British Land Company PLC · LSE:BLND
British Land — H1 2015 Earnings Presentation
85 slides from British Land's earnings presentation, Nov 18, 2014
Slide 1: Half Year Results Presentation
WWW.BRITISHLAND.COM @BRITISHLANDPLC HALF YEAR RESULTS PRESENTATION HALF YEAR ENDED 30 SEPTEMBER 2014 #BLHY2015
Slide 2: Results Overview
RESULTS OVERVIEW Chris Grigg Chief Executive 2
Slide 3: Focused Investment Underpins Strong Results
FOCUSED INVESTMENT UNDERPINS STRONG RESULTS • Focused on creating “Places People Prefer” 1 Attractive environments • Well managed environments London as a • Committed more capital to London and South East 2 leading global City • Increased exposure to West End and up and coming locations Importance o
Slide 4: Half Year Highlights
HALF YEAR HIGHLIGHTS • Exceptional leasing activity • Continue to deliver significant value from London development • Improved retail occupational metrics • Strong valuation performance 4
Slide 5: Key Financials
KEY FINANCIALS HY to 30 September 2014 % Change UK Valuation (6 months) £12.8bn +7.2% NAV per Share (6 months) 769p +11.8% Total Property Return 9.8% Underlying Profit Before Tax £155m +6.2% Dividend per Share 13.8p +2.5% Total Accounting Return 13.7% 5
Slide 6: Stronger Operational Performance
STRONGER OPERATIONAL PERFORMANCE • Further improvement in occupational markets • Majority of 2010 development programme let • Lettings/renewals well ahead of ERV in retail and offices • 486,000 sq ft of space under offer at terms ahead of ERV HY to 30 September 2014 Retail Office Total Lettings and
Slide 7: Stronger Valuation Performance
STRONGER VALUATION PERFORMANCE • Continue to outperform IPD; capital returns +70bps • Maintaining price discipline: net sellers during the half TOTAL VALUATION MOVEMENT £m £309m £639m £872m 800 600 400 200 0 H1 2013/14 H2 2013/14 H1 2014/15 Asset Management Development Yield Movement Total Valuation
Slide 8: Key Office and Residential Highlights
KEY OFFICE AND RESIDENTIAL HIGHLIGHTS • Valuations strongly ahead • Exceptional leasing performance • Further progress on new developments • Rental growth now firmly established 8
Slide 9: Continued Strong Performance
CONTINUED STRONG PERFORMANCE • Office capital returns of 9.2%; outperformed IPD by 110bps • Strong performances from West End and City • Our actions continue to drive performance – Residential pre-sales at Clarges Mayfair – Letting recently completed space at 39 Victoria Street and 10 Portman Square
Slide 10: Exceptional Office Leasing in Strong Markets
EXCEPTIONAL OFFICE LEASING IN STRONG MARKETS • 695,000 sq ft of lettings and renewals completed/under offer • Lettings on average 10.4% ahead of ERV • Occupancy at 95%, up 600bps like-for-like • 2010 development programme now 87% let 39 VICTORIA STREET 10 PORTMAN SQUARE LEADENHALL 95k sq ft for 12 y
Slide 11: Improving Our Campus Environments – Revitalising Broadgate
IMPROVING OUR CAMPUS ENVIRONMENTS – REVITALISING BROADGATE • Under offer to tech-related occupier Creating a new food destination at Broadgate Circle fills up 199 Bishopsgate – Broadgate office space will be fully let • Extension of 185,000 sq ft Deutsche Bank lease by 5.8 years • Progressing major
Slide 12: Successfully Repositioning Regent's Place
IMPROVING OUR CAMPUS ENVIRONMENTS - SUCCESSFULLY REPOSITIONING REGENT’S PLACE • Affordable rents in high quality Creating a vibrant office location for London location just outside core West End • Now fully occupied following letting of 30 Brock Street • Significant rental increases − New space at <
Slide 13: Completed the Leadenhall Building
COMPLETED THE LEADENHALL BUILDING • Now 58% let or under offer • Recent letting set new rental high in City of over £80psf • Good levels of interest • Positive on letting prospects for remaining space, primarily upper floors 13
Slide 14: Significant New Development Pipeline Principally in London
SIGNIFICANT NEW DEVELOPMENT PIPELINE PRINCIPALLY IN LONDON • New development pipeline with significant value creation potential • Focused on places which will benefit disproportionately from London’s growth • Bought ahead of step-up in value; built-in optionality • 2.3m sq ft in recently committed/n
Slide 15: Excellent Progress with Recently Committed Developments
EXCELLENT PROGRESS WITH RECENTLY COMMITTED DEVELOPMENTS • Over £270m of residential pre- sales exchanged • Significantly reduced committed residential development exposure to under £200m • At Clarges Mayfair, pre-sales of £227m of apartments – Half of development value – Set record price for Mayfair
Slide 16: Well Placed to Move Forward with Near Term Office-Led Pipeline
WELL PLACED TO MOVE FORWARD WITH NEAR TERM OFFICE-LED PIPELINE 4 KINGDOM STREET, PADDINGTON BLOSSOM STREET, SHOREDITCH • Improved 145,000 sq ft scheme; • 350,000 sq ft office-led scheme flexible floorplates, roof terracing and • Key growth location public space • On track to submit planning by • Exp
Slide 17: Significant Medium-Term Pipeline Focused on Up and Coming Areas
SIGNIFICANT MEDIUM-TERM PIPELINE FOCUSED ON UP AND COMING AREAS IN LONDON • 4.5m sq ft medium term pipeline including over 3m sq ft at Canada Water The City Overground (10 mins away) DLR Jubilee Line Currently have 250,000 sq ft of space and will get planning for 3 million mixed use scheme To the We
Slide 18: Key Retail and Leisure Highlights
KEY RETAIL AND LEISURE HIGHLIGHTS • Strongest retail valuation growth in four years • Strong and improving operational metrics – Footfall significantly ahead of the market • Continued progress on upgrading the portfolio • Positive conditions for future rental growth 18
Slide 19: Shopping Parks in an Omni-Channel World
SHOPPING PARKS IN AN OMNI-CHANNEL WORLD Estimated share of UK shopping Forecast to grow by 122% c5% Super-regional malls to £6.5bn by 2019 c20% Shopping and Retail Parks c30% of John Lewis on-line sales Source: CACI (Comparison Goods Spend) Source: Verdict +0.7% All 30 mins Max travel time for 90% o
Slide 20: The Leading Shopping Park Portfolio in the UK
THE LEADING SHOPPING PARK PORTFOLIO IN THE UK • Largest owner of shopping/retail parks in the UK; 7 of the top 15 • Significant improvements over last three years Enhancing the occupier Adding new space Improving facilities and line up profitably services • New occupiers on 1.8m sq ft • Added 435,00
Slide 21: Focusing on High Quality Superstores
FOCUSING ON HIGH QUALITY SUPERSTORES • Good quality portfolio – Half in the South – All open A1 planning consent; generous parking – Attractive relative capital values; affordable rents • Total superstore exposure now at 12% of portfolio (from 20% in 2010) – £232m of gross assets sold since March (B
Slide 22: Reshaping of Our Retail Portfolio – Buying and Selling Well
RESHAPING OF OUR RETAIL PORTFOLIO – BUYING AND SELLING WELL Acquisitions and Disposals £m 600 Net Spend £131m £286m 400 £31m £119m 200 (£292m) 0 -200 -400 2011 2012 2013 2014 YTD 2015 -600 Disposals Acquisitions Under Offer Net Spend 22
Slide 23: Improved Retail and Leisure Performance
IMPROVED RETAIL AND LEISURE PERFORMANCE • Capital returns of 6.1%; strongest for 4 years • Yield shift primary driver of returns – Strength of investment market – Resurgent demand for large prime assets outside London • Rental growth of 1.1% Performance HY to 30 September BL% IPD% vs IPD Capital Ret
Slide 24: Good Retailer Demand Across the Portfolio
GOOD RETAILER DEMAND ACROSS THE PORTFOLIO • Lettings 8.4% ahead of ERV; now positive for 4 years Major Operators Food and Leisure New Entrants Out of Town New Formats 24
Slide 25: Our Operational Metrics Are Strong and Improving
OUR OPERATIONAL METRICS ARE STRONG AND IMPROVING Footfall +2.6% Retailer sales +4.4% Over 340m visitors +13m RETAIL (same store sales) Source: Experian (6 months to Sep ‘14) Source: BL Average dwell time Occupancy up +5% 20bps to 98.6% (like-for-like) Source: BL consumer survey Average spend Letting
Slide 26: Financial Review
FINANCIAL REVIEW Lucinda Bell Finance Director 26
Slide 27: Highlights
HIGHLIGHTS As at H2 2014 H1 2015 Change EPRA Net Asset Value per Share (p) 688 769 11.8% Valuation Performance 5.5% 7.2% Period to H1 2014 H1 2015 Change Underlying Profit before Tax (£m) 146 155 6.2% Underlying Earnings per Share (p) 14.5 15.3 5.5% Dividend per Share (p) 13.50 13.84 2.5% Total Acco
Slide 28: Underlying Profit Bridge
UNDERLYING PROFIT BRIDGE £m 6 1 8 (3) (3) 155 146 H1 2014 Developments Like for Like Prior year Current period Administration H1 2015 investment disposals Expenses activity 28
Slide 29: Net Rental Income Movement
NET RENTAL INCOME MOVEMENT £m 3 1 11 6 (4) Like Like forfor likelike 292 275 Retail 2.9% Offices 2.8% Total 2.9% H1 2014 Letting of Like for Like Prior year Current period Current period H1 2015 Developments investment acquisitions disposals activity (HUT) 29
Slide 30: Financing Costs
FINANCING COSTS £m 1 (2) (1) (3) (103) (98) H1 2014 Developments Prior year Current period Current period Financings H1 2015 investment acquisitions disposals activity (HUT) 30
Slide 31: Income Statement
INCOME STATEMENT HY to 30 September H1 2014 H1 2015 Change Net Rental Income (£m) 275 292 6.2% Fees & Other Income (£m) 7 7 Administrative Expenses (£m) (38) (41) Net Finance Costs (£m) (98) (103) Underlying PBT (£m) 146 155 6.2% EPRA Operating cost ratio 16.0% 16.0% 31
Slide 32: Another Strong Valuation Performance
ANOTHER STRONG VALUATION PERFORMANCE ERV Valuation Uplift Uplift Growth NEY Weighting Occupancy HY to September 2014 £bn £m % % % % % Retail & Leisure 7.2 418 6.0 1.1 5.3 54 98.6 Offices & Residential 5.6 454 8.7 46 - Of which Offices 5.4 442 8.9 3.9 4.9 43 95.0 Total 12.8 872 7.2 2.1 5.1 100 97.1 -
Slide 33: Valuation Growth Drivers – Retail & Leisure
VALUATION GROWTH DRIVERS – RETAIL & LEISURE Yield Valuation Uplift Uplift ERV Growth Compression HY to September 2014 £bn £m % % (bps) Shopping parks 2.9 207 7.2 0.9 45 Shopping centres 2.0 109 5.8 0.3 38 Superstores 1.3 41 3.1 0.1 12 Department stores 0.6 37 6.5 8.6 19 Leisure 0.4 24 7.1 0.7 57 Ret
Slide 34: Valuation Growth Drivers – Offices & Residential
VALUATION GROWTH DRIVERS – OFFICES & RESIDENTIAL Yield Valuation Uplift Uplift ERV Growth Compression HY to September 2014 £bn £m % % (bps) West End 3.0 249 9.0 2.6 21 City 2.3 187 9.0 5.9 34 Provincial 0.1 6 6.5 - 22 Offices 5.4 442 8.9 3.9 26 Residential 0.2 12 4.9 Offices & Residential 5.6 454 8.
Slide 35: Growth in Diluted EPRA Net Asset Value
GROWTH IN DILUTED EPRA NET ASSET VALUE NAV (p) 15p 40p (14p) (4p) 30p 14p 769p 688p Mar 14 Developments Offices Retail Underlying Dividends Dilution for Sep 14 Profit convertible 35
Slide 36: Strength of Debt Metrics
STRENGTH OF DEBT METRICS Proportionally Consolidated 31 Mar 2014 30 Sep 2014 Loan to Value (LTV) 40% 36% Average Interest Rate 4.1% 4.1% Interest Cover 2.5x 2.5x Average Maturity of Drawn Debt (years) 8.7 8.9 Group 31 Mar 2014 30 Sep 2014 Loan to Value (LTV) 29% 26% Available facilities £2.0bn £2.0b
Slide 37: Development Programme – Risk Management
DEVELOPMENT PROGRAMME – RISK MANAGEMENT • Exposure on recently committed Development Commitment £m programme is £0.7bn Recently 800 Committed • Of which to let/to sell £0.4bn 700 • Near term pipeline - with Near Term washover/optionality 600 Pre let/ Pre sold Retail • Development commitment limits:
Slide 38: Future Income Growth
FUTURE INCOME GROWTH Cash Flow Basis Accounting Basis Annualised Gross Rents £m £m Current Passing Rent 567 Expiry of Rent-free Periods 66 Completed Development lettings signed in H1 included in 604 13 Expiry of Rent-free Periods Fixed, Minimum Uplifts 12 Agreement for Lease 5 5 2010 Non-Completed D
Slide 39: Outlook
OUTLOOK Chris Grigg Chief Executive 39
Slide 40: Continued Outperformance
CONTINUED OUTPERFORMANCE BL OUTPERFORMANCE VS IPD – 6 MONTHS bps 110 70 70 70 60 60 60 50 50 Retail Offices Total ERV Growth Capital Returns Total Returns 40
Slide 41: Outlook
OUTLOOK • UK recovery more established – Interest rates likely to stay lower for longer – Continued Investment flows into UK property • Retail benefiting from an improving economy – Lead indicators in our business are positive – Expect rents to grow 1% - 3% pa medium term • Offices performance drive
Slide 42: Appendices
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Slide 43: BL Property Outperformance vs IPD – 3 Years
BL PROPERTY OUTPERFORMANCE VS IPD – 3 YEARS 3 years ended 30 September 2014 bps pa 450 400 410 350 300 250 270 200 240 150 170 160 100 140 50 0 Retail Offices Total Capital Returns Total Returns 43
Slide 44: Adjusted Net Debt – Proportionally Consolidated
ADJUSTED NET DEBT – PROPORTIONALLY CONSOLIDATED £bn LTV 40% LTV 36% 0.1 0.1 (0.3) (0.1) 4.9 4.7 Mar 14 Acquisitions Disposals Development & Operating Sep 14 Net Debt Capex Cashflow after Net Debt cash dividends 44
Slide 45: Reconciliation of Underlying Profit Before Tax
RECONCILIATION OF UNDERLYING PROFIT BEFORE TAX HY to 30 September (£m) H1 2014 H1 2015 IFRS Profit before tax attributable to shareholders of the Company 422 1,000 Net valuation movement (includes disposals) (287) (861) Deferred and current taxation of joint ventures & funds (6) 1 Capital financing
Slide 46: Gross Rental Income – Sectoral
GROSS RENTAL INCOME1 - SECTORAL 6 months to 30 September 2014 Annualised as at 30 September 2014 (Accounting Basis) £m Group JVs & Funds2 Total Group JVs & Funds2 Total Shopping parks 48 29 77 97 61 158 Shopping centres 28 30 58 47 57 104 Superstores 4 31 35 7 61 68 Department stores 17 - 17 33 - 33
Slide 47: Operating Costs Metric
OPERATING COSTS METRIC HY to 30 September (£m) H1 2014 H1 2015 Property outgoings 9 13 Administrative expenses 36 39 Share of joint ventures and funds expenses 9 6 Less: Performance & management fees (from joint ventures & funds) (5) (5) Other fees and commission (2) (2) Ground rent costs - (2) EPRA
Slide 48: Reconciliation of EPRA NAV & NNNAV
RECONCILIATION OF EPRA NAV & NNNAV 31 Mar 14 30 Sep 14 £m pence £m pence Balance Sheet (IFRS) Net Assets 7,117 697 8,024 779 Deferred tax arising on revaluation movements 6 5 Mark to market on effective cash flow hedges and 173 170 related debt adjustments Adjust to fully diluted on exercise of shar
Slide 49: EPRA Balance Sheet (Proportional Consolidation)
EPRA BALANCE SHEET (PROPORTIONAL CONSOLIDATION) JVs & £m Mar 14 Group Funds Sep 14 Total properties 12,040 7,708 5,134 12,842 Net debt (4,890) (2,392) (1,956) (4,348)2 Other net assets (liabilities) (123) 113 (238) (125) EPRA Net Assets 7,027 5,429 2,940 8,369 Loan to Value (LTV)1 40% 26% 36% Averag
Slide 50: Debt Maturity – Group
DEBT MATURITY - GROUP £m 1,000 800 600 400 200 0 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036 2037 2038 Year to 30 September BL Undrawn Facilities BL Drawn Facilities Convertible Bonds Private Placements Debentures & Loan Notes 50
Slide 51: Debt Maturity – Joint Ventures and Funds
DEBT MATURITY - JOINT VENTURES AND FUNDS1 £m 1,200 1,000 800 600 400 200 0 2015 2016 2017 2018 2019 2020-2024 2025-2037 Year to 30 September Funds – Bank undrawn Funds – Bank drawn JVs – Bank drawn JVs - Securitisations 1 At British Land share (including share of HUT) 51
Slide 52: Debt Financing – Diverse Funding Profile
DEBT FINANCING – DIVERSE FUNDING PROFILE • £325m JV bank facility arranged Diverse Debt Profile (30 September 2014) with 250 bps saving in all in cost £0.9bn • £785m revolving unsecured 5 year £0.5bn bank facility with an initial margin of 115bps (April 2014) £1.6bn • £1.4bn of undrawn facilities fo
Slide 53: Gross and Net Debt Reconciliation
GROSS AND NET DEBT RECONCILIATION At 30 Sep 2014 £m Gross Debt (principal value) 5,028 IFRS adjustments: Issue costs and premia (19) Fair value hedges 79 Other Items 33 IFRS gross debt 5,121 Market value of derivatives 87 Cash & liquid investments (290) IFRS net debt 4,918 Adjustments: Remove market
Slide 54: Number of Shares
NUMBER OF SHARES Number of shares (m) Mar 14 Sep 14 IFRS Basic Weighted Average 999 1,013 IFRS Diluted Weighted Average 1,004 1,019 EPRA Diluted1 Weighted Average 1,004 1,077 Period End 1,021 1,089 1 Including convertible dilution 54
Slide 55: Superstores
SUPERSTORES In Shopping Centres Stand-alone Superstores1 Total Exposure1,2,3 & Shopping Parks2 Valuation Valuation Valuation Store Size Number Capital WALL to Number Capital WALL to Number Capital WALL to (BL share) (BL share) (BL share) ‘000 SQ FT of Stores Value psf FB of Stores Value psf FB of St
Slide 56: Major Property Holdings
MAJOR PROPERTY HOLDINGS At 30 September 2014 BL Sq ft Rent Occupancy Lease (excl. developments under construction) Share % 000’s £m pa1 Rate % Length yrs3 2 1 Broadgate, London EC2 50 3,970 180 99.9 7.0 2 Regent's Place, London NW1 100 1,586 71 100.0 8.8 3 Meadowhall Shopping Centre, Sheffield 50 1,
Slide 57: Top Customers & Customer Split by Industry
TOP 20 CUSTOMERS & CUSTOMER SPLIT BY INDUSTRY At 30 September 2014 % of Contracted Rent Customer Split by Industry (%) Tesco plc 7.4 Debenhams 5.7 Government DIY General J Sainsbury plc 5.4 Retailers 3% HM Government 3.4 Food / 7% UBS AG 3.0 Leisure 19% Kingfisher (B&Q) 2.6 9% Home Retail Group 2.6
Slide 58: Portfolio Weighting
PORTFOLIO WEIGHTING 2013 2014 (Current) 2014 (Current) 2014 (Proforma)¹ At 30 September % % £m % Shopping parks 22.9 23.4 2,984 22.2 Shopping centres 17.3 15.5 1,988 14.9 Superstores 11.7 10.1 1,297 9.6 Department stores 4.6 4.7 601 4.5 Leisure 2.8 2.8 362 2.7 Retail & Leisure 59.3 56.5 7,232 53.9 W
Slide 59: Portfolio Valuation by Sector
PORTFOLIO VALUATION BY SECTOR Group JVs & Funds Total Change %2 At 30 September 2014 £m £m1 £m H1 Shopping parks 1,828 1,156 2,984 7.2 Shopping centres 803 1,185 1,988 5.8 Superstores 117 1,180 1,297 3.1 Department stores 600 1 601 6.5 Leisure 359 3 362 7.1 Retail & Leisure3 3,707 3,525 7,232 6.0 We
Slide 60: Portfolio Net Yields & ERV Movements
PORTFOLIO NET YIELDS & ERV MOVEMENTS At 30 September EPRA EPRA Overall Net Net Net ERV 2014 Net Topped-Up Topped-Up Equivalent Reversionary equivalent Growth (excl. developments) Initial Net Initial Net Initial Yield %1 Yield %1 yield %4 Yield %1 Yield %1,2 Yield%1,3 compression1 Shopping parks 5.0
Slide 61: Lease Length and Occupancy
LEASE LENGTH AND OCCUPANCY Average Lease Length (yrs) Occupancy Rate (%) At 30 September 2014 To Expiry To Break Occupancy Occupancy (excl. developments) (underlying)1 Shopping parks 8.8 7.8 97.3 98.5 Shopping centres 9.2 8.1 95.5 97.4 Superstores 14.6 14.4 100.0 100.0 Department stores 26.1 22.8 10
Slide 62: Annualised Rent & Estimated Rental Value (ERV)
ANNUALISED RENT & ESTIMATED RENTAL VALUE (ERV) At 30 September 2014 Annualised Rents (Valuation Basis) £m1 ERV £m Average Rent (£psf) (excl. developments) Group JVs & Funds Total Total Contracted2,3 ERV2 Shopping parks 97 62 159 166 25.1 25.1 Shopping centres 44 59 103 116 28.6 30.5 Superstores 7 59
Slide 63: Rent Subject to Open Market Rent Review
RENT SUBJECT TO OPEN MARKET RENT REVIEW At 30 September 2014 (£m) 2015 2016 2017 2018 2019 2015-17 2015-19 For period to 31 March Shopping parks 11 18 16 21 25 45 91 Shopping centres 3 14 13 15 13 30 58 Superstores 11 17 6 4 8 34 46 Department stores 2 5 - - - 7 7 Leisure Retail & Leisure 27 54 35 4
Slide 64: Rent Subject to Lease Break or Expiry
RENT SUBJECT TO LEASE BREAK OR EXPIRY At 30 September 2014 (£m) 2015 2016 2017 2018 2019 2015-17 2015-19 For period to 31 March Shopping parks 5 8 6 11 12 19 42 Shopping centres 4 8 8 9 5 20 34 Superstores Department stores Leisure Retail & Leisure 9 16 14 20 17 39 76 West End - 4 8 8 9 12 29 City -
Slide 65: ERV Resetting to Market
ERV RESETTING TO MARKET At 30 September 2014 (£m) 2015 2016 2017 2018 2019 2015-17 2015-19 For period to 31 March ERV expiring – existing portfolio1 10 23 46 28 48 79 155 Speculative developments – - 2 6 - - 8 8 West End Speculative developments – City 1 - - - - 1 1 Speculative developments – Retail
Slide 66: Contracted Rental Increases (Cash Flow Basis)
CONTRACTED RENTAL INCREASES (CASH FLOW BASIS) At 30 September 2014 (£m) 2015 2016 2017 2018 2019 2015-17 2015-19 For period to 31 March Expiry of rent free periods 17 25 36 5 3 78 86 Fixed uplifts (EPRA basis) 1 - - 1 1 1 3 Fixed & minimum uplifts in 1 2 5 1 1 8 10 lieu of rental growth Total 19 27
Slide 67: Reshaping of Our Retail Portfolio – Buying and Selling Well
RESHAPING OF OUR RETAIL PORTFOLIO – BUYING AND SELLING WELL Inc. Drake Circus Virgin Active Ealing B’way SouthGate Bath HUT £m Portfolio Eden Walk HUT units units Surrey Quays (50%) Superstore 600 Equity Stake Av NIY: 6.1% 7.3% 6.3% 5.7% 5.7% 400 200 0 -200 -400 2011 2012 2013 2014 YTD 2015 Av NIY:
Slide 68: 2010 Development Programme
2010 DEVELOPMENT PROGRAMME At 30 September 2014 Sector BL Sq ft PC Current Cost to ERV Pre-let4 Resi End Share Calendar Value Complete Value % '000 Year £m £m1,2 £m3 £m £m5 10 - 30 Brock Street, Regents Place Mixed Use 100 503 Completed 423 1 20.6 20.5 118 10 Portman Square Offices 100 134 Completed
Slide 69: Recently Committed Development Programme
RECENTLY COMMITTED DEVELOPMENT PROGRAMME At 30 September 2014 Sector BL Sq ft PC Current Cost to ERV Pre-let4 Resi End Share Calendar Value Complete Value % '000 Year £m £m1,2 £m3 £m £m5 Milton Keynes, Kingston Centre Retail 50 21 Completed 5 - 0.3 0.3 - Old Market, Hereford Retail 100 305 Completed
Slide 70: Near-Term and Prospective Developments
NEAR-TERM AND PROSPECTIVE DEVELOPMENTS At 30 September 2014 BL Share Sq ft Current Value Cost to Status 2 complete % ‘000 £m £m Near-term Pipeline 4 Kingdom Street Offices 100 145 29 71 Consented 5 Kingdom Street1 Offices 100 240 58 113 Consented Blossom Street, Shoreditch Mixed Use 100 347 6 226 Pr
Slide 71: Residential Development Programme
RESIDENTIAL DEVELOPMENT PROGRAMME No. BL Sep 14 Cost Sales Sq Ft Market PC Date/ Share Value1 To complete2 Exchanged At 30 September 2014 '000 Units Status % £m £m £m Mixed-use: The Triton Building3 126 94 Completed 100 8 1 117 Marble Arch House 10 10 Completed 100 - - 19 Clarges Mayfair4 114 34 201
Slide 72: Significant Profit from Developments
SIGNIFICANT PROFIT FROM DEVELOPMENTS Estimated Sq Ft Total cost1 Profit m £m £m 2010 Development Programme2 2.7 1,007 812 Recently Committed Programme2 1.2 687 288 Near-Term Programme3 1.1 582 161 Recently Committed/Near-Term 2.3 1,269 449 Medium-Term Programme4 4.5 1 Total cost is original site val
Slide 73: Estimated Future Development Spend and Capitalised Interest
ESTIMATED FUTURE DEVELOPMENT SPEND AND CAPITALISED INTEREST PC Pre-let ERV Cost to complete £m (excluding notional interest) - 6 mths Calendar At 30 September 2014 £m Mar-15 Sep-15 Mar-16 Sep-16 Mar-17 Sep-17 Year Completed 2010 Programme 53.1 21 5 2 2 5 Broadgate 2015 19.2 21 6 8 Under construction
Slide 74: Estimated Future Development Rental Income
ESTIMATED FUTURE DEVELOPMENT RENTAL INCOME (ACCOUNTING BASIS) PC Gross Rental Income (Accounting basis)1 £m – 12 mths At 30 September 2014 Calendar Year Mar-15 Mar-16 Mar-17 Mar-18 Mar-19 Onsite developments 5 Broadgate 2015 Contracted - 15 18 18 18 Other Retail Developments Contracted 1 2 2 2 2 Tot
Slide 75: Yields and Yield Gap
YIELDS AND YIELD GAP Retail and London Office Yields 10.0 All Retail Central London Offices 8.0 NIY % 6.0 4.0 2.0 Dec-90 Dec-91 Dec-92 Dec-93 Dec-94 Dec-95 Dec-96 Dec-97 Dec-98 Dec-99 Dec-00 Dec-01 Dec-02 Dec-03 Dec-04 Dec-05 Dec-06 Dec-07 Dec-08 Dec-09 Dec-10 Dec-11 Dec-12 Dec-13 Source: IPD Proper
Slide 76: Central London Pipeline
CENTRAL LONDON PIPELINE Central London Pipeline Q3 2014 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 Completed U/C Pre-let Pipeline Pre-let U/C - Speculative Potential Speculative 10 year average new/refurb take-up 10 year average dev completi
Slide 77: West End Pipeline
WEST END PIPELINE West End Pipeline Q3 2014 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 Completed U/C Pre-let Pipeline Pre-let U/C - Speculative Potential Speculative 10 year average new/refurb take-up 10 year average dev completions Source: K
Slide 78: City Pipeline
CITY PIPELINE City Pipeline Q3 2014 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 Completed U/C Pre-let Pipeline Pre-let U/C - Speculative Potential Speculative 10 year average new/refurb take-up 10 year average dev completions Source: Knigh
Slide 79: 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 2015 West End Void Rate (Period end) City Void Rate (Period end) Source: CBRE 79
Slide 80: 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 West End 120 100 80 City 60 40 20 Actual Forecast 0 2011 2004 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2005 2006 2007 2008 2009 2010 2012 2
Slide 81: Regent's Place Campus
REGENT’S PLACE CAMPUS PLACES FOR EVERYONE DRUMMOND STREET 2 2 2 6 5 Fa Es EUSTON TOWER Puan Regent's Park SN. iy suuunitty Underground Busstop = Pedesrinncrosings (79 Taxipickupand drop off routes KEY SS osnabuigh Steet devel opment NEQ development s British Land
Slide 82: Paddington Central Campus
PADDINGTON CENTRAL CAMPUS Key: BL ownership Non BL ownership Multi-let offices Multi-let offices 268,000 sq ft 143,000 sq ft Development sites 200 residential units (355,000 sq ft) + sold on long leases; Crossrail box below retail at ground floor (80,000 sq ft) FOUR KINGDOM STREET FIVE KINGDOM STREE
Slide 83: Broadgate Campus
BROADGATE CAMPUS 1 1 Finsbury Avenue 2 2 Finsbury Avenue 3 3 Finsbury Avenue 15 4 1&2 Broadgate 16 5 3 Broadgate 14 6 100 Liverpool Street 7 8-12 Broadgate 18 17 13 8 The Broadgate Circle 2 9 5 Broadgate Under Construction 19 12 3 10 135 Bishopsgate 1 11 155 Bishopsgate 9 5 11 12 175 Bishopsgate 4 8
Slide 84: Blossom Street, Shoreditch
BLOSSOM STREET, SHOREDITCH S W Broadgate E N Blossom St, Shoreditch 84
Slide 85: Disclaimer
DISCLAIMER The information contained in this presentation has been extracted largely from the Half Year Results Announcement for the period ended 30 September 2014. This presentation may contain certain “forward-looking” statements. By their nature, forward-looking statements involve risk and uncert