British Land Company PLC · LSE:BLND
British Land — H1 2016 Earnings Presentation
89 slides from British Land's earnings presentation, November 2015
Slide 1: Half Year Results Presentation
Half Year Results Presentation 6 months to 30 September 2015 www.britishland.com @BritishLandPLC #BLHY2015 $BLND
Slide 2: Results Overview
Results Overview Chris Grigg Chief Executive
Slide 3: Highlights
Highlights • Strong set of results • Strengthening ERV in London • Positive momentum in Retail • Driving income growth • Positive leading indicators 3
Slide 4: Focused investment activity
Focused investment activity Growing in Investing Creating great London and around environments the South East infrastructure Understanding Internet Profitable our customers resilient retail development 4
Slide 5: Broadly balanced investment activity
Broadly balanced investment activity £860m Investment Activity Gross investment £m Net Spend £343m £395m (£19m) £626m (£315m) (£2m) 1,200 800 400 0 -400 -800 -1,200 2011 2012 2013 2014 2015 YTD 2016 -1,600 Disposals Acquisitions & Development (ex retail capex) Net Spend 5
Slide 6: Financial highlights
Financial highlights 9% 6 months total accounting return HY to 30 September 2015 Change NAV per Share 891p +7.5% Valuation £14.4bn +4.7% Total Property Return 6.9% Underlying Profit Before Tax £171m +10.3% Dividend per Share 14.2p +2.5% Total Accounting Return 9.1% 6
Slide 7: Valuation performance
Valuation performance 4.7% • Valuation ahead in both sectors Increase in valuation – +8.2% in Offices & Residential Contribution to valuation uplift – +1.8% in Retail & Leisure • Asset management and development contributed nearly 40% of uplift • Yield shift was an important driver • Continuing to o
Slide 8: Driving rental growth
Driving rental growth 5.7% • Positive occupational markets Investment lettings/ renewals vs ERV • Signing new space at attractive terms vs ERV • Feeding through to rent reviews and underlying income • LFL income growth strong in Offices (7.4%); positive in Retail (1.1%) HY to 30 September 2015 Retai
Slide 9: Offices – leasing well
Offices – leasing well 5.0% • Portfolio virtually full Lettings/renewals ahead of ERV 10% • Over 200,000 sq ft of lettings/renewals 6% • 160,000 sq ft at the Leadenhall Building, breaking £90 psf 9% 48% • 41,500 sq ft under offer, 12% ahead of ERV • Focus on driving rental growth • 720,000 sq ft of
Slide 10: Offices & Residential valuation performance
Offices & Residential valuation performance • Stronger ERV performance 8.2% Offices & Residential valuation growth • Yield shift continuing to make a strong contribution • Outperformed IPD capital returns by 110 bps HY to 30 September 2015 Valuation uplift ERV growth City 8.5% 5.1% West End 8.1% 4.1
Slide 11: Transforming Broadgate into a world-class central London destination
Transforming Broadgate into a world-class central London destination Tech City Shoreditch Start-up Creative sector 2 1 5 BROADGATE Barbican Spitalfields Cultural hub Modern markets 3 The City £ 121 psf Financial Centre 4 Average retail rent vs. nearly £600 psf for Oxford Street 150m Footfall at Live
Slide 12: Broadgate development pipeline
Broadgate development pipeline 2-3 Finsbury Avenue Advancing plans 190,000 sq ft (existing space) 100 Liverpool Street Planning consent received 3 1 Finsbury Avenue Resolution to grant planning consent received 2 517,000 sq ft 1 300,000 sq ft 12
Slide 13: Paddington Central – improving the public realm
Paddington Central – improving the public realm 4 Kingdom Street 2 Kingdom Street Kitchen garden Woodland garden Library 1 Kingdom Street Games room 13
Slide 14: Paddington Central – progressing development
Paddington Central – progressing development 5 Kingdom Street 4 Kingdom Street Progressing plans for 5 Kingdom Street Core at 4 Kingdom Street now complete 14
Slide 15: Regent’s Place – future opportunities
Regent’s Place – future opportunities Refurbishment/ Rent reviews Refurbishment redevelopment 10-20 Triton Street 338 Euston Road 1 Triton Square 375,000 sq ft 115,000 sq ft 220,000 sq ft £49 passing rent psf £41 passing rent psf £45 passing rent psf 15
Slide 16: Retail operational metrics remain strong
Retail operational metrics remain strong Footfall +1.9% Footfall +5.5% Retailer same store sales ahead of market by across shopping parks + 3.3%; to £5.6bn 300bps Source: Springboard and Experian Source: Springboard and Experian Source: British Land, Springboard Occupancy remaining Click & collect 5
Slide 17: Retail – good demand from high quality occupiers
Retail – good demand from high quality occupiers Lettings and renewals by sector by rent Taking space out of town 7% 3% 9% 31% 12% 16% 22% Fashion & Footwear Health and Beauty General Retail DIY Food & Beverage Electrical & Mobile Phone Other 17
Slide 18: Retail – leasing at attractive rates
Retail – leasing at attractive rates 6.6% Lettings/renewals ahead of ERV Peak rent Recent signings Glasgow Fort £83 per sq ft 1,200 sq ft Stockton £60 per sq ft 2,000 sq ft Ealing £50A3 Broadway per sq ft 3,000 sq ft 18
Slide 19: Continued ERV growth in Retail
1.4% Continued ERV growth in Retail Portfolio rental growth vs IPD Rental growth on Index Mar-10 =100 multi-let assets 110 105 100 95 90 85 80 Mar-10 Sep-10 Mar-11 Sep-11 Mar-12 Sep-12 Mar-13 Sep-13 Mar-14 Sep-14 Mar-15 Sep-15 BL ERV (All Retail) IPD ERV (All Retail) IPD ERV (Secondary Retail) Sourc
Slide 20: Retail & Leisure valuation performance
Retail & Leisure valuation performance • Performance driven by multi-let portfolio 2.2% Uplift on multi-let assets • Capital returns in line with IPD • Multi-let portfolio capital returns 30 bps ahead of IPD HY to 30 September 2015 Valuation uplift ERV growth Multi-let 2.2% 1.4% Superstores (1.6)% (
Slide 21: Continued evolution of the Retail portfolio
Continued evolution of the Retail portfolio £260 million asset disposals Superstores Non-strategic retail parks £145 million investment Investing in HUT Extensions & developments Small scale capex £95 million £10 million £40 million (Taking share to 75%) • Glasgow Fort • Oldham • £1.5bn shopping par
Slide 22: Driving preference at New Mersey Shopping Park, Speke
Driving preference at New Mersey Shopping Park, Speke 3rd 10m Largest Annual shopping park footfall in the UK 11 min 36% Average drive Visitors use click time & collect New Mersey Shopping Park today Proposed leisure extension 22
Slide 23: Investment driving performance – Meadowhall Park Lane
Investment driving performance – Meadowhall Park Lane Refurbishment helped convert target retailers
Slide 24: Investment driving performance – Meadowhall Refurbishment
Investment driving performance – Meadowhall Refurbishment New additions 55m On site with a £ refurbishment Attracting new occupiers
Slide 25: Growing our London campuses through development
Growing our London campuses through development Broadgate Paddington Regent’s Place Canada Water Central 1 million sq ft 390,000 sq ft 220,000 sq ft c. 5.5 million sq ft • 100 Liverpool Street • 4 Kingdom Street • 338 Euston Road • Mixed use, including retail, • 1 Finsbury Avenue • 5 Kingdom Street
Slide 26: Retail development
Retail development New Mersey, Speke Eden Walk Leisure extensions 560,000 sq ft 230,000 sq ft (inc. residential) Meadowhall 330,000 sq ft 26
Slide 27: Canada Water
Canada Water Canada Water 46 acre development opportunity in zone 2
Slide 28: Financial Review
Financial Review Lucinda Bell Chief Financial Officer
Slide 29: Highlights
Highlights Period to H1 2015 H1 2016 Change Underlying Profit before Tax (£m) 155 171 10.3% Underlying Earnings per Share (p) 15.3 16.0 4.6% Dividend per Share (p) 13.84 14.18 2.5% As at H2 2015 H1 2016 Change Valuation Performance 5.2% 4.7% EPRA Net Asset Value per Share (p) 829 891 7.5% LTV 35% 34
Slide 30: Underlying profit bridge
Underlying profit bridge £m 6 (6) 8 (3) 11 171 155 H1 2015 Financing Development Like-for-Like Administration Other H1 2016 activities rental growth expenses 30
Slide 31: Net rental income movement
Net rental income movement £m 22 (23) 6 12 Retail 1.1% Offices 7.4% 309 292 Total 3.3% H1 2015 Developments Like-for-Like Acquisitions Disposals H1 2016 rental growth 31
Slide 32: Reducing financing costs
Reducing financing costs £m 11 (5) 5 (4) (103) (96) H1 2015 Financing activities Acquisitions Disposals Developments H1 2016 32
Slide 33: Income statement
Income statement HY to 30 September H1 2015 H1 2016 Change Net Rental Income (£m) 292 309 5.8% Fees & Other Income (£m) 7 5 Administrative Expenses (£m) (41) (47) Net Finance Costs (£m) (103) (96) Underlying PBT (£m) 155 171 10.3% Underlying Earnings per Share (p) 15.3 16.0 4.6% 33
Slide 34: Continued valuation performance
Continued valuation performance HY to Valuation Uplift Uplift Yield ERV NEY Weighting London/SE September 2015 £bn £m % Compression Growth % % Weighting bps % % Retail & Leisure 7.6 139 1.8 8 0.9 5.0 51 Offices & 6.8 523 8.2 49 Residential – Of which Offices 6.5 506 8.3 20 4.5 4.4 46 Total 14.4 662
Slide 35: Valuation growth drivers – Retail & Leisure
Valuation growth drivers – Retail & Leisure HY to September 2015 Valuation Uplift Uplift Yield Compression ERV Growth £bn £m % bps % Shopping parks 3.3 36 1.1 5 0.9 Shopping centres 2.3 86 3.9 14 1.9 Superstores 0.9 (15) (1.6) (5) (0.9) Department stores 0.6 17 2.9 12 - Leisure 0.5 15 2.8 22 0.3 Ret
Slide 36: Valuation growth drivers – Offices & Residential
Valuation growth drivers – Offices & Residential HY to September 2015 Valuation Uplift Uplift Yield Compression ERV Growth £bn £m % bps % West End 3.7 285 8.1 24 4.1 City 2.8 221 8.5 16 5.1 Offices 6.5 506 8.3 20 4.5 Residential 0.3 17 6.5 Offices & Residential 6.8 523 8.2 36
Slide 37: Growth in diluted EPRA net asset value
Growth in diluted EPRA net asset value NAV per share (p) 16p (13p) 13p (1p) 47p 829p 891p Mar 15 Offices & Retail & Leisure Underlying Dividends Other Sep 15 Residential Profit 37
Slide 38: Strength of debt metrics
Strength of debt metrics Proportionally Consolidated 31 Mar 2015 30 Sep 2015 Loan to Value (LTV) 35% 34% Loan to Value pro-forma for 2012 bond conversion 32% 31% Weighted Average Interest Rate 3.8% 3.6% Interest Cover 2.6x 2.8x Average Maturity of Drawn Debt (years) 8.7 8.2 Group 31 Mar 2015 30 Sep
Slide 39: Development programme
Development programme £m Committed & Near-Term 1600 Near-Term • Current speculative commitment Pipeline £0.6bn, 100% of costs fixed 1400 Retail • Near-term pipeline 2.0m sq ft, Residential 1200 1 Triton Square & 1 Finsbury Avenue added 1000 • Near-term includes 1.8m sq ft in London Committed 800 • D
Slide 40: Future income growth
Future income growth Annualised Gross Rents Cash Flow Basis Accounting Basis £m £m Current Passing Rent1 598 Expiry of Rent-free Periods 76 634 Fixed, Minimum Uplifts 12 Total Contracted 686 634 Developments – Under Construction 17 14 Investments – Reversions2 12 12 Investments – Letting of Expiries
Slide 41: Outlook
Outlook Chris Grigg Chief Executive
Slide 42: Outlook
Outlook • Outlook for occupational markets positive • UK economy continuing to perform well • Occupiers generally more confident • But capital markets more volatile • We continue to focus on our strategic themes 42
Slide 43: Focused investment activity
Focused investment activity Growing in Investing Creating great London and around environments the South East infrastructure Understanding Internet Profitable our customers resilient retail development 43
Slide 44: Slide 44
Slide 45: Appendices
Appendices
Slide 46: Broadly balanced investment activity
Broadly balanced investment activity £860m Investment Activity Gross investment £m Net Spend £343m £395m (£19m) £626m (£315m) (£2m) 1,200 800 400 0 -400 -800 -1,200 2011 2012 2013 2014 2015 YTD 2016 -1,600 Disposals Acquisitions & Development (ex retail capex) Net Spend Note: £210 million acquisitio
Slide 47: BL property outperformance vs IPD – 5 years
BL property outperformance vs IPD – 5 years 5 years ended 30 September 2015 Outperformance bps pa 500 450 470 400 350 350 300 250 250 200 150 190 100 120 130 50 0 Retail Offices Total Capital Returns Total Returns 47
Slide 48: BL property outperformance vs IPD – 3 years
BL property outperformance vs IPD – 3 years 3 years ended 30 September 2015 Outperformance bps pa 400 350 370 300 250 240 200 150 180 100 110 50 70 80 0 Retail Offices Total Capital Returns Total Returns 48
Slide 49: Strong operational performance
Strong operational performance +300bps BL footfall performance vs Experian benchmark Outperformance Mar-10 = 100 110 105 100 95 90 85 80 Mar-10 Sep-10 Mar-11 Sep-11 Mar-12 Sep-12 Mar-13 Sep-13 Mar-14 Sep-14 Mar-15 Sep-15 UK Market (Experian Index) British Land 49
Slide 50: Adjusted net debt – proportionally consolidated
Adjusted net debt – proportionally consolidated (£bn) LTV LTV 35% 34% 0.2 (0.4) 0.3 4.9 (0.1) 4.9 Mar 15 Acquisitions Development Disposals Other Sep 15 Net Debt & Capex Net Debt 50
Slide 51: Reconciliation of underlying profit before tax
Reconciliation of underlying profit before tax HY to 30 Sep (£m) H1 2015 H1 2016 IFRS Profit before tax attributable to shareholders of the Company 1,000 809 Net valuation movement (849) (614) Profit on disposal of investment and trading properties (12) (36) Deferred and current taxation of joint ve
Slide 52: Gross rental income
Gross rental income1 6 mths to 30 September 2015 Annualised as at 30 September 2015 Accounting Basis £m Group JVs & Funds2 Total Group JVs & Funds2 Total Shopping parks 59 31 90 114 55 169 Shopping centres 34 27 61 63 51 114 Superstores 6 19 25 12 38 50 Department stores 14 - 14 29 - 29 Leisure 16 -
Slide 53: Operating costs metric
Operating costs metric HY to 30 Sep (£m) H1 2015 H1 2016 Property outgoings 17 17 Administrative expenses 41 47 Fees and other income (7) (5) Ground rent costs (2) (1) EPRA Costs (including direct vacancy costs) 49 58 Gross rental income 309 326 Ground rent costs (2) (1) Gross Rental Income (EPRA ba
Slide 54: Reconciliation of EPRA NAV & NNNAV
Reconciliation of EPRA NAV & NNNAV 31 Mar 15 30 Sep 15 £m pence £m pence Balance Sheet (IFRS) Net Assets 8,565 830 9,253 845 Deferred tax arising on revaluation movements 13 12 Mark to market on effective cash flow hedges 257 234 and related debt adjustments Adjust to fully diluted on exercise of sh
Slide 55: EPRA balance sheet (proportional consolidation)
EPRA balance sheet (proportional consolidation) JVs & £m 31 March 15 Group Funds 30 Sep 15 Total properties 13,677 9,569 4,858 14,427 Adjusted net debt (4,918) (3,450) (1,458) (4,908) Other net liabilities (124) (45) (119) (164) EPRA Net Assets (undiluted) 8,635 6,074 3,281 9,355 Dilution impact of
Slide 56: Debt maturity – group
Debt maturity – group (£m) 1,400 1,200 1,000 800 600 400 200 0 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036 Year to March Debenture & loan notes (Secured) Bank Term Loan (Secured) US Private Placements (Unsecured) Convertible Bond (Unsecure
Slide 57: Debt maturity – joint ventures and funds
Debt maturity – joint ventures and funds1 (£m) 1,400 1,200 1,000 800 600 400 200 0 2016 2017 2018 2019 2020 2021 - 2025 2026-2036 Year to March JVs – Securitisations Funds – Bank drawn Funds – Bank undrawn JVs – Bank undrawn JVs – Bank drawn 1 At British Land share (including share of HUT) 57
Slide 58: Debt Financing – Diverse profile
Debt Financing – Diverse profile • Over £650 million of debt finance Diverse Debt Profile1 (30 September 15) rearranged since 31 March 2015 £0.5bn £0.5bn • WAIR improved in H1 to 3.6% from 3.8% £0.7bn British Land £1.5bn • £350m 0% unsecured convertible bonds due 2020 (issued June 2015) – Flexible s
Slide 59: Gross and net debt reconciliation
Gross and net debt reconciliation JVs & Group Funds Less NCI At 30 September 2015 £m £m £m £m Gross Debt (principal value) 3,710 1,688 (144) 5,254 IFRS adjustments: Issue costs and premia (20) (3) 1 (22) Fair value hedges 145 - - 145 Other Items 93 - - 93 IFRS gross debt 3,928 1,685 (143) 5,470 Mark
Slide 60: Number of shares
Number of shares Number of shares (m) 31 Mar 15 30 Sep 15 IFRS Basic Weighted Average 1,016 1,022 Underlying and IFRS Diluted Weighted Average 1,022 1,086 EPRA Diluted1 Weighted Average 1,080 1,086 Period End 1,090 1,095 1 Including convertible dilution 60
Slide 61: Superstores
Superstores Stand-alone Superstores1 In Shopping Centres Total Exposure1,2,3 & Shopping Parks2 Store Size Number Valuation Capital WALL Number Valuation Capital WALL Number Valuation Capital WALL ‘000 sq ft of (BL Value to FB of (BL Value to FB of (BL Value to FB Stores share) psf yrs Stores share)
Slide 62: Major property holdings
Major property holdings BL At 30 September 2015 Sq ft Rent Occupancy Lease Share 1 (excl. developments under construction) 000’s £m pa Rate % Length yrs3 2 % 1 Broadgate, London EC2 50 4,721 225 99.3 8.3 2 Regent's Place, London NW1 100 1,590 73 98.8 8.2 3 Meadowhall Shopping Centre, Sheffield 50 1,
Slide 63: Top customers & customer split by industry
Top 20 customers & customer split by industry At 30 September 2015 % of Contracted Rent Customer Split by Industry (%) Tesco plc 6.1% UBS AG1 5.7% Manufacturing 2% Other Business 1% Debenhams 5.4% Government 2% J Sainsbury plc 4.8% DIY 7% Banks & Financial services 17%1 Kingfisher (B&Q) 2.6% Home Re
Slide 64: Portfolio weighting
Portfolio weighting 2014 2015 (current) 2015 (current) 2015 (pro-forma1) At 30 September % % £m % Shopping parks 23.4 23.0 3,315 22.4 Shopping centres 15.5 15.9 2,282 15.4 Superstores 10.1 6.3 906 5.7 Department stores 4.7 4.2 610 4.1 Leisure 2.8 3.7 530 3.6 Retail & Leisure 56.5 53.1 7,643 51.2 Of
Slide 65: Portfolio valuation by sector
Portfolio valuation by sector Group JVs & Funds1 Total1 Change %2 At 30 September 2015 £m £m £m % £m Shopping parks 2,213 1,102 3,315 1.1 36 Shopping centres 1,157 1,125 2,282 3.9 86 Superstores 221 685 906 (1.6) (15) Department stores 609 1 610 2.9 17 Leisure 527 3 530 2.8 15 3 Retail & Leisure 4,7
Slide 66: Portfolio yield & ERV movements
Portfolio yield & ERV movements1,2 EPRA net EPRA Overall Net Net equivalent Net ERV initial topped up topped up equivalent yield reversionary Growth At 30 September 2015 5 5,6 yield % net initial net initial yield % compression yield % % 3 4 yield % yield % Shopping parks 4.7 5.0 5.1 5.1 5 5.1 0.9 S
Slide 67: Lease length and occupancy
Lease length and occupancy1 Average Lease Length (yrs) Occupancy Rate (%) At 30 September 2015 To Expiry To Break Occupancy Occupancy (underlying)2 Shopping parks 8.7 7.7 97.3 98.1 Shopping centres 8.7 7.7 96.9 98.2 Superstores 14.3 14.0 100.0 100.0 Department stores 21.0 20.9 100.0 100.0 Leisure 18
Slide 68: Annualised rent & estimated rental value (ERV)
Annualised rent & estimated rental value (ERV)1 Annualised Rents (Valuation Basis) £m2 ERV £m Average Rent (£psf) At 30 September 2015 Group JVs & Funds Total Total Contracted3, 4 ERV3 Shopping parks 115 54 169 181 25.5 25.9 Shopping centres 64 52 116 128 29.5 31.4 Superstores 12 38 50 49 21.6 21.2
Slide 69: Rent subject to open market rent review
Rent subject to open market rent review1 At 30 September 2015 2016 2017 2018 2019 2020 2016-18 2016-20 For period to 31 March £m £m £m £m £m £m £m Shopping parks 12 14 22 24 16 48 88 Shopping centres 4 12 15 14 8 31 53 Superstores 7 5 4 9 15 16 40 Department stores - - - - - - - Leisure - - 2 - - 2
Slide 70: Rent subject to lease break or expiry
Rent subject to lease break or expiry1 At 30 September 2015 2016 2017 2018 2019 2020 2016-18 2016-20 For period to 31 March £m £m £m £m £m £m £m Shopping parks 8 6 10 12 15 24 51 Shopping centres 7 9 9 6 10 25 41 Superstores - - - - - - - Department stores - - 1 - - 1 1 Leisure - - - - - - - Retail
Slide 71: ERV resetting to market
ERV resetting to market At 30 September 2015 2016 2017 2018 2019 2020 2016-18 2016-20 For period to 31 March £m £m £m £m £m £m £m ERV expiring – existing portfolio1 18 24 29 52 46 71 169 Under construction developments – Offices 2 6 9 - - 17 17 Under construction developments – Retail - - - - - - -
Slide 72: Contracted rental increases (cash flow basis)
Contracted rental increases (cash flow basis) At 30 September 2015 2016 2017 2018 2019 2020 2016-18 2016-20 For period to 31 March £m £m £m £m £m £m £m Expiry of rent free periods 23 40 9 3 - 72 75 Fixed uplifts (EPRA basis) - - 1 1 - 1 2 Fixed & minimum uplifts in lieu of rental growth 1 5 1 1 1 8
Slide 73: Acquisitions
Acquisitions From 1 April 2015 Annual Price Price Passing (Gross) (BL Share) Rent Area £m £m £m2 Completed 1 Sheldon Square Offices London 210 210 10 Hercules Unit Trust unit purchase1 Retail Various 95 95 5 19-33 Liverpool Street Offices London 22 22 1 Teesside Leisure Park Retail North East 2 2 -
Slide 74: Disposals
Disposals From 1 April 2015 Annual Price Price Passing (Gross) (BL Share) Rent Area £m £m £m1 Completed Parkgate Shopping Park, Rotherham Retail Yorkshire 170 120 6 39 Victoria Street Offices London 139 139 5 Birstall Shopping Park, Leeds Retail Yorkshire 107 31 2 Hatters Way, Luton & Hylton Riversi
Slide 75: Under Construction/completed in period developments
Under Construction/completed in period developments At 30 September 2015 Sector BL Sq ft PC Current Cost to ERV Let & Resi Share Calendar Value Complete Under End Year Offer Value % '000 £m £m1 £m2 £m £m3 5 Broadgate Offices 50 710 Completed 453 16 19.2 19.2 - Whiteley Leisure, Fareham Retail 50 58
Slide 76: Near-term and medium-term developments
Near-term and medium-term developments 1 At 30 September 2015 Sector BL Share Sq ft Start On Site Total Cost Status % '000 £m Near-term Pipeline 5 Kingdom Street2 Offices 100 240 2016 209 Consented 3 100 Liverpool Street Offices 50 509 2017 260 Consented 1 Finsbury Avenue Offices 50 303 2017 150 Con
Slide 77: Residential development programme
Residential development programme At 30 September 2015 Sq Ft No. PC Date BL Share Current Cost To End Sales Market /Status Value1 complete2 Value Exchanged & Units Completed3 '000 % £m £m £m £m Clarges Mayfair4 103 34 Q3 2017 100 265 107 463 259 Mixed use 103 34 265 107 463 259 The Hempel Phase 1 25
Slide 78: Estimated future development spend and capitalised interest
Estimated future development spend and capitalised interest At 30 September 2015 PC Pre-let ERV Cost to complete £m (excluding notional interest) - 6 mths Calendar £m Mar-16 Sep-16 Mar-17 Sep-17 Mar-18 Sep-18 Year Yalding House Q4 2015 - 3 4 Kingdom Street Q2 2017 - 28 25 14 3 4 1 Clarges Mayfair Q3
Slide 79: Estimated future development rental income
Estimated future development rental income (accounting basis) At 30 September 2015 PC Gross Rental Income (Accounting basis) £m Calendar For period to 31 March 2016 2017 2018 2019 2020 Year Yalding House Q4 2015 Non-contracted - 1 2 2 2 4 Kingdom Street Q2 2017 Non-contracted - - - 7 7 Clarges Estat
Slide 80: Central London pipeline
Central London pipeline Q3 2015 m sq ft 10.0 8.0 6.0 4.0 2.0 0.0 97 98 99 00 01 02 03 04 05 06 07 08 09 10 11 12 13 14 15 16 17 18 19 Source: Knight Frank, British Land Completed Pipeline Pre-let Potential Speculative 10 year average new/refurb take-up U/C Pre-let U/C - Speculative 10 year average d
Slide 81: West End development pipeline
West End development pipeline Q3 2015 m sq ft 2.5 2.0 1.5 1.0 0.5 0.0 97 98 99 00 01 02 03 04 05 06 07 08 09 10 11 12 13 14 15 16 17 18 19 Source: Knight Frank, British Land Completed Pipeline Pre-let Potential Speculative 10 year average new/refurb take-up U/C Pre-let U/C - Speculative 10 year aver
Slide 82: City development pipeline
City development pipeline Q3 2015 m sq ft 6.0 5.0 4.0 3.0 2.0 1.0 0.0 97 98 99 00 01 02 03 04 05 06 07 08 09 10 11 12 13 14 15 16 17 18 19 Source: Knight Frank, British Land Completed Pipeline Pre-let Potential Speculative 10 year average new/refurb take-up U/C Pre-let U/C - Speculative 10 year aver
Slide 83: Vacancy Central London
Vacancy Central London West End & City Vacancy Rates % 18 16 14 12 10 8 6 4 2 0 1985 1990 1995 2000 2005 2010 Q3 2015 Source: CBRE West End Void Rate (Period end) City Void Rate (Period end) 83
Slide 84: London office market rental outlook
London office market rental outlook Rental Growth Driven by Imbalance Between Supply and Demand Prime London Office Rents £ psf 140 120 100 80 60 40 20 Actual Forecast 0 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
Slide 85: Property Yields and interest rate yield gap
Property Yields and interest rate yield gap Retail and London Office Yields 10.0 8.0 NIY % 6.0 4.0 2.0 Source: IPD All Retail Central London Offices Property Yield vs 10 Year Gilt Yields Gap as multiple of gilt yield 3.0 1.0 -1.0 1990 1996 1998 2000 2003 2004 2007 2009 2010 2013 2015 Source: IPD/Blo
Slide 86: Regent’s Place Campus
Regent’s Place Campus @ 20 Triton Street @ 1 Osnaburgh Street 6) 1-8 Longford Street @) UKPN Substation ® 1,4&7 Triton Square © 10 Brock Street @ 20 Brock Street 15-31 Hampstead Road (9) 30 Brock Street @® Euston Tower @ 2 Triton Square @ 338 Euston Road BROCK STREET @ 350 Euston Road EUSTON @ 10 Tr
Slide 87: Paddington Central Campus
Paddington Central Campus 87
Slide 88: Broadgate Campus
Broadgate Campus o/ SHOREDITCH HIGH STREET T we ORSHp « Tee, EARL STREET & x £& = [J | oy & —_SPITALFIELDS © = BRUSHFIELD STREET LIVERPOOL STREET STATION ARTILLERY LANE Mino, Le “SExy STREEy po MOORGATE STATION CONCOURSE CROSSRAI >< ly @ Joint venture ownership "P00, 5 @ Non-joint venture ownership
Slide 89: Disclaimer
Disclaimer The information contained in this presentation has been extracted largely from the Half Year Results Announcement for the period ended 30 September 2015. This presentation may contain certain “forward-looking” statements. By their nature, forward-looking statements involve risk and uncert