Full Year Results Presentation Year ended 31 March 2020 - - PowerPoint PPT Presentation

Full Year Results Presentation

Year ended 31 March 2020

Introduction

Chris Grig g, CEO

2

• London offices leasing well

– 946,000 sq ft, 9% ahead of ERV – Developments 88% let, locking in £54m of rent – Offices value +2.3%; developments +7.5%

• Pragmatic approach to Retail leasing

– 1.4m sq ft leasing activity – Deals over one year 4% below passing rent – Occupancy high at 96% – Values down 26.1%

• EPS down 6.3% to 32.7p

– Impact of £1bn net sales of income producing assets since April 2018 – Challenging retail market

Resilient FY20 Performance

Broadgate

3

• Operating environment and outlook highly

uncertain

• Key market trends likely to accelerate

– More flexible ways of working – Further shift to online retail

• Strategy, focusing on campuses, informed by

many of these trends

– Modern buildings – Customer focused offer – Additional flexibility through Storey

• Resilient financial position

– Debt low and LTV 34% – £1.3bn undrawn facilities & cash – No need to refinance until 2024 – Temporary dividend suspension

4

Well positioned in uncertain times

Broadgate

• All but two Retail centres open

– Essential stores open c. 15% of total

• Campuses are open and all buildings

accessible

– Physical occupancy low – Most F&B, retail and leisure units closed

• Work recommenced at developments

following initial suspension

– All major sites now open, but with reduced workforce – 135 Bishopsgate completed, being fitted out – 100 Liverpool Street expected to complete calendar Q3 2020 – 1 Triton Square expected to complete calendar Q2 2021

5

Covid-19 Response

3

The Barcode, Plym outh Glasgow Fort

Financial Results

Sim on Ca rter, CFO

Results Overview

Und erly ing ea rnings p er sha re

• 6.3% v s Ma rch 19

EPRA Net Asset Va lue p er sha re

• 14.5% v s Ma rch 19

Portfolio v a lua tion

• 10 .1% v s Ma rch 19

(Reta il -26.1%, Offices +2.3%) Loa n to v a lue Incl: +340 bp s v a l’n d eclines, +210 bp s ca p ita l sp end Und ra w n fa cilities a nd ca sh No requirem ent to refina nce until 20 24

7

32.7p 774 p

£11.2 bn

34.0 %

£1.3 bn

Com m itted a nd com p leted d ev elop m ents p re-let 4.2p EPS a ccretion w hen fully let

8 8 %

8

Underlying earnings per share

34.9p 33.5p 32.7p (2.5p) 1.1p (1.5p) 1.4p (1.3p) 0.6p

2019 Net divestment & development Share buyback

• Excl. impact of

capital activity Like for like income incl. CVAs & admins Cost savings Covid-19 related provisions for tenant incentives & rent debtors IFRS 16 adoption & fee income 2020 Financing £6m Admin £7m

9

Net rental income

478 532 (33) (14) (7) (6) 3 3

2019 Net divestment Like for like incl. CVAs and admins Tenant incentive provisions Rental debtors provisions IFRS 16 adoption Developments and

• ther

2020

£m

Offices +0.8%1 Retail –5.1%1

1

1 Like for like is stated excluding the impact of surrender premia, CV19 provisions for tenant incentives and CV19 provisions for rental debtors

10

Income statement

Financial Year to 31 March 2019 2020 Change % Net rental income (£m) 532 478 (10.2%) Fees & other income (£m) 10 13 30.0% Administrative expenses (£m) (81) (74) (8.6%) Net finance costs (£m) (121) (111) (8.3%) Underlying Profit (£m) 340 306 (10.0%) Underlying earnings per share (p) 34.9 32.7 (6.3%) Dividend per share (p) 31.00 15.97 (48.5%)

11

Dividend policy guidance

• To protect the long term strength of the business, the dividend has been

temporarily suspended in response to Covid-19

• As a REIT, the dividend is an important element of shareholder return
• The Board is focussed on resuming dividends at an appropriate level as

soon as there is sufficient clarity of outlook

• Guiding principles:
• A significant improvement in rent collection
• More visibility on the post lockdown productivity of our assets, principally how

quickly retail customers and office workers return.

12

EPRA net asset value

905p 774p (137p) 33p (31p) 6p (2p)

Mar 19 Valuation performance Underlying Profit Dividends Share buyback Financing activity Mar 20

Valuation performance

Va lua tion £ m Va lua tion m ov em ent Yield m ov em ent ERV m ov em ent Total 11,157 +38bps

• 4.7%

Offices 6,773

• 4bps

+3.2% Retail 3,873 +101bps

• 11.7%

Residential 147 Canada Water 364

13

2.3% (10.1%) (26.1%) (2.7%) 9.8%

Market demand is expected to be softer in the short term, but supply for prime remains constrained, helping support rents Dev elop m ents £ 1.0 bn (+7.5%)

Office valuation performance

Sta nd ing Portfolio £ 5.8 bn (+1.2%) +3.2% ERV growth

• 4bps yield shift

£243m spend in period £83m valuation uplift

+2.3%

Offices FY20 valuation m ovem ent

14

97%

Office

• ccupancy

15

• 200

400 600 800 1,000 1,200 1,400 1,600 0% to -5%

• 5% to -15%
• 15% to -25%
• 25% to -30%
• 30% to -35%

More than -35% Shopping Centres Retail Parks Superstores Leisure High Street Dept Stores March ’20 Valuations (£’m)

Retail Valuation Movements

% Va lua tion Mov em ent in FY20

• 26.1%

Retail FY20 valuation m ovem ent

Valuers’ Covid-19 adjustments included:

• 3 months rent on all non-

essential retail deducted as a capital sum

• Non-contractual income deducted

as a capital sum for 6 month period

• Increasing yields by c.25-100 bps
• Increased void period
• Increased structural vacancy

On average accounted for a decline of c.6%

0.0 1.0 2.0 3.0 4.0 5.0 6.0 7.0 Total FY18 Q1 FY19 Q2 FY19 Q3 FY19 Q4 FY19 Q1 FY20 Q2 FY20 Q3 FY20 Q4 FY20 Admins - stores closing Admins - reduced rents CVAs - stores closing CVAs - reduced rents

Annualised contracted rent impact by Quarter (£’m)

12 m onths: £ 11m 12 m onths: £ 13m

CVAs & Admins

16

17

Retail Leasing Overview

• 1. Excludes temporary deals with terms of less than one year

96%

Retail occupancy

Fa shion & Bea uty

• 251k sq ft
• £5.5m headline rent
• (1%) vs passing
• 4.6 years average lease term
• 7 months average incentive

Genera l Reta il

• 212k sq ft
• £4.0m headline rent
• (11%) vs passing
• 6.9 years average lease term
• 17 months average incentive

Hom e & DIY

• 148k sq ft
• £2.5m headline rent
• (6%) vs passing
• 7.6 years average lease term
• 9 months average incentive

Food & Leisure

• 58k sq ft
• £1.2m headline rent
• +7% vs passing
• 8.4 years average lease term
• 4 months average incentive

Grocery & Conv enience

• 62k sq ft
• £0.9m headline rent
• +5% vs passing
• 14.0 years average lease term
• 12 months average incentive

Other Business

• 28k sq ft
• £0.2m headline rent
• (13%) vs passing
• 2.7 years average lease term
• 1 month average incentive
• 4%

vs previous passing rent1

British Land Footfall movement vs Benchmark1

% YoY BL Footfall Benchmark Outperformance (bps)

1 ShopperTrak UK National Index

• 0.2
• 0.2
• 1.2
• 8.0
• 78
• 4.4
• 4.6
• 5.8
• 12.6
• 85

FY20 Q1 FY20 Q2 FY20 Q3 FY20 Q4

+420 +440 +460 +460 +700

18

Footfall

Grocery anchored assets: -70% Post lockdown 23 Mar - 10 May

British Land LfL sales movement vs Benchmark1

% YoY BL LfL Sales Benchmark Outperformance (bps)

1 BRC KPMG In-Store LFL Non-Food Index

+520 +310 +270 +460

19

Retailer sales

1.1

• 0.1
• 1.1
• 8.4
• 82
• 4.1
• 3.2
• 3.8
• 13.0

FY20 Q1 FY20 Q2 FY20 Q3 FY20 Q4 Grocery anchored assets: -42% Post lockdown 23 Mar - 10 May

20

Covid-19: Rent collection and deferrals

As at 15th May Offices Retail1 Total Received 97% 43% 68% Rent deferrals 1% 40% 22% Rent forgiven 1% 4% 3% Moved to monthly

• 1%
• Outstanding

1% 12% 7% Total 100% 100% 100% Collection of adjusted billing2 99% 78% 91%

1 Includes non-office customers located within our London campuses. 2 Total billed rents exclusive of rent deferrals, rent forgiven and tenants moved to monthly payments.

Rent due since 2 March to 30 April

51% 4 9%

21

Our assessment of Covid-19 on our customers

In FY20 , incom e from low er im p a ct custom ers fully cov ered tota l Group p rop erty , a d m in a nd fina nce costs

Low er Im p a ct Typical sectors:

• Global Technology
• Financial Institutions
• Professional & Corporate
• Grocery & Convenience
• Government

93% Rent collected for period 2nd March – 30th April Hig her Im p a ct

Typical sectors:

• Food & Leisure
• Fashion & Beauty
• General Retail
• Travel & Media
• Home & DIY

39% Rent collected for period 2nd March – 30th April

Ov er a third of higher im p a ct businesses a re listed w ith a m a rket ca p of ov er £ 1bn 1

Based on contracted rents on proportionally consolidated basis

1 Market capitalisation as at 18th May

Strength of debt metrics

31 March 2019 31 March 2020 Undrawn Facilities and Cash £1.7bn £1.3bn No requirement to refinance until: 2022 2024 Loan to value (LTV)1 28.1% 34.0% Weighted Average Interest Rate1 2.9% 2.5% Interest Cover1 3.8x 3.8x Weighted Average Drawn Debt Maturity1 8.1yrs 7.5yrs Senior unsecured credit rating (Fitch) A A Unsecured debt covenants:

Net Borrowings not to exceed 175% of Adjusted Capital and Reserves

29% 40%

Net Unsecured Borrowings not to exceed 70% of Unencumbered Assets

21% 30% Valuation headroom 45%

22

1 Proportionally consolidated basis

23

2020 Sustainability Targets – key achievements

• Achieved or exceeded

– 73% reduction in carbon intensity (scope 1 and 2) vs 2009 baseline (target: 55%) – 55% reduction in landlord energy intensity vs 2009 baseline (target: 55%) – 1,745 people supported into jobs through Bright Lights, our skills and employment programme (target: 1,700)

• More challenging but excellent progress

– 96% electricity purchased from renewable sources (target: 100%) – 94% progress on our Local Charter (target: 100%) – Investing £2.8m in 2020 to make a positive difference to local communities

Young Readers, Ealing

24

New 2030 Environmental Commitments

• Net zero carbon portfolio by 2030

– All future developments to be net zero embodied carbon – 50% less embodied carbon on all major developments by 2030 – 75% less operational carbon across our portfolio by 2030

• Transition fund established

– From 2020 we will assume an internal carbon price of £60 per tonne for new developments – This will fund the offsetting of embodied emissions associated with developments through accredited offset schemes – The remaining amount will be paid into the Transition Fund to finance retrofitting of standing portfolio, including R&D

10 0 Liverpool Street

25

New 2030 Social Commitments

• Place based approach

– Partner with local stakeholders – Education and employment partnerships at each place – Underpinned by our Local Charter, comprising 5 key commitments to local communities

• Piloting our approach at three locations,

building on successful partnership model at Regent’s Place and Fort Kinnaird

Tree Shepherd, Canada Water

Looking forward

Chris Grig g, CEO

• Occupiers focused on getting back to the
• ffice
• Focus on transition to the “new

abnormal”…

– Occupancy will be phased and significantly reduced

• …and in the “new normal”

– Managing communal space, staggered hours of

• peration, more frequent deep cleans
• Businesses appreciate the benefits of the
• ffice

– Developing and maintaining culture and teams – Interacting with and serving customers/clients – Hiring, training, learning from experience – Social interaction, supporting mental health

27

Offices – working with our customers to get back to work

1 Triton Square, Regent’s Place

• Demand likely to focus on modern, high

quality space

– Particularly flagship (e.g. headquarter) space – Customers seeking more flexibility and focus on health/safety and well managed space – Further polarisation in terms of quality of space and customer services

• Some trends likely to reverse

– Reduced hot desking as employees value personal space – Trends towards greater densities likely to reverse – Working from home patterns will likely evolve

• Our campuses are well positioned

– Delivering modern, sustainable workspace with a focus on wellbeing – Control and management of public spaces

28

Offices – early thoughts on potential long term trends

Storey Club, Paddington

• Use of online retail has accelerated
• Changing consumer behaviour

– Likely more “mission based” shopping – Less dwell time, less browsing – Challenges for leisure / experiential operators

• Retail parks relatively better placed

– Open air centres more attractive to shoppers – Well located, easily accessible, facilitate instore fulfilment and Click & Collect

• Retail, F&B will remain an important part
• f our mixed use environments long term

– Key to creating attractive, vibrant London places

• Committed to achieving further selective

sales

29

Retail, early thoughts on near and long term view

SouthGate, Bath

• Key planning milestones achieved

– Resolution to grant outline planning for Masterplan – Confirmation that the Mayor of London will not call the application in for further consideration

• Next steps

– Expect to draw the headlease down over the summer – End 2020, earliest possible start on site, depending

• n prevailing conditions
• Future plans

– Resolution includes detailed consent on the first three buildings, capital spend of £330m – Initial discussions with potential partners on the whole scheme

30

Further good progress delivered at Canada Water

First Phase building

Outlook

Canada Water 1 Broadgate

31

• London Offices

– Occupier demand likely to be softer short term – Supply of prime likely to remain constrained for some time with developments postponed or delayed – Expect demand for modern, high quality and well located space to remain firm – Expect investment market to recover as confidence returns

• Retail

– Occupier market will remain challenging – Liquidity not expected to return to the multi-let investment markets in the short term – Investor demand for standalone assets remains relatively robust

Appendices

33

76 %

London & South East

£ 11.2 bn

(BL share)

A diverse, high quality portfolio

Other Retail (5%) London Campuses (49%) Residential & Canada Water (5%) Shopping Centres (14%) Standalone offices (11%)

Retail Parks (16%)

34

Near and longer term challenges & implications

Reta il Office

Near term

• Open air, well located centres will play a key role
• Increase in “mission-based” shopping
• Reduced dwell time, less browsing
• Likely decrease in experiential and leisure

activities

• Locations ability to support instore fulfilment,

particularly Click & Collect will be key to retailer networks

• Return to work likely to be phased
• Changes in commuting methods/patterns:

travel is a key challenge

• Careful management of communal space,

including lifts and meeting rooms will be essential

• Hotdesking will decline, space per employee

likely to rise

• Majority of meetings likely to remain virtual

Long term

• Significant, permanent shift to online likely to

accelerate

• Retailers likely to refine and focus networks on

stores which best enable distribution and fulfilment (including Click & Collect)

• Evolution of lease structures, potential continued

increase in turnover leases but with linkage to

• nline fulfilment
• Flexible working trend likely to continue, with

increased working from home

• Workspace and face-to-face interaction remains

key for culture, attracting best talent, training and maintaining client/customer relationships

• Increased space per employee
• Focus on health / safety and property

management

35

Storey roll out

Current Locations Forthcoming Locations

36

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

Source: CACI Retail Footprint 2019, BL Insight team Note that population reach includes Broadgate

BL centres BL asset catchments

Potential to reach

c.50 %

• f the population2

Annual footfall1 of

295m

Average rent to sales ratio2

9%

Occupancy cost ratio2

14%

1 For the 12 month period to 31 March 2020 2 For the 12 month period to 30 September 2019

37

BL footfall performance vs benchmark

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

45 50 55 60 65 70 75 80 85 90 95 100 105 110 115 120 Jul-10 Jan-17 Jan-14 Jan-15 Jan-13 Jul-14 Jul-11 Jan-10 Jul-15 Jul-12 Jan-11 Jan-12 Jan-20 Jan-18 Jul-13 Jul-17 Jul-18 Jul-16 Jan-19 Jan-16 Jul-19

BL Index

Outperformance for 12m to Mar 2020

+460 bps

38

Major retail property holdings

As at 31 March 2020 BL Share % Sq ft 000’s Rent (100%) £m pa1,4 Occupancy Rate %2,4 Lease Length yrs3,4 1 Meadowhall, Sheffield 50 1,500 82 96.1 4.9 2 Drake's Circus, Plymouth 100 1,190 20 90.1 6.3 3 Glasgow Fort 78 510 20 96.1 5.7 4 Ealing Broadway 100 540 15 92.1 3.8 5 Teesside, Stockton 100 569 16 96.5 3.8 6 Speke, New Mersey 68 502 14 94.4 5.7 7 Kingston Centre, Milton Keynes 100 380 8 90.4 7.0 8 Serpentine Green, Peterborough 100 337 8 99.6 6.7 9

• St. Stephen’s, Hull

100 552 9 97.7 3.9 10 Fort Kinnaird, Edinburgh 39 560 19 92.1 5.1

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

39

Custom er Orienta tion

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

Right Pla ces

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

Ca p ita l Efficiency

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

Exp ert Peop le

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

Pla ces Peop le Prefer

By m a na ging our business to be resilient, susta ina ble a nd resp onsiv e, w e crea te end uring d em a nd for our p rop erties a nd v a lue for our sta kehold ers

40

Broadgate Campus

2 FA & 3 FA

• 2FA & 3FA - Innovation cluster inc. 51k sq ft
• f Storey space
• 3FA – UBS surrendered lease in Jan 2018. ‘Light

touch’ refurb completed

• Current size: 250k 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, 29k sq ft to Workday

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

135 Bishopsgate

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

148k sq ft to McCann, 44k sq ft to Eataly

• Size: 335k sq ft
• PC’d: Q1 2020

1 Broadgate

• Current size: 330k sq ft
• Potential size: 538k sq ft
• Planning permission secured March 2019

100 Liverpool Street

• Pre-let 184k sq ft to SMBCE, 71k sq ft to Milbank

LLP, 60k sq ft to BMO, 40k sq ft to Peel Hunt

• Current size: 380k sq ft
• Redevelopment: 524k sq ft
• Completion: Q3 2020

8 3% of Broadgate com pleted and com m itted developm ents pre-let

41

Paddington Central Campus

42

Regent’s Place Campus

43

Top 20 occupiers & occupier split by industry

As at 31 March 2020 % of Retail Rent

Tesco plc1 7.8 Next plc 4.9 Kingfisher 3.6 Walgreens (Boots) 3.5 M&S Plc 2.8 J Sainsbury 2.6 Dixons Carphone 2.5 Debenhams 2.5 Frasers 2.4 JD Sports 2.2 TJX (TK Maxx) 2.1 Arcadia Group 2.0 New Look 1.9 Asda Group 1.7 Virgin 1.6 TGI Fridays 1.5 Steinhoff 1.5 H&M 1.4 Hutchison Whampoa Ltd 1.4 DFS Furniture 1.3

Occupier Split by Industry (%)

1 Includes £3.4m at Surrey Quays Shopping Centre 2 Taking into account their pre-let of 310,000 sq ft at 1 Triton Square, % contracted rent would rise to

13.0%. As part of this new 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.

Banks & Financial services 13% General Retail 14% Fashion & Beauty 18% TMT 13% Food / Leisure 11% Professional & Corporate 9% Grocery & Convenience 7% Home & DIY 6% Other 9%

Retail Top Occupiers Offices Top Occupiers

As at 31 March 2020 % of Office Rent

Facebook 7.8 Government 6.4 Dentsu Aegis2 4.4 Visa 4.0 Herbert Smith Freehills 3.2 Gazprom 2.5 Microsoft Corp 2.4 Vodafone 2.0 Tullett Prebon 2.0 Deutsche Bank 1.9 Henderson 1.7 Reed Smith 1.7 The Interpublic Group (McCann) 1.6 Mayer Brown 1.4 Skyscanner 1.3 Mimecast Ltd 1.3 Credit Agricole 1.2 Aramco 1.2 Kingfisher 1.2 Monzo Bank 1.1

44

Capital Activity

Since 1 April 2019 Offices £m Retail £m Residential £m Canada Water £m Total £m Purchases 86 13 19

• 118

Sales1

• (296)

(86)

• (382)

Development Spend 243 9 5 25 282 Capital Spend 69 34

• 103

Net Investment 398 (240) (62) 25 121 Gross Investment 398 352 110 25 885

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

1Includes Clarges residential sales of £86m, of which £6m exchanged prior to FY20 and completed in the period

45

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

• 400

800 1,200 1,600

Capital Activity

£45m FY16 FY17 (£502m) FY18 (£739m)

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

(£752m) FY19 £121m FY20

Gross investment activity since April 2018

£ 2.7bn

46

Purchases

Since 1 April 2019 Sector Price (100%) £m Price (BL Share) £m Annual Passing Rent £m1 Completed West One, London Offices 217 54 2 6 Orsman Road, Haggerston Offices 32 32 2 Aldgate Place, Phase 2 Residential 19 19

• Former ToysRus unit, Stockton-on-Tees

Retail 8 8

• Sainsbury’s, Burton upon Trent

Retail 5 5 1 Total 281 118 5

1 BL share of annualised rent topped up for rent frees

47

Sales

1 BL share of annualised rent topped up for rent frees 2 £6m of which exchanged prior to FY20 and completed in the period

Since 1 April 2019 Sector Price (100%) £m Price (BL Share) £m Annual Passing Rent £m1 Completed Portfolio of Sainsbury’s stores Retail 522 246 15 David Lloyd, Croydon Retail 22 22 1 Homebase, Walton on Thames Retail 20 20 1 Debenhams, Bournemouth Retail 8 8 1 Clarges2 Residential 86 86

• Total

658 382 18

48

Clarges Residential Unit Sales

Number of units £m Completed in FY18 2 24 Completed in FY19 23 335 Completed in FY20 8 86 Total Completed 33 445 Units remaining 1 3 Total 34 448

49

Illustrative future income profile breakdown (cash basis)

For the year to 31 March 2021 2022 2023 2024 2025 Total Accounting Basis As at 31 March 2020 £m £m £m £m £m £m Current Passing Rent 516 522 Contracted uplifts4 36 15 7 1 2 61 Pre-lets of Committed Developments1 15 22

• 37

31 Contracted rent 614 553 Sales exchanged post year end

• Letting of completed developments

4

• 4

3 Lease Expiries – Development pipeline (5) (1) (1)

• (7)

(8) Letting of Committed Developments1 – speculative 4 1

• 5

4 Letting of Near Term Developments1

• 29
• 20

49 40 RPI Linked Leases2 1 1 1 1 1 5 6 Reversion3

• 8

(1) (3) (1) 3 2 Vacancies 27 27 23 700 623 Letting of Medium Term Developments (excl. Canada Water & Eden Walk) 79 62

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 2.6% per annum 3 Includes reversion on expiries and open market rent reviews within 5 years 4 Includes £8m agreement for lease rents

50

Gross rental income1

Accounting Basis £m 12 months to 31 March 2020 Annualised as at 31 March 2020 Group JVs & Funds Total Group JVs & Funds Total West End 155 1 156 144 2 146 City 15 69 84 7 63 70 Offices 170 70 240 151 65 216 Retail Parks 94 58 152 90 55 145 Shopping Centre 64 52 116 61 49 110 Superstores 5 5 10 5 2 7 Department Stores 7

• 7

5

• 5

High Street 6

• 6

6

• 6

Leisure 15 1 16 14 1 15 Retail 191 116 307 181 107 288 Residential2 4

• 4

4

• 4

Canada Water 9

• 9

8

• 8

Total 374 186 560 344 172 516

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

51

Underlying Profit Bridge

340 317 306 (23) (14) 13 (7) (6) 3

2019 Net divestment & developments

• Excl. impact of

capital activity Like for like incl. CVAs and admins Cost savings Tenant incentive provisions Rental debtors provisions IFRS 16 adoption &

• ther

2020

£m

52

Administrative expenses

Financial Year to 31 March 2019 £m 2020 £m Personnel costs 54 50 Share scheme costs (3) (3) Other administrative expenses 36 33 Total 87 80 Capitalised costs (6) (6) Total administrative expenses 81 74

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

Operating costs metric

Financial Year to 31 March 2019 £m 2020 £m Property operating expenses 45 83 Administrative expenses 80 73 Net fees and other income (10) (13) Ground rent costs and operating expenses de facto included in rents (9) (16) EPRA Costs (including direct vacancy costs) 106 127 Gross rental income 576 560 Ground rent costs and operating expenses de facto included in rents (9) (20) Gross Rental Income (EPRA basis) 567 540 EPRA Cost Ratio (including direct vacancy costs) 18.7% 23.5% Impairment of tenant incentives and guaranteed rent increases

• 20

Adjusted EPRA Cost ratio (including direct vacancy costs and excluding impairment of tenant incentives and guaranteed rent increases) 18.7% 19.8%

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

Reconciliation of Underlying Profit

Financial Year to 31 March 2019 £m 2020 £m IFRS loss after tax attributable to shareholders (291) (1,027) Net valuation loss 683 1,389 Profit on disposal of investment and trading properties (77) (18) Capital financing costs 67 63 Non-controlling interests (41) (99) Taxation (1) (2) Underlying Profit and EPRA Earnings 340 306

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.

55

Number of shares

As at 31 March 2019 (m) 31 March 2020 (m) IFRS Basic Weighted average1 971 934 IFRS Diluted Weighted average2 971 934 Underlying/EPRA diluted Weighted average3 974 937 Year/Period end4 956 932

1 For use in IFRS basic earnings per share. 2 For use in IFRS diluted earnings per share. A loss in the current and prior periods results in an anti-dilutive effect, therefore no adjustment has been made for the dilutive effect of share options. 3 For use in Underlying/EPRA diluted earnings per share. 4 For use in EPRA NAV per share and EPRA NNNAV per share.

56

EPRA balance sheet

31 March 2019 Group JVs & Funds 31 March 2020 Total properties (£m) 12,316 7,903 3,274 11,177 Adjusted net debt (£m) (3,521) (3,010) (844) (3,854) Other net liabilities (£m) (146) (50) (60) (110) EPRA Net Assets (£m) 8,649 4,843 2,370 7,213 Loan to value (LTV)1 28.1% 34.0% Weighted average interest rate 2.9% 2.5% Interest cover 3.8x 3.8x Weighted average maturity of drawn debt (years) 8.1 7.5

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

57

Reconciliation of EPRA NAV & NNNAV

31 March 2019 31 March 2020 £m Pence £m pence IFRS Net Assets 8,689 916 7,147 771 Deferred tax arising on revaluation movements 5 6 Mark to market on derivatives and related debt adjustments 113 141 Adjust to fully diluted on exercise of share options 24 18 Surplus on trading properties 29 13 Non-controlling interests (211) (112) EPRA NAV 8,649 905 7,213 774 Deferred tax arising on revaluation movements (11) (9) Mark to market of debt and derivatives (477) (442) EPRA NNNAV 8,161 854 6,762 726

58

New EPRA Best Practice Recommendations

At 31 March 2020 £m Pence EPRA NAV 7,213 774 Purchasers’ costs 659 EPRA NRV1 7,872 845 EPRA NAV 7,213 774 Intangibles (11) EPRA NTA1 7,202 773 EPRA NNNAV 6,762 726 EPRA NDV2 6,762 726

EPRA published its latest Best Practices Recommendations in October 2019 which included three new Net Asset Valuation metrics, namely EPRA Net Reinstatement Value (NRV), EPRA Net Tangible Assets (NTA) and EPRA Net Disposal Value (NDV). These metrics are effective from 1 January 2020 but have been presented below as at 31 March 2020 to provide a comparison to the current measures, EPRA NAV and EPRA NNNAV.

1 The new EPRA guidance states that deferred taxes expected to crystallize should no longer be excluded. The group will conduct a review of such items upon adoption of the

guidance but does not expect any resulting EPRA adjustment to be material.

2 As the Group’s EPRA NDV is the same as the EPRA NNNAV, there are no reconciling items.

59

Gross and net debt reconciliation

As at 31 March 2020 Group £m JVs & Funds £m Less non- controlling interests £m Total £m Gross Debt (principal) (3,294) (977) 113 (4,158) IFRS adjustments: Issue costs and premia 11 2 (1) 12 Fair value hedge adjustments (222)

• (222)

Other items 3

• 3

IFRS gross debt (3,502) (975) 112 (4,365) Market value of derivatives 62 (9) 1 54 Cash 193 131 (8) 316 IFRS net debt (3.247) (853) 105 (3,995) Adjustments: Remove market value of derivatives (52) Remove fair value hedges 196 Other adjustments (3) Adjusted net debt (3,854)

60

Loan to value (LTV)

As at 31 March 2019 £m Valuation movement Acquisitions Capital spend Disposals Share buyback Other As at 31 March 2020 £m Total properties 12,316 (1,304) 119 386 (371)

• 11

11,157 Other investments & PPE 151 (12)

• 11

(19)

• 131

LTV assets 12,467 (1,316) 119 397 (390)

• 11

11,288 Adjusted net debt 3,521

• 119

388 (382) 125 83 3,854 Other (19)

• 7

(12) LTV liabilities 3,502

• 119

388 (382) 125 90 3,842 LTV 28.1% 3.4% 0.7% 2.1% (2.2%) 1.0% 0.9% 34.0%

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.

61

Debt metrics

Proportionally Consolidated 31 March 2019 31 March 2020 Loan to value (LTV) 28.1% 34.0% Weighted average interest rate 2.9% 2.5% Interest cover 3.8x 3.8x Weighted average maturity of drawn debt 8.1yrs 7.5yrs Group 31 March 2019 31 March 2020 Loan to value (LTV) 22.2% 28.9% Available undrawn facilities £1.5bn £1.1bn Weighted average interest rate 2.2% 1.9% Interest cover 6.3x 5.8x Senior unsecured credit rating (Fitch) A A

62

• 200

400 600 800 1,000 1,200 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036 2037 2038

Financial Year ending 31 March

Debt maturity

£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)

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. Includes post year end financing activity: 1. extension of RCF to FY 2026, 2. refinance of HUT bank loan to FY 2024

63

Debt financing – diverse profile

• Issued £100m 2034 USPP floating rate note
• Completed first ESG linked RCF at £450m with initial 5

year term

• Extended additional £925m of committed bank facilities

by 1 year

• No requirement to refinance until 2024
• LTV increased by 590bps to 34.0%2

– Valuation declines +340bps – Development spend +210bps

• Weighted average interest rate new low of 2.5%2
• Weighted average drawn debt term maturity 7.5 years2
• Post year end, refinanced HUT bank loan to December

2023 and extended £525m of RCFs by a further year

£4.2bn Drawn Debt1 (31 March 2020)

1 Proportionally consolidated. HUT’s debt shown at our share (£0.4bn) within Funds. 2 On a proportionally consolidated basis

£0.7bn £0.8bn £0.4bn £0.3bn £0.6bn £1.0bn £0.4bn Bank RCFs Drawn US Private Placements Convertible Bond Sterling Bond Debenture & loan notes JVs Securitisations Funds Loans Unsecured Secured

64

Portfolio valuation by sector

At 31 March 2020 Group JVs & Funds Total Change %1 £m £m £m H1 H2 FY West End 4,151 53 4,204 (0.1) 1.5 1.4 City 300 2,269 2,569 1.3 2.5 3.7 Offices 4,451 2,322 6,773 0.4 1.9 2.3 Retail Parks 1,115 724 1,839 (12.4) (18.8) (28.7) Shopping Centre 753 757 1,510 (11.8) (19.8) (29.2) Superstores 89

• 89

(1.5) (7.7) (4.7) Department Stores 33

• 33

(10.5) (33.3) (40.3) High Street 133 1 134 (9.7) (11.0) (19.8) Leisure 249 19 268 0.8 (8.4) (7.1) Retail 2,372 1,501 3,873 (10.7) (18.2) (26.1) Residential2 147

• 147

(2.1) (0.6) (2.7) Canada Water 364

• 364

12.4 (1.6) 9.8 Total 7,334 3,823 11,157 (4.3) (6.3) (10.1) Standing Investments 6,593 3,432 10,025 (5.2) (7.4) (12.0) Developments 741 391 1,132 4.6 2.3 6.5

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

Valuation movement – Offices

Financial Year to 31 March 2020 Valuation £m Change £m Change %1 Yield movement Bps2 ERV movement %2 West End 4,204 59 1.4

• 2.4

City 2,569 92 3.7 (14) 4.5 Offices 6,773 151 2.3 (4) 3.2

Ca m p uses rep resent 8 1% of the Offices p ortfolio

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

66

Valuation movement – Retail

Financial Year to 31 March 2020 Valuation £m Change £m Change %1 Yield movement bps2 ERV movement %2 Retail Parks 1,839 (755) (28.7) +117 (13.6) Shopping Centre 1,510 (623) (29.2) +99 (10.2) Total 3,349 (1,378) (28.9) +109 (12.1) Other 524 (99) (11.2) +46 (8.4) Retail 3,873 (1,477) (26.1) +101 (11.7)

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

Shop p ing Centre a nd Reta il Pa rks rep resent 8 6% of the Reta il p ortfolio

67

Portfolio net yields1,2

As at 31 March 2020 EPRA net initial yield % EPRA topped up net initial yield %

3

Overall topped up net initial yield %

4

Net equivalent yield % Net equivalent yield movement bps Net reversionary yield % ERV Growth %

5

West End 3.5 4.1 4.1 4.3

• 4.8

2.4 City 3.2 4.0 4.0 4.5 (14) 5.3 4.5 Offices 3.4 4.1 4.1 4.4 (4) 5.0 3.2 Retail Parks 7.0 7.2 7.3 7.0 117 6.8 (13.6) Shopping Centre 6.1 6.2 6.3 6.4 99 6.4 (10.2) Superstore 6.9 6.9 6.9 5.7 38 5.6 (9.8) Department Store 15.6 15.6 22.9 9.2 185 10.4 (19.8) High Street 3.8 4.0 4.0 5.5 57 5.9 (9.8) Leisure & Other 5.3 5.4 6.0 5.8 22 5.1 (1.2) Retail 6.5 6.6 6.9 6.6 101 6.5 (11.7) Canada Water 3.4 3.4 3.4 4.0 25 4.0 (5.8) Total 4.6 5.1 5.2 5.2 38 5.5 (4.7)

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) 5 As calculated by IPD

68

Portfolio weighting

As at 31 March 2020 2019 % 2020 % 2020 £m West End 33.0 37.7 4,204 City 18.2 23.0 2,569 Offices 51.2 60.7 6,773 Retail Parks 21.0 16.5 1,839 Shopping Centre 17.2 13.5 1,510 Superstores 2.7 0.8 89 Department Stores 0.6 0.3 33 High Street 1.4 1.2 134 Leisure 2.4 2.4 268 Retail 45.3 34.7 3,873 Residential1 1.0 1.3 147 Canada Water 2.5 3.3 364 Total 100.0 100.0 11,157 Of which London 61% 71% 7,878

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

1 Standalone residential

69

Lease length and occupancy

As at 31 March 2020 Average Lease Length (yrs) Occupancy Rate (%) To Expiry To Break EPRA Occupancy Occupancy1,2,3 West End 6.4 5.4 97.6 97.7 City 7.5 6.3 85.4 96.6 Offices 6.8 5.7 92.9 97.3 Retail Parks 6.8 5.5 94.1 96.1 Shopping Centre 6.6 5.2 94.2 95.6 Superstores 6.9 6.8 100.0 100.0 Department Stores 18.1 9.1 97.9 97.9 High Street 4.7 4.0 91.7 92.1 Leisure 14.6 14.3 93.1 93.1 Retail 7.3 5.9 94.2 95.7 Canada Water 4.9 4.7 97.7 97.9 Total 7.0 5.8 93.6 96.6

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 96.6% to 97.1% 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 95.7% to 94.7%, and total occupancy would reduce from 96.6% to 96.0%

70

Annualised rent & estimated rental value (ERV)

As at 31 March 2020 Annualised Rents (Valuation Basis) £m1 ERV £m Average Rent (£psf) Group JVs & Funds Total Total Contracted2 ERV West End3 136 2 138 191 62.8 69.4 City3 6 64 70 118 50.3 63.1 Offices3 142 66 208 309 58.0 66.9 Retail Parks 91 58 149 140 25.0 22.9 Shopping Centre 62 51 113 116 29.7 29.9 Superstores 7

• 7

5 21.0 17.1 Department Stores 6

• 6

4 6.6 4.6 High Street 6

• 6

9 13.1 18.6 Leisure 14 1 15 15 17.1 16.3 Retail 186 110 296 289 24.1 23.0 Residential4 4

• 4

4 44.7 37.4 Canada Water5 8

• 8

9 17.7 20.5 Total 340 176 516 611 30.9 33.4

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 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 2021 2022 2023 2024 2025 2021–23 2021–25 As at 31 March 2020 £m £m £m £m £m £m £m West End 17 9 23 7 16 49 72 City 11

• 15

11 11 37 Offices 28 9 23 22 27 60 109 Retail Parks 17 11 14 6 6 42 54 Shopping Centre 12 7 12 7 4 31 42 Superstores

• 1

3

• 4

Department Stores

• 1

2

• 1

3 High Street

• 1
• 1

1 Leisure

• 1
• 1

Retail 29 18 28 16 14 75 105 Residential

• 1
• 1

1 Canada Water1

• Total

57 28 51 38 41 136 215

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 2021 2022 2023 2024 2025 2021-23 2021-25 As at 31 March 2020 £m £m £m £m £m £m £m West End 13 29 17 14 16 59 89 City 12 3 4 12 6 19 37 Offices 25 32 21 26 22 78 126 Retail Parks 17 11 16 25 12 44 81 Shopping Centre 14 14 14 14 7 42 63 Superstores

• 2
• 2

2 Department Stores

• 3
• 3

3 High Street 2 1 1 1 1 4 6 Leisure

• Retail

33 29 33 40 20 95 155 Residential 3

• 3

3 Canada Water1 1 1 1 2

• 3

5 Total 62 62 55 68 42 179 289 % of contracted rent 10.9 10.8 9.6 11.8 7.4 31.3 50.5

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 2021 2022 2023 2024 2025 2021-23 2021-25 As at 31 March 2020 £m £m £m £m £m £m £m Expiry of rent free periods 29 15 4

• 48

48 Fixed uplifts (EPRA basis) 1

• 1

1 Fixed & minimum uplifts

• 1

3

• 2

4 6 Total 30 16 7

• 2

53 55

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 2020 Offices Retail Total % British Land IPD British Land IPD British Land IPD Capital Return 2.5 (0.5) (27.3) (14.5) (10.3) (4.8) – ERV Growth 3.2 1.3 (11.7) (5.8) (4.7) (1.0) – Yield Movement1 (4 bps) (2 bps) 101 bps 59 bps 38 bps 18 bps Income Return 3.1 3.8 6.2 5.4 4.3 4.5 Total Property Return 5.7 3.3 (22.6) (9.8) (6.4) (0.4)

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

1 Broadgate 538,000 sq ft 135 Bishopsgate 335,000 sq ft PC’d Q1 2020

Near term pipeline Medium term pipeline

• excl. Canada Water

Norton Folgate 336,000 sq ft

• ERV of £62m
• 88% pre-let
• ERV of £49m
• All schemes consented

1 Triton Square 366,000 sq ft Completion Q2 2021 Aldgate Place, Phase 2 133,000 sq ft

Medium term pipeline

• excl. Canada Water

2-3 Finsbury Avenue 563,000 sq ft 5 Kingdom Street 438,000 sq ft Eden Walk, Kingston 452,000 sq ft 100 Liverpool Street 524,000 sq ft Completion Q3 2020

76

As at 31 March 2020 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 171

• 8.3

7.0 135 Bishopsgate Office 50 335 Q1 2020 214

• 9.7

8.7 Plymouth (Leisure) Retail 100 108 Q4 2019 26 2 1.8 1.2 Total Completed in the Year 730 411 2 19.8 16.9 100 Liverpool Street Office 50 524 Q3 2020 378 27 19.3 15.4 1 Triton Square3 Office 100 366 Q2 2021 385 49 22.6 21.8 Total Committed 890 763 76 41.9 37.2 Other Capital Expenditure4 57

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 2020. 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

As at 31 March 2020 Sector BL Share Sq ft Earliest 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 100 336 Q3 2020 95 280 22.0

• Consented

1 Broadgate Office 50 538 Q2 2021 96 230 20.0

• Consented

Aldgate Place, Phase 2 Residential 100 133 Q4 2020 37 95 7.0

• Consented

Total Near Term 1,007 228 605 49.0

• Other Capital Expenditure3

22

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 2020. 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 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

As at 31 March 2020 Sector BL Share Sq ft Planning status % '000 Medium term Pipeline 5 Kingdom Street1 Office 100 438 Submitted 2-3 Finsbury Avenue Office 50 563 Consented Eden Walk Retail & Residential Mixed Use 50 452 Consented Ealing – 10-40 The Broadway Retail 100 303 Pre-submission Gateway Building Leisure 100 105 Consented Canada Water2 Mixed Use 100 5,000 Resolution to grant planning Total Medium Term 6,861

79

Estimated future development spend and capitalised interest

As at 31 March 2020 PC Calendar Year Cost to Come £m (excluding notional interest) – 6 months breakdown Sept-20 Mar-21 Sept-21 Mar-22 Sept-22 Mar-23 Sept-23 Mar-24 Total Plymouth (Leisure) Q4 2019 2

• 2

Total Completed 2

• 2

100 Liverpool Street Q3 2020 9 18

• 27

1 Triton Square Q2 2021 18 26 5

• 49

Total Committed 27 44 5

• 76

Norton Folgate 2023 10 30 45 60 67 40 28

• 280

1–2 Broadgate 2025 4 4 22 19 29 35 36 32 181 Aldgate Place, Phase 2 2023 5 10 24 28 20 6 1 1 95 Total Near Term 19 44 91 107 116 81 65 33 556 Indicative Interest Capitalised

• n above at attributable rates

4 3 3 3 4 5 4 2

80

Canada Water – Illustrative Scheme

Ma sterp la n First d eta iled p lots Resolution to grant planning received 30th September 2019 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 Resolution to grant planning Outline masterplan Detailed first phase

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 24

Central London development pipeline – delayed by Covid-191

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

1 CBRE Covid-19 impact (assumes completion of all space under construction delayed by six months and only 25% of proposed space will complete within 5 years).

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

Q2 20 20

83

2 4 6 8 10 12 14 16 18 20 1985 1990 1995 2000 2005 2010 2015 Q1 2020

Vacancy Central London

5.2% 3.3%

Source: CBRE (historic)

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

W est End & City Va ca ncy Ra tes

84

2020 Sustainability Targets: FY20 performance

FY20 2020 Target

Futureproofing

Capital efficiency

Achieved: 100% 100% of current new developments on track to achieve BREEAM Excellent/Very Good Achieved: 55% 55% improvement in landlord energy efficiency vs 2009 baseline 96% 100% of electricity to come from renewable sources Achieved: 73% 55% improvement in carbon efficiency vs 2009 baseline Achieved: 16% 15% reduction capital carbon emissions vs concept (embodied carbon) 2 Trial 3 visible interventions to improve local air quality 1% to landfill Zero waste to landfill

Skills and

• pportunity

Expert people

Achieved: 1,745 1,700 people supported into employment (cumulative) 2.1% 3% of BL workforce and priority tier 1 and 2 suppliers to be apprentices 96% 100% strategic suppliers signed up to new code of conduct Piloted Pilot a Living Wage Zone at a London campus 100% / 78% 100% BL and supplier workforce at managed assets paid Living Wage

Wellbeing

Customer orientation

On track Achieve WELL Certification on 100 Liverpool Street Achieved 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

94% Fully implement Local Charter at staffed assets and major developments 19% 20% employee skills-based volunteering 68% 90% employee volunteering

85

FY 20 19 p erform a nce

Sustainability Indices Performance

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

Global Real Estate Sustainability Benchmark 2019: Green star for 10th year FTSE4Good 2019: 98th percentile Sustainalytics ESG Ratings 2019: 96th percentile Carbon Disclosure Project 2019: B 2018: A- EPRA Sustainability Reporting Awards 2019: Gold for 8th year MSCI ESG Ratings 2019: AAA rating

Other benchm a rks a nd a w a rd s

86

Disclaimer

The information contained in this presentation has been extracted largely from the Full Year Results Announcement for the year ending on 31 March 2020. 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

• ral 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. These forward-looking statements include all matters that are not historical fact. Such statements reflect current views, intentions, expectations, forecasts and beliefs of British Land concerning, among other things, our markets, activities, projections, strategy, plans, initiatives, objectives, performance, financial condition, liquidity, growth and prospects, as well as assumptions about future events, 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, the future tense, or the use of ‘forward-looking’ terminology, including terms such as ‘believes’, ‘considers’, ‘estimates’, ‘anticipates’, ‘expects’, ‘forecasts’, ‘intends’, ‘continues’, ‘potential’, ‘due’, ‘potential’, ‘possible’, ‘plans’, ‘seeks’, ‘projects’, ‘budget’, ‘goal’, ‘guidance’, ‘trends’, future’, ‘outlook’, ‘schedule’, ‘budget’, ‘target’, ‘aim’, ‘may’, ‘likely to’, ‘will’, ‘would’, ‘could’, ‘should’ or similar expressions or in each case their negative or

• ther 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 and depend on circumstances which may or may not

• ccur and may be beyond our ability to control, predict or estimate. 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 in or implied by such forward-looking statements. 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 or 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, the EU Market Abuse Regulation and the requirements of the Financial Conduct Authority and the London Stock Exchange), British Land does not intend or 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 (regardless of whether those forward-looking statements are affected as a result). Important factors that could cause actual results, performance, developments or achievements of British Land to differ materially from any outcomes or results expressed in or implied by such forward-looking statements include (among other things) business, economic and regulatory changes, as well as those risks which are set out in the ""Effective Risk Management" section of British Land's latest annual report and accounts (which can be found at www.britishland.com) (as updated or supplemented by the "Risk Management and Principal Risks" and the "Forward-looking statements" sections of the Full 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 or 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 expressed or implied or the basis on which they were prepared, or their achievement or reasonableness, 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). 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 other 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

• r any of associates, directors, officers, employees or advisers for the accuracy or completeness of such information. The distribution of this presentation in jurisdictions other 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. All opinions expressed in this presentation are subject to change without notice and may differ from opinions expressed elsewhere. This presentation has been presented in £, £ms and £bns. Certain totals and change movements are impacted by the effect of rounding.