British Land Company PLC · LSE:BLND
British Land — Shareholder Meeting (July 2015)
30 slides from British Land's shareholder meeting presentation, Jul 21, 2015
Slide 1: Annual General Meeting
Annual General Meeting 21 July 2015 www.britishland.com @britishlandplc
Slide 2: Introduction
Introduction John Gildersleeve Chairman
Slide 3: Long term outperformance
Long term outperformance Outperforming peers and the market on TSR Total shareholder return, year to 31 March % 140% 120% 100% 80% 60% 40% 20% 0% 1 year 3 years 5 years British Land Average (key peers) FTSE 100 Note: Key peers include Land Securities, Derwent London, Great Portland Estates, Hammerso
Slide 4: 2015 financial highlights
2015 financial highlights 48% 2-year total accounting return FY to 31 March 2015 Change NAV per Share 829p +20.5% Valuation £13.6bn +12.1% Total Property Return 18.4% Underlying Profit Before Tax £313m +5.4% Dividend per Share 27.7p +2.5% Total Accounting Return 24.5% 4
Slide 5: Exceptional leasing performance
Exceptional leasing performance 10% Investment lettings/ • Strong leasing volumes renewals vs ERV • Letting space on attractive terms • Good quality and diverse mix of occupiers • Strengthening rental trend; strong growth in Offices, notable improvement in Retail FY to 31 March 2015 Retail Office To
Slide 6: Office leasing – exceptional progress at Leadenhall
Office leasing – exceptional progress at Leadenhall £90psf 45 44 43 42 41 • Nearly 1m sq ft of lettings/renewals 40 39 Rental high 38 37 • Office occupancy 98.1% 36 35 34 • Leadenhall c.90% let/under offer 33 32 31 30 29 28 27 26 25 24 23 22 21 20 19 18 17 16 15 14 13 Let prior to 2014/15 12 11 10 9
Slide 7: Widening the appeal of Broadgate
Widening the appeal of Broadgate • £20 million redevelopment of Broadgate Circle completed • 5 Broadgate completed • Planning submitted on Blossom Street, Shoreditch and 1 Finsbury Avenue 7
Slide 8: Facebook at Regent's Place – a strong endorsement of the campus
Facebook at Regent’s Place – a strong endorsement of the campus • Facebook’s largest European hub • Total space over 150,000 sq ft • Rents nearly doubled 8
Slide 9: Making progress at Paddington Central
Making progress at Paddington Central • On site at 4 Kingdom Street • £210m acquisition of One Sheldon Square 9
Slide 10: Retail & Leisure leasing
Retail & Leisure leasing • Over 1m sq ft lettings/renewals • Further 348,000 sq ft under offer • Almost full occupancy at 98.5% 10
Slide 11: Operational metrics remain strong in retail
Operational metrics remain strong in retail Retailer same store sales Average dwell time Average LFL spend + 3.7% + 4.5% + 16% annualised Source: Springboard Source: BL consumer surveys Source: BL consumer surveys +5% affluent Footfall +1.9% Occupancy remaining shopper visits ahead of market by high
Slide 12: Investment driving performance – Meadowhall
Investment driving performance – Meadowhall • £3m upgrade attracting premium new brands • £50m refurbishment starting September 12
Slide 13: Investment driving performance – Ealing Broadway
Investment driving performance – Ealing Broadway • Acquired two adjoining properties • Phase 1 refurbishment completed • Submitted planning for wider refurbishment 13
Slide 14: £2.4bn investment activity – broadly balanced
£2.4bn investment activity – broadly balanced £960m acquisitions + £210m development capex £1.3bn disposals £135m Surrey Quays Leisure Park £123m additional superstore sales £245m further non core retail disposals £137m office disposals £210m 1 Sheldon Square £370m residential sales £169m HUT shoppi
Slide 15: Conclusion
Conclusion • Portfolio + 38% in 5 years • Gearing reduced to 36.5% • Increased London focus • Offices weighted towards West End • Concentrated in 3 campuses • Retail focused on large, multi-let assets, matching the way people shop • Well positioned for long term trends 15
Slide 16: Introduction
Introduction Chris Grigg Chief Executive
Slide 17: Macro trends driving our strategy
Macro trends driving our strategy Transforming impact Population growth of technology and urbanisation Importance of Sustainability infrastructure Globalisation 17
Slide 18: Creating great environments
Creating great environments 18
Slide 19: Growing in London and the south east
Growing in London and the south east 2010 London investment Ealing Broadway The Leadenhall Building 2015 London & South East Paddington Central Other 19
Slide 20: Investing around infrastructure
Investing around infrastructure £ bn 3 Assets close to Crossrail stations Crossrail route Blossom Street, Shoreditch Ealing Broadway The Leadenhall Paddington Central Building Broadgate Marble Arch House Clarges, Mayfair 10 Portman Square Regents Place 20
Slide 21: Customer Orientation – understanding our customers
Customer Orientation – understanding our customers Retailer sales data on nearly 90% Data from over 125,000 9m pa shopper surveys completed of multi-let assets hits to our websites Accurate footfall data from Understanding local demographics and all Cross-referencing Wi-fi data, social media, asset
Slide 22: Significant development pipeline
Significant development pipeline • Highly successful development programme since 2010 • Completed projects generated over £1bn of profit; an IRR of over 30% • Expected to generate £500m with around £330m still to come Sq Ft Total cost £m Estimated Profit m £m Completed developments (since 2010) 3.2
Slide 23: Developments under construction
Developments under construction 4 Kingdom Street Retail extensions Glasgow Fort, retail extension Whiteley, leisure extension Clarges Mayfair The Hempel 23
Slide 24: Near term pipeline
Near term pipeline 5 Kingdom Street Drake Circus, Plymouth Blossom Street, Shoreditch 100 Liverpool Street 24
Slide 25: Canada Water Masterplan
Canada Water Masterplan One of London’s largest regeneration opportunities Canada Water London 46 acres Opportunity Site controlled by area British Land with the London Borough of Southwark Well developed local infrastructure Up to 1m sq ft Retail, Leisure, Culture & Education Can create a new envir
Slide 26: Capital efficiency – strength of debt metrics
Capital efficiency – strength of debt metrics Proportionally Consolidated 31 Mar 2014 31 Mar 2015 Loan to Value (LTV) 40% 35% Average Interest Rate 4.1% 3.8% Interest Cover 2.5x 2.6x Average Maturity of Drawn Debt (years) 8.7 8.7 Group 31 Mar 2014 31 Mar 2015 Loan to Value (LTV) 29% 28% Available un
Slide 27: Outlook
Outlook • Outlook broadly in line with first half • Yields have tightened further • Some political uncertainty remains • Expect interest rates and inflation to remain low • Rental growth has strengthened • Strong growth in offices • Clearer growth trends in retail 27
Slide 28: Summary
Summary Meadowhall £50million refurbishment 28
Slide 29: Q&A
Q&A
Slide 30: Disclaimer
Disclaimer The information contained in this presentation has been extracted largely from the Full Year Results Announcement for the period ended 31 March 2015. This presentation may contain certain “forward-looking” statements. By their nature, forward-looking statements involve risk and uncertaint
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