FULL YEAR RESULTS TO MARCH 2014 3 JUNE 2014 www.londonmetric.com - - PowerPoint PPT Presentation

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FULL YEAR RESULTS TO MARCH 2014

3 JUNE 2014

AGENDA

2

CHAIRMAN’S INTRODUCTION HIGHLIGHTS STRATEGY INVESTMENT ACTIVITY ASSET MANAGEMENT ACTIVITY FINANCIAL RESULTS OUTLOOK Q&A

HIGHLIGHTS

FINANCIAL HIGHLIGHTS

1

4

EPRA NAV

121p +11%

2013: 109p Valuation uplift

£95.9m +8.5%

Reported profit

£125.3m

2013: loss £13.4m EPRA earnings

£26.4m +20%

2013: £22.0m EPRA EPS

4.2p +7.7%

2013: 3.9p DPS

7.0p

2013: 7.0p LTV

32%

2013: 43%

(1) Including share of joint ventures

OPERATIONAL HIGHLIGHTS

5

(1) IPD All Property Quarterly Universe (2) Contracted rental income £78.0m, including Islip development (3) Weighted by rental income

Portfolio valuation

£1,220m

£95.9m uplift Property total return

17.0%

vs IPD1 13.4% T

• pped up initial yield

6.4%

2013: 6.3% Like-for-like rental growth

3.4%

2013: 3.5% Annualised rental income2

£72.7m +16.3%

2013: £62.5m Development pipeline

1.2m sq ft

79% pre-let3

STRATEGY

INVESTMENT STRATEGY

7

Distribution Out of town

Christchurch Tamworth Leicester Brackmills

Income

Berkhamsted Occupier led

(1) 1 million sq ft DC pre-let to Top 25 retailer; construction of main works to commence later summer with practical completion targeted for summer 2015

Strong cash flow

Asset management

Good income with growth opportunities

Short-cycle development

Very attractive risk- adjusted returns

Non-core

Islip1 Carter Lane Opportunistic Moore House Crawley

PORTFOLIO HIGHLIGHTS

8

£974m of investment activity

£406m core acquisitions, NIY 7.6%, WAULT 14.3 years £397m commercial disposals, NIY 5.5%, WAULT 11.1 years £171m residential disposals, NIY 2.0%

Occupancy 99.6% (2013: 94.5%) Investment portfolio1 WAULT 12.7 years (2013: 11.6 years)2 48 occupier transactions

(1) Investment portfolio as at 31 March 2014, excluding developments and residential (2) Weighted average unexpired lease term – 2014: 11.8 years to first break; 2013: 10.8 years to first break

GROWING RENTAL INCOME

9

62.5 72.7 78.9 6.5 3.7 5.3

• 1.4

0.8 1.5 40 50 60 70 80 90 (£m)

Mar 2013 contracted rent roll Mar 2014 contracted rent roll Net new investment Occupier transactions Islip development New rental income from acquisitions less disposals Occupier transactions on existing space PPE net new investment Letting up Carter Lane PPE lettings in legals Rent roll run-rate

REPOSITIONING THE PORTFOLIO

March 2013: Portfolio £1,217m March 2014: Portfolio £1,220m

10

29% 10% 10% 21% 20% 10%

59% core

RETAIL RETAIL DISTRIBUTION DISTRIBUTION DEVELOPMENT OFFICE RESIDENTIAL

37% 7% 22% 6% 8% 6% 14%

86% core

LEISURE

INVESTMENT ACTIVITY

PORTFOLIO ACQUISITIONS

£175m DFS JV1 £81m ODEON portfolio

12

27 DFS stores, NIY 9.3% WAULT 16.3 years Sold10 DFS stores2 for £47.1m, NIY 8.6% Sold further 3 stores for £17.1, NIY 7.8%; PPE 10 multiplexes, NIY 7.2% WAULT 24.9 years, annual uplifts 1-5% RPI Sold Dudley for £7.7m, NIY 6.0% Exchanged Huddersfield for £15.2m, NIY 6.1%; PPE

(1) LondonMetric share 30.5% (2) 8 freehold stores sold in the period: Adwick le Street, Alfreton, Carcroft, Matlock, Rotherham, Scunthorpe, Stoke on Trent, Warrington for £43.4m (LMP share £13.2m) with (3) LondonMetric share 33.3% long leaseholds at Adwick le Street and Hull sold PPE for £3.7m (LMP share £1.1m)

£28m Wickes portfolio3

5 Wickes, NIY 7.2% Purchase WAULT 10.1 years Simultaneously re-geared 3 leases

Yield on cost 6.8% WAULT increased to 19.4 years

Sold Oxford for £12.4m, NIY 5.3%

Bought 9.3%Sold 8.4% Bought 7.2%Sold 5.3% Bought 7.2%Sold 6.0%

DISTRIBUTION ACQUISITIONS

13

£197.2m, average NIY 7.2%, WAULT 10.6 years1

Post period end Rotherham acquisition of £10.3m

(1) 8.8 years to first break (2) 4.0 years to first break (3) 10.0 years to first break (4) 7.3 years to first break (5) 8.6 years to first break (6) 6.9 years to first break

Birmingham £10.1m, NIY 7.9%, WAULT 11.0 years Leicester £5.2m, NIY 8.3%, WAULT 7.0 years2 Crick £17.9m, NIY 7.0%, WAULT 15.0 years3 Bedford £51.7m, NIY 7.0%, WAULT 9.4 years Brackmills £9.0m, NIY 8.8%, WAULT 0.3 years Daventry £36.0m, NIY 6.5%, WAULT 9.6 years Sheffield £32.2m, NIY 7.6%, WAULT 9.6 years4 Swindon £22.1m, NIY 6.5%, WAULT 13.6 years5 Doncaster £13.0m, NIY 7.6%, WAULT 11.8 years6 Rotherham £10.3m, NIY 6.0%, WAULT 13.9 years

RETAIL ACQUISITIONS

14

£49.0m1, average NIY 7.4%, WAULT 8.8 years2

Ipswich £10.4m NIY 6.5%, WAULT 10.9 years Milton Keynes & Cardiff £25.8m NIY 8.0%, WAULT 6.8 years Eastbourne £3.0m3 NIY 7.2%, WAULT 11.5 years

(1) LondonMetric at share, gross acquisitions £74.5m (2) 8.7 years to first break (3) LondonMetric at share, gross acquisition £9.0m (4) LondonMetric at share, gross acquisition £9.6m (5) LondonMetric at share, gross acquisition £16.3m (6) LondonMetric at share, gross acquisition £3.7m

Dartford £3.2m4 NIY 6.6%, WAULT 10.3 years Hertford £5.4m5 NIY 5.9%, WAULT 11.6 years Bridgwater £1.2m6 NIY 6.8%, WAULT 18.8 years

MIPP MIPP MIPP MIPP

DISPOSALS: COMMERCIAL

15

£397.1m1 of commercial disposals, average exit yield 5.5%

Post period end disposals of £33.8m, average exit yield 5.6%

Fleet Place £112.5m NIY 5.1%, WAULT 12.0 years Distribution portfolio £138.4m2 NIY 5.0%, WAULT 9.2 years

(1) LondonMetric at share, gross disposal proceeds £544.6m (2) LondonMetric at share, gross disposal proceeds £247.6m (3) 12.2 years to first break (4) 7.0 years to first break (5) Dudley and Huddersfield

Leatherhead £75.8m NIY 5.9%, WAULT 9.8 years Bedford – Midland Rd £6.5m NIY 6.2%, WAULT 9.8 years Sheffield & Mansfield £19.2m NIY 6.8%, WAULT 12.9 years3 Congleton £16.4m NIY 5.8%, WAULT 8.4 years4 Two ODEON multiplexes5 £22.9m NIY 6.0%, WAULT 24.4 years Berkhamsted £12.3m NIY 4.6%, WAULT 19.5 years

DISPOSALS: RESIDENTIAL

16

£167.0m1 of disposals, across 331 units, average exit yield 1.9% £18.1m of additional sales agreed, post period end, across 32 units

Only 3 units left at Battersea; remaining equity of £2.7m

Moore House joint venture3

Since March 2014: 10 units sold, 5 under offer releasing £4.0m of equity 134 units remaining to release £48.0m of equity

(1) LondonMetric wholly owned portfolio (2) Wholly-owned residential sold to date (3) Held in JV with Green Park & PSP, LondonMetric share 40%

Clerkenwell Quarter2 107 units for £61.2m Equity released £59.4m Clapham Rd, Stockwell2 74 units for £29.8m Equity released £16.6m North Stand, Highbury2 134 units for £67.5m Equity released £38.0m Bridges Wharf, Battersea2 48 units for £26.6m Equity released £15.8m

ASSET MANAGEMENT ACTIVITY ASSET MANAGEMENT ACTIVITY

ASSET MANAGEMENT

48 occupier transactions

18

No. Area (sq ft) Uplift (£m) % above ERV WAULT to expiry New lettings 30 1,470,800 11.2 2.5 19.1 Re-gears 9 748,400 0.4 3.3 12.3 Rent reviews 9 107,500 0.2 8.0

• T
• tal

48 2,326,700 11.8 3.2 16.2 No. Area (sq ft) Rent (£m) % above ERV WAULT to expiry Retail 40 482,800 6.2 7.2 13.8 Distribution 3 1,443,800 7.1 0.4 22.7 Office 5 400,100 12.5 2.8 15.1 T

• tal

48 2,326,700 25.8 3.2 16.2

RE-GEAR CASE STUDIES

19 Pre re-gear stats: Birmingham DC Brackmills DC Wickes portfolio1 Marlow International NIY 7.9% 8.8% 7.2% 7.7% WAULT 11.0 years 0.3 years 10.1 years 6.8 years Re-gear stats: YOC 7.5% 8.0% 6.8% 7.2% WAULT 21.0 years 10.0 years 19.4 years 12.3 years

(1) LondonMetric share 33.3%

COMPLETED DEVELOPMENTS

20 Berkhamsted Carter Lane Bishop Auckland Phase 2 Area 22,500 sq ft 127,600 sq ft 27,300 sq ft Pre-lets 84% pre-let to M&S, Costa 72% pre-let to MFS, SEB 77% pre-let to Home Bargains, TKMaxx Lease lengths 20-year lease, no breaks 20 & 15 year leases 15 year leases Rent secured £0.5m p.a. £4.9m p.a. £0.3m p.a. Acquisition yield on cost 7.7% 5.8% 9.1% Valuation yield 4.6% 4.8% 5.7% Sale/PC Sold, completion May 2014 PC May 2014 PC April 2014 Disposal yield1 3.9% rising to 4.6%

• (1) Based on disposal price of £12.3m

ISLIP DISTRIBUTION CENTRE DEVELOPMENT

21

Site assembly across 70 acres 1,062,000 sq ft, 100% pre-let £5.3m initial rent roll with 1.5% annual uplifts 25-year lease with no breaks Onsite enabling works Yield on cost 6.9% Construction to commence Aug-14 Practical completion Aug-15

ISLIP DISTRIBUTION CENTRE DEVELOPMENT

22

DEVELOPMENT ACTIVITY

23 Rent roll YOC1

• n PC2

Valu’n yield Location Sector Sq ft Status (£m) (%) (%) Completed Carter Lane Office 127,600 72% pre-let, 20% in detailed negotiations 6.3 5.8 4.8 Berkhamsted Retail 22,500 84% pre-let to M&S, Costa 0.6 7.7 4.6 BA Ph 2 Retail 27,300 77% pre-let, 23% in detailed negotiations 0.4 9.1 5.7 Total completed 177,400 7.3 6.1 4.9 Committed Islip Distrib 1,062,000 100% pre-let, new 25 year lease, 1.5% annual uplifts 5.3 6.9 5.6 Leeds Retail 120,000 38% pre-let, 18% in solicitors’ hands; start Sep-14 2.7 7.8 6.3 Total committed 1,182,000 8.0 7.2 5.8 Conditional St Austell Retail 103,000 Planning re-submission anticipated late summer 2014 Derby Retail 22,000 50% pre-agreed to M&S for Simply Food format Swindon Distrib 150,000 100% pre-agreed extension with Oak Furniture Land

(1) Yield on cost (2) Practical completion

VALUATION METRICS

24

Income return Capital return Total return Outperformance LMP IPD LMP IPD LMP IPD (bps) Retail 6.5 5.7 10.9 4.2 18.1 10.1 +800 Distribution4 6.5 6.7 18.2 9.4 25.8 16.7 +900 Office 4.6 4.8 15.8 12.9 21.0 18.3 +270 Residential 1.8 5.6 3.4 5.1 5.3 10.9

• 560

Total 5.3 5.5 11.2 7.5 17.0 13.4 +360

Portfolio performance1 against IPD2

(1) All returns are time weighted (2) IPD All Property Quarterly Benchmark (3) Represents IPD All Industrials Index

VALUATION SURPLUS: £95.9M +8.5%

25

Market yield shift +55% New space +9% 20 40 60 80 100 33bps inward yield shift 45% asset management actions = 27bps inward yield shift

(%)

Occupier transactions 18% Asset management yield shift 18%

FINANCIAL RESULTS

INCOME STATEMENT

STATUTORY

27

Statutory Pro-forma Statutory FY to 31 March (£m) 2014 20131 20132 Reported profit/(loss) after tax 125.3 (9.1) (13.4) Net rental income 51.3 41.3 31.1 Share of JV net income 3.1 5.3 4.4 Management fees 0.8 8.7 8.5 Administrative costs (13.5) (15.6) (11.0) Net finance costs (15.4) (13.8) (11.7) Current tax 0.1

• 0.7

EPRA earnings 26.4 25.9 22.0 Valuation movements3 113.0 19.7 17.9 Exceptional costs4 (14.1) (54.7) (53.4)

(1) 12 months of London & Stamford and 12 months of Metric Property (2) 12 months of London & Stamford and two months of Metric Property (3) Includes revaluation, derivative movements, profit/(loss) on sales and cost of closing out derivatives (4) Relating to the internalisation of management in 2010 and taxation

21.3

2

38.7 53.0 5.1

1

• 14.8

22.3 4.8 5.3

3

1.5 7.5 10 20 30 40 50 60

INCOME RISING

28

Annualised net income (£m) £44m = 100% dividend cover

Annualised profits Mar-13 Disposals income lost Acquisitions income Carter Lane lettings Annualised profits Mar-14 Carter Lane lease up Annualised profits run rate Reinvestment

(1) Annualised impact of Metric Property and post merger contracted income from acquisitions (2) 12 months of London & Stamford and 12 months of Metric Property (3) Contracted rental income from Islip development

BALANCE SHEET

STATUTORY

29

31 March (£m) 2014 2013 Property portfolio (including trading properties) 1,030.6 990.6 Joint ventures 109.0 120.9 Cash 78.4 37.6 Bank debt (415.5) (464.5) Property completions (77.7) (4.5) Other net assets 31.1 (3.4) Net assets 755.9 676.7 EPRA adjustments 1.1 10.6 EPRA net assets 757.0 687.3 EPRA NAV per share (p) 121 109 LTV (%) 32 43

MOVEMENTS IN NAV

30

109.4 121.0 4.2 1.0

• 7.0
• 1.9

15.3 95 100 105 110 115 120 125 NAV per share (p)

EPRA NAV Mar-13

(1) Profit on sale of £14.5m, less swap breakage costs of £8.4m (2) Non-recurring impact of internationalisation of London & Stamford management in 2010

EPRA NAV Mar-14 EPRA earnings Disposals1 Dividend Exceptionals2 Revaluation

DEBT FINANCING

1

31

Gross debt £473m, now £469m (2013: £573m)

Undrawn facilities £96m, now £80m (2013: £54m) Carter Lane debt free

Net gearing 32%, now 35% (2013: 43%) Cost of debt2 3.9% (2013: 4.0%), marginal cost of debt 3.7%

85% of debt hedged, now 82% (2013: 80%)

Term to maturity 3.7 years (2013: 3.0 years)

(1) Includes net share of joint ventures (2) Includes the cost of amortising finance arrangement fees

OUTLOOK

INVESTMENT MARKET – LIQUIDITY RETURNS

33

Liquidity has returned to most parts of the UK market Strong economic data is driving increased investor appetite for income & risk Equity inflows set to continue both from UK and US Good secondary continues to outperform prime on total return Valuations continue to be driven by yield compression

OCCUPIER MARKET

34

Retailer performance continues to improve New IPOs increasing occupier demand Rental trajectory now firmly positive Retailers continue to polarise their distribution space

Trend towards less centres but more sophisticated space Demand rising as retailers attempt to meet consumer demands

Retailers with efficient supply chain networks are gaining customer loyalty

Investment market is stronger but there is rational pricing and fair value Clear investment strategy:

(i) income, (ii) asset management, (iii) short-cycle development

Dividend cover is our focus but not our driver Income growth increasing component of capital returns Continue to be partner of choice for our key customers

OVERVIEW

35

QUESTIONS?

APPENDIX

TOP 10 TENANTS1,2

38

(1) Investment portfolio as at 31 March 2014 (2) Gross rental income based on annaulised rents (3) Market capitalisation as at 2 June 2014 (4) Market capitalisation of parent Home Retail Group (5) Market capitalisation of parent Associated British Foods (6) Market capitalisation of parent Kingfisher (7) USD

Tenant Rent (£m pa) % of total rent Market cap (£m)3 5.4 7.4 Private 5.4 7.4 Private 4.0 5.5 1,7904 3.9 5.4 22,4915 3.7 5.2 10,3016 3.6 5.0 7,505 3.0 4.1 38,3237 2.4 3.3 5,595 2.4 3.3 29,4927 2.4 3.2 Private Top 10 36.2 49.8 Other 36.5 50.2 Total 72.7 100.0 Reduced from £5.9m or 9.1% at acquisition Reduced from £7.0m or 9.7% at acquisition

RETAIL MARKET

39

Growing Competitively Threatened Rightsizing

INVESTMENT YIELDS

40

4.0% 5.0% 6.0% 7.0% 8.0% 9.0% 10.0% 11.0% Good secondary retail RW - prime restricted solus RW - prime restricted RP RW - secondary Distribution - prime

Peak yields Trough yields Mean yields Current yields 1 StdDev

Source: CBRE

INVESTMENT ACTIVITY – ACQUISITIONS

41

• No. of

LMP cost NIY WAULT In the period to Mar-14 Sector assets Date (£m) (%) to expiry to 1st break Ipswich – Martlesham Heath Retail 1 14-May-13 10.4 6.5 10.9 10.9 Birmingham – WH Smith DC Distribution 1 1-Aug-13 10.1 7.9 21.0 21.0 Retail park portfolio1 Retail 2 7-Aug-13 25.8 8.0 6.8 6.8 Eastbourne – Lottbridge RP2 Retail 1 13-Aug-13 3.0 7.2 11.5 11.5 Leicester – Boden DC Distribution 1 5-Sep-13 5.2 8.3 7.0 4.0 Crick – Norbert Det. DC Distribution 1 13-Sep-13 17.9 7.0 15.0 10.0 Wickes units2,3 Retail 5 27-Sep-13 9.3 7.2 19.4 19.4 Dartford – Darford Heath RP2 Retail 1 15-Oct-13 3.2 6.6 10.3 10.3 Bedford – Argos DC Distribution 1 18-Oct-13 51.7 7.0 9.4 9.4 Odeon portfolio4 Leisure 10 18-Nov-13 80.7 7.2 24.9 24.9 Brackmills – Travis Perkins DC Distribution 1 21-Nov-13 9.0 8.8 0.3 0.3 Hertford – Madford RP2 Retail 1 19-Dec-13 5.4 5.9 12.5 11.6 Bridgwater – The Range2 Retail 1 24-Jan-14 1.2 6.8 18.8 18.8 Daventry – Royal Mail DC Distribution 1 13-Feb-14 36.0 6.5 9.6 9.6 DFS JV portfolio5 Retail 27 25-Mar-14 53.4 9.4 16.0 16.0 Subtotal 55 322.3 7.7 14.9 14.6 Post period end Sheffield – M&S DC Distribution 1 30-Apr-14 32.2 7.6 9.6 7.3 Rotherham – Royal Mail DC Distribution 1 13-May-14 10.3 6.0 13.9 13.9 Swindon – Oak Furniture Land DC Distribution 1 29-May-14 22.1 6.5 13.6 8.6 Doncaster – Superdrug Distribution 1 24-Jun-14 13.0 7.6 11.8 6.9 Islip DC development Development 1 Tbc 16.0 na na na Subtotal 5 93.6 7.1 11.5 8.3

(1) Cardiff (Seager RP) & Milton Keynes (Westcroft RP) (2) MIPP JV, LondonMetric share 33.3% (3) Barnsley, Chatham, Maldon, Oldham & Oxford (4) Chelmsford, Derby, Huddersfield, Lee Valley (London), Dudley (Merryhill), Preston, Tamworth, Taunton, Telford, Warrington (5) DFS JV, LondonMetric share 30.5%

INVESTMENT ACTIVITY – DISPOSAL

42

• No. of

LMP proceeds NIY WAULT In the period to Mar-14 Sector assets Date (£m) (%) to expiry to 1st break Distribution portfolio Distribution 11 2-Jul-13 138.4 5.0 9.2 9.2 Gillingham Development 1 30-Aug-13 3.3 na na na One Fleet Place Office 1 17-Sep-13 112.5 5.1 12.0 12.0 Oxford – Wickes unit1 Retail 1 25-Oct-13 4.1 5.3 24.7 24.7 Retail Parks2 Retail 2 27-Nov-13 19.2 6.8 12.9 12.2 Bedford – Midland Rd Retail 1 18-Dec-13 6.5 6.2 9.8 9.8 Congleton – Congleton RP Retail 1 20-Dec-13 16.4 5.8 8.4 7.0 Leatherhead – Unilever House Office 1 30-Jan-14 75.8 5.9 9.8 9.8 Dudley – Odeon Leisure 1 31-Jan-14 7.7 6.0 24.4 24.4 DFS JV portfolio3,4 Retail 8 25-Mar-14 13.2 8.6 16.0 16.0 Residential – various Residential

(5)

Various 171.36 2.0 na na Subtotal 30 568.4 4.4 9.6 9.5 Post period end Berkhamsted – M&S Retail 1 30-May-14 12.3 3.9 19.5 19.0 Huddersfield – Odeon Leisure 1 Jun-14 15.2 6.1 24.4 24.4 DFS JV portfolio3,7 Retail 3 29-Sep-14 5.2 7.8 16.0 16.0 DFS JV LLH assets3,8 Retail 2 25-Apr-14 1.2 8.5 16.0 16.0 Subtotal 7 33.9 5.6 21.0 20.8

(1) MIPP JV, LondonMetric share 33.3% (2) St Mary’s Rd, Sheffield & Nottingham RP, Mansfield (3) DFS JV, LondonMetric share 30.5% (4) Adwick le Street, Alfreton, Carcroft, Matlock, Rotherham, Scunthorpe, Stoke on Trent, Warrington (5) 352 units exchanged: CQ: 107, Highbury: 123; Stockwell; 69; Battersea; 41: Moore House: 12 (6) CQ: £61.2m; Highbury: £53.0m; Stockwell: £28.9m; Battersea: £23.9m; Moore House: £4.3m (7) Swansea, Swindon, Sunderland (8) Adwick le Street, Hull

VALUATION CONTRIBUTION BY SECTOR

43

20 40 60 80 100

(£m)

Residential Valuation surplus £95.9m +8.5%

• 60bps

Office Development Distribution Retail £5.3m £26.8m £2.9m £25.0m £35.9m

ASSET MANAGEMENT – PLANNING GAINS

44

Scheme name Location Sector Consent Sq ft Comment Initiative Alban Retail Park Bedford Retail A3 1,000 1 pod unit Development Tindale Crescent Bishop Auckland Retail A3 4,100 3 pod units Development Channons Hill Bristol Retail Open A1 6,000 Poundland sale of food Asset management D2 23,900 Xercise 4 Less leisure use Asset management Airport Retail Park Coventry Retail A1 (inc toys) 15,000 SmythsT

• ys relaxation of use

Asset management Pierpoint Retail Park Kings Lynn Retail Open A1 5,000 New unit Development Damolly Retail Park Newry Retail Open A1 9,800 Home Bargains relaxation of use Asset management Christchurch Retail Park Christchurch Retail Open A1 10,100 Home Bargains relaxation of use Asset management Mountbatten Retail Park Southampton Retail D2 10,800 Gym Group leisure use Asset management Carter Lane London Office B1 129,200 Full Cat A fit out and refurbishment Development T

• tal

214,900

PORTFOLIO METRICS

45 Revaluation Capital Total Rent Fixed Area Valuation surplus Voids return return IY WAULT (years) roll uplifts Average rent (£ psf) As at 31-Mar-14 (m sq ft) (£m) (£m) (%) (%) (%) (%) expiry break (£m) (%) existing Sustainable Retail – wholly owned 1.8 437.7 29.4 0.7 8.3 15.5 6.3 12.7 11.9 29.3 33.2 16.20 19.50 MIPP JV 0.3 53.6 2.9

• 6.7

14.3 6.3 14.9 14.7 3.6 24.6 14.50 18.00 DFS JV 0.2 48.5 3.6

• 10.5

10.6 7.8 16.0 16.0 4.0

• 22.80

16.30 Distribution 4.3 336.0 25.0 0.4 12.8 20.5 6.1 12.4 11.2 22.1 34.5 5.10 5.80 Office 0.3 75.9 5.3

• 13.2

21.2 6.9 10.2 8.9 6.0 48.5 20.20 22.30 Investment portfolio 6.9 951.7 66.2 0.4 10.7 18.3 6.4 12.7 11.8 65.0 32.6 9.50 10.60 Residential – wholly owned 0.0 22.2 1.7 n/a 4.5 6.4

• 0.5
• Moore House JV

0.1 74.0 1.2 n/a 2.0 3.9

• 1.5
• Developments

1.6 171.9 26.8 n/a 28.7 29.5

• 11.0

47.6 Total 8.6 1,219.8 95.9 n/a 11.2 17.0

• 78.0

37.8

INCOME STATEMENT

PROPORTIONATELY CONSOLIDATED

46

2014 FY to 31 March (£m) Group JV T

• tal

20131 Profit profit/(loss) after tax 110.9 14.4 125.3 (13.5) Net income 51.3 7.2 58.5 45.5 Management fees 0.8 (0.8)

• 7.1

Administrative costs (13.5) (0.4) (13.9) (11.7) Net finance costs (15.4) (2.9) (18.3) (19.6) Current tax 0.1

• 0.1

0.7 EPRA profit 23.3 3.1 26.4 22.0 Valuation movements2 101.7 11.3 113.0 17.9 Exceptional costs3 (14.1)

• (14.1)

(53.4)

(1) 12 months of London & Stamford and two months of Metric Property (2) Includes revaluation, derivative movements, profit/(loss) on sales and cost of closing out derivatives (3) Relating to the internalisation of management in 2010 and taxation

BALANCE SHEET

PROPORTIONATELY CONSOLIDATED

47

2014 31 March (£m) Group JV T

• tal

2013 Property portfolio (including trading properties) 1,030.6 189.2 1,219.8 1,216.8 Cash 78.4 9.1 87.5 45.9 Bank debt (415.5) (57.6) (473.1) (573.0) Other net assets (78.7) 0.4 (78.3) (13.0) Net assets 614.8 141.1 755.9 676.7 EPRA adjustments 1.1 10.6 EPRA net assets 757.0 687.3 EPRA NAV per share (p) 121 109 LTV (%) 32.7 43.3

DEBT FACILITIES

48

As at 31 March 2014 Facility Drawn Maturity Asset(s) Sector Lender (£m) (£m) (years) Expiry Wholly-owned portfolio Distribution term loan1 Distribution Helaba 143.1 143.1 4.3 26-Jul-18 Residential term loan2 Residential MetLife 17.6 17.6 2.3 29-Jul-16 General revolver3 na Bank of Scotland 56.5 40.5 2.2 20-Jun-16 Retail revolver Retail RBS 80.0

• 2.6

16-Nov-16 Retail term loan 14 Retail RBS 140.0 140.0 4.4 6-Aug-18 Retail term loan 25 Retail Wells Fargo 34.7 34.7 2.1 27-Apr-16 Odeon term loan6 Leisure Lloyds 39.6 39.6 3.6 18-Nov-17 T

• tal wholly-owned

511.4 415.5 3.8 JV portfolio (LondonMetric at share) Distribution JV (50%)7 Distribution MetLife 7.4 7.4 1.9 23-Feb-16 Moore House (40%) Residential RBS 25.1 25.1 2.4 28-Aug-16 MIPP JV (33.3%)8 Retail Deutsche Pfandbriefbank 25.0 25.0 3.8 22-Jan-18 T

• tal JV portfolio

57.5 57.5 3.0 T

• tal Group and JV

568.9 473.0 3.7

(1) Wellingborough, Crawley, Nottingham, Thrapston, Birmingham, Bedford, Crick, Leicester, Northampton, Daventry (2) Highbury, Battersea, Clapham; repaid in full on 30 April 2014 (3) Marlow (4) Christchurch, Leicester, Luton, Southampton, Milton Keynes – Cairngorm, Tonbridge, Ipswich, Bishop Auckland, Loughborough, (5) Launceston, Coventry, Newry Milford Haven, Wick, Scarne, King’s Lynn, Bedford, St Albans, Hove, Cannock, Cardiff & Milton Keynes – Seager (6) Chelmsford, Derby, Huddersfield, Lee Valley (London), Preston, Tamworth, Taunton, Telford, Warrington (7) Tesco DC, Harlow (8) Ashford, Bristol (Longwell Green), Camborne, Haverhill, Inverness, Lichfield, Londonderry, Nottingham, Orpington, Swindon, Eastbourne, Dartford, Wickes (Barnsley, Chatham, Maldon, Oldham), Bridgwater, Hertford

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