British Land Company PLC · LSE:BLND
British Land — FY2003 Earnings Presentation
75 slides from British Land's earnings presentation, May 28, 2003
Slide 1: Results Presentation Year ended 31 March 2003
Results Presentation Year ended 31 March 2003 28 May 2003
Slide 2: Agenda
2 Agenda • Property Review Bob Bowden • Financial Review Graham Roberts • Conclusion John Ritblat 1
Slide 3: Property Review
UG pritish Land Property Review
Slide 4: Portfolio Valuation
4 Portfolio Valuation As at 31 March 2003 £m % Change %1 Offices: City 3,186.2 (6.4) West End 614.0 (0.9) Business parks and Provincial 176.6 (0.3) Development 572.9 (11.3) All Offices 4,549.7 47.2 (6.1) Retail: Shopping Centres 1,853.6 3.3 Supermarkets 1,267.9 11.0 Retail Warehouses 1,065.0 11.7 Sh
Slide 5: Performance Benchmarking
5 Performance Benchmarking Performance Relative to IPD Ungeared Total Returns British Land1 IPD2 IPD – Upper Quartile % pa % pa Threshold % pa 10 years to March 2003 12.7% 11.9% 12.3% Year to March 2003 6.8% 9.3% Year to March 2002 6.9% 6.7% 1 1 Includes our share of JV properties 2 IPD December Uni
Slide 6: Portfolio Analysis
6 Portfolio Analysis 48% : Retail 47% : Offices 38% : Out of Town 44% : Central London West End Offices Shopping Centres 6% 20% (Meadowhall 14%) City Offices 33% (Broadgate 29%) Supermarkets 13% Business Parks and Retail Warehouses Provincial Offices 11% 2% Other Office Shops 5% Developments 4% 6% 1
Slide 7: Investment Activity
7 Investment Activity Total BL Share Number1 Year ended 31 March 2003 £m £m Sales 612 346 181 Purchases 328 326 12 Total investment activity: £940m, representing 10% of the portfolio value 1 1 Excluding residential units
Slide 8: Sales
8 Sales Sales Gain over Valuation1 Year ended 31 March 2003 (100% of JVs) £m £m Leisure 240 16 Retail 165 15 Industrial and Distribution 118 12 Residential 53 4 Offices 36 1 Total 612 48 Sales of £612m exceeded March 2002 valuations by £48m (9%) 1 1 March 2002 valuation
Slide 9: Major Purchases
9 Major Purchases Year ended 31 March 2003 1 Appold Street, London EC2 City Office 201 Bishopsgate, London EC2 (other 50% interest) City Office development Meadowbank Retail Park, Edinburgh Out of Town retail park Cuckoo Bridge Retail Park, Dumfries Out of Town retail park Sainsbury’s, Purley Way, C
Slide 10: Completed Developments
10 Completed Developments Completed 983,000 sq ft: total cost of £98.2m and estimated rent of £10.5m pa Year ended 31 March 2003 Lettings Construction Rent2 Contracted (by rent) Cost £m £m Rent £m Centre West 80% let / under offer 70.76 6.51 4.22 Enfield (units 5-8)1 92% let 8.12 0.91 0.84 BL Gazele
Slide 11: Portfolio Asset Management
11 Portfolio Asset Management Rent Reviews: • 317 rent reviews: at rents some 34% above those passing Increase in rental income of £31m pa1 New lettings: • 84 new lettings and lease renewals: increase in rental income of £16m pa1 1 1 100% of JVs
Slide 12: Reversionary Income: Within 5 years
12 Reversionary Income: Within 5 years As at 31 March 2003 Annualised Reversion Reversionary (excluding developments) net rents £m £m net yield Offices: City 199.6 6.5 6.5% West End 27.3 16.6 7.2% Business parks and Provincial 15.2 1.0 9.2% All Offices 242.1 24.1 6.7% Retail: Shopping Centres 104.7
Slide 13: Committed Developments
13 Committed Developments March 2003 March 2002 Net area (100% of JVs) 957,350 sq ft 1,590,000 sq ft Construction cost £319.3m £415.5m Cost to complete £184.6m £336.0m Rent 1 £42.9m £54.2m Projects Pre-let Sq ft Construction Rent1 PC Date 2 As at 31 March 2003 (by rent) (100% of JVs) cost 1 Plantati
Slide 14: Income Profile
14 Income Profile Contracted Not Contracted March 2003 March 2002 £m £m £m £m Annualised net rents 545.8 - 545.81 524.6 Reversions, within 5 years 21.6 36.4 58.01 88.5 Committed developments 19.4 23.5 42.9 54.2 Total 586.8 59.9 646.7 667.3 Development prospects - 104.4 104.4 102.0 1 1 EBRD lease res
Slide 15: Long Lease Profile
15 Long Lease Profile Weighted average lease term, years To expiry To first break To first break As at 31 March 20031 (Mean) (Mean) (Median) Total portfolio 17.4 16.1 16.3 Offices: City 14.5 12.2 13.8 West End 12.9 10.7 8.9 Business parks and Provincial 12.7 8.2 5.8 All Offices 14.2 11.8 11.5 Retail
Slide 16: Strong Tenant Base
16 Strong Tenant Base Top 30 tenants represent c.61% of total rental income Top 30 tenants by rental income (as at 31 March 2003)1 1. J Sainsbury 11. Credit Lyonnais/Credit Agricole 21. Scottish & Newcastle 2. U B S 12. Deutsche Bank 22. ABN Amro 3. Tesco 13. A M P 23. Denton Wilde Sapte 4. Lehman B
Slide 17: Low Vacancy
17 Low Vacancy Vacancy rate As a % of total As at 31 March 20031 portfolio ERV Offices: City 1.4% 0.5% West End 10.7% 0.7% Business parks and Provincial 3.3% 0.1% All Offices 3.1% 1.3% Retail: Shopping Centres 3.8% 0.8% Supermarkets - - Retail Warehouses 2.8% 0.4% Shops 0.4% - All Retail 2.3% 1.2% O
Slide 18: Broadgate
18 Broadgate March 2003 March 2002 Valuation £2,784m £2,836m - Change % (6.0)% - Change % (excluding purchases) (6.9)% Initial yield 5.9% 5.5% Estimated rental value £psf £45.80 £55.00 Average office passing rent £psf £45.75 £45.40 Total passing rent pa £168.5m £155.9m Weighted average lease term: -
Slide 19: Broadgate Rent Reviews
19 Broadgate Rent Reviews • 5 reviews outstanding on 463,300 sq ft with an average passing rent of £42.14 psf Building Tenant Review Date Sq ft Passing rent psf 1 Finsbury Avenue UBS Sept 2002 262,400 £45.11 2 Finsbury Avenue UBS Sept 2002 100,500 £43.64 3 Finsbury Avenue Henderson June 2002 73,300
Slide 20: Broadgate Asset Management
20 Broadgate Asset Management • Acquisitions: – March 2003: 1 Appold Street let to Deutsche Bank for 15 yrs, without break – July 2002: Other 50% interest in 201 Bishopsgate development from Railtrack • ICAP subletting by Lehman Brothers at a rent of £48 psf until Jan 2017 • Improvement to Lehman Br
Slide 21: EBRD Lease Restructure: 367,000 sq ft
21 EBRD Lease Restructure: 367,000 sq ft • Agreement post year end to remove 2006 break and extend lease to Dec 2022 (previously 2016) – No breaks or put options – Rent maintained at £18,975,000 (£52.50 psf) with 5 yearly upward only rent reviews (next review Dec 2006) – 3 yrs 5 mths nil rent period
Slide 22: Broadgate Committed Income
22 Broadgate Committed Income % of income remaining at (to first break assuming no re-letting) 5 yrs 10 yrs 15 yrs Post EBRD 96.4% 78.4% 51.7% Pre EBRD 85.1% 67.5% 41.3% 180 160 140 120 100 £m pa 80 60 40 Post EBRD1 20 Pre EBRD 0 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
Slide 23: Regent's Place
23 Regent’s Place March 2003 March 2002 Valuation £505m £504m Equivalent yield 6.22% 6.73% Estimated rental value £psf £18.50- £43.50 £24.50-£48.50 Average office passing rent £psf £29.10 £26.20 Total passing rent pa £17.7m £18.0m Total rent pa (after rent free periods expire by Sept 03) £26.4m + We
Slide 24: Regent's Place
24 Regent’s Place • Rent reviews: – Settled 6 rent reviews with an uplift in rents of £0.5m pa – Settled 3 further rent reviews post year end with an uplift in rents of £2.0m pa – 3 rent review due on 103,000 sq ft in year to March 2004 with an average passing rent of £32.86 psf • New lettings: 43%
Slide 25: Major Shopping Centres
25 Major Shopping Centres Sq ft (retail) Meadowhall Shopping Centre, Sheffield 1,420,000 Eastgate Shopping Centre, Basildon 605,750 The Plaza Centre and Centre West, East Kilbride 579,900 The Peacocks Centre, Woking 320,000 Serpentine Green Shopping Centre, Peterborough 1 298,000 1 1 50% owned in jo
Slide 26: Meadowhall
26 Meadowhall March 2003 March 2002 Valuation £1,300m £1,280m Equivalent yield1 5.44% 5.64% Total estimated rental value pa 2 £74.7m £74.7m Total expected rent pa £69.5m £67.1m (on settlement of o/s rent reviews and lettings) Total passing rent pa £68.0m £62.4m Average passing rent (excl. M&S) £ psf
Slide 27: Meadowhall Visitor Numbers
27 Meadowhall Visitor Numbers Visitor numbers rose marginally in 2002 to 24.2m 2% increase in Jan to April 2003 on the equivalent period last year 1.2% 0.4% 3.6% 2.7% 1.2% 2.8% 12.8% 12.4% 2.7% 4.7% 10.5% 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 % Increase Year on Year to Dec (Cumulati
Slide 28: Meadowhall Average Party Spend
28 Meadowhall Average Party Spend 2002 2001 Increase Off Peak Survey (June) £101.92 £98.93 3.0% Peak Survey (Dec) £180.75 £146.40 23.5% £180.8 £145.8 £146.4 £138.3 £117.6 £126.1 £98.9 £101.9 £82.8 £85.9 £88.0 £77.0 1997 1998 1999 2000 2001 2002 June Off Peak Spend Survey Dec Peak Spend Survey 1
Slide 29: Meadowhall Zone A Rents
29 Meadowhall Zone A Rents 40 35.1 35 30 % of rental income 25 20 15 13.1 10.9 9.5 10 5.3 6.0 5.5 5 3.5 3.9 3.8 3.4 0 < £100 £100 - £200 - £225 - £250 - £275 - £300 - £325 - £350 - £375 - > £400 £200 £225 £250 £275 £300 £325 £350 £375 £400 Zone A Rent psf 1 As at 31 March 2003
Slide 30: Meadowhall Lettings: last 3 years
30 Meadowhall Lettings: last 3 years Tenant Sq ft Tenant Sq ft Bhs 76,950 Tucci 3,600 Allders 42,770 Ted Baker 3,530 Sports Soccer 34,330 West One 3,450 H&M 33,770 Quiksilver 3,370 Argos 14,470 Pumpkin Patch 3,190 Zara 12,860 Ice 2,970 Mothercare 11,320 Monserrat 2,900 Superdrug 10,430 Shoe Zone 2,7
Slide 31: Meadowhall Lettings: last 3 years
31 Meadowhall Lettings: last 3 years Year 2002/03 No. Sq ft Uplift in rent Total 28 108,750 £1.8m Fashion / Sports 16 98,360 £1.3m Year 2001/02 No. Sq ft Uplift in rent Total 26 97,690 £1.7m Fashion / Sports 7 18,090 £0.2m Year 2000/01 No. Sq ft Uplift in rent Total 15 161,330 £3.5m Fashion / Sports
Slide 32: Management Initiatives
32 Management Initiatives Continuing investment to benefit retailers and consumers: • Oasis food court refurbishment £8m: increasing seating capacity by c.350 seats to over 1,300 • ARC: on-site retailer warehousing and stock replenishment facilities • The Source: centre of retailing excellence • Com
Slide 33: Supermarkets
33 Supermarkets March 2003 March 2002 Number of supermarkets 93 91 Valuation £1,268m £1,091m Initial yield 6.3% 7.0% Reversionary yield 6.5% 7.0% Estimated rental value £ psf £8.50 - £22.50 + Average rent £ psf £18.61 £18.29 Weighted average lease term: - to expiry 22.5yrs 22.4yrs - to first break 2
Slide 34: Supermarkets
34 Supermarkets • 93 Supermarkets: Site area 411 acres; Floor area c. 5.0m sq ft – Largest owner of UK supermarkets other than the operators themselves • 42 rent reviews settled: record levels achieved on 2 reviews of > £23 psf: – £23.15 psf on rent review agreed at Sainsbury’s Chiswick – £23.11 psf
Slide 35: Foodstore Openings: all major operators
35 Foodstore Openings: all major operators Significant reduction in new out-of-town foodstore openings 70 60 50 Number of Stores 40 30 20 10 0 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 1 1 1 Based on openings Jan-Jun 2002 plus projected results for the second half of 2002 Source: CB Hil
Slide 36: Supermarket Extensions
36 Supermarket Extensions Completions Size of extension Initial rent increase Capital Investment Initial Yield (year to Mar) (sq ft ‘000) (£‘000 pa) (£‘000) 1994 14.8 £303 £3,055 9.9% 1996 4.8 £164 £2,028 8.1% 1997 11.5 £457 £6,193 7.4% 1998 103.8 £1,771 £22,946 7.7% 1999 97.0 £1,405 £17,022 8.3% 20
Slide 37: Retail Warehouses
37 Retail Warehouses March 2003 March 2002 Number of retail warehouses 69 73 Valuation £1,065m £882m Initial yield 5.8% 6.0% Reversionary yield 6.8% 6.7% Average estimated rental value £ psf £16.44 + Average rent £ psf £14.31 £13.63 Weighted average lease term: - to expiry 17.9yrs 18.0yrs - to first
Slide 38: Property Market Outlook
UG pritish Land Property Market Outlook
Slide 39: City Market: Supply
39 City Market: Supply Sq ft Vacancy rate Q1 2003 Q3 2002 Q1 2003 Q3 2002 Total stock 83.1m Total availability 9.0m 7.9m 10.8% 9.5% Grade A 3.6m 3.0m 4.3% 3.6% Grade B and C 5.4m 4.9m 6.5% 5.9% Highest vacancy rate March 1993: 15.6m 18.7% Average vacancy rate over last ten years 9.2% 1 Source: Jones
Slide 40: City Market: Development
40 City Market: Development Q1 2003 Q3 2002 Speculative development 4.1m sq ft 4.0m sq ft (Under Construction) Completion due Total sq ft Total sq ft 2002 - 0.6m 2003 3.1m 2.9m 2004 1.0m 0.5m 2005 - - Total 4.1m 4.0m 1 Source: Jones Lang LaSalle
Slide 41: City Market: Take Up
41 City Market: Take Up Total sq ft Grade A sq ft Grade A as % of Total Q2 2002 0.71m 0.31m 44% Q3 2002 0.80m 0.53m 66% Q4 2002 1.15m 0.91m 79% Q1 2003 0.87m 0.43m 49% Year to Q1 2003 3.53m 2.18m 62% Year to Q1 2002 4.44m Year to Q1 2001 9.88m Year to Q1 2000 5.74m Year to Q1 1999 5.54m Average tota
Slide 42: City Market: Demand
42 City Market: Demand Demand sq ft Q1 2003 Q4 2002 Q3 2002 Q2 2002 Active 4.0m 3.5m 4.9m 5.3m Potential 2.3m 4.4m 6.2m 6.5m Total 6.3m 7.9m 11.1m 11.8m 1 Source: Jones Lang LaSalle
Slide 43: Active Demand: Major Requirements Q1 2003
43 Active Demand: Major Requirements Q1 2003 Tenant Business Sector Sq ft Status IPC Media Software Houses & Data Processing 350,000 Active Norton Rose Legal 350,000 Active EBRD Foreign Bank 275,000 Signed 367,000 S J Berwin Legal 250,000 Active Bechtel Construction & Property Development 140,000 Ac
Slide 44: City Market: Supply / Demand
44 City Market: Supply / Demand Total Supply Take Up End of Year As at 31 March 2003 sq ft sq ft Vacancy rate Q1 2003 9.0m New completions Q2 2003 – Q4 2003 2.6m Estimated 2nd hand releases 0.7m Total vacancy 2003 12.3m 1.6m 12.6% Year 2004 Start 10.7m New completions 1.0m Estimated 2nd hand release
Slide 45: West End Market: Overview
45 West End Market: Overview Supply Sq ft Vacancy rate Q1 2003 7.0m 6.9% Speculative development (by end 2004) 1.9m 1.9% Take Up Sq ft Q1 2003 0.5m Under offer end Q1 2003 0.6m Total 2003 (to date) 1.1m Year to Q1 2003 2.4m Year to Q1 2002 2.9m Demand Q1 2003 Q3 2002 Active (sq ft) 2.9m 2.9m Potenti
Slide 46: Central London: Investment
46 Central London: Investment Investment Quarter 1 2003 £1.0bn Year to Q4 2002 £6.9bn Year to Q4 2001 £7.9bn Year to Q4 2000 £7.9bn Average turnover over last ten years £4.8bn • Low interest rates underpinning yields and investor enthusiasm for properties let to strong covenants with long term certa
Slide 47: Central London: Investment Q4 2002 & Q1 2003
47 Central London:Investment Q4 2002 & Q1 2003 Property Purchaser Lease expiry Price Yield Berkeley Square House National Bank of Abu Dhabi Multi let £130m 5.00% 3-8 Whitehall Place Merchant Place 17.5 yrs £47m 5.75% Winchester House Kan Am 15 yrs £120m 5.90% 151 Buckingham Palace Road Pinder Fry &
Slide 48: Out of Town Retailing
48 Out of Town Retailing Out of town continues to take an increasing share of retail spend (both food and non food) Sales Annual Change % of Retail Spend 1997 £51bn 9.7% 28.0% 1998 £55bn 7.6% 28.7% 1999 £59bn 7.1% 29.2% 2000 £63bn 6.6% 29.9% 2001 £68bn 8.3% 30.8% 2002 £72bn 6.4% 31.4% 2007 Forecast
Slide 49: Major Retail Applications
49 Major Retail Applications 1700 1600 1500 Number of applications 1400 1300 1200 1100 1000 900 800 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 1 Source: CB Hillier Parker
Slide 50: Financial Review
UG pritish Land Financial Review
Slide 51: Financial Highlights
51 Financial Highlights March 2003 March 2002 Up % NAV per share1 860p 803p 7.1 Net rents £513.3m £476.9m 7.6 Underlying profit before tax £145.7m £127.5m 14.3 Profit before tax £172.4m £171.3m 0.6 Dividend per share 13.4p 12.4p 8.1 1 1 Adjusted, diluted
Slide 52: Drivers of Value
52 Drivers of Value • Recurring long-term income stream – NPV of cash flows underpins valuation – Long-term income streams attractive to investors – Portfolio spread of low risk tenants in prime properties • Strong earnings growth – In the year as reversionary income realised – Looking forward: Inve
Slide 53: Low Risk Profile
53 Low Risk Profile • Balanced portfolio 48% retail, 47% office • Long leases 16 years to first break • Low tenant default risk 2% rated as high risk by Dun & Bradstreet1 • Low vacancy 2.7% • Limited development exposure 94% investment, 6% development £185m committed expenditure • Locked in interest
Slide 54: Total Return
54 Total Return NAV1 Shares Per Share £m m Pence As at 31 March 2002 4,791 596 803 Valuation movements 51 10 Retained profit 73 14 Share repurchases (453) (78) 34 Other 9 2 (1) As at 31 March 2003 4,471 520 860 Increase in NAV1 57.0 Dividend 13.4 Total Return 70.4 Total Return on NAV1 per share of 8
Slide 55: Valuation Movements
55 Valuation Movements Strong growth in retail more than offsets fall in Central London offices Valuation Movements NAV1 Impact per Share £m £m Pence Out of Town 257 In Town 80 Retail 337 65 City (217) West End (5) Development (73) Offices (295) (57) Other 9 2 Total 51 10 1.2% 1 1 Adjusted, diluted
Slide 56: Underlying Profit before Tax
56 Underlying Profit before Tax March 2003 March 2002 £m £m % Net rental income 513.3 476.9 7.6 Rent reviews and new lettings: Group 29.1 18.4 Net interest payable 326.4 317.9 2.7 Profit before tax 172.4 171.3 Gains from asset disposals 26.7 43.81 Underlying profit before tax 145.7 127.5 14.3 1 1 20
Slide 57: Tax Charge
57 Tax Charge Gross Tax £m £m Tax on profit for the year at 30% 172.4 51.7 Losses (revenue and capital) (22.0) Capital allowances (6.9) Other 9.6 Corporation tax charge 32.4 18.8% Deferred tax charge 0.7 Tax charge for March 2003 33.1 19.2% Year ended 31 March 19991 20001 20011 2002 2003 Effective t
Slide 58: Dividend: Progressive Growth
58 Dividend: Progressive Growth Dividend per share % increase March 2003 8.1% March 2002 7.8% March 2001 5.5% March 2000 5.8% March 1999 5.1% March 19981 8.9% March 1997 5.3% March 1996 5.3% March 1995 7.8% March 1994 7.6% Dividend payment of £65.9m is covered 2.1 times by profit after tax 1 1 Enhan
Slide 59: Share Repurchases
59 Share Repurchases Opportunistic repurchase of 13.1% of the diluted share capital including Convertible Bond redemption Average price of ordinary share buy-backs was 429p per share Earnings neutral: interest saving on redemption of Convertible Bond mitigates the additional interest cost of the sha
Slide 60: Financing
60 Financing Around 50% of the property value is financed by borrowings: Minimise cost of capital Minimise tax leakage Maximise equity returns 100 75 % Mortgage ratio 50 25 0 1999 2000 2001 2002 2003 Share of JVs Group 1 Year ended 31 March
Slide 61: Debt Profile: Group
61 Debt Profile: Group • Weighted average interest rate continues to decline - now 6.3% • 83% of net debt at fixed / capped interest rates • Interest cover has increased marginally to 1.6 times1 • Long-term debt with an average maturity of 18 years – Matches the income profile from long leases – Spr
Slide 62: Income Sensitivity Analysis
62 Income Sensitivity Analysis Income profile assuming no re-letting after first break or expiry % of income remaining at: Expiry First Break (from March 2003) : 5 years 93.8 % 90.2 % 10 years 81.2 % 72.4 % 15 years 63.9 % 56.8 % 1
Slide 63: Income Growth Potential
63 Income Growth Potential March 2003 % increase on £m pa annualised net rents Annualised net rents 545.8 Reversionary income, within 5 yrs1 58.0 10.6% Committed developments2 42.9 7.9% 646.7 18.5% Development prospects 104.4 19.1% Total 751.1 37.6% Some £41m, 41% of reversionary income and income f
Slide 64: Long-Term Income Profile
64 Long-Term Income Profile £58m of reversions to current market levels £147m of estimated income from committed and prospective developments Mar 03 Mar 02 800 700 600 500 £m 400 300 200 100 0 04 05 06 07 08 09 10 11 12 13 14 15 16 17 18 19 20 21 22 22 As at 31 March Development programme Reversiona
Slide 65: British Land Performance
65 British Land Performance Net Rental Income Underlying Profit Dividends per share NAV per share 1 before tax pence pence £m £m 150 14 900 525 800 125 12 450 700 10 600 375 100 8 500 300 75 400 225 6 50 300 150 4 200 25 2 75 100 0 0 0 0 99 00 01 02 03 99 00 01 02 03 99 00 01 02 03 99 00 01 02 03 Ye
Slide 66: Appendix
UG pritish Land Appendix
Slide 67: Development Programme: Summary
67 Development Programme: Summary Net Area Construction Cost to Rent 1 As at 31 March 2003 Sq ft Cost £m complete £m £m Completed projects Total 1.0m 115 - 13 BL Share 98 - 11 Committed projects Total 1.0m 319 185 43 BL Share 319 185 43 Development prospects Total 3.8m 793 761 114 BL Share 717 690 1
Slide 68: Development Prospects
68 Development Prospects March 2003 Net area (100%) 3,857,500 sq ft Construction cost £716.6m Cost to complete £689.9m Rent1 £104.4m Major Projects Planning Sector Sq ft 201 Bishopsgate, EC2 Detailed City office 747,800 51 Lime Street, EC3 Detailed City office 534,200 Ludgate West, EC4 Detailed City
Slide 69: Strong Tenant Covenants
69 Strong Tenant Covenants As at 31 March 2003 British Land TICCS Benchmark1 Dun & Bradstreet Stress Score % % Rental income rated: Negligible, low and low / medium risk 88.1 76.2 Medium / high risk 8.1 16.0 High risk 2.2 4.1 Unmatched 1.6 3.7 Total 100.0 100.0 1 1 Tenant Income Credit rating Covena
Slide 70: Broadgate, EC2
70 Broadgate, EC2 • 34 acre office, retail and leisure estate • Adjoins Liverpool Street Station • 3.9m sq ft flexible accommodation • 0.9m sq ft additional development potential • Strong covenants • 15.8 years1 average lease length to expiry 14.0 years1 to first break • Comprehensive estate managem
Slide 71: Regent's Place, NW1
71 Regent’s Place, NW1 • 10.4 acre estate in the West End • 1.3m sq ft office, retail, leisure and residential accommodation • Close to Euston mainline and 4 underground stations • 4.9 acres for development with potential to add a further c.1m sq ft • 16.9 years average lease length to expiry 14.1 y
Slide 72: Meadowhall Shopping Centre
72 Meadowhall Shopping Centre • One of only six super regional centres in UK • 1.42m sq ft gross lettable area on 167 acres: 291 retail and leisure units • Direct access to M1 motorway, on-site public transport interchange and 12,000 free car spaces • > 18 years weighted average lease length • Catch
Slide 73: Number of Shares
73 Number of Shares Basic Diluted m m Opening number of shares 518.4 596.5 (March 2002) Weighted average number of shares 512.5 554.0 (during the year) Closing number of shares 488.6 520.1 (March 2003) 1
Slide 74: Long-term Income Profile: Assumptions
74 Long-term Income Profile: Assumptions • Annualised net rents of £545.8 million at 31 March 2003 are shown to decrease on the first to occur of lease expiry or tenant’s break. Annualised net rents have been reduced by £18.975m pa to reflect the cash flow effect of EBRD’s 3 years and 5 months nil r
Slide 75: Source
75 Source The information has been extracted largely from the Preliminary Announcement for the year ended 31 March 2003. General property market data has been extracted from Jones Lang LaSalle and other agents reports. Figures include our share of joint ventures, unless otherwise stated. Adjusted di