4 Kingdom Street & • Operational outperformance: footfall +21% investe
Slide 26: Proven ability to innovate at pace
Proven ability to innovate at pace Storey Clarges Broadgate • Early mover in flex space • Opportunistic purchase • Successful repositioning • Built business in 18 months • Built on existing skills to post GFC deliver super prime – Opened up to vibrant local • Clearly differentiated model residential
Slide 27: Partner of choice for institutional capital
Strength of our capabilities makes us the partner of choice for institutional capital Provides access to new opportunities, enhances returns, mitigates risk and supports investment in our platform 27
Slide 28: Our priorities
Our priorities Realising the Progressing 1 potential of 2 value accretive mixed use development Addressing the 3 challenges in 4 Active capital recycling retail We will focus on recycling capital out of retail and standalone offices and into value accretive development and our mixed use campuses 28
Slide 29: Realising the potential of mixed use
Realising the potential of mixed use • Continued focus on mixed use – Complements our skill set – Opportunities to tilt our offer to areas of growth • Replicating the success of Broadgate • Opportunities in life sciences at Regent’s Place – Benefits from location in the Knowledge Quarter • Unique op
Slide 30: Progressing value accretive development
Progressing value accretive development • 8m sq ft of development opportunities – Focused on our campuses and Canada Water – Sourced at low cost – Majority are income generating • Commitment to Norton Folgate – 336,000 sq ft, Shoreditch development, adjacent to Broadgate campus – Sustainable approac
Slide 31: Building momentum at Canada Water
Building momentum at Canada Water • Achieved planning permission in May – Expect to draw the headlease by the end of 2020 Arizona State University Kings College London – Commenced enabling works for phase 1 UNSW Sydney – In a position to place build contract in Spring 2021 – Successfully overcame Ju
Slide 32: Addressing the challenges in Retail
Addressing the challenges in Retail Kingston Centre, • Combination of active asset management Milton Keynes and capital recycling now yielding 8.0% • Focused on delivering sustainable rents – Accepting lower rents where it makes sense – Keeping our assets full – Delivering security of cash flow – Un
Slide 33: Exploring opportunities in alternative and additional uses
Exploring opportunities in alternative and additional uses • Progressing alternative and additional Alternative use potential, indicative view use opportunities for Retail Sq ft (m) – Focused on what is viable today 2.5 – Option to deliver ourselves or in partnership – Progressing planning underpins
Slide 34: Active capital recycling
Active capital recycling • Active capital recycling to crystallise value and capitalise on opportunities – £456m retail asset sales in the period – Opportunities to realise value from standalone offices • Recycling part of proceeds into Norton Folgate • Maintaining our strong balance sheet and finan
Slide 35: Offices market outlook
Offices market outlook • Occupational markets tough short term – Businesses will postpone decisions reflecting macro uncertainty 2m sq ft 6.5% Q2-3 take up, 65% vacancy in central – Supply of grey space increasing below average1 London, +210 bps1 – Market forecasts for prime rents to fall 5-10%, ove
Slide 36: Retail market outlook
Retail market outlook • Occupational markets will remain challenging – Rents will continue to fall – 10-15% further decline expected – Expect to stabilise first on retail parks • Investment markets will replicate this pattern – Appetite returning for retail parks with sustainable cash flows – Will t
Slide 37: Our priorities for British Land
Our priorities for British Land Realising the Progressing value Addressing the potential of mixed accretive challenges in Active capital use development retail recycling Tilting our campuses Progressing opportunities Maintaining high Crystallising value from towards areas of growth: which enhance ou
Slide 38: Appendices
Appendices
Slide 39: A diverse, high quality portfolio £10.3bn
A diverse, high quality portfolio £10.3bn (BL share) Shopping Centres (12%) London Campuses (53%) 80% London & Retail Parks (15%) South East Standalone offices (11%) Other Retail (4%) Residential & Canada Water (5%) 39
Slide 40: Storey roll out
Storey roll out are | Regent's Place 2 Kingdom Street 4 Kingdom Street 338 Euston Roac n Appold S 1 Finsbury Avenue 100 Liverpool Street DE Whitechapel O Woolwich International House
Slide 41: June rent collection and deferrals
June rent collection and deferrals Rent due between 24 June and 28 September As at 10th November Offices Retail1 Total Received 98% 69% 81% Rent deferrals 1% 4% 2% Rent forgiven - 6% 4% Customer paid monthly - - - Outstanding 1% 21% 13% 100% 100% 100% Total £57m £80m £137m Collection of adjusted bil
Slide 42: March rent collection and deferrals
March rent collection and deferrals Rent due between 2 March and 23 June As at 10th November Offices Retail1 Total Received 98% 46% 68% Rent deferrals 1% 28% 17% Rent forgiven 1% 12% 7% Customer paid monthly - - - Outstanding - 14% 8% 100% 100% 100% Total £58m £77m £135m Collection of adjusted billi
Slide 43: BL footfall performance vs benchmark
BL footfall performance vs benchmark +1700bps Outperformance for Jan-10 = 100 6m to Sep 2020 120.00 100.00 BL Index 80.00 60.00 Tyco (formerly Experian) Index 40.00 20.00 - British Land UK Market (ShopperTrak UK National Index) 43
Slide 44: Major retail property holdings
Major retail property holdings As at 30 September 2020 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 77 95.3 4.5 2 Ealing Broadway 100 540 14 91.0 3.4 3 Glasgow Fort 78 510 19 97.8 5.5 4 Drake's Circus, Plymouth 100 1,190 16 90.9
Slide 45: Broadgate Campus
Broadgate Campus 81% of Broadgate completed and committed developments pre-let 45
Slide 46: Paddington Central Campus
Paddington Central Campus 46
Slide 47: Regent's Place Campus
Regent’s Place Campus DRUMMOND STREET © BROCK STREET EUSTON STATION TRITON STREET REGENTS PLACE PLAZA as Trion sauae REGENTS — = ©} ©) © = @ 20 Triton Street @) 1 Osnaburgh Street @ 1-8 Longford Street ©) UKPN Substation ® 1 Triton Square © 10Brock Street @) 20Brock Street 15-31 Hampstead Road ©) 30
Slide 48: Top occupiers & occupier split by industry
Top 20 occupiers & occupier split by industry Retail Top Occupiers Offices Top Occupiers Occupier Split by Industry (%) As at % of As at % of 30 September 2020 Retail 30 September 2020 Office Rent Rent Other 9% Fashion & Tesco1 7.8 Facebook 7.4 Home & DIY 4% Beauty 18% Next 5.0 Government 6.2 Grocer
Slide 49: Capital Activity
Capital Activity Since 1 April 2020 Offices Retail Residential Canada Water Total £m £m £m £m £m Purchases - - - - - Sales1 - (456) - - (456) Development Spend 57 2 - 11 70 Capital Spend 21 18 - - 39 Net Investment 78 (436) - 11 (347) Gross Investment 78 476 - 11 565 On a proportionally consolidated
Slide 50: Capital Activity £3.3bn
Capital Activity £3.3bn Gross investment activity since April 2018 Net Spend1 £m (£502m) (£739m) (£753m) £121m £(347)m 1,600 1,200 800 400 - (400) (800) (1,200) (1,600) (2,000) FY17 FY18 FY19 FY20 HY21 Sales Capital Investment Purchases Net Spend 1 Previous periods have been restated to exclude tran
Slide 51: Sales
Sales Since 1 April 2020 Sector Price Price Annual (100%) (BL Share) Passing Rent £m £m £m1 Completed Portfolio of Sainsbury’s stores2 Retail 102 102 - Tesco, Brislington Retail 42 42 3 B&Qs, Various Retail 100 100 8 Tescos, Milton Keynes & Peterborough3 Retail 149 149 9 Beaumont Leys (part-sale)3 R
Slide 52: Clarges Residential Unit Sales
Clarges Residential Unit Sales Number of units £m Completed in FY18 2 24 Completed in FY19 23 335 Completed in FY20 8 86 Total Completed 33 445 Units remaining (under offer) 1 3 Total 34 448 52
Slide 53: Illustrative future income profile breakdown (cash basis)
Illustrative future income profile breakdown (cash basis) For the year to 31 March 2021 2022 2023 2024 2025 Total Accounting Basis As at 30 September 2020 £m £m £m £m £m £m Current Passing Rent 485 4 480 Contracted uplifts 12 24 14 6 1 57 Pre-lets of Committed Developments1 - 22 - - - 22 19 Contract
Slide 54: Gross rental income
Gross rental income1 Accounting Basis £m 6 months to 30 September 2020 Annualised as at 30 September 2020 Group JVs & Funds Total Group JVs & Funds Total West End 77 1 78 140 2 142 City 8 39 47 6 68 74 Offices 85 40 125 146 70 216 Retail Parks 46 27 73 76 52 128 Shopping Centre 27 24 51 54 44 98 Sup
Slide 55: Underlying Profit Bridge
Underlying Profit Bridge £m (2) 2 (6) (44) 152 150 150 152 (2) 7 146 102 107 100 100 HY 2020 Net divestment Developments Excl. impact of Like for like incl. Provisions for Tenant Cost savings HY 2021 capital activity CVAs and trade debtors incentive admins and deferred provisions rent 55
Slide 56: Administrative expenses
Administrative expenses 6 months to 30 September 2019 2020 £m £m Personnel costs 26 18 Share scheme costs (1) 3 Other administrative expenses 19 20 Total 44 41 Capitalised costs (3) (3) Total administrative expenses 41 38 On a proportionally consolidated basis including the Group's share of Joint ve
Slide 57: CVAs and Administrations
CVAs and Administrations Data since April 2017 Contracted Number Annualised contracted rent lost by Quarter (£m) % split of CVA - stores closing rent reduction of Units £m Stores 14 CVA - reduced rents Number of units in Admins - stores closing c.3,000 portfolio 12 Admins - reduced rent Stores under
Slide 58: Operating costs metric
Operating costs metric 6 months to 30 September 2019 2020 £m £m Property operating expenses 32 76 Administrative expenses 41 39 Net fees and other income (7) (6) Ground rent costs and operating expenses de facto included in rents (8) (10) EPRA Costs (including direct vacancy costs) 58 99 Gross renta
Slide 59: Reconciliation of Underlying Profit
Reconciliation of Underlying Profit 6 months to 30 September 2019 2020 £m £m IFRS loss after tax attributable to shareholders (404) (730) Net valuation loss 576 875 Profit on disposal of investment and trading properties (21) (19) Capital financing costs 43 11 Non-controlling interests (43) (36) Tax
Slide 60: Number of shares
Number of shares As at 31 Mar 2020 30 Sep 2020 (m) (m) IFRS Basic Weighted average1 934 927 IFRS Diluted Weighted average2 934 927 Underlying/EPRA diluted Weighted average3 937 930 Year/Period end4 932 933 1 For use in IFRS basic earnings per share. 2 For use in IFRS diluted earnings per share. A lo
Slide 61: EPRA balance sheet
EPRA balance sheet 31 March 2020 Group JVs & Funds 30 Sept 2020 Total properties (£m) 11,177 7,262 3,066 10,328 Adjusted net debt (£m) (3,854) (2,837) (859) (3,696) Other net liabilities (£m) (121) (141) (26) (167) EPRA Net Tangible Assets (£m) 7,202 4,284 2,181 6,465 Loan to value (LTV)1 34.0% 35.7
Slide 62: EPRA Net Asset Value Metrics
EPRA Net Asset Value Metrics 31 March 2020 30 September 2020 EPRA NTA1 EPRA NDV2 EPRA NRV3 EPRA NTA1 EPRA NDV2 EPRA NRV3 IFRS Net Assets 7,147 7,147 7,147 6,373 6,373 6,373 Deferred tax arising on revaluation movements 6 6 6 6 6 6 Mark to market on derivatives and related debt 141 - 141 148 - 148 ad
Slide 63: Reconciliation of new EPRA net asset metrics to previous metrics
Reconciliation of new EPRA net asset valuation metrics to previous metrics 31 March 2020 30 September 2020 £m £m EPRA NRV 7,872 7,082 Purchasers’ costs (659) (605) EPRA NAV 7,213 6,477 Per share measure 774p 694p EPRA NTA 7,202 6,465 Intangibles 11 12 EPRA NAV 7,213 6,477 Per share measure 774p 694p
Slide 64: Gross and net debt reconciliation
Gross and net debt reconciliation As at 30 Sept 2020 Group JVs & Funds Less non- Total £m £m controlling £m interests £m Gross Debt (principal) (3,128) (971) 113 (3,986) IFRS adjustments: Issue costs and premia 11 2 - 13 Fair value hedge adjustments (198) - - (198) IFRS gross debt (3,315) (969) 113
Slide 65: Loan to value (LTV)
Loan to value (LTV) As at Valuation Acquisitions Capital Disposals Operating Other As at 31 March movement spend cashflow 30 Sept 2020 2020 £m £m Total properties 11,157 (842) - 119 (132) - 13 10,315 Other 131 1 - 2 (109) - (1) 24 investments LTV assets 11,288 (841) - 121 (241) - 12 10,339 Adjusted
Slide 66: Debt metrics
Debt metrics Proportionally Consolidated 31 Mar 2020 30 Sept 2020 Loan to value (LTV) 34.0% 35.7% Weighted average interest rate 2.5% 2.5% Interest cover 3.8x 3.1x Weighted average maturity of drawn debt 7.5yrs 7.8yrs Group 31 Mar 2020 30 Sept 2020 Loan to value (LTV) 28.9% 30.2% Available undrawn f
Slide 67: Debt maturity
Debt maturity £m 1,200 Bank RCFs Undrawn (Unsecured) 1,000 Bank RCFs Drawn (Unsecured) Debenture & Loan Notes (Secured) Sterling Bond (Unsecured) 800 US Private Placements (Unsecured) Funds – Bank Drawn (Secured) JVs – Securitisations (Secured) 600 400 200 - 2021 2022 2023 2024 2025 2026 2027 2028 2
Slide 68: Debt financing – diverse profile
Debt financing – diverse profile • Extended £650m of committed bank facilities by 1 year £4.0bn Drawn Debt1 (30 September 2020) to 2025 • No requirement to refinance until 2024 £0.3bn Bank RCFs Drawn • LTV increased by 170bps to 35.7%2 £1.0bn US Private Placements Sterling Bond – Valuation declines
Slide 69: Portfolio valuation by sector
Portfolio valuation by sector As at 30 September 2020 Group JVs & Funds Total Change %1 £m £m £m % £m West End 4,071 45 4,116 (2.5) (105) City 297 2,238 2,535 (4.0) (106) Offices 4,368 2,283 6,651 (3.1) (211) Retail Parks 898 608 1,506 (13.1) (243) Shopping Centre 634 614 1,248 (18.1) (276) Supersto
Slide 70: Valuation movement – Offices
Valuation movement – Offices 6 months to 30 Sep 2020 Valuation Change Change Yield movement ERV movement £m £m %1 Bps2 %2 West End 4,116 (105) (2.5) +11 2.2 City 2,535 (106) (4.0) +3 (1.7) Offices 6,651 (211) (3.1) +8 0.7 Campuses represent 82% of the Offices portfolio 1 Valuation movement during th
Slide 71: Valuation movement – Retail
Valuation movement – Retail 6 months to 30 Sep 2020 Valuation Change Change Yield movement ERV movement £m £m %1 Bps2 %2 Retail Parks 1,506 (243) (13.1) +26 (11.6) Shopping Centre 1,248 (276) (18.1) +41 (11.9) Total 2,754 (519) (15.4) +33 (11.7) Other 421 (60) (11.6) +37 (4.2) Retail 3,175 (579) (14
Slide 72: Retail Valuation Movements
-14.9% Retail Valuation Movements Retail HY21 valuation Sep ’20 movement Valuations (£’m) 1,400 1,200 1,000 800 600 400 200 - Greater than 0% 0% to -5% -5 to -10% -10 to -15% -15 to -20% -20 to -25% More than -25% Shopping Centres Retail Parks Superstores Leisure High Street Dept Stores % Valuation
Slide 73: Portfolio net yields
Portfolio net yields1,2 As at 30 September 2020 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 3.5 4.1 4.2 4.4 11 5.0 2.2 City 2.9 3.8 3.8
Slide 74: Portfolio weighting
Portfolio weighting As at 30 September 2020 2019 2020 2020 % % £m West End 34.7 39.9 4,116 City 20.2 24.6 2,535 Offices 54.9 64.5 6,651 Retail Parks 19.5 14.6 1,506 Shopping Centre 16.0 12.1 1,248 Superstores 1.1 0.5 46 Department Stores 0.5 0.2 22 High Street 1.3 1.1 116 Leisure 2.5 2.3 237 Retail
Slide 75: Lease length and occupancy
Lease length and occupancy As at 30 September 2020 Average Lease Length (yrs) Occupancy Rate (%) To Expiry To Break EPRA Occupancy Occupancy1,2,3 West End 6.0 4.6 96.3 96.4 City 8.6 7.2 82.3 92.2 Offices 7.0 5.6 90.6 94.7 Retail Parks 6.4 5.0 93.8 96.1 Shopping Centre 6.1 4.8 93.0 94.3 Superstores 7
Slide 76: Annualised rent & estimated rental value (ERV)
Annualised rent & estimated rental value (ERV) As at 30 September 2020 Annualised Rents ERV Average Rent (Valuation Basis) £m1 £m (£psf) Group JVs & Funds Total Total Contracted2 ERV West End3 134 3 137 195 62.9 71.5 3 City 7 70 77 135 53.8 58.6 3 Offices 141 73 214 330 59.2 65.9 Retail Parks 79 55
Slide 77: Rent subject to open market rent review
Rent subject to open market rent review For the year to 31 March 2021 2022 2023 2024 2025 2021–23 2021–25 As at 30 September 2020 £m £m £m £m £m £m £m West End 1 8 23 7 15 32 54 City 9 1 1 15 11 11 37 Offices 10 9 24 22 26 43 91 Retail Parks 8 10 13 6 6 31 43 Shopping Centre 3 6 12 7 4 21 32 Superst
Slide 78: Rent subject to lease break or expiry
Rent subject to lease break or expiry For the year to 31 March 2021 2022 2023 2024 2025 2021-23 2021-25 As at 30 September 2020 £m £m £m £m £m £m £m West End 8 30 25 14 15 63 92 City 5 6 3 14 6 14 35 Offices 13 36 28 28 21 77 126 Retail Parks 12 13 14 23 12 39 74 Shopping Centre 10 15 14 10 8 39 57
Slide 79: Contracted rental increases (cash flow basis)
Contracted rental increases (cash flow basis) For the year to 31 March 2021 2022 2023 2024 2025 2021-23 2021-25 As at 30 September 2020 £m £m £m £m £m £m £m Expiry of rent free periods 9 24 11 5 - 44 49 Fixed uplifts (EPRA basis) - - 1 1 - 1 2 Fixed & minimum uplifts - 1 2 - 1 3 4 Total 9 25 14 6 1
Slide 80: Total Property Return (as calculated by MSCI)
Total Property Return (as calculated by MSCI) 6 months to 30 September 2020 Offices Retail Total % British Land MSCI British Land MSCI British Land MSCI Capital Return (3.0) (2.4) (15.0) (8.4) (7.3) (3.7) – ERV Growth 0.7 (0.5) (10.9) (5.4) (4.9) (2.0) – Yield Movement1 8 bps 9 bps 33 bps 26 bps 17
Slide 81: De-risked development pipeline focused on campuses
De-risked development pipeline focused on campuses 2-3 Finsbury Avenue 1 Triton Square Aldgate Place, 563,000 sq ft 365,000 sq ft Phase 2 Completion Q2 2021 143,000 sq ft 100 Liverpool Street Norton Folgate 520,000 sq ft 336,000 sq ft 5 Kingdom Street Eden Walk, Kingston 1 Broadgate PC’d Q3 2020 Com
Slide 82: Recently Completed & Committed developments
Recently Completed & Committed developments As at Sector BL Sq PC Current Cost to ERV Let 30 September 2020 Share ft Calendar Value Come Year % '000 £m £m1 £m2 £m 100 Liverpool Street Office 50 520 Q3 2020 400 - 19.3 15.5 Total Completed in the Year 520 400 - 19.3 15.5 1 Triton Square3 Office 100 36
Slide 83: Near term development pipeline
Near term development pipeline As at Sector BL Sq ft Earliest Current Cost to ERV Let & Planning 30 September 2020 Share Start on Value Come Under Status Site Offer % '000 Calendar £m £m1 £m2 £m Year Near Term Pipeline 1 Broadgate Office 50 539 Q2 2021 91 224 20.0 - Consented Aldgate Place, Phase 2
Slide 84: Medium term development pipeline
Medium term development pipeline As at 30 September 2020 Sector BL Share Sq ft Planning status % '000 Medium term Pipeline 5 Kingdom Street Office 100 438 Consented 2-3 Finsbury Avenue Office 50 563 Consented Eden Walk Retail & Residential Mixed Use 50 452 Consented Ealing – 10-40 The Broadway Mixed
Slide 85: Estimated future development spend and capitalised interest
Estimated future development spend and capitalised interest As at 30 September 2020 PC Cost to Come £m Calendar (excluding notional interest) – 6 months breakdown Year Mar- Sep-21 Mar-22 Sep-22 Mar-23 Sep-23 Mar-24 Sep-24 Total 21 100 Liverpool Street Q3 2020 - - - - - - - - - Total Completed - - -
Slide 86: Canada Water – Illustrative Scheme
Canada Water – Illustrative Scheme First Masterplan detailed plots K1 Secured planning for our 53 acre scheme L2 A1 H2 L1 Total NIA M1 H3 5.0m 0.6m H1 (sq ft) A2 D1 D2 Commercial 2.1m 0.3m (sq ft) Retail & Leisure 0.7m 0.1m (sq ft) New Homes 3,000 265 (units) Buildings highlighted above reflect indi
Slide 87: Canada Water: key milestones and timeline
Canada Water: key milestones and timeline Acquisition of 50% of Surrey MDA signed with Southwark Council Quays shopping centre Planning application submitted Remaining 50% of Surrey Quays 23 acres shopping centre acquired 23 acres Resolution to grant planning Conditional agreement Outline masterplan
Slide 88: 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 5.2% 4 3.2% 2 0 1985 1990 1995 2000 2005 2010 2015 Q3 2020 Source: CBRE (historic) 88
Slide 89: 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 C02e • Using our Local Charter to focus on key issues per m2 by 2030 • Partnering with local stakeholde
Slide 90: Sustainability Indices Performance
Sustainability Indices Performance HY 2020/21 performance Other benchmarks and awards EPRA Sustainability Carbon Disclosure Project Global Real Estate Reporting Awards 2019: B Sustainability Benchmark 2020: Gold for 9th year 2018: A- 2019: Green star for 10th year Social Mobility Index MSCI ESG Rati
Slide 91: 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 2020. For the purpose of this document, references to "presentation" shall be deemed to include this document, the oral briefing provided b
British Land Company — H1 FY2021 Earnings Presentation on 6ix