British Land Company PLC · LSE:BLND
British Land — Shareholder Meeting (July 2018)
25 slides from British Land's shareholder meeting presentation, Jul 17, 2018
Slide 1: Annual General Meeting
Annual General Meeting 17 July 2018 www.britishland.com @BritishLandPLC
Slide 2: A year of progress
A year of progress John Gildersleeve, Chairman
Slide 3: Robust financial performance
Robust financial performance • Net asset value (NAV) up 5.7% to 967p Meadowhall – Valuation uplift of 2.2% – 15p impact of buyback • 2.4m sq ft lettings and renewals – 8.2% ahead of estimated rental value (ERV) – Occupancy at 97% at March 2018 • Underlying profit down 2.6% to £380m – Despite £1.5bn
Slide 4: London Offices: Strong leasing activity
London Offices: Strong leasing activity • Lettings and renewals of 1.2m sq ft Regent’s Place – 4-times area achieved in FY17 – Meaningful activity at each campus – 5.6% ahead of ERV – Occupancy now 98% • 310,000 sq ft pre-let to Dentsu Aegis – At 1 Triton Square, Regent’s Place – Largest West End pr
Slide 5: Retail: operational outperformance
Retail: operational outperformance • Leasing activity of 1.2m sq ft Teesside, Stockton – Terms 10.3% ahead of ERV – Incentives stable • Operational outperformance – Retailer sales -1.6%; 130 bps ahead of benchmark – Footfall +0.3%; 340 bps ahead of benchmark • Challenging market – Admins and CVAs no
Slide 6: Transforming the shape of our business
Transforming the shape of our business Bank 3% Increase in London 41% as a % of Portfolio 57% exposure reduced to: March 2010 Current TMT 9% Increase in West End 35% 69% as a % of Offices exposure increased to: March 2010 Current 4bn Offices as a % 33% of Portfolio 47% Assets close to Crossrail: £ M
Slide 7: Our London campuses
Our London campuses 4.2m sq ft 78% Our campuses account for 77% of our offices portfolio Note: Following the sale of 5 Broadgate in June 18 7
Slide 8: Transforming Broadgate
_ Transforming Broadgate
Slide 9: 100 Liverpool Street
100 Liverpool Street 100 Liverpool Street • 522,000 sq ft redevelopment • 160,000 sq ft pre-let to SMBCE 9
Slide 10: 1 Finsbury Avenue
1 Finsbury Avenue 1 Finsbury Avenue • 291,000 sq ft refurbishment • 79,000 sq ft pre-let to Mimecast 10
Slide 11: 135 Bishopsgate
135 Bishopsgate 135 Bishopsgate • 328,000 sq ft refurbishment • 311,000 sq ft let/under offer 11
Slide 12: Storey successfully launched across all three campuses
Delivering Storey Appold Street 77% occupancy 48% premium to ERV 2 Finsbury Avenue 4 Kingdom Street Storey successfully launched across all three campuses 12
Slide 13: Dividend increased
Dividend increased 100 Liverpool Street 1 Triton Square 2018/19 dividend +3% reflecting our confidence in our business 13
Slide 14: Future British Land
Future British Land Chris Grigg, Chief Executive
Slide 15: Disciplined use of capital
Disciplined use of capital Regent’s Place • A proactive year, including: – Sale of the Leadenhall Building crystallising £575m; 24% premium to book – £419m retail sales – £252m development and capital spend – £206m acquisitions, primarily mixed use, regeneration opportunities – £300m share buyback a
Slide 16: De-risked development pipeline focused on campuses
De-risked development pipeline focused on campuses Eden Walk, Kingston Meadowhall Leisure 533,00 sq ft 330,00 sq ft 135 Bishopsgate 1 Triton Square 328,000 sq ft 366,000 sq ft Completion Q2 2019 Completion Q4 2020 5 Kingdom Street Blossom Street, Shoreditch 332,00 sq ft 340,000 sq ft 1 Finsbury Aven
Slide 17: Further good progress at Canada Water
Further good progress at Canada Water • Good progress this year Canada Water – Master Development Agreement signed, May 2018 – Planning application submitted simultaneously – Includes detailed planning on three buildings in Phase 1 • Local community engagement central to our approach – 10,000 people
Slide 18: Future British Land
Future FutureBritish BritishLand Land
Slide 19: Future British Land: increasingly mixed use
Future British Land: increasingly mixed use Mixed Use places to work, shop and live Offices Retail Build to Rent Customer focus Operational expertise 19
Slide 20: The highest quality offices, focused on our campuses
The highest quality offices, focused on our campuses • Focus on our three London campuses 100 Liverpool Street – World class, sustainable and smart office space – Capitalising on location, connectivity – Integrated alongside high quality retail and leisure • Balanced offering – Mix of type of space
Slide 21: Further reshaping and refocused retail
Further reshaping and refocused retail • We have been proactive reshaping the Glasgow Fort portfolio – £2.3bn sales in four years – Significant refurbishments completed • We will further focus the business – Smaller number of assets – On average larger size – Both Regional and Local – Focus on quali
Slide 22: Residential will play an increasing role in our business
Residential will play an increasing role in our business Clear rationale… … with several options to build scale • Structurally growing and highly • Existing opportunities within fragmented market our portfolio • Complementary and additive – Canada Water (Phase 1 650 homes) to our existing business –
Slide 23: We will remain focused on our customers
We will remain focused on our customers World Class Customer Service Operational Expertise Informed Insights 23
Slide 24: Outlook & conclusions
Outlook & conclusions Broadgate • London Offices – Occupiers remain cautious – But are continuing to plan long term and commit to London – Supply of high quality new space is relatively constrained – Polarisation will gather pace – Expect demand for our space to remain firm • Retail – Market remains
Slide 25: Questions
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