British Land Company PLC · LSE:BLND
British Land — Shareholder Meeting (July 2012)
20 slides from British Land's shareholder meeting presentation, Jul 13, 2012
Slide 1: Annual General Meeting
ANNUAL GENERAL MEETING 13 July 2012 www.britishland.com
Slide 2: Chris Gibson-Smith, Chairman
CHRIS GIBSON‐SMITH Chairman
Slide 3: The UK Economy
The UK Economy UK GDP Growth – Year‐on‐Year 6% 4% 2% 0% ‐2% ‐4% ‐6% ‐8% Q1 07 Q3 07 Q1 08 Q3 08 Q1 09 Q3 09 Q1 10 Q3 10 Q1 11 Q3 11 Q1 12 Austerity at Home and Renewed Eurozone Concerns
Slide 4: Financial Highlights
Financial Highlights Y/E 31 March 2012 Change Net Rental Income £546m +5.4% Underlying PBT £269m +5.1% Dividend per share 26.1p +0.4% Valuation £10.3bn +2.6% NAV per share 595p +4.9% Good Progress in More Challenging Markets
Slide 5: Property Level Performance in 2011/12
Property Level Performance in 2011/12 Property Performance vs Y/E 31 March BL Index Property Index Rental Values (ERVs) 2.1% 0.5% +160 bps Capital Returns 3.0% 0.5% +250 bps Total Property Returns 8.3% 6.3% +200 bps Significant Outperformance at the Asset Level
Slide 6: Delivering Superior Total Returns
Delivering Superior Total Returns • Announced 1.5% increase in the quarterly dividend to 6.6 pence per share Total Accounting Return Net Asset Value Growth 4.9% Dividend 4.6% Total Return 9.5% Dividend Yield of 5.1%, 16th Highest in FTSE 100
Slide 7: Delivering Superior Total Returns
Delivering Superior Total Returns 31 March 1 year 2 years 3 years Total Accounting Return 9.5% 28.9% 71.6% Total Shareholder Return ‐8.6% 12.0% 56.4% Accounting Return a Good Proxy for Total Shareholder Returns
Slide 8: Chris Grigg, Chief Executive
7, British Land CHRIS GRIGG Chief Executive
Slide 9: Our Vision
Our Vision VISION To Build the Best REIT in Europe DELIVERY Asset Level Outperformance High Return on Capital To Deliver Superior Returns Over Time
Slide 10: Five Key Priorities
Five Key Priorities 1. Sustainable and growing income 2. Assets which protect and grow capital value 3. Creating incremental value 4. Controlling costs 5. Exploiting our scale and financial strength To Drive Superior Performance
Slide 11: Our Strategic Priorities
Our Strategic Priorities Key Priorities Long‐Term Short‐Term Decisions Actions Guiding our Long‐Term Decisions and Short‐Term Actions
Slide 12: Our Long-Term Decisions
Our Long‐Term Decisions Sector Choice Retail and London Offices Scale Overall and in key sectors Efficient Capital Structure To drive returns Adding Value Not just about asset management Translating Priorities
Slide 13: Our Short-Term Actions
Our Short‐Term Actions Lease extensions Sharpen Focus on Income Improving ERVs Drake Circus Accretive Acquisitions Maidenhead Capitalised on Development Decisions Leading the market in pre‐lets Successful Financings £2bn raised Increased Pace of Recycling £100m of sales Translating Priorities into A
Slide 14: Sharpened Focus on Income
Sharpened Focus on Income • £882 million of acquisitions over last 2 years • 1 million sq ft of retail lettings and renewals Maidenhead Virgin Active • 1 million sq ft of office lettings/lease extensions in investment portfolio • £10.0m of new annual rent – Total Lettings and renewals at 6% ahead of
Slide 15: Well-timed Developments
Well‐timed Developments The Leadenhall Building 10, Brock Street, NEQ 5 Broadgate Pre‐lets Secure Annual Income of £34m: 20 Year Average Term
Slide 16: Incremental Value – The Virgin Active Example
Incremental Value – The Virgin Active Example • Exploit our deal skills – Quality leisure operation – Strong asset backing – Attractive income (NIY of 7.3%) – Long leases (25 years) • Early recycling – 5 clubs sold to institutions – 18% premium to purchase price Virgin Active Portfolio Purchased fro
Slide 17: Successful, Well-timed Financings
Successful, Well‐timed Financings • £2bn of unsecured and secured refinancing • Few property companies with comparable access to debt markets • Taking advantage of our size and strength Refinancing and Reducing Cost of Debt
Slide 18: Chris Gibson-Smith, Chairman
CHRIS GIBSON‐SMITH Chairman
Slide 19: Outlook
Outlook • Markets remain challenging, especially in Retail • Quick turnaround in economy unlikely • British Land continues to be well placed Building the Best REIT in Europe
Slide 20: Annual General Meeting
ANNUAL GENERAL MEETING 13 July 2012 www.britishland.com