British Land Company Plc · LSE:BLND
British Land — FY2021 Earnings Presentation
97 slides from British Land's earnings presentation, May 2021
Slide 1: Full Year Results Presentation
Full Year Results Presentation Year ended 31 March 2021
Slide 2: Key Highlights
Key Highlights • Financial performance impacted by Covid-19 – Underlying profit down 34% to £201m – EPRA NTA down 16% to 648p • Operational performance resilient – £1.2bn asset sales, 6.2% ahead of book value – 2.2m sq ft leasing activity including 1.7m sq ft in retail • New strategy exploiting our
Slide 3: Financial Results
Financial Results David Walker 100 Liverpool Street
Slide 4: Results Overview
Results Overview £201m 648p £ 9.1bn Underlying Profit EPRA Net Tangible Assets Portfolio valuation per share -10.8% vs March 20 -34.3% vs Mar 20 -16.3% vs Mar 20 (Retail -24.7%, Offices -3.8%) 83% 32.0% 15.0p FY21 rent collected Loan to value Dividend per share Offices 99%, Retail 71% No requirement
Slide 5: Underlying earnings per share
Underlying earnings per share (2.3p) (4.6p) 1.1p 0.2p (6.1p) 0.6p (2.8p) 32.7p 31.7p 30.4 18.8p 2020 Net divestment Development Share buyback Excl. impact of Like for like Provisions for rent Financing Tax charge 2021 capital activity income incl. CVAs receivables, activity & admins deferred rent, t
Slide 6: Net rental income
Net rental income 1 Offices -1.0%1 £m Retail -17.4%1 (25) (43) (53) (6) 14 2 478 367 2020 Net divestment Like for like incl. Provisions for Provisions for Provisions for Developments 2021 CVAs and admins outstanding rents deferred rents tenant incentives and service charge income 1 Like for like % e
Slide 7: FY21 rent collection
FY21 rent collection Rent due between 25 March 2020 and 24 March 2021 As at 18th May Offices Retail1 Total Received 99% 71% 83% Rent deferrals 1% 5% 3% Rent forgiven - 9% 5% Moved into administration - 3% 2% Outstanding - 12% 7% 100% 100% 100% Total £225m £305m £530m Collection of adjusted billing2
Slide 8: Debtors and provisioning
Debtors and provisioning Provision Receivable Debtor balance % provided for FY21 impact Description balance Less than 91 days £45m £14m 31% £14m 91 – 182 days £20m £14m 70% £14m We take a systematic approach to provisioning based on ageing and credit quality of individual debtor balances 183 – 365 d
Slide 9: Income statement
Income statement Financial Year to 31 March 2020 2021 Change % Net rental income (£m) 478 367 (23.2%) Fees & other income (£m) 13 11 (15.4%) Administrative expenses (£m) (74) (74) - Net finance costs (£m) (111) (103) (7.2%) Underlying Profit (£m) 306 201 (34.3%) Underlying tax charge1 - (26) - Under
Slide 10: New dividend policy provides clarity
New dividend policy provides clarity 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 FY21 • 15.04p
Slide 11: EPRA Net Tangible Assets
EPRA Net Tangible Assets 137p 19p (8p) (1p) (1p) 3p 773p 649pp 648p 648p Mar 20 Valuation Property disposals Underlying Dividend Finance liability Other Mar 21 performance Profit management 10
Slide 12: Strength of debt metrics
Strength of debt metrics 31 March 2020 31 March 2021 Undrawn Facilities and Cash £1.3bn £1.8bn No requirement to refinance until: 2024 2025 Loan to value1 34.0% 32.0% Weighted Average Interest Rate1 2.5% 2.9% Interest Cover1 3.8x 3.0x Weighted Average Drawn Debt Maturity1 7.5yrs 7.6yrs Senior unsecu
Slide 13: Progress against our 2030 sustainability strategy
Progress against our 2030 sustainability strategy • Achieved a GRESB 5* rating and awarded a green star rating for the 11th consecutive year • Validation of our climate commitment by the Science Based Target initiative • First Net Zero Carbon development at 100 Liverpool Street • 1 Broadgate will be
Slide 14: Proven resilience, positioned for opportunity and growth
Proven resilience, positioned for opportunity and growth Strong financial position to act at pace • £1.8bn of cash and facilities • LTV low at 32.0% • Completed and committed developments add an additional £50m of earnings New dividend policy provides clarity and flexibility Challenging year, but re
Slide 15: Operations & markets
Operations & markets Darren Richards 100 Liverpool St, Broadgate
Slide 16: Valuation performance
Valuation performance Valuation Valuation movement Yield ERV £m H2 21 FY 21 Movement movement Total 9,132 (3.8%) (10.8%) +33bps -7.6% Offices 6,032 (0.8%) (3.8%) +9bps +0.7% Retail 2,592 (11.4%) (24.7%) +81bps -16.8% Retail Parks 1,367 (6.5%) (18.6%) +45bps -15.2% Shopping Centres 896 (19.9%) (35.7%
Slide 17: Office leasing
Office leasing • Leasing volumes lower, reflecting our high occupancy and a subdued market – 395,000 sq ft offices leasing; 168,0001 sq ft over one year, 2.3% ahead of ERV2 – 161,000 sq ft deals post year end, including 134,000 sq ft to JLL at 1 Broadgate – 94.1% occupancy on our offices portfolio –
Slide 18: Office insights & demand dynamics
Office insights & demand dynamics What our customers are saying How much space will be needed How will space be used Three main groups of thought: • An increased need for space that enhances 1. Taking the opportunity to downsize collaboration and social interaction 2. Weighing up options and waiting
Slide 19: Demand focused on best space where supply most constrained
Demand focused on best space where supply most constrained Market focused on quality Quality supply remains constrained m sq ft 25 Central London available space: • 77% of available space in London is second increase driven by second hand space hand 20 10-year average: 14.7m sq ft • Tenant controlle
Slide 20: Campus proposition in action
Campus proposition in action New openings at Broadgate Sustainability key to JLL pre-let of 1 Broadgate Targeting strong sustainability credentials: Broadgate 19
Slide 21: Retail Leasing
Retail Leasing Working with high quality occupiers • 1.7m sq ft retail leasing – 962,000 sq ft over one year; 19.3% below previous passing rent1, 11.5% below March 2020 ERV1 • Pragmatic approach focused on maximising occupancy – Accepting lower rents to generate sustainable cash flow to underpin val
Slide 22: Outperforming on footfall and sales
Outperforming on footfall and sales Footfall and Sales since reopening Outperformance vs benchmarks LfL Sales and Footfall vs 2019 British Land LfL Sales and Footfall 11 April – 16 May1 Outperformance vs benchmark2 (bps) 120% 500 100% 400 80% 300 60% 200 40% 100 20% 0% 0 Footfall LfL Sales FY16 FY17
Slide 23: Deep dive on Retail
Deep dive on Retail • Our portfolio primarily comprises retail Retail Portfolio - £2.6bn parks and open air schemes Open air schemes – Only 22% are traditional covered shopping centres • Increasingly strong occupier base – Targeting well capitalised companies that are online 12% Traditional compatib
Slide 24: Retail Parks increasingly affordable
Retail Parks increasingly affordable Retail park ERV decline decelerating Increasing affordability on our portfolio Retail park like-for-like ERV decline as a % vs March 2018 100 95 11% Occupancy Cost Ratio for 90 our Retail Parks1 85 80 • Further upside when lower ERVs reflected within rates 75 70
Slide 25: Strategy and outlook
Strategy and outlook Simon Carter 1 Broadgate
Slide 26: Our Strategy: Places people prefer
Our Strategy Places people prefer. With a focus on development, active management and repositioning opportunities. Investing behind two strategic themes: Campuses Retail & Fulfilment Dynamic neighbourhoods focused Retail parks & urban logistics aligned on growth customers and sectors to the growth o
Slide 27: How we create value
How we create value Source value & Actively manage growth opportunities & develop A1 Retail Park, Biggleswade Development Value opportunity Norton Folgate Heritage House, Enfield 1 Broadgate Development-led urban Canada Water logistics opportunity Active management Recycle capital Broadgate repositi
Slide 28: Our campuses benefit from today's trends
Campuses Our campuses benefit from today’s trends Our campus proposition Aligned to the way we work Sustainable, high quality space supporting wellbeing Great locations & excellent transport links Engaging public realms & amenities embedded in local communities Flexible with ability to grow 100 Live
Slide 29: Driving campus performance through development
Campuses Driving campus performance through development Committed Near term Medium term 1 Broadgate 546,000 sq ft Canada Water – Phase 1 2-3 Finsbury Avenue 582,000 sq ft 704,000 sq ft A1 A2 Norton Folgate 336,000 sq ft K1 Canada Water Later phases, 4.5m sq ft 5 Kingdom Street 438,000 sq ft 28
Slide 30: Developing our fourth campus at Canada Water
Campuses Developing our fourth campus at Canada Water • Drawdown of 500-year headlease completed – Following grant of planning • Flexible planning consent, ranging from: – 2,000 to c.4,000 residential units – 500,000 sq ft to 2.5m sq ft workspace • 10-12 year programme • Targeting annualised develop
Slide 31: Aligning to innovation sectors
Campuses Aligning to innovation sectors Science & Artificial Technology engineering Intelligence Life Sustainability sciences 30
Slide 32: Aligning to innovation sectors: life sciences
Campuses Aligning to innovation sectors: life sciences Attractive market fundamentals Why we are well placed Government investment to Unique Clustering of world leading double to £22bn by 20251 mixed use research institutions in the campuses Knowledge Quarter Growing overseas investment Innovation A
Slide 33: Retail Parks: affordable and support fulfilment
Retail & Retail Parks: affordable and support fulfilment Fulfilment Attractive market drivers Retail Park value opportunity Illustrative example Affordable: OCRs at current Attractive net initial yield of 8% ERVs of 11% Complementary to online; click ERV decline, c.5% then stabilisation & collect, r
Slide 34: Retail Parks: crossover with urban logistics
Retail & Retail Parks: crossover with urban logistics Fulfilment Role of retail parks in logistics Capital values converging • Used by retailers to support last mile Capital value, £psf £600 delivery – Click & collect £500 – Returns £400 – Ship from store • Conversations on our space with third £300
Slide 35: Urban logistics: a strong growth market
Retail & Urban logistics: a strong growth market Fulfilment Attractive market drivers Forecast rental growth, London ERV growth, % 7.0 Growth of e-commerce 6.0 5.0 Demand for same day delivery accelerating; expected to 4.0 double over 5 yrs 3.0 Limited supply given competing uses for land in 2.0 Lon
Slide 36: Urban logistics: our ability to deliver
Retail & Urban logistics: our ability to deliver Fulfilment Why we are well placed Heritage House, Enfield • Our Central London expertise – To source opportunities – Obtain planning • Requires innovative solutions – Multi-storey – Underground – Incorporating into mixed use • Development expertise –
Slide 37: Delivering on our priorities and next steps
Delivering on our priorities and next steps Realising the Progressing value Targeting the potential of our accretive opportunities in Active capital campuses development retail fulfilment recycling Progress: Progress: Progress: Progress: Pre-let 1 Broadgate to Delivered our first net c.£200m retail
Slide 38: Outlook
Outlook Campuses • Offices market rents expected to decline up to 5% before recovering • Campus rents to outperform given demand concentrated on best space • Downward pressure on office yields as confidence improves driven by low interest rates and yield differential with the Continent Retail & Fulf
Slide 39: Our Strategy: Places people prefer
Our Strategy Places people prefer. With a focus on development, active management and repositioning opportunities. Investing behind two strategic themes: Campuses Retail & Fulfilment Dynamic neighbourhoods focused Retail parks & urban logistics aligned on growth customers and sectors to the growth o
Slide 40: Appendices
STALIAN 70.60
Slide 41: A diverse, high quality portfolio £9.1bn
A diverse, high quality portfolio £9.1bn (BL share) Retail & Fulfilment (25%) Campuses (70%) Retail Parks (15%) London campuses (59%) 81% London & Shopping Centres South East (10%) Standalone offices (7%) Other (5%) Canada Water (4%) Residential (1%) Other Retail (4%) 40
Slide 42: 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 43: March 2021 rent collection
March 2021 rent collection Rent due between 25 March 2021 and 18 May 2021 As at 18th May Offices Retail1 Total Received 98% 72% 84% Rent deferrals - - - Rent forgiven - 1% 1% Customer paid monthly 1% 5% 3% Outstanding 1% 22% 12% 100% 100% 100% Total £45m £50m £95m Collection of adjusted billing2 99%
Slide 44: FY21 rent collection
FY21 rent collection Rent due between 25 March 2020 and 24 March 2021 As at 18th May Offices Retail1 Total Received 99% 71% 83% Rent deferrals 1% 5% 3% Rent forgiven - 9% 5% Moved into administration - 3% 2% Outstanding - 12% 7% 100% 100% 100% Total £225m £305m £530m Collection of adjusted billing2
Slide 45: Major retail property holdings
Major retail property holdings As at 31 March 2021 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 72 94.9 4.1 2 Drake's Circus, Plymouth 100 1,190 14 87.0 5.4 3 Teesside, Stockton 100 569 14 90.9 3.2 4 Glasgow Fort 78 510 16 91.7
Slide 46: Broadgate Campus
Broadgate Campus —_ D><€ Weg 7 STATION CONCOURSE y =e s re, LWEREOOL STREET ‘STATION @ swoREDIToH WoRStip HIGH STREET REET SPrTALFIELos rust anni Lent Ane Moo EE 5 They yeLOSTREET @ 1 Broadgate @ 2 Broadgate @ | Finsbury Avenue © 2&3 Finsbury Avenue @ 5 Broadgate @ Broadgate Circle @ 100 Liverpool S
Slide 47: Paddington Central Campus
Paddington Central Campus 47
Slide 48: 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 49: Top 20 occupiers
Top 20 occupiers Retail Offices Occupier Split by Industry (%) As at % of As at % of 31 March 2021 Retail 31 March 2021 Office Rent Rent Other 9% Fashion & Next 5.4 Facebook 8.6 Government 4% Beauty 19% Walgreens (Boots) 4.7 UK Government 6.9 Home & DIY 5% M&S Plc 4.2 Dentsu Aegis1 4.8 Tesco 3.1 Vis
Slide 50: Capital Activity
Capital Activity Since 1 April 2020 Offices Retail Residential Canada Water Total £m £m £m £m £m Purchases1 - 284 - - 284 Sales2 (643) (556) (18) - (1,217) Development Spend 98 3 2 26 129 Capital Spend 35 25 - - 60 Net Investment (510) (244) (16) 26 (744) Gross Investment 776 868 20 26 1,690 On a pr
Slide 51: Capital Activity £7.3bn
Capital Activity £7.3bn Gross investment activity since April 2016 Net Spend1 £m (£502m) (£739m) (£753m) £121m £(744)m 1,600 1,200 800 400 - (400) (800) (1,200) (1,600) (2,000) FY17 FY18 FY19 FY20 FY21 Sales Capital Investment Purchases Net Spend 1 Previous periods have been restated to exclude tran
Slide 52: Sales (1 of 2)
Sales (1 of 2) Since 1 April 2020 Sector Price Price Annual (100%) (BL Share) Passing Rent £m £m £m1 Completed Tescos, Milton Keynes & Peterborough Retail 149 149 9 Portfolio of Sainsbury’s stores2 Retail 102 102 - B&Qs, Various Retail 100 100 8 Beaumont Leys (Bradgate Mall) Retail 63 63 5 Beaumont
Slide 53: Sales (2 of 2)
Sales (2 of 2) Since 1 April 2020 Sector Price Price Annual (100%) (BL Share) Passing Rent £m £m £m1 Completed Marble Arch House, York House & 10 Portman Sq Offices 535 401 12 Clarges, Mayfair Offices 177 177 5 Yalding House, London Offices 42 42 2 Orwell House, London Offices 23 23 1 Clearwater Dev
Slide 54: Purchases
Purchases Since 1 April 2020 Sector Price Price Annual (100%) (BL Share) Passing Rent £m £m £m1 Completed A1 Retail Park, Biggleswade Retail 49 49 5 Heritage House, Enfield2 Logistics 87 87 2 Exchanged Hercules Unit Trust units Retail 148 148 12 Total 284 284 19 1 BL share of annualised rent topped
Slide 55: FY22 income statement – key moving parts and sensitivities
FY22 income statement – key moving parts and sensitivities Gross Rents Financing • Annualised accounting gross rent of £426m as at 31 March 20211. • Weighted average interest rate now 2.9% on gross debt of £3.2bn. • c.£12m will move into vacant possession for development, • Undrawn facilities of £1.
Slide 56: Illustrative future income profile breakdown (cash basis)
Illustrative future income profile breakdown (cash basis) For the year to 31 March 2022 2023 2024 2025 2026 Total Accounting Basis As at 31 March 2021 £m £m £m £m £m £m Current Passing Rent 425 4 428 Contracted uplifts 34 11 12 - - 57 Pre-lets of Committed Developments1 - 22 - - 5 27 23 Contracted r
Slide 57: Gross rental income
Gross rental income1 Accounting Basis £m 12 months to 31 March 2021 Annualised as at 31 March 2021 Group JVs & Funds Total Group JVs & Funds Total West End 131 18 149 116 7 123 City 16 80 96 6 77 83 Offices 147 98 245 122 84 206 Retail Parks 84 51 135 71 46 117 Shopping Centre 50 43 93 40 40 80 Supe
Slide 58: Underlying Profit Bridge
Underlying Profit Bridge £m (21) 10 (43) (59) 306 295 (2) 285 285 2 8 252 193 193 195 201 2020 Net Developments Excl. impact Like for like Provisions for Tenant Finance cost Fees & other 2021 divestment of capital incl. CVAs and trade debtors incentive reductions income activity admins and deferred
Slide 59: Operating cash flow bridge
Operating cash flow bridge £m 38 (125) 34 (70) (15) (33) 320 149 (140) Cash rental Distributions Fees and Operating and Net finance Indirect taxes Corporation Net cash FY21 income from JVs and other income admin costs paid tax inflow from Dividend Funds expenses operating activities 59 FY21 Dividend
Slide 60: Administrative expenses
Administrative expenses Financial Year to 31 March 2020 2021 £m £m Personnel costs 50 48 Share scheme costs (3) 2 Other administrative expenses 33 31 Total 80 81 Capitalised costs (6) (7) Total administrative expenses 74 74 On a proportionally consolidated basis including the Group's share of Joint
Slide 61: CVAs and Administrations
CVAs and Administrations Data since April 2017 Annualised contracted rent lost by Quarter (£m) CVA - stores closing Contracted Number % split rent reduction of CVA - reduced rents of Units £m Stores 14 Admins - stores closing Number of units in c.3,000 Admins - reduced rent portfolio 12 Stores under
Slide 62: Operating costs metric
Operating costs metric Financial Year to 31 March 2020 2021 £m £m Property operating expenses 83 141 Administrative expenses 73 74 Net fees and other income (13) (11) Ground rent costs and operating expenses de facto included in rents (16) (21) EPRA Costs (including direct vacancy costs) 127 183 Gro
Slide 63: Reconciliation of Underlying Profit
Reconciliation of Underlying Profit Financial Year to 31 March 2020 2021 £m £m IFRS loss after tax attributable to shareholders (1,027) (1,031) Net valuation loss 1,389 1,297 Profit on disposal of investment and trading properties (18) (27) Capital financing costs 63 (12) Non-controlling interests (
Slide 64: Number of shares
Number of shares As at 31 March 2020 31 March 2021 (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.
Slide 65: EPRA balance sheet
EPRA balance sheet 31 March 2020 Group JVs & Funds 31 March 2021 Total properties (£m) 1 11,177 6,118 3,022 9,140 Adjusted net debt (£m) (3,854) (2,071) (867) (2,938) Other net liabilities (£m) (121) (103) (49) (152) EPRA Net Tangible Assets (£m) 7,202 3,944 2,106 6,050 Loan to value (LTV)2 34.0% 32
Slide 66: EPRA Net Asset Value Metrics
EPRA Net Asset Value Metrics 31 March 2020 31 March 2021 (£m) (£m) EPRA NTA1 EPRA NDV2 EPRA NRV3 EPRA NTA1 EPRA NDV2 EPRA NRV3 IFRS Net Assets 7,147 7,147 7,147 5,983 5,983 5,983 Deferred tax arising on revaluation movements 6 6 6 - - - Mark to market on derivatives and related debt 141 - 141 115 -
Slide 67: Reconciliation of new EPRA net asset valuation metrics to previous metrics
Reconciliation of new EPRA net asset valuation metrics to previous metrics 31 March 2020 31 March 2021 £m £m EPRA NRV 7,872 6,599 Purchasers’ costs (659) (537) EPRA NAV 7,213 6,062 Per share measure 774p 650p EPRA NTA 7,202 6,050 Intangibles 11 12 EPRA NAV 7,213 6,062 Per share measure 774p 650p EPR
Slide 68: Gross and net debt reconciliation
Gross and net debt reconciliation As at 31 March 2021 Group JVs & Funds Less non- Total £m £m controlling £m interests £m Gross Debt (principal) (2,291) (971) 79 (3,183) IFRS adjustments: Issue costs and premia 12 3 - 15 Fair value hedge adjustments (131) - - (131) IFRS gross debt (2,410) (968) 79 (
Slide 69: Loan to value (LTV)
Loan to value (LTV) As at As at 31 March Valuation Capital Operating 31 March Acquisitions Disposals Dividend Other 2020 movement spend cashflow 2021 £m £m Total properties 11,157 (1,245) 52 185 (1,040) - - 23 9,132 Other 131 1 - 5 (109) - - (2) 26 investments LTV assets 11,288 (1,244) 52 190 (1,149
Slide 70: Debt metrics
Debt metrics Proportionally Consolidated 31 Mar 2020 31 Mar 2021 Loan to value (LTV) 34.0% 32.0% Weighted average interest rate 2.5% 2.9% Interest cover 3.8x 3.0x Weighted average maturity of drawn debt 7.5yrs 7.6yrs Group 31 Mar 2020 30 Mar 2021 Loan to value (LTV) 28.9% 25.1% Available undrawn fac
Slide 71: Debt maturity
Debt maturity £m 1,600 1,400 Facilities Undrawn (Unsecured) Facilities Drawn (Unsecured) Debenture & Loan Notes (Secured) 1,200 Sterling Bond (Unsecured) US Private Placements (Unsecured) 1,000 JVs & Funds – Bank Drawn (Secured) JVs – Securitisations (Secured) 800 600 400 200 - 2022 2023 2024 2025 2
Slide 72: Debt financing – diverse profile
Debt financing – diverse profile • Extended £1.1bn RCFs: £4.9bn Debt and facilities (3.2bn drawn)1 – £650m by a further year to 2025 31 March 2021 – £450m ESG-linked RCF by a further year to 2026 £0.3bn • £1.8bn undrawn facilities and cash Facilities Undrawn Facilities Drawn • £100m loan signed with
Slide 73: Portfolio valuation by sector
Portfolio valuation by sector At 31 March 2021 Group JVs & Funds Total Change %1 £m £m £m H1 H2 FY West End 3,297 167 3,464 (2.5) (0.8) (3.2) City 317 2,251 2,568 (4.0) (0.7) (4.6) Offices 3,614 2,418 6,032 (3.1) (0.8) (3.8) Retail Parks 831 536 1,367 (13.1) (6.5) (18.6) Shopping Centre 409 487 896
Slide 74: Valuation movement – Offices
Valuation movement – Offices Financial Year to 31 March 2021 Valuation Change Change Yield movement ERV movement £m £m %1 Bps2 %2 West End 3,464 (137) (3.2) +13 2.0 City 2,568 (125) (4.6) +2 (1.6) Offices 6,032 (262) (3.8) +9 0.7 1 Valuation movement during the year (after taking account of capital
Slide 75: Valuation movement – Retail
Valuation movement – Retail Financial Year to 31 March 2021 Valuation Change Change Yield movement ERV movement £m £m %1 bps2 %2 Retail Parks 1,367 (340) (18.6) +45 (15.2) Shopping Centre 896 (498) (35.7) +143 (20.3) Other 329 (86) (16.4) +55 (12.7) Retail 2,592 (924) (24.7) +81 (16.8) 1 Valuation m
Slide 76: Retail Valuation Movements
-25% Retail Valuation Movements Retail FY21 valuation movement Mar ’21 Valuations (£’m) 800 700 600 500 400 300 200 100 - Greater than 0% 0 to -10% -10% to -20% -20 to -30% -30 to -40% More than -40% Shopping Centres Retail Parks Superstores Leisure High Street Dept Stores % Valuation Movement in FY
Slide 77: Portfolio net yields
Portfolio net yields1,2 As at 31 March 2021 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 3.7 4.4 4.4 4.5 13 5.3 2.0 City 3.0 3.8 3.8 4.4
Slide 78: Portfolio weighting
Portfolio weighting As at 31 March 2021 2020 2021 2021 % % £m West End 37.7 37.9 3,464 City 23.0 28.1 2,568 Offices 60.7 66.0 6,032 Retail Parks 16.5 15.0 1,367 Shopping Centre 13.5 9.8 896 Superstores 0.8 0.5 47 Department Stores 0.3 0.1 10 High Street 1.2 1.0 92 Leisure 2.4 2.0 180 Retail 34.7 28.
Slide 79: Lease length and occupancy
Lease length and occupancy As at 31 March 2021 Average Lease Length (yrs) Occupancy Rate (%) To Expiry To Break EPRA Occupancy Occupancy1,2,3 West End 5.5 4.3 96.3 96.6 City 8.4 7.2 84.6 90.7 Offices 6.7 5.5 91.3 94.1 Retail Parks 6.4 4.7 93.3 94.7 Shopping Centre 5.7 4.4 91.0 93.3 Superstores 6.3 6
Slide 80: Annualised rent & estimated rental value (ERV)
Annualised rent & estimated rental value (ERV) As at 31 March 2021 Annualised Rents ERV Average Rent (Valuation Basis) £m1 £m (£psf) Group JVs & Funds Total Total Contracted2 ERV West End3 108 7 115 165 59.9 69.0 3 City 7 71 78 124 54.5 55.2 Offices3 115 78 193 289 57.6 62.5 Retail Parks 74 50 124 1
Slide 81: Rent subject to open market rent review
Rent subject to open market rent review For the year to 31 March 2022 2023 2024 2025 2026 2022–24 2022–26 As at 31 March 2021 £m £m £m £m £m £m £m West End 7 22 4 15 1 33 49 City - 1 16 8 27 17 52 Offices 7 23 20 23 28 50 101 Retail Parks 11 9 6 7 6 26 39 Shopping Centre 6 8 3 3 2 17 22 Superstores
Slide 82: Rent subject to lease break or expiry
Rent subject to lease break or expiry For the year to 31 March 2022 2023 2024 2025 2026 2022-24 2022-26 As at 31 March 2021 £m £m £m £m £m £m £m West End 29 24 12 9 12 65 86 City 7 4 13 4 16 24 44 Offices 36 28 25 13 28 89 130 Retail Parks 17 15 24 12 14 56 82 Shopping Centre 16 15 10 8 13 41 62 Sup
Slide 83: Contracted rental increases (cash flow basis)
Contracted rental increases (cash flow basis) For the year to 31 March 2022 2023 2024 2025 2026 2022-24 2022-26 As at 31 March 2021 £m £m £m £m £m £m £m Expiry of rent free periods 30 9 11 - - 50 50 Fixed uplifts (EPRA basis) 1 - - 1 - 1 2 Fixed & minimum uplifts - 1 1 - - 2 2 Total 31 10 12 1 - 53
Slide 84: Total Property Return (as calculated by MSCI)
Total Property Return (as calculated by MSCI) 12 months to 31 March 2021 Offices Retail Total % British Land MSCI British Land MSCI British Land MSCI Capital Return (3.6) (4.5) (24.7) (12.9) (10.8) (3.2) – ERV Growth 0.7 (1.0) (16.8) (9.0) (7.6) (2.8) – Yield Movement1 9 bps 20 bps 81 bps 30 bps 33
Slide 85: De-risked development pipeline focused on campuses
De-risked development pipeline focused on campuses 2-3 Finsbury Avenue 1 Triton Square 1 Broadgate 704,000 sq ft Canada Water, Phase 1 365,000 sq ft 546,000 sq ft Plots A1, A2 and K1 - 582,000 sq ft Completion Q2 20211 Completion Q2 2025 100 Liverpool Street Norton Folgate Aldgate Place, 520,000 sq
Slide 86: Recently Completed & Committed developments
Recently Completed & Committed developments As at Sector BL Sq PC Current Cost to ERV Let 31 March 2021 Share ft Calendar Value Come Year % '000 £m £m1 £m2 £m 100 Liverpool Street Office 50 520 Q3 2020 403 - 19.4 15.5 Total Completed in the Year 520 403 - 19.4 15.5 1 Triton Square4 Office 100 365 Q2
Slide 87: Near term development pipeline
Near term development pipeline As at Sector BL Sq ft Earliest Current Cost to ERV Let & Planning 31 March 2021 Share Start on Value Come Under Status Site Offer % '000 Calendar £m £m1 £m2 £m Year Near Term Pipeline 5 Kingdom Street Office 100 438 Q2 2022 117 344 30.1 - Consented Aldgate Place, Phase
Slide 88: Medium term development pipeline
Medium term development pipeline As at 31 March 2021 Sector BL Share Sq ft Planning status % '000 Medium term Pipeline 2-3 Finsbury Avenue Office 50 704 Consented Eden Walk Retail & Residential Mixed Use 50 452 Consented Ealing – 10-40 The Broadway Mixed Use 100 303 Pre-submission Ealing – Internati
Slide 89: Estimated future development spend and capitalised interest
Estimated future development spend and capitalised interest As at 31 March 2021 PC Cost to Come £m Calendar (excluding notional interest) – 6 months breakdown Year Sep-21 Mar-22 Sep-22 Mar-23 Sep-23 Mar-24 Sep-24 Mar-25 Total 100 Liverpool Street Q3 2020 - - - - - - - - - Total Completed - - - - - -
Slide 90: 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 0.6m 0.1m (sq ft) New Homes 3,000 265 (units) Buildings highlighted above reflect indi
Slide 91: 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 92: Central London development pipeline
Central London development pipeline Completed Q1 2021 U/C Pre-let Pipeline Pre-let U/C – Speculative Potential Speculative m sq ft 10 year average new and under-construction take-up 10 year average development completions 12.0 10.0 8.0 6.0 4.8m 4.0 4.4m 2.0 0.0 07 08 09 10 11 12 13 14 15 16 17 18 19
Slide 93: 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 4 2 0 1985 1990 1995 2000 2005 2010 2015 Q1 2021 Source: CBRE (historic) 93
Slide 94: Developments - Net Zero Carbon
Developments - Net Zero Carbon D Net Zero Carbon – Completed and Committed developments Embodied carbon intensity of the development pipeline Net Zero Embodied emissions Embodied carbon kg CO2e per Developments offset intensity sqm GIA % of total embodied kg CO2e per sqm emissions (A1-A5) Completed
Slide 95: 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 CO2e • Using our Local Charter to focus on key issues per sqm by 2030 • Partnering with local stakehold
Slide 96: Sustainability Indices Performance
Sustainability Indices Performance FY 2021 performance Other benchmarks and awards Global Real Estate Sustainability Benchmark1 Carbon Disclosure Project EPRA EPRA Sustainability Sustainability Reporting Reporting Awards Awards 2020: 5-star 2020: A- 2020: th (Standing Investment and 2019: B 2020: Go
Slide 97: Disclaimer
Disclaimer The information contained in this presentation has been extracted largely from the Full Year Results Announcement for the year ending on 31 March 2021. For the purpose of this document, references to "presentation" shall be deemed to include this document, the oral briefing provided by Br