British Land Company Plc · LSE:BLND
British Land — H1 2025 Earnings Presentation
73 slides from British Land's earnings presentation, Nov 20, 2024
Slide 1: Half Year Results
20 NOVEMBER 2024 HALF YEAR R E S U LT S
Slide 2: Introduction
01 I N T R O D U CT I O N SIMON CARTER Elliott’s Field Retail Park, Rugby HALF YEAR RESULTS | 30 SEPTEMBER 2024 PG.2
Slide 3: Key Takeaways
KEY TAKEAWAYS CONTINUED FINANCIAL & OPERATIONAL STRONGEST RETAIL PARKS DYNAMICS IN A MOMENTUM DECADE Strong leasing 1.7m sq ft, 8% ahead of ERV Numerous retailers expanding out of town Maintained cost discipline 99% occupancy Underlying Profit up 1% ERV +3.7% in the half DEMAND FOR NEW WORKSPAC E SU
Slide 4: £3.7bn of capital activity in the last 4 years
£3.7BN OF CAPITAL ACTIVITY IN THE LAST 4 YEARS PERCENTAG E O F PO RTF O LI O 1 £2.1BN OF MATURE OFFICES & SHOPPING CENTRES SOLD AT 5.0% NIY £1.1BN OF RETAIL PARK ACQUISITIONS Retail parks AT 7.1% NIY (32%) Campuses (58%) DEVELOPMENT JOINT VENTURES London urban (1 TRITON SQUARE AND CANADA WATER) logi
Slide 5: Financial Results
FINANCIAL R E S U LT S BHAVESH MISTRY Teesside Park HALF YEAR RESULTS | 30 SEPTEMBER 2024
Slide 6: Another half of growth and balance sheet resilience
ANOTHER HALF OF GROWTH AND BALANCE SHEET RESILIENCE £143M 15.3p 12.24p Underlying Profit Underlying earnings per share Dividend per share +1% vs Sep 23 +1% vs Sep 23 +1% vs Sep 23 567p 37.8% 7.4x EPRA NTA per share Loan To Value Group Net Debt to EBITDA Pro forma placing, post period end purchases &
Slide 7: Delivering earnings and dividend progression
DELIVERING EARNINGS AND DIVIDEND PROGRESSION Six months to 30 September (£m) H1 2025 H1 2024 Change % Meadowhall disposal and Gross rental income 238 246 (3%) properties moving into development offset by surrender Property operating expenses (20) (15) 33% premium receipts Net rental income 218 231 (
Slide 8: Earnings per share growth
EARNINGS PER SHARE GROWTH 0.4p (1.2p) 0.9p (0.6p) 0.1p 0.5p 15.2p 15.3p +1% Sep-23 Sales & Purchases Developments Surrenders Provisions for Like-for-like Other Sep-24 debtors and TIs growth HALF YEAR RESULTS | 30 SEPTEMBER 2024 PG.8
Slide 9: Positive like-for-like income performance
POSITIVE LIKE-FOR-LIKE INCOME PERFORMANCE +3.8% +2.0% +2.8% Re t a i l & Lo n d o n Ca m p u s e s To t a l p o rt f o l i o U r b a n Lo g i s t i c s Occupancy: Occupancy: Occupancy: 97 %1 99% 98% 1 HALF YEAR RESULTS | 30 SEPTEMBER 2024 1. Occupancy excludes recently completed developments at Nort
Slide 10: EPRA cost ratio remains a key focus
EPRA COST RATIO REMAINS A KEY FOCUS BRITISH LAND EPRA COST RATIO Disciplined management of cost base Despite inflationary environment Growing fee income Through our joint ventures 25.6% 19.5% 16.4% 15.3% Improved NRI margin Supported by strong occupancy FY22 FY23 FY24 HY25 HALF YEAR RESULTS | 30 SEP
Slide 11: EPRA NTA per share up
EPRA NTA PER SHARE UP 15p (11p) 1p 567p 562p Mar-24 Valuation Underlying Dividend Sep-24 Performance Profit TOTA L A C C O U N T I N G R E T U R N 2 . 8 % HALF YEAR RESULTS | 30 SEPTEMBER 2024 PG.11
Slide 12: Resilient balance sheet and liquidity
RESILIENT BALANCE SHEET AND LIQUIDITY EXCELLENT LIQUIDITY Pro forma 30 Sep 31 Mar 30 Sep 2024 2024 − £1.6bn undrawn facilities and cash 20241 − No requirement to refinance until early 2027 Net Debt2 £3.5bn £3.4bn £3.3bn GOOD ACCESS TO DEBT MARKETS Loan to value2 37.8% 38.7% 37.3% − c.£1.4bn financin
Slide 13: Disciplined and decisive capital allocation
DISCIPLINED AND DECISIVE CAPITAL ALLOCATION BALANCE SHEET £456m1 disposal of non-core and mature assets ACQUISITIONS £711m2 of retail parks purchased at 7.0% NEY DEVELOPMENTS Committed to 2 Finsbury Avenue and 1 Triton Square SHAREHOLDER DISTRIBUTIONS Dividends 80% of underlying EPS HALF YEAR RESULT
Slide 14: Acquisition & equity placing to deliver double digit returns
ACQUISITION & EQUITY PLACING TO DELIVER DOUBLE DIGIT RETURNS AND EARNINGS ACCRETION Acquisition returns: 7.2% 3-5% Double digit Topped-up Net ERV Growth ungeared IRR Initial Yield Financial impacts (annualised): EPS1 + 0.4p / 1.6% N TA - 11p / - 1.9% Elliott’s Field, Rugby − Acquired 7 retail parks
Slide 15: Future levers of growth
FUTURE LEVERS OF GROWTH EARNINGS GROWTH CAPITAL APPRECIATION LIKE-FOR-LIKE GROWTH ON ERV GROWTH 3-5% STANDING PORTFOLIO NEW DEVELOPMENT LETTINGS YIELDS STABLE / IMPROVING CAPITAL RECYCLING + DEVELOPMENTS TARGETING LEVERAGING OUR PLATFORM c.20% PROFIT ON COST TA R G E T T O TA L A C C O U N T I N G R
Slide 16: Summary
SUMMARY RESILIENT BALANCE SHEET: EPS GROWTH: STRONG STRONG FUTURE LEVERS DISCIPLINED & DECISIVE LEASING & COST DISCIPLINE FOR GROWTH CAPITAL DEPLOYMENT HALF YEAR RESULTS | 30 SEPTEMBER 2024 PG.16
Slide 17: Occupational & Investment Update
O CC U PAT I O N A L & I N V E ST M E N T U P DAT E K E L LY C L E V E L A N D Norton Folgate HALF YEAR RESULTS | 30 SEPTEMBER 2024
Slide 18: Values marginally up with strong rental growth
VALUES MARGINALLY UP WITH STRONG RENTAL GROWTH YIELD ERV VALUATION £M VALUATION MOVEMENT NEY MOVEMENT MOVEMENT TOTAL 8,867 -2 bps 0.2% 6.1% 2.5% Campuses 5,410 +12 bps -1.7% 5.6% 1.7% Retail & London Urban Logistics 3,457 -19 bps 3.0% 6.7% 3.4% Retail Parks 2,528 -22 bps 5.1% 6.6% 3.7% London Urban
Slide 19: Demand is focussed on the best space
CAMPUSES DEMAND IS FOCUSSED ON THE BEST SPACE CENTRAL LONDON ACTIVE DEMAND 3 14.0 CORE CENTRAL LONDON TAKE UP +8% AHEAD OF 10-YR AVERAGE 1 13.0 12.0 − 70% of this take up was for new and newly 11.0 Sq ft, Millions refurbished space2 10.0 9.0 POSITIVE FORWARD-LOOKING INDICATORS 8.0 7.0 − Strong deman
Slide 20: Vacancy for the best vs rest continues to diverge
CAMPUSES VACANCY FOR THE BEST VS REST CONTINUES TO DIVERGE VACANCY F O R NEW SPACE I N CO RE CENTRAL LO NDO N I S DI VERG I NG M AJO RI TY O F VACANT SPACE I S SECO NDH AND 2 F RO M TH E REST 1 (m sq ft) 14.0% 25 Q3 2024: 10.9% 12.0% 20 10.0% 8.0% 15 6.0% 10 4.0% Q3 2024: 1.7% 5 2.0% 0.0% 0 2014 201
Slide 21: Strong operational momentum across our campuses
CAMPUSES STRONG OPERATIONAL MOMENTUM ACROSS OUR CAMPUSES − 957,000 sq ft of leasing activity1, 8.3% ahead of ERV − Includes 368,000 sq ft of leasing at our best in class developments − 296,000 sq ft under offer, 1.4% ahead of ERV, with a further 1.7m sq ft in negotiations − 77,000 sq ft of Storey le
Slide 22: Excellent progress on EPC upgrades
EXCELLENT PROGRESS ON EPC UPGRADES PERCENTAGE OF THE PORTFOLIO RATED EPC A OR B 1 £19M c.64% spent to date on EPC upgrades of 58% which c.60% has been recovered via service charge 45% GRESB 5* 36% across developments and standing investments – global sector leader score 100/100 on developments FY22
Slide 23: Retail parks continuing to lease ahead of ERV
R E TA I L PA R K S RETAIL PARKS CONTINUING TO LEASE AHEAD OF ERV AND WE ARE FILLING SPACE QUICKLY EXCELLENT LEASING ACTIVITY − 311,000 sq ft of deals, 7.4% ahead of ERV − 427,000 sq ft under offer, 7.3% ahead of ERV RETAILERS EXPANDING & NEW ENTRANTS Waterlooville C A S E S T U DY: C A R P E T R I
Slide 24: Since 2021 we have deployed £1.1bn into retail parks
R E TA I L PA R K S SINCE 2021 WE HAVE DEPLOYED £1.1BN INTO RETAIL PARKS AT ATTRACTIVE YIELDS PA R K S R E P R E S E N T O N E T H I R D O F B L P O R T F O L I O G AV 1 £1.1bn 29% 32% 25% Deployed into retail parks 22% since 2021 20% 15% 7.1% Net Initial Yield FY21 FY22 FY23 FY24 HY25 Pro Forma £44
Slide 25: Occupational fundamentals for urban logistics strongest in central London
LONDON URBAN LOGISTICS OCCUPATIONAL FUNDAMENTALS FOR URBAN LOGISTICS STRONGEST IN CENTRAL LONDON VACANCY REMAINS LOW, PARTICULARLY IN INNER LONDON OUR SCHEMES ARE ALL IN LONDON WITH 4 INSIDE ZONES 1-2 Vacancy1 4.0% 3.5% Enfield 3.0% Wembley Q3 2024: 2.5% 2.5% Paddington Finsbury Square 2.0% 1.5% Man
Slide 26: Summary
SUMMARY CONTINUE TO DEPLOY STRONG OCCUPATIONAL YIELDS STABILISING WITH CAPITAL INTO RETAIL PARKS FUNDAMENTALS IN OUR STRONG ERV GROWTH & BEST-IN-CLASS MARKETS DEVELOPMENTS HALF YEAR RESULTS | 30 SEPTEMBER 2024 PG.26
Slide 27: Strategy & Outlook
04 ST R AT E GY & O U T LO O K SIMON CARTER 2 Finsbury Avenue CGI HALF YEAR RESULTS | 30 SEPTEMBER 2024 PG.27 PG.27
Slide 28: Campuses are in the sweet spot of demand
CAMPUSES CAMPUSES ARE IN THE SWEET SPOT OF DEMAND WHY CUSTOMERS CHOOSE CAMPUSES H I G H R E T E N T I O N & R E N TA L G R O W T H QUALITY PRODUCT H I G H R E T E N T I O N R AT E S Best-in-class design with leading sustainability credentials c.80% across our campuses1 L O C AT I O N R E N TA L G R
Slide 29: Over 5m sq ft shortfall of new supply in the City
CAMPUSES OVER 5M SQ FT SHORTFALL OF NEW SUPPLY IN THE CITY OVER THE NEXT FOUR YEARS m sq ft FORECAST DEMAND VS FORECAST SUPPLY 8.9m sq ft average take up to December 10 OF NEW / SUBSTANTIALLY REFURBISHED SPACE IN THE CITY 20281 9 8 0.8m sq ft of vacant new space today2 7 5.2m sq ft 6 shortfall 3 5 2
Slide 30: Strong rental growth on campus developments
CAMPUSES WHICH IS DRIVING STRONG RENTAL GROWTH ON OUR CAMPUS DEVELOPMENTS Rents 170 LIMITED SUPPLY DRIVING RENTS FOR NEW DEVELOPMENTS (£psf) 160 150 First pre-let at 2 Finsbury Avenue 140 £97 psf First pre-let at 130 1 Broadgate £75 psf c.8% p.a. 120 First pre-let at Cushman & Wakefield forecast 100
Slide 31: Delivering 1.8m sq ft into a supply constrained market
CAMPUSES DELIVERING 1.8M SQ FT INTO A SUPPLY CONSTRAINED MARKET 3 Sheldon Square Norton Folgate The Optic, Cambridge Completed Q1 2024 Fitted space completed Completing Q1 2025 July 2024 93% let / under offer 51% let / under offer 100% under offer 1 Broadgate 2 Finsbury Avenue Priestley Centre Compl
Slide 32: Canada Water: good progress on Phase 1
CAMPUSES CANADA WATER: GOOD PROGRESS ON PHASE 1 − Placemaking: new dock and public boardwalk designed by Asif Khan opened in November − Retail: 2 retail units under offer; a new 50,000 sq ft cultural hub with workspaces, live music, restaurants and bars opening in spring 2025 − Residential: 44 homes
Slide 33: Canada Water: flexibility to build more residential
CAMPUSES CANADA WATER: FLEXIBILITY WITHIN THE MASTERPLAN TO BUILD MORE RESIDENTIAL (m sq ft) 4 NEXT PHASES LIKELY TO INCLUDE MORE RESIDENTIAL 3.5 − Development economics shifting 3 +2,000 in favour of residential 2.5 homes − To include build to sell, student 2 accommodation and build to rent 1.5 − L
Slide 34: London is Europe's leading city for AI investment
CAMPUSES LONDON IS EUROPE’S LEADING CITY FOR AI INVESTMENT AI VC FUNDING: 2020 TO PRESENT ($BN) 1 KNOWLEDGE QUARTER IS AT THE London CENTRE OF ACTIVITY Paris Munich − UCL & Imperial’s research drives London’s Amsterdam status as Europe’s leading AI location Oxford O VERALL AI I NDEX F O R 2020- PRES
Slide 35: Progressing our science and technology pipeline
CAMPUSES PROGRESSING OUR SCIENCE AND TECHNOLOGY PIPELINE ON SITE ON SITE MEDIUM TERM PIPELINE LONDON: REGENT’S PLACE CAMBRIDGE: THE OPTIC OXFORD: BOTLEY ROAD Committed to 1 Triton Square Targeting completion: Q1 2025 Planning submitted in October Fitting out 30,000 sq ft of labs at Under offer on th
Slide 36: Retailers are expanding onto retail parks
R E TA I L PA R K S RETAILERS ARE EXPANDING ONTO RETAIL PARKS W H Y R E TA I L E R S P R E F E R PA R K S R E TA I L E R S E X PA N D I N G O N PA R K S AFFORDABILITY Low occupancy cost ratio: 8.9%1 ACCESSIBILITY Highly efficient way for consumers to shop A D A P TA B I L I T Y Quick, easy & cost ef
Slide 37: Supply of retail parks is restricted
R E TA I L PA R K S SUPPLY OF RETAIL PARKS IS RESTRICTED <5 % RESTRICTED SUPPLY DUE TO OF RETAIL PARK SUPPLY ADDED PLANNING IN LAST 10 YEARS RETAIL PARKS ONLY 8% VALUES < REPLACEMENT COST OF TOTAL 1.5BN SQ FT UK RETAIL MARKET HALF YEAR RESULTS | 30 SEPTEMBER 2024 PG.37
Slide 38: Attractive forward-looking returns
R E TA I L PA R K S ATTRACTIVE FORWARD-LOOKING RETURNS STRONG OCCUPATIONAL FUNDAMENTALS 6-7% Net Equivalent Yield AT T R A C T I V E Y I E L D S OF 6-7% 3-5% ERV growth LIMITED CAPEX REQUIREMENTS LIQUIDITY Double digit Ungeared IRRs R E TA I L PA R K S H AV E B E E N B E S T P E R F O R M I N G S U
Slide 39: Mandela Way: ultra-urban logistics facility
LONDON URBAN LOGISTICS MANDELA WAY: AN ULTRA-URBAN LOGISTICS FACILITY DELIVERING INTO A SUPPLY CONSTRAINED MARKET A FIRST OF ITS KIND MULTI-STOREY LOGISTICS FACILITY − 1.8 acre site in Southwark in London’s Zone 2 − Topping out later this month; delivering in Q3 2025 − 4 floors, serviced by 5 goods
Slide 40: Outlook
OUTLOOK GEOPOLITICAL UNCERTAINTY REMAINS MACROECONOMIC BACKDROP GENERALLY SUPPORTIVE − Base rates declining, albeit more slowly than expected earlier in the year − Unemployment remains low − Real wages growing modestly POSITIVE OCCUPATIONAL OUTLOOK REMAINS − Forecasting 3-5% rental growth across the
Slide 41: Priorities
PRIORITIES CAMPUSES − Recycle out of mature assets − Progress super prime developments including bringing in partners − Increase science and tech weighting R E TA I L PA R K S − Grow the business, investing at attractive yields below replacement cost LONDON URBAN LOGISTICS − Build out last mile logi
Slide 42: Attractive future return profile
ATTRACTIVE FUTURE RETURN PROFILE VALUE-ADD APPROACH 6.1% PORTFOLIO YIELD 3-5% RENTAL GROWTH DEVELOPMENT UPSIDE TA R G E T I N G TA R O F 8 - 1 0 % T H R O U G H T H E C YC L E HALF YEAR RESULTS | 30 SEPTEMBER 2024 PG.42
Slide 43: Appendices
APPENDICES § British Land
Slide 44: Portfolio: Yields
PORTFOLIO: Yields PORTFOLIO NET YIELDS 1,2 As at 30 September 2024 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 3 4 yield yield yield vs Mar-24 5 6 % % % % Bps % % West End 4.2 4.5 4.5 5
Slide 45: Portfolio: Annual Rent & ERV
PORTFOLIO: Annual Rent & ERV VALUATION BASIS: ANNUALISED RENT & ESTIMATED RENTAL VALUE (ERV) As at 30 September 2024 Annualised rents on a valuation basis ERV Average rent £m1 £m (£psf) Group Joint ventures Total Total Contracted2 ERV West End3 67 15 82 111 71.6 81.9 City3 12 77 89 144 61.6 67.5 Oth
Slide 46: Income: Annualised Accounting
INCOME: Annualised Accounting ACCOUNTING BASIS: ANNUALISED GROSS RENTAL INCOME Accounting Basis £m Annualised as at 30 September 2024 Group Joint ventures Total West End 61 18 79 City 20 78 98 Other Campuses 8 4 12 Campuses 89 100 189 Retail Parks 162 13 175 Shopping Centre 36 9 45 London Urban Logi
Slide 47: Income: Potential Future Income
INCOME: Potential Future Income ILLUSTRATIVE POTENTIAL FUTURE INCOME Annualised accounting rent (£’m): (12) 22 36 71 28 579 5 +8% 462 +25% 429 1 Annualised Agreement for Committed Future committed Committed Reversion, RPI 2 Development 3 Near term 3 Potential Accounting Rent lease rents developments
Slide 48: Guidance
FY2025 GUIDANCE GUIDANCE £’m PREVIOUS FY2025 NEW FY2025 CHANGES TO PREVIOUS GUIDANCE GUIDANCE GUIDANCE (May 2024) (Nov 2024) Reduction to gross rental income post Meadowhall sale Gross Rental Income 480 – 490 485 – 495 and timing of retail park reinvestment. Offset by post period end retail park por
Slide 49: Portfolio: Valuation
PORTFOLIO: Valuation PORTFOLIO VALUATION BY SECTOR As at 30 September 2024 Group Joint ventures Total1 % Change2 £m £m £m % £m West End 1,562 503 2,065 (1.5) (32) City 463 2,149 2,612 (1.7) (45) Canada Water & other Campuses 206 368 574 (3.0) (18) Residential3 159 - 159 0.1 - Campuses 2,390 3,020 5,
Slide 50: Portfolio: Weighting
PORTFOLIO: Weighting PORTFOLIO WEIGHTING As at 30 September 2024 2024 2024 2023 % £m % West End 23.3 2,065 26.7 City 29.5 2,612 28.3 Canada Water & other Campuses 6.4 574 5.5 Residential1 1.8 159 1.3 Campuses 61.0 5,410 61.8 Of which London 97 5,228 97 Retail Parks 28.5 2,528 23.7 Shopping Centre 4.
Slide 51: Portfolio: Occupancy
PORTFOLIO: Occupancy LEASE LENGTH AND OCCUPANCY As at 30 September 2024 Average Lease Length (yrs) Occupancy Rate (%) To Expiry To Break EPRA Occupancy Occupancy1,2,3 West End 5.7 5.0 86.7 96.7 City 8.3 6.8 76.4 98.2 Other Campuses 11.0 7.7 77.9 86.2 Campuses 7.3 6.1 78.2 97.1 Retail Parks 6.1 4.7 9
Slide 52: Portfolio: Occupancy
PORTFOLIO: Occupancy VACANCY IN OUR PORTFOLIO IS IN THE NEW & REFURBISHED SPACE 2.4% 1.6% 5.6% 0.2% 0.9% 98.0% 87.3% EPRA Occupancy Under offers at Sep-24 AMIs Priestley Centre Aldgate Place Norton Folgate Underlying Occupancy Of which: • Broadgate Tower 1.9% • 20 Triton Street 1.3% HALF YEAR RESULT
Slide 53: Portfolio: Top Occupiers
PORTFOLIO: Top 20 Occupiers TOP 20 OCCUPIERS RETAIL & LONDON URBAN LOGISTICS CAMPUSES OCCUPIER SPLIT BY INDUSTRY (% OF RENT) As at % of Retail & Urban As at % of Campus rent 30 September 2024 Logistics rent 30 September 2024 Next 5.2 Meta 12.9 Media & Other, 7% Walgreens (Boots) 4.4 dentsu 5.1 Commu
Slide 54: Portfolio: Occupancy Cost Ratios
PORTFOLIO: Occupancy Cost Ratios BRITISH LAND OCCUPANCY COST RATIO 1 19.2% 35% Reduction 17.7% 50% Reduction 2.0% 0.9% 16.4% 2.1% 14.7% 5.5% 5.5% 12.5% 2.1% 12.4% 0.7% 4.5% 1.7% 9.8% 3.8% 8.9% 4.4% 0.6% 3.0% 0.6% 3.2% 2.6% 11.3% 11.7% 9.8% 8.0% 8.2% 7.7% 6.0% 5.7% 2016 2019 2022 2023 2016 2019 2022
Slide 55: Developments: Committed
DEVELOPMENTS: Committed COMPLETED & COMMITTED DEVELOPMENTS As at Sector BL Sq ft PC Calendar Current Cost to ERV Let & Gross Yield 30 September 2024 Share (100%) Year Value Come Under Offer on Cost COMPLETED % ‘000 £m £m1 £m2 £m4 %5 Norton Folgate Office 100 335 Q3 2024 374 21 26.1 13.4 5.5 Aldgate
Slide 56: 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 2024 Site % ‘000 Calendar year £m £m1 £m2 Near Term Pipeline Verney Road, Southwark London Urban Logistics 100 202 Q3 2025 29 83 7.7
Slide 57: Developments: Medium Term
DEVELOPMENTS: Medium Term MEDIUM TERM DEVELOPMENT PIPELINE As at 30 September 2024 Sector BL Sq ft Planning status Share (100%) % ‘000 Medium Term Pipeline Broadgate Tower Office 50 396 Consented West One Development Office 25 93 Consented 5 Kingdom Street Office 100 214 Consented Euston Tower Offic
Slide 58: Developments: Future Spend
DEVELOPMENTS: Future Spend ESTIMATED FUTURE DEVELOPMENT SPEND AND CAPITALISED INTEREST As at 30 September 2024 PC calendar Cost to Come £m year (excluding notional interest) – 6 months breakdown Mar-25 Sep-25 Mar-26 Sep-26 Mar-27 Sep-27 Mar-28 Sep-28 Total The Optic Q1 2025 11 - - - - - - - 11 1 Bro
Slide 59: Developments: Supply Pipeline
DEVELOPMENTS: Supply Pipeline SHORTFALL OF NEW SUPPLY IN THE CITY FORECAST PRIME OFFICE SUPPLY/DEMAND IN THE CITY 1 m sq ft 3 Millions 2 Finsbury Avenue = only 1 Broadgate committed building being delivered in 2027 (>100k sq ft) 2.1m sq ft2 2 Norton Folgate 1 Appold Street 1 0 2024 2025 2026 2027 20
Slide 60: Balance Sheet: Debt Metrics
BALANCE SHEET: Debt Metrics DEBT METRICS Proportionally Consolidated 30 September 2024 31 March 2024 Loan to value (LTV) 38.7% 37.3% Net Debt to EBITDA 1 8.9x 8.5x Weighted average interest rate 3.5% 3.4% Interest cover 4.0x 3.5x Weighted average debt maturity 5.2 yrs 5.8 yrs Group 30 September 2024
Slide 61: Balance Sheet: Debt Financing
BALANCE SHEET: Debt Financing DEBT FINANCING – DIVERSE PROFILE £5.3BN GROSS DEBT AND FACILITIES (£3.7BN DRAWN) 30 SEPTEMBER 2024¹ ,2 STRONG CREDIT METRICS – £1.6bn undrawn facilities and cash £0.4bn – No requirement to refinance until early 2027 £0.6bn £1.6bn – Debt 97% hedged to March 2025, 78% on
Slide 62: Balance Sheet: Debt Maturity
BALANCE SHEET: Debt Maturity DEBT MATURITY £m 2000 Facilities Undrawn (Unsecured) 1800 Facilities Drawn (Unsecured) Term Loans (Unsecured) 1600 US Private Placements (Unsecured) 1400 Sterling Bond (Unsecured) 1200 Debentures (Secured) JVs Bank Loans (Secured) 1000 JVs Securitisation (Secured) 800 60
Slide 63: Loan to Value
LOAN TO VALUE 0.6% (0.9)% 1.7% (2.8)% 1.9% 38.1% 38.7% 37.3% 37.8% 34.5% Mar-24 Disposals Acquistions Development Other Sep-24 Post period end Sep-24 Pro Forma spend acquistions, placing & disposals 1 HALF YEAR RESULTS | 30 SEPTEMBER 2024 1. Pro forma for £441m retail park portfolio acquisition fund
Slide 64: Operating Cashflow Bridge
OPERATING CASHFLOW BRIDGE OPERATING CASH FLOW BRIDGE £m 31 (131) 38 (25) (5) 204 112 101 1 Cash tenant Distributions Fees and other Operating and Net finance costs Corporation Net cash inflow HY25 Dividend income from JVs income admin expenses tax from operating activities HALF YEAR RESULTS | 30 SEP
Slide 65: Capital Activity: Since Apr-19
£6.0bn CAPITAL ACTIVITY: Since Apr-19 Gross investment activity CAPITAL ACTIVITY since April 2020 Net Spend1 £m £(964)m £507m £(233)m £49m £89m 1,000 600 200 (200) (600) (1,000) (1,400) FY24 HY25 FY21 FY22 FY23 Sales Capital Investment Purchases Net Spend On a proportionally consolidated basis inclu
Slide 66: Sustainability
SUSTAINABILITY OUR 2030 SUSTAINABILITY STRATEGY GREENER SPACES: DECARBONSING OUR PORTFOLIO 50 % LOWER embodied carbon intensity THRIVING PLACES: at our offices developments to below CREATING A LONG-LASTING 500kg CO2e per s q m by 2030 POSITIVE IMPACT 75% REDUCTION in operational carbon intensity acr
Slide 67: Sustainability
SUSTAINABILITY HY25 SUSTAINABILITY PROGRESS 617kg CO2e per sqm 37% embodied carbon intensity of current reduction in operational carbon office developments intensity vs. 2019 baseline GRESB 5* c.64% for Standing Investments and of EPCs rated A/B by ERV Development HALF YEAR RESULTS | 30 SEPTEMBER 20
Slide 68: Sustainability
SUSTAINABILITY SUSTAINABILITY PERFORMANCE Global Real Estate EPRA Sustainability Sustainability Benchmark1 CDP Science Based Target Reporting Awards 2024: 5-star (Development) 2023: A- Approval in 2021 2024: Gold for 13th year 5-star (Standing Investments) MSCI ESG Ratings2 Social Mobility Index FTS
Slide 69: Campus Maps: Broadgate
CAMPUS MAPS: Broadgate BROADGATE CAMPUS HALF YEAR RESULTS | 30 SEPTEMBER 2024 PG.69
Slide 70: Campus Maps: Paddington
CAMPUS MAPS: Paddington PADDINGTON CENTRAL CAMPUS HALF YEAR RESULTS | 30 SEPTEMBER 2024 PG.70
Slide 71: Campus Maps: Regents Place
CAMPUS MAPS: Regents Place REGENT’S PLACE CAMPUS HALF YEAR RESULTS | 30 SEPTEMBER 2024 PG.71
Slide 72: Campus Maps: Canada Water
CAMPUS MAPS: Canada Water CANADA WATER CAMPUS HALF YEAR RESULTS | 30 SEPTEMBER 2024 PG.72
Slide 73: 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 2024. For the purpose of this document, references to "presentation" shall be deemed to include this document, the oral briefing provided