British Land Company Plc · LSE:BLND

British Land — Investor Presentation (January 2025)

15 slides from British Land's investor presentation, Jan 10, 2025

  1. Slide 1: Barclays Retail Tour, Nugent, Orpington

    10 JANUARY 2025 B A R C L AY S R E TA I L TO U R N U G E N T, O R P I N GTO N

  2. Slide 2: Overview

    01 OV E RV I E W BEN GROSE HEAD OF RETAIL LEASING & LOGISTICS Elliott’s Field Retail Park, Rugby BARCLAYS TOUR | 10 JANUARY 2025 PG.2

  3. Slide 3: Since 2021 we have deployed £1.1bn into retail parks at attractive yields

    SINCE 2021 WE HAVE DEPLOYED £1.1BN INTO RETAIL PARKS AT ATTRACTIVE YIELDS PA R K S R E P R E S E N T O N E T H I R D O F B L P O R T F O L I O G AV 1 £1.1bn 29% 32% 25% Deployed into retail parks 22% since 2021 20% 15% 7.1% Net Initial Yield FY21 FY22 FY23 FY24 HY25 Pro Forma £441m Acquistion L A R

  4. Slide 4: Retailers are expanding onto retail parks

    RETAILERS ARE EXPANDING ONTO RETAIL PARKS W H Y R E TA I L E R S P R E F E R PA R K S N E T S TO R E TA K E U P ( 2 0 1 6 - J U N E 2 0 2 4 ) 2 AFFORDABILITY Low occupancy cost ratio: 8.9%1 UK RETAIL PARKS +733 units ACCESSIBILITY Highly efficient way for consumers to shop UK HIGH STREET -5,001 unit

  5. Slide 5: Supply of retail parks is restricted

    SUPPLY OF RETAIL PARKS IS RESTRICTED Construction volumes (m sq ft) CUMULATIVE RETAIL PARK CONSTRUCTION 1 90 5 < % RESTRICTED 80 O F R E TA I L PA R K S U P P LY D U E TO S U P P LY A D D E D I N PLANNING 70 LAST 10 YEARS 60 50 40 VA LU E S < 8% 30 R E P L AC E M E N T O F TOTA L 1 . 5 B N 20 CO S T

  6. Slide 6: Attractive forward-looking returns

    ATTRACTIVE FORWARD-LOOKING RETURNS STRONG OCCUPATIONAL FUNDAMENTALS 6-7% Net Equivalent Yield AT T R A C T I V E Y I E L D S OF 6-7% 3-5% ERV growth LIMITED CAPEX REQUIREMENTS LIQUIDITY Double digit Ungeared IRRs R E TA I L PA R K S H AV E B E E N B E S T P E R F O R M I N G S U B S E C TO R I N U K

  7. Slide 7: We have a unique retail park portfolio

    WE HAVE A UNIQUE RETAIL PARK PORTFOLIO LARGEST OWNER AND OPERATOR OF RETAIL PARKS − Ability to negotiate portfolio deals − Provides us with deep market insight HIGH QUALITY PORTFOLIO IN EXCELLENT LOCATIONS − Implemented well targeted, low level capex initiatives − Market leading footfall and sales,

  8. Slide 8: Three key retail park categories

    THREE KEY RETAIL PARK CATEGORIES BULKY GOODS SHOPPING PARKS HYBRID Solartron, Farnborough Glasgow Fort Nugent, Orpington − Mid-size − First generation − Largest format − Wide retailer mix including − Furniture, homeware and DIY − Similar retailer mix to shopping discounters and omni channel centres

  9. Slide 9: A diverse and resilient occupier profile

    A DIVERSE AND RESILIENT OCCUPIER PROFILE TOP 20 OCCUPIERS 1 RETAIL PARK OCCUPIER SPLIT BY CATEGORY As at 30 September 2024 % of Retail rent (% OF RENT) Next 5.2 Walgreens (Boots) 4.4 2% M&S 4.4 Other Business TJX (TK Maxx) 3.2 Currys Plc 3.1 6% Kingfisher 2.6 Grocery & Convenience 33% JD Sports 2.6

  10. Slide 10: Resilient format: case study Carpetright

    RESILIENT FORMAT CASE STUDY: CARPETRIGHT 100% OF STORES LET, UNDER OFFER OR IN NEGOTIATIONS − Administration announced in July 2024 − British Land exposure: 7 stores, £1.5m rent1 − 2 stores assigned to Tapi − Remaining stores under offer or in negotiations Waterlooville 1. British Land share as at S

  11. Slide 11: Nugent, Orpington

    01 N U G E N T, O R P I N GTO N ZEBA ALEEM ASSET MANAGER Nugent, Orpington PG.11

  12. Slide 12: Nugent 2018

    NUGENT 2018: STRONG FUNDAMENTALS − Excellent Greater London location − Affluent catchment area LIMITED DIVERSITY OF RETAILERS − Heavily focussed on fashion brands − Exposed to weaker covenants FOOTFALL & SALES − Footfall: 3.2m p.a. − Total Sales: £51.6m p.a. BARCLAYS TOUR | 10 JANUARY 2025 CVA’s / A

  13. Slide 13: Nugent today

    NUGENT TODAY DIVERSE, ONLINE RESILIENT RETAILER BASE − Better mix of leisure and F&B − Introduction of essential health − Regeared & upsized M&S INCREASED FOOTFALL AND SALES − Footfall: 3.5m p.a. (+9% vs 2018) − Sales: £58.5m p.a. (+13% vs M&S 2018) extension − ERV growth: +18.0% over 24 months BARC

  14. Slide 14: ESG considerations at our retail parks

    ESG CONSIDERATIONS AT OUR RETAIL PARKS 70% OF RETAIL PARKS EPC A & B RATED − Majority of interventions completed in shared spaces − Focus shifting to store units, requiring customer collaboration − Developing fit-out guidance and new lease clauses to facilitate process INCREASINGLY USING DATA TO MON

  15. Slide 15: Questions

    Confidential QUESTIONS

British Land Company — Investor Presentation (January 2025) on 6ix