Shaftesbury Capital Plc · LSE:SHC
Shaftesbury Capital — Capital & Counties Properties — H1 2012 Earnings Presentation
39 slides from Shaftesbury Capital's earnings presentation, Jul 31, 2012
Slide 1: 2012 Interim Results
1 2012 Interim Results 31 July 2012 e
Slide 2: Important notices
Important notices This presentation includes statements that are forwarcdlooking in nature. Forwarcdlooking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of Capital & Counties Properties PLC to be materiall
Slide 3: Agenda
Agenda © Introduction Ian Hawksworth © Financial review Soumen Das © Business review Ian Hawksworth & Gary Yardley © Q&A Page no.3 capitalandcounties.com Capital & Counties Properties PLC 2012 Interim Results ( d pc ®
Slide 4: Capco: Strengths of our business
Capco Strengths of our business @ A focus on prime central London TOTAL PROPERTY VALUE £1.6 billion © Dominant holdings in large estates © Active asset management and selective West End redevelopment £1,015m © Rental resilience and capital value C&O appreciation £510m © Sound capital structure Empre
Slide 5: Highlights
Highlights Positive momentum © NAV +6.8% to 177 pence per share, total return 7.4% © Valuation £1.6 billion +4.8% (ny © £248 million cash and available facilities * Net Debt £397 million, LTV 24% * £70 million revolving credit facility secured * £125 million of disposals in H1 with a further £105 mi
Slide 6: Financial review
Financial review Soumen Das Page no. 6 capitalandcounties.com Capital & Counties Properties PLC 2012 Interim Results ( d pc ®
Slide 7: Underlying earnings
Underlying earnings Highlights Net rental income Admin costs Net finance costs Tax on underlying earnings Underlying earnings Underlying earnings per share Interim dividend per share 34.1 (12.4) (13.7) (1.9) 6.1 0.9p 0.5p 36.7 (11.0) (17.7) (1.8) 6.2 1.0p 0.5p (2.6) (1.4) 4.0 (0.1) (0.1) (0.1)p Capi
Slide 8: Net rental income
Net rental income LfL-4.9 % LEL -4.9% £50m £40m £1.5m Es £2.6m £0.5m £30m £20m £10m ° H1 2011 Covent Garden EC&O GCP Non like-for-like H1 2012 © EC&O Venues EBITDA £8.0 million down 26% (it) Page no.8 capitalandcounties.com Capital & Counties Properties PLC 2012 Interim Results ( d pc ®
Slide 9: Balance sheet
Balance sheet Portfolio value 1,621 1,617 4 Investments 6 20 (14) Net debt (397) (464) 67 Other assets and liabilities (43) (70) 27 NAV 1,187 1,103 84 EPRA adjusted NAV 1,232 1,145 87 EPRA adjusted diluted NAV per share 177p 166p llp Number of shares in issue 684.5m 683.9m 0.6m © Diluted EPRA NNNAV
Slide 10: EPRA adjusted diluted net assets per share
EPRA adjusted diluted net assets per share NAV +6.8 % to 177p 180p 175p 170p 165p 160p 155p 150p 145p 140p Dec-11 Valuation Underlying Profit on Dividend Exceptional Tax & other Jun-12 surplus profits property finance items disposals Page no. 10 capitalandcounties.com Capital & Counties Properties P
Slide 11: Debt and cost of debt
1 Proforma cost of debt post GCP reprofiling of swaps 4.5% 2On fully drawn basis
Slide 12: Cash utilisation H1 2012
Cash utilisation H1 2012 Substantial liquidity from internal resources £300m £250m £125.1m £200m £150m £6.1m £100m £50m Dec-11 Operations Disposals Acquisitions Capex Dividend Other repaid © Circa £105 million of proceeds (net of debt paydown) to be received in H2 2012 * £38 million net proceeds fro
Slide 13: Recycling capital
Recycling capital Cash movement since December 2009 £96.6m £600m £256.9m £500m £114.6m £400m 1 a £300m £10.9m £57.8m — £248.3m £200m Undrawn Facilities £100m £195.0m ° Dec-09 Operations Disposals Capital Acquisitions Capex Dividend Other Net borrowings Jun-12 Cash Balance raise repaid Liquidity Page
Slide 14: Operating review
Operating review Ian Hawksworth and Gary Yardley Page no.14 capitalandcounties.com Capital & Counties Properties PLC 2012 Interim Results ( d pc ®
Slide 15: Valuation
Valuation Strong Hi 2012 valuation +4.8% a) Covent Garden 855.6 808.0 4.5% 2.3% © 3.7% 5.2% GcP 158.8 241.3 7.1% 9.2% 3.4% 5.2% EC&0 620.0 573.5 4.6% 14.6% Other 3.0 1.2 Total properties 1,637.4 1,624.0 4.8% 5.3% | Represents Capco's 50% share where applicable 2 Valuation change takes account of amo
Slide 16: Capco's Covent Garden Estate Holdings
Capco’s Covent Garden Estate Holdings Acquisitions in 2012 Assets held at Dec 11
Slide 17: Covent Garden
Covent Garden Estate performance Hi1 2012 © Value £856 million +4.5% «wy Value £900m £856m © ERV £47.1 million +2.3% wy © NR £15.7 million +12.1% wy 700m © Fooftfall robust at 44 million * 89% ABCis (UK visitors) £500m 2009 «= 2010HT = 2010S 2011H1-— 2011S sd. 2012 © Adjusted occupancy 99.3% ERV © 3
Slide 18: Covent Garden: Changing the retail and F&B line up
Covent Garden Changing the retail and F&B line up auinad® YUOMIAAD ght Jo MALONE ] Futtons Po 1) eAlTiAZan “Fr CHANEL — ae | aed | melissa | | MEAT SQ Uanchi ed iz S market NA parc eind HACKETT LONDON Capital & Counties Properties PLC 2012 Interim Results ( d pc ® Page no. 18 capitalandcounties.com
Slide 19: Covent Garden: Key letting transactions
Covent Garden Key letting transactions Hackett * New concept store on King Street * Zone A £600 psf Jo Malone * New flagship offer * 76% above previous passing rent Tuttons * Sale of business to operator * Significant refurbishment * 23% above previous passing rent Jamie’s Union Jacks * Bespoke offe
Slide 20: Gross income note
Note: Gross income = passing rent + non-leased income
Slide 21: Rental levels by street comparison
* Based on 30ft Zone A, includes Bond St, Oxford St and Regent St (Covent Garden based on 20ft Zone A) ** Covent Garden average based on all retail units along given streets & Market Building- Source CBRE
Slide 22: The Henrietta (34 Henrietta Street)
The Henrietta (34 Henrietta Street)
Slide 23: The Great Capital Partnership
The Great Capital Partnership Creating value, recycling liquidity © £102 million disposals in H1 2012 (capco share) Circa 8.5% above December 2011 valuation © £60 million (Copco share} disposal to GPE of Jermyn Street estate in July 2012 © Further sales underway © Positive valuation gain in H1 2012
Slide 24: China
China Investment value £5.6 million © Last asset to be contracted for sale in H2 2012 © Remaining capital to be returned over next 6 — 12 months Value uplift and realisation £70m £60m £50m £40m Valuation gain 2011 2012 ytd Jun-12 \ ) Y Cash realised Capital & Counties Properties PLC 2012 Interim Res
Slide 25: Earls Court and Olympia: Strategy
Earls Court and Olympia Strategy © Invest in improvements to Olympia to maintain income from exhibition business © Secure planning consents for Sir Terry Farrell’s Masterplan © Finalise TfL lease extension and LBHF land agreement © Establish development framework and CGI Eats Court Masten realisatio
Slide 26: Earls Court and Olympia valuation
1 Valuation change takes account of amortisation of lease incentives, capital expenditure and fixed head leases 2 Like-for-like 3 Comprising Maclise Road, G Gate, Empress Place, Cluny Mews and Old Brompton Road
Slide 27: Olympia exhibitions: Toy Fair, Poster Competition
Toy Fair, 2012 125th Anniversary Poster Competition, at Spirit Exhibition 2012
Slide 28: The Earls Court Masterplan: Milestones
The Earls Court Masterplan Milestones ECOA and Seagrave Road planning applications submitted LBHF leader states that a comprehensive approach is the “best way forward” 24 stage consultation LBHF consults on SPD adopted launched on preferred inclusion of the estates by LBHF and option for the SPD RBK
Slide 29: Significant Earls Court land ownerships
• • • • • • Significant Earls Court land ownerships • Earls Court, TfL Seagrave Road, • Roxby Place • Empress State LBHF Building
Slide 30: Seagrave Road
Seagrave Road Planning consent received, joint venture to complete © 1 million sq ft gross external area of high quality | space * 608 private units, 200 affordable centred around a garden square * 550,000 sq ft saleable area © Detailed planning consent received © Valuation £134.9 million as at June
Slide 31: Outlook
Outlook Positive momentum continues © Central London real estate market likely to remain positive and active * Impact of Olympics © Macroeconomic risks remain © Covent Garden * Further ERV growth and letting activity anticipated * Consider larger interventions © Earls Court * Secure planning consent
Slide 32: Slide 32
Slide 33: Appendices
Appendices Financial covenants Earls Court Covent Garden GCP © 0 8 8 0 Taxation Page no. 33 capitalandcounties.com Capital & Counties Properties PLC 2012 Interim Results ( d pc ®
Slide 34: Financial covenants
Financial covenants 2013 Empress State 2013 GCP 2016 Covent Garden 2017 Covent Garden 2017 Covent Garden RCF ‘As at 30 June 2012 ? Based on latest certified figures 150 112 Page no. 34 capitalandcounties.com Capital & Counties Properties PLC 2012 Interim Results capco
Slide 35: Four Urban Villages and a 21st Century High Street
• • Four Urban Villages and a 21st Century High Street 1. Earls Court Village 4. West Kensington Village 2. West Brompton Village 21st Century High Street * Financial Times, 22 June 2011 3. North End Village Seagrave Road
Slide 36: Covent Garden: Zoning plan
Covent Garden Zoning plan * Long Acre/James St/ROH SY ¢ Stylish mid-market * Floral St + Boutique * King St 4 * Contemporary luxury \ * Southampton St N * Outdoor specialists * Market Building (= » + Independents, specialists and casual dining * Russell St/Maiden Lane/Henrietta * Food and dining A a
Slide 37: Covent Garden: Portfolio statistics
Covent Garden Portfolio statistics Lease expiry profile-(WALE 7.7 years) 6% 9% 16% m2012 2013 54% 2014 m2015, 15% 2016+ Portfolio by value (£856m) Annual gross income (£34.4m) —————————— 18% 3% 2% 62% = Retail m Offices 15% = Residential Leisure F4+B By floor area (806k sq ft) 16% 23% aK 58% 13% . 3
Slide 38: The Great Capital Partnership: Portfolio statistics
The Great Capital Partnership Portfolio statistics Lease expiry profile - (WALE 8.3years) 4% 7% 15% 2012, 2013 48% 2014 2015, 26% 2016+ Portfolio by value (£159m) 6% 26% Retail mOffices = Residential 68% Annual gross income (£6.3m) SS 3% 33% mRetail m Offices w Residential By floor area (379k sq ft)
Slide 39: Taxation
Taxation Summary © Tax on income ¢ Forecast underlying tax rate of 24% for 2012 (corporation tax rate of 24.5% in 2012 to reduce to 22% by 2014). « Expected medium-term underlying tax rate between 20% and 22% on underlying earnings © Tax on capital gains + Following the 2™4 anniversary of Capco leav
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