Full Year Results Presentation Year ended 31 March 2019 - - PowerPoint PPT Presentation

@BritishLandPLC www.britishland.com #BLFY2019 $BLND

Full Year Results Presentation

Year ended 31 March 2019

Introduction

Chris Grigg, CEO

2

• Clear strategy focused on 3 core areas

– Our London campuses; – A smaller retail portfolio – Residential

• Good progress across the business

– £1.5bn dry or off-strategy assets sold – 2.7m sq ft leasing activity; occupancy of 97% – Developments 76% let or under offer – Creating future opportunities e.g. 1-2 Broadgate

• Focusing on the customer

– Rolling out Storey and Storey Club – Progressing our Smart places strategy

• Managing our capital well

– £125m further share buyback – Proposed increase to next year’s dividend of 3%

We have delivered good operational and strategic progress

3

1-2 Broadgate

4

Finance Review

Simon Carter, CFO

5

Well positioned in uncertain markets

Strong Balance Sheet Future value accretive

• pportunities

Low speculative development risk

• Loan to value 28%
• £1.4bn of new financing
• Current schemes 76% pre-let or under offer
• Speculative exposure 2.3%
• Near and medium term development opportunities
• £125m share buyback programme

6

Headlines

Financial Year to 31 March 2018 2019 Change % Underlying earnings per share (p) 37.4 34.9 (6.7%) Underlying Profit (£m) 380 340 (10.5%) Dividend per share (p) 30.08 31.00 3.0% Valuation performance 2.2% (4.8%) EPRA net asset value per share (p) 967 905 (6.4%) Loan to value (LTV) 28.4% 28.1% Total accounting return 8.9% (3.3%)

7

37.4p 34.9p 35.3p (1.4p) 1.5p (1.7p) 1.2p (2.1p)

2018 Prior period surrender premia 2018 excl. surrender Impact of CVAs and Admins LfL rental growth Net divestment and development Share buyback 2019

Underlying earnings per share

Pence

1 Like for like rental growth percentages are stated excluding the impact of surrender premia, CVAs and administrations

Offices 4.9% Retail 0.8% Total1 2.4%

8

• 10

20 30 40 50 60 70 Committed Near Term

De-risked developments providing future returns

Pence per share

1 2 3 4 5 FY20 FY21 FY22 FY23

4.5p annual EPS accretion once fully let

£m ERV

76%

Completed & committed developments pre-let or under offer Pre-let

• r under
• ffer

9

Income statement

Financial Year to 31 March 2018 2019 Change % Net rental income (£m) 576 532 (7.6%) Net finance costs (£m) (128) (121) (5.5%) Administrative expenses (£m) (83) (81) (2.4%) Fees & other income (£m) 15 10 (33.3%) Underlying Profit (£m) 380 340 (10.5%) Underlying earnings per share (p) 37.4 34.9 (6.7%) Dividend per share (p) 30.08 31.00 3.0%

FY20 dividend proposed increase 3%

10

FY to March 2019 Valuation £m Movement £m Movement % Yield movement Bps ERV movement % NEY % Weighting % Offices 6,308 80 1.1 +2 1.4 4.4 51 Retail 5,577 (752) (11.1) +37 (3.8) 5.6 45 Residential 128 (6) (4.4) n/a n/a n/a 1 Canada Water 303 (2) (0.8) n/a n/a n/a 3 Total 12,316 (680) (4.8) +19 (1.6) 5.0 100

• Of which

Standing Investments 11,309 (794) (6.0) +19 (1.6) 5.0 92

• Of which Development

1,007 114 10.8 n/a n/a n/a 8

Valuation performance

11

• 500

1,000 1,500 More than 0% 0% to -5%

• 5% to -10%
• 10% to -15%
• 15% to -20%

More than -20% Local Multi-let Regional Multi-let Superstores Leisure Solus Department Stores

March ’19 Valuations (£’m)

Retail Valuation Movements

82% of rent lost through CVA/admin is at assets seeing more than 10% valuation decline

% Valuation Movement in FY19

12

CVAs and Administrations over last 2 years

Since 1 April 2017 Contracted rent reduction £’m Number of Stores % of CVAs Number of stores in portfolio c.2,000 Stores exposed to CVA/admins 132 Stores sold 0.9 5 Administrations 7.1 46 CVAs 81 Unaffected

• 32

40% Reduced Rents 5.1 34 42% Closures 3.8 15 18% Total Rent Impact 16.9 0.0 1.0 2.0 3.0 4.0 5.0 6.0 7.0

Q1 FY18 Q2 FY18 Q3 FY18 Q4 FY18 Q1 FY19 Q2 FY19 Q3 FY19 Q4 FY19

Admins - stores closing CVAs - stores closing CVAs - reduced rents

Annualised contracted rent impact by Quarter (£’m)

Rent on stores closing: £10.9m

£6.5m rent is let or in negotiations

13

Retail Operational Performance

New Lettings & Renewals Rent Reviews Occupancy Floor Area (Sq ft ‘000) Net Effective Rent (£’m) Vs ERV Floor Area (Sq ft ‘000) Net Effective Rent (£’m) Vs Previous Rent Total Retail 1,587 25.8 +0.3% 1,795 38.2 +2.3% 96.7% Regional multi-let 720 13.1 +4.0% 358 10.2 4.7% 97.0% Local multi-let 670 11.8

• 3.4%

641 14.6 2.0% 95.3% British Land FY19 (yoy) Outperformance vs Benchmark (bps) Footfall

• 0.9%

+230 Retailer LFL Sales

• 1.5%

+160 Retailer Total Sales

• 0.5%

+160

14

967p 905p

(68p) 35p (30p) (7p) 10p Mar 18 Valuation performance Underlying Profit Dividends Financing activity Share buyback Other Mar 19

EPRA net asset value

(2p)

15

Strength of debt metrics

Proportionally Consolidated 31 Mar 2018 31 Mar 2019 Loan to value (LTV) 28.4% 28.1% Weighted Average Interest Rate 2.8% 2.9% Interest Cover 4.0x 3.8x Available Undrawn Facilities £1.2bn £1.5bn Weighted Average Drawn Debt Maturity 8.6 8.1 Senior unsecured credit rating (Fitch) A A

£1.4bn of new finance since March 2018

16

Well positioned in uncertain markets

Strong Balance Sheet Future value accretive

• pportunities

Low speculative development risk

• Loan to value 28%
• £1.4bn of new financing
• Current schemes 76% pre-let or under offer
• Speculative exposure 2.3%
• Near and medium term development opportunities
• £125m share buyback programme

18

Update on Strategy

Chris Grigg, CEO

18

Good progress against our clear strategy

Mixed Use places to work, shop and live

Offices

• Focused on London campuses

Retail

• Smaller more focused portfolio

Residential

• Principally build to rent
• 1FA completed and planning

achieved on 1-2 Broadgate

• Continued progress across

developments now 76% pre-let

• Further roll out of Storey

including Storey Club

• £646m assets sold or under
• ffer since April 2018
• Investing in assets which fit
• ur strategy
• Sales of 25 units completed at

Clarges; exchanged or under

• ffer on another 5; 4 remaining
• Opportunities across our

London portfolio, including 3,000 homes at Canada Water

Customer Focus + Operational Expertise

• Taking market share

– Our activity accounts for 8% of the central London leasing market with 2.5% of the stock

• Delivering higher rents

– Most recent lettings at £80psf at Broadgate – vs £71psf for City prime rents and £49psf at Broadgate in 2015 – Attracting a wider mix of occupier

• Improving leasing velocity

– 100 Liverpool Street 63% let on the office space 11 months ahead of PC – 4 Kingdom Street 80% fully let within a week of PC in 2017

How mixed use delivers value

19

135 Bishopsgate, Broadgate

1.1m sq ft Office leasing 479,000 sq ft in negotiations

1 2 3

20

How our campuses deliver mixed use

Vibrant Local Neighbourhoods

Located in some of London’s most exciting areas

Right Mix of Uses

Complementary businesses located nearby Balanced range of retail Old Street, Spitalfields, Shoreditch, City Knowledge Quarter, Fitzrovia, Regent’s Park Regeneration ahead of Crossrail

Flexibility Connectivity & Scale

> 100 acres across Central London World class office space Entertainment, events & activities which enliven space and provide

• pportunities to socialise & network

Space which promotes wellbeing including gyms, places to run, cycle racks Dining opportunities including restaurants, bars, cafés Modern, divisible office space which can flex to occupier needs Range of office space in terms of size, specification and location

21

Flexible Affordable Attractive to skilled employees Well connected Aligned to their brand Tech enabled Close to complementary businesses Well connected Safe and promotes wellbeing Located in vibrant neighbourhoods Sustainable and eco friendly Close to retail, leisure and dining options Supported by excellent facilities and services Has a range of workspace including collaborative and quiet

Why mixed use?

Occupiers

want space which is…

Employees

want space which is… World class, sustainable and smart buildings Attractive, vibrant and safe public space

+

• Thoughtful design

– Large but divisible floorplates providing flexibility – 90,000 sq ft retail and dining – 20,000 sq ft outdoor terraces

• Working with a range of stakeholders

– City planners, TfL, local communities – Minimal disruption to campus occupiers

• Excellent leasing results

– Achieving rents 10%+ ahead of initial expectations – Only upper floors remaining with good demand

• Sustainability integral to our plans

– Saving 11,000 tonnes of embodied carbon by retaining half the original structure, using efficient design and low carbon materials

The expertise to deliver 100 Liverpool Street

22

100 Liverpool Street

A long term focus on Sustainability

• Strong track record of environmental improvement

– Carbon intensity 64% lower vs. 2009 – Energy intensity 44% lower vs. 2009 – 2 megawatts capacity from renewables

• Deep focus on skills, opportunity and community

– 1,232 people supported into employment since 2012 – 40,000 children supported through reading programme since 2011 – 81% of British Land employees engaged in volunteering

• Strong performance recognised externally

A- score 4* and Green Star 92nd percentile 96th percentile

Southwark young carers art project

GivX 25 Award Winner 2018

23

• £646m asset disposals since April 2018

– Range of assets, including solus retail and leisure, superstores and smaller multi-lets – Only progressed sales which delivered value

• £193.5m superstores sales

– Sold above book – 6 standalone superstores remaining, representing 1% of portfolio – Exposure reduced from 11% in 2014

• Further £1.5bn sales over 5 years

– Opportunistic and patient approach – Strategic, not forced sellers – Focusing on sales which deliver value and aligned to strategy

A smaller, more focused Retail business

24

0.0 0.2 0.4 0.6 0.8 1.0 1.2 1.4 Superstores Multi-let retail Department stores Leisure

£m £2.9bn asset sales since April 2014

• Continued progress at Clarges

– Completed on 23 apartments in FY19 – Total of 25 units completed and 2 further exchanged, generating £383m sales – Under offer on a further 3 units, leaving 4 remaining representing sales of £34m – Total profits of £200m, IRR of 18.5%

• Build to Rent

– Focused on organic growth – Canada Water Masterplan envisages 3,000 homes – Further opportunities in our portfolio

Residential

25

Clarges, Mayfair

Progressing our vision for Canada Water

120 public consultations Attended by more than 5,000 people Providing 12,000 comments

26

Outlook

27

• London: unconventional cycle continuing

– Brexit constraining office supply; pipeline likely to shift out – Occupier demand for the best quality space to remain good – Yields attractive vs other European cities

• Retail: likely to remain challenging

– Signs some short term operational pressures are easing on our portfolio – Structural issues remain – Good demand for solus assets to continue

1 Triton Square, Regent’s Place

28

Building a London focused, increasingly mixed use business

March 2010 Current

Indicative business split 5+ years

66% 45% 30-35%

Retail Campus-focused Offices Storey Residential

33% 51% 5% 10% 50-55%

• London focused: over 70% of group
• Smaller, more focused Retail
• Meaningful Residential exposure
• Right balance of flexible and core workspace

Appendices

30

Customer Orientation

We use our insight into customers’ needs and identify major long term trends to create environments in tune with changing lifestyles

Right Places

We design engaging, sustainable places which bring people together through the right mix of occupiers, services and activities

Capital Efficiency

We allocate our capital, manage our finances and partner with like-minded organisations to deliver sustainable long-term value

Expert People

We employ expert people and work with specialist partners to create insight, develop skills and build capability

Areas of focus to deliver our strategy

British Land is a mixed use commercial property company focused on London offices and high quality retail

Places People Prefer

By managing our business to be resilient, sustainable and responsive, we create enduring demand for our properties and value for our stakeholders

31

83% of our Retail & Office assets are within our managed environments

Figures shown on a proportionally consolidated basis including the group's share of properties in Joint Ventures & Funds

Offices

£6.3bn

80% of Office assets are at our campuses Retail & Leisure

£5.6bn

85% of Retail assets are multi-let

Further £0.3bn at Canada Water and £0.1bn of standalone Residential assets

63%

London Weighting

32

Multi-let Retail assets

Southgate, Bath Broughton, Chester1 Fort Kinnaird, Edinburgh1 Glasgow Fort1

• St. Stephen’s, Hull

Eden Walk, Kingston Giltbrook, Nottingham Serpentine Green, Peterborough Drake Circus, Plymouth Meadowhall, Sheffield New Mersey, Speke1 Teesside, Stockton Mayflower, Basildon Inverness1 Nugent, Orpington Cornerhouse, Barrow The Woolwich Estate Botley Road, Oxford Hindpool, Barrow Beaumont, Leicester Deepdale, Preston1 Woodfields, Bury Valentine, Lincoln1 Queens, Stafford1 Forster Square, Bradford Mostyn Champneys, Llandudno1 Orbital, Swindon Tollgate, Colchester

• St. Peter’s, Mansfield

Royal Victoria Place, Tunbridge Wells Prospect Place, Dartford1 Kingston Centre, Milton Keynes Crown Point, Denton Whiteley, Fareham Wheatley, Doncaster Ealing Broadway Lion, Woking Crown Wharf, Walsall1 Old Market, Hereford Studlands, Newmarket Harlech, Newport Elk Mill, Oldham

1 Assets held within Hercules Unit Trust or its subsidiaries and joint ventures

Regional Local

Attracting visitors from a wide catchment for a planned trip Fitting into the daily life of local communities

33

Our Retail portfolio is well positioned to meet both consumer and retailer demands

Source: CACI Retail Footprint 2017, BL Insight team Note that population reach includes Broadgate

BL local centres BL regional centres BL asset catchments

Potential to reach

60%

• f the population

Annual footfall of

305m

Average rent to sales ratio

9%

Occupancy cost ratio

14%

34

Physical store openings significantly boost retailers’

• nline presence

Postal area share of retailer website visits

Indexed vs. start of store opening period

Note: Based on a sample of 29 retailers opening at British Land centres between April 2014 and December 2016. For retailers with fewer than 30 UK stores, there is a 84% boost to online presence, based on a sample of 7 retailers Source: British Land/Connexity Hitwise

80 90 100 110 120 130 140 150 160 170

• 20 weeks
• 15
• 10
• 5

Store Opening 5 10 15 +20 weeks

+52%

35

BL footfall performance vs benchmark

British Land UK Market (ShopperTrak UK National Index) Jan-10 = 100

75 80 85 90 95 100 105 110 115

Jul-14 Jan-11 Jan-10 Jan-16 Jul-10 Jul-11 Jan-12 Jul-13 Jul-12 Jan-13 Jul-16 Jan-18 Jan-15 Jan-17 Jul-17 Jul-15 Jul-18 Jan-19 Jan-14

Tyco (formerly Experian) Index BL Index

Outperformance for 12m to March 2019

+230bps

36

Major property holdings

At 31 March 2019 BL Share % Sq ft 000’s Rent (100%) £m pa1,4 Occupancy Rate %2,4 Lease Length yrs3,4 1 Broadgate 50 4,133 138 96.7 5.5 2 Regent's Place 100 1,740 77 98.7 5.6 3 Paddington Central 100 958 45 97.2 5.4 4 Meadowhall, Sheffield 50 1,500 88 98.9 5.9 5 Glasgow Fort 78 510 22 97.0 6.0 6 Ealing Broadway 100 540 15 90.8 4.6 7 Drake's Circus, Plymouth 100 1,082 19 96.3 6.9 8 Teesside, Stockton 100 569 16 94.3 4.7 9 Sainsbury’s Superstores5 51 1,353 31 100.0 8.3 10 10 Portman Square 100 134 10 100.0 6.5

1 Annualised EPRA contracted rent including 100% of Joint Ventures & Funds 2 Including accommodation under offer or subject to asset management 3 Weighted average to first break 4 Excludes committed and near term developments 5 Comprises stand-alone stores. Following post year end sale of 12 Sainsbury's superstores, BL share %

increases to 55%, sq ft reduces to 325,000, rent reduces to £8m and lease length increases to 9.9yrs

37

Broadgate Campus

2 FA & 3 FA

• 2FA & 3FA - Innovation cluster inc. 50k sq ft
• f Storey space
• 3FA – UBS surrendered lease in Jan 2018. ‘Light

touch’ refurb completed, now 100% let/under offer

• Current size: 189k sq ft
• Potential size: 563k sq ft

1 FA

• Pre-let 113k sq ft to Mimecast, 30k sq ft to Product

Madness, 11k sq ft to Everyman Cinemas

• 73k sq ft to be Storey space
• Size: 287k sq ft
• PC’d Q1 2019

135 Bishopsgate

• 90% let or under offer
• Pre-let 123k sq ft to TP ICAP,

148k sq ft to McCann, 42k sq ft to Eataly

• Size: 335k sq ft
• Completion: Q3 2019

1-2 Broadgate

• Current size: 330k sq ft
• Potential size: 531k sq ft
• Planning permission secured March 2019

100 Liverpool Street

• Pre-let 160k sq ft to SMBCE, 71k sq ft to Milbank

LLP, 40k sq ft to Peel Hunt

• Current size: 380k sq ft
• Redevelopment: 521k sq ft
• Completion: Q1 2020

65% of Broadgate committed developments pre-let or under offer

38

Paddington Central Campus

39

Regent’s Place Campus

40

Top 20 occupiers & occupier split by industry

As at 31 March 2019 % of Contracted Rent

Tesco1 4.8 Sainsbury's2 3.7 Debenhams3 3.4 Government 3.0 Next 2.6 Kingfisher 2.3 Facebook3 2.0 Dentsu Aegis4 2.0 Alliance Boots 1.9 Visa 1.7 M&S 1.7 Dixons Carphone 1.5 Arcadia 1.5 Herbert Smith Freehills 1.4 Gazprom 1.1 TJX (TK Maxx) 1.1 JD Sports Fashion 1.1 Vodafone 1.1 SportsDirect 1.0 Microsoft 1.0

Occupier Split by Industry (%)

1 Includes £3.4m at Surrey Quays Shopping Centre 2 Reduces to 1.8% following post year end sale of 12 stores 3 Debenhams reduces to 1.8% and Facebook increases to 3.6% following post year end letting of 10 Brock Street to Facebook 4 Represents current occupation of 10 Triton Street covering 118,000 sq ft of space. Taking into account their pre-let of 310,000 sq ft at 1 Triton Square, % of contracted rent would rise to 5.5%. As part of this new letting, Dentsu Aegis have an

• ption to return their existing space at 10 Triton Street in 2021. If this option is exercised, there is an adjustment to the rent free period in respect of the letting at 1 Triton Square to compensate British Land.

Banks & Financial services 11% General Retail 15% Fashion & Beauty 19% Food / Leisure 10% Professional & Corporate 11% TMT 10% Grocery & Convenience 9% Home & DIY 6% Other 9%

Banks 3% Asset Management 5% Other Financial 3%

41

Capital Activity

Since 1 April 2018 Offices £m Retail £m Residential £m Canada Water £m Total £m Purchases 129 110

• 239

Sales1 (500) (646) (359)

• (1,505)

Development Spend 212 31 11 21 275 Capital Spend 20 33

• 53

Net Investment (139) (472) (348) 21 (938) Gross Investment 861 820 370 21 2,072

On a proportionally consolidated basis including the Group’s share of joint ventures and funds

1 Includes £45m Richmond Homebase which exchanged in FY18 and completed in the current year, the sale of 12 Sainsbury’s superstores which exchanged post year end for £194m and Clarges residential

sales of £359m, of which £253m exchanged prior to FY19 and completed in the year and £18m of which exchanged post year end

42

(2,000) (1,600) (1,200) (800) (400)

• 400

800 1,200 1,600

Capital Activity

(£47m) 2015 2016 £45m 2017 (£502m) Net Spend1 £m Sales Capital Investment Net Spend Purchases

1 Previous periods have been restated to exclude transactions exchanged in the period that have now completed

(£739m) 2018 (£938m) 2019

Gross investment activity since April 2018

£2.1bn

43

Purchases

Since 1 April 2018 Sector Price (100%) £m Price (BL Share) £m Annual Passing Rent £m1 Completed Royal Victoria Place, Tunbridge Wells Retail 92 92 3 184 – 192 Drummond Street Offices 38 38 1 158 – 164 Bishopsgate Offices 36 36 2 6 – 8 Eldon Street Offices 27 14 1 Hercules Unit Trust units Retail 18 18 1 37 Sun Street Offices 9 9

• Exchanged

Orsman Road, Haggerston Offices 32 32

• Total

252 239 8

1 BL share of annualised rent topped up for rent frees

44

Sales (1 of 2)

1 Exchanged during the year ended 31 March 2018, completed in the period 2 BL share of annualised rent topped up for rent frees

Since 1 April 2018 Sector Price (100%) £m Price (BL Share) £m Annual Passing Rent £m2 Completed 5 Broadgate Offices 1,000 500 18 Portfolio of Spirit Pubs Retail 123 123 11 Cheltenham Gallagher Retail Park Retail 73 28 1 Clapham Junction Debenhams Retail 48 48 2 Richmond Homebase1 Retail 45 45 1 Leeds Westside Retail Park Retail 39 39 2 Glasgow B&Q Retail 28 28 2 Bath Homebase Retail 27 27 1 Bracknell David Lloyd Retail 25 25 2 Altrincham Sainsburys Retail 24 12 1 Bath Weston Lock Retail Park Retail 18 18 1

45

Sales (2 of 2)

1 £253m of which exchanged prior to FY19 and completed in the period 2 £18m of which exchanged post year end 3 BL share of annualised rent topped up for rent frees 4 Exchanged post year end in April 2019

Since 1 April 2018 Sector Price (100%) £m Price (BL Share) £m Annual Passing Rent £m3 Completed Southampton David Lloyd Retail 15 15 1 Harrow Homebase Retail 14 14 1 Brentwood Virgin Active Retail 12 12 1 Hamilton David Lloyd Retail 10 10 1 Northallerton Sainsburys Retail 7 3

• Lancaster Castle View

Retail 5 5

• Clarges, Mayfair1

Residential 335 335

• Aldgate Phase 1

Residential 1

• Exchanged

Portfolio of Sainsbury’s stores4 Retail 429 194 12 Clarges2 Residential 24 24

• Total

2,302 1,505 58

46

Clarges Residential Unit Sales

Number of units £m Completed in FY18 2 24 Completed in FY19 23 335 Total Completed 25 359 Exchanged (of which 1 exchanged post year end) 2 24 Total Sold 27 383 Units under offer 3 35 Units remaining 4 34 Total 34 452

47

FY20 income statement guidance

• Net Rents

– Relative to FY19 reported net rental income of £532m: – FY19 net divestment activity expected to reduce net rents by £20m. Transactions exchanged post year end are expected to reduce rents by a further £10m. – Recently completed and committed developments expected to add £9m to net rents, partially offset by the impact of lease expiries of £5m on properties in the near term pipeline – The like for like impact of CVAs and Admins, net of leasing up affected space, is expected to be less than 3% of retail rents in FY20

• Administrative costs

– Expense expected to increase due to future share schemes returning to vesting position

• Financing

– Weighted average interest rate 2.9%

• n gross debt of £3.9bn

– Undrawn facilities of £1.5bn as at 31 March, with commitment fees of c.30bps p.a.

• Dividend

– Proposed dividend for the year ending 31 March 2020 is 31.9 pence per share

• Other

– Capital activity has the potential to significantly impact

• profits. For example, selling/acquiring £100m of assets

would reduce/increase profits by c.£4m and LTV by c.0.6%. As we expect to continue making retail sales, this is based on an average retail portfolio topped up NIY

• f 5.3% and marginal cost of debt of 1.4%

– Based on current share price levels, £200m share buyback is expected to add 0.5p to EPS and £125m share buyback is expected to add 0.2p to EPS in FY20

48

Illustrative future income profile breakdown (cash basis)

For the year to 31 March 2020 2021 2022 2023 2024 Total Accounting Basis At 31 March 2019 £m £m £m £m £m £m Current Passing Rent 547 545 Contracted uplifts4 35 4 2

• 1

42 Letting of Committed Developments1

• 21

22

• 43

37 Contracted rent 632 582 Sales exchanged post year end (10)

• (10)

(10) Letting of completed developments 4

• 4

3 Lease Expiries – Development pipeline (6) (2)

• (1)

(9) (9) Letting of Committed Developments1 – speculative

• 11

1

• 12

9 Letting of Near Term Developments1

• 20

19 39 32 RPI Linked Leases2 1 1 1 1 1 5 5 Reversion3 3 5 7 3 (2) 16 13 Vacancies 20 20 17 709 642 Letting of Medium Term Developments (excl. Canada Water & Eden Walk) 84 64

On a proportionally consolidated basis including the Group’s share of joint ventures and funds. Figures based on valuation rent and include assumptions on outstanding rent review settlements

1 Assumes lettings contracted are rent producing at practical completion 2 Assumed at 2.75% per annum 3 Includes reversion on expiries and open market rent reviews within 5 years 4 Includes £7m agreement for lease rents

49

Gross rental income1

Accounting Basis £m 12 months to 31 March 2019 Annualised as at 31 March 2019 Group JVs & Funds Total Group JVs & Funds Total West End 141

• 141

140

• 140

City 9 70 79 7 68 75 Offices 150 70 220 147 68 215 Regional 57 90 147 57 86 143 Local 98 24 122 90 23 113 Multi-let 155 114 269 147 109 256 Department Stores and Leisure 38

• 38

24

• 24

Superstores 5 16 21 5 15 20 Solus and Other 14

• 14

12

• 12

Retail 212 130 342 188 124 312 Residential2 5

• 5

4

• 4

Canada Water 9

• 9

8

• 8

Total 376 200 576 347 192 539

On a proportionally consolidated basis including the group's share of joint ventures and funds

1 Gross rental income differs from annualised rents due to accounting adjustments for fixed & minimum contracted rental uplifts and lease incentives 2 Standalone residential

50

Underlying Profit Bridge

380 340 (13) (6) (20) (14) 15 1 (3)

FY18 Prior period surrender premia Net divestment (including share buyback) Developments Impact of CVAs and administrations Like-for-like rental growth

• exc. CVAs and

administrations Financing activity Other FY19

£m

51

Administrative expenses

Financial Year to 31 March 2018 £m 2019 £m Personnel costs 52 53 Share scheme costs

• (3)

Other administrative expenses 36 37 Total 88 87 Capitalised costs (5) (6) Total administrative expenses 83 81

On a proportionally consolidated basis including the Group's share of Joint ventures and Funds and excluding non

• controlling interests in the Group's subsidiaries.

52

Operating costs metric

Financial Year to 31 March 2018 £m 2019 £m Property operating expenses 37 44 Administrative expenses 83 81 Net fees and other income (15) (10) Ground rent costs and operating expenses de facto included in rents (2) (9) EPRA Costs (including direct vacancy costs) 103 106 Gross rental income 613 576 Ground rent costs and operating expenses de facto included in rents (2) (9) Gross Rental Income (EPRA basis) 611 567 EPRA Cost Ratio (including direct vacancy costs) 16.9% 18.7%

On a proportionally consolidated basis including the Group's share of Joint ventures and Funds and excluding non

• controlling interests in the Group's subsidiaries.

53

Reconciliation of Underlying Profit

Financial Year to 31 March 2018 £m 2019 £m IFRS profit / (loss) before tax 501 (318) Net valuation (profit)/loss (254) 654 Profit on disposal of investment and trading properties (29) (89) Capital financing costs 176 64 Non-controlling interests (14) 29 Underlying Profit and EPRA Earnings 380 340

On a proportionally consolidated basis including the Group's share of Joint ventures and Funds and excluding non

• controlling interests in the Group's subsidiaries.

54

Number of shares

As at 31 March 2018 (m) 31 March 2019 (m) IFRS Basic Weighted average1 1,013 971 IFRS Diluted Weighted average2 1,016 974 Underlying/EPRA diluted Weighted average3 1,016 974 Year/Period end4 989 956

1 For use in IFRS basic earnings per share 2 For use in IFRS diluted earnings per share 3 For use in Underlying/EPRA diluted earnings per share 4 For use in EPRA NAV per share and EPRA NNNAV per share

55

EPRA balance sheet

31 March 18 Group JVs & Funds 31 March 19 Total properties (£m) 13,716 8,711 3,605 12,316 Adjusted net debt (£m) (3,973) (2,559) (962) (3,521) Other net liabilities (£m) (183) (72) (74) (146) EPRA Net Assets (£m) 9,560 6,080 2,569 8,649 Loan to value (LTV)1 28.4% 22.2% 28.1% Weighted average interest rate 2.8% 2.2% 2.9% Interest cover 4.0x 4.9x 3.8x Weighted average maturity of drawn debt (years) 8.6 7.3 8.1

1 Group LTV based on Group Properties and net investment in Joint ventures & Funds, and Group net debt.

56

Reconciliation of EPRA NAV & NNNAV

31 March 18 31 March 19 £m Pence £m pence IFRS Net Assets 9,506 967 8,689 916 Deferred tax arising on revaluation movements 5 6 Mark to market on derivatives and related debt adjustments 137 113 Adjust to fully diluted on exercise of share options 32 24 Surplus on trading properties 134 29 Non-controlling interests (254) (212) EPRA NAV 9,560 967 8,649 905 Deferred tax arising on revaluation movements (31) (12) Mark to market of debt and derivatives (485) (476) EPRA NNNAV 9,044 914 8,161 854

57

Gross and net debt reconciliation

As at 31 March 2019 Group £m JVs & Funds £m Less non- controlling interests £m Total £m Gross Debt (principal) (2,881) (1,126) 112 (3,895) IFRS adjustments: Issue costs and premia 12 2

• 14

Fair value hedge adjustments (170)

• (170)

Other items 8 (2) 1 7 IFRS gross debt (3,031) (1,126) 113 (4,044) Market value of derivatives 24 (8) 1 17 Cash 242 160 (9) 393 IFRS net debt (2,765) (974) 105 (3,634) Adjustments: Remove market value of derivatives (17) Remove fair value hedges 138 Other adjustments (8) Adjusted net debt (3,521)

58

Loan to value (LTV)

As at 31 March 2018 £m Valuation movement Acquisitions Capital spend Disposals Share buyback Other As at 31 March 2019 £m Total properties 13,716 (654) 232 292 (1,266) (4) 12,316 Other investments 172 (21) 151 LTV assets 13,888 (654) 232 292 (1,266) (25) 12,467 Adjusted net debt 3,973 233 267 (935) 204 (221) 3,521 Other (30) 11 (19) LTV liabilities 3,943 233 267 (935) 204 (210) 3,502 LTV 28.4% 1.5% 1.3% 1.4% (4.6%) 1.6% (1.5%) 28.1%

On a proportionally consolidated basis including the Group's share of Joint ventures and Funds and excluding non-controlling interests in the Group's subsidiaries.

59

Debt metrics

Proportionally Consolidated 31 Mar 2018 31 Mar 2019 Loan to value (LTV) 28.4% 28.1% Weighted average interest rate 2.8% 2.9% Interest cover 4.0x 3.8x Weighted average maturity of drawn debt 8.6yrs 8.1yrs Group 31 Mar 2018 31 Mar 2019 Loan to value (LTV) 22.1% 22.2% Available undrawn facilities £1.2bn £1.5bn Weighted average interest rate 2.0% 2.2% Interest cover 5.3x 4.9x Senior unsecured credit rating (Fitch) A A

60

200 400 600 800 1,000 1,200 1,400

2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036 2037 2038 2039 2040

Debt maturity (£m)

£m

Bank RCFs Undrawn (Unsecured) Bank RCFs Drawn (Unsecured) Debenture & loan notes (Secured) Convertible Bond (Unsecured) Sterling Bond (Unsecured) US Private Placements (Unsecured) Funds – Bank drawn (Secured) JVs – Securitisations (Secured)

61

Debt financing – diverse profile

• £1.4bn of new finance raised

– Amended and extended our largest syndicated RCF at £735m – Issued new £231m USPP

• Repaid £223m (£111m BL%) of secured

Broadgate bonds, removing properties from the securitisation and increasing

• ur flexibility
• LTV reduced from 28.4% to 28.1%
• Weighted average interest rate of 2.9%
• Average drawn debt term 8.1 years
• Senior unsecured credit rating of ‘A’ (Fitch)

£3.9bn Drawn Debt1 (31 March 2019)

1 Proportionally consolidated. HUT’s debt shown at our share (£0.4bn) within JV & Funds.

£0.3bn £0.8bn £0.4bn £0.3bn £0.6bn £1.2bn £0.4bn

Bank RCFs Drawn (Unsecured) US Private Placements (Unsecured) Convertible Bond (Unsecured) Sterling Bond (Unsecured) Debentures & loan notes (Secured) JVs Securitisations (Secured) JV & Funds Loans (Secured)

62

Valuation movement – Offices

Financial Year to March 2019 Valuation £m Change £m Change %1 Yield movement bps2 ERV movement %2 West End 4,066 28 0.7 +3 1.4 City 2,242 52 1.9

• 1.3

Offices 6,308 80 1.1 +2 1.4

Campuses represent 80% of the Offices portfolio

1 Valuation movement during the period (after taking account of capital expenditure) of properties held at the balance sheet date, including developments (classified by end use), purchases and sales 2 Excluding committed developments, assets held for development and residential assets

63

Valuation movement – Retail

Financial Year to March 2019 Valuation £m Change £m Change %1 Yield movement bps2 ERV movement %2 Regional 2,764 (329) (10.6) +36 (2.2) Local 1,973 (359) (14.9) +48 (6.2) Multi-let 4,737 (688) (12.5) +41 (4.0) Other 840 (64) (5.0) +17 (2.7) Retail 5,577 (752) (11.1) +37 (3.8)

Multi-let assets represent 85% of the Retail portfolio

1 Valuation movement during the period (after taking account of capital expenditure) of properties held at the balance sheet date, including developments (classified by end use), purchases and sales 2 Excluding committed developments, assets held for development and residential assets

64

Portfolio valuation by sector

At 31 March 2019 Group JVs & Funds Total Change %1 £m £m £m H1 H2 FY West End 4,066

• 4,066

0.3 0.3 0.7 City 230 2,012 2,242 1.4 0.7 1.9 Offices 4,296 2,012 6,308 0.7 0.5 1.1 Regional 997 1,767 2,764 (4.0) (6.9) (10.6) Local 1,613 360 1,973 (6.8) (8.8) (14.9) Multi-let 2,610 2,127 4,737 (5.2) (7.8) (12.5) Department Stores and Leisure 323

• 323

(3.1) (3.8) (6.5) Superstores 88 244 332 (0.7) (2.9) (3.6) Solus and Other 185

• 185

(0.2) (4.6) (3.7) Retail 3,206 2,371 5,577 (4.5) (7.0) (11.1) Residential2 109 19 128 (3.1) (1.5) (4.4) Canada Water 303

• 303

0.3 (1.0) (0.8) Total 7,914 4,402 12,316 (1.9) (3.2) (4.8) Standing Investments 7,334 3,975 11,309 (2.5) (3.9) (6.0) Developments 580 427 1,007 7.2 4.6 10.8

On a proportionally consolidated basis including the group's share of joint ventures and funds

1 Valuation movement during the period (after taking account of capital expenditure) of properties held at the balance sheet date, including developments (classified by end use), purchases and sales 2 Standalone residential

65

Portfolio net yields1,2

At 31 March 2019 EPRA net initial yield % EPRA topped up net initial yield %

3

Overall topped up net initial yield %

4

Net equivalent yield % Net reversionary yield % West End 3.6 4.0 4.0 4.3 4.8 City 4.0 4.4 4.4 4.7 5.3 Offices 3.8 4.1 4.2 4.4 5.0 Regional 4.8 5.0 5.1 5.3 5.4 Local 5.4 5.6 5.7 5.9 5.8 Multi-let 5.1 5.2 5.3 5.6 5.6 Department Stores and Leisure 6.1 6.1 7.2 5.6 5.0 Superstores 5.6 5.6 5.6 5.3 5.2 Solus and Other 6.0 6.2 6.2 5.6 4.6 Retail 5.2 5.3 5.5 5.6 5.5 Canada Water 3.2 3.2 3.2 3.9 4.0 Total 4.5 4.7 4.8 5.0 5.2

On a proportionally consolidated basis including the group's share of joint ventures and funds

1 Including notional purchaser's costs 2 Excluding committed developments, assets held for development and residential assets 3 Including rent contracted from expiry of rent-free periods and fixed uplifts not in lieu of rental growth 4 Including fixed/minimum uplifts (excluded from EPRA definition)

66

Portfolio yield & ERV movements1

At 31 March 2019 NEY

3

ERV Growth %

2

NEY Yield Movement

3 bps

% H1 H2 FY H1 H2 FY

West End 4.3 0.2 1.1 1.4

• 2

3 City4 4.7 0.1 1.2 1.3 1

• Offices

4.4 0.2 1.1 1.4 1 1 2 Regional 5.3 (0.8) (1.4) (2.2) 9 27 36 Local 5.9 (2.5) (3.8) (6.2) 20 27 48 Multi-let 5.6 (1.6) (2.5) (4.0) 14 27 41 Department Stores and Leisure 5.6 (2.8) (1.9) (4.7) 33 (18) 34 Superstores 5.3 (0.2) (0.5) (0.7) (1) (6) (8) Solus and Other 5.6 (0.1) (2.1) (2.2) (13) 44 31 Retail 5.6 (1.5) (2.3) (3.8) 14 36 37 Canada Water4 3.9 0.4 0.1 0.4 (4)

• Total

5.0 (0.8) (0.8) (1.6) 7 19 19

On a proportionally consolidated basis including the group's share of joint ventures and funds

1 Excluding developments under construction, assets held for development and residential assets 2 As calculated by IPD 3 Including notional purchaser’s costs 4 Reflects standing investment only

67

Retail Portfolio Valuation – previous classification

At 31 March 2019 Valuation Change %1 ERV movement %2 NEY Yield Movement bps £m H1 H2 FY H1 H2 FY H1 H2 FY

Shopping parks 2,593 (5.5) (8.5) (13.2) (2.1) (2.6) (4.6) 13 35 47 Shopping centres 2,115 (3.7) (6.3) (9.8) (0.1) (2.0) (2.1) 13 20 34 Superstores 332 (0.7) (2.9) (3.6) (0.2) (0.5) (0.7) (1) (6) (8) Department stores 70 (24.9) (20.3) (40.1) (18.4) (8.8) (25.6) 119 (60) 147 High Street 169 (1.1) (7.8) (8.8) (0.2) (3.7) (3.9) (2) 7 5 Leisure 298 2.0

• 1.9

0.0 0.0 0.0 2 1 13 Retail & Leisure 5,577 (4.5) (7.0) (11.1) (1.5) (2.3) (3.8) 14 36 37

On a proportionally consolidated basis including the group's share of joint ventures and funds

1 Valuation movement during the period (after taking account of capital expenditure) of properties held at the balance sheet date, including developments (classified by end use),

purchases and sales

2 As calculated by IPD

68

Portfolio weighting

At 31 March 2019 2018 % 2019 % 2019 £m West End 31.0 33.0 4,066 City 17.9 18.2 2,242 Offices 48.9 51.2 6,308 Regional 22.1 22.4 2,764 Local 16.7 16.1 1,973 Multi-let 38.8 38.5 4,737 Department Stores and Leisure 4.3 2.6 323 Superstores 2.6 2.7 332 Solus and Other 2.3 1.5 185 Retail 48.0 45.3 5,577 Residential1 1.0 1.0 128 Canada Water 2.1 2.5 303 Total 100.0 100.0 12,316 Of which London 59% 61% 8,127

On a proportionally consolidated basis including the group's share of joint ventures and funds

1 Standalone residential

69

Lease length and occupancy

At 31 March 2019 Average Lease Length (yrs) Occupancy Rate (%)1 To Expiry To Break EPRA Occupancy Occupancy2,3 West End 6.8 5.7 97.2 98.3 City 6.6 5.7 93.2 96.6 Offices 6.7 5.7 95.8 97.7 Regional 7.2 6.0 95.7 97.0 Local 6.9 5.6 94.7 95.3 Multi-let 7.0 5.8 95.3 96.2 Department Stores and Leisure 15.3 15.3 100.0 100.0 Superstores 12.2 12.2 100.0 100.0 Solus and Other 11.1 10.5 100.0 100.0 Retail 8.0 7.0 95.9 96.7 Canada Water 5.6 5.5 98.5 98.7 Total 7.4 6.4 95.9 97.2

1 Space allocated to Storey is shown as occupied where there is a Storey tenant in place otherwise it is shown as vacant. Total occupancy would rise from 97.2% to 97.5% if Storey space were assumed to be

fully let.

2 Including accommodation under offer or subject to asset management 3 Where occupiers have entered administration or CVA but are still liable for rates, these are treated as occupied. Reflecting units currently occupied but expected to become vacant, then the occupancy rate for

Retail would reduce from 96.7% to 96.1%, and total occupancy would reduce from 97.2% to 96.9%

70

Annualised rent & estimated rental value (ERV)

At 31 March 2019 Annualised Rents (Valuation Basis) £m1 ERV £m Average Rent (£psf) Group JVs & Funds Total Total Contracted2 ERV West End3 139

• 139

184 58.6 67.2 City3 7 67 74 101 48.7 57.6 Offices3 146 67 213 285 54.8 63.5 Regional 58 90 148 166 31.0 33.6 Local 96 24 120 130 23.4 24.5 Multi-let 154 114 268 296 27.0 28.9 Department Stores and Leisure 21

• 21

17 15.9 12.9 Superstores 5 15 20 18 22.2 20.6 Solus and Other 12

• 12

9 20.2 15.5 Retail 192 129 321 340 25.3 26.1 Residential4 5

• 5

4 44.8 37.9 Canada Water5 8

• 8

10 17.9 21.8 Total 351 196 547 639 31.3 34.7

On a proportionally consolidated basis including the group's share of joint ventures and funds, excluding committed, near term and assets held for development

1 Gross rents plus, where rent reviews are outstanding, any increases to ERV (as determined by the Group’s external valuers), less any ground rents payable under head leases, excludes contracted rent subject

to rent free and future uplift

2 Annualised rent, plus rent subject to rent free 3 £psf metrics shown for office space only 4 Standalone residential 5 Reflects standing investment only

71

Rent subject to open market rent review

For the year to 31 March 2020 2021 2022 2023 2024 2020–22 2020–24 At 31 March 2019 £m £m £m £m £m £m £m West End 4 15 10 9 13 29 51 City 13 4 9

• 26

26 Offices 17 19 19 9 13 55 77 Regional 9 19 13 11 9 41 61 Local 11 12 5 17 5 28 50 Multi-let 20 31 18 28 14 69 111 Department Stores and Leisure

• 7
• 7

Superstores 8 5

• 2

3 13 18 Solus and Other

• Retail

28 36 18 30 24 82 136 Residential

• 1
• 1

1 Canada Water1

• Total

45 55 38 39 37 138 214

On a proportionally consolidated basis including the group's share of joint ventures and funds excluding committed, near term and assets held for development

1 Reflects standing investment only

72

Rent subject to lease break or expiry

For the year to 31 March 2020 2021 2022 2023 2024 2020-22 2020-24 At 31 March 2019 £m £m £m £m £m £m £m West End 4 19 22 26 15 45 86 City 15 10 2 3 13 27 43 Offices 19 29 24 29 28 72 129 Regional 17 10 12 19 20 39 78 Local 15 10 13 12 20 38 70 Multi-let 32 20 25 31 40 77 148 Department Stores and Leisure

• Superstores
• 2
• 2

Solus and Other 1

• 1

1 Retail 33 20 25 33 40 78 151 Residential

• 3
• 3

3 Canada Water1 1 1

• 1

2 2 5 Total 53 53 49 63 70 155 288 % of contracted rent 9.1% 9.1% 8.3% 10.9% 12.0% 26.5% 49.4%

On a proportionally consolidated basis including the group's share of joint ventures and funds excluding committed, near term and assets held for development

1 Reflects standing investment only

73

Contracted rental increases (cash flow basis)

For the year to 31 March 2020 2021 2022 2023 2024 2020-22 2020-24 At 31 March 2019 £m £m £m £m £m £m £m Expiry of rent free periods 27 3 1

• 31

31 Fixed uplifts (EPRA basis)

• 1
• 1

1 Fixed & minimum uplifts 1 1

• 1

2 3 Total 28 4 2

• 1

34 35

On a proportionally consolidated basis including the group's share of joint ventures and funds excluding committed, near term and assets held for development

74

Total Property Return (as calculated by IPD)

12 months to 31 March 2019 Offices Retail Total % British Land IPD British Land IPD British Land IPD Capital Return 1.4 2.0 (11.4) (7.3) (5.0) 0.1 – ERV Growth 1.4 1.2 (3.8) (3.3) (1.6) 0.2 – Yield Movement1 2 bps (10 bps) 37 bps 26 bps 19 bps (1 bps) Income Return 3.4 3.8 5.3 5.0 4.3 4.4 Total Property Return 4.9 5.8 (6.6) (2.6) (0.9) 4.6

1 Net equivalent yield movement

75

De-risked development pipeline focused on campuses

1 Finsbury Avenue 287,000 sq ft PC’d Q1 2019

Recently Completed & Committed Developments

100 Liverpool Street 521,000 sq ft Completion Q1 2020 1-2 Broadgate 531,000 sq ft 135 Bishopsgate 335,000 sq ft Completion Q3 2019 1 Triton Square 366,000 sq ft Completion Q4 2020

Near term pipeline Medium term pipeline

• excl. Canada Water

Norton Folgate 335,000 sq ft Gateway Building 105,000 sq ft 2-3 Finsbury Avenue 563,000 sq ft 5 Kingdom Street 429,000 sq ft Meadowhall Leisure 333,000 sq ft

• ERV of £63m
• 76% pre-let or under offer
• ERV of £39m
• Both schemes consented

Eden Walk, Kingston 533,000 sq ft

76

At 31 March 2019 Sector BL Share Sq ft PC Calendar Year Current Value Cost to Come ERV Let & Under Offer % '000 £m £m1 £m2 £m 1 Finsbury Avenue Office 50 287 Q1 2019 153 11 8.2 4.7 Total Completed in the Year 287 153 11 8.2 4.7 100 Liverpool Street Office 50 521 Q1 2020 240 82 19.1 10.6 135 Bishopsgate Office 50 335 Q3 2019 156 34 9.7 8.7 1 Triton Square3 Office 100 366 Q4 2020 289 122 23.1 21.8 Plymouth (Leisure) Retail 100 108 Q4 2019 29 14 3.1 2.1 Total Committed 1,330 714 252 55.0 43.2 Retail Capital Expenditure4 53

On a proportionally consolidated basis including the group's share of joint ventures and funds (except area which is shown at 100%)

1 From 1 April 2019. Cost to come excludes notional interest as interest is capitalised individually on each development at our capitalisation rate 2 Estimated headline rental value net of rent payable under head leases (excluding tenant incentives) 3 ERV let & under offer of £21.8m represents space taken by Dentsu Aegis. As part of this letting, Dentsu Aegis have an option to return their existing space at 10 Triton Street in 2021. If this option is exercised,

there is an adjustment to the rent free period in respect of the letting at 1 Triton Square to compensate British Land

4 Capex committed and underway within our investment portfolio relating to leasing and asset management

Recently Completed & Committed developments

77

Near term development pipeline

At 31 March 2019 Sector BL Share Sq ft Expected Start on Site Current Value Cost to Come ERV Let & Under Offer Planning Status % '000 Calendar Year £m £m1 £m2 £m Near Term Pipeline Norton Folgate Office 100 335 Q3 2019 62 206 20.6

• Consented

1–2 Broadgate Office 50 531 Q2 2020 94 198 18.8

• Consented

Total Near Term 866 156 404 39.4

• Retail Capital Expenditure3

78

On a proportionally consolidated basis including the group's share of joint ventures and funds (except area which is shown at100%)

1 From 1 April 2019. Cost to complete excludes notional interest as interest is capitalised individually on each development at our capitalisation rate 2 Estimated headline rental value net of rent payable under head leases (excluding tenant incentives) 3 Forecast capital commitments within our investment portfolio over the next 12 months relating to leasing and asset enhancement

78

Medium term development pipeline

1 Planning consent for previous 240,000 sq ft scheme 2 Canada Water site covers 5m sq ft in total based on net area (gross area of up to 7m sq ft) 3 Phase 1 consists of Phase 1a, 1b, 1c. Detailed planning submitted for Phase 1a covering 576,000 sq ft, outline planning submitted for total Phase 1 4 On drawdown of the Master Development Agreement, ownership reduces to 80% with LBS owning 20%. LBS ownership will adjust over time depending on level of investment by Southwark

At 31 March 2019 Sector BL Share Sq ft Planning status % '000 Medium term Pipeline 2-3 Finsbury Avenue Office 50 563 Consented Gateway Building Leisure 100 105 Consented 5 Kingdom Street1 Office 100 429 Consented Meadowhall (Leisure) Retail 50 333 Consented Ealing – 10-40 The Broadway Retail 100 292 Pre-submission Aldgate Place Phase 2 Residential 50 145 Consented Eden Walk Retail & Residential Mixed Use 50 533 Consented Plymouth, George Street Retail 100 43 Submitted Total Medium Term excl. Canada Water 2,443 Canada Water Phase 12,3,4 Mixed Use 100 1,917 Submitted

79

Estimated future development spend and capitalised interest

At 31 March 2019 PC Calendar Year Cost to Come £m (excluding notional interest) – 6 months breakdown Sep-19 Mar-20 Sept-20 Mar-21 Sept-21 Mar-22 Sept-22 Mar-23 100 Liverpool Street Q1 2020 51 16 7 8

• 135 Bishopsgate

Q3 2019 33 1

• 1 Triton Square

Q4 2020 47 39 17 19

• Plymouth (Leisure)

Q4 2019 10 4

• Total Committed

141 60 24 27

• Norton Folgate

2022 5 22 27 42 43 37 25 5 1–2 Broadgate 2023 7 7 19 20 29 33 33 28 Total Near Term 12 29 46 62 72 70 58 33 Indicative Interest Capitalised

• n above at attributable rates

3 4 3 3 3 4 3 2

80

Canada Water – Illustrative Scheme

Masterplan First detailed plots Outline Submitted Detailed planning submitted in May 18 Total NIA (sq ft) 5.0m 0.6m Commercial (sq ft) 2.1m 0.3m Retail & Leisure (sq ft) 0.7m 0.1m New Homes (units) 3,000 265

A1 A2 K1 L1 H1 H2 H3 L2 D1 D2 M1

Note: The figures above are indicative and are likely to change as development plans evolve

Buildings highlighted above reflect indicative First Major Scheme, totaling 1.9m sq ft

81

2010 2011 2012 2014 2015 2016 2017 2018 2019 2013 2020

Canada Water: key milestones and timeline

Earliest possible start on site Acquisition of 50% of Surrey Quays shopping centre 23 acres Conditional agreement to acquire Printworks 14.5 acres Remaining 50% of Surrey Quays shopping centre acquired 23 acres Surrey Quays leisure park acquired 8.5 acres MDA signed with Southwark Council Planning application submitted

82

0.0 2.0 4.0 6.0 8.0 10.0 12.0 00 01 02 03 04 05 06 07 08 09 10 11 12 13 14 15 16 17 18 19 20 21 22 23

Central London development pipeline

Note: Forecast reflects CBRE’s estimate of earliest completions. Central London comprises the City, Docklands, Midtown, Southbank and West End areas.

Source: CBRE

m sq ft 5.0m 4.2m

Completed U/C Pre-let Pipeline Pre-let U/C – Speculative Potential Speculative 10 year average new and under-construction take-up 10 year average development completions

Q1 2019

83

West End development pipeline

Note: Forecast reflects CBRE’s estimate of earliest completions

0.0 0.5 1.0 1.5 2.0 2.5 3.0 00 01 02 03 04 05 06 07 08 09 10 11 12 13 14 15 16 17 18 19 20 21 22 23 1.0m

Completed U/C Pre-let Pipeline Pre-let U/C – Speculative Potential Speculative 10 year average new and under-construction take-up 10 year average development completions Source: CBRE

m sq ft

Q1 2019

84

City development pipeline

Note: Forecast reflects CBRE’s estimate of earliest completions

0.0 1.0 2.0 3.0 4.0 5.0 6.0 00 01 02 03 04 05 06 07 08 09 10 11 12 13 14 15 16 17 18 19 20 21 22 23 2.4m 1.9m

Completed U/C Pre-let Pipeline Pre-let U/C – Speculative Potential Speculative 10 year average new and under-construction take-up 10 year average development completions

m sq ft

Source: CBRE

Q1 2019

85

London office market rental outlook

£ psf 20 40 60 80 100 120 140 2000 1995 1990 2010 2005 2020 2015

Forecast

Source: CBRE (historic) and Average Agents' Consensus for forecasts

Actual

West End City

Prime London Office Rents

86

2 4 6 8 10 12 14 16 18 20 1985 1990 1995 2000 2005 2010 2015 Q1 2019

Vacancy Central London

5.5% 3.6%

Source: CBRE (historic)

West End West End 10 year average City City 10 year average

West End & City Vacancy Rates

87

2020 Sustainability Targets: FY19 performance

Futureproofing

Capital efficiency

92% 100% new developments on track to achieve BREEAM Excellent/Very Good 44% 55% improvement in energy efficiency vs 2009 baseline 96% 100% of electricity to come from renewable sources Achieved: 64% 55% improvement in carbon efficiency vs 2009 baseline 10% 15% reduction capital carbon emissions vs concept (embodied carbon) In progress Trial 3 visible interventions to improve local air quality 0.4% to landfill Zero waste to landfill

Skills and

• pportunity

Expert people

1,232 1,700 people supported into employment (cumulative) 2.4% 3% of BL workforce and priority tier 1 and 2 suppliers to be apprentices 53% 100% strategic suppliers signed up to new code of conduct In progress Pilot a Living Wage Zone at a London campus 100% / 66% 100% BL and supplier workforce at managed assets paid Living Wage

Wellbeing

Customer orientation

On track Achieve WELL Certification on 100 Liverpool Street In progress Establish and pilot wellbeing specification for retail developments Achieved Define and trial a measurement of office productivity Achieved Research & publish on how development design impacts public health

Community

Right places

92% Fully implement Local Charter at staffed assets and major developments 17% 20% employee skills-based volunteering 81% 90% employee volunteering

FY19 2020 Target

88

CSR & Sustainability – Highlights of our progress

Customer Orientation

Wellbeing

• We published research quantifying

the potential benefits of putting wellbeing at the heart of urban

• design. The ‘Design for Life’ report

showed that, in a 30-year development cycle, the UK economy could receive a £15bn boost from reduced illness, enhanced social cohesion and increased productivity at work. Individuals would be supported in living happier, more connected and fulfilling lives.

• Our 100 Liverpool Street

development at Broadgate remains

• n track to achieve WELL

Certification on completion.

Capital Efficiency

Futureproofing

• Our whole-life carbon strategy at 1

Triton Square, Regent’s Place, has saved 35,000 tonnes of CO2e against a best practice new build. The emissions avoided are equivalent to powering the building for 26 years.

• We have improved Meadowhall’s

BREEAM In Use rating to ‘Outstanding’

• We have doubled our capacity for

generating renewable energy to 2MW with the installation of PV panels across Meadowhall’s roof.

Expert People

Skills & opportunity

• We have now helped over 40,000

primary school children around our assets to improve their literacy skills: a key indicator of life expectancy and future wellbeing.

• At Broadgate, 56% (£46m) of our

construction spend in the last two years has been invested within the City of London and neighbouring boroughs. £24m of this has been invested with SMEs, supporting local entrepreneurs and creating jobs in the neighbourhoods around Broadgate.

Right Places

Community

• We supported over 36,000 people

through investment in the communities around our places during the financial year.

• British Land was ranked 2nd in the

national GivX index, which puts a value on corporate community investment.

• 1,500 people around our Regent’s

Place campus benefited from the work of the Regent’s Place Community Fund, which brings together our customers, suppliers and community partners. Full details of progress against our 2020 sustainability programme can be found in the Sustainability Accounts, which will be published on our website alongside the Annual Report and Accounts.

89

FY 2019 performance

Sustainability Indices Performance

MSCI disclaimer available http://www.britishland.com/sustainability/performance/benchmarks

Global Real Estate Sustainability Benchmark 2018: Green star for 9th year FTSE4Good 2018: 96th percentile Sustainalytics ESG Ratings 2018: 98th percentile Carbon Disclosure Project 2018: A- EPRA Sustainability Reporting Awards 2018: Gold for 7th year MSCI ESG Ratings 2018: AAA rating

Other benchmarks and awards

90

Disclaimer

The information contained in this presentation has been extracted largely from the Full Year Results Announcement for the year ended 31 March 2019. For the purpose of this document, references to "presentation" shall be deemed to include this document, the oral briefing provided by British Land on this document, the question-and-answer session that follows the oral briefing, and any materials distributed in connection with this document or the oral briefing through The Regulatory News Service. This document is incomplete without reference to, and should be viewed solely in conjunction with, the wider presentation. All statements of opinion and/or belief contained in this presentation and all views expressed represent British Land's own current assessment and interpretation of information available to them as at the date of this presentation. Please note that this presentation may contain or incorporate by reference certain “forward-looking” statements. Such statements reflect current views, expectations and beliefs of British Land

• n, among other things, our markets, activities, projections, objectives, performance, financial condition and prospects, and appear in a number of places throughout this presentation. Such ‘forward-looking’

statements can sometimes, but not always, be identified by their reference to a date or point in the future or the use of ‘forward-looking’ terminology, including terms such as ‘believes’, ‘considers’, ‘estimates’, ‘anticipates’, ‘expects’, ‘forecasts’, ‘intends’, ‘continues’ ‘due’, ‘plans’, ‘seeks’, ‘projects’, ‘goal’, ‘outlook’, ‘schedule’, ‘target’, ‘aim’, ‘may’, ‘likely to’, ‘will’, ‘would’, ‘could’, ‘should’ or similar expressions or in each case their negative or other variations or comparable terminology. By their nature, forward-looking statements involve inherent known and unknown risks, assumptions and uncertainties because they relate to future events and circumstances which may or may not occur and may be beyond our ability to control or predict. There can be no assurance that such statements will prove to be accurate. Forward-looking statements are not guarantees of future performance and hence may prove to be erroneous. Actual outcomes and results may differ materially from any outcomes or results expressed or implied by such forward-looking statements. These forward-looking statements include all matters that are not historical fact. Forward-looking statements regarding past trends or activities should not be taken as a representation that such trends or activities will continue in the future. Even if results and the development of the industry in which British Land operates are consistent with the forward-looking statements contained in the presentation, those results or developments may not be indicative of results

• r developments in subsequent periods. Any forward-looking statements made by or on behalf of British Land speak only as of the date they are made.

Other than in accordance with our legal and regulatory obligations (including under the UK Financial Conduct Authority’s Listing Rules and the Disclosure Guidance and Transparency Rules, and the EU Market Abuse Regulation), British Land does not undertake any obligation to update or revise publicly forward-looking statements to reflect any changes in British Land’s expectations with regard thereto or any changes in events, conditions, circumstances or other information on which any such statement is based. Important factors that could cause actual results, performance or achievements of British Land to differ materially from any outcomes or results expressed or implied by such forward-looking statements are set out in the section headed “forward-looking statements” in the Half Year Results Announcement. Information contained in this presentation relating to British Land or its share price or the yield on its shares are not guarantees of, and should not be relied upon as an indicator of, future performance. Nothing in this presentation should be construed as a profit forecast or profit estimate, or be taken as implying that the earnings of British Land for the current year or future years will necessarily match or exceed the historical or published earnings of British Land. This presentation is published solely for information purposes, and is not to be reproduced or distributed, in whole or in part, by any person other than British Land. The information, statements and opinions contained in this presentation do not constitute or form part of an offer or invitation to sell or issue, or the solicitation of an offer to subscribe for or buy, or any recommendation or advice in respect of, any security

• r financial instrument, 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 part of this presentation, nor the fact of its distribution, shall form the basis of or be relied on for any purpose, including in connection with any contract or engagement or investment decision in any jurisdiction, and recipients are cautioned against relying on this presentation. No representation or warranty, either express or implied, is given (whether by British Land or any of its associates, directors, officers, employees or advisers) in relation to the accuracy, completeness, fairness or reliability of the information contained herein, including as to the completeness or accuracy of any forward-looking statements or the basis on which they were prepared, or that the objectives of British Land will be achieved, and liability or responsibility (including of British Land, its shareholders, advisers or representatives) howsoever arising in connection with this presentation is therefore expressly disclaimed (including in respect of any error, omission or misstatement, or for any loss, howsoever arising, from the use of this presentation). The information contained in the presentation has not been subject to independent verification. Certain of the information contained in this presentation has been obtained from published sources prepared by other parties. Certain other information has been extracted from unpublished sources prepared by

• ther parties which have been made available to British Land. British Land has not carried out an independent investigation to verify the accuracy and completeness of such third party information. No

responsibility is accepted by British Land or any of associates, directors, officers, employees or advisers for the accuracy or completeness of such information. The distribution of this presentation in jurisdictions

• ther than the UK may be restricted by law and regulation and therefore any persons who are subject to the laws of any jurisdiction other than the UK should inform themselves about, and observe, any

applicable requirements. This presentation has been prepared for the purpose of complying with English law and regulation 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

• pinions expressed elsewhere. This presentation has been presented in £, £ms and £bns. Certain totals and change movements are impacted by the effect of rounding