Londonmetric Property Plc · LSE:LMP

Londonmetric Property — Metric Property Investments — H1 2011 Earnings Presentation

32 slides from Londonmetric Property's earnings presentation, Nov 17, 2011

  1. Slide 1: Half-year results to September 2011

    Half-year results To September 2011 17 November 2011

  2. Slide 2: Business Highlights

    Business Highlights  Valuation uplift £5.0m (+2.2%) or £3.4m (+1.5%) net of acquisition costs – Total return 5.7% vs IPD Retail at 3.3%  Rental income uplift £1.2m (+9.8%) – Underlying rental income up 6.1% over previous passing rent  Launch of £150m JV with USS to form MIPP – Target portfolio yi

  3. Slide 3: Metric Income Plus Partnership (MIPP)

    Metric Income Plus Partnership (MIPP)  £150m JV launched with USS – Lot sizes £2 – 20m – Target portfolio yield c. > 7%  Equity investment: Metric £25m, USS £50m – Target LTV: 50% across portfolio  MIPP contracted to acquire Inverness and Swindon from Metric for £19.9m – Inverness: £9.7m, NIY 6.4

  4. Slide 4: Delivering on Our Strategy to Create Value

    Delivering on Our Strategy to Create Value 4

  5. Slide 5: Property Portfolio

    Property Portfolio WAULT – Weighted average unexpired lease term of investment portfolio12.1 years to expiry (11.4 years to first break) MIPP - Metric has a one-third interest in the JV

  6. Slide 6: Portfolio Metrics

    Portfolio Metrics  c. 1 million sq ft across retail park and foodstore subsectors  Investment portfolio – high occupancy at 97%, WAULT of 12.1 years1 – 47% of area benefits from Open A1 planning consent  Low average passing rent £12.60 psf (£14.20 psf on investments)  Annualised rent roll £13.1m

  7. Slide 7: Financial Results (as at 30 September 2011)

    Financial Results (as at 30 September 2011) EPRA Profit 30 Sep 2011 30 Sep 2010 Income Statement (£m) (£m)  Rental income reflects majority of assets held Gross rental income 5.2 0.7 for full six months Surrender premium 1.3 --  Annualised current rent roll £13.1m Net rental income 6.5 0.7  Surre

  8. Slide 8: Financial Results (cont'd) (as at 30 September 2011)

    Financial Results (cont’d) (as at 30 September 2011) Balance Sheet Balance Sheet 30 Sep 31 Mar 2011 2011  Additions totalling £32.6m Portfolio value (£m) 228.9 192.4  Commitments at period-end of £10m (incl. EPRA NAV per share (p) 104 101 £4.2m conditional) LTV (%) 10 nil  Net debt £23m; LTV 10%

  9. Slide 9: Financing

    Financing Firepower (£m) Metric MIPP Firepower Committed facilities1 91.7 -  £114.7m committed debt facilities, £91.7m Equity into JV (25.0) 75.0 Sale of properties to JV 20.6 (20.6) available Capital commitments (18.0) -  New £30m extension to RBS Earmarked for developments (34.5) -  Group firep

  10. Slide 10: Valuation: +2.2% or £5.0m on underlying property values

    (1) Valuation: +2.2% or £5.0m on underlying property values 88% from management actions (1) Underlying property value: £228.9 million

  11. Slide 11: Asset Management – It's all about self help

    Asset Management – It’s all about self help  9 occupier transactions with 8 retailers across 5 properties  5 new lettings across 83,000 sq ft: DFS, Family Bargains, B&M Retail, Jollyes (post period-end)  2 lease variations across 47,700 sq ft: Dunelm (15 years), B&Q (16 years)  2 rent reviews ac

  12. Slide 12: Congleton Case Study

    Congleton Case Study  Acquired Dec 2010 for £14.9m (delayed completion to Jun 2011)  72,600 sq ft of open A1 planning consent , average rent £14.75 psf at acquisition  Asset management initiatives:  Planning received for 8,000 sq ft new unit  Carpetright surrendered (£13 psf) re-let to Boots (£

  13. Slide 13: Congleton Retail Park, South Manchester

    Congleton Retail Park, South Manchester

  14. Slide 14: Bedford Case Study

    Bedford Case Study  Acquired Nov 2010 for £9.2m  Restricted consent, average rent £9.40 psf at acquisition  Asset management initiatives:  Dunelm lease re-geared on new 15-year lease. Uplift from £9.60 psf to £13.25 psf  Surrender premium received from Focus guarantor £1.25m  Focus unit (£11 p

  15. Slide 15: Alban Retail Park, Bedford

    Alban Retail Park, Bedford PAMETRIC

  16. Slide 16: Development Status Update

    Development Status Update  St Mary’s Road, Sheffield  Planning permission granted for 28,000 sq ft  Agreement for lease with DFS for 20,000 – on site Nov 2011  Longford Island, Cannock (post period-end completion)  Planning permission granted for 24,700 sq ft  Agreement for lease with DFS to t

  17. Slide 17: Tindale Crescent, Bishop Auckland – Before

    Tindale Crescent, Bishop Auckland – Before 17

  18. Slide 18: Tindale Crescent, Bishop Auckland – After

    Tindale Crescent, Bishop Auckland – After 18

  19. Slide 19: Development Status Update

    Development Status Update  St Mary’s Road, Sheffield  Planning permission granted for 28,000 sq ft  Agreement for lease with DFS for 20,000 sq ft – on site Nov 2011  Longford Island, Cannock (post period-end completion)  Planning permission granted for 24,700 sq ft  Agreement for lease with DF

  20. Slide 20: Kirkstall Bridge, Leeds – Before

    Kirkstall Bridge, Leeds – Before 20

  21. Slide 21: Kirkstall Bridge, Leeds – After

    Kirkstall Bridge, Leeds – After 21

  22. Slide 22: Kirkstall Bridge, Leeds – After

    Kirkstall Bridge, Leeds – After 22

  23. Slide 23: Market Outlook

    Market Outlook  Economic uncertainty is affecting the real estate market Financing will be harder and more expensive  Vendor refinancing pressures are creating more opportunities – Banks starting to unload assets  Consumer expenditure is under real pressure – Challenging for most retailers but st

  24. Slide 24: Growing Structurally Challenging

    Growing Structurally Challenging 24

  25. Slide 25: Prospects

    Prospects  Future performance driven by ‘management induced’ income growth  Firepower: Metric c. £90m, MIPP c. £130m  Deploy capital into accretive: – Investments with asset management growth – High income opportunities on operationally strong real estate – Retailer partnering positions – Redevel

  26. Slide 26: Kirkstall Bridge, Leeds – After

    Kirkstall Bridge, Leeds – After 26

  27. Slide 27: Metric Property Investments PLC

    pa METRIC PROPERTY INVESTMENTS PLC www.metricproperty.co.uk

  28. Slide 28: £217m Investment Portfolio Across 18 Retail Schemes

    (1) £217m Investment Portfolio Across 18 Retail Schemes Notes 1 Portfolio valuation as at 30 September 2011 of £228.9m including net divestment in Inverness and Swindon with Metric’s one-third share of assets held in MIPP. 28

  29. Slide 29: Shape of Portfolio

    Shape of Portfolio ARTNERING * Retailer initiated * Opportunities for: - Extension - Lease re-gears - Refurbishments - Redevelopment * Pre-let with long income * Limited risk * Target geared IRR: 15% MIPP INVESTMENTS REDEVELOPMENTS * Smaller retail parks/solus units * Lot size £2 - 20 million * High

  30. Slide 30: Broad Sector Exposure (weighted by gross income %)

    Broad Sector Exposure (weighted by gross income %)

  31. Slide 31: Current Investment Portfolio Metrics

    Current Investment Portfolio Metrics (1) Retail portfolio as at 16-Nov-11, excluding residential at Loughborough and Coventry and PFS at Loughborough and Milford Haven. Does not include conditional deals at Bishop Auckland and Rochdale or developments at Leeds and Bristol. (2) Weighted average unexp

  32. Slide 32: UK comparison goods - distribution of sales

    UK comparison goods - distribution of sales 2005 2010 2020 Source: 32

Metric Property Investments — H1 2011 Earnings Presentation on 6ix