British Land Company Plc · LSE:BLND
British Land — FY2020 Earnings Presentation
86 slides from British Land's earnings presentation, May 27, 2020
Slide 1: Full Year Results Presentation
Full Year Results Presentation Year ended 31 March 2020
Slide 2: Introduction
Introduction Chris Grigg, CEO 2
Slide 3: Resilient FY20 Performance
Resilient FY20 Performance • London offices leasing well – 946,000 sq ft, 9% ahead of ERV – Developments 88% let, locking in £54m of rent – Offices value +2.3%; developments +7.5% • Pragmatic approach to Retail leasing – 1.4m sq ft leasing activity – Deals over one year 4% below passing rent – Occup
Slide 4: Well positioned in uncertain times
Well positioned in uncertain times • Operating environment and outlook highly uncertain • Key market trends likely to accelerate – More flexible ways of working – Further shift to online retail • Strategy, focusing on campuses, informed by many of these trends – Modern buildings – Customer focused o
Slide 5: Covid-19 Response
Covid-19 Response • All but two Retail centres open – Essential stores open c. 15% of total • Campuses are open and all buildings accessible – Physical occupancy low – Most F&B, retail and leisure units closed • Work recommenced at developments following initial suspension – All major sites now open
Slide 6: Financial Results
Financial Results Simon Carter, CFO
Slide 7: Results Overview
Results Overview 32.7p 774p £ 11.2bn Underlying earnings EPRA Net Asset Value Portfolio valuation per share per share -10.1% vs March 19 -6.3% vs March 19 -14.5% vs March 19 (Retail -26.1%, Offices +2.3%) 34.0% £ 1.3bn 88% Loan to value Undrawn facilities and cash Committed and completed development
Slide 8: Underlying earnings per share
Underlying earnings per share Financing £6m (2.5p) Admin £7m 1.1p (1.5p) 1.4p (1.3p) 0.6p 34.9p 33.5p 32.7p 2019 Net divestment & Share buyback Excl. impact of Like for like Cost savings Covid-19 related IFRS 16 adoption 2020 development capital activity income incl. CVAs provisions for & fee income
Slide 9: Net rental income
Net rental income 1 £m (33) Offices +0.8%1 Retail –5.1%1 (14) (7) 532 (6) 3 3 478 2019 Net divestment Like for like incl. Tenant incentive Rental debtors IFRS 16 adoption Developments and 2020 CVAs and admins provisions provisions other 1 Like for like is stated excluding the impact of surrender pre
Slide 10: Income statement
Income statement Financial Year to 31 March 2019 2020 Change % Net rental income (£m) 532 478 (10.2%) Fees & other income (£m) 10 13 30.0% Administrative expenses (£m) (81) (74) (8.6%) Net finance costs (£m) (121) (111) (8.3%) Underlying Profit (£m) 340 306 (10.0%) Underlying earnings per share (p)
Slide 11: Dividend policy guidance
Dividend policy guidance • To protect the long term strength of the business, the dividend has been temporarily suspended in response to Covid-19 • As a REIT, the dividend is an important element of shareholder return • The Board is focussed on resuming dividends at an appropriate level as soon as t
Slide 12: EPRA net asset value
EPRA net asset value (137p) 33p (31p) 6p (2p) 905p 774p Mar 19 Valuation performance Underlying Dividends Share buyback Financing activity Mar 20 Profit 12
Slide 13: Valuation performance
Valuation performance Valuation Valuation Yield ERV £m movement movement movement Total 11,157 (10.1%) +38bps -4.7% Offices 6,773 2.3% -4bps +3.2% Retail 3,873 (26.1%) +101bps -11.7% Residential 147 (2.7%) Canada Water 364 9.8% 13
Slide 14: Office valuation performance
Office valuation performance 97% +2.3% Office Offices FY20 occupancy valuation movement Standing Portfolio Developments £5.8bn (+1.2%) £1.0bn (+7.5%) -4bps yield shift £83m valuation uplift +3.2% ERV growth £243m spend in period Market demand is expected to be softer in the short term, but supply fo
Slide 15: Retail Valuation Movements
Retail Valuation Movements -26.1% Retail FY20 valuation March ’20 movement Valuations (£’m) 1,600 Valuers’ Covid-19 adjustments 1,400 included: • 3 months rent on all non- 1,200 essential retail deducted as a capital sum 1,000 • Non-contractual income deducted 800 as a capital sum for 6 month period
Slide 16: CVAs & Admins
CVAs & Admins Annualised contracted rent impact by Quarter (£’m) Admins - stores closing 12 months: £13m 12 months: £11m Admins - reduced rents CVAs - stores closing 7.0 CVAs - reduced rents 6.0 5.0 4.0 3.0 2.0 1.0 0.0 Total FY18 Q1 FY19 Q2 FY19 Q3 FY19 Q4 FY19 Q1 FY20 Q2 FY20 Q3 FY20 Q4 FY20 16
Slide 17: Retail Leasing Overview
Retail Leasing Overview 96% Retail occupancy Grocery & Convenience - 62k sq ft - £0.9m headline rent Other Business - +5% vs passing - 28k sq ft - 14.0 years average lease term - £0.2m headline rent - 12 months average incentive - (13%) vs passing - 2.7 years average lease term - 1 month average inc
Slide 18: Footfall
Footfall British Land Footfall movement vs Benchmark1 BL Footfall Benchmark Outperformance (bps) % YoY +700 +420 +440 +460 +460 Grocery anchored assets: -70% -0.2 -0.2 -1.2 -4.4 -4.6 -5.8 -8.0 -12.6 -78 -85 FY20 Q1 FY20 Q2 FY20 Q3 FY20 Q4 Post lockdown 23 Mar - 10 May 1 ShopperTrak UK National Index
Slide 19: Retailer sales
Retailer sales British Land LfL sales movement vs Benchmark1 BL LfL Sales Benchmark Outperformance (bps) % YoY Grocery anchored +520 +310 +270 +460 assets: -42% -0.1 1.1 -1.1 -4.1 -3.2 -3.8 -8.4 -13.0 -82 FY20 Q1 FY20 Q2 FY20 Q3 FY20 Q4 Post lockdown 23 Mar - 10 May 1 BRC KPMG In-Store LFL Non-Food
Slide 20: Covid-19: Rent collection and deferrals
Covid-19: Rent collection and deferrals Rent due since 2 March to 30 April As at 15th May Offices Retail1 Total Received 97% 43% 68% Rent deferrals 1% 40% 22% Rent forgiven 1% 4% 3% Moved to monthly - 1% - Outstanding 1% 12% 7% Total 100% 100% 100% Collection of adjusted billing2 99% 78% 91% 1 Inclu
Slide 21: Our assessment of Covid-19 on our customers
Our assessment of Covid-19 on our customers Lower Impact Higher Impact Typical sectors: Typical sectors: • Global Technology • Food & Leisure • Financial Institutions • Fashion & Beauty • Professional & Corporate • General Retail • Grocery & Convenience • Travel & Media • Government • Home & DIY 93%
Slide 22: Strength of debt metrics
Strength of debt metrics 31 March 2019 31 March 2020 Undrawn Facilities and Cash £1.7bn £1.3bn No requirement to refinance until: 2022 2024 Loan to value (LTV)1 28.1% 34.0% Weighted Average Interest Rate1 2.9% 2.5% Interest Cover1 3.8x 3.8x Weighted Average Drawn Debt Maturity1 8.1yrs 7.5yrs Senior
Slide 23: 2020 Sustainability Targets – key achievements
2020 Sustainability Targets – key achievements • Achieved or exceeded – 73% reduction in carbon intensity (scope 1 and 2) vs 2009 baseline (target: 55%) – 55% reduction in landlord energy intensity vs 2009 baseline (target: 55%) – 1,745 people supported into jobs through Bright Lights, our skills an
Slide 24: New 2030 Environmental Commitments
New 2030 Environmental Commitments • Net zero carbon portfolio by 2030 – All future developments to be net zero embodied carbon – 50% less embodied carbon on all major developments by 2030 – 75% less operational carbon across our portfolio by 2030 • Transition fund established – From 2020 we will as
Slide 25: New 2030 Social Commitments
New 2030 Social Commitments • Place based approach – Partner with local stakeholders – Education and employment partnerships at each place – Underpinned by our Local Charter, comprising 5 key commitments to local communities • Piloting our approach at three locations, building on successful partners
Slide 26: Looking forward
Looking forward Chris Grigg, CEO
Slide 27: Offices – working with our customers to get back to work
Offices – working with our customers to get back to work • Occupiers focused on getting back to the office • Focus on transition to the “new abnormal”… – Occupancy will be phased and significantly reduced • …and in the “new normal” – Managing communal space, staggered hours of operation, more freque
Slide 28: Offices – early thoughts on potential long term trends
Offices – early thoughts on potential long term trends • Demand likely to focus on modern, high quality space – Particularly flagship (e.g. headquarter) space – Customers seeking more flexibility and focus on health/safety and well managed space – Further polarisation in terms of quality of space an
Slide 29: Retail, early thoughts on near and long term view
Retail, early thoughts on near and long term view • Use of online retail has accelerated • Changing consumer behaviour – Likely more “mission based” shopping – Less dwell time, less browsing – Challenges for leisure / experiential operators • Retail parks relatively better placed – Open air centres
Slide 30: Further good progress delivered at Canada Water
Further good progress delivered at Canada Water • Key planning milestones achieved – Resolution to grant outline planning for Masterplan – Confirmation that the Mayor of London will not call the application in for further consideration • Next steps – Expect to draw the headlease down over the summer
Slide 31: Outlook
Outlook • London Offices – Occupier demand likely to be softer short term – Supply of prime likely to remain constrained for some time with developments postponed or delayed – Expect demand for modern, high quality and well located space to remain firm – Expect investment market to recover as confid
Slide 32: Appendices
Appendices
Slide 33: A diverse, high quality portfolio £11.2bn
A diverse, high quality portfolio £11.2bn (BL share) Shopping Centres (14%) London Campuses (49%) 76% London & South East Retail Parks (16%) Standalone offices (11%) Other Retail (5%) Residential & Canada Water (5%) 33
Slide 34: Near and longer term challenges & implications
Near and longer term challenges & implications Retail Office • Open air, well located centres will play a key role • Return to work likely to be phased • Increase in “mission-based” shopping • Changes in commuting methods/patterns: • Reduced dwell time, less browsing travel is a key challenge • Like
Slide 35: Storey roll out
Storey roll out Current Locations Forthcoming Locations 35
Slide 36: Our Retail portfolio is well positioned to meet consumer and retailer demands
Our Retail portfolio is well positioned to meet both consumer and retailer demands BL centres Potential to reach Average rent to sales ratio2 c.50% BL asset catchments of the population2 9% Annual footfall1 of Occupancy 295m cost ratio2 Source: CACI Retail Footprint 2019, BL Insight team Note that p
Slide 37: BL footfall performance vs benchmark
BL footfall performance vs benchmark +460bps Outperformance for Jan-10 = 100 12m to Mar 2020 120 115 110 105 100 95 90 85 BL Index 80 75 70 65 60 55 50 45 Jan-10 Jul-10 Jan-11 Jul-11 Jan-12 Jul-12 Jan-13 Jul-13 Jan-14 Jul-14 Jan-15 Jul-15 Jan-16 Jul-16 Jan-17 Jul-17 Jan-18 Jul-18 Jan-19 Jul-19 Jan-2
Slide 38: Major retail property holdings
Major retail property holdings As at 31 March 2020 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 82 96.1 4.9 2 Drake's Circus, Plymouth 100 1,190 20 90.1 6.3 3 Glasgow Fort 78 510 20 96.1 5.7 4 Ealing Broadway 100 540 15 92.1 3.8
Slide 39: Areas of focus to deliver our strategy
Areas of focus to deliver our strategy British Land is a mixed use commercial property company focused on London offices and high quality retail Customer Orientation Right Places We use our insight into customers’ needs and We design engaging, sustainable places identify major long term trends to cr
Slide 40: Broadgate Campus
Broadgate Campus 2 FA & 3 FA • 2FA & 3FA - Innovation cluster inc. 51k sq ft of Storey space • 3FA – UBS surrendered lease in Jan 2018. ‘Light touch’ refurb completed • Current size: 250k sq ft • Potential size: 563k sq ft 1 FA • Pre-let 113k sq ft to Mimecast, 30k sq ft to Product Madness, 11k sq f
Slide 41: Paddington Central Campus
Paddington Central Campus 41
Slide 42: Regent's Place Campus
Regent’s Place Campus DRUMMOND STREET © BROCK STREET EUSTON prertre) STATION TRITON STREET PLACE ‘TRITON SQUARE PLAZA 2. mt fi & © | 2. EUSTON ROAD 2 e PORTLAND WARREN STREET STREET ow EUSTON SQUARE @ 2Triton street @ 1 Osnaburgh Street ® 1-8 Longford Street @) UKPN Substation ©) 1 Triton square © 1
Slide 43: Top occupiers & occupier split by industry
Top 20 occupiers & occupier split by industry Retail Top Occupiers Offices Top Occupiers Occupier Split by Industry (%) As at % of As at % of 31 March 2020 Retail 31 March 2020 Office Rent Rent Other 9% Fashion & Beauty 18% Tesco plc1 7.8 Facebook 7.8 Home & DIY 6% Next plc 4.9 Government 6.4 Kingfi
Slide 44: Capital Activity
Capital Activity Since 1 April 2019 Offices Retail Residential Canada Water Total £m £m £m £m £m Purchases 86 13 19 - 118 Sales1 - (296) (86) - (382) Development Spend 243 9 5 25 282 Capital Spend 69 34 - - 103 Net Investment 398 (240) (62) 25 121 Gross Investment 398 352 110 25 885 On a proportiona
Slide 45: Capital Activity £2.7bn
Capital Activity £2.7bn Gross investment activity since April 2018 Net Spend1 £m £45m (£502m) (£739m) (£752m) £121m 1,600 1,200 800 400 - (400) (800) (1,200) (1,600) (2,000) FY16 FY17 FY18 FY19 FY20 Sales Capital Investment Purchases Net Spend 1 Previous periods have been restated to exclude transac
Slide 46: Purchases
Purchases Since 1 April 2019 Sector Price Price Annual (100%) (BL Share) Passing Rent £m £m £m1 Completed West One, London Offices 217 54 2 6 Orsman Road, Haggerston Offices 32 32 2 Aldgate Place, Phase 2 Residential 19 19 - Former ToysRus unit, Stockton-on-Tees Retail 8 8 - Sainsbury’s, Burton upon
Slide 47: Sales
Sales Since 1 April 2019 Sector Price Price Annual (100%) (BL Share) Passing Rent £m £m £m1 Completed Portfolio of Sainsbury’s stores Retail 522 246 15 David Lloyd, Croydon Retail 22 22 1 Homebase, Walton on Thames Retail 20 20 1 Debenhams, Bournemouth Retail 8 8 1 Clarges2 Residential 86 86 - Total
Slide 48: Clarges Residential Unit Sales
Clarges Residential Unit Sales Number of units £m Completed in FY18 2 24 Completed in FY19 23 335 Completed in FY20 8 86 Total Completed 33 445 Units remaining 1 3 Total 34 448 48
Slide 49: Illustrative future income profile breakdown (cash basis)
Illustrative future income profile breakdown (cash basis) For the year to 31 March 2021 2022 2023 2024 2025 Total Accounting Basis As at 31 March 2020 £m £m £m £m £m £m Current Passing Rent 516 522 Contracted uplifts4 36 15 7 1 2 61 Pre-lets of Committed Developments1 15 22 - - - 37 31 Contracted re
Slide 50: Gross rental income
Gross rental income1 Accounting Basis £m 12 months to 31 March 2020 Annualised as at 31 March 2020 Group JVs & Funds Total Group JVs & Funds Total West End 155 1 156 144 2 146 City 15 69 84 7 63 70 Offices 170 70 240 151 65 216 Retail Parks 94 58 152 90 55 145 Shopping Centre 64 52 116 61 49 110 Sup
Slide 51: Underlying Profit Bridge
Underlying Profit Bridge £m (23) (14) 13 (7) (6) 340 3 317 306 2019 Net divestment & Excl. impact of Like for like incl. Cost savings Tenant incentive Rental debtors IFRS 16 adoption & 2020 developments capital activity CVAs and admins provisions provisions other 51
Slide 52: Administrative expenses
Administrative expenses Financial Year to 31 March 2019 2020 £m £m Personnel costs 54 50 Share scheme costs (3) (3) Other administrative expenses 36 33 Total 87 80 Capitalised costs (6) (6) Total administrative expenses 81 74 On a proportionally consolidated basis including the Group's share of Join
Slide 53: Operating costs metric
Operating costs metric Financial Year to 31 March 2019 2020 £m £m Property operating expenses 45 83 Administrative expenses 80 73 Net fees and other income (10) (13) Ground rent costs and operating expenses de facto included in rents (9) (16) EPRA Costs (including direct vacancy costs) 106 127 Gross
Slide 54: Reconciliation of Underlying Profit
Reconciliation of Underlying Profit Financial Year to 31 March 2019 2020 £m £m IFRS loss after tax attributable to shareholders (291) (1,027) Net valuation loss 683 1,389 Profit on disposal of investment and trading properties (77) (18) Capital financing costs 67 63 Non-controlling interests (41) (9
Slide 55: Number of shares
Number of shares As at 31 March 2019 31 March 2020 (m) (m) IFRS Basic Weighted average1 971 934 IFRS Diluted Weighted average2 971 934 Underlying/EPRA diluted Weighted average3 974 937 Year/Period end4 956 932 1 For use in IFRS basic earnings per share. 2 For use in IFRS diluted earnings per share.
Slide 56: EPRA balance sheet
EPRA balance sheet 31 March 2019 Group JVs & Funds 31 March 2020 Total properties (£m) 12,316 7,903 3,274 11,177 Adjusted net debt (£m) (3,521) (3,010) (844) (3,854) Other net liabilities (£m) (146) (50) (60) (110) EPRA Net Assets (£m) 8,649 4,843 2,370 7,213 Loan to value (LTV)1 28.1% 34.0% Weighte
Slide 57: Reconciliation of EPRA NAV & NNNAV
Reconciliation of EPRA NAV & NNNAV 31 March 2019 31 March 2020 £m Pence £m pence IFRS Net Assets 8,689 916 7,147 771 Deferred tax arising on revaluation movements 5 6 Mark to market on derivatives and related debt adjustments 113 141 Adjust to fully diluted on exercise of share options 24 18 Surplus
Slide 58: New EPRA Best Practice Recommendations
New EPRA Best Practice Recommendations EPRA published its latest Best Practices Recommendations in October 2019 which included three new Net Asset Valuation metrics, namely EPRA Net Reinstatement Value (NRV), EPRA Net Tangible Assets (NTA) and EPRA Net Disposal Value (NDV). These metrics are effecti
Slide 59: Gross and net debt reconciliation
Gross and net debt reconciliation As at 31 March 2020 Group JVs & Funds Less non- Total £m £m controlling £m interests £m Gross Debt (principal) (3,294) (977) 113 (4,158) IFRS adjustments: Issue costs and premia 11 2 (1) 12 Fair value hedge adjustments (222) - - (222) Other items 3 - - 3 IFRS gross
Slide 60: Loan to value (LTV)
Loan to value (LTV) As at Valuation Acquisitions Capital Disposals Share Other As at 31 March movement spend buyback 31 March 2019 2020 £m £m Total properties 12,316 (1,304) 119 386 (371) - 11 11,157 Other investments & 151 (12) - 11 (19) - - 131 PPE LTV assets 12,467 (1,316) 119 397 (390) - 11 11,2
Slide 61: Debt metrics
Debt metrics Proportionally Consolidated 31 March 2019 31 March 2020 Loan to value (LTV) 28.1% 34.0% Weighted average interest rate 2.9% 2.5% Interest cover 3.8x 3.8x Weighted average maturity of drawn debt 8.1yrs 7.5yrs Group 31 March 2019 31 March 2020 Loan to value (LTV) 22.2% 28.9% Available und
Slide 62: Debt maturity
Debt maturity £m 1,200 Bank RCFs Undrawn (Unsecured) 1,000 Bank RCFs Drawn (Unsecured) Debenture & Loan Notes (Secured) Convertible Bond (Unsecured) 800 Sterling Bond (Unsecured) US Private Placements (Unsecured) Funds – Bank Drawn (Secured) 600 JVs – Securitisations (Secured) 400 200 - 2021 2022 20
Slide 63: Debt financing – diverse profile
Debt financing – diverse profile • Issued £100m 2034 USPP floating rate note £4.2bn Drawn Debt1 (31 March 2020) • Completed first ESG linked RCF at £450m with initial 5 year term £0.4bn £0.7bn Bank RCFs Drawn • Extended additional £925m of committed bank facilities US Private Placements Convertible
Slide 64: Portfolio valuation by sector
Portfolio valuation by sector At 31 March 2020 Group JVs & Funds Total Change %1 £m £m £m H1 H2 FY West End 4,151 53 4,204 (0.1) 1.5 1.4 City 300 2,269 2,569 1.3 2.5 3.7 Offices 4,451 2,322 6,773 0.4 1.9 2.3 Retail Parks 1,115 724 1,839 (12.4) (18.8) (28.7) Shopping Centre 753 757 1,510 (11.8) (19.8
Slide 65: Valuation movement – Offices
Valuation movement – Offices Financial Year to 31 March 2020 Valuation Change Change Yield movement ERV movement £m £m %1 Bps2 %2 West End 4,204 59 1.4 - 2.4 City 2,569 92 3.7 (14) 4.5 Offices 6,773 151 2.3 (4) 3.2 Campuses represent 81% of the Offices portfolio 1 Valuation movement during the perio
Slide 66: Valuation movement – Retail
Valuation movement – Retail Financial Year to 31 March 2020 Valuation Change Change Yield movement ERV movement £m £m %1 bps2 %2 Retail Parks 1,839 (755) (28.7) +117 (13.6) Shopping Centre 1,510 (623) (29.2) +99 (10.2) Total 3,349 (1,378) (28.9) +109 (12.1) Other 524 (99) (11.2) +46 (8.4) Retail 3,8
Slide 67: Portfolio net yields
Portfolio net yields1,2 As at 31 March 2020 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 3.5 4.1 4.1 4.3 - 4.8 2.4 City 3.2 4.0 4.0 4.5 (
Slide 68: Portfolio weighting
Portfolio weighting As at 31 March 2020 2019 2020 2020 % % £m West End 33.0 37.7 4,204 City 18.2 23.0 2,569 Offices 51.2 60.7 6,773 Retail Parks 21.0 16.5 1,839 Shopping Centre 17.2 13.5 1,510 Superstores 2.7 0.8 89 Department Stores 0.6 0.3 33 High Street 1.4 1.2 134 Leisure 2.4 2.4 268 Retail 45.3
Slide 69: Lease length and occupancy
Lease length and occupancy As at 31 March 2020 Average Lease Length (yrs) Occupancy Rate (%) To Expiry To Break EPRA Occupancy Occupancy1,2,3 West End 6.4 5.4 97.6 97.7 City 7.5 6.3 85.4 96.6 Offices 6.8 5.7 92.9 97.3 Retail Parks 6.8 5.5 94.1 96.1 Shopping Centre 6.6 5.2 94.2 95.6 Superstores 6.9 6
Slide 70: Annualised rent & estimated rental value (ERV)
Annualised rent & estimated rental value (ERV) As at 31 March 2020 Annualised Rents ERV Average Rent (Valuation Basis) £m1 £m (£psf) Group JVs & Funds Total Total Contracted2 ERV West End3 136 2 138 191 62.8 69.4 City3 6 64 70 118 50.3 63.1 Offices3 142 66 208 309 58.0 66.9 Retail Parks 91 58 149 14
Slide 71: Rent subject to open market rent review
Rent subject to open market rent review For the year to 31 March 2021 2022 2023 2024 2025 2021–23 2021–25 As at 31 March 2020 £m £m £m £m £m £m £m West End 17 9 23 7 16 49 72 City 11 - - 15 11 11 37 Offices 28 9 23 22 27 60 109 Retail Parks 17 11 14 6 6 42 54 Shopping Centre 12 7 12 7 4 31 42 Supers
Slide 72: Rent subject to lease break or expiry
Rent subject to lease break or expiry For the year to 31 March 2021 2022 2023 2024 2025 2021-23 2021-25 As at 31 March 2020 £m £m £m £m £m £m £m West End 13 29 17 14 16 59 89 City 12 3 4 12 6 19 37 Offices 25 32 21 26 22 78 126 Retail Parks 17 11 16 25 12 44 81 Shopping Centre 14 14 14 14 7 42 63 Su
Slide 73: Contracted rental increases (cash flow basis)
Contracted rental increases (cash flow basis) For the year to 31 March 2021 2022 2023 2024 2025 2021-23 2021-25 As at 31 March 2020 £m £m £m £m £m £m £m Expiry of rent free periods 29 15 4 - - 48 48 Fixed uplifts (EPRA basis) 1 - - - - 1 1 Fixed & minimum uplifts - 1 3 - 2 4 6 Total 30 16 7 - 2 53 5
Slide 74: Total Property Return (as calculated by IPD)
Total Property Return (as calculated by IPD) 12 months to 31 March 2020 Offices Retail Total % British Land IPD British Land IPD British Land IPD Capital Return 2.5 (0.5) (27.3) (14.5) (10.3) (4.8) – ERV Growth 3.2 1.3 (11.7) (5.8) (4.7) (1.0) – Yield Movement1 (4 bps) (2 bps) 101 bps 59 bps 38 bps
Slide 75: De-risked development pipeline focused on campuses
De-risked development pipeline focused on campuses 2-3 Finsbury Avenue 135 Bishopsgate 1 Triton Square Aldgate Place, 563,000 sq ft 335,000 sq ft 366,000 sq ft Phase 2 Norton Folgate PC’d Q1 2020 Completion Q2 2021 133,000 sq ft 336,000 sq ft 1 Finsbury Avenue 100 Liverpool Street 287,000 sq ft 524,
Slide 76: Recently Completed & Committed developments
Recently Completed & Committed developments As at Sector BL Sq PC Current Cost to ERV Let & 31 March 2020 Share ft Calendar Value Come Under Year Offer % '000 £m £m1 £m2 £m 1 Finsbury Avenue Office 50 287 Q1 2019 171 - 8.3 7.0 135 Bishopsgate Office 50 335 Q1 2020 214 - 9.7 8.7 Plymouth (Leisure) Re
Slide 77: Near term development pipeline
Near term development pipeline As at Sector BL Sq ft Earliest Current Cost to ERV Let & Planning 31 March 2020 Share Start on Value Come Under Status Site Offer % '000 Calendar £m £m1 £m2 £m Year Near Term Pipeline Norton Folgate Office 100 336 Q3 2020 95 280 22.0 - Consented 1 Broadgate Office 50 5
Slide 78: Medium term development pipeline
Medium term development pipeline As at 31 March 2020 Sector BL Share Sq ft Planning status % '000 Medium term Pipeline 5 Kingdom Street1 Office 100 438 Submitted 2-3 Finsbury Avenue Office 50 563 Consented Eden Walk Retail & Residential Mixed Use 50 452 Consented Ealing – 10-40 The Broadway Retail 1
Slide 79: Estimated future development spend and capitalised interest
Estimated future development spend and capitalised interest As at 31 March 2020 PC Cost to Come £m Calendar (excluding notional interest) – 6 months breakdown Year Sept-20 Mar-21 Sept-21 Mar-22 Sept-22 Mar-23 Sept-23 Mar-24 Total Plymouth (Leisure) Q4 2019 2 - - - - - - - 2 Total Completed 2 - - - -
Slide 80: Canada Water – Illustrative Scheme
Canada Water – Illustrative Scheme First Masterplan detailed plots K1 Resolution to grant planning received 30th September 2019 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 0.7m 0.1m (sq ft) New Homes 3,000 265 (units) Buildings highlighted
Slide 81: 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 82: Central London development pipeline – delayed by Covid-19
Central London development pipeline – delayed by Covid-191 Completed Q2 2020 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 5.0m 4.0 4.2m 2.0 0.0 00 01 02 03 04
Slide 83: 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 5.2% 4 3.3% 2 0 1985 1990 1995 2000 2005 2010 2015 Q1 2020 Source: CBRE (historic) 83
Slide 84: 2020 Sustainability Targets: FY20 performance
2020 Sustainability Targets: FY20 performance FY20 2020 Target Futureproofing Achieved: 100% 100% of current new developments on track to achieve BREEAM Excellent/Very Good Capital efficiency Achieved: 55% 55% improvement in landlord energy efficiency vs 2009 baseline 96% 100% of electricity to come
Slide 85: Sustainability Indices Performance
Sustainability Indices Performance FY 2019 performance Other benchmarks and awards EPRA Sustainability Carbon Disclosure Project Global Real Estate Reporting Awards 2019: B Sustainability Benchmark 2019: Gold for 8th year 2018: A- 2019: Green star for 10th year Sustainalytics MSCI ESG Ratings ESG Ra
Slide 86: 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 2020. For the purpose of this document, references to "presentation" shall be deemed to include this document, the oral briefing provided by Br