Slide 1: Results for the Half Year 30 September 2011
Results for the Half Year 30 September 2011
Slide 2: Agenda
Agenda Introduction Harry Platt Financial Performance Graham Clemett Outlook Harry Platt 1
Slide 3: Welcome to Kennington Park
> Welcome to Kennington Park Home to the entrepreneur:
Slide 4: Our Market
+ Our Market OQ 6 BS q ~ © Se Home to the entrepreneur:
Slide 5: Priorities and Strategy
Priorities and Strategy Priorities - to continue to drive occupancy and rental income - to maximise value from the property portfolio - to utilise and exploit our brand fully Portfolio Strategies - redevelopment and repositioning of existing properties - portfolio activity (acquisitions/disposals) -
Slide 6: Trading
Trading September March 2011 2011 Occupancy (like-for-like) 87.4% 86.2% Rent Roll (like-for-like) £43.9m £42.9m Rent per sq ft (like-for-like) £12.17 £12.01 Overall occupancy 85.2% 83.6% Overall rent roll £50.0m £48.9m 5
Slide 7: Refurbishment & Repositioning
Refurbishment & Repositioning 6
Slide 8: Portfolio Activity
Portfolio Activity Acquisitions (BWPT) - Completed £5m - In legals £5m - Offers out £26m Disposals - Completed £9m - Exchanged £3m - In legals £4m New for Old - Aberdeen Studios, Islington In legals 7
Slide 9: Financial Highlights
Financial Highlights September September 2011 2010 Growth Trading Profit after Interest £7.6m £6.6m +15% Interim Dividend per Share 2.93p 2.66p +10% Property Valuation £733m £732m +5% (underlying) Net Debt £(310)m £(397)m £87m decrease LTV 42% 54% EPRA NAV per Share £2.90 £2.68 +8% 8
Slide 10: Financial Performance
Financial Performance Graham Clemett 9
Slide 11: Income Statement
Income Statement September September £m 2011 2010 Growth Net Rental Income 22.6 22.9 Admin Expenses (5.2) (5.1) Net Interest (9.8) (11.2) Trading Profit after Interest 7.6 6.6 +15% Property Valuation Movement 16.2 14.1 Interest Rate Derivative Movement (6.9) (3.9) Other Items 0.0 1.2 Profit before T
Slide 12: Trading Profit after Interest
Trading Profit after Interest Movement in Property Valuation 11
Slide 13: Occupancy
Occupancy 30% 35% 40% 45% 50% 55% 60% 65% 70% 75% 80% 85% 90% 95% 100% 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 Like-for-like Occupancy 48 49 50 51 52 53 Sep 11 Sep 10 54 55 56 57 58 59 60 61 62 63 64 Denotes
Slide 14: Like-for-like Occupancy & Pricing Trends
Like-for-like Occupancy & Pricing Trends 13
Slide 15: Cashflow
Cashflow £m Trading Cashflow from Operations 7 1 Dividends (6) Rights Issue 63 Net proceeds 63 Other Property Related Disposals 9 1 Capital Expenditure (8) Other (including Financing) Restricted Cash (5) (8) Refinancing Costs (2) Other (1) Net cashflow 57 Opening Net Debt (367) Closing Net Debt (310
Slide 16: Balance Sheet
Balance Sheet September March September £m 2011 2011 2010 Property Valuation 733 719 732 Investment in Joint Venture 7 7 - Net Debt (310) (367) (397) Hedging (16) (11) (22) Other Assets/Liabilities (7) (14) (13) Net Assets 407 334 300 EPRA NAV per share* £2.90 £2.86 £2.68 Loan to Value 42% 50% 54% *
Slide 17: Debt Analysis
Debt Analysis September March 2011 2011 Cash Deposits £30m - Drawn Debt £(340)m £(367)m LTV 42% 50% % Hedged 76% 74% Average Interest Cost 5.2% 5.3% Headroom (including cash) £87m £30m Maturity Facility Type Facility Amount Drawn Amount Margin Lloyds BoS Dec 2014 Term £68m £68m 1.25% Bayern Club Jun
Slide 18: Movement in Property Valuation
Movement in Property Valuation Movement in Property Valuation 17
Slide 19: Breakdown of Property Valuation
Breakdown of Property Valuation September March September 2011 2011 2010 Cash rent roll £50.0m £48.9m £51.0m Existing use valuation £653m £640m £670m Existing use income yield 7.7% 7.7% 7.6% Added value £80m £79m £62m ERV £65.2m £61.4m £65.6m ERV at 90% occupancy £58.7m £55.3m £59.0m 18
Slide 20: Constituents of Added Value
Constituents of Added Value £m Added Value at March 2011 79 Disposals (8) Uplift – Aberdeen Studios 6 Uplift – Wandsworth 2 Other 1 Added Value at September 2011 80 19
Slide 21: BlackRock Workspace Property Trust
BlackRock Workspace Property Trust • Set up in February 2011, seeded with 8 properties from Workspace • Equity capacity for a further £65m of property acquisitions • Focus is on multi-let office and industrial buildings in and around London • Assessed a wide range of opportunities • Recently complet
Slide 22: Drivers of Future Growth
Drivers of Future Growth Acquisitions + Mixed Use Schemes Occupancy + Pricing Refurbishments + Core Like-for-Like Portfolio London 21
Slide 23: Outlook
Outlook Home to the entrepreneur: workspacegroup.co.uk Harry Platt Alii” Workspace Group 22
Slide 24: Current Trading
> Current Trading Enquiries AON-b0 + 390-82 } 390-12 t 20-bb ~O-L0 ercose das-oe das-ez das-91 das-60 das-z0 + Snw-9z t Snv-61 t Sny-z4 Bny-so Inr-6z Inr-2z Int-sb inr-80 i E ; AON-bO 0-82 pore ~O-bh 0-20 das-o¢ das-ez das-91 das-60 das-zo Bny-92 Bny-61 Bny-Z) Bny-so Inr-6Z Inr-2z Ine-Sh Inr-80 work
Slide 25: Brand: Initiatives
Brand: Initiatives At the Leathermarket At Clerkenwell 24
Slide 26: Finally
................... Finally 25
Slide 27: Appendix
APPENDIX Alii” Home to the entrepreneur: workspacegroup.co.uk Workspace Group
Slide 28: Refurbishment Programme Update – November 2011
REFURBISHMENT PROGRAMME UPDATE – November 2011 Phasing Estimated Expected Estimated Refurbished Lost New Property Type Description of Scheme capex start duration space space space Sq. Ft. Sq. Ft. Sq. Ft. Whitechapel, E1 Offices Extension to existing office building - £1m Underway Jun-12 - (3,000) 9,