Full Year Results Presentation Full Year ended 31 March 2017 - - PowerPoint PPT Presentation

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Full Year Results Presentation

Full Year ended 31 March 2017

A successful year

Chris Grigg Chief Executive

3

Key messages

• Good results

– Active execution of strategy – Attracting demand from occupiers and investors

• Taking the business forward

– Opportunities already in the portfolio – Positioned to exploit optionality

10 0 Liverpool Street

4

Results highlights

• Underlying profits up 7% to £390m

(+£27m)

– Strong leasing activity – Reducing finance and admin costs

• NAV down 0.4% to 915p

– Valuation fall of 1.4%

• 1.7m sq ft lettings and renewals

across the business

– 8% ahead of ERV – Further 1m sq ft under offer

• r in advanced negotiations
• Total sales of £1.5bn

– 9% ahead of March 2016 valuation

SouthGate, Bath

5

Offices – Attracting occupier and investor demand

• Sale of The Leadenhall Building

for £1.15bn (100%)

• 1m sq ft of office lettings progressed
• Evidence of

– World class buildings – Broadening our campus offer – Progressing development optionality

4 Kingdom Street 7 Clarges Street

Sq ft lettings progressed

1

m

Yalding House

6

Offices – Creating and delivering world class buildings

• The Leadenhall Building

– £1.15bn headline price (100%) – 24% ahead of September 2016 valuation – 25% IRR since 2010

• Development of 7 Clarges Street

– 83% let; one floor to go – Rents in line with pre-referendum ERVs

• 1m sq ft lettings progressed

– 279,000 sq ft of lettings, 1.4% ahead of ERV – Over 700,000 sq ft under offer

• r in advanced negotiations

The Leadenhall Building

7

Offices – Broadening the offer

Our research shows that…

9 6 %

Value public transport links close to the office

9 8 %

Say communal working areas are important

9 2%

Want food and beverage

• ptions nearby

4 Kingdom Street

• Office space nearly 8 0 % under
• ffer within 1 week of PC
• 3 % ahead of pre-referendum

net effective ERVs

• >20 % IRR
• >40 % ahead of best

Paddington Central rent

• n acquisition in 2013

Paddington Central 4 Kingdom Street Survey of London Millennials

8

2&3 Finsbury Avenue

Offices – Creating and exploiting optionality

Planning permission secured on

1.5m sq ft

Blossom Street Pergola, 5 Kingdom Street 1 Triton Square 1 Finsbury Avenue

Exploiting Creating

Arranging

• Short term leases
• New cam pus uses

2 Finsbury Avenue

9

Retail – Strong occupier demand; continued outperformance

• Positioned to perform

– Reshaping the portfolio – Enhancing environments – Attracting a broader range

• f occupiers

Mayflower, Basildon Glasgow Fort Ealing Broadway Meadowhall, Nespresso

10

Retail – Reshaping the portfolio

• £881m of non-core retail disposals

– 3% above valuation – 4.3% average yield

Non-core m ulti-let a ssets Sup erstores £ 226m Dep a rtm ent stores

20 12 – 20 17 £ 2.5bn sales £ 1.5bn acquisitions

• f portfolio turned
• ver in last 5 years

>50%

Westgate, Wakefield Debenham s, Oxford Street Tesco JV

11

Retail – Enhancing environments

Gla sgow Fort Ea ling Broa d w a y Mea d ow ha ll

• £12m

investment

• 15 lettings
• First out of town

store for 4 retailers

• £60m

refurbishment

• 37 lettings
• 7.6% ahead
• f ERV
• £6m spend
• ERV +14%
• Footfall +8%
• £12.5m refurb
• Over 30% re-let

since acquisition

• ERV +6%

Tollga te, Colchester

12

Retail – Capturing incremental demand

Multi-let portfolio – lettings vs ERV

Lettings vs ERV %

Occupiers extending stores New form ats and locations

2 4 6 8 10 12

2016 2017

1.0m sq ft 0.9m sq ft +8 % +11%

13

Retail – Operational outperformance across the portfolio

Footfall Retailer in-store Sales

Regional Total m ulti-let portfolio Local

ERV Growth

240 bps

Ahead of market

220 bps

Ahead of market

+0 .0 % +0 .0 %

150 bps

Ahead of market

+2.4%

• 1.9%

+0 .3% +2.3% +2.1%

• 0 .7%

+2.5%

Year Ended March 2017

Source: Footfall benchmark – ShopperTrak; Sales benchmark – BRC-KPMG; ERV benchmark – IPD

14

Continued polarisation in Retail

Rental growth

• n multi-let

assets in FY17

2.4%

ERV growth vs IPD and Retail sales, including online

Index Mar-14 = 100

94 96 98 100 102 104 106 108 110 112 Mar-14 Jun-14 Sep-14 Dec-14 Mar-15 Jun-15 Sep-15 Dec-15 Mar-16 Jun-16 Sep-16 Dec-16 Mar-17

Retail sales inc. online BL Multi-let IPD Prime IPD Secondary

Source: Oxford Economics, IPD

12.5%

15

Young Readers Programme

• Connecting with

communities and retailers

• Enlivening our places
• Office developments

BREEAM Excellent as a minimum

• <1% incremental cost
• Better capital value
• Lower occupancy cost
• Connecting with occupiers

and communities

• Securing skills our industry

needs

• Targeting wellbeing to

support productivity

• Helping occupiers attract

and retain talent

• Targeting WELL standard

at 100 Liverpool Street

44% reduction in carbon intensity 35% reduction in energy intensity

Sustainability – sector leading performance

Custom er Orientation W ellbeing Right Places Com m unity Capital Efficiency Future-p roofing Expert People Skills a nd op p ortunity

Sector leader for 3 consecutive years

vs 20 0 9 20 20 target: 55% reduction

}

Finance Review

Lucind a Bell Chief Financial Officer

17

Highlights

FY to 31 March 2016 2017 Change % Underlying Profit (£m) 363 390 7.4 Underlying Earnings per Share (p) 34.1 37.8 10.9 Dividend per Share (p) 28.36 29.20 3.0 Valuation Performance +6.7%

• 1.4%

EPRA Net Asset Value per Share (p) 919 915 (0.4) Loan to Value (LTV) 32.1% 29.9% Total Accounting Return 14.2% 2.7%

18

Net rental income

1.5% 4.2% 2.3% Retail Offices Total

620 (23) 11 (8) 10

FY 2016 Capital activity Like for like rental growth Expiries on developments Development lettings FY 2017

610

2.0% 4.5% 2.9% Retail Offices Total1

£m

19

Financing Costs

£m

(180) 16 9 (5) 10 (1)

FY 2016 Financing activity – debt transactions Financing decisions – lower rates Acquisitions Disposals Completion of developments FY 2017

(151)

20

Underlying Profit up £27 million

363 (18) 11 1 25 8

FY 2016 Capital activity Like for like rental growth Developments Financing activity Administrative expenses FY 2017

390

£m

21

Income statement

FY to 31 March 2016 2017 Change % Net Rental Income (£m) 620 610 (1.6) Fees & Other Income (£m) 17 17

• Administrative Expenses (£m)

(94) (86) (8.5) Net Finance Costs (£m) (180) (151) (16.1) Underlying Profit (£m) 363 390 7.4 Underlying Earnings per Share (p) 34.1 37.8 10.9 Dividend per Share (p) 28.36 29.20 3.0

Prop osed FY18 d iv id end increa se of 3%

22

Valuation performance

FY to 31 March Valuation £bn Movement £m Movement % Yield Movement bps ERV Growth % NEY % Weighting % Retail 6.6 (133) (1.8) 14 1.6 5.2 48 Offices & Residential 7.0 (37) (0.5) 15 0.5 4.5 50 Canada Water 0.3 (33) (10.8) 9 0.9 3.4 2 Total 13.9 (203) (1.4) 15 1.1 4.8 100

• Of which Standing

Investments 13.3 (219) (1.6)

• Of which

Development 0.6 16 1.7

23

Valuation growth drivers – Retail

FY to March 2017 Valuation £bn Movement £m Movement % Yield Movement bps ERV Growth % H1 H2 FY H1 H2 FY H1 H2 FY Regional 3.0 (55) (2.8) 1.0 (1.8) 16 (4) 12 1.3 1.0 2.3 Local 2.1 (108) (4.8) 0.4 (4.5) 29 (1) 27 1.3 1.2 2.5 Multi-let 5.1 (163) (3.7) 0.7 (3.0) 22 (3) 18 1.3 1.1 2.4 Other 1.5 30 1.0 0.6 1.4 7 (3) 2 (0.3) (0.5) (0.7) Retail 6.6 (133) (2.4) 0.7 (1.8) 18 (3) 14 0.9 0.7 1.6

24

Valuation growth drivers – Offices & Residential

FY to March 2017 Valuation £bn Movement £m Movement % Yield Movement bps ERV Growth % H1 H2 FY H1 H2 FY H1 H2 FY West End 3.9 (25) (2.4) 1.7 (0.6) 16 (1) 15 0.3 0.4 0.7 City 2.9 (23) (4.9) 4.4 (0.8) 27 (13) 15 (0.2) 0.4 0.2 Offices 6.8 (48) (3.5) 2.8 (0.7) 21 (6) 15 0.1 0.4 0.5 Residential 0.2 11

• 5.4

4.2 Offices & Residential 7.0 (37) (3.3) 2.9 (0.5)

25

919p 915p (39p) 19p 36p (27p) (4p)

Mar 16 H1 valuations H2 valuations Underlying Profit Dividends Liability management costs Reversal of 2012 convertible bond dilution &

• ther

Mar 17

Reduction in diluted EPRA net asset value

11p

26

Strength of debt metrics

Proportionally Consolidated 31 Mar 2016 31 Mar 2017 Loan to Value (LTV) 32.1% 29.9% Weighted Average Interest Rate 3.3% 3.1% Interest Cover 3.0x 3.6x Average Maturity of Drawn Debt (years) 8.1 7.7

27

Development pipeline

• Committed speculative

exposure below 4%

• Costs to come matched

by residential receipts

• Near term speculative

exposure increases to 6%

• £64m ERV in total
• 40% already pre-let
• r under offer
• Further opportunities in the

medium term pipeline

4 Kingdom Street

Committed Near Term

100 Liverpool Street Clarges Resi Speke Leisure 1 Triton Square 135 Bishopsgate 1 Finsbury Avenue Plymouth Leisure

• 50

100 150 200 250 300 350 400

ERV of Committed & Near Term Developments

£64m

£m – Costs to Come

28

Future income profile

Annualised Gross Rents as at 31 March 2017 Cash Flow Basis £m Accounting Basis £m Current Passing Rent 611 Contracted Uplifts 42 608 Total Contracted Rent 653 Sales and purchases completing after year end (22) (19) Letting of Completed Developments (of which £7m let or under offer) 11 9 Lease Expiries – Near Term Developments (9) (7) Lease Expiries – Medium Term Developments (8) (8) Letting of Committed Developments (of which £1m let or under offer) 21 18 Letting of Near Term Developments (of which £25m let or under offer) 43 37 RPI Linked Leases1 10 10 Reversion2 23 22 Potential Rent in 5 Years excl. Medium Term developments 722 670 Letting of Medium Term Developments (excl. Canada Water) 107 92

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

29

Summary

• Good results
• Improved financial strength
• Modest speculative development

4 Kingdom Street

Looking forward

Chris Grigg Chief Executive

31

Creating a resilient business

March 2010 Current

Offices Retail Financial

Increase in West End as a % of Offices Increase in Multi-let as a % of retail Fall in Loan to Value

35% 61% 60% 78%

Fall in banks as a % of portfolio

12% 7%

Fall in superstores as a % of portfolio

15% 4%

All current figures pro forma for sale of 50% interest in The Leadenhall Building and RBS surrender at 135 Bishopsgate in June 17

47% 27%

March 2010 Current March 2010 Current March 2010 Current March 2010 Current

Increase in underlying profit since 2010

+57%

32

Market Outlook

• Uncertainty created by Brexit
• Wide range of outcomes
• Feedback from our occupiers

– Taking longer to commit – Continue to value London

• Demand for the best space remains

– Accelerating polarisation

Meadowhall 7 Clarges Street Glasgow Fort

33

Office Opportunities

135 Bishopsgate 1 Finsbury Avenue 1 Triton Square

• 288,000 sq ft refurbishment
• Includes 45,000 sq ft retail
• Planning expected May 2017
• £35 million investment
• 325,000 sq ft refurbishment
• Includes 43,000 sq ft retail
• RBS surrendering lease June 2017 –

£34m surrender premium (100%)

• £55 million investment
• Planning expected June 2017
• 310,000 sq ft office space
• 125,000 sq ft additional space
• Under offer for pre-let of entire office space
• Received resolution to grant planning
• £200m commitment

34

Includes:

• £48m consented leisure scheme at Drake Circus, Plymouth
• Leisure extension at Serpentine Green, Peterborough, target

planning submission autumn 2017

Retail Opportunities

Meadowhall Leisure

• 322,000 sq ft leisure extension
• Planning decision expected summer 2017

Eden Walk, Kingston

• 538,000 sq ft mixed use

regeneration scheme

• Retail, residential, office,

cinema, event space

• Planning granted March

2017

Retail extensions

35

Flexible workspace – responding to changing customer needs

• Broadening our offer

– Incremental demand from SMEs – Meeting needs of existing occupiers

• Launching flexible workspace offer across our campuses

– 80,000 sq ft being fitted out with first deal agreed on 25,000 sq ft

Appold Studios, Broadgate

36

Canada Water

Proposed mix of uses

• 3,500 new homes
• 2m sq ft Workspace
• 1m sq ft Retail & Leisure
• Fourth public consultation underway (www.canadawatermasterplan.com)

37

Disciplined approach to capital allocation

• Forecasts and hurdle rates guide

capital allocation

• Assessed on a regular basis
• Flexibility to respond to changing

market

The Leadenhall Building

38

Summary

• Good results in an uncertain

environment

– Strong leasing – Profitable disposals – Progressing opportunities

• Our space fulfils customers’

changing needs

– Attractive to occupiers and investors

• Cautious optimism for our business

– High quality portfolio; robust finances – Opportunities to create value and grow income

1 Triton Square

Appendices

40

Custom er Orienta tion

We use our insight into custom ers’ needs and identify m ajor long term trends to create environm ents in tune w ith changing lifestyles

Right Pla ces

We design engaging, sustainable places w hich bring people together through the right m ix of

• ccupiers, services and

activities

Ca p ita l Efficiency

We allocate our capital , m anage our finances and partner w ith like-m inded

• rganisations to deliver

sustainable long-term value

Exp ert Peop le

We em ploy expert people and w ork w ith specialist partners to create insight, develop skills and build capability

Our Strategy

British Land is a leading UK com m ercial property com pany focused on high quality retail and London offices

Pla ces Peop le Prefer

By m anaging our business to be resilient, sustainable and responsive, w e create enduring dem and for our properties and value for our stakeholders

41

We Enhance

Segm ent m ix

Balance of different segments and uses

Occupier service

Supporting occupiers and BL value add

Occupier m ix

Occupiers & campus community

We Enliven

Events

Bringing people together and attracting visitors

Mem orable experience

Creating lasting positive impressions

Custom er service

On-site hospitality & customer service

We Connect

Accessibility

Convenience & access

Com m unication

Digital connectivity, branding and marketing

Com m unity

Supporting communities for local people and

• ccupiers

We Design

Authenticity

How our users feel and interact with the space

Function

Facilities & safety

Form

Efficient and effective buildings & spaces

Placemaking Framework applied across the business

42

Portfolio evenly split between London Offices and high quality Retail

Further £0.3bn at Canada Water and £0.2bn of standalone Residential assets

£6.3bn

Offices Retail & Leisure

£6.6bn

Figures shown on a proportionally consolidated basis including the group's share of properties in Joint Ventures & Funds, pro-forma for post year end transactions

43

Retail Multi-let Portfolio Our two core products each fulfil specific shopper missions

Regiona l

Missions include Leisure-dom inated Trips, Fam ily Day Out and The Big Ticket Shop Typically >30 occupiers Footfall >10 m , spend >£ 10 0 m p.a. Drive-time >20 m ins Dwell >6 0 m ins Retail offer covers multiple categories with depth of choice in each Significant leisure and F&B e.g. restaurants, cinema Missions include Local Neighbourhood Shopper, Convenient Leisure and Single Item Pick-Up Typically 15– 30 occupiers Footfall often <8 m , spend <£ 10 0 m p.a. Drive-time <15 m ins Dwell <60 m ins Retail offer covers multiple categories & includes local services and am enities Convenient leisure and F&B e.g. gym and coffee shops

Loca l

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

• f local communities

44

Multi-let Retail assets

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

• St. Stephen’s, Hull

Eden Walk, Kingston Giltbrook, Nottingham Serpentine Green, Peterborough Drake Circus, Plymouth Meadowhall, Sheffield New Mersey, Speke1 Teesside, Stockton Mayflower, Basildon Beaumont, Leicester Weston Lock, Bath Valentine, Lincoln1 Cornerhouse, Barrow Mostyn Champneys, Llandudno1 Hindpool, Barrow

• St. Peter’s, Mansfield

Forster Square, Bradford Kingston Centre, Milton Keynes Woodfields, Bury Studlands, Newmarket Gallagher, Cheltenham1 Harlech, Newport Tollgate, Colchester Elk Mill, Oldham Prospect Place, Dartford1 Nugent, Orpington Crown Point, Denton Botley Road, Oxford Wheatley, Doncaster Deepdale, Preston1 Ealing Broadway Queens, Stafford1 Whiteley, Fareham Orbital, Swindon Old Market, Hereford Crown Wharf, Walsall1 Inverness1 Lion, Woking Westside, Leeds

Regiona l Loca l

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

• f local communities

45

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

Average rent to sales ratio

10 %

Annual footfall of

312 m 8 5 %

• f our car parking

spaces are free Potential to reach

60 %

• f the population

BL local centres BL regional centres BL asset catchments

Source: CACI Retail Footprint 2016

46

Physical store openings significantly boost retailers’

• nline presence

80 90 100 110 120 130 140 150 160 170

• 20 weeks
• 15
• 10
• 5

Store Opening 5 10 15 +20 weeks

+44% Postal area share of retailer website visits

Indexed vs. store opening date

Note: Based on a sample of 29 retailers opening at British Land centres between April 2014 and December 2016. For retailers with fewer than 30 UK stores, there is a 75% boost to online presence Source: Hitwise

47

Physical store sales £265 bn True Value of Stores £278 bn Total retail sales £313 bn £5 bn £8 bn £18 bn £13 bn £4 bn

Online sales increasingly integrated with physical stores 89% of UK retail sales touch the store

Boost +5% 8 9 % of total retail sales in 20 15

Click & Collect sales Online sales browsed in store Online sales not browsed in store Online pureplay sales Mail order & TV shopping

Online sales of store operators Total online sales Online that touched the store

Retail sa les by cha nnel (UK, a ll sectors, 20 15)

Source: GlobalData/ British Land

48

BL footfall performance vs benchmark

Outperformance in FY17

+240bps

British Land UK Market (ShopperTrak UK National Index) 80 85 90 95 100 105 110 115 Mar-10 Sep-10 Mar-11 Sep-11 Mar-12 Sep-12 Mar-13 Sep-13 Mar-14 Sep-14 Mar-15 Sep-15 Mar-16 Sep-16 Mar-17

Jan-10 = 100

49

Major property holdings

At 31 March 2017 BL Share % Sq ft 000’s Rent £m pa1 Occupancy Rate %2 Lease Length yrs3 1 Broadgate 50 4,850 190 98.3 8.2 2 Regent's Place 100 1,590 76 99.1 7.4 3 Paddington Central 100 958 33 94.1 6.8 4 Meadowhall, Sheffield 50 1,500 84 97.9 6.4 5 The Leadenhall Building4 50 603 40 99.9 10.3 6 Sainsbury's Superstores5 51 2,184 48 100.0 10.4 7 Teesside, Stockton6 100 569 17 96.9 5.6 8 Drake Circus, Plymouth7 100 1,132 21 95.9 8.9 9 Glasgow Fort 77 510 21 98.3 5.9 10 Ealing Broadway 100 470 13 93.7 5.9

(incl. space being prepared for flexible working) or assets being readied for development in the near term (1 Finsbury Avenue)

50

Top 20 occupiers & occupier split by industry

As at 31 March 2017 % of Contracted Rent Tesco plc1 5.4 J Sainsbury plc 4.8 UBS AG 3.4 Debenhams 3.3 Kingfisher (B&Q) 2.8 HM Government 2.6 Next plc 2.4 Virgin Active 1.9 Facebook 1.8 Dentsu Aegis 1.7 Spirit Group 1.7 M&S plc 1.6 Wesfarmers 1.6 Alliance Boots 1.6 Visa Inc 1.5 Dixons Carphone 1.4 Arcadia Group 1.3 Herbert Smith 1.3 RBS 1.2 TK Maxx 1.0

General Retail 15% Fashion & Beauty 16% Banks & Financial services 15% Grocery & Convenience 10% Professional & Corporate 9% Food/Leisure 11% DIY 7% TMT 7%

Occupier Split by Industry (%)

Other 10%

Expiries ahead of development 2% UBS – 5 Broadgate 3% Other banks 3% Total banks 8% Asset Management & Other Financial 7%

transaction with Tesco

51

London Assets

52

Broadgate – development opportunities to add a wider range

• f uses and attract a broader range of occupiers

100 Liverpool Street

• Lease expired in Dec 2016
• Current size: 380k sq ft
• Redevelopment: 520k sq ft

1 Finsbury Avenue

• Lease expired in Dec 2016
• Current size: 288k sq ft

135 Bishopsgate

• Leases surrender in June

2017 ahead of 2019 expiry

• Current size: 325k sq ft

2–3 Finsbury Avenue

• 2 Finsbury Avenue –

lease expired in Dec 2016

• 3 Finsbury Avenue –

expected lease break in late 2018

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

Broadgate Overview Current contracted rent £m (BL Share) % Rent WALL to FB yrs Core income, including recent developments 80 84 9.6 Committed (100 Liverpool Street) n/a n/a n/a Near term pipeline (1 Finsbury Avenue, 135 Bishopsgate) 7 8 0.3 Medium term pipeline (2&3 Finsbury Avenue, 1&2 Broadgate) 8 8 1.7 Total 95 8.2

53

Paddington Central Campus

54

Regent’s Place Campus

55

Canada Water

56

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

• 400

800 1,200 1,600

Capital Activity

£52m £648m (£267m)

2013 2014 2015 2016

£31m

Gross investment activity in FY17

£2bn

Disposals 20171

(£1,059m) Net Spend £m

Capital Investment Net Spend Acquisitions Financial Year Net Acquisitions/ Disposals

57

Capital Activity

Since 1 April 2016 Retail £m Offices £m Residential £m Canada Water £m Total £m Purchases1 187 – – 8 195 Sales1,2 (881) (609) (56) – (1,546) Development Spend 20 132 21 10 183 Capital Spend 91 18 – – 109 Net Investment (583) (459) (35) 18 (1,059) Gross Investment 1,179 759 77 18 2,033

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

• f superstore assets; Includes a further £49m acquisition that exchanged and completed post year end

58

Acquisitions

Since 1 April 2016 Sector Price (100%) £m Price (BL Share) £m Annual Passing Rent £m4 Completed New George Street Estate, Plymouth Retail 64 64 5 10-40 The Broadway, Ealing1 Retail 49 49 2 Harlech, Newport – Tesco exchange transaction2 Retail 41 20 1 Tesco, Brislington – Tesco exchange transaction2 Retail 46 23 2 Hercules Unit Trust units3 Retail 18 18 1 Teesside Leisure Park Retail 13 13 1 Dock Offices, Canada Water Canada Water 8 8 – Total 239 195 12

59

Disposals

Since 1 April 2016 Sector Price (100%) £m Price (BL Share) £m Annual Passing Rent £m3 Completed Debenhams, Oxford Street Retail 400 400 13 Superstores1 Retail 410 226 12 Portfolio of retail assets (Debenhams Manchester, York Clifton Moor, Wakefield Westgate) Retail 191 191 12 Ebury Gate Offices 34 34 2 Dumfries Cuckoo Bridge Retail 20 20 1 56 – 70 Putney High Street Retail 20 20 1 Lisnagelvin, Londonderry Retail 15 15 1 Luton Power Court Retail 9 9 – The Hempel Collection Residential 14 14 – Aldgate Place Residential 46 23 – Exchanged2 The Leadenhall Building Offices 1,150 575 17 Clarges, Mayfair Residential 19 19 – Total 2,328 1,546 59

60

FY18 income statement guidance

• Gross Rents

– Annualised accounting gross rent of £602m as at 31 March 2017 – Transactions completing after 31 March 20171 are expected to reduce annualised rents by £19m (FY18 impact £18m) – Annualised rent relating to properties in the development pipeline of £7m is expected to run

• ff in FY18, up to £6m impact in the year. This

includes the impact of RBS’ early surrender at 135 Bishopsgate for which we will recognise a £15m surrender premium receipt in H1 FY18 – Rental income growth will be driven by like-for-like growth and development lettings

• Financing

– Weighted average interest rate now 3.14%

• n gross debt of £4.5bn

– Transactions completing after 31 March 20171 are expected to reduce the interest charge by £7m

• Operating costs

– Expected to be broadly in line with FY17 levels. This includes the investment in flexible workspace which is expected to be profit neutral in FY18

• Dividend

– The dividend for the year ending 31 March 2018 is increased by 3% to 30.08 pence per share (quarterly dividend of 7.52 pence per share)

• Other

– 2012 convertible bond matures on 10th September 2017 with a current conversion price of 693p – Capital activity has the potential to significantly impact profits. For example, selling/acquiring £100m of assets would reduce/increase profits by c.£3.5m and LTV by c.0.5%. This is based on an average portfolio topped up NIY of 4.6% and marginal cost of debt of 1.1%

The Broadway, Ealing for £49m.

61

Future income profile breakdown (cash basis)

For the year to 31 March 2018 2019 2020 2021 2022 Total At 31 March 2017 £m £m £m £m £m £m Contracted rent 653 Sales and purchases completing post year end (22) – – – – (22) Letting of completed developments (of which £7m let or under offer) 11 – – – – 11 Lease Expiries – Near Term Developments (9) – – – – (9) Lease Expiries – Medium Term Developments – (8) – – – (8) Letting of Committed Developments (of which £1m let or under offer)1 – 2 19 – – 21 Letting of Near Term Developments (of which £25m let or under offer) 1 – 17 – 26 – 43 RPI Linked Leases2 2 2 2 2 2 10 Reversion3 2 4 4 1 – 11 Vacancies 12 Potential Rent in 5 Years excl. Medium Term developments 722 Letting of Medium Term Developments (excl. Canada Water) 107

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

62

Gross rental income1

Accounting Basis £m 12 months to 31 March 2017 Annualised as at 31 March 2017 Group JVs & Funds Total Group JVs & Funds Total Regional 60 86 146 61 86 147 Local 98 27 125 88 26 114 Multi-let 158 113 271 149 112 261 Department Stores & Leisure 48 – 48 38 – 38 Superstores 9 32 41 6 32 38 Solus and Other 20 – 20 20 – 20 Retail 235 145 380 213 144 357 West End 129 – 129 125 – 125 City 5 116 121 4 104 108 Offices 134 116 250 129 104 233 Residential2 4 – 4 4 – 4 Offices and Residential 138 116 254 133 104 237 Canada Water 9 – 9 8 – 8 Total 382 261 643 354 248 602

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

63

Administrative Expenses

Financial Year to 31 March 2016 £m 2017 £m Personnel Costs 50 50 Share Scheme Costs 10 4 Other Administrative Expenses 33 32 Total – British Land 93 86 Broadgate Estates 5 5 Total – Group 98 91 Capitalised Costs (4) (5) Total Administrative Expenses 94 86

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.

64

Operating costs metric

Financial Year to 31 March 2016 £m 2017 £m Property operating expenses 34 33 Administrative expenses 94 86 Net fees and other income (17) (17) Ground rent costs (3) (2) EPRA Costs (including direct vacancy costs) 108 100 Gross rental income 654 643 Ground rent costs (3) (2) Gross Rental Income (EPRA basis) 651 641 EPRA Cost Ratio (including direct vacancy costs) 16.6% 15.6%

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.

65

Reconciliation of Underlying Profit

FY to 31 March (£m) 2016 2017 IFRS profit before tax 1,331 195 Net valuation (profit)/loss (849) 225 Profit on disposal of investment and trading properties (69) (20) Deferred and current taxation of joint ventures & funds 1 (1) Capital financing income (33) (6) Non-controlling interests (18) (3) Underlying Profit 363 390 Dilution adjustments1 6

• EPRA Earnings Before Tax

369 390

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.

66

Number of shares

Number of shares (m) As at 31 March 16 As at 31 March 17 IFRS Basic Weighted Average1 1,025 1,029 IFRS Diluted Weighted Average2 1,089 1,091 Underlying/EPRA Diluted Weighted Average3 1,089 1,033 Year End4 1,096 1,038

67

EPRA balance sheet

£m 31 March 16 Group JVs & Funds 31 March 17 Total properties 14,648 9,210 4,730 13,940 Adjusted net debt (4,765) (2,990) (1,233) (4,223) Other net liabilities (209) (148) (71) (219) EPRA Net Assets (undiluted) 9,674 6,072 3,426 9,498 Dilution impact of 1.5% convertible bond 400 – – – EPRA Net Assets (diluted) 10,074 6,072 3,426 9,498 Loan to Value (LTV)1 32.1% 22.6% 29.9% Weighted average interest rate 3.3% 2.4% 3.1% Interest cover 3.0x 4.5x 3.6x Average maturity of drawn debt (years) 8.1 6.9 7.7

68

Reconciliation of EPRA NAV & NNNAV

31 March 16 31 March 17 £m pence £m pence IFRS Net Assets 9,619 935 9,476 921 Deferred tax arising on revaluation movements 5 3 Mark to market on effective cash flow hedges and related debt adjustments1 198 155 Adjust to fully diluted on exercise of share options 36 36 Adjust to dilute for 1.5% convertible bond 400

• Surplus on trading properties

93 83 Non-controlling interests (277) (255) EPRA NAV 10,074 919 9,498 915 Deferred tax arising on revaluation movements (24) (19) Mark to market of debt and derivatives (410) (541) EPRA NNNAV 9,640 880 8,938 861

69

Gross and net debt reconciliation

At 31 March 2017 Group £m JVs & Funds £m Less non- controlling interests £m Total £m Gross Debt (principal value) 3,069 1,579 (128) 4,520 IFRS adjustments: Issue costs and premia (12) (3)

• (15)

Fair value hedges 237

• 237

Other Items (13)

• (13)

IFRS gross debt 3,281 1,576 (128) 4,729 Market value of derivatives (73) 37 (3) (39) Cash (114) (210) 12 (312) IFRS net debt 3,094 1,403 (119) 4,378 Adjustments: Remove market value of derivatives 38 Remove fair value hedges (206) Other adjustments 13 Adjusted net debt 4,223

70

Loan to value (LTV)

As at 31 March 2016 £m Valuation movement Acquisitions Capital Spend Disposals Other As at 31 March 2017 £m Proforma for Leadenhall sale Total properties 14,648 (204) 103 263 (843) (27) 13,940 13,403 Other investments 138

• 13

151 151 LTV Assets 14,786 (204) 103 263 (843) (14) 14,091 13,554 Adjusted net debt 4,765

• 103

263 (853) (55) 4,223 3,653 Other (20)

• 4

(16) (12) LTV Liabilities 4,745

• 103

263 (853) (51) 4,207 3,641 LTV 32.1% 0.3% 0.5% 1.2% (4.2%)

• 29.9%

26.9%

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.

71

Strength of debt metrics

Proportionally Consolidated 31 Mar 2016 31 Mar 2017 Loan to Value (LTV) 32.1% 29.9% Weighted Average Interest Rate 3.3% 3.1% Interest Cover 3.0x 3.6x Average Maturity of Drawn Debt (years) 8.1 7.7 Group 31 Mar 2016 31 Mar 2017 Loan to Value (LTV) 25.2% 22.6% Available undrawn facilities £1.2bn £1.3bn Weighted Average Interest Rate 2.6% 2.4% Interest Cover 3.3x 4.5x

72

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

2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036 2037 2038

Debt maturity (£m)

Year to March

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

£m

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. Graph shows position as at 31 March 2017 pro-forma for completion of the sale of our 50% interest in The Leadenhall Building and the Tesco JV property swap transaction

73

Debt financing – diverse profile

• Extended £1.4bn of unsecured

revolving bank facilities

• Average drawn debt term 7.7 years
• The Group has no requirement

to refinance until early 2021

• On completion of sale of 50%

interest in The Leadenhall Building: – £1.8bn of revolving credit facilities undrawn in British Land – Proportion of projected debt at fixed rate 60% average over next 5 years (78% on spot basis) – Weighted Average Interest Rate 3.4% (March-17: 3.1%)

£0.6bn £0.8bn £0.8bn £0.5bn £1.3bn £0.5bn

£4.5bn Drawn Debt Profile1 (31 March 2017)

US Private Placements (Unsecured) Bank RCFs Drawn (Unsecured) Convertible Bonds (Unsecured) Debentures & loan notes (Secured) JV & Funds bank loans (Secured)2 JVs Securitisations

74

Portfolio valuation by sector

At 31 March 2017 Group JVs & Funds Total Movement %1 £m £m £m H1 H2 FY Regional 1,120 1,834 2,954 (2.8) 1.0 (1.8) Local 1,671 477 2,148 (4.8) 0.4 (4.5) Multi-let 2,791 2,311 5,102 (3.7) 0.7 (3.0) Department Stores and Leisure 574 1 575 3.2 3.1 5.1 Superstores 106 526 632 (3.0) (2.5) (5.2) Solus and Other 345 – 345 3.7 1.8 5.5 Retail 3,816 2,838 6,654 (2.4) 0.7 (1.8) West End 3,960 – 3,960 (2.4) 1.7 (0.6) City 108 2,776 2,884 (4.9) 4.4 (0.8) Offices 4,068 2,776 6,844 (3.5) 2.8 (0.7) Residential2 156 15 171

• 5.4

4.2 Offices and Residential 4,224 2,791 7,015 (3.3) 2.9 (0.5) Canada Water 271 – 271 (2.1) (9.0) (10.8) Total 8,311 5,629 13,940 (2.8) 1.6 (1.4) Standing Investments 7,821 5,487 13,308 (2.8) 1.3 (1.6) Developments 490 142 632 (3.0) 4.8 1.7

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

purchases and sales

75

Portfolio weighting

At 31 March 2016 % 2017 (current) % 2017 (current) £m 2017 (pro- forma1) % Regional 19.4 21.3 2,954 21.6 Local 16.3 15.4 2,148 16.1 Multi-let 35.7 36.7 5,102 37.7 Department Stores and Leisure 6.9 4.1 575 4.2 Superstores 5.3 4.5 632 3.9 Solus and Other 2.3 2.5 345 2.5 Retail 50.2 47.8 6,654 48.3 West End 26.6 28.4 3,960 29.8 City 19.7 20.7 2,884 18.7 Offices 46.3 49.1 6,844 48.5 Residential2 1.6 1.2 171 1.2 Offices and Residential 47.9 50.3 7,015 49.7 Canada Water 1.9 1.9 271 2.0 Total 100.0 100.0 13,940 100.0 Of which London 58 58 8,050 58

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

including the sale completion of our 50% interest in The Leadenhall Building and the Tesco JV property exchange

76

Lease length and occupancy

At 31 March 2017 Average Lease Length (yrs) Occupancy Rate (%) To Expiry To Break EPRA Occupancy Occupancy1 Regional 7.9 6.7 97.3 97.7 Local 7.9 6.8 97.3 97.9 Multi-let 7.9 6.8 97.3 97.8 Department Stores and Leisure 17.4 17.4 99.8 99.8 Superstores 11.7 11.3 100.0 100.0 Solus and Other 12.5 12.3 100.0 100.0 Retail 9.5 8.6 97.9 98.3 West End 9.0 7.3 93.0 97.0 City2 9.8 8.5 91.1 98.6 Offices 9.4 7.8 92.1 97.7 Canada Water 6.8 6.5 97.6 98.8 Total 9.4 8.3 95.2 98.0

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

(incl. space being prepared for flexible working) or assets being readied for development in the near term (1 Finsbury Avenue)

77

Portfolio net yields1,2

At 31 March 2017 EPRA net initial yield % EPRA topped up net initial yield %

3

Overall topped up net initial yield %

4

Net equivalent yield % Net reversionary yield % Regional 4.5 4.6 4.7 4.9 5.0 Local 5.1 5.2 5.3 5.4 5.4 Multi-let 4.7 4.9 4.9 5.1 5.2 Department Stores and Leisure 6.0 6.0 7.2 5.9 4.4 Superstores 5.6 5.6 5.6 5.5 5.3 Solus and Other 5.6 5.6 5.6 5.2 4.8 Retail 4.9 5.1 5.2 5.2 5.1 West End 3.5 3.7 3.8 4.5 4.8 City5 3.7 4.1 4.1 4.5 5.1 Offices 3.6 3.9 3.9 4.5 4.9 Canada Water 2.8 2.9 2.9 3.4 3.5 Total 4.3 4.5 4.6 4.8 5.0

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

78

At 31 March 2017 NEY

3

ERV Growth %

2

NEY Yield Movement

3 bps

% H1 H2 FY H1 H2 FY Regional 4.9 1.3% 1.0% 2.3% 16 (4) 12 Local 5.4 1.3% 1.2% 2.5% 29 (1) 27 Multi-let 5.1 1.3% 1.1% 2.4% 22 (3) 18 Department Stores and Leisure 5.9 0.4% (0.1%) 0.4% 4 (18) (15) Superstores 5.5 (3.0%) (1.0%) (4.0%) 8 13 21 Solus and Other 5.2 4.8% 0.0% 4.8% 9 (9) (4) Retail 5.2 0.9% 0.7% 1.6% 18 (3) 14 West End 4.5 0.3% 0.4% 0.7% 16 (1) 15 City4 4.5 (0.2%) 0.4% 0.2% 27 (13) 15 Offices 4.5 0.1% 0.4% 0.5% 21 (6) 15 Canada Water 3.4 0.9% (0.1%) 0.9% 4 5 9 Total 4.8 0.5% 0.6% 1.1% 19 (5) 15

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

Portfolio yield & ERV movements1

79

Annualised rent & estimated rental value (ERV)

At 31 March 2017 Annualised Rents (Valuation Basis) £m1 ERV £m Average Rent (£psf) Group JVs & Funds Total Total Contracted2 ERV Regional 61 87 148 164 31.1 33.1 Local 90 28 118 126 24.9 26.1 Multi-let 151 115 266 290 28.0 29.6 Department Stores and Leisure 36

• 36

28 14.9 11.4 Superstores 6 32 38 36 21.3 20.1 Solus and Other 20

• 20

17 19.8 17.0 Retail 213 147 360 371 24.5 24.6 West End3 132

• 132

179 54.2 62.2 City3,4 4 103 107 150 52.5 60.2 Offices3 136 103 239 329 53.4 61.2 Residential5 4

• 4

4 Offices and Residential 140 103 243 333 Canada Water 8

• 8

10 16.4 21.0 Total 361 250 611 714 30.3 33.2

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

excludes contracted rent subject to rent free and future uplift

80

Rent subject to open market rent review

For the year to 31 March 2018 2019 2020 2021 2022 2018–20 2018–22 At 31 March 2017 £m £m £m £m £m £m £m Regional 13 17 12 18 13 42 73 Local 24 17 10 11 6 51 68 Multi-let 37 34 22 29 19 93 141 Department Stores and Leisure

• Superstores

4 7 10 12 3 21 36 Solus and Other

• Retail

41 41 32 41 22 114 177 West End 24 20 15 10 9 59 78 City1 4 14 14 15 1 32 48 Offices 28 34 29 25 10 91 126 Canada Water 1 1

• 2

2 Total 70 76 61 66 32 207 305

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

81

Rent subject to lease break or expiry

For the year to 31 March 2018 2019 2020 2021 2022 2018–20 2018–22 At 31 March 2017 £m £m £m £m £m £m £m Regional 19 10 14 10 15 43 68 Local 8 7 10 9 11 25 45 Multi-let 27 17 24 19 26 68 113 Department Stores and Leisure

• Superstores
• Solus and Other
• 1
• 1

1 Retail 27 18 24 19 26 69 114 West End 6 10 3 17 21 19 57 City 7 11 11 9 2 29 40 Offices 13 21 14 26 23 48 97 Canada Water 1 1

• 1
• 2

3 Total 41 40 38 46 49 119 214 % of contracted rent 6.3% 6.3% 6.0% 7.1% 7.7% 18.6% 33.4%

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

82

For year to 31 March 2018 2019 2020 2021 2022 2018–22 At 31 March 2017 £m £m £m £m £m £m 135 Bishopsgate 7 – – – – 7 1 Triton Square 2 – – – – 2 Near Term developments 9 – – – – 9 2&3 Finsbury Avenue – 2 – – – 2 1&2 Broadgate – 6 – – – 6 Medium Term developments – 8 – – – 8 Other West End expiries 4 10 3 17 21 55 Other City expiries – 3 11 9 2 25 Office expiries 13 21 14 26 23 97

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

Rent subject to lease break or expiry – Office expiries detail

83

Contracted rental increases (cash flow basis)

For the year to 31 March 2018 2019 2020 2021 2022 2018–20 2018–22 At 31 March 2017 £m £m £m £m £m £m £m Expiry of rent free periods1 21 7 1

• 29

29 Fixed uplifts (EPRA basis) 1 1

• 2

2 Fixed & minimum uplifts 1 1 1 1 1 3 5 Total 23 9 2 1 1 34 36

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

84

Total Property Return (as calculated by IPD)

Full Year to 31 March 2017 Retail Offices Total % British Land IPD British Land IPD British Land IPD Capital Return (1.7) (2.3) (0.6) (1.0) (1.2) (0.1)

• ERV Growth

1.6 0.9 0.5 2.0 1.1 1.9

• Yield Expansion1

14 bps 12 bps 15 bps 13 bps 15 bps 4 bps Income Return 5.3 5.1 3.5 3.8 4.3 4.7 Total Property Return 3.5 2.8 2.8 2.8 3.1 4.6

85

BL property performance vs IPD – 1 year

60 40

• 110

70 10

• 150
• 200
• 150
• 100
• 50

50 100 Retail Offices Total

Year ended 31 March 2017

Capital Returns Total Returns

Relative performance bps

86

BL property performance vs IPD – 5 years

80 300 130 100 200 70

50 100 150 200 250 300 350 Retail Offices Total

5 years ended 31 March 2017

Capital Returns Total Returns

Relative performance bps p.a.

87

Superstores

Standalone Superstores

1

In Multi-let assets2 Total Exposure1,2,3

Store Size ‘000 sq ft Number

• f

stores Valuation (BL share) £m Capital Value psf Lease length

4

Number

• f

stores Valuation (BL share) £m Capital Value psf Lease length

4

Number

• f

stores Valuation (BL share) £m Capital Value psf Lease length

4

>100 6 152 340 11.1 4 286 419 11.1 10 438 388 11.1 75–100 10 171 384 11.3 3 73 274 15.0 13 244 342 12.5 50–75 12 179 364 10.8

• 12

179 364 10.8 25–50 3 15 272 8.1 3 32 456 18.5 6 47 375 14.7 0–25 2 6 138 8.1 21 98 465 10.2 23 104 409 10.0 March 2017 33 523 352 10.9 31 489 397 12.6 64 1,012 373 11.7 March 2016 47 763 383 13.9 28 537 482 12.7 75 1,301 419 13.5 Geographical Spread Gross Rent (BL Share) Lease Structure London & South 58% Tesco £29m RPI and Fixed 10% Rest of UK 42% Sainsbury’s £26m OMRR 90% Other £5m

Table includes £43m acquisitions and £116m disposals that exchanged and completed post year end as part of a Tesco JV swap transaction resulting in a net £73m disposal

• f superstore assets

88

At 31 March 2017 Sector BL Share Sq ft PC Calendar Year Current Value Cost to Come ERV Let & Under Offer % '000 £m1 £m2 £m3 £m 4 Kingdom Street Office 100 147 Q2 2017 151 18 9.5 7.0 Clarges Mayfair - Offices Office 100 51 Q2 2016 135 6 5.6 4.3 Glasgow Fort Leisure Quarter Retail 77 12 Q3 2016 8

• 0.4

0.2 The Hempel Phase 1 Residential 100 25 Q4 2016 4 3

• The Hempel Phase 2

Residential 100 33 Q4 2016 45 3

• Aldgate Place Phase 1

Residential 50 221 Q2 2016

• 7
• Total Completed in Year

489 343 37 15.5 11.5 100 Liverpool Street Office 50 520 Q4 2019 112 152 18.6

• Speke (Leisure)

Retail 67 66 Q2 2018 4 14 1.2 0.8 Clarges Mayfair - Retail and Residential4 Mixed Use 100 104 Q4 2017 362 52 0.8

• Total Committed

690 478 218 20.6 0.8 Retail Capital Expenditure5 111

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

Recently completed & committed developments

89 89

Near term development pipeline

At 31 March 2017 Sector BL Share Sq ft Expected Start on Site Current Value Cost to Come ERV Planning Status % '000 £m £m1 £m2 Near term Pipeline 135 Bishopsgate Office 50 325 2017 107 55 9.4 Submitted 1 Triton Square Office 100 366 2018 161 200 23.3 Resolution to grant 1 Finsbury Avenue Office 50 288 2017 77 35 7.7 Submitted Plymouth (Leisure) Retail 100 104 2018

• 48

3.1 Consented Total Near Term 1,083 345 338 43.5 Retail Capital Expenditure3 75

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

90 90

Medium term development pipeline

At 31 March 2017 Sector BL Share Sq ft Planning status % '000 Medium term Pipeline 2&3 Finsbury Avenue Office 50 563 Consented 1&2 Broadgate Office 50 375 Pre-submission Blossom Street Office 100 340 Consented 5 Kingdom Street1 Office 100 332 Consented Gateway Building Office 100 105 Pre-submission Meadowhall (Leisure) Retail 50 322 Submitted Peterborough (Leisure) Retail 100 182 Pre-submission Teesside (Leisure) Retail 100 80 Pre-submission Bradford (Leisure) Retail 100 49 Pre-submission Aldgate Place Phase 2 Residential 50 145 Consented Eden Walk Retail & Residential Mixed Use 50 538 Consented Total Medium Term excl. Canada Water 3,031 Canada Water2 Mixed Use 100 5,500 Pre-submission

91

Residential development programme

At 31 March 2017 BL Share Sq Ft Total No. Units No. Units to sell PC Date Current Value1 Cost to Come2 Sales Exchanged & not Completed1,3 Value to sell % '000 £m £m £m £m Clarges, Mayfair 100 94 34 11 Q4 2017 347 52 278 150 The Hempel Phase 1 100 25 15 1 Q4 2016 4 3

• 7

The Hempel Phase 2 100 33 18 13 Q4 2016 45 3

• 46

Aldgate Place Phase 1 50 221 154 1 Q2 2016

• 7
• 7

Total Residential 373 221 26 396 65 278 210

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

92

Estimated future development spend and capitalised interest

At 31 March 2017 PC Calendar Year Cost to Come £m (excluding notional interest) – 6 mths breakdown Sep-17 Mar-18 Sep-18 Mar-19 Sep-19 Mar-20 100 Liverpool Street Q4 2019 18 26 32 28 22 11 Speke (Leisure) Q2 2018 8 6 – – – – Clarges Mayfair - Retail and Residential Q4 2017 37 5 9 1 – – Total Committed 63 37 41 29 22 11 135 Bishopsgate 2019 6 16 15 11 4 2 1 Triton Square 2020 7 17 20 35 46 40 1 Finsbury Avenue 2019 2 8 10 9 3 2 Plymouth (Leisure) 2020 1 3 8 13 12 6 Total Near Term 16 44 53 68 65 50 Indicative Interest Capitalised on above at attributable rates1 3 3 4 4 4 4 Contracted Residential receipts to come – 198 – – – –

93

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

Central London development pipeline

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

Source: CBRE

m sq ft

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

Q1 2017

94

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

West End development pipeline

m sq ft

Note: Forecast reflects agent’s estimate of earliest completions Source: CBRE

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

Q1 2017

95

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

City development pipeline

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

Source: CBRE Note: Forecast reflects agent’s estimate of earliest completions

m sq ft

Q1 2017

96

(2)

• 2

4 6 8 10 1994 1997 2000 2002 2005 2007 2010 2012 2015 Yield Gap UK 10 Year Gilt Yield IPD All Property Net Initial Yield 0.0 2.0 4.0 6.0 8.0 10.0 All Retail Central London Offices

Property Yields and interest rate yield gap

Source: IPD

Property Yield vs 10 Year Gilt Yields

% NIY %

Q1 2017

Retail and London Office Yields

Source: IPD/Bloomberg

97

London office market rental outlook

Prime London Office Rents

£ psf

20 40 60 80 100 120 140 2000 1995 1990 2010 2005 2021 2016

Actual Forecast

West End City

Source: CBRE (historic) and Average Agents' Consensus (including PMA Spring 17) for forecasts

98

2 4 6 8 10 12 14 16 18 20 1985 1990 1995 2000 2005 2010 Q1 2017

Vacancy Central London

5.6% 3.9%

Source: CBRE (historic)

West End City

West End & City Vacancy Rates

99

Retail Portfolio Valuation – previous classification

At 31 March 2017 Valuation Change %1 ERV Growth %2 NEY Yield Movement bps £m H1 H2 FY H1 H2 FY H1 H2 FY Shopping parks 3,167 (4.1) 0.7 (3.3) 1.6% 0.8% 2.4% 26 (4) 20 Shopping centres 2,276 (2.1) 0.8 (1.3) 1.3% 1.3% 2.6% 14 (3) 12 Superstores 632 (3.0) (2.5) (5.2) (3.0%) (1.0%) (4.0%) 8 13 21 Department stores 166 5.6 3.0 6.7 0.4% 0.3% 0.7% 3 (10) (8) Leisure 413 (0.5) 3.2 2.7 0.4% (0.2%) 0.2% 4 (21) (17) Retail 6,654 (2.4) 0.7 (1.8) 0.9% 0.7% 1.6% 18 (3) 14

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

(classified by end use), purchases and sales

100

Retail portfolio net yields1,2 – previous classification

At 31 March 2017 EPRA net initial yield % EPRA topped up net initial yield %

3

Overall topped up net initial yield %

4

Net equivalent yield % Net reversionary yield % Shopping parks 4.9 5.1 5.1 5.2 5.2 Shopping centres 4.5 4.7 4.7 5.0 5.1 Superstores 5.6 5.6 5.6 5.5 5.3 Department stores 5.1 5.1 6.6 5.0 3.9 Leisure 6.3 6.3 7.4 6.2 4.7 Retail 4.9 5.1 5.2 5.2 5.1

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

101

Operational Performance – previous classification

Footfall Retailer in-store Sales ERV Growth

• 0 .4%

Shopping Centres

• 0 .4%

+2.6%

Year Ended March 2017

Source: Footfall benchmark – ShopperTrak UK National Index; Sales benchmark – BRC-KPMG in-store like-for-like non-food sales; ERV benchmark – IPD

+0 .4%

Shopping Parks

+0 .3% +2.4%

Total m ulti-let portfolio

240 bps

Ahead of market

220 bps

Ahead of market

+0 .0 % +0 .0 %

150 bps

Ahead of market

+2.4%

102

Disclaimer

The information contained in this presentation has been extracted largely from the Full Year Results Announcement for the year ended 31 March 2017. This presentation may contain certain “forward-looking” statements. Such statements reflect current views on, among other things, our markets, activities, projections, objectives and prospects. Such ‘forward-looking’ statements can sometimes, but not always, be identified by their reference to a date or point in the future or the use of ‘forward-looking’ terminology, including terms such as ‘believes’, ‘estimates’, ‘anticipates’, ‘expects’, ‘forecasts’, ‘intends’, ‘due’, ‘plans’, ‘projects’, ‘goal’, ‘outlook’, ‘schedule’, ‘target’, ‘aim’, ‘may’, ‘likely to’, ‘will’, ‘would’, ‘could’, ‘should’ or similar expressions or in each case their negative or other variations or comparable terminology. By their nature, forward-looking statements involve inherent risks, assumptions and uncertainties because they relate to future events and circumstances which may or may not occur and may be beyond our ability to control or predict. Actual outcomes and results may differ materially from any outcomes or results expressed or implied by such forward-looking statements. Any forward-looking statements made by or on behalf of British Land speak only as of the date they are made and no representation or warranty is given in relation to them (whether by British Land or any of its associates, directors, officers, employees or advisers), including as to their completeness or accuracy or the basis on which they were prepared. Other than in accordance with our legal and regulatory obligations (including under the UK Financial Conduct Authority’s Listing Rules, the Disclosure Rules and Transparency Rules and the Market Abuse Regulation), British Land does not undertake to update forward-looking statements to reflect any changes in British Land’s expectations with regard thereto or any changes in events, conditions or circumstances on which any such statement is based. Important factors that could cause actual results, performance or achievements of British Land to differ materially from any outcomes or results expressed or implied by such forward-looking statements are set out in the section headed “forward-looking statements” in the 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. This presentation is published solely for information purposes. This presentation does not constitute an offer to sell or the solicitation of an offer to subscribe for or buy any security, nor a solicitation of any vote or approval in any jurisdiction, nor shall there be any sale, issuance or transfer of the securities referred to in this presentation in any jurisdiction in contravention of applicable law. No representation or warranty, either express or implied, is provided in relation to the accuracy, completeness or reliability of the information contained herein. The distribution of this presentation in jurisdictions other than the UK may be restricted by law and regulation and therefore any persons who are subject to the laws of any jurisdiction other than the UK should inform themselves about, and observe, any applicable requirements. This presentation has been prepared for the purpose of complying with English law and the City Code and the information disclosed may not be the same as that which would have been disclosed if this presentation had been prepared in accordance with the laws of jurisdictions outside the UK. All opinions expressed in this presentation are subject to change without notice and may differ from opinions expressed elsewhere.