British Land Company PLC · LSE:BLND

British Land — Q1 2006/7 Earnings Presentation

13 slides from British Land's earnings presentation, July 2006

  1. Slide 1: First Quarter 2006/7 Results Presentation

    First Quarter 2006/7 Results Presentation 3 months to 30 June 2006 We are real estate investors and create value by actively managing, financing and developing prime commercial property to provide the environment in which modern business can thrive.

  2. Slide 2: Highlights

    Highlights ƒ NAV per share1 1592p – up 7.1% in the quarter – Underlying pre-tax profit £73m up 33% on Q4, Headline pre-tax profit2 £522m ƒ Strong portfolio valuation increase – up 3.5% in the quarter – Comparable with IPD data for the quarter – Uplift led by London Offices and Retail Warehouse parks

  3. Slide 3: Net Asset Value per share up 7.1%

    Financial Performance Net Asset Value per share up 7.1% ƒ NAV rose to 1592p driven by strong June 2006 March 2006 portfolio revaluation NAV per share1 1,592p 1,486p ƒ NAV in Q2 2006/7 will be impacted by: NNNAV per share 1,236p 1,139p – Final 2005/6 dividend payment £61m, 11.8p per share Net assets1

  4. Slide 4: Underlying Profit before Tax £73m, Up 33% on Q4

    Financial Performance Underlying Profit before Tax £73m, Up 33% on Q4 ƒ Key movements in underlying profit 3 months to 3 months to Year ended – Sales programme over last 2 years June 20061 March 20061,2 March 20061,2 reduces rental income and financing £m £m £m costs (which also benefit from debt re

  5. Slide 5: Secure & Attractive Risk Profile

    Finance and Capital Structure Secure & Attractive Risk Profile ƒ Prudent financial ratios, especially given low income risk Key Financial Ratios1 – Leases average 15 yrs to first break June 2006 March 2006 – Vacancy rate remains low LTV – Group 40% 42% ƒ Gearing reduced to 44% LTV, LTV – inc. share

  6. Slide 6: Activity Levels Remain High

    Portfolio Reshaping & Pro-active Asset Management Activity Levels Remain High ƒ 3.5m sq ft London office development pipeline progressing well – on time and on budget – Drives value and earnings growth ƒ First £50 psf headline new letting in Broadgate this cycle – Confirms growing improvement in Cit

  7. Slide 7: £509m Disposals YTD, 17% above March Valuation

    Portfolio Reshaping £509m Disposals YTD, 17% above March Valuation Price £m BL Share £m Gain %1 Retail: Weston Favell Shopping Centre, Northampton2,5 122 61 22.0 5 ‘bulky goods’ Retail Warehouses 72 62 4.9 8 High Street Shops 41 40 6.6 235 163 11.2 Offices: Plumtree Court, EC43,5 120 43 18.8 51 East

  8. Slide 8: £820m Purchases YTD

    Portfolio Reshaping £820m Purchases YTD Price £m BL Share £m Retail: Other 50% share of BL Davidson JV4 267 267 9 B&Q Warehouses4 230 221 50% share of Puerto Venecia Retail Park, Zaragoza1 69 69 5 Retail Parks in Europe2,4 88 30 Giltbrook Retail Park, Nottingham4 35 35 689 622 Offices & Other: Other

  9. Slide 9: 3.5% Uplift in 3 months

    Valuation 3.5% Uplift in 3 months 3 months to end June 20061 All Retail 2.9% Retail Warehouses 3.6% Superstores 2.3% Shopping Centres 2.8% Department Stores 2.3% High Street 1.2% All Offices 4.8% City Offices 4.8% West End Offices 4.0% Business Parks & Provincial 0.3% Development 6.4% Portfolio yiel

  10. Slide 10: Market Conditions

    Markets Market Conditions PMA1 Forecast Total Property Returns Next 5 Years BL Weighting ƒ Real estate markets put in another robust June 2006 performance, again dominated by yield shift 34% Retail Warehouses (inc. superstores) ƒ It remains our forecast that this will Shopping Centres 18% slow marke

  11. Slide 11: British Land Portfolio Positioning

    British Land Portfolio Positioning Retail London Offices ƒ £12.9bn Retail portfolio (BL Share £9.2bn) ƒ £5.6bn Office portfolio (BL Share £5.5bn) 61% of total portfolio, 74% Out of Town 36% of total portfolio, 96% in London ƒ Retail property returns, while still strong, ƒ Office property returns str

  12. Slide 12: Well Placed for the "Post Yield Shift" Environment

    Summary Well Placed for the “Post Yield Shift” Environment Property Capabilities ƒ Distinctive leadership in the two ƒ Demonstrable added value from sectors most favoured for growth over disciplined portfolio reshaping & next 5 years pro-active asset management – London Offices – Out of Town “Open A

  13. Slide 13: Disclaimer

    Disclaimer The information contained in this presentation has been extracted largely from the First Quarter Results Announcement for the three months ended 30 June 2006. General property market data has been extracted from Jones Lang LaSalle, PMA, Verdict and other agents’ reports (please note that

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