British Land Company PLC · LSE:BLND
British Land — Shareholder Meeting (July 2017)
25 slides from British Land's shareholder meeting presentation, Jul 18, 2017
Slide 1: Annual General Meeting
Annual General Meeting 18 July 2017 www.britishland.com @BritishLandPLC
Slide 2: A successful year
A successful year John Gildersleeve Chairman
Slide 3: 2017 Highlights
2017 Highlights • Underlying profits up 7% to £390m SouthGate, Bath (+£27m) • Total sales of £1.5bn – 9% ahead of valuation • NAV down 0.4% to 915p – Valuation fall of 1.4% • 1.7m sq ft lettings and renewals across the business – 8% ahead of ERV 3
Slide 4: Creating a Resilient Business
Creating a Resilient Business Offices Increase in West End Fall in banks 35% as a % of Offices 61% 12% as a % of portfolio 7% March 2010 March 2017 March 2010 March 2017 Retail Increase in Multi-let Fall in superstores 60% as a % of retail 78% 15% as a % of portfolio 4% March 2010 March 2017 March 2
Slide 5: Our Strategy
Our Strategy 100 Liverpool Street, Paddington Central Mayflower, Basildon Broadgate Glasgow Fort Meadowhall Regent’s Place 5
Slide 6: Offices – Attracting Occupier and Investor Demand
Offices – Attracting Occupier and Investor Demand • The Leadenhall Building – Commitment in 2010 – Partner with Oxford Properties • Leasing complete in July 2016 – Setting record rents for the City • Sale in March 2017 – £1.15bn headline price (100%) – 24% ahead of September 2016 valuation – 25% IRR
Slide 7: Offices – Broadening the Offer
Offices – Broadening the Offer Our research 96% 98% 92% shows that… Value public transport Say communal working Want food and beverage links close to the office areas are important options nearby Paddington Central Survey of London Millennials 4 Kingdom Street • Office space 89% under offer PC • 5%
Slide 8: Offices – Leasing Activity
Offices – Leasing Activity 1m Sq ft lettings progressed • 1m sq ft of office lettings progressed 4 Kingdom Street – 279,000 sq ft of lettings, 1.4% ahead of ERV • Development of 7 Clarges Street 7 Clarges Street – 83% let; one floor to go – Rents in line with pre-referendum ERVs Yalding House 8
Slide 9: Retail – Reshaping the Portfolio
Retail – Reshaping the Portfolio >50% of portfolio turned • £881m of non-core retail disposals over in last 5 years – 3% above valuation – 4.3% average yield • Further £102m of superstores sold post year end Non-core multi-let assets Superstores Department stores Westgate, Wakefield Tesco JV Debenha
Slide 10: Retail – Enhancing Environments
Retail – Enhancing Environments Tollgate, Colchester Ealing Broadway • £6m spend • £12.5m refurb • ERV +14% • Over 30% re-let since acquisition • Footfall +8% • ERV +6% Meadowhall Glasgow Fort • £60m • £12m refurbishment investment • 37 lettings • 15 lettings • 7.6% ahead • First out of town of ERV
Slide 11: Retail – Capturing Incremental Demand
Retail – Capturing Incremental Demand 1.3m Sq ft leasing Occupiers extending stores New formats and locations activity Multi-let portfolio – lettings vs ERV 12 +11% +8% Lettings vs ERV % 10 8 1.0m 6 sq ft 0.9m 4 sq ft 2 0 2016 2017 11
Slide 12: Sustainability – Sector Leading Performance
Sustainability – Sector Leading Performance Customer Orientation Right Places Sector leader for Wellbeing Community 3 consecutive years • Targeting wellbeing to support productivity • Helping occupiers attract Young Readers Programme and retain talent • Connecting with communities and retailers • Ta
Slide 13: Looking Forward
Looking Forward Chris Grigg Chief Executive
Slide 14: Continuing Progress
Continuing Progress • 370,000 sq ft leasing 7.8% ahead of ERV 100 Liverpool Street in Q1 2018 • Progressed plans at 1 Triton Square • £35m refurbishment of 1 Finsbury Avenue starting next month; exclusive discussions with Mimecast on 78,000 sq ft • Under offer or advanced negotiations on over 870,00
Slide 15: £300m Capital Return
£300m Capital Return The Leadenhall Building • £300m rolling share buyback programme; decision reflects: – Less acquisition opportunities due to strength of investment markets – Share price weakness due to macro uncertainties – Our commitment to seeking the best returns for shareholders • No materia
Slide 16: Our Campuses – Broadgate
Our Campuses – Broadgate 100 Liverpool Street 1 Finsbury Avenue • 288,000 sq ft refurbishment • Includes 45,000 sq ft retail • £35 million investment • Committed Q1 18 135 Bishopsgate • Started on site in December 2016 • 325,000 sq ft refurbishment • 520,000 sq ft development • Includes 43,000 sq ft
Slide 17: Our Campuses – Broadgate
Our Campuses – Broadgate Broadgate Circle Pop up restaurant, 1 Finsbury Avenue 17
Slide 18: Storey – Flexible Workspace
Storey – Flexible Workspace 80,000 sq ft launching this summer… Appold Studios, Broadgate 2 Finsbury Avenue, Broadgate • 7,000 sq ft over 4 floors • Liverpool Street 2 minutes International House, Ealing Broadway • 20,000 sq ft • Ealing Broadway 6 minutes • 54,000 sq ft, including Kingfisher 25,000
Slide 19: Our Campuses – Paddington Central
Our Campuses – Paddington Central Pergola Floating restaurant 19
Slide 20: Our campuses – Regent’s Place
Our campuses – Regent’s Place 1 Triton Square • 310,000 sq ft office space • 125,000 sq ft additional space • Under offer for pre-let of entire office space • Received resolution to grant planning • £200m commitment 20
Slide 21: Retail Opportunities
Retail Opportunities Meadowhall Leisure Retail extensions Includes: • £48m consented leisure scheme at Drake Circus, Plymouth • Leisure extension at Serpentine Green, Peterborough, target planning submission autumn 2017 • 322,000 sq ft leisure extension • Planning decision expected summer 2017 Eden
Slide 22: Canada Water
Canada Water Proposed mix of uses • 3,500 new homes • 2m sq ft Workspace • 1m sq ft Retail & Leisure www.canadawatermasterplan.com 22
Slide 23: Canada Water – The Printworks
Canada Water – The Printworks Toyota Mulberry, London Fashion Week Triumph 23
Slide 24: Outlook
Outlook • Good year and continuing progress 1 Triton Square • Macro-uncertainty impacting share price – Property markets remain resilient – Buying back our shares represents an opportunity at this time • Remain well placed to progress attractive opportunities in our pipeline – Low leverage and long
Slide 25: Disclaimer
Disclaimer The information contained in this presentation has been extracted largely from the Full Year Results Announcement for the year ended 31 March 2017. This presentation may contain certain “forward-looking” statements. Such statements reflect current views on, among other things, our markets
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