British Land Company PLC · LSE:BLND
British Land — Shareholder Meeting (July 2019)
20 slides from British Land's shareholder meeting presentation, Jul 19, 2019
Slide 1: Annual General Meeting
Annual General Meeting 19 July 2019 www.britishland.com @BritishLandPLC
Slide 2: Progressing our strategy
Progressing our strategy John Gildersleeve, Chairman
Slide 3: We have delivered good operational and strategic progress
We have delivered good operational and strategic progress • Robust performance – NAV down 6% reflecting challenges in retail market – Development valuation +11% – Excluding surrender premia, EPS only marginally down despite asset sales • Good progress on strategy – £1.5bn dry or off-strategy assets
Slide 4: Good progress against our clear strategy
Good progress against our clear strategy Mixed Use places to work, shop and live Offices Retail Residential • Focused on London • Smaller more focused • Principally build to rent campuses portfolio • 1FA completed • £646m assets sold or • Good progress at under offer since April Clarges; only 5 unit
Slide 5: Our London campuses are a key differentiator
Our London campuses are a key differentiator 1.1m sq ft Leasing activity 1.2% Ahead of ERV 78% 76% Pre-let or under offer on developments As at March 2019 5
Slide 6: A smaller, more focused Retail business
A smaller, more focused Retail business • £646m asset sales since April £2.9bn asset sales since 2018 £m April 2014 – Includes solus retail and leisure, superstores 1.4 and smaller multi-lets 1.2 – Only progressed sales which delivered value 1.0 • Further £1.5bn sales over 5 years 0.8 – Opportunisti
Slide 7: Residential
Residential • Continued progress at Clarges – 28 units completed – 5 remaining – Total profits of £200m, IRR of 18.5% • Build to Rent – Focused on organic growth – Canada Water Masterplan envisages 3,000 homes – Further opportunities in our portfolio Clarges, Mayfair 7
Slide 8: Progressing our vision for Canada Water
Progressing our vision for Canada Water 120 public consultations Attended by more than 5,000 people Providing 12,000 comments 8
Slide 9: Positioned for the future
Positioned for the future Chris Grigg, CEO 18
Slide 10: Well positioned in uncertain markets
Well positioned in uncertain markets Strong • Loan to value 28% Balance Sheet • £1.4bn of new financing Future value • £125m share buyback programme accretive • Near and medium term development opportunities opportunities 10
Slide 11: CVAs and Administrations over last 2 years
CVAs and Administrations over last 2 years • Pro-active response to CVAs Annualised contracted rent impact by Quarter (£’m) – Managing exposure to at-risk retailers 7.0 Admins - stores closing – Re-letting space returned through CVAs / CVAs - stores closing admins quickly 6.0 CVAs - reduced rents •
Slide 12: De-risked developments providing future returns
De-risked developments providing future returns 76% Completed & committed developments Pence £m pre-let or under offer per share 4.5p annual EPS ERV 5 accretion once fully let 70 60 4 50 3 40 2 30 Pre-let or under 20 offer 1 10 0 - FY20 FY21 FY22 FY23 Committed Near Term 12
Slide 13: Building a London focused, increasingly mixed use business
Building a London focused, increasingly mixed use business March 2010 Current Indicative business split 5+ years 10% 33% 66% 51% 45% 30-35% 5% 50-55% • London focused: over 70% of group • Smaller, more focused Retail • Meaningful Residential exposure • Right balance of flexible and core workspace Re
Slide 14: Why mixed use?
Why mixed use? Occupiers Employees want space which is… want space which is… Attractive to Located in Well Safe and Sustainable Flexible Affordable Well vibrant connected promotes and skilled connected neighbourhoods wellbeing eco friendly employees Supported by Close to retail, Tech Close to Aligne
Slide 15: How our campuses deliver mixed use
How our campuses deliver mixed use Connectivity & Scale Right Mix of Uses Vibrant Local Flexibility Neighbourhoods Located in some of London’s most Range of office space in terms of World class office space exciting areas size, specification and location Dining opportunities including Complementary
Slide 16: How mixed use delivers value
How mixed use delivers value 1• Taking market share 1.1m sq ft Office leasing – Our activity accounts for 8% of the central 479,000 sq ft in negotiations London leasing market with 2.5% of the stock 2• Delivering higher rents – Most recent lettings at £80psf at Broadgate – vs £71psf for City prime r
Slide 17: The expertise to deliver 100 Liverpool Street
The expertise to deliver 100 Liverpool Street • Thoughtful design – Large but divisible floorplates providing flexibility – 90,000 sq ft retail and dining – 20,000 sq ft outdoor terraces • Sustainability integral to our plans – Saving 11,000 tonnes of embodied carbon by retaining half the original s
Slide 18: A long term focus on Sustainability
A long term focus on Sustainability • Strong track record of Southwark young carers art project environmental improvement – Carbon intensity 64% lower vs. 2009 – Energy intensity 44% lower vs. 2009 – 2 megawatts capacity from renewables • Focus on skills, opportunity and community – 1,232 people sup
Slide 19: Outlook
Outlook • London: unconventional cycle continuing – Brexit constraining office supply; pipeline likely to shift out – Occupier demand for the best quality space to remain good • Retail: likely to remain challenging – Structural issues remain – Good demand for solus assets to continue 1 Triton Square
Slide 20: Questions
Questions
British Land Company — Shareholder Meeting (July 2019) on 6ix