British Land Company PLC · LSE:BLND
British Land — Q3 2005/6 Earnings Presentation
12 slides from British Land's earnings presentation, December 2005
Slide 1: Third Quarter 2005/6 Results Presentation
Third Quarter 2005/6 Results Presentation 3 months to 31 December 2005
Slide 2: Highlights
Highlights ! British Land’s first quarterly report – Only major UK property company to provide this information ! NAV per share1 up 10.7% to 1,390p (up 23.2% for 9 months) – Underlying pre-tax profits £71m (£173m for 9 months) – Headline pre-tax profits2 £672m (£1,449m for 9 months) ! Valuation incr
Slide 3: Net Asset Value up 10.7% (23.2% for 9 mths)
Financial Performance Net Asset Value up 10.7% (23.2% for 9 mths) Dec 2005 Sept 2005 March 2005 ! NAV rose to 1,390p driven by strong portfolio valuation and increased profits NAV per share1 1,390p 1,256p 1,128p NNNAV per share 1,046p 960p 904p ! NAV in Q4 2005/6 will be impacted by – Interim divide
Slide 4: Underlying Profit before Tax £71m (£173m for 9 mths)
Financial Performance Underlying Profit before Tax £71m (£173m for 9 mths) ! Underlying profit before tax £71m (£173m 3 months to 9 months to Year ended for 9 months) includes Dec 20051 Dec 20051 March 20051 – Songbird dividend £16m £m £m £m – Fund performance fees £5m (net) Net rent and related inc
Slide 5: Secure & Attractive Risk Profile
Financial Performance Secure & Attractive Risk Profile ! Prudent financial ratios, especially given Key Financial Ratios1 low income risk – Leases average 15 yrs to first break Dec 2005 Sept 2005 – Vacancy rate remains low LTV – Group 46% 51% ! Gearing fell as a result of asset sales LTV – inc. shar
Slide 6: Activity Levels High
Portfolio Reshaping & Pro-active Asset Management Activity Levels High ! Over £900m1 disposals since September, 10.8% in excess of valuation – Plantation Place & Residential currently in the market (plus other smaller assets) ! Tightened sectoral focus on Open A1 Out of Town Retail and Prime London
Slide 7: £925m Sales since Sept 2005, 10.8% above Valuation
Portfolio Reshaping £925m Sales since Sept 2005, 10.8% above Valuation Price £m BL Share £m Gain %1 CityPoint2,4 520 187 8.3% 5 Retail Warehouses3 410 311 1.0% 1 Fleet Place 120 120 21.0% Legal & General House, Kingswood4 74 74 30.4% Heathrow Gateway (Units 1 & 2) 66 66 16.6% 2-16 Baker Street 57 57
Slide 8: 4.6% Uplift in 3 months (9.7% for 9 months)
Valuation 4.6% Uplift in 3 months (9.7% for 9 months) 3 months1 9 months1 8.4% All Retail 3.9 Retail Warehouses 9.7%2 6.9 Superstores 2.5 8.1% Shopping Centres 6.2% 2.0 Department Stores 2.0 10.2% High Street 3.2 10.5% All Offices 5.8 12.1% City Offices 5.0 10.8% West End Offices 6.0 10.6% Business
Slide 9: Market Conditions
Markets Market Conditions ! Yield shift dominating investment returns, supported by fundamentals overall … however process seems likely to be in later phases – Parts of investment market overpricing property with income risk or without good growth prospects – Secondary yield compression versus prime
Slide 10: British Land Portfolio Positioning
British Land Portfolio Positioning Out of Town Retail London Offices ! £11.9bn Retail portfolio (BL Share £8.5bn) ! £6.0bn Office portfolio (BL Share £5.6bn) 59% of total portfolio, 73% Out of Town 38% of total portfolio, 95% in London ! Retail trading a challenge but far from ‘doom & gloom’ ! Londo
Slide 11: Delivering on our Promises
Summary Delivering on our Promises ! Intensified Portfolio Reshaping – Capital recycling to further improve risk adjusted returns ! Pro-active Asset Management – Sweating the assets for outperformance ! Management and Culture Renewal – Delivering the capability to outperform ! Investor Friendly Posi
Slide 12: Disclaimer
Disclaimer The information contained in this presentation has been extracted largely from the Third Quarter Results Announcement for the three months ended 31 December 2005. General property market data has been extracted from Jones Lang LaSalle, PMA, Verdict and other agents’ reports (please note t
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