Shaftesbury Capital Plc · LSE:SHC
Shaftesbury Capital — Capital & Counties Properties PLC (Capco) — FY2022 Earnings Presentation
44 slides from Shaftesbury Capital's earnings presentation, March 2023
Slide 1: Capco Annual Results 2022
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Slide 2: Introduction
Introduction lan Hawksworth Financial review Situl Jobanputra Covent Garden Michelle McGrath Shaftesbury Capital lan Hawksworth Q&A 2 Annual Results 2022
Slide 3: Introduction
- Introduction lan Hawksworth
Slide 4: Enduring appeal of the West End
Enduring appeal of the West End London is a leading global city ~ At the heart of the capital is the West End - Unrivalled concentration of entertainment and cultural attractions Long-term resilience of the West End - Strong recovery in footfall; customer sales ahead of 2019 levels Significant growt
Slide 5: Note: All numbers shown at Group share
Note: All numbers shown at Group share
Slide 6: Estate greening, Smartworks, Charity Shop
− − − Estate greening − Smartworks Charity Shop
Slide 7: Financial review
t Sy Financial review Situl lobaaPulre
Slide 8: Note: All numbers shown at Group share
Note: All numbers shown at Group share
Slide 9: Gross income to net over-rented ERV bridge
100 80 60 40 20 0 Dec-22 Gross Rent-frees and Turnover and other Contracted and Total contracted Vacancy Development and Net over rented Dec-22 Income stepped rents income under offer and under offer refurbishment ERV
Slide 10: Financial summary at Group share
1 The market value of investment, development & trading property is £1,820.7m (31 December 2021: £1,814.7m) 2 Capco’s investment in Shaftesbury PLC held at fair value, 368 pence per share at 31 December 2022 (31 December 2021: 615 pence) Note: All numbers shown at Group share. A reconciliation of th
Slide 11: Pro forma combined EPRA NTA of c.192p per share post-merger
220 Pro forma combined EPRA NTA of c.192p per share 210 post-merger1 200 190 +2.2p 213.0p -28.1p -0.7p -2.5p 180 -1.8p 170 182.1p 160 Restated Dec-21 Shaftesbury fair value Revaluation Underlying earnings Non-underlying costs Dividend & other Dec-22 movement Prior year numbers restated where appropr
Slide 12: Cash and undrawn facilities
800 600 400 200 0 Dec-21 Underlying Shaftesbury Dividend Refurbishment and Non-underlying Financing Dec-22 operating cash dividend income payments disposal of costs inflow property Cash Undrawn facilities Tenant deposits and the standby facility are excluded from cash and undrawn facilities Note: Al
Slide 13: Resilient and flexible capital structure
Resilient and flexible capital structure Covent Garden Covent Garden Covent Garden Group net debt Net debt to net debt LTV ICR gross assets £366m 21% 3.9x £622m 28% Access to significant liquidity and £750 million drawn at fixed cost substantial headroom against debt £275 million exchangeable bonds
Slide 14: Covent Garden
Covent Garden ichelle McGrath a Qa S a 8 Annt 14
Slide 15: Covent Garden performance
Covent Garden potormance UU Luk ey ee, RARER tslnax Property value £1.7bn unchanged Strong leasing demand across all uses - 7] leasing transactions (£ 10m contracted income) - Leasing activity well ahead of previous passing rents Unchanged valuation for the year - HI] 22 +5% If; H2 22 -5% If - Equiv
Slide 16: Central London Prime comparison
1,000 900 800 700 600 500 400 300 200 100 0 Central Covent James St King St Market Bldg Royal Opera Henrietta St - Long Acre Floral St - Henrietta St - Floral St - Bedford St London Garden House East East West West Prime* Average**
Slide 17: Luxury, dining, jewellery, cosmetics, fashion
LUXURY DINING JEWELLERY COSMETICS FASHION
Slide 18: Attractive fundamentals underpinning leasing demand
Attractive fundamentals underpinning leasing demand Prime West End location - Strong footfall drivers, connectivity, diverse consumer mix Global brand recognition - Flagship destination, customer acquisition, brand value Mixed use ecosystem - Targeted range of uses, categories and experiences Experi
Slide 19: Covent Garden properties
− − 39-40 Bedford Street 35 King Street 5-6 Henrietta Street − − − − 36-29 Maiden Lane 15-17 Long Acre
Slide 20: Looking ahead to Shaftesbury Capital PLC
athe feral ca : Lewd see et: Looking ahead to Shaftesbury | Capital PLC lan Hawksworth f ee eee Annual Results 2022 oe vie he =
Slide 21: Shaftesbury Capital combined group
− − − − − − − Refer to slide 42 for Shaftesbury Capital sources of information
Slide 22: Combined wholly-owned and joint venture portfolio
Combined wholly-owned portfolio Joint venture portfolio Note: this map is for indicative purposes only As at 31 December 2022
Slide 23: Slide 23
Slide 24: Slide 24
Slide 25: FTSE4Good
FTSE4Good 68th percentile th
Slide 26: Energy Performance Certificates (EPC)
Energy Performance Certificates (EPC) Strategy to re-use, re-purpose and improve Enhance energy performance credentials Number of Units Incremental refurbishment activities Significant embedded carbon 323' Re-use building fabric where possible Improving EPC ratings across the estate - 68% of units h
Slide 27: Net Zero Carbon by 2030
Net Zero Carbon by 2030 Focused on five key activities: 50% reduction in embodied carbon — Prioritise innovative refurbishment using sustainable materials ~ Whole Life Carbon assessments 60% reduction in operational carbon - Drive down energy demand Prioritise innovation and renewables - New technol
Slide 28: Valuation movement
£m 2,500 2,000 1,500 1,000 500 0 Dec-21 valuation ERV growth Yield movement Capex & other Dec-22 valuation 1. 2019 valuation adjusted for disposal of Wellington block, Southampton Street, Bedford Street and King Street properties (£200m)
Slide 29: Covent Garden portfolio
N ys XK Covent Garden portfolio Leisure/ Retail F&B Office _ Residential Other Total Valuation £840m £455m £270m £127m £50m £1,742m Gross income £28.8m £17.4m £10.4m £3.4m £2.0m £62.0m ERV £38.3m £19.5m £17.0m £4.1m £2.1m £81.0m Area (square foot) 0.4m 0.2m 0.2m 0.2m! 0.1m 1.4m Units 120 68 68 196 5
Slide 30: Covent Garden portfolio properties, lettable units
Covent Garden portfolio 70 properties, 504 lettable units 30 Lease expiry profile’ = 2023: 22% 2024: 9% WALE 7.5yrs | | = 2025: 9% = 2026: 9% m 2027+: 51% 1. Lease expiry profile based on the eatier of lease break and lease expiry Property value gi mRelail: 48% mFBB: 26% £1.7bn Offices: 16% mResiden
Slide 31: Covent Garden portfolio analysis
Covent Garden portfolio analysis December 2022 Zone A Map
Slide 32: Note: All numbers shown at Group share
Note: All numbers shown at Group share
Slide 33: Summary balance sheet
Summary balance sheet Group share to IFRS as at 31 December 2022 less: Group share Joint ventures! IFRS Sm Sm Sm Invesiment, development & trading property 1,785 (70) 1,715 Equity investment? 357 - 357 Other assets and liabilities 42 76 118 Net debt (622) (6) (628) NAV 1,562 - 1,562 1. Primarily Lil
Slide 34: Debt maturity profile
500 450 400 350 300 250 200 150 100 50 0 2023 2024 2025 2026 2027 2028 2029 2030-2037 USPP Series 1 USPP Series 2 USPP Series 3 Exchangeable Bond
Slide 35: Taxation summary
Taxation summary Tax on income and gains The total tax charge for the year, made up of both underlying tax and norunderlying tax, is £6.0 million. The Group is a UK Real Estate Investment Trust (REIT) and therefore is exempt from UK corporation tax on income and gains arising from its qualifying pro
Slide 36: Lillie Square joint venture
Lillie Square joint venture Continuing to progress sales - Sunits sold during 2022 representing £6.6 million (£3.3 million Capco share] - 69 units remain available across Phase 1 and Phase 2 Valuation - 6% decline (likeforlike) to £79 million’ (Capco share) Funding - £35m cash distribution to joint
Slide 37: Shaftesbury Capital PLC appendix
Shaftesbury Capital PLC appendix Annual Results 2022
Slide 38: Progressive dividend policy
1 1 • • • Progressive dividend policy underpinned by income growth prospects and effective cost and capital management 1. Figures reflect Capco as at 31 Dec 2022 and Shaftesbury as at 30 Sept 2022 2. Figures reflect aggregation of the last twelve months’ reported numbers for each company; (Capco 1 J
Slide 39: Combined debt structure and cash
1800 Borrowing group: Capco 1600 2026 2026 Shaftesbury 1400 1200 2029-2035 Standby facility in place to fund 1000 repayment if bondholder put rights are exercised 2024-2037 800 600 £575m 400 2027-2031 200 Cash 0 Secured mortgage bonds Unsecured Unsecured US private loans1 Secured term loans¹ Exchang
Slide 40: Shaftesbury Capital debt maturity profile
Shaftesbury Capital debt maturity profile £m 500 £576m standby 450 facility in place in case of redemption 400 350 300 Capco £300m . 250 undrawn RCF maturing in 2025, 200 plus 1-year extension subject to lender 150 consent 100 . a ie) 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032-2037 Hi Capco -
Slide 41: Standby facility terms
This is the Loan Facility Agreement as defined in the 2.7 Announcement
Slide 42: Shaftesbury Capital sources of information
3 4 5 7 1. Portfolio valuations as per external valuations undertaken as at 31 December 2022 and disclosed in the Capco and Shaftesbury respective trading updates announced on 30 January 2023 2. JV share of property value in respect of Capco’s and Shaftesbury’s 50% interests in Lillie Square and Lon
Slide 43: Expected timetable of principal events
Expected timetable of principal events Dates ICMA clearance Wednesday 22 February 2023 Publication of Capco annual results for 2022 Wednesday 1 March 2023 Court sanction hearing Thursday 2 March 2023 Publication of supplementary prospectus and Capco annual Friday 3 March 2023 report for 2022 Last da
Slide 44: Important notices
Important notices This presentation does not constitute an invitation to underwrite, subscribe for, or otherwise acquire or dispose of any shares or other securities in Capital & Counties Properties PLC ("Capco'}. This presentation contains or may contain certain forwardlooking statements, made with
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