FULL YEAR RESULTS TO MARCH 2016 1 st June 2016 - - PowerPoint PPT Presentation

www.londonmetric.com

FULL YEAR RESULTS TO MARCH 2016

1st June 2016

AGENDA

2

Highlights Strategy & Market Financial Investment Property Outlook Questions

HIGHLIGHTS

Andrew Jones

Financial Highlights

4

Key highlights FY Mar 2016 FY Mar 2015 Change EPRA Earnings £48.5m £40.9m +19% EPRA Earnings per share 7.8p 6.6p +18% Dividend per share 7.25p 7.0p1 +4% EPRA NAV per share 148p 141p +7%2 Earnings yield3 5.5% 5.4% Reported Profit £82.7m £159.5m Valuation Movement £49.8m £118.4m LTV 38% 36% Accounting Return 11.5% 21.7%

1. Excludes 2.0p special dividend 2. Comparative period adjusted for 2.0p special dividend 3. EPRA earnings for the year divided by opening EPRA NAV

Portfolio Highlights

5

Portfolio Valuation

£1,521m

March 2015: £1,400m

Total Property Return1

+10.9%

Benchmark: 10.1%2 Capital Return1

+5.2%

ERV Growth

+6.4%

in period

Income Growth

+3.1%

like for like

EPRA NIY3

5.4%

1. Core Portfolio 2. Reweighted to LMP core sectors 3. Topped up NIY

Distribution: +7.9% Retail: +2.3%

Operational Highlights

6

Net Rental Income1

+10%

+£6.8m in the year

Delivered Development

1.9m sq ft

Adding £11.7m pa rent² Investment Activity Yield Arbitrage

+100bps

Occupancy

99.3%

investment portfolio

WAULT

12.8 years

investment portfolio

1 Growing Resilient Rental Income Increase in net rental income to £77.7m Like for like income growth of 3.1% Completed developments during the year contributed £5.0m 2 Efficient Capital Allocation £204m disposals at NIY 5.6% £188m acquisitions at NIY 6.6% £42m development capex3 at yield on cost 7.1% 3 Future Income Growth 1.1m sq ft under development Contracted rent £87.1m rises to £89.3m upon completion 1.1m sq ft development pipeline adding further £7.7m

1. Including JV rental income 2. Including Islip, THG Warrington & Kirkstall (rent based on income once fully let) 3. Capex relates to spend in FY15/16 on developments currently in construction

STRATEGY & MARKET REVIEW

Andrew Jones

Investment Strategy

Income taking centre stage as yield tranquillity sets in

8

Income Asset Management Development

Repetitive and predictable income is increasingly attractive Compounding strategies will outperform many hyperactive ones Income to average 84% of total returns over next 4 years1 Asset management increasingly opportunistic Less focus on multi let operational assets Building income through short cycle development Creating value through extensions and refurbishments Operating in markets with attractive demand/supply dynamics

1. Source: Capital Economics

Post Merger Strategy Delivering Long T erm Value

Our key focus is to drive earnings Distribution Exposure (%)

9 20% 28% 40% 52%

0% 10% 20% 30% 40% 50% 60% 2013 2014 2015 2016

Lfl Income Growth (%) Earnings Growth (pps)

3.5% 3.4% 2.9% 3.1%

0.0% 0.5% 1.0% 1.5% 2.0% 2.5% 3.0% 3.5% 4.0% 2013 2014 2015 2016

3.9 4.2 6.6 7.8

• 1.0

2.0 3.0 4.0 5.0 6.0 7.0 8.0 9.0 2013 2014 2015 2016

Net Rental Income (£m)

45.5 58.5 70.9 77.7

• 10.0

20.0 30.0 40.0 50.0 60.0 70.0 80.0 90.0 2013 2014 2015 2016

Our Core Sectors

Focus on winning retailers

10

Distribution Portfolio valuation: £824m1 Total return: +13.1% NIY: 5.2%2 Occupancy: 100%, WAULT: 13.1 yrs Retail Portfolio valuation: £491m1 Total return: +8.6% NIY: 5.8%2 Occupancy: 98.1%, WAULT: 12.1 yrs

Convenience Retail Retail Parks Development Distribution Residential Leisure

52% 4% 4% 27% 4% 5% 4%

£1,521m

March 2016

Office

1. Portfolio valuation includes assets in development 2. Topped up NIY

FINANCIAL REVIEW

Martin McGann

70.9 75.9 75.9 77.7 84.0 84.0 5.7 12.8 13.5 1.8 9.4 3.1

Warrington

40.0 50.0 60.0 70.0 80.0 90.0 100.0

Income Progression

12

(£m)

Net rental income Mar 15 L-f-L income from development and portfolio FY 16 Disposals Property cost savings Contracted rent potential FY15 & FY16 acquisitions Net rental & contracted income Mar 16

Warrington Bedford

PPE & deals in legals1

1. PPE and deals in legals as at 1 June 2016. Includes income effect of Hut disposal (£3.8m), expected letting of voids (£0.6m) and 2016 expected rental uplifts (£1.4m)

Bedford Stoke Crawley

Income Statement1

13

31 Mar 2016 31 Mar 2015 Reported Profit £82.7m £159.5m Revaluation Surplus £49.8m £118.4m Net rental income £77.7m £70.9m Management fees £1.3m £1.3m Administrative costs

(EPRA cost ratio 17%)

£(13.8)m £(12.6)m Finance costs £(16.7)m £(18.6)m Other

• £(0.1)m

EPRA earnings £48.5m £40.9m EPRA EPS 7.8p 6.6p DPS 7.25p 7.0p Dividend Cover 107% 94%

1. Proportionally consolidated basis

Balance Sheet1

14

31 Mar 2016 31 Mar 2015 Property portfolio £1,520.9m £1,400.4m Cash £46.7m £63.6m Bank debt £(637.9)m (£563.0)m Other net liabilities £(31.5)m (£30.8)m Net Assets £898.2m £870.2m EPRA Adjustments £23.9m £7.0m EPRA Net assets £922.1m £877.2m EPRA NAV per share 148p 141p

1. Proportionally consolidated basis

Movements in EPRA NAV

15

NAV per share (p)

140.6 138.6 138.6 139.4 139.4 147.4 147.7 2.0 7.8 7.0 8.0 0.3 1.8

120.0 125.0 130.0 135.0 140.0 145.0 150.0 155.0 160.0

EPRA NAV Mar-15 Special Dividend Adjusted EPRA Earnings Revaluation EPRA NAV Mar-16 Dividend Other Less SDLT Adjustment

Finance Metrics

16

31 Mar 2016 31 Mar 2015 Gross Debt £637.9m £563.0m Undrawn facilities £69.9m £83.4m Loan to Value 38% 36% Weighted average cost of finance 3.5% 3.7% Weighted average maturity 5.6 years 4.2 years Hedging 93% 80%

INVESTMENT REVIEW

Valentine Beresford

1. LM Share 2 NIY, on fully let basis

Investment Activity Summary

18

Number of transactions 2015/16 £m¹ Income £m¹ NIY %2 WAULT years Acquisitions 16 £187.6m 12.6 6.6% 12.9 yrs Retail 7 £32.1m 2.2 7.0% 19.0 Distribution 9 £155.5m 10.4 6.6% 11.4 Disposals 43 £204.1m 11.5 5.6% 13.9 yrs Retail 13 £110.1m 6.7 5.8% 13.3 Distribution 4 £80.4m 4.5 5.4% 15.5 Residential 26 £13.6m 0.3 1.8%

• T
• tal Activity

59 £391.7m + 100 bps

17

Disciplined Capital Allocation

Dispose assets that have delivered to plan

19

Wellingborough £29.2m 5.8% NIY Sold Aug 2015 Birmingham Hove Bristol Preston £18.2m 5.2% NIY Sold Dec 2015 £13.6m 5.4% NIY Sold Dec 2015 £12.6m 5.4% NIY Sold Dec 2015 £10.2m 5.8% NIY Sold Jan 2016

4 disposals - £80.4m, NIY 5.4% Fully executed asset management plan IRR1 of 36% £53.7m sale of HUT Warrington

IRR1 of 22% completes Nov 16

13 disposals - £110.1m, NIY 5.8% Asset management plans completed

22 leasing initiatives undertaken

IRR1 of 26% 4 further disposals PPE - £17.1m, NIY 5.6% 8 further sales in legals

Retail & Leisure Sales Distribution Sales

£6.3m at Share

1. Geared IRR

Distribution Portfolio2

End to end logistics

20

Regional Distribution Mega Distribution

10 assets 2.4m sq ft £13.4m rent (av £5.60 psf) Average NIY1 5.3% WAULT 10.8 years 8 assets 5.4m sq ft £27.9m rent (av £5.15 psf) Average NIY1 5.1% WAULT 14.9 years

Depots

9 assets 600,000 sq ft, 70% in S.E. £3.8m rent (av £6.50 psf) Average NIY1 6.1% WAULT 7.5 years One acquisition in year Two under construction One acquisition in year £29m, NIY 5.8% Five acquisitions in year £28m, NIY 6.8%

1. Topped up net initial yield 2. Excludes developments at Warrington, Stoke, Bedford and Crawley

5yrs 5% 10yrs 33% 15 yrs 20% 20 yrs 30% 20+yrs 12%

Distribution Portfolio

Building best in class

21

£824 million1 across 31 locations Strong portfolio metrics2

Occupancy

100%

Contractual uplifts

58%

38% fixed

Average rent per sq ft

£5.50

blended

WAULT

13 years

62% of leases >10 years

75% let to retailers 99% acquired since merger at 6.3% NIY T wo developments under construction:

0.9m sq ft 6.8% yield on cost

Three pipeline developments:

1.1m sq ft 6.8% yield on cost

1. Valuation as at 31 March 2016 2. Investment portfolio as at 31 March 2016

Developments Investments

PROPERTY REVIEW

Mark Stirling

Distribution Development Activity

T wo developments under construction totalling £70 million

23

Wakefield

524,000 sq ft distribution Yield on cost 6.3% £2.5m pa rent with RPI uplifts, 15 yr lease £17.3m costs to complete Completion in September 2016 BREEAM Very Good

Warrington

356,000 sq ft distribution Yield on cost c7.0% £2.2m pa rent1 £24.7m costs to complete Completion in November 2016 BREEAM Very Good

M62

1. Rent estimated

Take up (2015)

30m sq ft

2014: 32m sq ft

Supply (2015)

15m sq ft

2014: 22m sq ft Spec Development

5.6m sq ft

v 10m sq ft average 2005-08

Active Requirements

23m sq ft

75% from retailers and 3PL

Rental Growth

+3.5%

IPD distribution warehouse ERV growth

Units > 100,000 sq ft Source: LSH, Gerald Eve, JLL

Distribution Development Pipeline

24

700,000 sq ft Rent: £4.4m1 Yield on cost c7.3% Occupier discussions

• ngoing

Completion estimated FY 2017/18

Bedford Stoke

Pipeline

1.1m sq ft

potential development

Total Rent

£7.1m

per annum1

Yield on Cost

6.8%

blended

Capital Expenditure

£104m

300,000 sq ft Rent: £1.4m1 Yield on cost c6.0% Demolition works started Completion estimated FY 2017/18 110,000 sq ft Rent: £1.3m1 Yield on cost c6.3% Planning expected by December Completion estimated FY 2017/18

Crawley CONSENTED

1. Rent estimated

M6/J15 4 mins

Retail Development Activity

7 developments under construction

25

T

• nbridge

Coventry

71,000 sq ft development of retail park Lettings to M&S, Halfords, Home Bargains 8.0% yield on cost Completion June 2017 18,000 sq ft convenience development Pre-let to Aldi 7.3% yield on cost Completion October 2016

Liverpool

29,000 sq ft convenience development Pre-let to Aldi and M&S 5.9% yield on cost Completion June 2016

Under construction

241,000 sq ft

Total Rent / uplift

£3.7m

per annum

Yield on Cost

7.5%

blended

Total Capital Expenditure

£49m

£35m cost to complete

Asset Management Activity

26

No. Area (000 Sq Ft) % above ERV LFL rental growth WAULT (Years) New Lettings 28 253 13.5% 2.8% 13.6 Rent Reviews 27 1,836 4.8% 0.3%

• FY Total

55 2,089 6.9% 3.1%

Post period end, settled distribution rent reviews across 290,000 sq ft at 15.4% ahead of previous passing rent Asset management activity delivered 10.2% income return on capital expenditure

Property Performance

27

LMP core return 10.9% v benchmark return 10.1% 39% of capital return through asset management activity ERV growth 6.4% v IPD 4.0%

Total Return Income Return Capital Return FY to Mar 16 LMP IPD LMP IPD LMP IPD Distribution1 13.1 12.4 4.9 5.4 7.9 6.7 Retail 8.6 7.5 6.2 5.1 2.3 2.3 Core Portfolio 10.9

• 5.5
• 5.2
• All Property

10.5 11.3 5.3 4.7 4.9 6.3

1. IPD distribution warehouse

OUTLOOK

Andrew Jones

Market Outlook

29

Consumer shopping patterns continue to evolve

Retailers continue to invest in logistics network to retain brand loyalty Stronger store locations remain relevant but only with capex Convenience is becoming even more critical to consumer

Performance will continue to polarise across the sectors

Distribution best performing retail sub-sector as demand exceeds supply Legacy retail remains challenged as occupiers right size store portfolios

Returns increasingly dominated by income and income growth

Compounding impact of repetitive income is increasingly attractive

Non food Retail Sales

17.4%

From 9.6% in 2009

Online Sales Growth

+45%

To 25% of all non food sales by 2019 “top-up shopping” trend growing

1 in 20

Visit their local shop daily

IPD Distribution return over 5 years

79%

Compared to 39% for IPD All Retail

Look Forward

30

1 Investing in winning sectors

Sector focus reflecting modern day shopping behaviour

Distribution exposure grows to c.60% on completion of developments Ambition to grow to 70% over next 18 months 2 Delivering resilient income and income growth

Sustainable earnings and income growth delivering dividend progression

Aim to grow contracted income c.£90m+ EPS growth delivered through short cycle development Focus on gross to net ratios 3 Disciplined capital allocation

Disciplined capital allocation with secure capital structure

Capex delivering strong income on equity Continue to retain attractive margin of safety 4 Delivering total returns

Total return dominated by income and income growth

Development to add incremental returns 84% of returns to be driven by income over next 4 years¹

1. Source: Capital Economics

QUESTIONS?

APPENDICES

T enant Rent (£m pa) % of total Rent Market cap (£bn)3 9.4 10.9 23.15 5.5 6.4 5.1 5.3 6.1 7.2 4.1 4.7 5.24 4.0 4.6 N/A 3.8 4.4 N/A 3.6 4.3 0.7 3.2 3.8 4.9 3.1 3.5 N/A 3.0 3.5 61.3 T

• tal

45.0 52.2 Other commercial 41.2 47.8 Residential 0.9 T

• tal

87.1

T

• p 10 Customers1,2

33

Income exposure to retailers

76%

• f total rental income

Income exposure to PLCs

71%

• f total rental income

Within next 5 years

6.0%

• f income expires

1. Investment portfolio as at 31 Mar 2016 2. Gross rental income based on annualised rents 3. Market capitalisations as at May 2016 4. Market capitalisation of parent, Sainsbury 5. Market capitalisation of parent, Associated British Food

34 Revaluation Rent Fixed Area Valuation

(Share)

Surplus Occupancy NIY1 WAULT (years) roll uplifts Average rent (£ psf) As at 31-Mar-16 (m sq ft) (£m) (£m) (%) (%) (%) expiry break (£m) (%) Existing Retail – wholly owned 1.1 293.9 2.9 1.0 97.4 5.6 10.6 9.3 19.3 22.2 16.90 Retail - convenience 0.3 66.6 2.8 4.3 97.8 5.1 18.4 18.3 4.1 77.1 17.00 Retail - MIPP JV 0.8 82.7

• 0.8
• 0.9

100.0 6.1 11.8 11.4 5.3 24.0 13.90 Retail - DFS JV 0.3 31.6

• 0.4
• 1.3

100.0 7.7 14.0 14.0 2.6 0.0 30.30 Retail Subtotal 2.5 474.8 4.5 1.0 98.1 5.8 12.1 11.2 31.3 27.7 16.90 Distribution 7.8 784.4 33.5 4.5 100.0 5.2 13.1 12.5 42.3 57.9 5.50 Leisure 0.3 69.0 0.9 1.3 100.0 6.0 21.3 21.3 4.4 100.0 15.30 Office 0.2 80.2 4.0 5.2 100.0 5.6 7.3 7.3 4.9 60.9 21.30 Investment portfolio 10.8 1,408.4 42.9 3.1 99.3 5.4 12.8 12.2 82.9 49.0 8.30 Residential

• 55.9
• 0.2
• 0.4

n/a

• 0.9

Developments 1.3 56.6 7.1 14.4 n/a

• 3.3

Total 12.1 1,520.9 49.8 3.4 n/a

• 87.1

Portfolio Metrics

1. Topped up NIY

Retail Market

Consumer habits have changed supported by online and more frequent top up shops

35

Share of online retail sales to grow to £61.5bn by 2019 from £21.9bn in 2009 Online sales grown consistently by c.£3.5bn p.a. since 2005 – Online growth is stable in absolute terms ASOS 112m website visits per month versus super regional shopping centres of 25m per year 26 million households received c. 1.1 billion parcels in 2015 - next day delivery is up 15.7% year on year Black Friday sales up 32% to £1.1bn

Internet Only Convenience

Convenience food market share grown from 14.6% to 17.8% in last 5 years Sector expected to grow 5% p.a., significantly ahead of all retail sales growth forecasts New entrants (Aldi, Lidl, B&M etc) are taking sizeable market share Aldi & Lidl account for c.10%+ of UK grocery market Marks & Spencer Simply Food to grow stores by 250

Omni Channel

Internet sales make up c.30% of established omni channel retailers (eg Next = c.40%; Dixons Carphone = c.30%; John Lewis = c.40%; Argos = c.52%) Established omni channel retailers seeing store sales fall with internet sales rising (eg John Lewis, Argos, M&S) The need for physical remains – click & collect and internal showrooming (eg 32% of all Argos sales & 54% of John Lewis

• nline sales through click & collect)

Retailers continue to re-position their store portfolio (eg DixonsCarphone from 431 stores to 338 stores by end 2016/17)

Sources: Javelin, IMRG, Verdict, Experian, Mintel, Company disclosures

Evolving Retailer Landscape

The modern supply chain is now consumer facing

36

INVESTMENT YIELDS

37

4.0% 5.0% 6.0% 7.0% 8.0% 9.0% 10.0% 11.0% Retail - good secondary RW - prime restricted solus RW - prime restricted RP RW - secondary Distribution - prime Industrial - good secondary

Peak yields Trough yields Mean yields Current yields 1 StdDev

Source: CBRE, May 2016 – yields assume rack rented 15 year leases let to strong covenants with open market rent reviews

T

• p 10 Assets as at 31 March 2016

38

Name Principal occupiers Annualised net rent (£m) Let by income (%) Weighted average unexpired lease term (years) Islip Distribution Primark 5.3 100% 24.5 Newark Distribution Dixons Carphone 3.9 100% 17.3 Thrapston Distribution Primark 4.0 100% 16.5 Marlow Office Allergan, Dunn & Bradstreet 4.9 100% 7.3 Bedford Distribution Argos 3.8 100% 6.7 Dagenham Distribution Eddie Stobart 3.1 100% 15.3 Warrington Distribution The Hut Group 3.8 100% 14.6 Daventry Distribution Royal Mail 2.5 100% 7.4 Kirkstall Retail, Leeds M&S, JD Sports, Home Bargains 2.61 90%2 12.8 Sheffield Distribution Marks & Spencer 2.6 100% 7.7

1. Once fully let 2. Including deals exchanged PPE

Development Activity

39 Location Sector Sq ft Comment Expected PC date Rent roll / uplift YOC1

• n PC2

Valu’n yield Mar 16 (£m) (%) (%) Wakefield Distribution 524,000 Forward funding. Let to Poundworld for 15 years Sept-16 2.5 6.3 5.1 Warrington Distribution 356,000 Planning approved in Mar-16 and construction commenced Nov-16 2.2 7.0 6.8 Tonbridge Retail 71,000 Re-size of Halfords complete with PC of M&S store in Oct. Planning expected on 38,000 sq ft B&Q split in June. 2016 / 17 0.7 8.0 5.9 Kings Lynn Retail 64,000 Lettings signed with DFS, Tapi, B&M, Next & Poundland. Phased completion for works Oct-16 1.0 11.3 7.5 Liverpool Retail 29,000 Pre let to Aldi and Marks & Spencer July-16 0.5 5.9 5.1 St Margaret’s, Leicester Retail 29,000 Pre-let to Smyths Toys and Home Bargains Jul-16 0.4 7.4 6.1 Aldi, Leicester Retail 18,000 New build unit for Aldi Aug-16 0.3 5.6 5.1 Coventry Retail 18,000 New build unit for Aldi Oct-16 0.3 7.3 5.4 Loughborough Retail 12,000 Food store extension to 54,000 sq ft Dec-16 0.5 5.1 4.6 Total committed 1,121,000 8.4 7.1 5.7 Bedford Distribution 700,000 Planning consent received. Acquisition of land expected Sept 16 2017 / 18 4.4 7.3%

• Stoke

Distribution 300,000 Planning received. Demolition work commenced 2017 / 18 1.4 6.0%

• Crawley

Distribution 112,000 Planning expected by Dec 16 Q1 18 1.3 6.3%

• Spenhill, Ipswich

Retail 31,000 Planning expected by Sept 16 2017 0.6 8.0%

• Pipeline

1,143,000 7.7 6.9

• 1.

Yield on cost 2. Practical completion

40

Development Capital Expenditure1,2,3 (£m)

1. Total costs include land acquisition 2. Capex on pipeline is predominantly subject to commitment and capex profile may change 3. Development capex schedule excludes smaller asset management capex Committed Development Total Historic FY 16/17 Wakefield 40 23 17 Warrington 30 5 25 Tonbridge 9 1 8 Kings Lynn 9 1 8 Liverpool 7 4 3 St Margaret’s, Leicester 6 4 2 Aldi, Leicester 5 2 3 Coventry 4 1 3 Loughborough 9 1 8 Total 119 42 77 Pipeline Development Total Historic FY FY FY 16/17 17/18 18/19 Bedford 60 18 30 12 Stoke 24 4 4 14 2 Crawley 20 10 8 2 Spenhill, Ipswich 8 3 3 2 Total 112 7 35 54 16

INVESTMENT ACTIVITY Acquisitions

41

Price LMP share NIY WAULT H1 Sector Date (£m) (£m) (%) to expiry to 1st break Basildon Distribution Apr 2015 3.5 3.5 6.5 4.6 4.6 Cowes Retail Apr 2015 3.0 3.0 5.6 20.0 20.0 Haslemere Retail May 2015 4.7 4.7 5.3 20.0 20.0 Penrith Retail May 2015 4.7 4.7 6.0 20.0 20.0 South Elmsall Distribution June 2015 29.0 29.0 6.3 8.6 8.6 Wakefield Distribution June 2015 40.0 40.0 6.3 15.0 15.0 Speke Retail June 2015 6.9 3.5 6.8 15.0 15.0 H2 Reading Distribution Nov 2015 28.8 28.8 5.8 9.6 9.6 Omega South Warrington Distribution Nov 2015 30.0 30.0 7.0

• Edinburgh

Distribution Dec 2015 2.4 2.4 8.2 11.0 8.0 Matlock Retail Jan 2016 3.6 3.6 7.0 25.0 25.0 Leicester Retail Mar 2016 4.7 4.7 5.7 20.0 15.0 Hemel Hempstead Distribution Mar 2016 7.5 7.5 6.3 14.9 14.9 Royston Distribution Mar 2016 8.3 8.3 6.5 12.7 12.7 Castle Donnington Distribution Mar 2016 6.0 6.0 7.1 9.1 9.1 Ipswich Retail Mar 2016 7.9 7.9 7.8 15.0 15.0 TOTAL 191.0 187.6 6.6 12.9 12.7

INVESTMENT ACTIVITY Disposals

42

Price LMP share NIY WAULT H1 Sector Date (£m) (£m) (%) to expiry to 1st break Harlow Distribution Apr 2015 37.2 18.6 5.0 24.3 24.3 Brackmills Distribution Apr 2015 14.4 14.4 5.5 8.9 8.9 Lichfield Retail Apr 2015 13.3 6.7 5.5 11.5 11.0 Battersea Residential July 2015 1.6 1.6 1.1 0.0 0.0 Wellingborough Distribution Aug 2015 29.2 29.2 5.8 12.3 12.3 Mountbatten, Southampton Retail Aug 2015 16.2 16.2 5.8 12.6 11.0 Milton Keynes Retail Sept 2015 27.2 27.2 5.7 8.9 8.9 Moore House Residential Various 15.4 6.2 1.9 0.0 0.0 H2 Cannock Retail Oct 2015 7.5 7.5 6.2 14.8 13.2 Enfield (DFS) Retail Oct 2015 24.5 7.5 6.6 14.5 14.5 Milford Haven (Pod) Retail Nov 2015 0.3 0.3

• 0.0

0.0 Hove Retail Nov 2015 13.6 13.6 5.4 15.0 15.0 Birmingham Distribution Dec 2015 18.2 18.2 5.2 18.7 18.7 Longwell Green Retail Dec 2015 12.6 6.3 5.4 15.3 14.7 Camborne Retail Dec 2015 9.9 4.9 6.1 12.3 12.3 Preston Leisure Jan 2016 10.2 10.2 5.8 22.2 22.2 Haverhill Retail Jan 2016 7.0 3.5 6.1 11.6 11.6 Maldon (Wickes) Retail Jan 2016 7.2 3.6 6.0 15.2 15.2 Nottingham (Wickes) Retail Feb 2016 5.2 2.6 6.4 14.9 14.9 Moore House Residential Various 14.4 5.8 1.9 0.0 0.0

TOTAL

285.1 204.1 5.6 13.9 13.6

43

INVESTMENT ACTIVITY Post Period End

Price LMP share NIY WAULT Acquisitions Sector Date (£m) (£m) (%) to expiry to 1st break

Modular Heating, Basildon Distribution May 2016 3.8 3.8 6.5 4.0 4.0 Crawley Distribution May 2016 20.0 20.0 6.3

Disposals

Taunton Leisure Apr 2016 9.1 9.1 5.5 22.2 22.2 Bridgwater Retail Apr 2016 4.9 2.5 5.1 16.8 16.8 Chatham Retail Apr 2016 6.9 3.5 5.6 17.2 17.2 Grimsby Retail May 2016 4.1 2.1 6.4 19.0 14.0

T

• tal PPE

48.8 41.0

Valuation Performance FY15/16

44

Asset Management 29% Development 10% Market yield movement 61% £60.5m1 Valuation uplift

39% valuation movement attributable to asset management and development activity 24 bps yield compression across the portfolio Portfolio NIY of 5.4% compared to IPD of 4.8%

1. Pre SDLT changes. Reported valuation uplift was £49.8m

Debt Facilities

As at 31 March 2016

Facility Drawn Maturity Asset(s) Sector Lender (£m) (£m) (years) Expiry Wholly-owned portfolio Distribution term loan Distribution Helaba 196.2 180.0 5.7 28-Nov-21 Unsecured All Syndicate 443.8 395.0 6.0 1-Apr-22 T

• tal wholly-owned

640.0 575.0 5.9 JV portfolio (LondonMetric at share) Moore House (40%) Residential RBS 6.0 6.0 0.4 28-Aug-16 DFS JV (30.5%) Retail M&G 18.4 18.4 3.3 23-Jul-19 MIPP JV (50%) Retail Deutsche Pfandbriefbank 43.5 38.5 3.8 22-Jan-20 T

• tal JV portfolio

67.9 62.9 3.3 T

• tal Group and JV

707.9 637.9 5.6

45

www.londonmetric.com