Derwent London plc · LSE:DLN
Derwent London — H1 2013 Earnings Presentation
79 slides from Derwent London's earnings presentation, 2013
Slide 1: Derwent London plc Interim results 2013
Derwent London plc Interim results 2013
Slide 2: Contents
Contents Presenters: Contents: Page John Burns Introduction 2 Results and financial review 5 Simon Silver Valuation and portfolio analysis 18 Asset management and portfolio activity 25 Damian Wisniewski Projects 31 Outlook for central London property 39 Nigel George Outlook for Derwent London 44 Pau
Slide 3: Introduction
DERWENT LONDON Introduction John Burns
Slide 4: Highlights
Highlights ●● Strong results ◦◦ 8.9% NAV growth and 6.3% revaluation surplus since Dec 2012 ◦◦ EPRA PBT +5.7% on June 2012 ◦◦ DPS +8.0% on June 2012 ●● Three exceptional deals taking advantage of market conditions ◦◦ Pre-let 156,000 sq ft office space to Publicis Groupe ◦◦ Sold 1-5 Grosvenor Place S
Slide 5: Continuing to build on our growth platform
Continuing to build on our growth platform ●● Good demand for our space ◦◦ Let 500,000 sq ft space in H1 securing £15.5m of rent (7.3% above ERV) Update: The Buckley Building EC1 - 16,100 sq ft let to Tipp24 at £52.50 psf ●● Good progress on developments ◦◦ Completed 1 Page Street, The Buckley Build
Slide 6: Results and financial review
Results and financial review Damian Wisniewski 5
Slide 7: Headline numbers
Headline numbers Jun 2013 Dec 2012 Jun 2012 Total portfolio at fair value £3,103.7m £2,859.6m £2,728.4m EPRA net asset value per share 1 2,054p 1,886p 1,770p Gross property income £64.0m £124.8m £62.3m EPRA profit before tax 2 £28.0m £52.5m £26.5m EPRA earnings per share 25.95p 50.36p 25.06p Profit
Slide 8: Group balance sheet
Group balance sheet ●● EPRA NAV per share up 8.9% ◦◦ 2,054p from 1,886p ●● Equity shareholders’ funds increased to £2,057m Debt, net assets and gearing 2,500 100 Net debt Net assets NAV gearing LTV ratio ●● Net debt increased 2,250 90 ◦◦ £936m in June from £875m 2,000 2,057 80 ◦◦ Receipt of £132.5m
Slide 9: EPRA NAV movement
EPRA NAV movement ●● At £175.5m or 170p per share, the H1 revaluation surplus was higher than for the full year 2012 ◦◦ 1-5 Grosvenor Place 50p per share EPRA NAV per share 2,100 ●● Revaluation surplus 26 (20) (3) ◦◦ Income statement £175.3m 170 (5) 2,054 2,000 ◦◦ Comprehensive income 1 £0.2m £175.5
Slide 10: EPRA profit before tax
EPRA profit before tax ●● Rental income increased to £63.9m ◦◦ Another rise in like-for-like income EPRA profit before tax ●● Underlying profit up 7.3% compared to H1 2012 80 70 0.1 1.1 60 63.9 (5.6) 50 (11.8) £m 40 30 1.0 Breakdown of net finance costs (20.7) 28.0 28.0 20 H1 2013 H1 2012 £m £m 10 I
Slide 11: Gross property income
Gross property income H1 2013 H1 2012 Increase £m £m £m Rent received 61.9 57.4 4.5 SIC15 lease incentives 2.0 4.9 (2.9) Rental income 63.9 62.3 1.6 1 Surrender premiums received 0.1 - 0.1 Gross property income Gross property income 64.0 62.3 1.7 movements in H1 2013 70 ●● Acquisitions include: 11 F
Slide 12: Property outgoings, EPRA rental income and cost ratio
Property outgoings, EPRA rental income and cost ratio H1 2013 H1 2012 £m £m ●● Property outgoings increased by £0.5m mainly due Irrecoverable property costs 5.1 5.2 to marketing costs at White Collar Factory and a Ground rents 0.2 0.1 £0.2m surrender premium paid at Balmoral Grove Surrender premiums
Slide 13: Cashflow
Cashflow Net cashflow movements ●● Increase in net debt by £60.9m to £935.7m H1 2013 H1 2012 £m £m ●● Capex increased by 79% over H1 2012 Cash from operations 26.0 23.2 Acquisitions (29.7) (37.1) Capex (64.1) (51.8) 0.7 (29.0) ●● Disposals include Commercial Road Disposal proceeds 17.4 66.8 Dividend
Slide 14: Capital expenditure
Capital expenditure Forecast capital expenditure1 ●● Forecast capital expenditure on identified schemes 2015 91 5 to 2015 of £272m ●● Additional projects may increase expenditure in 2014 96 5 2014 and 2015 H2 2013 73 2 Forecast ●● Further details of forecast capital expenditure can be found in Appen
Slide 15: Debt strategy
Debt strategy ●● Move towards predominantly unsecured debt ◦◦ Improves operational flexibility ◦◦ Greater access to capital markets ◦◦ Takes advantage of current market conditions ●● Reduce cost of debt ◦◦ £150m six-year convertible bond issued July 2013 • Coupon 1.125% • Conversion price: £33.35; 6
Slide 16: Debt summary
Debt summary Proforma 2 Proforma 1 Jun 2013 Dec 2012 Total facilities £1,251m £1,251m £1,204m £1,204m Net debt £809m £940m £936m £875m Percentage of unsecured debt 57% 63% 19% 20% Unutilised facilities drawable £428m £297m £273m £333m Uncharged properties £1,840m £1,970m £727m £624m As a percentage
Slide 17: Debt facilities
Debt facilities Maturity profile of loan facilities - as at 30 June 2013 Maturity profile of loan facilities - Proforma1 £m £m 0 50 100 150 200 250 300 350 400 0 50 100 150 200 250 300 350 400 450 500 550 600 2013 2013 2014 125 2014 2015 109 116 2015 2016 175 2016 175 2017 236 154 2017 90 2018 28 20
Slide 18: Hedging
Hedging Proforma 2 Proforma 1 Jun 2013 Dec 2012 Proportion of drawn facilities at fixed rates or hedged 97% 84% 86% 92% Weighted average length of swaps 5.4 years 5.4 years 5.3 years 5.8 years Mark-to-market cost of swaps n/a n/a £37.3m £54.3m Hedging profile Maturity profile of fixed and hedged deb
Slide 19: Valuation and portfolio analysis
Valuation and portfolio analysis Nigel George 18
Slide 20: Valuation
Valuation ●● Very strong capital growth in the first half ◦◦ Underlying 6.3% (H2 2012: 4.1%) ◦◦ Excluding Grosvenor Place - underlying 4.7% ●● On-site projects valued at £452.7m (14.3% growth) ◦◦ Five developments £234.9m - increased 24.7% like-for-like • 1 Page Street SW11 • The Buckley Building EC
Slide 21: Valuation movement (%)
Valuation ●● Central London continues to excel ●● Our portfolio outperformed against valuation and total return benchmarks in H1 20131 ◦◦ Derwent London’s total property return 8.3% ◦◦ IPD Central London Offices 5.2%1 Valuation performance 20 Derwent London ◦◦ IPD All UK Property 3.0%1 16.5 IPD Cent
Slide 22: True equivalent yield (%)
Yields ●● EPRA yields ◦◦ Net initial 4.2% (Dec 2012: 4.3%) ◦◦ ‘Topped-up’ net initial 5.0% (Dec 2012: 4.8%) ●● True equivalent yield 5.52% ◦◦ Tightened by 3bp in H1 2013 ◦◦ No let up in investor appetite True equivalent yield movement 7.5 ●● Reversionary yield 5.6% (Dec 2012: 5.7%) 15bp 7.0 True equ
Slide 23: Portfolio reversion
Portfolio reversion ●● Strong income reversion at £56.9m1 ◦◦ 46% reversion on June contracted income of £123.3m ●● 55% of reversion locked-in ◦◦ Contractual growth Build up of reversion 60 • 1 Page Street SW1 £5.3m • The Buckley Building EC1 £2.4m 14.7 50 • 4 & 10 Pentonville Road N1 £2.1m ◦◦ Pre-le
Slide 24: Half-yearly rental value growth (%)
Rental values ●● H1 2013 rental value growth ◦◦ In line with our expectations (4-6% for full year) ◦◦ Underlying 2.6% (H2 2012: 3.8%) • City borders 4.7% • West End 2.0% Rental value growth ●● Steady growth since the beginning of 2010 9 6 Half-yearly rental value growth (%) ●● Undemanding central Lo
Slide 25: Vacancy rate (%)
Vacancy rates ●● EPRA vacancy rate1 by rental value 2.4% at June 2013 ◦◦ Increase from 1.6% at Dec 2012 ●● Available space 86,000 sq ft ◦◦ ERV £3.4m pa ◦◦ 50% attributable to the completion of The Buckley Building • One floor now let, one floor remaining Vacancy rates 8 ●● Current on-site projects t
Slide 26: Asset management and portfolio activity
Asset management and portfolio activity Paul Williams 25
Slide 27: Lettings and asset management
Lettings and asset management ●● Strong tenant relationships ●● Attractive product 40 Chancery Lane WC2 ●● Migrating quality covenants to new areas 80 Charlotte Street W1 Turnmill EC1 Covenant Publicis Groupe Rent £4.3m pa £7.8m pa1 Longevity 9 months 18-20 years Space 200,000 sq ft 155,600 sq ft 1
Slide 28: The Buckley Building EC1 (85,000 sq ft)
The Buckley Building EC1 (85,000 sq ft) ●● 21,100 sq ft on ground and lower ground pre-let to Unilever for £0.9m pa t le ●● 26,400 sq ft let to WPP for £1.3m pa. % Headline £52.50 psf 81 ●● 5,200 sq ft restaurant let to Granger & Co. for £0.1m pa ●● 16,100 sq ft let to Tipp24 for £0.8m pa (18% above
Slide 29: Investing in London's Tech Belt
Investing in London’s Tech Belt Mark Square House EC2 Turnmill EC1 Acquisition Development White Collar Factory EC1 Development London’s Tech Belt Derwent London ownership 28
Slide 30: Mark Square House EC2 (61,700 sq ft offices)
Mark Square House EC2 (61,700 sq ft offices) ●● Acquisition of five-storey office building for £29.6m ●● Island site in Tech Belt ●● Let to Thomson Financial until 2017 ●● Current rent £1.5m pa (£24.25 psf) ●● Net initial yield 5.0% ●● Potential to add 8,000 sq ft ●● Tenant group occupies other Derw
Slide 31: 1-5 Grosvenor Place SW1 sale
1-5 Grosvenor Place SW1 (168,000 sq ft - 50% interest) ●● Proposed luxury hotel/ residential development ●● Sale of our interest for £132.5m (profit of £54.2m before costs) Annualised return ●● 70% uplift to Dec 2012 15.3% pa 1,600 1-5 Grosvenor Place valuation (£78m) Total Property Return Index (De
Slide 32: Projects
DERWENT LONDON Projects Simon Silver 31
Slide 33: Projects summary
Projects summary ●● 230,000 sq ft of major projects completed in 2013 of which 93% let % 68 ◦◦ Capex balance £3m co et st l n 1% on ur 8 et ●● 279,000 sq ft on-site of which 62% pre-let R ◦◦ Capex to complete £72m ●● 966,000 sq ft to start by 2016 ◦◦ Capex to complete additional projects £364m The B
Slide 34: 1-2 Stephen Street 2013-2014 - Rolling refurbishment
1-2 Stephen Street 2013-2014 - Rolling refurbishment Phases 1 & 2 - offices Phase 3 - retail ●● Creating new streetscape and office identity on ●● Creating new frontage and larger units on Stephen Street Tottenham Court Road ●● Phase 1 - 23,000 sq ft (80% pre-let) due for ●● Current area 24,000 sq f
Slide 35: White Collar Factory 2014
White Collar Factory 2014 ●● Finalising configuration to provide most appropriate space ●● Main building 230,000 sq ft ●● Associated buildings ◦◦ Offices 42,000 sq ft ◦◦ Retail 10,000 sq ft ◦◦ Residential 7,000 sq ft 289,000 sq ft Old Street Old Street roundabout Exit 6 WHITE COLLAR FACTORY Mallow S
Slide 36: White Collar Factory 2014
White Collar Factory 2014 ●● Live suite completed ●● Refining the concept ●● Q1 2014 demolition ●● Delivery Q3 2016 35
Slide 37: Development returns 2013-2014
Development returns 2013-2014 t t -le -le e e pr pr % % 83 96 40 Queens 73 White Collar Turnmill Chancery Lane Bishop’s Bridge Charlotte Street Factory Total Road Completion Q3 2014 Q3 2014 Q4 2014 Q2 2015 Q3 2016 Commercial area (sq ft) 70,500 101,800 2,700 1,900 282,000 458,900 Residential area (s
Slide 38: Projects 2015-2016
Projects 2015-2016 80 Charlotte Street W1 55-65 North Wharf Road W2 ●● Start 2015 ●● Start 2015/16 ●● 380,000 sq ft ●● 240,000 sq ft ●● Capex c.£142m ●● Capex c.£103m ●● Completion H2 2017 ●● Completion c.2018 37
Slide 39: Project pipeline 2013-2020
Project pipeline 2013-2020 On-site 2013-6 Other consented Current Potential pipeline projects1 0.3m + starts 0.9m + projects 0.4m + appraisals 0.9m = (by 2020) 2.5m sq ft Turnmill EC1 Chancery Lane WC2 Wedge House SE1 1 Oxford Street W1 ed ed nt nt 1.2m sq ft 1.3m sq ft nse nse Co Co 2 2 +89% +102%
Slide 40: Outlook for central London property
Outlook for central London property John Burns 39
Slide 41: West End office supply
West End office supply Dec Jun Outlook 2012 2013 Vacancy rate West End office development pipeline ●● The vacancy rate still falling 2.0 12.5 ◦◦ Vacancy rate 4.0% (4.2% in Dec) Proposed 1.8 Under construction ◦◦ 10-year average 5.1% Completed Vacancy rate 1.6 10.0 ◦◦ Only 29% of current vacancy is n
Slide 42: West End office demand
West End office demand Dec Jun Outlook Dec Jun Outlook 2012 2013 2012 2013 Take-up Rents West End take-up ●● Take-up of 1.7m sq ft in H1 ●● 19% below 10-year average 6 ●● No deals >50,000 sq ft ●● TMT represents 22% of take-up 5 ●● Business services (28%) and Bank & Finance (20%) Average Take-up (mi
Slide 43: London's Tech Belt
London’s Tech Belt City Fringe availability (ex SE1) 4.5 18 ●● No longer a secret Available space Availability 4.0 16 ●● Old Street (EC1V postcode) leads UK start up activity1 3.5 14 ●● Major commitment by Google at King’s Cross Available space (m sq ft) 3.0 12 Vacancy rate (%) ●● Significant third
Slide 44: Central London office investment
Central London office investment Dec Jun Outlook 2012 2013 Yields Central London office investment ●● Last year’s strong pace maintained despite concerns over diminishing supply 18 ◦◦ £6.9bn transactions in H1 Value of investment transactions (£bn) 16 ◦◦ Overseas investors continue to dominate (70%)
Slide 45: Outlook for Derwent London
Outlook for Derwent London John Burns 44
Slide 46: Outlook
Outlook ●●Favourable market conditions ●●Well-placed portfolio ●●Strengthened finances ●●Plenty of potential ●●Next steps 1 ◦◦ Capture the reversion ◦◦ Progress the development pipeline • White Collar Factory • 80 Charlotte Street • 55-65 North Wharf Road ◦◦ Source acquisitions 1 Appendix 26 45
Slide 47: Appendices
DERWENT LONDON Appendices 46
Slide 48: Appendices
Appendices Page Page 1. Group balance sheet 48 16. Rent banding and tenant profile 63 2. Net asset value per share 49 17. Lease expiries and breaks 64 3. Group income statement 50 18. Lease expiry profile and lease length 65 4. Reconciliation of IFRS and EPRA profits 51 19. Turnmill EC1 (70,500 sq f
Slide 49: Appendix 1 - Group balance sheet
Appendix 1 - Group balance sheet Jun 2013 Dec 2012 Jun 2012 £m £m £m Investment property* 2,888.5 2,772.6 2,565.9 Owner-occupied property* 18.1 17.9 17.3 Other non-current assets 77.2 74.2 71.2 2,983.8 2,864.7 2,654.4 Non-current assets held for sale* 130.2 16.5 92.6 Other current assets and liabili
Slide 50: Appendix 2 - Net asset value per share
Appendix 2 - Net asset value per share Jun 2013 Dec 2012 Basic Diluted Basic Diluted £m p p £m p p Net assets attributable to equity shareholders 2,056.7 2,008 1,999 1,860.4 1,824 1,814 Fair value of secured bonds (10.3) (21.2) Fair value of unsecured bonds (30.2) (20.0) Fair value of fixed rate sec
Slide 51: Appendix 3 - Group income statement
Appendix 3 - Group income statement Half year ended Year ended Half year ended June 2013 Dec 2012 June 2012 £m £m £m Gross property income 64.0 124.8 62.3 Other income 1.1 2.5 0.9 Property outgoings (5.6) (10.6) 5.2 Property outgoings Rates credits - (5.6) 0.3 (10 .3) (5.1) 0.1 Net property income 5
Slide 52: Appendix 4 - Reconciliation of IFRS and EPRA profits
Appendix 4 - Reconciliation of IFRS and EPRA profits Reconciliation of IFRS profit before tax to EPRA and underlying profit before tax Half year Half year ended June 2013 Year ended ended June Dec 2012 2012 EPS p £m £m £m IFRS profit before tax 210.22 219.8 228.1 102.4 Revaluation surplus (175.3) (1
Slide 53: Appendix 5 - EPRA like-for-like rental income
Appendix 5 - EPRA like-for-like rental income Like-for-like Properties increase on owned throughout Development H1 2012 H2 2012 the period Acquisitions Disposals property Total % % £m £m £m £m £m H1 2013 Rental income 2.2 1.1 56.6 2.1 - 5.2 63.9 Property expenditure (2.7) - (0.1) (2.7) (5.5) Net ren
Slide 54: Appendix 6 - Debt facilities
Appendix 6 - Debt facilities 1 June 2013 Proforma £m Maturity £m Maturity 6.50% secured bonds 175 March 2026 175 March 2026 3.99% secured loan 83 October 2024 83 October 2024 2.75% unsecured convertible bonds 175 July 2016 175 July 2016 Overdraft 2.5 On demand - 1.125% unsecured convertible bonds -
Slide 55: Appendix 7 - Net debt
Appendix 7 - Net debt Jun 2013 Dec 2012 £m £m Financial liabilities - due after more than 1 year 816.3 879.2 - within 1 year 124.9 - Acquired fair value of secured bonds less amortisation (16.0) (16.4) Unamortised loan arrangement costs 5.7 6.7 Leasehold liabilities (8.9) (8.9) Unamortised issue cos
Slide 56: Appendix 8 - Convertible bonds 2019
Appendix 8 - Convertible bonds 2019 ●● £150m 1.125% unsecured convertible bonds repayable July 2019 ◦◦ Launched and issued July 2013 ●● Initial conversion price £33.35; 35% premium to reference share price of £24.70 ●● IFRS interest rate: 2.67% Income statement presentation 2013 2014 £m £m Interest
Slide 57: Appendix 9 - Valuation performance by village
Appendix 9 - Valuation performance by village Valuation Valuation Weighting movement Jun 2013 Jun 2013 H1 20131 £m % % West End Central Fitzrovia2 1,125.2 36 3.5 Victoria 394.8 13 2.8 Baker Street/Marylebone 146.8 5 4.5 Soho/Covent Garden 125.7 4 1.9 Belgravia 130.0 4 66.4 Mayfair 60.5 2 0.8 Padding
Slide 58: Appendix 10 - Portfolio statistics by village
Appendix 10 - Portfolio statistics by village Vacant Net Vacant Rent Floor floor contracted Average space review / Estimated area area rental rental rental lease Total rental Valuation Weighting sq ft sq ft income income value reversion reversion value £m % ‘000 ‘000 £m pa £ psf £m pa £m pa £m pa £m
Slide 59: Appendix 11 - Portfolio reversion
Appendix 11 - Portfolio reversion Rental uplift pa Rent pa £m £m £m Contracted rental income, net of ground rents 123.3 Contractual uplifts 1 Page Street SW1 (completed) 5.3 The Buckley Building EC1 (completed) 2.4 4 & 10 Pentonville Road N1 (completed) 2.1 Other 12.7 22.5 Pre-let projects 40 Chance
Slide 60: Appendix 12 - Vacant space - available and projects
Appendix 12 - Vacant space - available and projects Total Vacant Pre-let Total Pre- gross Total area area area Vacant let ERV Ground net ‘000 ‘000 ‘000 ERV ERV £m rent ERV sq ft sq ft sq ft £m pa £m pa pa £m pa £m pa Comment Available to occupy The Buckley Building EC1 33 - 33 1.7 - 1.7 - 1.7 Post h
Slide 61: Appendix 13 - EPRA valuation yields
Appendix 13 - EPRA valuation yields Yields’ profile EPRA initial yields 9 Pre-EPRA EPRA Net initial ‘Topped-up’ yield initial yield 8 % % West End 4.0 4.8 7 City Borders 4.6 5.6 Yield (%) Central London 4.1 5.0 6 Provincial 6.4 6.9 5 EPRA portfolio 4.2 5.0 4 EPRA true equivalent yields Initial yield
Slide 62: Appendix 14 - Valuation drivers and rental value growth
Appendix 14 - Valuation drivers and rental value growth 1 Drivers of valuation movement Other Rental value growth Yield shift Jun-13 29 34 37 Dec-12 24 61 15 Jun-12 -5 75 30 Dec-11 68 32 Jun-11 -6 70 36 -20 0 20 40 60 80 100 120 Contribution to valuation movement (%) EPRA rental value growth H1 2012
Slide 63: Appendix 15 - Low average rents
Appendix 15 - Low average rents ●● Central London offices represents 85% of income Income % Central London office rent profile Central London offices 85 40 Retail/restaurant 7 Jun-12 Dec-12 Jun-13 Leisure/hotel 2 35 36.55 Other 3 35.64 34.74 Central London 97 30 32.60 Scotland 3 31.50 31.18 Total 10
Slide 64: Appendix 16 - Rent banding and tenant profile
Appendix 16 - Rent banding and tenant profile 1 Central London ‘topped-up’ office rent banding Profile of tenants’ business sector2 £60+ psf £0 - £20 psf Other 3% 6% Government and 7% public admin £50 - £60 psf 4% Media, TV, marketing £20 - £30 psf 18% 14% Charities and advertising 5% 29% Financial
Slide 65: Appendix 17 - Lease expiries and breaks
Appendix 17 - Lease expiries and breaks ●● Excluding schemes, Derwent London’s tenant retention was 81% ◦◦ 80 Charlotte Street W1 project now to commence 2015 thereby retaining income ●● Only 6% of expiries remain vacant (lowest level for 5 years) ●● H2 2013 exposure of 8.1% by rental income Lease e
Slide 66: Appendix 18 - Lease expiry profile and lease length
Appendix 18 - Lease expiry profile and lease length Expiries and breaks as percentage of portfolio income1 West City H2 End Borders 2013 2014 2015 2016 2017 Total Expiries 2 2 4 5 9 4 4 26 Holding over 1 - 1 - - - - 1 Rolling breaks 2 1 3 3 - - - 6 Single breaks - - - 6 3 4 2 15 Total 5 3 8 14 12 8
Slide 67: Appendix 19 - Turnmill EC1 (70,500 sq ft)
Appendix 19 - Turnmill EC1 (70,500 sq ft ) ●● 58,200 sq ft offices let for £3.1m pa to Publicis Groupe for 20 years (break at 83 18) - 32 months rent free % pr ●● Office rent £55.00 psf e-le ●● 16% above December 2012 ERV t ●● To be handed over July 2014 ●● 12,300 sq ft retail remaining to let with
Slide 68: Appendix 20 - 40 Chancery Lane WC2 (101,800 sq ft)
Appendix 20 - 40 Chancery Lane WC2 (101,800 sq ft) ●● 97,400 sq ft offices let for £5.7m pa to Publicis Groupe for 20 years t le (break at 18) - 32 months rent free e- pr ●● Subject to a ground rent of 18% % 96 ●● Typical floor £65.00 psf ●● 7% above December 2012 ERV ●● To be handed over July 2014
Slide 69: Appendix 21 - Other 2013 projects
Appendix 21 - Other 2013 projects Queens, Bishop’s Bridge Road W2 73 Charlotte Street W1 ●● Demolition completed ●● Work to start in H2 ●● 16 private flats (18,700 sq ft) for sale ●● 9 private flats (11,700 sq ft) for sale ●● 2,700 sq ft retail (ERV c.£0.1m pa) ●● 2 affordable flats (1,900 sq ft) fo
Slide 70: Appendix 22 - Central London office vacancy
Appendix 22 - Central London office vacancy 16 West End 14 City Central London 12 West End 10-yr average Vacancy rate (%) City 10-yr average 10 8 6 4 2 0 Q2 03 Q2 04 Q2 05 Q2 06 Q2 07 Q2 08 Q2 09 Q2 10 Q2 11 Q2 12 Q2 13 Source: CBRE 69
Slide 71: Appendix 23 - Central London office vacancy v rental growth
Appendix 23 - Central London office vacancy v rental growth 6 12 Rental growth (quarter-on-quarter %) 3 10 0 8 Vacancy rate (%) -3 6 -6 4 -9 2 IPD rental growth CBRE vacancy rate -12 0 Q2 03 Q2 04 Q2 05 Q2 06 Q2 07 Q2 08 Q2 09 Q2 10 Q2 11 Q2 12 Q2 13 Source: CBRE, IPD 70
Slide 72: Appendix 24 - Central London office rental growth
Appendix 24 - Central London office rental growth 30 20 Rental growth (% pa) 10 0 Q2 03 Q2 04 Q2 05 Q2 06 Q2 07 Q2 08 Q2 09 Q2 10 Q2 11 Q2 12 Q2 13 -10 -20 Central London -30 City West End -40 Source: CBRE 71
Slide 73: Appendix 25 - Current project map
Appendix 25 - Current project map Islington Camden Euston Thameslink Old Street Bloomsbury Clerkenwell 6 1 Fitzrovia 7 Farringdon Shoreditch Marylebone/ 5 Liverpool Street 8 Paddington Baker Street North of Oxford St 3 Tottenham 4 Court Road 2 Holborn The City Paddington Bond Street Thameslink Soho/
Slide 74: Appendix 26 - Next steps: current and future potential
Appendix 26 - Next steps: current and future potential ●● Proforma ERV (£m) Estimated ERV 180.21 Grosvenor Place (3.7) Impact of development programme on ERV Adjusted ERV 176.5 35 Add 2013-16 starts 33.52 Sq ft Capex Sq ft Capex 31.3 30 Property 000’s £m Property 000’s £m Proforma 210.0 73 Charlotte
Slide 75: Appendix 27 - Projects summary 2013-16
Appendix 27 - Projects summary 2013-16 Current Pre H2 Current net scheme Proposed 2013 2014 2015 2016 + Total office Property income area area capex capex capex Capex capex Delivery ERV £m pa ‘000 sq ft ‘000 sq ft £m £m £m £m £m date £psf On site projects Turnmill EC1 - 41 70 7 9 - - 16 Q3 2014 55 4
Slide 76: Appendix 28 - Projects summary 2015+
Appendix 28 - Projects summary 2015+ Pre June net scheme Proposed Earliest Property income area area possession Comment £m pa ‘000 sq ft ‘000 sq ft year Other planning consents Wedge House SE1 0.2 39 80 2013 Consented - offices 1 1 Oxford Street W1 - - 275 c.2017 Consented - offices, retail & theatr
Slide 77: Potential project delivery H2 2013 - 2020
Appendix 29 - Potential project delivery H2 2013 - 2020 0.8 Under construction 0.7 Starts in next 12 months Estimated completions (m sq ft) Potential 0.6 Balmoral 0.5 Grove N7 0.4 Baker Street W1 0.3 80 0.2 Charlotte White Street North 1 Oxford Collar W1 Wharf Street Factory Road W1 0.1 EC1 W2 0 H2
Slide 78: Appendix 30 - Management structure - executive team
Appendix 30 - Management structure - executive team John Burns Chief Executive Officer Damian Wisniewski Finance Director Simon Silver Property Director Nigel George Property Director Paul Williams Property Director David Silverman Property Director Tim Kite Company Secretary Richard Baldwin Head of
Slide 79: Disclaimer
Disclaimer This presentation has been prepared by Derwent London plc (the apparent. Past performance is not indicative of future results and “Company”). No representation or warranty (express or implied) forward-looking statements are not guarantees of future performance. of any nature is given nor