Derwent London Plc · LSE:DLN
Derwent London — FY2010 Earnings Presentation
83 slides from Derwent London's earnings presentation, 2011
Slide 1: Derwent London plc Results 2010
Derwent London plc Results 2010
Slide 2: Contents
Contents Page Highlights3 Results and financial review 5 Valuation and portfolio analysis 17 Portfolio activity 26 Market summary 34 Projects 38 Outlook 58 Appendices 60 Disclaimer 83 Presentation: John Burns, Damian Wisniewski, Simon Silver, Paul Williams, Nigel George, David Silverman 2
Slide 3: Highlights
Highlights DERWENDON John Burns
Slide 4: Highlights
Highlights »» Strong NAV growth and shareholder return »» Rental growth »» Substantial reversion »» 100 lettings »» Further significant dividend growth »» New acquisitions »» Strong project pipeline 4
Slide 5: Results and financial review
Results and financial review Damian Wisniewski 5
Slide 6: Headline numbers
Headline numbers Dec 2010 Dec 2009 % change Total portfolio at fair value £2,426.1m £1,918.4m 26.5 EPRA net asset value per share1 1,474p 1,161p 27.0 Gross property income £119.4m £123.8m (3.6) EPRA profit before tax2 £55.3m £61.8m (10.5) Underlying profit before tax2, 3 £53.8m £55.4m (2.9) EPRA ear
Slide 7: Group balance sheet
Group balance sheet Dec 2010 Dec 2009 £m £m Investment property 2,388.5 1,888.6 Other non-current assets 56.4 47.5 2,444.9 1,936.1 Trading properties - 1.0 Other current assets and liabilities (26.0) (16.8)1 Cash and cash equivalents 7.2 19.0 Bank overdraft (5.6) (5.9) Corporation tax liability (3.3
Slide 8: Group balance sheet
Group balance sheet »» Net assets up by 28.5% >> to £1.45bn from £1.13bn »» Net debt increased >> to £888m from £721m Debt, net assets and gearing >> £197.5m invested in the portfolio 2,000 100 Net debt Net assets Balance sheet gearing LTV ratio »» LTV and balance sheet gearing ratios >> reduced fro
Slide 9: Group income statement
Group income statement Year ended Year ended Dec 2010 Dec 2009 £m £m Gross property income 119.4 123.8 Other income 1.7 1.5 Property outgoings (8.1) (10.5) Net property income 113.0 114.8 Total administrative expenses (20.8) (19.1) Revaluation surplus/(deficit) 301.6 (81.1) Profit/(loss) on disposal
Slide 10: Underlying profit before tax
Underlying profit before tax Underlying profit before tax1 130 1.7 120 119.4 (9.8) 110 (20.9) 100 90 (37.7) 80 70 £m 60 1.7 0.1 1.1 (0.2) 50 53.8 55.3 55.4 40 30 20 10 0 Gross Other Property Admin Net Joint Underlying Forex on Rates EPRA Cash Recurring property income expenditure expenses finance ve
Slide 11: Group income statement
Group income statement »» Gross property income in 2010 reduced by £4.4m compared to 2009 2010 >> Property disposals of £201.8m in 2009 £m >> Voids included Angel Building (£1.0m) Property acquisitions 3.4 and Victory House (£0.9m) Property disposals (10.8) Voids (5.1) >> Lettings and reviews includ
Slide 12: Group income statement
Group income statement »» Share of results of joint ventures >> Includes £0.9m revaluation surplus (2009: £1.3m deficit) »» Fair value movement of derivatives >> A loss of £2.4m in 2010 against a gain of £3.9m in 2009 »» Changed treatment of loan arrangement costs and amortisation >> Refer to Append
Slide 13: Cashflow
Cashflow Cashflow summary 400 2010 2009 300 200 100 £m 0 Cash Proceeds Property Property Admin Net Taxation Other Dividends Movement (Increase)/ received from expenses additions expenses interest paid in bank decrease from tenants disposals paid debt in cash (100) (200) (300) 2010 117.1 8.5 (9.8) (1
Slide 14: Cashflow
Cashflow »» Increase in net debt >> To £887.8m from £720.8m »» Net cashflow movement in investment property portfolio 2010 2009 £m £m Acquisitions (148.0) (10.2) Capex (49.5) (94.6) (197.5) (104.8) Disposal proceeds 8.5 195.5 (189.0) 90.7 »» Forecast capital expenditure >> c.£60m in 2011 and c.£125m
Slide 15: Debt facilities, covenants and gearing
Debt facilities, covenants and gearing Dec 2010 Dec 2009 Gearing LTV ratio 35.7% 36.4% Balance sheet 59.4% 61.9% Interest cover ratio 328% 330% Total facilities £1,135m £1,145m Unutilised committed facilities £261m £429m Unutilised facilities drawable £245m £357m Uncharged properties £484m £338m Mat
Slide 16: Liability risk management
Liability risk management Proforma to include new Dec 2010 £70m swap Proportion of drawn facilities at fixed rates or hedged 70% 78% Weighted average length of swaps 6.1 years 6.2 years Spot weighted average cost of drawn facilities - total debt 4.34% 4.54% - bank loans 3.90% 4.05% Hedging profile1
Slide 17: Valuation and portfolio analysis
Valuation and portfolio analysis Nigel George 17
Slide 18: Valuation
Valuation »» Strong recovery in capital values >> 15.7% in 2010 >> 27% over last 18 months »» Development properties valued at £124.9m >> 22.8% in 2010 »» Average capital values low H1 H2 Full year >> Portfolio £450 psf Portfolio valuation valuation valuation valuation movement movement movement >>
Slide 19: Valuation movement (%)
Valuation »» Central London outperforms the wider property market in 2010 »» Valuation growth attributable to: >> Yield movement 60% >> Improvement in rental values 29% >> Asset management 11% Valuation performance 20 »» Total property return 15 15.7 16.6 >> 21.3% in 2010 Valuation movement (%) 10 8
Slide 20: Yields and income
Yields and income »» EPRA yields1 >> Net initial 4.7% >> 'Topped-up' net initial 5.3% »» Portfolio true equivalent yield 5.77% >> Tightened by 67 bp in 2010 »» Strong reversionary element at £31.1m >> £15.4m via contracted uplifts Rental Rental uplift per annum £m £m Contracted rental income, net of
Slide 21: Rental value growth
Rental value »» Return to rental growth in 2010 >> Underlying 5.4% (2009: -14.0%) >> Central London 5.8% (2009: -14.3%) >> West End 6.0% (2009: -14.8%] Rental value growth »» IPD Central London Offices1 6.0% 10 8 8.1 6 »» Low average office rents Rental value growth (%) 4 4.6 >> West End £26.98 psf
Slide 22: Vacancy rates
Vacancy rates »» Vacancy rate1 by rental value 5.9% >> Increased from 3.6% at December 2009 >> Majority of increase was due to Angel completion »» Vacancy rate1 by floor area 4.9% >> Lower than CBRE rate Vacancy rates 8 >> Central London 5.5% 7 >> West End 5.2% 6 Vacancy rate (%) 5 4 3 2 DL (by rent
Slide 23: Lease expiries and breaks
Lease expiries and breaks »» High tenant retention >> 3 year average of 70% »» 2010 expiries/breaks >> Exposure of £13.91m pa equating to 12% of rental income >> £2.4m pa related to identified projects Lease expiry and break analysis >> Of £11.5m pa remaining: 100 16 16 11 >> 72% retained, 17% re-le
Slide 24: Possession timeline of project floor area
Possession timeline of project floor area »» Existing portfolio 5.4m sq ft »» 51% of floor area identified for projects >> 2.8m sq ft Possession timeline of project floor area »» 34% becomes available within 7,000 five years 49% 34% 17% 100% 6,000 >> 1.8m sq ft 5,000 933 Area sq ft (’000) 83 4,000 4
Slide 25: Planning potential
Planning potential »» What can the 2.8m sq ft be turned into? >> Potential for 4.3m sq ft >> c.30% increase on existing portfolio of 5.4m sq ft »» 1.8m sq ft available over next five years Planning potential 1,600 >> Potential for 3.1m sq ft Existing Potential 277 2 >> 23% increase on existing portf
Slide 26: Portfolio activity
Portfolio activity John Burns 26
Slide 27: Lettings
Lettings »» 100 lettings, totalling 347,000 sq ft at £8.0m pa >> Previous income of £3.6m pa at December 2009 >> £6.1m pa of open-market lettings >> £1.9m pa of short-term lettings at our future development properties »» Consistent activity throughout the year >> 47 (£3.5m) in first half, 53 (£4.5m)
Slide 28: Activity 2010
Activity 2010 Charlotte Building W1 3 lettings at £1.2m pa Rents from £44 to £47.50 psf Tea Building E1 Area 27,300 sq ft 1-5 Grosvenor Place SW1 7 lettings at £0.6m pa 9 lettings at £1.2m pa Average rent £23 psf Average rent £42 psf New tone set at £26.50 psf Area 29,000 sq ft Area 26,000 sq ft Gre
Slide 29: Activity 2011
Activity 2011 Pre-let Asset management 33 George Street W1 Woodbridge House EC1 Tenant - Pandora Jewellery Vacant possession obtained Headlease regear Rent £0.7m pa - £58 psf Income of £2.45m pa maintained Morelands Buildings EC1 Area 13,000 sq ft Scheme for 2011 New 125 year lease Premium paid £5.8
Slide 30: 1 Page Street SW1 Activity 2011
1 Page Street SW1 Activity 2011 »» Acquisition March 2011 >> Opportunity for major refurbishment >> Located opposite Horseferry House >> 118,000 sq ft - vacant building >> £45m before costs >> Capital value £380 psf »» Scheme >> Remodelling office entrance >> Generous office space >> Over 2.8m floor
Slide 31: 1 Page Street SW1 Activity 2011
1 Page Street SW1 Activity 2011 »» Timing >> Immediate commencement >> Delivery Q2 2012 »» Rental value >> c.£47.50 psf >> c.£4.9m pa »» Valuation >> Yield 5.0% - 5.25% »» Surplus £11m - £15m >> 15% - 20% profit on cost >> Ungeared IRR range 10% - 12% 31
Slide 32: Network Building W1 Activity 2011
Network Building1 W1 Activity 2011 Ownership Network Building »» A core acquisition for our Fitzrovia Estate EUST ET ON R OAD TRE ER S »» £31m before costs for headlease WAR REN STRE WARREN ET STREET SOV T REE BOL »» 64,000 sq ft corner building fronting Tottenham Court Road D ST >> 56,000 sq ft off
Slide 33: Network Building W1 Activity 2011
Network Building1 W1 Activity 2011 »» Major future regeneration opportunity >> Low site coverage >> Drive floor area and rents Network Building Qube Floor area 64,000 sq ft 110,000 sq ft Site area 0.5 acres 0.6 acres Office rents c.£40 psf £50-60 psf Retail rents £114 ZA £150 ZA 1 95 Tottenham Court
Slide 34: Market summary
Market summary PERWENDON John Burns
Slide 35: West End demand
West End demand Central London - office lease expiries 4.5 West End City 4.0 3.5 Floorspace (million sq ft) 3.0 2.5 2.0 1.5 1.0 0.5 0.0 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 Source: Drivers Jonas Deloitte Market 2010 Derwent London Market outlook Annual take-up of 4.7m sq ft Good letting
Slide 36: West End supply
West End supply West End development pipeline 2.5 12.5 Under construction or proposed Completed Vacancy rate 2.0 10 Floor area (million sq ft) Vacancy rate (%) 1.5 7.5 1.0 5 0.5 2.5 0.0 0 1985 1987 1989 1991 1993 1995 1997 1999 2001 2003 2005 2007 2009 2011 2013 Source: CB Richard Ellis Market 2010
Slide 37: Central London investment
Central London investment Central London investment transactions 18 Value of investment transactions (£bn) Overseas investors 16 UK investors Unknown 14 12 Importance of overseas investors 10 8 6 4 2 39% 36% 53% 35% 58% 43% 56% 55% 72% 67% 0 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 Source:
Slide 38: Projects
DERWENT LONDON Simon Silver
Slide 39: Key points
Key points »» Angel Building completed >> 263,000 sq ft development »» Current programme >> 79,000 sq ft on site >> 412,000 sq ft projects planned to commence 2011 »» Planning consents obtained in 2010 >> Hampstead Road NW1 - 265,000 sq ft >> Commercial Road E1 - 122,000 sq ft »» Important planning
Slide 40: Project summary 2011 - 2012
Project summary 2011 - 2012 Existing Proposed 2011 2012 2013+ Total area area capex1 capex1 capex1,2 capex1 '000 sq ft '000 sq ft £m £m £m £m On-site Victory House W1 48 48 7.8 - - 7.8 33 George Street W1 13 13 0.6 0.1 - 0.7 Tea Building E1 11 11 0.5 - - 0.5 Holden House W1 7 7 0.2 - - 0.2 79 79 9.1
Slide 41: Project summary 2013+
Project summary 2013+ Existing Proposed Vacant area area possession '000 sq ft '000 sq ft year Comment 2013 onwards City Road Estate EC1 124 285 2012 Planning application submitted 80 Charlotte Street W1 200 336 2013 Planning application submitted Balmoral Grove Buildings N1 49 163 2013 Appraisal st
Slide 42: Projects 2011
Projects 2011 Victory House W1 2-14 Pentonville Road N1 30,000 sq ft offices 55,000 sq ft offices 12,000 sq ft residential Delivery Q4 2012 6,000 sq ft retail Rental value c.£35 psf Delivery Q3 2011 Capex c.£11m1 Rental value £40+ psf Capex c.£8m1,2 1 Excluding finance 2 Costs to complete 42
Slide 43: Woodbridge House EC1 Projects 2011
Woodbridge House EC1 Projects 2011 »» Vacant possession obtained >> Income of £2.45m pa continues until March 2015 »» Opportunity to remodel this Clerkenwell building >> 85,000 sq ft - 13% area increase >> Infill atrium >> Relocate office entrance »» Timing >> Delivery Q3 2012 »» Rental value >> c.£
Slide 44: Woodbridge House EC1
Woodbridge House EC1 Additional office space through atrium infill Generous floor to ceiling heights New office Remodelled ground entrance floor fascia 44
Slide 45: Central Cross W1 Projects 2011
Central Cross W1 Projects 2011 »» £146m acquisition in August 2010 >> Our vision taking shape »» Phase 1 - create new 'streetscape' for Stephen Street and Gresse Street >> 140m new frontage >> 23,000 sq ft of ground floor offices >> Double height spaces »» Phase 2 - office refurbishment >> Up to 41,
Slide 46: Central Cross W1
Central Cross W1 »» Phase 3 - retail extension proposals >> Existing 24,000 sq ft >> Proposed 35,000 - 40,000 sq ft »» Vacant possession 2014 >> Possibly earlier 46
Slide 47: Hampstead Road NW1 Projects 2012 - 2013
Hampstead Road NW1 Projects 2012 - 2013 »» Planning consent obtained for 233,000 sq ft offices and 32,000 sq ft residential »» Adjacent to Euston Station - regeneration area >> Clarity required on the impact of the recent HS2 rail proposals before scheme finalised »» Potential timing >> Delivery Q4
Slide 48: Projects 2012 - 2013
Projects 2012 - 2013 »» Turnmill and Chancery Lane planned for 2012 >> 170,000 sq ft »» Capex 40 Chancery Lane WC2 >> c.£67m1 100,000 sq ft Planning permission granted Delivery 2014 Turnmill EC1 70,000 sq ft Planning application submitted Delivery 2014 1 Excluding finance 48
Slide 49: 80 Charlotte Street W1 Projects 2012 - 2013
80 Charlotte Street W1 Projects 2012 - 2013 »» Major holding on our Fitzrovia Estate >> Core West End location >> 1.4 acre island site »» Planning application submitted >> 320,000 sq ft offices >> 16,000 sq ft residential »» Existing leases expire 2013 - Saatchi & Saatchi >> Current income £4.3m pa
Slide 50: City Road Estate EC1 Projects 2012 - 2013
City Road Estate EC1 Projects 2012 - 2013 »» Government promoting the area as a technology hub for companies >> 'Silicon roundabout' »» Existing buildings >> 124,000 sq ft >> Current income £1.4m pa »» Planning decision awaited >> New tall building - 220,000 sq ft >> Low rise buildings - 65,000 sq f
Slide 51: Riverwalk House SW1 Projects 2012 - 2013
Riverwalk House SW1 Projects 2012 - 2013 »» Existing building 75,000 sq ft >> Vacant possession April 2011 - income £2.3m pa »» Plans for a landmark residential scheme >> Prime riverside location »» Potential for 135,000 sq ft >> c.130 units >> 7,000 sq ft retail/gallery »» Planning anticipated end
Slide 52: Projects 2014 onwards
Projects 2014 onwards North Wharf Road W2 Existing buildings c.80,000 sq ft Current income £0.8m pa Leasehold - 2096 Planning permission granted for 240,000 sq ft offices, 1-5 Grosvenor Place SW1 70,000 sq ft residential, 3,000 sq ft retail 1.5 acre site Existing buildings 168,000 sq ft Current inco
Slide 53: 19-35 Baker Street W1 Projects 2014 onwards
19-35 Baker Street W1 Projects 2014 onwards »» Two acre core West End holding »» Portman joint venture >> A 55% interest >> Headlease expires 2090 »» Opportunity to extend and infill >> Existing buildings 146,000 sq ft >> Potential c.300,000 sq ft »» Timing >> Vacant possession 2018 53
Slide 54: Crossrail
Crossrail Connecting London ... »» 10% increase in London's rail network >> 74 miles of new track »» Additional 1.5m people within a 45 minute commute of central London »» Regeneration of key locations »» Completion c.2017 Brentwood Hayes Bond Street Farringdon Whitechapel West End Maidenhead Paddin
Slide 55: Crossrail
Crossrail Central Cross 251,000 sq ft Connecting Derwent London... Turnmill 70,000 sq ft »» 1.1m sq ft of schemes North Wharf Road 313,000 sq ft 1 Oxford Street Woodbridge House 277,000 sq ft 85,000 sq ft Commercial Road 122,000 sq ft Brentwood Hayes Bond Street Farringdon Whitechapel West End Maide
Slide 56: 1 Oxford Street W1
1 Oxford Street W1 »» Derwent has the option to acquire the site upon completion of Crossrail works - c.2017 »» In the interim we are masterplanning the design and content >> Planning submission anticipated mid 2011 »» Proposed new development >> c.277,000 sq ft >> Office, retail and theatre »» Tran
Slide 57: Project summary
Project summary »» Over 50% of our portfolio earmarked for schemes »» Delivering to an improving market »» Plans to undertake 0.9m sq ft of projects over the next two years »» Progressing a number of important planning applications and appraisal studies 57
Slide 58: Outlook
Outlook DERWENT On John Burns
Slide 59: Outlook
Outlook »» Strong investment and letting market in central London »» Exciting stock to deliver for decade »» New acquisitions for early activity »» London resilience »» West End upward cycle to continue »» Robust financial base 59
Slide 60: Appendices
Appendices DERWENDON
Slide 61: Appendices
Appendices Page Page 1. Net asset value per share 62 12. Annualised contracted rental income 73 2. Group income statement 63 13. Vacant accommodation 74 3. Reclassification of loan arrangement costs 64 14. Rent banding and tenant profile 75 4. Like-for-like rental income 65 15. Lease expiry profile
Slide 62: Appendix 1 - net asset value per share
Appendix 1 - net asset value per share Dec 2010 Dec 2009 Basic Diluted Basic Diluted £m p p £m p p Net assets attributable to equity shareholders 1,448.8 1,432 1,422 1,127.2 1,117 1,110 Fair value of bond 2.7 16.3 EPRA NNNAV 1,451.5 1,434 1,425 1,143.5 1,133 1,126 Fair value of bond (2.7) (16.3) Def
Slide 63: Appendix 2 - group income statement
Appendix 2 - group income statement Year Year ended ended Dec 2010 Dec 2009 £m £m Profit/(loss) before tax (IFRS) 356.4 (34.9) Revaluation (surplus)/deficit (301.6) 81.1 Joint venture revaluation (surplus)/deficit (0.9) 1.3 (Profit)/loss on disposal of properties (0.9) 16.6 Fair value movement in de
Slide 64: Appendix 3 - reclassification of loan arrangement costs
Appendix 3 - reclassification of loan arrangement costs »» Loan arrangement costs offset against loan balances within ‘borrowings’ in accordance with IAS 39 »» Loan arrangement costs amortised through finance costs rather than administrative expenses »» Non-utilisation fees and other finance costs e
Slide 65: Appendix 4 - like-for-like rental income
Appendix 4 - like-for-like rental income Properties owned throughout the Development two years Acquisitions Disposals property Total £m £m £m £m £m 2010 Rental income 109.7 3.4 0.1 5.5 118.7 Property expenditure (6.2) (0.4) (0.1) (1.4) (8.1) Net rental income 103.5 3.0 - 4.1 110.6 Surrender premiums
Slide 66: Appendix 5 - debt facilities
Appendix 5 - debt facilities Nominal Maturity £m £m 6.5% secured bond 175.0 March 2026 Floating rate guaranteed unsecured loan note 1.4 February 2012 Committed bank facilities Term1 28.0 June 2018 Term/revolving credit 90.0 December 2017 Revolving credit 100.0 November 2015 Term/revolving credit 125
Slide 67: Appendix 6 - net debt
Appendix 6 - net debt Dec Dec 2010 2009 £m £m £m £m Financial liabilities 889.4 733.9 Acquired fair value of bond less amortisation (17.9) (18.6) Unamortised loan arrangement costs 4.4 2.6 Leasehold liabilities (7.4) (7.4) Total drawn bank loans 868.5 710.5 Overdraft 5.6 5.9 Undrawn facilities 261.4
Slide 68: Appendix 7 - valuation performance by village
Appendix 7 - valuation performance by village Valuation Valuation Valuation Weighting movement movement 2010 2010 20101 20102,3 £m % % £m West End Fitzrovia4 887.2 37 15.2 97.9 Victoria 302.0 12 20.4 51.1 Soho/Covent Garden 162.1 7 14.3 20.3 Belgravia 131.7 5 12.2 14.4 Baker Street/Marylebone 114.3
Slide 69: Appendix 8 - valuation drivers and rental value growth
Appendix 8 - valuation drivers and rental value growth Drivers of valuation movement 1 Dec-10 42 28 30 1 Jun-10 22 1 77 Rental value growth Asset management Yield shift 0 20 40 60 80 100 Contribution to valuation movement (%) Rental value growth H1 2010 H2 2010 2010 2009 % % % % West End 3.0 3.0 6.0
Slide 70: Appendix 9 - valuation yields
Appendix 9 - valuation yields Yields EPRA yields 10 'Topped-up' Net initial net initial 1 Pre-EPRA EPRA 9 yield 2 yield2 8 % % Yield (%) 7 6 West End 4.3 5.0 City Borders 5.9 6.3 5 Central London 4.6 5.2 4 Initial yield True equivalent yield Reversionary yield Provincial 5.8 6.6 3 Dec-00 Dec-02 Dec-
Slide 71: Appendix 10 - portfolio summary
Appendix 10 - portfolio summary Net Rent review/ contracted Average Vacant space lease renewal Total Estimated Valuation rental income rental income rental value reversions reversion rental value £m £m pa £psf £m pa £m pa £m pa £m pa West End Central 1,679.7 79.3 27.77 6.2 10.2 16.4 95.7 Borders 178
Slide 72: Appendix 11 - portfolio statistics by village
Appendix 11 - portfolio statistics by village Vacant Net Average Vacant Rent review/ Estimated Floor floor contracted rental space lease renewal Total rental Valuation Weighting area area rental income income rental value reversion reversion value £m % sq ft 000’s sq ft 000’s £m pa £psf £m pa £m pa
Slide 73: Appendix 12 - annualised contracted rental income
Appendix 12 - annualised contracted rental income »» Annualised contracted rental income at 31 December 2010 >> Includes: >> Annualised rents under leases Reconciliation of contracted income Dec 09 to Dec 10 >> Excludes: 120 >> Rental movements on outstanding rent reviews and 115 Contracted income (
Slide 74: Appendix 13 - vacant accommodation
Appendix 13 - vacant accommodation Floor Rental area per annum Comment ‘000 sq ft £m Available at year end Angel Building EC1 137 5.0 22,900 sq ft under offer 1 Maple Place/12 Fitzroy Street W1 20 0.7 65 Whitfield Street W1 12 0.4 3,100 sq ft under offer 4 Grosvenor Place SW1 11 0.4 6,800 sq ft unde
Slide 75: Appendix 14 - rent banding and tenant profile
Appendix 14 - rent banding and tenant profile Central London office rent banding1 Profile of tenants' business sector1 £60+ psf Other £50 - £60 psf 4% £0 - £20 psf 9% 11% 4% Media, TV, marketing Financial and advertising 7% 28% £20 - £30 psf £40 - £50 psf 19% Government and 22% public administration
Slide 76: Appendix 15 - lease expiry profile and lease length
Appendix 15 - lease expiry profile and lease length Expiries and breaks as percentage of portfolio income1 West City End Borders 2011 2012 2013 2014 2015 Total Expiries 8 1 9 2 9 4 5 29 Single breaks 2 3 5 5 5 6 1 22 Rolling breaks 3 2 5 - - - - 5 13 6 19 7 14 10 6 56 Profile of rental income expiry
Slide 77: Appendix - central London vacancy
Appendix 16 - central London vacancy Central London office vacancy rates 18 West End 16 City Central London 14 West End average Vacancy rate (%) City average 12 10 8 6 4 2 0 Q1 01 Q1 02 Q1 03 Q1 04 Q1 05 Q1 06 Q1 07 Q1 08 Q1 09 Q1 10 Source: CB Richard Ellis 77
Slide 78: Appendix - central London take-up
Appendix 17 - central London take-up West End take-up 6 5 Take-up (million sq ft) Annual Average 4 3 2 1 0 1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 2010 Source: CB Richard Ellis 78
Slide 79: Appendix - central London investment transactions
Appendix 18 - central London investment transactions Central London investment transactions 6 Total Value of investment transactions (£bn) 4 quarter average 5 4 3 2 1 0 Q1 01 Q1 02 Q1 03 Q1 04 Q1 05 Q1 06 Q1 07 Q1 08 Q1 09 Q1 10 Source: CB Richard Ellis 79
Slide 80: Appendix - central London rental growth
Appendix 19 - central London rental growth Central London prime office rental growth 40 30 20 Rental growth (% pa) 10 0 -10 -20 West End -30 City Central London -40 Q1 01 Q1 02 Q1 03 Q1 04 Q1 05 Q1 06 Q1 07 Q1 08 Q1 09 Q1 10 Source: CB Richard Ellis 80
Slide 81: Appendix 20 - planning potential
Appendix 20 - planning potential Possession year - potential project areas Existing Potential area 2011 2012 2013 2014 2015 delivery '000 sq ft '000 sq ft '000 sq ft '000 sq ft '000 sq ft '000 sq ft On-site1 2011 79 79 1 Page Street SW1 2012 118 118 - - - - Woodbridge House EC1 2012 75 85 - - - - Ce
Slide 82: Appendix 21 - management structure - executive team
Appendix 21 - management structure - executive team John Burns Chief Executive Simon Silver Property Director Damian Wisniewski Finance Director Nigel George Property Director Paul Williams Property Director David Silverman Property Director Tim Kite Company Secretary Richard Baldwin Head of Develop
Slide 83: Disclaimer
Disclaimer This presentation has been prepared by Derwent London plc (the “Company”). No representation or warranty (express or implied) of any nature is given nor is any responsibility or liability of any kind accepted by the Company or any of its directors, officers, employees, advisers, represent