Londonmetric Property Plc · LSE:LMP

Londonmetric Property — H1 2013 Earnings Presentation

26 slides from Londonmetric Property's earnings presentation, Nov 9, 2012

  1. Slide 1: Half Year Results to September 2012

    Half Year Results to September 2012 9th November 2012

  2. Slide 2: Half Year 2013 Financial Highlights

    Half Year 2013 Financial Highlights  NAV flat at 107p (H1-12: 104p, up 3%)  Underlying EPRA PBT, up 35% to £3.5m (H1-12: £2.6m) o Including H1-12 £1.3m surrender premium, EPRA PBT down 11% (H1-12: £3.9m)  Underlying EPRA EPS 1.8p, up 35% (H1-12: 1.4p) o Including H1-12 surrender premium 0.7p, EPR

  3. Slide 3: Half Year 2013 Operational Highlights

    Half Year 2013 Operational Highlights  Occupancy over 99% (FY-12: 97.5%), WAULT 11.5 years (10.8 years to first break)  Portfolio valued at £266.2m across 25 retail properties o Valuation surplus £0.7m or 0.3% - Development portfolio revaluation surplus £3.3m (+11.8%) - Investment portfolio revalu

  4. Slide 4: Strong Returns Relative to IPD

    Strong Returns Relative to IPD (At 30 September 2012) (1) (1) IPD All Retail Quarterly Benchmark 4

  5. Slide 5: Geographic Diversification Across the UK

    Geographic Diversification Across the UK (1) The investment portfolio represents the valuation as at 30 September 2012 of £266.2m including post period end acquisitions totalling £14.9m for MIPP (Metric’s one-third share £5.0m), comprising Lichfield Retail Park, Lichfield for £11.0m (Metric’s share

  6. Slide 6: Portfolio Diversification Through Three Silos

    Portfolio Diversification Through Three Silos 6

  7. Slide 7: Broad Sector Exposure

    Broad Sector Exposure 16% of investment portfolio income subject to fixed uplifts 7

  8. Slide 8: Income Statement

    Income Statement (1) (1) (1) After deducting property operating costs of £0.1m (2011: £0.1m) 8

  9. Slide 9: Movement in EPRA PBT (to September 2012)

    Movement in EPRA PBT (to 30 September 2012) 9

  10. Slide 10: Balance Sheet

    Balance Sheet METRIC (£m) Portfolio value Investments Developments MIPP joint venture Net current assets Net debt Net assets FV adj of derivative financial instruments EPRA net assets EPRA NAV per share (p) LTV (%) 10

  11. Slide 11: Movement in NAV (to September 2012)

    Movement in NAV (to 30 September 2012) 11

  12. Slide 12: Recent Acquisitions

    Recent Acquisitions Investments MIPP MIPP Dunelm, Alban Park, St Albans Faustina RP, Londonderry Lichfield Retail Park, Lichfield Total capex £4.6m, yoc 7.75% Total capex £17.4m, yoc 7.5% Total capex £10.95m, yoc 6.6% Fully let to Dunelm Fully let to B&Q and Dunelm 63% of income RPI-linked Trading f

  13. Slide 13: Investment Market Outlook

    Investment Market Outlook  Income security & longevity is the key pricing metric  Vendor refinancing pressures are creating more opportunities – Banks now unloading assets and debts – Receivership opportunities rising  Financing is harder and is more expensive – Debt buyers retreating  Looking a

  14. Slide 14: Occupational Activity

    Occupational Activity Asset management activity Occupancy (%) Number of occupier tra transactions Like-for-like rental uplift (%) New lettings (sq ft Lease re-gears/rent reviews 5 (sq ft) ae "426,200 10,900 Annualised income secured (£m) 21 14

  15. Slide 15: Portfolio Metrics

    Portfolio Metrics As at 30 September 2012 (1) (1) Weighted average unexpired lease term to first break 10.8 years 15

  16. Slide 16: Asset Management – Occupier Activity

    Asset Management – Occupier Activity As at 30 September 2012  Occupancy over 99%, up from 97.5% at year-end  Like-for-like rental growth 2.8%, average portfolio rents £1.00 psf higher than at purchase  Post period end only 1 Comet unit in administration (£110,200 annual rent or 0.6% of rent roll)

  17. Slide 17: Developments

    Developments  Conditionally acquired 90 acres on the outskirts of St Austell  Planning application submitted  Propose to develop a new 103,000 sq ft retail park – Anchored by 68,000 sq ft Sainsbury’s supermarket (pre sold) 17

  18. Slide 18: Generating Alpha Through Redevelopments

    Generating Alpha Through Redevelopments Rental income (1) Anticipated rental income at Kirkstall, Leeds of £2.9m, of which To let comprises £1.7m or 57% 18

  19. Slide 19: Redevelopments – Planning Gains

    Redevelopments – Planning Gains 19

  20. Slide 20: Timing & Cost to Complete of Developments

    Timing & Cost to Complete of Developments (1) Based on financial year ended 31-Mar (2) CTC = estimated cost to complete (3) YOC on PC = estimated yield on cost on practical completion 20

  21. Slide 21: Top 10 Tenant Exposure

    Top 10 Tenant Exposure (weighted by gross income %) (1) (1) Gross rental income includes £0.4m of rental income from post year end and acquisitions, deals in solicitors’ hands and outstanding rent reviews (2) Market capitalisation as at 7 November 2012 (3) Market cap of owner Kingfisher plc (4) Mark

  22. Slide 22: Growing Structurally Challenging

    Growing Structurally Challenging 22

  23. Slide 23: Only 6% of Metric's leases expire by 2015

    Only 6% of Metric’s leases expire by 2015 51% of high street and (Cumulative % of Existing Leases) shopping centre leases to expire by 2015 Source: Jones Lang LaSalle, Metric 23

  24. Slide 24: UK comparison goods - distribution of sales

    UK comparison goods - distribution of sales 2005 2010 2020 Source: 24

  25. Slide 25: Portfolio Metrics

    (1) Portfolio Metrics (1) Investment and MIPP retail portfolios as at 30-Sep-12 including post period end acquisitions. All figures based on net exposure. (2) Weighted average unexpired lease term to expiry (10.8 years to first break) (3) Management view of sustainable rent - not tied to valuer's ER

  26. Slide 26: DA METRIC

    DA METRIC | to INVESTMENTS PLC www.metricproperty.co.uk

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