British Land Company PLC · LSE:BLND
British Land — FY2004 Earnings Presentation
70 slides from British Land's earnings presentation, July 2004
Slide 1: Results Presentation Year ended 31 March 2004
RESULTS PRESENTATION YEAR ENDED 31 MARCH 2004 Results ResultsPresentation Presentation Year Yearended ended31 31March March2004 2004
Slide 2: Contents
CONTENTS FINANCIAL REVIEW HIGHLIGHTS 5 PROPERTY: PORTFOLIO ACTIVITY STRONG EARNINGS GROWTH 6 £371M SALES: 12% ABOVE VALUATION 22 STRONG OPERATING CASH FLOW 7 £562M PURCHASES: 69% RETAIL 23 TOTAL RETURN: 14.1% 8 BLU: GUS 50% BOUGHT AT NNNAV 24 DEBT: LONG AND CHEAP 9 THE SCOTTISH RETAIL PROPERTY LIMIT
Slide 3: Contents continued
CONTENTS continued PROPERTY: DEVELOPMENT OUT OF TOWN: NEW RETAIL PARKS RESTRICTED 53 OUT OF TOWN: NEW FOODSTORES RESTRICTED 54 EXPANDING DEVELOPMENT PROGRAMME 38 OUT OF TOWN: CONTINUING TO OUTPERFORM 55 COMMITTED DEVELOPMENTS 39 RESULTS: HIGHLIGHTS 56 DEVELOPMENT PROSPECTS 40 APPENDIX PROPERTY: MARK
Slide 4: Financial Review
FINANCIAL REVIEW GRAHAM ROBERTS, FINANCE DIRECTOR Results ResultsPresentation Presentation Year Yearended ended31 31March March2004 2004
Slide 5: Highlights
HIGHLIGHTS NAV per share up 12.5% to 966p – Valuation up 4.7% on strong retail performance EPS up 33.0% to 36.3p, dividends up 8.2% – Underlying profit before tax stable at £147m Investment market buoyant Central London office market has begun to turn Supermarkets and retail warehouses show total re
Slide 6: Strong Earnings Growth
STRONG EARNINGS GROWTH Up March 2004 £m March 2003 £m Net rental income 2% 523.0 513.7 Profit before tax 7% 186.0 174.3 Gains on property disposals 46% 38.9 26.7 Underlying profit before tax - 147.1 147.6 Effective tax rate 7.8% 19.3% EPS1 33% 36.3p 27.3p Dividend per share 8% 14.5p 13.4p 1 Adjusted
Slide 7: Strong Operating Cash Flow
STRONG OPERATING CASH FLOW March 2004 March 2003 £m £m Net cash inflow from operating activities 381.4 373.6 Dividends received 79.9 22.9 Net interest (288.6) (282.7) Tax paid (9.6) (18.8) Net cash inflow from operating activities 163.1 95.0 after interest and tax Operating cash flow per share 33.4p
Slide 8: Total Return: 14.1%
TOTAL RETURN: 14.1% Increase in NAV 107.0p + 12.5% Dividend 14.5p + 1.6% Total Return 121.5p + 14.1% NAV1 Shares Per Share1 £m m Pence As at 31 March 2003 4,465 520 859 Valuation movements2 468 90 Retained profit 101 19 Shares (1) 1 (2) Other 2 - As at 31 March 2004 5,035 521 966 1 Adjusted, diluted
Slide 9: Debt: Long and Cheap
DEBT: LONG AND CHEAP March 2004 March 2003 £m £m Net debt - Group £4,867m £4,361m - Weighted average debt maturity 16.9 yrs 18.0 yrs - Weighted average interest rate 6.38% 6.31% - % of net debt at fixed or capped interest rates 84% 83% - Interest cover1 1.55x 1.61x Cash and available undrawn committ
Slide 10: New Accounting Standards: Early Adoption
NEW ACCOUNTING STANDARDS: EARLY ADOPTION FRS 17 ‘Retirement Benefits’ – Defined benefit pension scheme assets measured using fair values – Recognised a net pension asset of £0.1m (2003: liability £6.0m), only 0.002% of adjusted net assets – Reduction in profit before tax of £1.0m (2003: increase £
Slide 11: Long-Term Income Profile
LONG-TERM INCOME PROFILE ASSUMING NO RENTAL VALUE GROWTH As at 31 March 2004 800 700 600 500 £m 400 300 200 100 0 05 06 07 08 09 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 Development programme committed and prospective Current interest cost Reversionary income Renewal of leases on expiry or break
Slide 12: 5 Year Total Returns: 10.5% Compound Growth pa
5 YR TOTAL RETURNS: 10.5% COMPOUND GROWTH PA Total Return 1 Year 5 Years Compound average total return pa 14.1% 10.5% Dividends per Share Net Asset Value per share1 15 1000 12 800 9 600 Pence Pence 6 400 3 200 0 0 2000 2001 2002 2003 2004 2000 2001 2002 2003 2004 Year ended 31 March As at 31 March I
Slide 13: 5 Year Earnings: 9.9% Compound Growth pa
5 YR EARNINGS: 9.9%1 COMPOUND GROWTH PA 200 175 38.9 26.7 150 50.5 43.8 44.3 147.6 147.1 125 127.5 120.6 112.1 £m 100 75 ` 50 25 0 2 2000 2001 2002 2003 2004 Year ended 31 March Gains on asset disposals and one-off gains Underlying profits before tax Profit after tax 1 Profits after tax 2 Adjusted f
Slide 14: Property Review
PROPERTY REVIEW BOB BOWDEN, PROPERTY INVESTMENT DIRECTOR Results ResultsPresentation Presentation Year Yearended ended31 31March March2004 2004
Slide 15: Portfolio Split
PORTFOLIO SPLIT 43% Offices: 94% Central London 52% Retail: 78% Out of Town Central London Shopping Centres 40% 20% Broadgate 25% Meadowhall 13% Regent’s Place 5% Supermarkets 14% Provincial Retail Warehouses Other High Street 3% 13% 5% 5% Developments classified by end use Results Presentation Year
Slide 16: Valuation £10,639m: Up 4.7%
VALUATION £10,639M: UP 4.7%1 All Retail 12.4 % Shopping Centres 8.3 % Supermarkets 15.1 % Retail Warehouses 15.1 % Shops 14.9 % Retail Development 3.0 % All Offices -3.2 % City Offices -5.2 % West End Offices 1.5 % Business Parks & Provincial 8.2 % Office Development -1.8 % Other 5.1 % 1 % Change by
Slide 17: Weighted Contribution by Sector: Up 4.7%
WEIGHTED CONTRIBUTION BY SECTOR: UP 4.7%1 All Retail 6.0 % Shopping Centres 1.6 % Supermarkets 1.9 % Retail Warehouses 1.8 % Shops 0.7 % Retail Development 0.0 % All Offices -1.5 % City Offices -1.7 % West End Offices 0.1 % Business Parks & Provincial 0.2 % Office Development -0.1 % Other 0.2 % 1 %
Slide 18: The Components of Capital Growth
THE COMPONENTS OF CAPITAL GROWTH Stamp duty effect £133m (1.3% uplift) Shopping Centres Supermarkets Retail Warehouses Shops City Offices West End Offices Total Portfolio -20 -16 -12 -8 -4 0 4 8 12 16 20 % ERV Impact Yield Impact Income Residual Source: IPD (standing investments only) Results Presen
Slide 19: Sector Returns: Last 5 Years
SECTOR RETURNS: LAST 5 YEARS 200 Retail Warehouses (195) Supermarkets (192) 190 180 Shops (180) Index March 1999 = 100 170 160 TOTAL PORTFOLIO (156) Shopping Centres (155) West End Offices (154) 150 140 City Offices (141) 130 120 110 100 1999 2000 2001 2002 2003 2004 Year ended 31 March Source: IPD
Slide 20: Benchmarking of Property Returns
BENCHMARKING OF PROPERTY RETURNS Ungeared Total Returns pa British Land1 IPD2 10 years to March 2004 10.8% 10.7% Year to March 2004 10.9% 12.4% Year to March 2004 British Land1 IPD2 Offices 2.4% 6.1% Retail 18.8% 16.4% Industrial 16.8% 12.2% Other commercial 9.2% 12.8% Total portfolio 10.9% 12.4% 1
Slide 21: Income: Low Risk vs Benchmark
INCOME: LOW RISK VS BENCHMARK British Land IPD1 % % Rental income rated: Negligible, low and low / medium risk 91.8 81.5 Medium / high risk 4.3 10.8 High risk 2.1 5.2 Unmatched 1.8 2.5 Total 100.0 100.0 1 Tenant Income Credit rating Covenant Strength (TICCS) using a Dun & Bradstreet Stress Score Sou
Slide 22: £371m Sales: 12% Above Valuation
£371M SALES: 12% ABOVE VALUATION £m1 Gain £m1,2 Group St Stephens Green and Cherrywood, Dublin 93 6 80 residential units 15 1 28 other properties 123 16 231 23 Joint Ventures 19 high street shops (BLU) 81 6 30 pubs (PHIC) 41 7 4 other properties 18 2 140 15 Total 371 38 1 Group and 100% of JVs, excl
Slide 23: £562m Purchases: 69% Retail
£562M PURCHASES: 69% RETAIL £m1 Group 50% of BL Universal portfolio 364 Majority interest in Blythe Valley Park 50 Remaining interests in St Nicholas Centre, Aberdeen 43 Priory Retail Park, Merton 35 146 residential units 20 4 other properties 18 530 Joint Ventures Daventry IRFT (BL Rosemound) 28 1
Slide 24: BLU: GUS 50% Bought at NNNAV
BLU: GUS 50% BOUGHT AT NNNAV £728m portfolio: 83% retail, 17% offices Shops Retail Prime retail assets: 38% Warehouses 37% – £267m of retail warehouses – £271m of high street shops Handpicked portfolio purchased off market Supermarkets 5% Low transaction costs Shopping Centres £84m uplift
Slide 25: The Scottish Retail Property Limited Partnership
THE SCOTTISH RETAIL PROPERTY LIMITED PARTNERSHIP Collaboration to maximise value of Aberdeen and East Kilbride Shopping Centres JV established in March 2004 with Land Securities Over 1.4m sq ft of retail space and 330 tenancies Total Properties £487m Maximise long-term value of the centres Gro
Slide 26: Songbird Bid for Canary Wharf
SONGBIRD BID FOR CANARY WHARF On 21 May, Songbird’s offer declared unconditional with 60.9% acceptances BL will own up to 16% of Songbird at a maximum cost of £147m depending on level and nature of acceptances BL also agreed terms to form JV to acquire retail and car parking assets valued at £
Slide 27: Developments: Letting Up
DEVELOPMENTS: LETTING UP 350 Euston Road, NW1 10 Exchange Square, EC2 51 Lime Street, EC3 Regent’s Place Broadgate 51,000 sq ft let to 420,000 sq ft 100% under General Medical Council 45,000 sq ft let to offer to Willis Group and remaining 15,500 sq ft Herbert Smith under offer Rent contracted / und
Slide 28: Rents: Continuing to Grow
RENTS: CONTINUING TO GROW March 2004 Of which contracted £m £m Annualised net rents1 567.7 567.7 Reversions, vacancies and rent frees, within 5 years 61.6 27.7 Committed developments 41.5 21.4 Increase 103.1 49.1 Total 670.8 616.8 Development prospects2 175.1 1 EBRD: annualised net rents exclude and
Slide 29: Long Leases and Low Vacancy
LONG LEASES AND LOW VACANCY Average lease term, years Vacancy rate to expiry to first break % % of portfolio Total Portfolio 17.0 15.8 3.1 3.1 City Offices 14.1 12.0 3.7 1.0 West End Offices 12.2 10.1 10.0 0.7 Shopping Centres 16.4 16.0 3.3 0.8 Supermarkets 22.7 22.7 0.0 0.0 Retail Warehouses 17.1 1
Slide 30: Principal Assets
PRINCIPAL ASSETS 87% of the Portfolio Broadgate Shopping Centres Supermarkets Retail Warehouses 25% 19% 14% 13% Regent’s Place Developments High Street 5% 6% 5% Results Presentation Year ended 31 March 2004 30
Slide 31: Broadgate £2,665m: Down 4.6%
BROADGATE £2,665M: DOWN 4.6% March 2004 March 2003 Valuation £2,665m £2,784m - Change % (4.6)% (6.0)% Initial yield 6.0% 5.9% Estimated rental value £ psf £37.50 £45.80 Average passing rent £ psf £46.15 £45.75 See Appendix page 66 for details of rent reviews Results Presentation Year ended 31 March
Slide 32: Regent's Place £531m: Up 2.9%
REGENT’S PLACE £531M: UP 2.9% March 2004 March 2003 Valuation £531m £505m Change % 2.9% (1.0)% Equivalent yield 5.92% 6.22% £24.00 £18.50 Estimated rental value £ psf to £37.50 to £43.50 Total passing rent pa £28.9m £17.7m Results Presentation Year ended 31 March 2004 32
Slide 33: Meadowhall £1,400m: Up 7.1%
MEADOWHALL £1,400M: UP 7.1% March 2004 March 2003 Valuation 1,400m £1,300m Change % 7.1% 1.3% Equivalent yield 5.29%1 5.44% Total estimated rental value pa £75.4m £74.7m Total passing rent pa £70.1m £68.0m 1 True equivalent yield is 5.47% on actual basis of rent quarterly in advance See Appendix pag
Slide 34: Supermarkets £1,495m: Up 15.1%
SUPERMARKETS £1,495M: UP 15.1% March 2004 March 2003 Number of supermarkets 88 93 Valuation £1,495m £1,268m Change % 15.1% 11.0% Initial yield 5.6% 6.3% £8.50 £8.50 Estimated rental value £ psf to £27.50 to £22.50 Average rent £ psf £19.05 £18.61 Results Presentation Year ended 31 March 2004 34
Slide 35: Supermarkets: 96% Superstores by Value
SUPERMARKETS: 96% SUPERSTORES BY VALUE < 25,000 sq ft1 > 25,000 sq ft1 Total Number 22 66 88 Valuation £62m £1,433m £1,495m Sq ft 0.3m 4.6m 4.9m Average capital value psf £193 £350 £339 Average rent psf £12.63 £19.51 £19.05 Highest ERV psf £13.75 £27.50 £27.50 Average store size sq ft 14,971 69,582
Slide 36: Retail Warehouses £1,393m: Up 15.1%
RETAIL WAREHOUSES £1,393M: UP 15.1% March 2004 March 2003 Number of retail warehouses 66 69 Valuation £1,393m £1,065m Change 15.1% 11.7% Initial yield 5.3% 5.8% Average estimated rental value £ psf £17.71 £16.44 Average rent £ psf £15.79 £14.31 Results Presentation Year ended 31 March 2004 36
Slide 37: High Street Retail £541m: Up 14.9%
HIGH STREET RETAIL £541M: UP 14.9% March 2004 Number of shops 95 Number of department stores 17 Valuation £541m Change 14.9% Initial yield 5.5% Average department store rent psf £7.07 Results Presentation Year ended 31 March 2004 37
Slide 38: Expanding Development Programme
EXPANDING DEVELOPMENT PROGRAMME March 2004 March 2003 Committed Prospects1 Committed Prospects Net Area (sq ft) 1.1m 6.6m 1.0m 3.8m Construction Cost £m2 320 1,361 319 717 Rent £m3 42 175 43 104 Pre-let Rent £m 21 - 19 - 1 Includes 51 Lime Street which is under offer to Willis Group 2 Costs of const
Slide 39: Committed Developments
COMMITTED DEVELOPMENTS 1 Plantation Place and 10 Exchange Square completed post year end on time and within budget: 64% let by rent Projects Date3 Sq ft Construction Rent2 Pre-let cost1 Completed 1 Plantation Place 540,000 £201.6m £26.5m £19.4m April 04 2 Plantation Place June 04 161,000 £60.2m £7.1
Slide 40: Development Prospects
6% DEVELOPMENT PROSPECTS Sq ft Cost £m1 Planning 201 Bishopsgate City office 747,000 183 Detailed 122 Leadenhall Street City Office 600,000 255 Submitted 51 Lime Street City Office 420,000 153 Pre Submission2 Ludgate West City office 126,000 39 Detailed West End office/ Submitted/ Regent’s Place 1,2
Slide 41: Market Commentary
MARKET COMMENTARY Results ResultsPresentation Presentation Year Yearended ended31 31March March2004 2004
Slide 42: City Market: Take Up Begins to Turn
CITY MARKET: TAKE UP BEGINS TO TURN 8000 7000 Take up (rolling annual) 000s sq ft 6000 5000 4000 3000 2000 1000 0 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 Q1 Q1 Q1 Q1 Q1 Q1 Q1 Q1 Q1 Q1 Q1 Q1 Source: Property Market Analysis (PMA) Results Presentation Year ended 31 March 2004 42
Slide 43: City Market: Viewings Up
CITY MARKET: VIEWINGS UP No. of viewings 240 207 200 172 157 160 143 124 120 107 109 96 85 80 40 0 Q1 Q2 Q3 Q4 2002 2003 2004 Source: Jones Lang LaSalle Results Presentation Year ended 31 March 2004 43
Slide 44: City Market: Increase in Demand
CITY MARKET: INCREASE IN DEMAND 7 9.3m 6 7.6m 5 7.3m 4 5.5m m Sq ft 3 2 1 0 Q2 2003 Q3 2003 Q4 2003 Q1 2004 Active Demand Potential Demand Source: Jones Lang LaSalle See Appendix page 68 for detailed list of major named active requirements Results Presentation Year ended 31 March 2004 44
Slide 45: City Market: Construction Starts Cut Back
CITY MARKET: CONSTRUCTION STARTS CUT BACK 5 4 3 m sq ft 2 1 0 Jan-01 Jul-01 Jan-02 Jul-02 Jan-03 Jul-03 Jan-04 Source: Property Market Analysis (PMA) Results Presentation Year ended 31 March 2004 45
Slide 46: City Market: London Employment Rising
CITY MARKET: LONDON EMPLOYMENT RISING 400 1150 375 1100 350 1050 325 1000 Number '000 Number '000 300 950 275 900 250 850 225 800 200 175 750 150 700 1991 1993 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 E E E E E City jobs (left hand axis) Business services jobs (right han
Slide 47: City Market: Prime Rent vs Vacancy Rate
CITY MARKET: PRIME RENT VS VACANCY RATE 20 80 18 70 Agents’ 16 Consensus 60 Prime Rent £ per Sq Ft 14 50 % Vacancy 12 10 40 8 30 6 20 4 2 10 BL Forecast 0 0 1984 1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 E 2005 E 2006 E Vacancy Rate (left-han
Slide 48: City Market: Forecast
CITY MARKET: FORECAST Total Supply Take Up End of Year Forecast Sq ft Sq ft Vacancy Rate Year 2004 Start 13.3m 15.7% New completions 1.2m Estimated 2nd hand releases 0.9m Total vacancy 2004 15.4m 3.5m 13.8% Year 2005 Start 11.9m New completions 0.1m Estimated 2nd hand releases 0.25m Total vacancy 20
Slide 49: City Market: Forecast Rents
CITY MARKET: FORECAST RENTS Agents’ Consensus BL City Rent Reviews Range £psf Average Increase % of rent roll 2004 42.50 – 47.50 22% 2005 42.50 – 51.00 + 4% 17% 2006 45.00 – 54.00 + 6% 23% 2007 49.50 – 60.50 + 10% 14% 2008 56.75 - 64.50 + 11% 24% BL’s average City Office passing rent £45.50 psf Resu
Slide 50: City Market: Forecast Effective Rents
CITY MARKET: FORECAST EFFECTIVE RENTS 80 70 60 £ psf 50 40 30 20 88 90 92 94 96 98 00 02 04 06 08 Headline Effective Source: Property Market Analysis (PMA) Results Presentation Year ended 31 March 2004 50
Slide 51: Central London: Strong Investment Market
CENTRAL LONDON: STRONG INVESTMENT MARKET Q1 2004 2003 2002 2001 2000 £2.9bn £6.9bn £6.9bn £7.9bn £7.9bn Average value of deals last ten years: £5.3bn pa Source: Jones Lang LaSalle See Appendix page 69 for detailed list of completed deals Results Presentation Year ended 31 March 2004 51
Slide 52: Portfolio Split
PORTFOLIO SPLIT 43% Offices: 94% Central London 52% Retail: 78% Out of Town Central London Shopping Centres 40% 20% Broadgate 25% Meadowhall 13% Regent’s Place 5% Supermarkets 14% Provincial Retail Warehouses Other High Street 3% 13% 5% 5% Developments classified by end use Results Presentation Year
Slide 53: Out of Town: New Retail Parks Restricted
OUT OF TOWN: NEW RETAIL PARKS RESTRICTED New retail park space has slowed to half the level of 1997, after the PPG revision 5,000 37 41 35 37 33 Floorspace opened (Sq ft '000) 4,000 30 31 29 3,000 23 18 18 18 14 2,000 11 1,000 - 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 N
Slide 54: Out of Town: New Foodstores Restricted
OUT OF TOWN: NEW FOODSTORES RESTRICTED 80 70 Number of Stores Opened 60 58 (edge and out of town) 50 40 30 Trendline 20 17 10 0 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 Source: Institute of Grocery Distribution (IGD) Results Presentation Year ended 31 March 2004 54
Slide 55: Out of Town: Continuing to Outperform
OUT OF TOWN: CONTINUING TO OUTPERFORM 2003-2008 Forecast: Out of town 5.2% pa In Town 3.9% pa Out of Town retailing continues to take an increasing share of retail spend (both food and non food) Sales Annual Change % of Retail Spend 1998 £54bn 7.6% 28.1% 1999 £58bn 6.6% 28.4% 2000 £62bn 6.6% 29.0% 2
Slide 56: Results: Highlights
HIGHLIGHTS NAV per share up 12.5% to 966p – Valuation up 4.7% on strong retail performance EPS up 33.0% to 36.3p, dividends up 8.2% – Underlying profit before tax stable at £147m Investment market buoyant Central London office market has begun to turn Supermarkets and retail warehouses show total re
Slide 57: Appendix
APPENDIX Results ResultsPresentation Presentation Year Yearended ended31 31March March2004 2004
Slide 58: Analysis of Net Rental Income Movement
ANALYSIS OF NET RENTAL INCOME MOVEMENT Rent reviews and new lettings 29.8 Lease incentives1 -16.5 Purchases 28.9 Sales -10.4 Joint ventures -11.0 Asset management and other -11.5 Total 9.3 £m 1 In accordance with UITF 28, including EBRD Results Presentation Year ended 31 March 2004 58
Slide 59: Tax Charge
TAX CHARGE Gross Tax £m £m Tax on profit for the year at 30% 186.0 55.8 Losses (revenue and capital) (29.3) Capital allowances (7.8) Other (11.1) Corporation tax charge 7.6 4.1% Deferred tax charge 6.9 Tax charge for March 2004 14.5 7.8% Year ended 31 March 20001 20011 2002 2003 2004 Effective tax r
Slide 60: Accessing a Flexible Pool of Finance
ACCESSING A FLEXIBLE POOL OF FINANCE Group Group and JVs Mortgage ratio 48% 51% NAV Gearing 100% 111% £6.6bn Gross Finance Availability £1.0bn Undrawn Securitisations (Fixed Rate Bonds) - Group Securitisations (Floating Rate Bonds) - Group 1 Debentures - Group Debentures - JVs US Private Placements
Slide 61: Long-Term Income Profile Assumptions
LONG-TERM INCOME PROFILE ASSUMPTIONS • Annualised net rents of £567.7 million at 31 March 2004 are shown to decrease on the first to occur of lease expiry or tenant’s break. Annualised net rents have been reduced by £18.975m pa to reflect the cash flow effect of EBRD’s 3 years and 5 months nil rent
Slide 62: Portfolio Valuation
PORTFOLIO VALUATION £m % Change %1 Offices: City 3,079 28.9 (5.2) West End 671 6.3 1.5 Business Parks & Provincial 244 2.3 8.2 Development 625 5.9 (1.8) All Offices 4,619 43.4 (3.2) Retail: Shopping Centres 2,060 19.4 8.3 Supermarkets 1,495 14.0 15.1 Retail Warehouses 1,393 13.1 15.1 Shops 541 5.1 1
Slide 63: Reversionary Income: £61.6m
REVERSIONARY INCOME: £61.6M Excluding developments Annualised Reversion1 Reversionary net rents £m £m net yield1 Offices: City 182.8 24.7 6.7% West End 39.0 4.7 6.5% Business parks & Provincial 18.7 0.8 8.0% All Offices 240.5 30.2 6.8% Retail: Shopping Centres 111.4 11.4 6.0% Supermarkets 83.1 3.7 5
Slide 64: Analysis of Reversions: Within 5 Years
ANALYSIS OF REVERSIONS: WITHIN 5 YEARS March 2004 Of which contracted £m £m Rent reviews 19.0 5.5 Letting of vacant space 20.4 - Expiry of rent-free periods 22.2 22.2 Total 61.6 27.7 As determined by independent valuers Results Presentation Year ended 31 March 2004 64
Slide 65: Strong Tenant Base
STRONG TENANT BASE Top 30 tenants represent c. 58% of total rental income Top 30 tenants by rental income1 1. J Sainsbury 11. Henderson Holding Group 21. Denton Wilde Sapte 2. Tesco 12. Bhs/Arcadia Group 22. Allders 3. UBS 13. Somerfield 23. Next 4. Lehman Brothers 14. Deutsche Bank 24. Bank One 5.
Slide 66: Broadgate: Rent Reviews
BROADGATE: RENT REVIEWS • 5 rent reviews settled on 463,330 sq ft: overall increase in income of £1.4m Building Tenant Sq ft New Rent psf Old Rent psf 1 Finsbury Avenue UBS 262,400 £45.11 £45.11 2 Finsbury Avenue UBS 100,500 £45.00 £43.64 3 Finsbury Avenue Henderson 73,300 £46.00 £32.80 199 Bishopsg
Slide 67: Meadowhall: More Fashion
MEADOWHALL: MORE FASHION New Rent Old Rent Increase 28 Lettings £5.2m £4.1m 27% 13 Rent Reviews £3.4m £2.7m 25% Total £8.6m £6.8m 26% New Tenants Tenants Expanding Blacks JJB Sports Mama’s & Papa’s Jane Norman O’Neill Evans Faith Claire’s Accessories Bank Jane Shilton Mikey Starbucks (3 units) Resul
Slide 68: City Market: Active Demand Q1 2004
CITY MARKET: ACTIVE DEMAND Q1 2004 Tenant Business Sector Max Sq ft IPC Media (Under Offer) Printing, Publishing & Recording 430,000 Willis (Under Offer) Insurance 420,000 Norton Rose Legal 250,000 S J Berwin (Under Offer) Legal 219,000 Addleshaw Goddard Legal 150,000 Lawrence Graham Legal 150,000 H
Slide 69: Central London: Acquisition Yields Q2/03 – Q1/04
CENTRAL LONDON: ACQUISTION YIELDS Q2/03 – Q1/04 Property Purchaser Lease expiry Price Yield Steel House, Tothill Street, SW1 Private Irish Investor 23 yrs £33m 5.40% Tower Place, Lower Thames Street, EC3 DB Real Estate 24 yrs £212m 5.50% 22 Hanover Square, W1 SWIP 5 yrs £54m 5.67% 70 Gracechurch Str
Slide 70: Basis of preparation and forward-looking statements
The information has been extracted largely from the Preliminary Announcement for the year ended 31 March 2004. General property market data has been extracted from Jones Lang LaSalle and other agents’ reports. Figures include our share of joint ventures, unless otherwise stated. Adjusted diluted net