Full year results presentation October 2017 02 Redefine - - PowerPoint PPT Presentation

Full year results presentation

October 2017

02

Redefine International P .L.C. 2017 Full Year Results Presentation

Agenda

Introduction and highlights Mike Watters (CEO) Financial results Donald Grant (CFO) Effjcient capital structure Stephen Oakenfull (Deputy CEO) Income focused portfolio Adrian Horsburgh (Property Director) Outlook and conclusion Mike Watters (CEO) Q&A

03

Redefine International P .L.C. 2017 Full Year Results Presentation

Committed to being the UK’s leading income focused REIT Operational highlights

• Disposals of £148.2m, at a 12.2% premium
• Occupancy remains high at 97.7%
• 235 lease events totalling £17.3m +3.9%
• n passing rent and +0.7% on ERV
• WAULT of 7.4 years (8.5 years to expiry)
• TK Maxx for new 22,000 sqft unit in Derby
• 38.9% of leases indexed (+420bps)
• IHL acquisition post year end

Financial highlights

• Underlying earnings of £49.8m (+7.6%)
• Underlying earnings per share 2.75p in line

with guidance

• Gross rental income of £103.1m

(+3.7% like-for-like)

• Dividend pay-out ratio of 94.5%
• Portfolio valued at £1.5bn (+3.0% like-for-like)
• LTV of 50.0% (-340bps)(1)
• Weighted average cost of debt 3.1% (-30bps)
• EPRA NAV per share 41.4p (+3.5%)

Strong set of results

Superior income returns with 6.3% dividend yield on NAV (UK-REIT average 4.1%)

(1) Proforma adjusted to refmect transactions post 31 August 2017.

04

Redefine International P .L.C. 2017 Full Year Results Presentation

Continuing to deliver upper quartile distributions to our shareholders

Continued progress against strategic objectives

Superior, sustainable and growing income returns

Performance indicator Medium-term target FY2017

Underlying EPS

(in year guidance 2.7p–2.8p)

2.75p Pay-out ratio 90% – 95% 94.5% LTV 45% – 50% 50.0%

(1)

• Solid progress on strategic targets in 6 months
• Achieved underlying EPS in line with recent guidance
• Progress in strengthening the balance sheet
• Portfolio quality enhanced through capital recycling

(1) Proforma adjusted to refmect transactions post 31 August 2017.

05

Redefi ne International P .L.C. 2017 Full Year Results Presentation

Acquisition of additional 42% in IHL

Earnings accretive acquisition complementing existing portfolio

Demonstrates our strategic priority to increase scale subject to securing the right income enhancing investments

Deal summary

• As announced in August 2017:
• Increase holding in IHL from 17.2% to

50.0% via scheme of arrangement

• Share swap ratio of 2.5 implying a 0.4%

premium to IHL’s 28 February 2017 net assets

• Consideration value £17.4m
• EGM approval received

15 September 2017

• 45.9m Redefj

ne International shares to be issued

• Completion date early November 2017
• IHL will be delisted shortly after
• Agreement reached to acquire additional

9% from Redefj ne Properties under the same terms on 1 November 2017

• EXISTING PORTFOLIO
• IHL PORTFOLIO

UK Hotels including IHL acquisition to increase to 21% of overall portfolio

06

Redefine International P .L.C. 2017 Full Year Results Presentation

Deal rationale and portfolio detail

Simple integration to continue income growth and deliver cost savings

Diversified portfolio strategy provides ability to opportunistically increase weighting to sectors with positive outlook

• £104.4m portfolio of 9 hotels, implied 6.9% net initial yield
• 5 branded hotels
• 4 Travelodges
• Well located with alternative uses and high residual value
• 80% in London, UK “Big 6” or Southern UK
• Hampton by Hilton, Gatwick integrally linked

to Gatwick North Terminal

• Secure and growing income
• 21.2% of income with uncapped CPI escalations
• Travelodge hotels with average unexpired lease

terms >20 years

• Limited service hotels
• Anticipated yield on equity of over 10%

Travelodge, Belvedere Value: £4.6m Travelodge, Perth Value: £4.4m Hampton by Hilton, Gatwick Value: £21.3m Travelodge, Leatherhead Value: £6.9m Travelodge, Slough Value: £13.1m Holiday Inn Express, Southampton Value: £20.2m Holiday Inn Express, Dunstable Value: £9.2m Holiday Inn Express, Edinburgh Value: £17.7m Holiday Inn Express, Redditch Value: £7.0m

07

Redefine International P .L.C. 2017 Full Year Results Presentation

Financial results

08

Redefine International P .L.C. 2017 Full Year Results Presentation

Underlying earnings

(including share of joint ventures)

Re-based Reported FY17 FY16 FY16 Change £m £m £m £m

Net rental income 93.5 89.3 4.2 Other income 2.7 3.1 (0.4) Administrative costs (15.6) (11.4) (4.2) Net fjnance expense (29.0) (33.1) 4.1 Other items (0.7) (3.8) 3.1 EPRA earnings 50.9 44.1 44.1 6.8 Company adjustments: – Reverse debt accretion charges 0.9 3.1 3.1 – FX gains (2.0) (0.9) (0.9) – Discontinued Company adjustments — — 5.9 Underlying earnings 49.8 46.3 52.2 Earnings per share 2.75p 3.2p Dividend per share (declared H2: 1.3p) 2.6p 3.2p

Diluted weighted average shares in issue 1,811.9m (31 August 2016: 1,637.9m).

09

Redefine International P .L.C. 2017 Full Year Results Presentation

(4.9)

Disposals

Like-for-like(1) +3.7% 0.5

UK Retail

0.2

UK Commercial

(0.2)

UK Hotels

2.1

Europe Gross rental income (FY16)

96.6

Acquisitions

8.8

Gross rental income (FY17)

103.1

Gross rental income

(including share of joint ventures)

Gross rental income (£m)

(1) Like-for-like continues to exclude the majority of the 2016 acquisition of the AUK Portfolio.

10

Redefine International P .L.C. 2017 Full Year Results Presentation

Valuations

(including share of joint ventures)

(1) Gain/(loss) includes the effect of capital expenditure, tenant incentives and FX.

Market Market value value Gain/ Gain/ EPRA FY17 FY16 (loss)(1) (loss) NIY £m £m £m % %

UK Retail 514.6 535.0 (25.1) (4.7) 6.3 UK Commercial 364.2 334.1 27.8 8.3 5.1 UK Hotels 239.6 229.2 6.6 2.9 5.9 UK total 1,118.4 1,098.3 9.3 0.8 5.8 Europe 311.7 279.9 31.4 11.2 5.4 Total like-for-like 1,430.1 1,378.2 40.7 3.0 Acquisitions 85.2 — Disposals — 132.3 Development 23.4 18.5 Total property portfolio 1,538.7 1,529.0 5.7

€+2.5%

Disposal proceeds of £148.2m reflect a 12.2% premium to book value

11

Redefine International P .L.C. 2017 Full Year Results Presentation

Debt & gearing

(including share of joint ventures)

Key statistics Medium term target FY17 FY16

LTV 45% – 50% 50.0%(1) 53.4% Weighted average debt maturity 7.3yrs 6.9yrs Weighted average interest rate 3.2% – 3.4% 3.1% 3.4% Debt with interest rate protection >75% 93.0% 95.4% Interest cover(2) >3x 3.2x 2.7x

(1) Proforma adjusted to refmect transactions post 31 August 2017. (2) Group interest cover calculated as net rental income divided by net fjnance cost.

12

Redefine International P .L.C. 2017 Full Year Results Presentation

2.75

Underlying earnings

0.3

Valuation gains

0.9

Profits on disposal Dividends

(2.9)

Aviva refinancing charges

(0.3)

FX gain

0.8 (0.15)

Other EPRA NAV (FY16)

40.0

EPRA NAV (FY17)

41.4

EPRA NAV per share

Up 3.5% to 41.4p

NAV per share (p)

Total shares on issue 1,828.1m (31 August 2016: 1,794.6m).

13

Redefine International P .L.C. 2017 Full Year Results Presentation

Undrawn, committed facilities Cash and available facilities (FY16)

34.3 23.0 57.3

Operating cash flow

51.6

Disposals

113.9

Acquisition

• f joint

venture interest

(41.0)

Net debt repaid

(38.7)

Capital expenditure & development

(18.9)

Dividends

(39.5)

Other

(2.8)

Aviva refinancing charges

(5.5)

Cash and available facilities (FY17)

10.0 63.4 53.4

Capital commitments of £16.8m

Cash fmow & available facilities

(including share of joint ventures)

Cash flow (£m)

14

Redefine International P .L.C. 2017 Full Year Results Presentation

Dividend of 2.6p provides headroom to operational cash flow

Medium term guidance maintained

Underlying EPS growth target at 3% – 5%

Performance indicator Medium term target H1 H2 FY17

Rental income growth (like-for-like) 2% – 5% 3.3% 4.3% 3.7% Rent collection >95% within 7 days 94.0% 94.3% 94.3% Administrative overheads <15% EPRA cost ratio 20.7% 19.0% 19.8%(1) Cost of debt 3.2% – 3.4% 3.3% 3.1% 3.1% LTV 45% – 50% 49.9% 50.0% 50.0% Interest cover >3x 3.1x 3.4x 3.2x Pay-out ratio 90% – 95% 96.3% 92.9% 94.5%

(1) 17.2% when adjusted for non-recurring items.

Schloss-Strassen Center, Berlin

Effjcient capital structure

15

Redefine International P .L.C. 2017 Full Year Results Presentation

16

Redefine International P .L.C. 2017 Full Year Results Presentation

Effjcient capital structure

Reducing leverage effectively whilst limiting impact on income

£148.2m

FY17 gross proceeds on disposals

12.2% premium

• n book value

£9 .4m

Disposed net income annualised Average NIY of 6.2% Average reversionary yield 5.6%

£41.9m

Equity reinvestment during FY17

Acquisition of controlling stake in Leopard portfolio, Germany

£5.1m

Acquired annualised net rental income Acquisition of long dated indexed rents at an average NIY of 7.4%

£27 .5m

Net debt reduction

Targeting highest LTV facilities

£4.3m

Annualised fjnance cost reduction, incl. £1.5m Aviva profjt share saving Achieving marginal returns in excess of our cost of debt

17

Redefine International P .L.C. 2017 Full Year Results Presentation

Capital recycling & disposals

Disposals being driven by asset level strategy

Strategic disposals

VBG portfolio, Germany

• Sold for £44.4m(1)
• 8.6% premium
• 7.2% NIY
• 4.9% reversionary yield

Realising value

Carphone Warehouse Priory Retail Park, London

• Sold for £5.5m
• 161.9% premium
• 1.8% NIY
• 2.0% reversionary yield

Opportunistic

BMW showroom, High Wycombe

• Sold for £26.1m
• 5.8% premium
• 5.0% NIY
• 3.9% reversionary yield
• £148.2m of disposals completed at a 12.2% premium
• Strategy governing disposals:
• Assets where business plans have been successfully

executed and value maximised

• Assets with bottom quartile IRRs
• EPRA NIY of 6.2% on sales prices, refmecting net rental

income of £9.4m

• Removal of signifjcant future capex requirements
• A further £11.0m disposed post year end

(1) 49% share.

18

Redefine International P .L.C. 2017 Full Year Results Presentation

40% 60% 55% 50% 45% 65% 70% 75% 80% 85% LTV (%)

75.4% 50.0% 3.1% 5.0%

Cost of debt (%) 5.5% 3.0% 3.5% 4.0% 4.5% 5.0% LTV (%) Weighted average cost of debt (%) FY2011 FY2012 FY2013 FY2014 FY2015 FY2016 FY2017 Post year end

Medium term target of 45% – 50% LTV

Leverage reduced to within target range post year end

Meaningful reduction in LTV and cost of debt over last 6 years

Historic weighted average cost of debt and LTV(%)

• Refjnancing or extending facilities at lower leverage

and reduced margins

• Revised dividend policy and pay-out ratio to provide

headroom on operational cash fmow

• Cost of debt reduced to 3.1% (-30bps)
• Reinvestment to be undertaken at lower

marginal leverage

• Medium term target to achieve a partially

unsecured debt structure

19

Redefine International P .L.C. 2017 Full Year Results Presentation

Weighted average debt maturity of 7.3 years Material covenant headroom across all loans

• £288.5m of debt repaid or refjnanced since 31 August 2016
• Lower rates secured for an extended period
• £303m AUK facility provides fmexible capital structure and

cost of debt effjciencies

• 93% of debt at fjxed or capped rates
• Net Group LTV 50.0%
• Total LTV covenant average 70.9%(1)
• German assets funded with Euro debt providing natural

FX hedge

Well structured debt profjle

Limited refjnancing risk with no material maturities until 2020

GBP Euro FY18 FY19 FY20 FY21 FY22 FY23 FY24 FY25 FY26 FY27 FY28 FY29 FY30+ 7.2 387.7 125.0 22.1 48.9 145.9 10.0 95.4 UK bank debt

• Gross LTV: 53.3%
• LTV cov ave: 69.1%

Europe bank debt

• Gross LTV: 51.5%
• LTV cov ave: 64.7%

UK non-bank debt

• Gross LTV: 65.5%
• LTV cov ave: 85.0%

26% 56% 18%

Debt maturity profile (£m) Group debt £842.2m

(1) £29.9m of Group debt is not subject to an LTV covenant.

20

Redefine International P .L.C. 2017 Full Year Results Presentation

Disciplined acquisitions paying off

Transformational AUK investment delivering signifjcant value and income in only 2 years

Further income growth and clearly identified value add opportunities

• Retail parks: Closing the overrent gap with 10 lease events at 10.0% above ERV

and 19.4% above passing rent; offset by two vacancies at Banbury

• Logistics: Signed DFS (+15.5% on passing and +14.6% on ERV); WAULT increased

by >30% to 5.0 years (9.2 years to expiry)

• Charing Cross Road: 6 lease events +22.4% on passing
• Regional offjces: Voids reduced by area from 19.9% to 4.1%

Market value Disposal gross proceeds At acquisition

489.9 +7.5% 526.8

31 Aug 2017 Triple net income at acquisition

28.2

Disposals/ Identified for sale

(3.6) (0.2)

Under development

(0.2)

Retail parks &

• ther retail

24.4

Triple net income like-for-like

0.3

London

• ffice

1.5

Regional

• ffices

0.1

Logistics

26.1

Triple net income 31 Aug 17

+7.2% growth AUK delivered significant value (£m) Annualised triple net income (£m)

Capex cumulative £3.5m

• £93.7m of disposals at 14.6% premium
• n acquisition value
• 6.7% valuation growth on the

remaining portfolio

• Assets identifjed for sale:

Hull and Colchester

Grand Arcade, Wigan – digital advertising

21

Redefine International P .L.C. 2017 Full Year Results Presentation

Income focused portfolio

22

Redefine International P .L.C. 2017 Full Year Results Presentation

Portfolio continues to be enhanced through disposal of mature assets and reinvestment

Retail: 60% Commercial: 24% Hotels: 16% UK Shopping centres: 20% German Retail: 27% UK Retail parks: 13% Logistics:(1) 11% Offjces: 13%

7 .4yrs

WAULT 8.5yrs to expiry

5.7%

EPRA NIY

Reversionary yield 6.6%

97 .7%

Occupancy

38.9%

Indexed rents

73%

UK

27%

Germany

Asset management expertise across retail,

• ffjce, logistics and hotels

(1) Includes industrial and automotive.

Portfolio overview

Market value £1.5bn as at 31 August 2017

23

Redefine International P .L.C. 2017 Full Year Results Presentation

FY2018 FY2019 FY2020 FY2021 FY2026 FY2027+ FY2025 FY2024 FY2023 FY2022 UK Retail UK Hotels Europe UK Commercial

5.4 2.9 5.7 5.3 9.0 9.3 6.3 6.9 23.2 30.3

Resilient income profile with 73% of gross rental income beyond 5 years to first break

Income security supported by diversifjed portfolio

Clear income visibility with WAULT of 7.4 years to fjrst break (8.5 years to expiry)

Tenant Profjle

• Diverse and high quality

sources of rental income

• Over 600 tenants
• Over 38.9% of portfolio

subject to index-linked rents Top 10 tenants

As at % of gross 31 August 2017 rental income Units

Edeka 7.0 34 UK Government 4.6 16 B&Q 4.1 5 Tesco 3.6 1 Netto 2.6 23 Real 2.4 3 Royal Mail 2.3 2 Primark 2.0 1 OBI 1.9 3 Debenhams 1.8 2 Lease expiries to first break by gross rental income (£m)

24

Redefine International P .L.C. 2017 Full Year Results Presentation

Rental growth outlook

Medium term target of 2% – 5% rental growth per annum

S t r

• n

g

• c

c u p i e r d e m a n d I n d e x e d 8.5 3.0 18.7 6.0 11.2 13.7

Shopping centres London offices Other Indexed Distribution and industrial Retail parks Hotels

25.0 13.9

Germany Open market rent reviews UK

3 8 . 9 % I n d e x e d Indexation by gross annualised income (%) Open market rent reviews by gross annualised income (%)

Income-led asset management initiatives planned and underway with current capital projects expected to provide 7.6% yield on cost

• 96.7% leases indexed in Germany
• 18.7% of UK leases indexed
• Weighted towards sectors and assets with strong occupier

demand, including distribution, retail parks and hotels

• London offjces located in areas undergoing signifjcant

regeneration

• Actively recycling assets where we believe income is at risk

25

Redefine International P .L.C. 2017 Full Year Results Presentation

Focused on improved property fundamentals with clearly identified opportunities to support future income security

Continuously improving portfolio quality

Focus on owning assets underpinned by occupier demand

High growth Low growth High yield Low yield

Derby development Charing Cross Road development Schloss-Strassen Center, Berlin Regional offjces – identifjed for sale UK Shopping centres Mature/low growth income Core secure income Growth income Asset management UK Retail parks EPRA NIY 5.7% Camino Park, Crawley

26

Redefine International P .L.C. 2017 Full Year Results Presentation

• Retail landscape continues to evolve
• Actively target food, daily needs and leisure tenants
• Closely tracking occupier trading performance

relative to rental affordability

• Occupancy track record >95%
• BHS unit let to Poundland post year end
• Footfall +2.1% over the year, despite BHS vacancy impact
• National footfall –1.5% over the same period
• Expect footfall to recover further following opening
• f new Poundland at Wigan
• 76 leasing events
• Improving tenant mix
• Marginally down on passing rent, however

excluding temporary leases +2.3% on passing rent

• New lettings –3.9% vs ERV

Highest occupancy since acquiring shopping centres achieved post year end

UK Shopping centres

Footfall +2.1% over the year

FY2012 95.2 FY2011 97.4 FY2010 98.1 95.0 FY2013 95.4 FY2014 97.1 FY2015 96.7 FY2016

99.2

FY2017 Post year end deals exchanged

• r in solicitors’ hands

Shopping centre portfolio occupancy by area (%)

27

Redefine International P .L.C. 2017 Full Year Results Presentation

UK Retail parks

National retail park vacancy reduced to 5.1% (2016: 5.3%)

PureGym unit completed

• +£0.2m rental income
• 15% yield on cost

Carphone Warehouse unit disposed at 162% premium to book value +£0.1m of incremental commercialisation income generated across the retail park portfolio Pre-let expansions underway

• Additional 7 units
• Strong A3 covenants
• +£0.5m rental income
• >10% yield on cost

Two vacancies at Banbury Cross presents opportunity to improve tenant mix. In discussion with discount retailers and drive-through F&B operators

The Arches Retail Park, Watford Banbury Cross / Pure Gym Priory Retail Park, Merton

Strong tenant demand exceeding supply

28

Redefine International P .L.C. 2017 Full Year Results Presentation

UK Retail Other: Derby, Albion Street

High yielding development following successful letting to TK Maxx

Derby ‘after’ Derby ‘before’

Income enhancing

• 15 year lease to TK Maxx on 22,000 sqft
• Agreed rent of £0.2m
• Strong covenant
• High profjle brand to drive footfall

Development under way

• Combine 3 of the 10 units to create new 22,000 sqft unit
• Estimated completion late 2017
• £2.2m cost expected to yield over 10.0%

Investors in high yielding developments supported by occupier demand

29

Redefine International P .L.C. 2017 Full Year Results Presentation

UK Offjces – Greater London: Charing Cross Road

Entering formal planning application stage

CENTRE POINT 127 CHARING CROSS ROAD ST GILES CIRCUS 210,000 sqft | End 2018 ILONA ROSE HOUSE 310,000 sqft mixed use | Q4 2020

OXFORD STREET NEW OXFORD STREET

ONE OXFORD STREET 275,000 sqft | 2020

CHARING CROSS ROAD

CROSSRAIL SITE

TOTTENHAM COURT ROAD

Plans to increase lettable area

>50% >£1.0m

Expected increase in rental income

Staged approach to deliver value

30

Redefine International P .L.C. 2017 Full Year Results Presentation

Since acquisition market value has increased by 36%

Camino Park, Crawley has 64.9% of fmoor area up for review in late 2017

UK Distribution

Strong occupational demand and lack of supply

£12 – £14 per sqft

Evidence on neighbouring properties

£9.3 per sqft

Current ERV at Camino

£8.0 per sqft

ERV at acquisition

Camino Park, Crawley

(384,698 sqft)

31

Redefine International P .L.C. 2017 Full Year Results Presentation

Testament to in-house specialism, RedefineBDL, the largest independent UK hotel management company, was awarded management of a further 26 luxury hotels

UK Hotels outlook and strategy

London consistently delivers one of the highest global occupancy levels averaging >80% since 2006

Strategy Market outlook

• London centric
• Focused on limited service, branded hotels
• Growth opportunities through expansions
• IHL acquisition provides critical mass and multiple

strategic options

• Deliver smooth integration and cost synergies
• Strong brands provide a defensive position against

an economic downturn

• Growth in 2018 expected to continue
• RevPars in London is anticipated to grow 2.4%

in 2018 (PwC)

32

Redefine International P .L.C. 2017 Full Year Results Presentation

Ingolstadt handover to Primark in Q4 2017

Schloss-Strassen Center

Occupier led asset management initiatives

• REWE supermarket to extend by

171 sqm on a 10 year lease refmecting a 8.3% yield on cost

• dm pharmacy to extend by 100 sqm
• n a 10 year lease refmecting a 9.4%

yield on cost

• Food court fully modernised
• Increased weighting to food

and convenience

Germany – shopping centres

Reconfjguration of space and developments progressing well

• ital. Eis

New DIE BÄCKEREI Junge 174m² REWE Supermarket extentsion 170m² DM Chemist extentsion 100m²

Divider page title

Divider page subhead

33

Redefine International P .L.C. 2017 Full Year Results Presentation

33

Redefine International P .L.C. 2017 Full Year Results Presentation Hampton by Hilton, Gatwick Airport

Outlook and conclusion

• Committed to being the UK’s leading

income focused REIT

• Clear and measurable medium term

targets in place

• Relentless focus on delivering superior,

sustainable and growing income focused total returns

• Offering investors security in an uncertain

and volatile economic environment

• Continue enhancing our portfolio quality
• Strengthening the balance sheet
• Reducing costs further
• Opportunistic disposal of German retail assets
• Medium term targets unchanged and the

earnings base has now been reset to support 3% – 5% underlying EPS growth

Outlook and conclusion

34

Redefine International P .L.C. 2017 Full Year Results Presentation

35

Redefine International P .L.C. 2017 Full Year Results Presentation

36

Redefine International P .L.C. 2017 Full Year Results Presentation

Appendices

37

Redefine International P .L.C. 2017 Full Year Results Presentation

• Superior, sustainable and growing shareholder returns
• £1.5bn income-led portfolio
• Retail (60%), Offjces (13%), Distribution (11%)

and Hotels (16%)

• Secure income:
• Diversifjed portfolio and tenant base
• 7.4 years WAULT with 38.9% indexed leases
• 7.3 years debt maturity with 93% of interest costs

fjxed or capped

• Industry leading cost ratios

Introduction to Redefjne International P.L.C.

Committed to being the UK’s leading income focused REIT

Top 20 assets by market value Europe’s two largest real estate markets:

73%

UK

27%

Germany

38

Redefine International P .L.C. 2017 Full Year Results Presentation

• Total returns from property are largely driven

by income

• Increased attraction to:
• Predictable income returns
• Capital preservation with growth potential
• Trend of compounding income delivering long

term returns to continue

• Management has ability to infmuence income returns
• Short term capital returns are volatile and

affected by external factors

• Increasing income returns will drive sustainable

capital growth

• REITs provide institutional and retail investors with access

to transparent and liquid commercial real estate returns

Our business model is designed to provide long term superior, sustainable and growing shareholder returns

The case for our income focused business model

Recurring and predictable income returns are increasingly sought after in a low economic growth and low interest rate environment

30 years

73%

20 years

74%

10 years

140%

5 years

65%

Capital return Income return Source: MSCI, Lazarus.

The composition of historic UK property total returns

39

Redefine International P .L.C. 2017 Full Year Results Presentation

A strategy to become the UK’s leading income focused REIT Superior, sustainable and growing shareholder returns

Scaleable Business Efficient Capital Structure Income Focused Portfolio Financial Discipline

• Committed to deliver upper quartile income yield
• Secure income
• Total returns driven by “real” income growth
• Capital appreciation
• High quality portfolio
• Limited volatility through

the cycle

• Invest in opportunities

across sectors

• Suffjcient scale
• Cost effjcient portfolio
• Effjcient conversion of rental

income into profjt

• EPRA cost ratio

(excl. direct vacancies) <15%

• Covered dividend
• >£1bn market cap
• Improved liquidity
• Recycle capital
• Limit volatility
• Multiple sources of capital
• Strong balance sheet
• Operational fmexibility
• Competitive cost of capital

40

Redefine International P .L.C. 2017 Full Year Results Presentation

Focused on improved property fundamentals with clearly identified opportunities to support income security and delivery of market beating growth

Continuously improving quality of portfolio

Primary focus on acquiring and owning assets underpinned by occupier demand

• n completion
• Long WAULTs (7.6 years)
• Indexed rents (61.3% indexed)
• High cash-on-cash returns
• Includes convenience,

discount and leisure focused UK shopping centres

• Positive structural change
• Economic growth locations
• Includes Camino Park,

Crawley with 64.6% of fmoor space up for review in 2017

• Void reduction
• Commercialisation
• Expansion and

reconfjgurations

• Includes Ingolstadt,

Derby and Charing Cross

• Identifjed for sale
• Includes House
• f Fraser, Hull

% portfolio by market value 46% Core secure income 20% Income-led asset management

• pportunities

30% Growth income 4% Mature assets

41

Redefine International P .L.C. 2017 Full Year Results Presentation

Strategically targeted sectors

Supported by in-house specialists

UK Retail Market value £515m UK Commercial Market value £364m UK Hotels Market value £240m Europe Market value £420m

• 6 wholly-owned regionally

dominant shopping centres, tenanted by leading retailers including Tesco, Wilko, Boots, H&M and TK Maxx

• Well located retail parks, of

which 4 assets are in London, UK South and “Big 6” UK cities

• Other assets include a high

street retail asset, currently under development, and a retail warehouse

• 8 limited service hotels in

Greater London and 1 hotel in Edinburgh

• Branded Holiday Inn, Holiday

Inn Express, Crowne Plaza, Travelodge and DoubleTree by Hilton

• 30.4% holding in RedefjneBDL,

the UK’s largest independent hotel manager

• 17.2%(1) holding in IHL, a hotel

and leisure focused listed entity

• 3 Greater London offjces and

15 regional offjces

• 4 well located multi-let

distribution centres

• Service station and motor

trade properties which provide defensive income on long leases, with leading brands including BP and Kwik Fit

• 80 properties in Germany
• 3 well located shopping

centres in Berlin, Hamburg and Ingolstadt

• Other assets include retail

parks and small discount supermarkets

• Tenants are weighted to

non-discretionary food stores and discounters

(1) Increasing to 58.9% following the IHL acquisition post year end.

42

Redefine International P .L.C. 2017 Full Year Results Presentation

• BHS unit at Wigan let post year end
• Commercialisation revenues of £1.1m secured,

+9% like-for-like

• Reconfjguring and optimising space
• Actively targeting food, daily needs, value

and leisure tenants

• Closely tracking retailer performance
• Re-urbanisation of town centres
• Creation of larger units to meet demand

and reduce number of in-line units

UK Shopping centres: 20% by market value

Footfall in our centres +2.1% (-1.5% UK average)

High occupancy

96.7% (-140bps) by ERV

Market evolution

Rebalancing supply and demand

Sector headwinds

Consumer shopping patterns continue to evolve Highest occupancy since acquiring shopping centres achieved post year end

43

Redefine International P .L.C. 2017 Full Year Results Presentation

• Vacancy across the sector remains low
• Renewed investor interest
• Two vacant units at Banbury in negotiation

to improve tenant mix

• Demand driven development to deliver

+£0.5m incremental rent

• Progress on commercialisation income streams
• PureGym unit completed at Banbury Cross;

additional income of £0.2m, 15% yield on cost

• Terms agreed on 22,000 sqft pre-let to TK Maxx

at Derby

• Development cost of £2.2m, over 10% yield on cost
• Pre-let to drive demand for c.16,000 sqft of

neighbouring shops

UK Retail parks and other retail: 13% by market value

Strong occupier demand and continued growth expectation

Strong supply/demand dynamics Income-led development Creating additional income

UK retail warehouse vacancy at 5.1% (2016: 5.3%) continues to fall and nearly halved since the 2013 peak

44

Redefine International P .L.C. 2017 Full Year Results Presentation

• City Point, Leeds fully let (+£0.3m in line with ERV)
• Two successful lettings at Reigate generating +£0.1m
• Remaining 22,640 sqft of vacant space

under negotiation at Bristol and Reigate

• Three London offjces located in areas of

signifjcant regeneration

• 5,950 sqft vacancy at Newington Causeway,

Southwark in discussion at attractive rents

• Three lease events at Charing Cross Road

+ £0.2m and +19% on passing rent

• Formal planning application underway
• Value +30.0% since acquisition

UK Offjces: 13% by market value

Signifjcant progress in strategic disposals of low growth regional offjces

Regional offjces Strong letting progress

Occupancy 95.8% (+530bps)

Charing Cross Road London offjces in performing locations

45

Redefine International P .L.C. 2017 Full Year Results Presentation

• Continuing undersupply
• Strongest rental growth anticipated from

‘standard’ units

• Forecast rental growth of 4.9%(1)
• Vacancy of c.1.0% in Crawley market
• 64.9% of rents subject to review in 2017
• Market evidence at £12–£14 per sqft vs ERV
• f £9.3 per sqft (average)
• 53,400 sqft single unit refurbishment completed
• Actively marketed

UK Distribution, industrial and automotive: 11% by market value

Ongoing imbalance between occupational supply and demand

(1) MSCI research.

Market overview Colchester Camino Park, Crawley

Valuation +36% since acquisition Focused on multi-let “last mile” distribution centres

46

Redefine International P .L.C. 2017 Full Year Results Presentation

UK Hotels: 16% by market value

Post year end IHL acquisition will increase to 21% of portfolio

Market outlook(1)

• 2017 has seen stronger than expected growth supported

by a weaker pound

• Growth in 2018 expected to continue albeit at a slower rate
• New hotel openings continue to be high with 7,000 new

rooms forecast for 2018

• RevPars remain fjrm backed by resilient corporate travel

and demand

• RevPars in London are anticipated to grow 2.4% (PwC)
• The 2018 events calendar and the arrival of Crossrail are

expected to be supportive

London Provinces A: Actual F: Forecast 2016A 2017F 2018F 2016A 2017F 2018F

Occupancy (%) 81 83 83 76 76 76 ADR (£) 139 145 148 69 71 72 RevPar (£) 114 120 123 52 54 55

% growth on previous year

Occupancy (0.9) 2.3 0.2 (0.3) 0.2 0.3 ADR (2.1) 3.6 2.2 3.3 2.4 2.0 RevPar (3.0) 6.0 2.4 3.0 2.5 2.3

(1) Source: Econometric forecasts: PwC August 2017. Benchmarking data: STR July 2007. 12.0 FY2014 14.4 FY2015 15.0 FY2016 22.8 FY2017 UK Hotels Acquisition – IHL (indicative) Acquisition – Edinburgh

Track record in growing UK Hotel income Gross annualised rent (£m)

47

Redefine International P .L.C. 2017 Full Year Results Presentation

• Focus on extending leases and enhancing

tenant mix

• Extensions to REWE and dm pharmacy units and

foodcourt refurbished at Schloss-Strassen Center, Berlin

• Primark to add €1.5m of additional rental income
• Strong investment demand for prime retail
• Investment market well supported
• Lack of good quality investment stock
• Interest rate outlook remains low

Europe: 27% by market value

Strong investment market and weak pound presents recycling opportunity

Shopping centres near full occupancy

98.8%

Market outlook remains supportive Developments

Ingolstadt handover to Primark in Q4 2017

48

Redefine International P .L.C. 2017 Full Year Results Presentation

Portfolio analysis

Portfolio summary

Annualised EPRA WAULT to EPRA % of portfolio by Market gross rental topped Reversionary 1st break occupancy % Values as at 31 August 2017 market value value (£m) Properties Area (m2) income (£m) ERV (£m) EPRA NIY up yield yield (yrs) (by ERV) Indexed

UK Shopping Centres 20% 316.5 6 156,105 26.2 27.1 6.4% 6.8% 8.0% 8.0 96.7% 27.5% UK Retail Parks 11% 169.9 5 51,734 11.4 10.8 5.8% 6.2% 6.0% 7.7 96.2% 4.7% UK Other Retail 2% 28.2 3 31,511 2.3 2.3 7.5% 7.5% 7.8% 16.6 100.0% — UK Retail 33% 514.6 14 239,350 39.9 40.2 6.3% 6.6% 7.3% 8.4 96.8% 19.4% UK Offjces – Greater London 6% 90.2 3 9,720 3.4 4.4 2.8% 3.3% 4.6% 5.1 95.9% 23.7% UK Offjces – Regions 7% 113.6 15 55,459 9.6 9.2 6.9% 7.7% 7.6% 3.5 95.8% 23.0% UK Distribution & Industrial 8% 117.6 4 102,572 6.3 7.5 4.8% 5.0% 6.0% 5.0 96.3% — UK Automotive 3% 42.8 36 16,671 2.9 2.3 6.3% 6.3% 5.0% 12.3 100.0% 100.0% UK Commercial 24% 364.2 58 184,422 22.2 23.4 5.1% 5.6% 6.0% 5.3 96.4% 26.6% Greater London & UK South portfolio 12% 184.4 7 29,426 11.9 12.5 6.0% 6.0% 6.4% 8.3 100.0% — Edinburgh 3% 39.1 1 7,250 2.6 3.0 6.1% 6.1% 7.1% 8.5 100.0% 3.4% Enfjeld Travelodge 1% 16.1 1 4,647 0.7 0.7 4.2% 4.2% 4.2% 29.9 100.0% 100.0% UK Hotels 16% 239.6 9 41,323 15.2 16.2 5.9% 5.9% 6.3% 9.3 100.0% 5.2% Total UK 73% 1,118.4 81 465,095 77.3 79.8 5.8% 6.1% 6.7% 7.7 97.3% 18.7% German Shopping Centres 12% 181.3 3 46,127 9.4 10.6 4.2% 4.3% 5.5% 4.8 99.4% 94.5% German Supermarkets and Retail Parks 15% 239.0 77 190,471 17.6 17.1 6.3% 6.3% 6.7% 7.2 98.4% 97.9% Europe 27% 420.3 80 236,598 27.0 27.7 5.4% 5.4% 6.2% 6.4 98.8% 96.7% Total 100% 1,538.7 161 701,693 104.3 107.5 5.7% 5.9% 6.6% 7.4 97.7% 38.9% Wholly owned 98% 1,513.1 157 688,584 102.6 105.8 5.7% 5.9% 6.5% 7.4 97.6% 38.7% Held in joint ventures (proportionate) 2% 25.6 4 13,109 1.7 1.7 6.4% 6.4% 6.6% 6.4 100.0% 52.2%

49

Redefine International P .L.C. 2017 Full Year Results Presentation

Top 20 assets

Top 20 assets make up >60% of total portfolio

% of Annualised EPRA WAULT to EPRA portfolio by Market gross rental topped 1st break occupancy % Values as at 31 August 2017 market value value (£m) Area (m2) income (£m) ERV (£m) EPRA NIY up yield (yrs) (by ERV) Indexed

Wigan, Grand Arcade 5.9% 90.8 40,807 7.6 6.9 6.5% 6.7% 8.6 93.7% 36.8% Berlin, Schloss-Strassen Center 5.5% 84.0 18,868 4.6 4.5 4.6% 4.6% 5.6 98.9% 89.2% Northampton, Weston Favell 5.4% 82.4 30,311 6.5 7.1 7.1% 7.2% 7.1 97.6% 49.1% Hamburg, Bahnhoff Altona 4.8% 73.9 15,042 4.2 4.1 5.1% 5.1% 4.1 99.6% 99.4% London, Harrow, St George’s 4.6% 70.1 20,117 4.8 5.0 5.0% 5.3% 4.7 98.5% 20.3% London, Charing Cross Road 3.8% 58.5 3,716 2.0 2.4 3.2% 3.2% 4.8 100.0% 40.5% Crawley, Camino Park Distribution Centre 3.7% 57.1 35,739 2.7 3.6 4.0% 4.5% 5.7 100.0% — Banbury, Banbury Cross Retail Park 3.3% 51.0 16,609 3.5 3.6 4.8% 6.2% 7.0 88.6% 15.5% London, Watford, The Arches Retail Park 3.0% 45.7 11,579 3.0 2.6 6.3% 6.3% 9.4 100.0% — Bridgwater, Express Park Distribution Centre 2.9% 44.7 47,207 2.8 2.9 5.9% 5.9% 4.3 100.0% — Top 10 42.9% London, Southwark Holiday Inn Express 2.6% 40.6 3,936 2.5 2.7 5.7% 5.7% 8.3 100.0% — Edinburgh, DoubleTree Hilton 2.5% 39.1 7,250 2.6 3.0 6.1% 6.1% 8.5 100.0% 3.4% London, Merton, Priory Retail Park 2.4% 36.8 6,256 2.1 1.9 5.3% 5.3% 8.2 100.0% — Warrington, Birchwood 2.0% 31.5 34,614 2.7 3.0 6.6% 7.0% 14.6 94.6% 2.8% London, Earl’s Court Holiday Inn Express 2.0% 31.4 2,781 2.0 2.2 5.9% 5.9% 8.3 100.0% — London, Limehouse Holiday Inn Express 2.0% 30.9 5,747 1.9 2.0 5.7% 5.7% 8.3 100.0% — London, Royal Docks Holiday Inn Express 1.6% 24.8 4,561 1.6 1.7 6.0% 6.0% 8.3 100.0% — Coventry, West Orchards 1.5% 23.7 19,522 3.1 3.5 6.6% 8.7% 7.7 98.1% — Ingolstadt, City Arkaden 1.5% 23.4 12,217 0.6 1.9 (0.4)% 0.8% 3.7 100.0% 100.0% Kilmarnock, Queens Drive Retail Park 1.5% 23.0 10,596 1.8 1.7 7.2% 7.2% 5.7 100.0% — Top 20 62.5%

50

Redefine International P .L.C. 2017 Full Year Results Presentation

Debt facilities

Principal debt Cost of Principal debt (proportionate) debt Group debt analysis as at 31 August 2017 Lender Currency £m £m Maturity (%)

AUK HSBC, RBS, Barclays, Santander GBP 293.0 293.0 Sep 2020 2.6% AUK facility 293.0 293.0 26 Esplanade Lloyds Bank GBP 17.6 8.8 Dec 2022 6.1% UK Offjces 17.6 8.8 Kwik Fit Portfolio Aviva GBP 10.0 10.0 Jun 2029 6.4% Petrol Filling Stations HSBC GBP 3.7 3.7 Jan 2019 4.2% UK Automotive 13.7 13.7 Aviva UK Shopping Centre Aviva GBP 145.9 145.9 Apr 2042 5.5% St George’s, Harrow Berlin Hyp GBP 37.6 37.6 Apr 2021 2.9% West Orchards, Coventry Santander GBP 11.6 11.6 Nov 2021 4.1% UK Retail 195.1 195.1 RBDL leased Hotels Portfolio Aareal Bank GBP 113.4 113.4 Nov 2021 2.6% UK Hotels 113.4 113.4 Europe Bahnhof Altona, Hamburg HSH Nordbank Euro 41.4 41.4 Feb 2024 2.7% Schloss-Strassen Center, Berlin HSH Nordbank Euro 57.1 57.1 Mar 2021 1.9% German Shopping Centres 98.5 98.5 Premium Portfolio Munchener Euro 16.4 16.4 Feb 2020 1.3% OBI Portfolio Bayern LB Euro 13.3 13.3 Dec 2022 1.6% Bremen/Lindenhoff Bayern LB Euro 3.2 3.2 Sep 2019 2.0% Leopard Portfolio Berlin Hyp, Bayern LB Euro 79.3 79.3 May 2020(1) 1.3% Waldkraiburg Bayern LB Euro 4.5 2.3 Jun 2024 1.7% Kaiserslautern Bayern LB Euro 3.6 1.8 Jun 2024 1.7% Hückelhoven Bayern LB Euro 6.8 3.4 Jun 2024 1.7% German Supermarkets & Retail Parks 127.1 119.7 Total 858.4 842.2 (1) £3.5m matures in 2019.

51

Redefine International P .L.C. 2017 Full Year Results Presentation

Reconciliation of underlying earnings

Company specifjc IFRS to Proportionately Consolidated EPRA adjustments adjustments Underlying Year ended 31 August 2017 (£m) Group JVs Total Group JVs EPRA earnings Group JVs earnings

Rental income 97.2 5.9 103.1 — — 103.1 — — 103.1 Rental expense (9.0) (0.6) (9.6) — — (9.6) — — (9.6) Net rental income 88.2 5.3 93.5 — — 93.5 — — 93.5 Other income 4.7 (2.0) 2.7 — — 2.7 — — 2.7 Administrative costs and other fees (15.3) (0.3) (15.6) — — (15.6) — — (15.6) Net operating income 77.6 3.0 80.6 — — 80.6 — — 80.6 Gain on revaluation of investment property, assets held for sale and listed shares 6.6 (0.9) 5.7 (6.6) 0.9 — — — — Gain on disposal of investment property and assets held for sale 10.7 — 10.7 (10.7) — — — — — Distributions from investments at fair value 0.2 — 0.2 — — 0.2 — — 0.2 Amortisation of intangible asset (0.2) — (0.2) 0.2 — — — — — Profjt from operations 94.9 2.1 97.0 (17.1) 0.9 80.8 — — 80.8 Finance Income 3.4 (2.7) 0.7 — — 0.7 — — 0.7 Finance expense (28.4) (1.3) (29.7) — — (29.7) 0.9 — (28.8) Other fjnance (expense)/income (6.5) 0.3 (6.2) 5.9 (0.3) (0.6) — — (0.6) Change in fair value of derivative fjnancial instruments 4.5 1.1 5.6 (4.5) (1.1) — — — — 67.9 (0.5) 67.4 (15.7) (0.5) 51.2 0.9 — 52.1 Net gain on sale of joint venture interests 4.9 — 4.9 (5.6) 0.7 — — — — Impairment reversal of loans to joint ventures 0.4 (0.4) — (0.3) 0.3 — — — — Net impairment of investment in associate (0.5) (0.5) 0.5 — — — Share of post tax profjt from associate 1.1 — 1.1 — — 1.1 — — 1.1 Share of post tax loss from joint ventures (2.3) 2.3 — — — — — — — Transfer of foreign currency translation on disposal

• f joint venture interest

2.0 — 2.0 — — 2.0 (2.0) — — Movement in losses restricted in joint ventures — (0.9) (0.9) — 0.8 (0.1) — — (0.1) Profjt before tax 73.5 0.5 74.0 (21.1) 1.3 54.2 (1.1) — 53.1 Taxation (3.9) (0.5) (4.4) 3.5 0.6 (0.3) — — (0.3) Profjt 69.6 — 69.6 (17.6) 1.9 53.9 (1.1) — 52.8 NCI (3.5) — (3.5) 0.5 — (3.0) — — (3.0) Profjt attributable to equity holders 66.1 — 66.1 (17.1) 1.9 50.9 (1.1) — 49.8 Number of shares outstanding (m) 1,828.1 1,828.1 1,828.1 Diluted weighted average number of shares outstanding (m) 1,811.9 1,811.9 1,811.9 Earnings per share (p) 3.6 2.8 2.75

52

Redefine International P .L.C. 2017 Full Year Results Presentation

Mike Watters CEO e: mwatters@redefjneinternational.com Stephen Oakenfull Deputy CEO e: soakenfull@redefjneinternational.com Donald Grant CFO e: dgrant@redefjneinternational.com Adrian Horsburgh Property Director e: ahorsburgh@redefjneinternational.com Janine Ackermann Head of Investor Relations e: jackermann@redefjneinternational.com Redefjne International P .L.C. 2nd Floor, 30 Charles II Street London SW1Y 4AE t: +44 (0) 20 7811 0100 Visit us online www.redefjneinternational.com @RedefjnePLC Redefjne International

Redefjne International team