British Land Company PLC · LSE:BLND
British Land — H1 2024 Earnings Presentation
80 slides from British Land's earnings presentation, Nov 13, 2023
Slide 1: Half Year Results
13 NOVEMBER 2023 H A L F Y EA R R ES U LT S
Slide 2: Introduction
01 I N T R O D U CT I O N SIMON CARTER Regent’s Place HALF YEAR RESULTS | 30 SEPTEMBER 2023 PG.2
Slide 3: HY 2024 Headlines
HY 2024 HEADLINES CONTINUED OPERATIONAL YIELD SHIFT SLOWED & RENTAL ATTRACTIVE FUTURE RETURN MOMENTUM GROWTH ACCELERATED PROFILE Strong leasing 1.6m sq ft, 12.2% ahead of ERV 23bps outward yield shift Rental growth expected to be at top end of guidance range Good cost control ERV growth >3% in chose
Slide 4: Bifurcation Accelerating: We Are in the Right Submarkets
BIFURCATION ACCELERATING: WE ARE IN THE RIGHT SUBMARKETS BROADGATE IS OUTPERFORMING RETAIL PARKS ARE RETAILERS’ FUNDAMENTALS STRONGEST REST OF THE CITY PREFERRED FORMAT IN LONDON URBAN LOGISTICS − Broadgate vacancy 3.0% vs 11.5%1 − Net store openings on retail parks vs − Inner London vacancy 0.4%4 v
Slide 5: Financial Results
FINANCIAL R E S U LT S BHAVESH MISTRY Fort Kinnaird, Edinburgh HALF YEAR RESULTS | 30 SEPTEMBER 2023 PG.5
Slide 6: Good Performance and Resilient Balance Sheet
GOOD PERFORMANCE AND RESILIENT BALANCE SHEET £142M 15.2P 12.16P Underlying Profit Earnings per share Dividend per share +3.4% vs Sep 22 +3.4% vs Sep 22 +4.8% vs Sep 22 565P 36.9% 6.0X EPRA NTA per share Loan To Value Group Net Debt to EBITDA -3.9% vs Mar 23 -0.4x vs Mar 23 +90 bps vs Mar 23 HALF YEA
Slide 7: Net Rental Income Growth
NET RENTAL INCOME GROWTH £m 4 (6) 9 (5) 229 231 227 218 0.9% 1 Sep-22 Net divestment Developments Provisions for debtors and Like for like growth Sep-23 tenant incentives 1 Prior period comparatives have been restated for a change in accounting policy in respect of rental concessions HALF YEAR RESUL
Slide 8: Like-for-Like Rental Income Growth
LIKE-FOR-LIKE RENTAL INCOME GROWTH £m 4.5 (4.1) 6.4 (0.8) (2.0) 194 190 191 2.1% Sep-22 1 Leasing 2 Expiries Storey Leasing 2 Expiries Sep-23 CAMPUSES RETAIL & LONDON URBAN LOGISTICS 1 Prior period comparatives have been restated for a change in accounting policy in respect of rental concessions (se
Slide 9: 3.4% Profit Increase
3.4% PROFIT INCREASE 6 months to September (£m) H1 2024 H1 20231 Change % Rent lower as Paddington sold Gross rental income 246 253 (2.8)% into JV in July 2022 Property operating expenses (15) (24) (37.5)% Net rental income 231 229 0.9% NRI margin2 93.9% 90.5% +340 bps Cost ratio & property operatin
Slide 10: EPRA NTA: Value Decline Counterbalanced by Profit Growth & Surrender Premium
EPRA NTA: VALUE DECLINE COUNTERBALANCED BY PROFIT GROWTH & SURRENDER PREMIUM (36p) 13p (11p) 15p 588p (4p) 565p 552p 537p -3.9% Mar-23 Valuation Dividend Other 1 Underlying Surrender of Sep-23 Performance Profit 1 Triton Square TOTAL ACCOUNTING RETURN –2.0% 1 Other includes movements due to share di
Slide 11: Strong Financial Position
STRONG FINANCIAL POSITION 30 Sep 31 Mar 2023 2023 EXCELLENT LIQUIDITY Net Debt1 £3.2bn £3.2bn – £1.7bn undrawn facilities and cash at 30 September 2023 – No requirement to refinance until mid-2026 Net Debt to EBITDA Group2 6.0x 6.4x GOOD ACCESS TO DEBT MARKETS Proportionally consolidated 8.0x 8.4x –
Slide 12: Loan to Value
LOAN TO VALUE 1.7% 0.1% (1.0)% (1.7)% 1.4% 0.4% 38% 37% 36.9% 36.0% 90 bps Mar-23 Valuation Acquisitions Development 1 Other 2 Disposals 1 Triton Surrender Sep-23 Movement Spend Premium 1 £191m development spend, £41m capex (asset management initiatives) HALF YEAR RESULTS | 30 SEPTEMBER 2023 2 Other
Slide 13: Capital Allocation in HY 2024
CAPITAL ALLOCATION IN HY 2024 BALANCE SHEET ACQUISITIONS Strengthened through disposals and Purchased Thanet Retail Park at 8.1% NIY 1 Triton Square surrender DEVELOPMENTS SHAREHOLDER DISTRIBUTIONS Committed to Peterhouse Expansion Dividend growth of 4.8% HALF YEAR RESULTS | 30 SEPTEMBER 2023 PG.13
Slide 14: Developments: Adapting to New Market Conditions
DEVELOPMENTS: ADAPTING TO NEW MARKET CONDITIONS CHALLENGES OPPORTUNITIES Higher exit yields due to Limited new supply higher interest rates coming on stream Higher finance costs Securing higher rents Construction cost inflation Increased return hurdles levelling off WE WILL CONTINUE TO BE DISCIPLINE
Slide 15: Development Pipeline
DEVELOPMENT PIPELINE COMMITTED COMMITTED INNOVATION INNOVATION Committed in H1 Progressing well with phase 1 Only office scheme with lab enabled space On track to deliver in to be delivered in Q4 2024 Cambridge in 2025 INNOVATION: PETERHOUSE CANADA WATER: PHASE 1 EXPANSION, CAMBRIDGE PIPELINE PIPELI
Slide 16: FY24 Income Statement Guidance
FY24 INCOME STATEMENT GUIDANCE MAY 2023 REVISED GUIDANCE FY24 range FY24 range £’m £’m Gross rental income down due to net disposals Gross Rental Income 480 – 500 465 - 475 and surrender of 1 Triton Square Improved NRI margin largely due to better than Net Rental Income Margin 88 – 90% 91 - 93% expe
Slide 17: Summary
SUMMARY 3.4% UNDERLYING RESILIENT BALANCE SHEET, DISCIPLINED APPROACH PROFIT GROWTH EXCELLENT LIQUIDITY TO CAPITAL ALLOCATION HALF YEAR RESULTS | 30 SEPTEMBER 2023 PG.17
Slide 18: Real Estate Review
R E A L E STAT E REVIEW DARREN RICHARDS 10Fort Kinnaird, Brock Edinburgh Street, Regent’s Place HALF YEAR RESULTS | 30 SEPTEMBER 2023 PG.18
Slide 19: Yield Shift Slowed and Rental Growth Accelerated
YIELD SHIFT SLOWED AND RENTAL GROWTH ACCELERATED VALUATION YIELD ERV VALUATION £M NEY MOVEMENT MOVEMENT MOVEMENT TOTAL 8,704 -2.5% +23 bps 3.2% 6.1% Campuses 5,382 -4.0% +32 bps 3.2% 5.3% Retail & London Urban Logistics 3,322 0.1% +12 bps 3.3% 6.9% Retail Parks 2,060 0.2% +13 bps 4.0% 6.7% London Ur
Slide 20: Strong Operational Momentum Across Our Campuses
CAMPUSES STRONG OPERATIONAL MOMENTUM ACROSS OUR CAMPUSES − 368,000 sq ft of leasing activity, 7.5% ahead of ERV − 281,000 sq ft under offer, 9.7% ahead of ERV; 1.8m sq ft of negotiations on 1m sq ft of space − 71,000 sq ft of Storey leasing activity; 87% occupancy 88% OCCUPANCY 97% OCCUPANCY 100% OC
Slide 21: 1 Triton Square
CAMPUSES 1 TRITON SQUARE £149M SURRENDER PREMIUM RECEIVED OPPORTUNITY TO CAPTURE POSITIVE REVERSION FLEXIBLE PLAN − Mix of Storey and lab space on lower floors including fitted and lab enabled − Best in class office space on upper floors HALF YEAR RESULTS | 30 SEPTEMBER 2023 PG.21
Slide 22: Growing Our Presence in Innovation and Life Sciences
CAMPUSES GROWING OUR PRESENCE IN INNOVATION AND LIFE SCIENCES REGENT’S PLACE, PRIESTLEY CENTRE, PETERHOUSE EXPANSION, LONDON GUILDFORD CAMBRIDGE − Proactively taken surrenders to free up − Secured first pre-let with LGC, a global − Planning achieved and recently space for labs life sciences tools co
Slide 23: Excellent Progress on EPC Upgrades
EXCELLENT PROGRESS ON EPC UPGRADES – ON TRACK TO ACHIEVE 2030 TARGET PERCENTAGE OF THE PORTFOLIO £20M RATED EPC A OR B c.60% committed spend to FY24 on EPC upgrades of which 70% will be 50% recovered by service charge 45% 36% GRESB 5* across developments and standing investments – global industry le
Slide 24: Retail Parks Continue to Perform Strongly
R E TA I L PA R K S RETAIL PARKS CONTINUE TO PERFORM STRONGLY EXCELLENT LEASING ACTIVITY − 629,000 sq ft of deals, 14.9% ahead of ERV − 697,000 sq ft under offer, 19.3% ahead of ERV c.148,000 SQ FT OF PORTFOLIO DEALS − Hotel Chocolat, H&M and Asda OCCUPANCY REMAINS HIGH AT 99% − Reflecting strong de
Slide 25: Shopping Centres: Good Operational Performance
SHOPPING CENTRES: GOOD OPERATIONAL PERFORMANCE STRONG LEASING − 500,000 sq ft of leasing, 13.1% ahead of ERV OCCUPANCY IMPROVED TO 97% − Meadowhall occupancy highest in 10 years IDENTIFIED AS NON CORE ASSETS − Look to exit when pricing and timing is right HALF YEAR RESULTS | 30 SEPTEMBER 2023 PG.25
Slide 26: Progressing Urban Logistics Pipeline
URBAN LOGISTICS PROGRESSING URBAN LOGISTICS PIPELINE Mandela Way, Southwark Verney Road, Southwark Thurrock Planning status: Consented Planning status: Submitted Planning status: Submitted Size: 144,000 sq ft Size: 200,000 sq ft Size: 644,000 sq ft Earliest start on site: Q1 2024 Earliest start on s
Slide 27: Strong Returns on Upcoming Commitments
URBAN LOGISTICS STRONG RETURNS ON UPCOMING COMMITMENTS MANDELA WAY, SOUTHWARK THE BOX, PADDINGTON Earliest start on site: Q1 24 Earliest start on site: Q2 24 PR OSPECT IVE IR R 17.6% 24.3% IR R OF F INIT IAL PUR CHASE PR ICE 13.9% 18.2%1 1 Using the land value when first valued as a separate logisti
Slide 28: Summary
SUMMARY CONTINUED OPERATIONAL WE ARE IN THE RIGHT ATTRACTIVE FUTURE MOMENTUM SUBMARKETS RETURN PROFILE HALF YEAR RESULTS | 30 SEPTEMBER 2023 PG.28
Slide 29: Strategy & Outlook
04 ST R AT E GY & O U T LO O K SIMON CARTER 2 Finsbury Avenue, Broadgate HALF YEAR RESULTS | 30 SEPTEMBER 2023 PG.29 PG.29
Slide 30: Campuses in Sweet Spot of Demand
CAMPUSES CAMPUSES IN SWEET SPOT OF DEMAND L O C AT I O N ESG EXPERIENCE Key transport hubs Low carbon ‘Hotelification’ of space Exciting part of town Wellbeing End of trip facilities Amenity and public realm Community Flexibilit y 80% OF SPACE LET TO UK HQs HALF YEAR RESULTS | 30 S
Slide 31: Strong Demand from Banking and Finance
CAMPUSES STRONG DEMAND FROM BANKING AND FINANCE CENTRAL LONDON ACTIVE DEMAND BY SECTOR 3 (sq ft) MINI BUDGET DISLOCATION 12,000,000 − Central London take-up YTD 25% below 10 year average1 10,000,000 POSITIVE FORWARD-LOOKING 8,000,000 INDICATORS FOR CENTRAL LONDON 6,000,000 − Under offers 8% above 10
Slide 32: Demand Bifurcating for Super Prime Space
CAMPUSES DEMAND BIFURCATING FOR SUPER PRIME SPACE SUPER PRIME VS PRIME CITY RENTS 2 (£psf) £141 £145 71% OF TAKE UP FOR NEW SPACE 1 £123 £125 £106 CUSHMAN & WAKEFIELD HAVE £105 IDENTIFIED A THREE-TIER MARKET £96 £85 − Super prime*, prime and £81 £85 £78 secondary £65 £73 − Divergence of best vs the
Slide 33: Exceptional Connectivity
B R O A D G AT E C A S E S T U DY 1 EXCEPTIONAL CONNECTIVITY HALF YEAR RESULTS | 30 SEPTEMBER 2023 PG.33
Slide 34: An Exciting Part of Town Where Finance Meets Innovation
B R O A D G AT E C A S E S T U DY AN EXCITING PART OF TOWN WHERE FINANCE MEETS INNOVATION, CREATIVITY AND CULTURE HALF YEAR RESULTS | 30 SEPTEMBER 2023 PG.34
Slide 35: London's Premier Mixed-Use Campus
B R O A D G AT E C A S E S T U DY 1 LONDON’S PREMIER MIXED-USE CAMPUS VERY BROAD CUSTOMER APPEAL HALF YEAR RESULTS | 30 SEPTEMBER 2023 PG.35
Slide 36: Superior Rental Growth and Lower Vacancy
B R O A D G AT E C A S E S T U DY SUPERIOR RENTAL GROWTH AND LOWER VACANCY P E R F O R M A NC E O F B R OA D G AT E V S C I TY TRACK RECORD OF DRIVING RENTS Rents (£psf) THROUGH DEVELOPMENT* B R O A D G AT E CITY 100 95 90 VACANCY 3.0% 11.5%1 85 1 Broadgate £75 psf 80 ERV GROWTH 3.7% 0.9%2 100 Liver
Slide 37: Retail Parks Are the Preferred Physical Format for Retailers
R E TA I L PA R K S RETAIL PARKS ARE THE PREFERRED PHYSICAL FORMAT FOR RETAILERS NET STORE TAKE UP SINCE 2016 1 OCCUPATIONAL FUNDAMENTALS Affordable: Low occupancy cost ratios UK Retail Parks +572 units Best physical format for omni-channel UK High Street -3,749 units Broad range of occupiers UK Sho
Slide 38: Attractive Forward-Looking Returns
R E TA I L PA R K S ATTRACTIVE FORWARD-LOOKING RETURNS INVESTMENT UNDERPINS 6-7% Net Equivalent Yield Strong occupational fundamentals Limited capex requirements 3-5% ERV Growth Liquidity Values < replacement cost 9-12% Total Property Return HALF YEAR RESULTS | 30 SEPTEMBER 2023 PG.38
Slide 39: Occupational Fundamentals Strongest in London Last Mile
LONDON URBAN LOGISTICS OCCUPATIONAL FUNDAMENTALS STRONGEST IN LONDON LAST MILE LONDON LOGISTICS RENT VS UK BIG BOX RENT 2 (£ psf) STRONG OCCUPATIONAL £22 FUNDAMENTALS £20 £18 Growth of e-commerce £16 £14 Rising demand for priority / same day £12 delivery £10 £8 Very low vacancy at 0.4%1 £6 £4 Pollut
Slide 40: Delivering New Space in Central London via Repurposing and Densification
LONDON URBAN LOGISTICS WE ARE DELIVERING NEW SPACE IN CENTRAL LONDON VIA REPURPOSING AND DENSIFICATION OUTER LONDON: INNER LONDON: INNER LONDON: MULTI STOREY WITH RAMPS MULTI STOREY WITH RAMPS MULTI STOREY WITH LIFTS Location: M25: North/South Circular Location: Zone 1 Location: Zone 1-2 Floors: 2 F
Slide 41: Outlook
OUTLOOK MACRO AND GEOPOLITICAL UNCERTAINTY REMAINS RENTAL GROWTH EXPECTED TO BE AT TOP END OF GUIDANCE RANGE FOR FY24 − Campuses: 2-4%, reflecting strong demand for best in class space − Retail Parks: 3-5%, driven by high occupancy − London Urban Logistics: 4-5%, driven by scarcity of space HALF YEA
Slide 42: Summary
SUMMARY CONTINUED OPERATIONAL WE ARE IN THE RIGHT ATTRACTIVE FUTURE MOMENTUM SUBMARKETS RETURN PROFILE HALF YEAR RESULTS | 30 SEPTEMBER 2023 PG.42
Slide 43: Appendices
A P P E N D I C E S
Slide 44: Portfolio: Yields
PORTFOLIO: Yields PORTFOLIO NET YIELDS 1,2 As at 30 September 2023 EPRA EPRA topped up Overall topped up Net Net equivalent Net reversionary ERV net initial net initial net initial equivalent yield yield movement yield Growth 5 6 yield yield yield % bps % % 3 4 % % % West End 3.7 4.5 4.5 5.3 27 5.9
Slide 45: Portfolio: Annual Rent & ERV
PORTFOLIO: Annual Rent & ERV ANNUALISED RENT & ESTIMATED RENTAL VALUE (ERV) As at 30 September 2023 Annualised Rents ERV Average Rent (Valuation Basis) £m1 £m (£psf) Group Joint ventures Total Total Contracted2 ERV West End3 56 15 71 104 67.7 77.7 City3 5 83 88 121 56.6 65.3 Other Campuses 6 - 6 8 2
Slide 46: Portfolio: Total Property Return
PORTFOLIO: Total Property Return TOTAL PROPERTY RETURN (AS CALCULATED BY MSCI) 6 months to 30 September 2023 Offices Retail Total % British Land2 MSCI British Land2 MSCI British Land MSCI Capital Return (3.8) (8.1) 0.2 (2.5) (2.3) (2.7) - ERV Growth 3.2 1.4 3.3 0.5 3.2 1.8 - Yield Movement1 32 bps 5
Slide 47: Portfolio: Valuation
PORTFOLIO: Valuation PORTFOLIO VALUATION BY SECTOR As at 30 September 2023 Group Joint ventures Total Change%1 £m £m £m % £m West End 1,994 330 2,324 (2.5) (60) City 439 2,027 2,466 (4.6) (124) Canada Water & other Campuses 170 304 474 (9.2) (48) Residential2 116 2 118 0.8 1 Campuses 2,719 2,663 5,3
Slide 48: Portfolio: Weighting
PORTFOLIO: Weighting PORTFOLIO WEIGHTING As at 30 September 2023 2023 2023 2022 % £m % West End 26.7 2,324 29.4 City 28.3 2,466 29.3 Canada Water & other Campuses 5.5 474 4.8 Residential1 1.3 118 1.1 Campuses 61.8 5,382 64.6 Of which London 97 5,234 98 Retail Parks 23.7 2,060 21.2 Shopping Centre 8.
Slide 49: Portfolio: Top Occupiers
PORTFOLIO: Top 20 Occupiers TOP 20 OCCUPIERS R E TA I L & L O N D O N U R B A N L O G I S T I C S CAMPUSES OCCUPIER SPLIT BY INDUSTRY As at % of Retail & Urban As at (% OF RENT) % of Campus rent 30 September 2023 Logistics rent 30 September 2023 Next 4.8 Meta 12.8 Grocery & Walgreens (Boots) 4.2 Den
Slide 50: Portfolio: Valuation Movement – Campuses
PORTFOLIO: Valuation VALUATION MOVEMENT – CAMPUSES 6 months to 30 September 2023 Valuation Change Change Yield movement ERV movement £m £m %1 Bps2 %2 West End 2,324 (60) (2.5) 27 3.2 City 2,466 (124) (4.6) 38 3.5 Central London offices 4,790 (184) (3.6) 32 3.3 Canada Water & other Campuses 474 (48)
Slide 51: Portfolio: Valuation Movement – Retail & London Urban Logistics
PORTFOLIO: Valuation VALUATION MOVEMENT – RETAIL & LONDON URBAN LOGISTICS 6 months to 30 September 2023 Valuation Change Change Yield movement ERV movement £m £m %1 Bps2 %2 Retail Parks 2,060 4 0.2 13 4.0 Shopping Centre 751 0 0.0 10 2.6 London Urban Logistics 271 2 0.6 9 3.1 Other Retail 240 (2) (0
Slide 52: Portfolio: Occupancy
PORTFOLIO: Occupancy LEASE LENGTH AND OCCUPANCY As at 30 September 2023 Average Lease Length (yrs) Occupancy Rate (%) To Expiry To Break EPRA Occupancy Occupancy1,2,3 West End 6.4 5.7 89.7 90.0 City 7.2 5.9 90.0 96.7 Other Campuses 10.6 7.6 100.0 100.0 Residential4 12.3 12.3 100.0 100.0 Campuses 6.9
Slide 53: Developments: Committed
DEVELOPMENTS: Committed COMMITTED DEVELOPMENTS Sector BL Sq ft PC Current Cost to ERV Let & Gross Yield As at Share (100%) Calendar Value Come Under on Cost 30 September 2023 Year Offer % ‘000 £m £m1 £m2 £m4 %5 Norton Folgate Office 100 335 Q4 2023 346 77 24.4 9.2 5.4 The Priestley Centre Life Scien
Slide 54: Developments: Near Term
DEVELOPMENTS: Near Term NEAR TERM DEVELOPMENT PIPELINE Sector BL Sq ft Earliest Current Cost to ERV Planning As at Share (100%) Start on Value Come Status 30 September 2023 Site % ‘000 Calendar year £m £m1 £m2 Near Term Pipeline Mandela Way, Southwark London Urban Logistics 100 144 Q1 2024 19 53 4.7
Slide 55: Developments: Medium Term
DEVELOPMENTS: Medium Term MEDIUM TERM DEVELOPMENT PIPELINE As at 30 September 2023 Sector BL Sq ft Planning status Share (100%) % ‘000 Medium Term Pipeline 1 Appold Street Office 50 397 Consented International House, Ealing Office 100 165 Consented Euston Tower Office 100 539 Pre-submission 5 Kingdo
Slide 56: Developments: Future Spend
DEVELOPMENTS: Future Spend ESTIMATED FUTURE DEVELOPMENT SPEND AND CAPITALISED INTEREST As at 30 September 2023 Cost to Come £m PC calendar (excluding notional interest) – 6 months breakdown year Mar-24 Sep-24 Mar-25 Sep-25 Mar-26 Sep-26 Mar-27 Sep-27 Total Norton Folgate Q4 2023 49 28 - - - - - - 77
Slide 57: Developments: Market Supply
DEVELOPMENTS: Market Supply DE-RISKED DEVELOPMENTS DELIVERING INTO A SUPPLY CONSTRAINED MARKET 1.9M SQ FT COMMITTED FORECAST PRIME OFFICE SUPPLY/DEMAND1 – 97% committed costs fixed m sq ft 6 – 43% office space pre let/under offer 5 – Strong rental growth for new best-in- class space 4 3 2 1 0 2023 2
Slide 58: Income: Annualised Accounting
INCOME: Annualised Accounting ANNUALISED ACCOUNTING GROSS RENTAL INCOME Accounting Basis £m Annualised as at 30 September 2023 Group Joint ventures Total West End 56 16 72 City 9 90 99 Other Campuses 9 4 13 Residential1 - - - Campuses 74 110 184 Retail Parks 138 14 152 Shopping Centre 39 41 80 Londo
Slide 59: Income: Potential Future Income
INCOME: Potential Future Income ILLUSTRATIVE POTENTIAL FUTURE INCOME Annualised accounting rent (£’m): 82 23 (17) 42 5 21 598 468 442 +6% 447 +28% Annualised Agreement for Committed Future Committed Committed 1 Reversion, RPI 2 Development 3 Near term 3 Potential Accounting Rent lease rents developm
Slide 60: Balance Sheet: Debt Metrics
BALANCE SHEET: Debt Metrics DEBT METRICS Proportionally Consolidated 30 September 2023 31 March 2023 Loan to value (LTV) 36.9% 36.0% Net Debt to EBITDA 8.0x 8.4x Weighted average interest rate 3.4% 3.5% Interest cover 3.5x 3.4x Weighted average debt maturity 5.7 yrs 5.9 yrs Group 30 September 2023 3
Slide 61: Balance Sheet: LTV
BALANCE SHEET: LTV LOAN TO VALUE (LTV) £m As at Valuation Acquisitions Capital Disposals Meta Operating Dividend Other As at 31 March movement spend Surrender cashflow 30 September 20231 2023 Total properties 8,898 (327) 58 236 (120) - - - (41) 8,704 Other investments 61 - - - - - - - (1) 60 LTV ass
Slide 62: Balance Sheet: ND:EBITDA
BALANCE SHEET: ND:EBITDA NET DEBT TO EBITDA – GROUP 30 September 2023 31 March 2023 £m £m Net Debt Principal amount of gross debt 2,255 2,250 Less: Non-recourse borrowings (297) (298) Less: Cash and cash equivalents1 (124) (99) Plus: Cash attributable to non-recourse companies 24 37 Net Debt for use
Slide 63: Balance Sheet: ND:EBITDA
BALANCE SHEET: ND:EBITDA NET DEBT TO EBITDA – PROPORTIONALLY CONSOLIDATED 6 months to 12 months to 30 September 2023 31 March 2023 £m £m Net Debt Principal amount of gross debt 3,462 3,448 Less: Cash and short term deposits1 (231) (227) Net debt for use in Net Debt to EBITDA proportionally consolida
Slide 64: Balance Sheet: Debt Financing
BALANCE SHEET: Debt Financing DEBT FINANCING – DIVERSE PROFILE £5.1BN GROSS DEBT AND FACILITIES (£3.5BN DRAWN)¹ STRONG CREDIT METRICS 30 SEPTEMBER 2023 – £1.7bn undrawn facilities and cash, £2.1bn total facilities – No requirement to refinance until mid 2026 £0.4bn – Interest rate on our debt 99% he
Slide 65: Balance Sheet: Debt Maturity
BALANCE SHEET: Debt Maturity DEBT MATURITY £m 1200 Facilities Undrawn (Unsecured) Facilities Drawn (Unsecured) 1000 Sterling Bond (Unsecured) US Private Placements (Unsecured) 800 Debentures (Secured) Bank Loans (Secured) JVs Bank Loans (Secured) 600 JVs Securitisation (Secured) 400 200 0 2024 2025
Slide 66: Finance Bridges: Underlying Profit
FINANCE BRIDGES UNDERLYING PROFIT BRIDGE £m 2 4 (4) 9 (7) 142 138 127 HY 2023 Net divestment Developments Excl. impact of capital Provisions Like for like growth Net Finance Costs, HY 2024 1 activity Admin Expenses & Fee income 1 Prior period comparatives have been restated for a change in accountin
Slide 67: Finance Bridges: Underlying Earnings per Share
FINANCE BRIDGES UNDERLYING EARNINGS PER SHARE 0.2p pence 0.4p (0.4)p 1.0p (0.7)p 15.2p 14.7p 13.6p 1 HY 2023 Net divestment Developments Excl. impact of Provisions Like for like growth Fee income HY 2024 capital activity 1 Prior period comparatives have been restated for a change in accounting polic
Slide 68: Finance Bridges: Operating Cash Flow
FINANCE BRIDGES OPERATING CASH FLOW BRIDGE £m 24 (106) 37 (31) (3) 183 104 102 Cash tenant Distributions Fees and other Operating and Net finance costs Corporation Net cash inflow HY24 income from JVs and income admin expenses tax from operating Dividend Funds activities HY24 dividend equates to div
Slide 69: Capital Activity: Purchases
CAPITAL ACTIVITY: Purchases PURCHASES Purchases since 1 April 2023 Sector Price Price Annualised (100%) (BL Share) Net Rents £m £m £m1 Completed Westwood Retail Park, Thanet Retail Park 55 55 4 Total 55 55 4 1 British Land share of annualised rent topped up for rent frees HALF YEAR RESULTS | 30 SEPT
Slide 70: Capital Activity: Sales
CAPITAL ACTIVITY: Sales SALES Sales since 1 April 2023 Sector Price Price Annualised (100%) (BL Share) Net Rent £m £m £m1 Completed Burton Upon Trent, Sainsburys Other Retail 8 8 1 Riverside Retail Park, Coleraine Retail Park 10 10 1 126-134 Baker Street Office 17 17 1 Vodafone Portfolio Office 96 9
Slide 71: Capital Activity: Summary
CAPITAL ACTIVITY: Summary CAPITAL ACTIVITY Since 1 April 2023 Campuses Retail & London Urban Logistics Total £m £m £m Purchases - 55 55 Sales (144) (26) (170) Development Spend 188 3 191 Capital/ Asset management spend 16 25 41 Net Investment 60 57 117 Gross Capital Activity 348 109 457 On a proport
Slide 72: Capital Activity: Since Apr-19
£5.7bn CAPITAL ACTIVITY: Since Apr-19 Gross investment activity CAPITAL ACTIVITY since April 2019 Net Spend1 £m £121m £(964)m £507m £(195)m £117m 1,000 600 200 (200) (600) (1,000) (1,400) FY23 HY24 FY20 FY21 FY22 Sales Capital Investment Purchases Net Spend On a proportionally consolidated basis inc
Slide 73: Sustainability: 2030 Strategy
SUSTAINABILITY OUR 2030 SUSTAINABILITY STRATEGY GREENER SPACES: A NET THRIVING PLACES: ZERO CARBON PORTFOLIO CREATING A LONG-LASTING BY 2030 POSITIVE IMPACT 50% LOWER – £25m Social Impact Fund by 2030 with at least £15m cash contributions embodied carbon intensity at our offices developments to – Im
Slide 74: Sustainability Metrics
SUSTAINABILITY SUSTAINABILITY METRICS DEVELOPMENTS – NET ZERO CARBON OPERATIONAL – EPC RATINGS Embodied carbon intensity of the development pipeline % of total ERV KgCO2e per sqm GIA EPC Rating Offices Retail Portfolio Office developments A 3 4 4 Completed 408 B 50 41 46 Committed1 613 Near term & m
Slide 75: Sustainability Performance
SUSTAINABILITY SUSTAINABILITY PERFORMANCE Global Real Estate Carbon Disclosure Project EPRA Sustainability Sustainability Benchmark1 Science Based Target 2022: B Reporting Awards 2023: 5-star (Development) Approval in 2021 2021: A- 2023: Gold for 12th year 5-star (Standing Investments) Social Mobili
Slide 76: Campus Maps: Broadgate
CAMPUS MAPS: Broadgate BROADGATE CAMPUS HALF YEAR RESULTS | 30 SEPTEMBER 2023 PG.76
Slide 77: Campus Maps: Paddington
CAMPUS MAPS: Paddington PADDINGTON CENTRAL CAMPUS HALF YEAR RESULTS | 30 SEPTEMBER 2023 PG.77
Slide 78: Campus Maps: Regent's Place
CAMPUS MAPS: Regents Place REGENT’S PLACE CAMPUS HALF YEAR RESULTS | 30 SEPTEMBER 2023 PG.78
Slide 79: Campus Maps: Canada Water
CAMPUS MAPS: Canada Water CANADA WATER CAMPUS HALF YEAR RESULTS | 30 SEPTEMBER 2023 PG.79
Slide 80: Disclaimer
DISCLAIMER The information contained in this presentation has been extracted largely from the Half Year Results Announcement for the half year ended 30 September 2023. For the purpose of this document, references to "presentation" shall be deemed to include this document, the oral briefing provided