Barratt Redrow Plc · LSE:BTRW
Barratt Redrow — Barratt Developments — Corporate Update (July 2013)
37 slides from Barratt Redrow's corporate update, Jul 24, 2013
Slide 1: Barratt London Analyst presentation
Barratt London Analyst presentation 24 July 2013
Slide 2: Mark Clare, Group Chief Executive
Mark Clare Group Chief Executive Altitude, Aldgate 2
Slide 3: Barratt – a leading London housebuilder
Barratt – a leading London housebuilder Complexity BARRATT London Other housebuilders Volumes For illustrative purposes only 3
Slide 4: Our key strengths
Our key strengths • Breadth and depth of experience • Operating model & technical capability • Diverse product range • Industry leading sales & marketing • Partner of choice Maximise opportunities and returns whilst managing risk 4
Slide 5: Breadth and depth of experience
Breadth and depth of experience Regional Managing Director Alastair Baird Operations Director Operations Director Operations Director Regional Development Regional Sales Regional Finance Mark Ashall Kevin Wotherspoon Simon Garrett Director Director Director Greg Tillotson Gary Patrick Bob Williams L
Slide 6: Operating model & technical capability
Operating model & technical capability • Unique end to end approach - Sourcing land - Achieving consent - Construction excellence - Purchasing power - Risk management 6
Slide 7: Diverse product range
Diverse product range • Currently operating in 16 London Boroughs • Private selling prices ranges from £160k to c. £6m • Private revenue per sq/ft from £200 to £2,400 • Site size ranges from 45 units to 2,000 units Not overly reliant on any geography, buyer type or demographic Courthouse, Westminste
Slide 8: Industry leading sales & marketing
Industry leading sales & marketing • Own sales & marketing team – no agents • Trusted brand in London • Customer offering includes: - 5 year warranty - Barratt Residential Asset Management • Overseas sales of 15% but could be grown further 8
Slide 9: Partner of choice
Partner of choice • We seek to be the ‘Partner of Choice’ • Very well established in a number of London Boroughs • To date have developed powerful JVs with - London & Quadrant - British Land - Morgan Stanley Real Estate Investing 9
Slide 10: Conclusions
Conclusions • Great pipeline of new projects • Very strong technical capability • Excellent partnerships and growing • Already a big contribution to Group’s recovery with more to come 10
Slide 11: Alastair Baird, Regional Managing Director London
Alastair Baird Regional Managing Director London Penthouse apartment, Altitude, Aldgate 11
Slide 12: London performance
London performance FY12 FY13 % change (unaudited) Total revenue (ex JV) £309m £402m +30% Completions - Private 804 1,229 +53% - Affordable 429 133 -69% - JVs 59 224 +280% Total completions 1,292 1,586 +23% Forward sales (30 June) - Private plots 273 276 +1% - Affordable plots 163 191 +17% - JV plots
Slide 13: London performance
London performance FY12 FY13 % change (unaudited) ASP - Private £300k £308k +3% - Affordable £159k £161k +1% - JV £164k £226k +38% Total ASP (inc JV) £247k £284k +15% Sites (30 June) - Non JV 13 14 +8% - JV 2 3 +50% Total 15 17 +13% 13
Slide 14: Barratt London sites
Barratt London sites SALES ACTIVE SITES 1 The Primary, Southall 11 Queensland Terrace, Islington(1) 2 Great West Quarter, Brentford 12 Dalston Square, Dalston 3 Edgware Green, Edgware(2) 13 Altitude, Aldgate(1) 4 Fulham Riverside, Fulham(1) 14 Redwood Park, Rotherhithe(2) 5 Osiers, Wandsworth 15 Map
Slide 15: London delivery
London delivery Delivery of completions Plots as at 30 June 2013 Private Affordable H1 14 H2 14 H1 15 H2 15 H1 16 H2 16 H1 17 H2 17 SALES ACTIVE SITES The Primary, Southall 21 0 GWQ, Brentford 163 0 Edgware Green, Edgware 412 136 Fulham Riverside 396 36 Osiers, Wandsworth 93 7 Lavender Gdns, Mitcham
Slide 16: London delivery
London delivery Delivery of completions Plots as at 30 June 2013 Private Affordable H1 14 H2 14 H1 15 H2 15 H1 16 H2 16 H1 17 H2 17 FUTURE DEVELOPMENTS Westleigh Rise, Putney 145 0 Chandos Way, Golders Green 45 0 Great Minster East, Westminster 60 0 Nine Elms, Vauxhall 593 52 Camden Way, Camden 85 8
Slide 17: Altitude site visit – the plan
Altitude site visit – the plan • All to walk around to site entrance – take belongings • Divide into 2 groups – red and blue spots on your name badge indicates which group • Reds – Show flat and then level 26 of tower • Blue – Level 26 of tower and then show flat • 2:20pm – Depart for Fulham Riversi
Slide 18: Altitude build programme
Altitude build programme • 28 floors, 2 storey basement PROJECT DELIVERY • 235 residential units Demolition Jan 11 Basement July 11 • 5,887 sq/ft office space, 7,147 sq/ft retail space Frame Feb 12 Façade commenced July 12 • Concrete frame Façade completed Aug 13 • Cladding – unitised system, First
Slide 19: Aldgate Place
Aldgate Place GDV £254m Plots 463 Private ASP £648k Private revenue per sq/ft £915 % Affordable 32% Land acquired (expected) Dec 13 Land source Tishman Speyer On site Jan 14 Off site Nov 18 19
Slide 20: Aldgate Place
Aldgate Place Block A – Commercial/office Block B – Private residential Block D – Affordable residential Block E – Hotel Block F – Private residential Block G – Mixed residential Basement – Energy centre, plant rooms, cycle and car parking 20
Slide 21: Gary Patrick, Regional Sales Director London
Gary Patrick Regional Sales Director London Altitude sales team 21
Slide 22: A diverse customer base
A diverse customer base FY 13 reservations by buyer type (including JVs) Overseas investors 15% Owner occupiers UK investors 56% 29% 22
Slide 23: Altitude sales & marketing
Altitude sales & marketing GDV £116m Plots - total 235 (100%) Plots - private 171 (73%) Plots - affordable 64 (27%) Private ASP £608k Private revenue per sq/ft £876 Buyers to date UK - 74 (68%) International - 36 (32%) Profile to date Owner occupier - 32 (28%) Investor - 78 (72%) Practical completio
Slide 24: The Courthouse, Westminster
The Courthouse, Westminster GDV £180m Plots 129 Private ASP £1,400k Private revenue per sq/ft £1,589 % affordable 0% Land acquired Feb 07 Land source Government On site Jan 12 Off site Dec 14 Net sales rate to date 3.3 per week Private units sold to date 45 (35%) 24
Slide 25: Great Minster East, Westminster
Great Minster East, Westminster GDV £95m Plots 60 Private ASP £1,578k Private revenue per sq/ft £1,462 % affordable 0% Land acquired Feb 13 Land source Investor On site Mar 13 Off site Dec 14 25
Slide 26: Greg Tillotson, Regional Land & Planning Director London
Greg Tillotson Regional Land & Planning Director London Fulham Riverside, Fulham 26
Slide 27: The London land market
The London land market • House prices currently higher than pre-recession peak • Between 2011 and 2021, extra 500,000 new households • Need extra 50,000 new homes each year • Demand for new land increasing • Competition for new land is diverse • To compete successfully, need experience, technical ab
Slide 28: Fulham Riverside, Fulham
Fulham Riverside, Fulham GDV £438m Plots 462 Private ASP £1,057k Private revenue per sq/ft £1,016 % Affordable 14% Land acquired Jul 12 Land source Sainsbury’s On site Aug 12 Off site Dec 17 28
Slide 29: Ladywell Village, Catford
Ladywell Village, Catford GDV £118m Plots 589 Private ASP £234k Private revenue per sq/ft £406 % Affordable 29% Land acquired (expected) May 14 Land source GLA On site May 14 Off site Dec 19 29
Slide 30: Blackfriars Road, Southwark
Blackfriars Road, Southwark GDV £164m Plots 368 Private ASP £517k Private revenue per sq/ft £781 % Affordable 31% Land acquired (expected) Jul 14 Land source Private On site Jul 14 Off site Jun 17 30
Slide 31: London Landbank
London Landbank JV Owned & 30 June 2013 Owned Conditional Conditional(1) JV Approved Total No of plots 3,421 1,443 2,216 2,645 9,725 No of sites 21 7 5 2 35 GDV 1,257 599 1,211 900 3,967 ASP £354k £405k £537k £339k £399k (1) Includes a JV with Morgan Stanley Real Estate Investing which was condition
Slide 32: David Thomas, Group Finance Director
David Thomas Group Finance Director Fulham Riverside, Fulham 32
Slide 33: Joint ventures in London
Joint ventures in London • Reduces peak investment • Reduces concentration risk • Improves financial returns – absolute & ROCE • Financial strength of JV partners • Increasing Barratt’s outlets across the capital – Greater customer awareness – Raised profile with land agents – Greater access to land
Slide 34: The accounting for JVs
The accounting for JVs • Single line on the income statement – Net of interest – Net of tax for limited companies but not LLPs • Not included in statutory Group KPI’s – ASP and revenue – Gross profit and gross margin – Operating profit and operating margin • Balance sheet summarised and netted into
Slide 35: Fulham Riverside build programme
Fulham Riverside build programme • 396 private, 66 affordable 113,000 PROJECT DELIVERY sq/ft store 120,000 sq/ft basement Preferred bidder status Feb 12 • Sainsbury’s priorities Contracts signed Jul 12 Start on site Jul 12 • Construction methodology and Podium slab Jun 13 multiple phasing Jetty sale
Slide 36: Fulham Riverside sales & marketing
Fulham Riverside sales & marketing GDV (phase 1) £240m Plots - total (phase 1) 266 (100%) Plots - private 214 (80%) Plots - affordable 52 (20%) Private ASP £1,059K Private revenue per sq/ft £992 Buyers to date UK - 21 (36%) International - 36 (64%) Profile to date Owner occupier - 1 (2%) Investor -
Slide 37: Disclaimer
Disclaimer This document has been prepared by Barratt Developments PLC (the “Company”) solely for use at a presentation in connection with the analyst site visits. For the purposes of this notice, the presentation (the “Presentation”) shall mean and include these slides, the oral presentation of the