Slide 1: Preliminary Results
pee Mat _ Preliminary Results <0 A InOUBE SIS ne AN at
Slide 2: Agenda
Agenda Welcome Harry Platt Financial Performance Graham Clemett Trading Chris Pieroni Regeneration Angus Boag The Future Harry Platt Q&A 2 1
Slide 3: The Workspace Model
The Workspace Model To achieve profit and capital growth from: • Providing workspace to SMEs • Investing in properties with potential for - Income growth - Capital growth - Alternative use • Increasing scale of portfolio, spreading overheads and developing the brand 3 2
Slide 4: Performance Highlights
Performance Highlights March March 2011 2010 Change Like-for-like occupancy 86.2% 83.6% 2.6% Like-for-like cash rent roll £40.1m £38.6m 3.9% Overall occupancy (including BlackRock) 84.1% 81.9% 2.2% Overall rent roll (including BlackRock) £52.0m £50.7m 2.6% Trading profit after interest £14.1m £10.8m
Slide 5: Business Overview
Business Overview Good demand for space Trading Activity Continued occupancy growth Pricing increases are sticking Debt refinanced Valuation improving Portfolio Activity Achieving planning consents and releasing value BlackRock Workspace Property Trust established 5 4
Slide 6: Performance vs IPD
Performance vs IPD 30 30 20 20 Over/(under) performance 10 10 Total Return 0 0 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 -10 -10 -20 Over/(under) performance -20 Total WKP Total Return -30 -30 IPD Universe Total Return 6 5
Slide 7: Financial Performance
Financial Performance Graham Clemett 7 6
Slide 8: Financial Highlights
Financial Highlights March March Income Statement (£m) 2011 2010 Change Net Rental Income 45.9 44.4 +3% Trading Profit after Interest 14.1 10.8 +31% Profit before Tax 52.8 26.0 +103% Dividend per Share 0.825p 0.75p +10% March March Balance Sheet (£m) 2011 2010 Change Portfolio Value 719 717 +4.7%* D
Slide 9: Trading Profit after Interest
Trading Profit after Interest 2.4 14.1 2.3 10.8 (0.8) (0.6) 2010 Revenue Direct Admin Interest 2011 Costs Costs Cost 9 8
Slide 10: Cashflow
Cashflow £m Trading Cashflow from Operations 16.1 7.9 Dividends (8.2) BlackRock Workspace Joint Venture Disposals 35.1 Other Property Related 27.7 Cash Investment (7.4) Disposals 8.8 Capital Expenditure (9.4) (0.6) Other (including Financing) Hedging Amendments (6.5) (18.4) Restricted Cash (5.0) Ref
Slide 11: BlackRock Workspace Property Trust
BlackRock Workspace Property Trust • Joint venture with BlackRock UK Property Fund • 5 year life, could be extended for further 2 years • Initial equity commitment of up to £100m (Workspace 20.1%) • Seeded with 8 properties with book value of £35m from Workspace • All properties to be branded by Wor
Slide 12: Balance Sheet
Balance Sheet March March £m 2011 2010 Property Valuation 719 717 Investment in Joint Venture 7 - Borrowings (367) (383) Hedging (11) (22) Other Assets/Liabilities (14) (25) Net Assets 334 287 EPRA NAV per share 29.5p 26.7p Loan to Value 50% 53% 12 12 11
Slide 13: Movement in Property Valuation
Movement in Property Valuation 10 24 719 717 11 (43) March Capital Disposals Income Added March 2010 Expenditure Value 2011 13 12
Slide 14: Breakdown of Property Valuation
Breakdown of Property Valuation Existing Use Added Total £m Value Occupancy Yield Value Value Like-for-like Properties 514 86% 7.8% 29 543 Refurbishment Properties 93 75% 7.5% 12 106 Other Properties 32 75% 5.6% 38 70 Total 639 83.6% 7.7% 79 719 14 13
Slide 15: Added Value
Added Value Wandsworth Business Village, SW18 £12.3m Aberdeen Centre, N5 Other Bow Enterprise Park, E3 (17 properties) £8.3m £30.7m Tower Bridge Business Complex, SE16 Grand Union Centre, W10 £6.7m Thurston Road Industrial Estate, SE13 £6.6m Kennington Park, SW9 £4.5m £4.9m £5.2m Other 15 14
Slide 16: Debt Analysis
Debt Analysis March March 2011 2010 Net Debt £367m £383m LTV 50% 53% % Hedged 74% 70% Average Interest Cost 5.3% 6.7% Headroom £30m £36m Facility Type Facility Amount Margin Lloyds BoS Term £68m 1.25% Bayern Club Term £200m 2.25% RBS Term/Revolver £125m 2.50%/2.75% Overdraft £4m On demand 16 15
Slide 17: Debt Maturity Profile
Debt Maturity Profile £400m June 2015 £350m £300m £250m £125m £200m £150m December £100m 2014 £50m £68m £200m £0m 2011 2012 2013 2014 2015 Lloyds BoS Bayern Club RBS 17 16
Slide 18: Financial Summary
Financial Summary • Strong trading performance • Good cash generation • Resumption of progressive dividend policy • Strengthened balance sheet • Growth in valuation driven by added value 18 17
Slide 19: Trading
Trading Chris Pieroni 19 18
Slide 20: Scale of our Brand
OCCUPANCY Scale of ourAND RENT ROLL GROWTH Brand Like for like Rent Roll and Occupancy trends £40,250,000 1.2m sq.ft Let 11,500 Enquiries 110% 105% £39,250,000 100% £38,250,000 95% £37,250,000 90% 85% £36,250,000 1,050 3,400 80% £35,250,000 Deals Viewings 75% £34,250,000 70% April May June July Augu
Slide 21: Like-for-Like Occupancy and Rent Roll
Like-for-Like OCCUPANCY AND Occupancy RENT ROLL& GROWTH Rent Roll Like for like Rent Roll and Occupancy trends £41m £40,250,000 90%110% 89% £40m 105% 88% £39,250,000 £39m 87% 100% 86% £38m £38,250,000 85%95% £37m 84% £37,250,000 90% £36m 83% 82%85% £35m £36,250,000 81% £34m 80%80% April £35,250,000
Slide 22: Rent Roll Spread and Like-for-Like Occupancy
OCCUPANCY AND Like-for-Like RENT ROLLSpread Occupancy GROWTH Like for like Rent Roll and Occupancy trends 100% 85% £40,250,000 110% 90% 105% £39,250,000 80% 100% 70% £38,250,000 95% 60% £37,250,000 90% 50% 85% £36,250,000 40% 80% £35,250,000 30% 75% 20% £34,250,000 70% April May June July August Sep
Slide 23: The Occupancy and Pricing Dynamic
The Occupancy OCCUPANCY and Pricing AND RENT ROLL GROWTH Dynamic Like for like Rent Roll and Occupancy trends Like for like Business Centres (49 Properties) £40,250,000 110% £15.5psf 90.0% 105% £39,250,000 100% 88.0% £38,250,000 £15.0psf 95% 86.0% £37,250,000 90% 84.0% 85% £36,250,000 £14.5psf 80% 8
Slide 24: Operational Focus
OCCUPANCY OperationalAND RENT ROLL GROWTH Focus Like for like Rent Roll and Occupancy trends To drive pricing £40,250,000 110% ‘the growth pricing premium’ 105% £39,250,000 100% £38,250,000 95% To drive new income £37,250,000 90% £36,250,000 • Club Workspace 85% • Anyspacedirect 80% £35,250,000 75%
Slide 25: Regeneration
Regeneration Angus Boag 25 24
Slide 26: Strategy
Strategy TO CREATE VALUE • Alternative uses • New business space for old • Redevelopment RESULTING IN • Increased rental income • Increased asset value • Release of cash for reinvestment 26 25
Slide 27: Achieved last Year
Achieved last Year • Sales of £9m • Further sales contracted £13m • Redevelopment agreement at Wandsworth Business Village • Planning consent at Bow Enterprise • Planning application Poplar • Consent for 100,000 sq. ft new business space • Development Phase 2 Kennington Park 27 26
Slide 28: Targets for Current Year
Targets for Current Year • Complete £13m sales • Redevelopment Agreements at Aberdeen Studios & Highway • Planning Consent for a further 350 apartments • Planning Application for a further 300 apartments • Planning Consent for 30,000 sq .ft commercial space • Significant progress at Tower Bridge • R
Slide 29: Strategy in Action
Strategy in Action Wandsworth Business Village Canalot Studios 29 28
Slide 30: What does this mean?
What does this mean? • Significant upgrading of portfolio • Substantial uplift in asset values • Opportunity to significantly grow the rent roll • Generating cash for reinvestment 30 29
Slide 31: The Future
The Future Harry Platt 31 30
Slide 32: The Future
The Future • Continuing growth in occupancy – closing the gap to 90% ERV • Redeveloping and regeneration – achieving value and enhancing rental income • Using the brand 32 31
Slide 33: The Future – London and SMEs
The Future – London and SMEs • London is leading the recovery • London is THE global city in an international world • 180,000 SMEs are in our target space. They are energetic, creative and growing. We are creating the right space, environment and community for their businesses to thrive. 33 32
Slide 34: The Future
The Future Finance Committed and long-term Occupancy Raise rents Bring more properties into ‘squeeze’ zone Use ‘brand’ to raise price point Develop other income streams Development Progress projects in hand Release further value Enhance rental income Other Opportunities Being progressed Strong and c