British Land Company PLC · LSE:BLND
British Land — FY2007 Earnings Presentation
75 slides from British Land's earnings presentation, May 2007
Slide 1: Results Presentation Year ended 31 March 2007
Results Presentation Year ended 31 March 2007 We are real estate investors and create value by actively managing, financing and developing prime commercial property to provide the environment in which modern business can thrive. Year ended 31 March 2007
Slide 2: Contents
Contents Introduction REIT Opportunity 19 Financial Highlights 1 Market Conditions - Investment & Occupier Markets 20 Business Highlights 2 Property Return Prospects in “Fair Value” Zone 21 Financial Review Retail Financial Highlights 3 £14.5bn – Leadership in Retail (BL Share £10.3bn) 22 Attractive
Slide 3: Introduction
Introduction Stephen Hester Chief Executive Year ended 31 March 2007
Slide 4: Financial Highlights
Introduction Financial Highlights NAV per share1 1682p – up 20% pre charges2 (Q4 up 4.5%) – Net Assets1 £8.9bn – Total Return2 of 21.3% – IPD Total Return of 15.8% Underlying pre-tax profit3 up 13% to £257m, Headline profit4 £1,270m – Underlying EPS3 up 22% to 43p, Headline EPS 470p – Total divi
Slide 5: Business Highlights
Introduction Business Highlights REIT conversion on 1 January 2007. First full year REIT dividends not less than 33p per share – 94% higher than 2005/6 Delivering on our promises to renew and work the business hard – £3.4bn (gross) of asset turnover - tightening focus, recycling capital, improvi
Slide 6: Financial Review
Financial Review Graham Roberts Finance Director Year ended 31 March 2007
Slide 7: Financial Highlights
Financial Highlights Financial Highlights 2007 2006 Change Underlying Profit before Tax1 £257m £228m 13% Underlying Diluted Earnings per Share1 43p 36p 22% Dividend per share 20.35p 17.0p 20% Net Assets2 (after REIT charges and refinancings) £8.9bn £7.8bn 14% NAV per share2 - After REIT charges and
Slide 8: Attractive Rental Growth
Financial Performance Attractive Rental Growth Gross rents 6% lower due to asset Gross rental income 2007 2006 sales % £m £m Properties owned throughout1 3.5% like for like rental income Retail +4.0% 325 312 growth: Offices +2.6% 219 213 – Retail uplift of 4.0% due to rent Other +5.6% 23 22 revi
Slide 9: Underlying Profit before Tax up by 13%
Financial Performance Underlying Profit before Tax up by 13% 20071 20061 Movement in Underlying Profit £m £m £m Rent reviews and new lettings (net)2 10 Net rental income 661 701 Fees and other income3 51 51 Effect of property purchases and sales 3 Administrative expenses (85) (88) Interest saving du
Slide 10: Dividends
Financial Performance Dividends 1st full year REIT dividend Dividends now paid quarterly 35 to be at least 33p2 Q4 dividend 8.25p per share, 8.25p 1st REIT + >70% above payable in August. Total 2006/7 Gross Dividend (pence per share) 30 dividend (Q4 06/07) mandatory dividend dividend 20.35p, up
Slide 11: Net Asset Value 1682p (1786p pre-charges)
Financial Performance Net Asset Value 1682p (1786p pre-charges2) Movement in NAV per share1 Pence 2007 2006 At 31 March 2006 1486 NAV per share1 1682p 1486p Revaluation of properties and gains 292 on asset disposals NNNAV per share 1683p 1139p Underlying profit after tax 43 Dividend paid (17) Net as
Slide 12: Secure & Attractive Risk Profile
Finance and Capital Structure Secure & Attractive Risk Profile Prudent financial ratios, Key Financial Ratios2 especially given low income risk 2007 2006 – Leases average 14.7 yrs to first break LTV – Group 43%3 42% – Vacancy rate of 3.3% (1.6% underlying1) LTV – inc. share of Funds & JVs 47%3 46%
Slide 13: Strategy & Operational Review
Strategy & Operational Review Stephen Hester Chief Executive Year ended 31 March 2007
Slide 14: Activist Strategy, Focused on Delivering Outperformance
Strategy & Positioning Activist Strategy, Focused on Delivering Outperformance Building the business around customer needs and so capturing superior, cash flow driven “total return” arising from high occupancy and rental growth Seeking to “add-value” at each level of the business – Sector and ma
Slide 15: Delivering on our Promises – 2006/7
Strategy & Positioning Delivering on our Promises – 2006/7 Intensified Portfolio Reshaping Management and Culture Renewal £3.4bn (gross) asset turnover Chris Gibson-Smith as Chairman - £1,473m disposals Six new Board members in place - £1,938m acquisitions (2 Executive and 4 Non-Executive)
Slide 16: Record of Value Creation
Delivering on Our Promises Record of Value Creation Earnings Growth1 Total Shareholder Return2 Total Return3 25% 60% 30% 1 50% 1 25% 2 20% 2 40% 20% 1 15% 30% 15% 1 2 10% 2 1 20% 10% 5% 10% 5% 0% 0% 0% 5 YRS 3 YRS 1 YR 5 YRS 3 YRS 1 YR 5 YRS 3 YRS 1 YR British Land Major Peers4 FTSE Real Estate Inde
Slide 17: Value Creation from £3.7bn of Capital Recycling
Portfolio Reshaping Value Creation from £3.7bn of Capital Recycling Disposals Acquisitions Development Net Disciplined asset reviews to improve risk adjusted growth prospects Spend Investment1 – Sharpen sectoral focus £m £m £m £m – Recycling capital within ‘advantaged’ sectors Out of Town Retail (
Slide 18: Value Creation from £4bn Development Programme
Development Value Creation from £4bn Development Programme A key differentiator Euston Station NEQ, Regent’s Place Excellent progress to date – Construction & costs on budget – Capturing customer demand as expected Pipeline filling up – 508,000 sq ft planning application at Regent’s Place (NEQ
Slide 19: Leadership in European Out of Town Retail
New Initiatives Leadership in European Out of Town Retail Sq ft Value1 BL Average Average Average Assets now owned or Share1 Capital ERV Initial managed total €1.7bn1 Value Yield4 – Assets owned or committed ‘000 €m €m € psf € psf % in PREF €1,096m1,2 Spain 4,136 1,154 558 279 143 5.23 – €613m1 JV
Slide 20: Why we like European Out of Town Retail
New Initiatives Why we like European Out of Town Retail Logical extension of UK market leadership Retail Warehouse Parks Under-represented in Europe1 20 ShoppingCentres Shopping Centres Under provision of “out of town” shopping in <5% Retail RetailWarehouses Warehouses 15 58% <5% % of which Reta
Slide 21: Rental Growth Guaranteed – A 'tactical' initiative
New Initiatives Rental Growth Guaranteed – A ‘tactical’ initiative Portfolio with fixed or indexed rent Portfolio RPI-Linked/ Value increases now amounts to £1.6bn Fixed £m Attractive initial yields with security of income Debenhams Fixed 691 and good cash flow growth from fixed uplifts Tesco JV
Slide 22: Portfolio - Positioned for Rental Growth
Portfolio Positioning Portfolio - Positioned for Rental Growth 56%1 Retail: 41%1 Offices: UK Market Forecast Average PMA vs CE 80% Out of Town 97% Central London ERV Growth pa - Next 5 Years2 Individual Forecasts Retail Retail Warehouses 3.4 – 4.1 Central London Warehouses Offices 23% 27% Shopping C
Slide 23: 9.7% Uplift in 12 Months
Valuation 9.7% Uplift in 12 Months1 12 months Capital Return British IPD All Retail 7.6% (ungeared)4 Land % % Retail Warehouses 10.3% All Retail 8.5 8.0 Superstores 9.5% All Offices 15.2 16.1 Shopping Centres 3.4% Department Stores Total Portfolio 10.9 10.7 5.1% High Street 4.6% Of which like for li
Slide 24: REIT Opportunity
REITs REIT Opportunity Expect investors to re-look at: – Allocations to property, and quoted vs unquoted/direct holdings – Valuations relative to NAV, free of historic fiscal drag and with higher dividend payouts Opportunity to: – Buy/sell where previously inhibited by tax – Increase dividends w
Slide 25: Investment Markets / Occupier Markets
Market Conditions Investment Markets Occupier Markets 2006/7 a strong year as repricing of asset Outlook positive with economy strong class in relation to other financial assets – Service industry growth completed – Employment strong – Consumer spending positive 91% of BL asset sales at or abo
Slide 26: Property Return Prospects in "Fair Value" Zone
Market Fundamentals 1 Property Return Prospects in “Fair Value” Zone Return Prospects - Property Return Prospects – Indexed Gilts Return Prospects - UK Equities Market Equivalent Yield2 5.2% Market Rental Growth3 2.7% Yield5 1.5% Dividend Yield7 3.0% Asset Total 7.9% + gearing, development & ++ asse
Slide 27: Retail
Retail Andrew Jones Head of Retail Year ended 31 March 2007
Slide 28: £14.5bn - Leadership in Retail (BL Share £10.3bn)
Retail £14.5bn1 - Leadership in Retail (BL Share £10.3bn1) British Land Retail Assets1 Distinctive portfolio of over 30m sq ft with leadership positions in – Retail parks In Town – Superstores Retail – Department stores £2.1bn (20%) 80% of retail assets located Out of Town Out of Town Retail – 8
Slide 29: Retail Strategy & Activity
Retail Asset Management Retail Strategy & Activity Strategy based on 4 themes Customer led strategy – driving £2.6bn (gross) of asset turnover – Sale of over £1bn of assets with slower rental growth prospects, principally Concentration on supply/ demand imbalances In Town retail and bulky goods
Slide 30: Capital Return 8.5%, ERV Growth 3.5%
Retail Performance Capital Return 8.5%, ERV Growth 3.5% Capital Return1 ERV Growth2 British Land IPD British Land IPD % % % % Retail Warehouses 12.0 8.2 3.6 2.9 Superstores 11.1 N/A3 6.4 N/A3 Shopping Centres 3.9 7.9 0.9 3.0 High Street 5.2 7.63 1.5 2.93 All Retail 8.5 8.0 3.5 2.9 Year ended 31 Marc
Slide 31: Outlook – Investment Market
Retail Market Outlook Outlook – Investment Market Investment market more aligned with Equivalents Yields by Retail Sub-market1 occupational market May 2007 % Trending Shops – Prime 4.00 Weaker Demand strong and pricing still robust for prime. Shops – Secondary 5.35 Weaker Signs of slowing for se
Slide 32: Outlook – Occupier Market
Retail Market Outlook Outlook – Occupier Market Challenging environment Out of Town Spending Increases1 – Retailers margin focused, location selective 60% – Incentives rising 50% – Consumer spending positive, but not at growth 50% 42% % of Retail Sales 2 levels of last 5 years 40% 25% Non-store 20
Slide 33: Offices
Offices Tim Roberts Head of Offices Year ended 31 March 2007
Slide 34: £7.6bn - Leadership in London Offices
Offices £7.6bn1 - Leadership in London Offices British Land Office Assets1 11m sq ft London portfolio – 6.4m sq ft of prime London office investments – 3.4m sq ft developments – 0.8m sq ft ‘look-through’ in Canary Wharf (10.8%) London Offices Positive rental growth outlook £7.4bn (97%) £44 psf
Slide 35: Office Strategy & Activity
Office Asset Management Office Strategy & Activity Strategy based on 5 themes Reshaping portfolio – £374m sales at 27.7% above valuation, plus sales agreed on EBRD Concentration on supply/ and Blythe Valley demand imbalances – £264m purchases primarily West End offices, £256m development spend –
Slide 36: Capital Return 15.2%, ERV Growth 12.6%
Office Performance Capital Return 15.2%, ERV Growth 12.6% Capital Return1 ERV Growth2 British Land IPD British Land IPD % % % % City 14.8 18.5 13.0 14.3 West End 18.9 25.2 11.9 15.5 Business Parks & Provincial 6.4 9.7 2.0 2.5 All Offices 15.2 16.1 12.6 8.2 Year ended 31 March 2007 1 IPD Capital Retu
Slide 37: Good Progress with Development Lettings
London Office Development Good Progress with Development Lettings York House Ludgate West Broadgate Tower & 201 Bishopsgate Completed on time and within 88,000 sq ft under offer to Charles 201 – 124,000 sq ft pre-let to budget Russell LLP Henderson for 20.5 years and 33,700 sq ft let to GIC
Slide 38: Carefully Timed & Customer Focused Development
London Office Development Carefully Timed & Customer Focused Development The York The Willis 35 Basinghall Ludgate The Broadgate Ropemaker Regent’s The Regent’s Building Building & One West Tower & 201 (593,000 sq ft) Place - Leadenhall Place - (137,000 sq ft) (491,000 sq ft) Coleman (127,000 sq ft)
Slide 39: Prospective Unbooked Development Profits - Update
Development Prospective Unbooked Development Profits - Update Developments £m Illustrative sensitivity of potential development surpluses6 to yield shift and rental growth (£m) March 2007 Valuation1 1,037 Average valuation yield % Costs to Complete2 1,957 £m +25bp 5.27% -25bp -50bp Estimated headlin
Slide 40: Outlook – Investment Market
London Office Market Outlook Outlook – Investment Market London’s stature is growing F&BS London Employment Growth Strong1 – F&BS output forecast to outstrip GDP 350 1150 – F&BS employment to grow by 150,000 by 2010 Number '000s Number '000s 1050 325 Strong investment market (£4.2bn YTD) 950 300
Slide 41: Outlook – Occupier Market
London Office Market Outlook Outlook – Occupier Market Take-up of 12m sq ft in London over last Central London Vacancy Rates1 12 months, 6.8m sq ft in City 16 14 – 26% reduction in vacancy rates to 5.0%, Vacancy Rate % 12 Grade A 3.0% 10 – City 34% reduction to 6.1% 8 6 Rents have grown strongly
Slide 42: Summary
Summary Stephen Hester Chief Executive Year ended 31 March 2007
Slide 43: Well placed for the "Post Yield Shift" Environment
Summary Well placed for the “Post Yield Shift” Environment Property Value Added Distinctive leadership in the two sectors most favoured for growth over next 5 Sector & market selection years – London Offices Asset selection & creation – Out of Town “Open A1” Retail Outstanding development pr
Slide 44: Appendix
Appendix Year ended 31 March 2007
Slide 45: Contents
Contents Appendix Development Prospects 15 EPRA Balance Sheet (proportional consolidation) 1 Broadgate 2020 16 Reconciliation of EPRA Diluted Net Assets 2 London Office Market – Rental Growth Forecasts 17 EPRA Triple Net Asset Value 3 Portfolio Valuation By Sector 18 Income Statement (proportional c
Slide 46: EPRA Balance Sheet (proportional consolidation)
Financial Results EPRA Balance Sheet (proportional consolidation) Group JVs & Funds March 2007 March 2006 £m £m £m £m Total properties 14,017 2,886 16,903 14,414 Net debt (6,490) (1,251) (7,741) (6,684) Other net assets/liabilities (270) (30) (300) 72 EPRA Diluted Net Assets 7,257 1,605 8,862 7,802
Slide 47: Reconciliation of EPRA Diluted Net Assets
Financial Results Reconciliation of EPRA Diluted Net Assets March 2007 March 2006 £m £m Balance sheet (IFRS) net assets 8,747 6,016 Deferred tax arising on revaluations movements, capital allowances and derivatives 168 1,636 Mark to market on interest rate swaps (99) 33 External valuation surplus on
Slide 48: EPRA Triple Net Asset Value
Financial Results EPRA Triple Net Asset Value £m Pence per Share EPRA diluted NAV 8,862 1682 Deferred tax arising on revaluation movements (168) (32) Mark to market of debt and derivatives 174 33 EPRA NNNAV 8,868 1683 Year ended 31 March 2007 3
Slide 49: Income Statement (proportional consolidation)
Financial Results Income Statement (proportional consolidation) £m Group JVs & Funds March 2007 March 2006 Net rental income 561 100 661 701 Fees and other income 50 1 51 51 Administrative expenses (78) (7) (85) (88) Net interest costs (313) (57) (370) (436) Underlying profit before tax 220 37 257 2
Slide 50: Reconciliation of Underlying Profit after Tax
Financial Results Reconciliation of Underlying Profit after Tax March 2007 March 2006 £m £m Profit before tax 1,440 1,498 Net valuation gains (1,274) (1,566) Gains on asset disposals (150) (182) Non-recurring items (20) - Deferred and current taxation of joint ventures & funds (170)1 106 Amortisatio
Slide 51: Gross Rental Income - Sectoral Analysis
Financial Results Gross Rental Income - Sectoral Analysis 12 mths ended 31 March 20071 Annualised at 31 March 20072 Gross Rental Income Group Funds & JVs Total Group Funds & JVs Total £m £m £m £m £m £m Retail: Retail Warehouses 84 55 139 95 51 146 Superstores 72 11 83 73 27 100 Shopping Centres 99 2
Slide 52: Contracted Rental Increases From Lettings with Rent Free Periods
Financial Results Contracted Rental Increases From Lettings with Rent Free Periods1 L Year ended Year ending 31 March Contracted Accounting Gross March 2007 2008 2009 2010 2011 Rental Income £m £m £m £m £m Offices 28 50 50 50 50 Retail 40 44 44 44 43 Other 2 2 2 2 2 Total rent (accounting basis) 70
Slide 53: Contracted Rental Increases From Fixed and Minimum Uplifts
Financial Results Contracted Rental Increases From Fixed and Minimum Uplifts1 Year ended Year ending 31 March Contracted Accounting Gross March 2007 2008 2009 2010 2011 Rental Income £m £m £m £m £m Debenhams 40 40 40 40 40 Spirit Pubs 14 14 14 14 14 Other 29 28 28 28 28 Total rent (accounting basis)
Slide 54: UK REITs
REITs UK REITs British Land became a REIT on 1 Jan 2007, with the One-off Financial Effects of REIT largest UK property portfolio, and market cap within the Conversion world’s top 5 REITs 2007 – UK rental income & capital profits now largely tax free £m – Dividends to be paid quarterly – first ful
Slide 55: Capital Recycling
Portfolio Reshaping Capital Recycling Sales Price BL Gain Purchases Price BL Gain £m Share %1 £m Share %4 £m £m Queensmere & Observatory 200 200 (9.0) 50% share of 21 Tesco superstores 325 325 - Gallions Reach Shopping Park2 192 35 8.4 BL Davidson JV buyout 365 365 14.0 10 Retail Warehouse parks 169
Slide 56: Rent Reviews concluded at 5.5% higher than ERV
Proactive Asset Management Rent Reviews concluded at 5.5% higher than ERV Rent Reviews Number BL Increase CAGR1 pa over New rent Rent £m 5 years % above ERV2 % Retail Warehouses 57 3.6 6.0 1.6 Superstores 27 2.1 1.7 7.5 Shopping Centres 115 1.8 1.8 9.1 High Street 15 0.4 2.5 6.3 London Offices 20 0.
Slide 57: 377 Lettings generating £22m pa of New Rent
Proactive Asset Management 377 Lettings generating £22m pa of New Rent Rent £m pa1 New Lettings & Lease Renewals Number Sq ft Total2 BL Share ‘000 of increase3 Retail Warehouses 75 554 13.3 8.0 Shopping Centres 135 485 16.9 6.9 High Street 16 87 1.3 0.1 London Offices 22 197 8.1 4.4 Other 129 543 5.
Slide 58: 0.8m sq ft of Completed Projects
Development Programme 0.8m sq ft of Completed Projects Rent £m pa Sq ft March 2007 Total Total2 Let Uplift on ‘000 Value £m Cost £m1 Cost % York House, W13 137 127 83 7.4 6.1 53 Blythe Valley (Plot G2) 35 11 8 0.7 0.7 38 Willis Building, EC3 491 360 278 21.4 21.1 29 Total 663 498 369 29.5 27.9 35 Co
Slide 59: 5.2m sq ft of Committed Projects
Development Programme 5.2m sq ft of Committed Projects PC Sq ft March 2007 Costs to Notional Rent Sales ‘000 Value £m Complete £m Interest £m1 £m2 £m4 London Offices: The Broadgate Tower & Q3 2008 822 369 174 17 42.1 - 201 Bishopsgate The Leadenhall Building Q1 2011 612 114 368 46 36.9 - Ropemaker Q
Slide 60: Development Prospects
Development Programme Development Prospects Sq ft March 2007 Costs to Notional Rent Sales Sector Planning ‘000 Value £m Complete £m Interest £m1 £m2,3 £m4 West End Office, NE Quadrant 508 38 222 13 17.6 64 Submitted Residential Colmore Row Provincial Office 249 26 70 9 8.1 - Pending Outline/ Blythe
Slide 61: Broadgate 2020
Proactive Asset Management Broadgate 2020 Broadgate currently low rise and low Highest Redevelopment density Potential Moderate Redevelopment – Buildings range from 7-13 floors Potential Low Redevelopment – Gross plot ratio of 5:1 Potential Narrowing of view corridors will offer increased future
Slide 62: London Office Market - Rental Growth Forecasts
London Office Market Outlook London Office Market - Rental Growth Forecasts Average Agents’ Consensus British Land Average Agents’ Consensus British Land City Rental Growth Forecasts Rent Reviews West End Rental Growth Forecasts Rent Reviews Rent Range Headline Sq ft for Rent Range Headline Sq ft fo
Slide 63: Portfolio Valuation By Sector
Portfolio Valuation Portfolio Valuation By Sector Group Funds/JVs Total Portfolio Uplift £m £m £m % %1 Retail: Retail Warehouses 2,503 1,566 4,069 24.1 10.3 Superstores 1,678 622 2,300 13.6 9.5 Shopping Centres 1,999 512 2,511 14.8 3.4 Department Stores 797 148 945 5.6 5.1 High Street 348 - 348 2.1
Slide 64: Retail Warehouses £4,069m: Up 10.3%
Portfolio Valuation 118 Retail Warehouses £4,069m: Up 10.3% March 2007 March 2006 Valuation £4,069m £3,112m Rent pa £153m £123m Total Reversionary Income pa £183m £158m Average Rent psf £20.30 £16.46 Average ERV psf £25.03 £21.20 Vacancy Rate1 0.8% 3.0% Gross Initial Yield2 3.8% 4.0% Gross Reversion
Slide 65: Superstores £2,300m: Up 9.5%
Portfolio Valuation 89 Superstores £2,300m: Up 9.5% March 2007 March 2006 Valuation £2,300m £1,767m Rent pa £102m £85m Total Reversionary Income pa £108m £87m Average Rent psf £20.83 £20.39 ERV Range psf £8.17- £35.45 £9.02 - £31.50 Vacancy Rate - - Gross Initial Yield1 4.4% 4.8% Gross Reversionary
Slide 66: Meadowhall £1,640m: Up 3.5% (pre-capex 5.8%)
Portfolio Valuation Meadowhall £1,640m: Up 3.5% (pre-capex 5.8%) March 2007 March 2006 Valuation £1,640m6 £1,550m Rent pa £77m5 £71m Estimated Rental Value pa £83m £82m Average Rent psf £58.875 £61.62 Vacancy Rate1 2.0% 1.8% Gross Initial Yield3 4.7%5 4.6% Gross Reversionary Yield3 5.0% 5.3% Net Equ
Slide 67: In Town Retail £2,132m: Up 4.0%
Portfolio Valuation In Town Retail £2,132m: Up 4.0% March 2007 March 2006 Valuation £2,132m4 £2,309m - 7 Shopping Centres £839m £1,035m - 38 Department Stores £945m £900m - 64 High Street £348m £374m Rent pa £101m4 £115m Total Reversionary Income pa £114m4 £130m Vacancy Rate1 2.0% 3.5% Gross Initial
Slide 68: Broadgate £3,569m: Up 10.6%
Portfolio Valuation Broadgate £3,569m: Up 10.6% March 2007 March 2006 Valuation £3,569m £3,227m Rent pa £169m £151m Contracted Reversionary Income pa £179m6 £180m Average Office Contracted Rent psf £46.90 £46.80 Headline Office ERV Range psf £44.00 - £55.003 £37.50 - £48.50 Vacancy Rate1 0.8% 1.2% G
Slide 69: Regent's Place £651m: Up 12.3%
Portfolio Valuation Regent’s Place £651m: Up 12.3%1 March 2007 March 2006 Valuation £651m £580m Rent pa £28m £28m Contracted Reversionary Income pa £31m6 £32m Average Office Contracted Rent psf £33.026 £33.16 Headline Office ERV Range psf £23.50 - £49.00 £23.50 - £45.00 Vacancy Rate3 - 0.6% Gross In
Slide 70: Sustainable Income: Long Leases & Low Vacancy
Portfolio Statistics Sustainable Income: Long Leases & Low Vacancy Average lease term to first break, Vacancy Rate % years March 2007 March 2006 Adj. March 20071 March 2007 March 2006 Total Portfolio 14.7 15.0 1.6 3.3 4.1 Retail Warehouses 13.4 14.4 0.8 2.2 3.0 Superstores 20.4 20.9 - - - Shopping C
Slide 71: Yield Profile
Portfolio Statistics Yield Profile Initial Initial Yield adding Reversionary Net Equivalent Yield1 % back rent frees1 % Yield2 % Yield3 % Retail Warehouses 3.8 3.9 4.6 4.3 Superstores 4.4 4.4 4.7 4.3 Shopping Centres 4.6 4.8 5.2 4.8 Department Stores 4.5 4.5 5.1 5.0 High Street 4.6 4.7 5.1 4.7 All R
Slide 72: Strong Growth in Cash Rents in Prospect
Portfolio Statistics Strong Growth in Cash Rents in Prospect1 IPD Security of Income & Potential Growth 2007 Of which contracted £m £m 4 British Land Annualised Net Rents 673 673 Net Reversions2 112 59 4 IPD Benchmark Committed Developments3 149 74 Increase 261 66 -10 0 10 20 30 40 50 % Total 934 73
Slide 73: Annualised Net Rents and ERV Analysis
Portfolio Statistics Annualised Net Rents and ERV Analysis Annualised net rents £m1 Estimated rental value £m2 JVs & JVs & Group Trusts Total Group Trusts Total £m £m £m £m £m £m Retail Warehouses 102 51 153 118 65 183 Superstores 74 28 102 79 29 108 Shopping Centres 89 25 114 101 30 131 Department
Slide 74: Reversionary Income: £112m
Portfolio Statistics Reversionary Income: £112m Annualised net Net reversion Reversionary rents £m £m1 Yield3 153 30 Retail Retail Warehouses 4.6 102 6 Superstores 4.7 114 17 Shopping Centres 5.2 42 6 Department Stores 5.1 16 2 High Street 5.1 427 61 All Retail 4.8 173 32 Offices: City 5.0 35 12 Wes
Slide 75: Disclaimer
Disclaimer The information contained in this presentation has been extracted largely from the Preliminary Results Announcement for the year ended 31 March 2007. General property market data has been extracted from Jones Lang LaSalle, Knight Frank, PMA, Verdict and other agents’ reports (please note