Annual General Meeting 21 July 2015 www.britishland.com - - PowerPoint PPT Presentation

Annual General Meeting

21 July 2015

@britishlandplc www.britishland.com

Introduction

John Gild ersleev e Chairm an

3

Long term outperformance

Outperforming peers and the market on TSR

Total shareholder return, year to 31 March %

Note: Key peers include Land Securities, Derwent London, Great Portland Estates, Hammerson, Intu and SEGRO

0% 20% 40% 60% 80% 100% 120% 140% 1 year 3 years 5 years British Land Average (key peers) FTSE 100

4

2015 financial highlights

FY to 31 March 2015 Change NAV per Share 829p +20.5% Valuation £13.6bn +12.1% Total Property Return 18.4% Underlying Profit Before Tax £313m +5.4% Dividend per Share 27.7p +2.5% Total Accounting Return 24.5% 2-year total accounting return

48%

5

Exceptional leasing performance

• Strong leasing volumes
• Letting space on attractive terms
• Good quality and diverse mix of occupiers
• Strengthening rental trend; strong growth in Offices, notable

improvement in Retail

FY to 31 March 2015 Retail Office Total Lettings / renewals (000 sq ft) 1,137 810 1,947 Lettings / renewals under offer (000 sq ft) 348 152 500 Investment lettings / renewals vs ERV 8.7% 10.8% 10.0% Occupancy 98.5% 98.1% 98.3% LFL occupancy +30bps +730bps +310bps ERV growth 2.5% 8.0% 4.6%

Investment lettings/ renewals vs ERV

10%

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45 44 43 42 41 40 39 38 37 36 35 34 33 32 31 30 29 28 27 26 25 24 23 22 21 20 19 18 17 16 15 14 13 12 11 10 9 8 7 6 5 4 3 2 1 Reception and Restaurants

Office leasing – exceptional progress at Leadenhall

• Nearly 1m sq ft of lettings/renewals
• Office occupancy 98.1%
• Leadenhall c.90% let/under offer

Rental high

£90psf

Let prior to 2014/15 Let in 2014/15 Under offer In negotiations

7

Widening the appeal of Broadgate

• £20 million redevelopment of

Broadgate Circle completed

• 5 Broadgate completed
• Planning submitted on Blossom

Street, Shoreditch and 1 Finsbury Avenue

8

Facebook at Regent’s Place – a strong endorsement

• f the campus
• Facebook’s largest European hub
• Total space over 150,000 sq ft
• Rents nearly doubled

9

Making progress at Paddington Central

• On site at 4 Kingdom Street
• £210m acquisition of One Sheldon

Square

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Retail & Leisure leasing

• Over 1m sq ft lettings/renewals
• Further 348,000 sq ft under offer
• Almost full occupancy at 98.5%

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Operational metrics remain strong in retail

Retailer same store sales

+3.7%

Average dwell time

+4.5 %

Source: BL consumer surveys Source: Springboard

Footfall +1.9 %

ahead of market by

290 bps

Source: Springboard and Experian

Average LFL spend

+16 % annualised

Source: BL consumer surveys

Occupancy remaining

high at 98 .5 %

Source: BL

+5%

Source: BL consumer surveys, CACI

affluent

shopper visits

12

Investment driving performance – Meadowhall

• £3m upgrade attracting premium

new brands

• £50m refurbishment starting

September

13

Investment driving performance – Ealing Broadway

• Acquired two adjoining properties
• Phase 1 refurbishment completed
• Submitted planning for wider

refurbishment

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£2.4bn investment activity – broadly balanced

£1.3bn disposals £960m acquisitions + £210m development capex

£210m 1 Sheldon Square £169m HUT shopping parks £135m Surrey Quays Leisure Park £733m Tesco Property Exchange acquired 3 shopping parks & 3 shopping centres sold 21 standalone foodstores £123m additional superstore sales £245m further non core retail disposals £137m office disposals £370m residential sales

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Conclusion

• Portfolio + 38% in 5 years
• Gearing reduced to 36.5%
• Increased London focus
• Offices weighted towards West End
• Concentrated in 3 campuses
• Retail focused on large, multi-let

assets, matching the way people shop

• Well positioned for long term trends

Introduction

Chris Grigg Chief Executive

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Macro trends driving our strategy

Globalisation Transforming impact

• f technology

Importance of infrastructure Population growth and urbanisation Sustainability

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Creating great environments

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Growing in London and the south east

2010 2015

London & South East Other

London investment

Ealing Broadway The Leadenhall Building Paddington Central

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Marble Arch House Clarges, Mayfair The Leadenhall Building Broadgate Blossom Street, Shoreditch Regents Place Paddington Central Ealing Broadway

Investing around infrastructure

Assets close to Crossrail stations

£3bn

Crossrail route

10 Portman Square

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125,0 0 0

shopper surveys completed Retailer sales data

• n nearly

90 %

• f multi-let assets

Data from over

9 m pa

hits to our websites Understanding local demographics and catchments Accurate footfall data from

all

• f our multi-let

assets Cross-referencing Wi-fi data, social media, asset website traffic

Customer Orientation – understanding our customers

22

Significant development pipeline

• Highly successful development programme since 2010
• Completed projects generated over £1bn of profit; an IRR of over 30%
• Expected to generate £500m with around £330m still to come

Sq Ft m Total cost £m Estimated Profit £m Completed developments (since 2010) 3.2 1,120 1,100 Committed/Near-Term Projects 2.4 1,500 500

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Developments under construction

4 Kingdom Street Clarges Mayfair Retail extensions

Glasgow Fort, retail extension Whiteley, leisure extension

The Hempel

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Near term pipeline

100 Liverpool Street Drake Circus, Plymouth 5 Kingdom Street Blossom Street, Shoreditch

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Canada Water Masterplan

One of London’s largest regeneration opportunities

Up to

1m sq ft

Retail, Leisure, Culture & Education Up to

4 m sq ft

residential Up to

2 m sq ft

• f employment

Can create a new environm ent in tune with how people will live, work and shop Well developed local infrastructure London Opportunity area

Canada Water

46 acres

Site controlled by British Land with the London Borough

• f Southwark

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Capital efficiency – strength of debt metrics

Proportionally Consolidated 31 Mar 2014 31 Mar 2015 Loan to Value (LTV) 40% 35% Average Interest Rate 4.1% 3.8% Interest Cover 2.5x 2.6x Average Maturity of Drawn Debt (years) 8.7 8.7 Group 31 Mar 2014 31 Mar 2015 Loan to Value (LTV) 29% 28% Available undrawn facilities £2.0bn £1.2bn Average Interest Rate 3.5% 3.3% Interest Cover 3.2x 3.0x

27

Outlook

• Outlook broadly in line with first half
• Yields have tightened further
• Some political uncertainty remains
• Expect interest rates and inflation to remain low
• Rental growth has strengthened
• Strong growth in offices
• Clearer growth trends in retail

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Summary

Meadowhall £50million refurbishment

Q&A

30

Disclaimer

The information contained in this presentation has been extracted largely from the Full Year Results Announcement for the period ended 31 March 2015. This presentation may contain certain “forward-looking” statements. By their nature, forward-looking statements involve risk and uncertainty because they relate to future events and circumstances. Actual outcomes and results may differ materially from any outcomes or results expressed or implied by such forward-looking

• statements. Any forward-looking statements made by or on behalf of British Land speak only as of the date they are made and no representation or warranty is given in

relation to them, including as to their completeness or accuracy or the basis on which they were prepared. British Land does not undertake to update forward-looking statements to reflect any changes in British Land’s expectations with regard thereto or any changes in events, conditions or circumstances on which any such statement is based. This presentation is made only to investment professionals as defined in Article 19 of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005 ('the FP Order'). The content of this presentation has not been approved by a person authorised under the Financial Services and Markets Act 2000 (“FSMA”). Accordingly, this presentation may only be communicated in the UK with the benefit of an exemption set out in the FP Order. An investment professional includes: (i) a person who is authorised or exempt under FSMA; and (ii) a person who invests, or can reasonably be expected to invest, on a professional basis for the purposes of a business carried on by him; and (iii) a government, local authority (whether in the United Kingdom or elsewhere) or an international organisation; and (iv) any director, officer, executive or employee of any such person when acting in that capacity. This presentation is published solely for information purposes. This presentation does not constitute an offer to sell or the solicitation of an offer to subscribe for or buy any security, nor a solicitation of any vote or approval in any jurisdiction, nor shall there be any sale, issuance or transfer of the securities referred to in this presentation in any jurisdiction in contravention of applicable law. No representation or warranty, either express or implied, is provided in relation to the accuracy, completeness or reliability of the information contained herein. The distribution of this presentation in jurisdictions other than the UK may be restricted by law and therefore any persons who are subject to the laws of any jurisdiction

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English law and the City Code and the information disclosed may not be the same as that which would have been disclosed if this presentation had been prepared in accordance with the laws of jurisdictions outside the UK. All opinions expressed in this presentation are subject to change without notice and may differ from opinions expressed elsewhere.