HALF YEAR RESULTS TO SEPT 2015 26 th November 2015 - - PowerPoint PPT Presentation

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HALF YEAR RESULTS TO SEPT 2015

26th November 2015

AGENDA

2

• Highlights
• Strategy & Market
• Financial
• Investment
• Property
• Outlook
• Questions

HIGHLIGHTS

Andrew Jones

Financial Highlights

4

Key highlights 30 Sept 2015 6 month change EPRA NAV per share 147p +5.7%¹ Reported Profit £64.3m Valuation Movement £47.2m Income Statement 30 Sept 2015 12 month change EPRA Earnings £23.4m +12% EPRA Earnings per share 3.75p +12% Interim Dividend per share 3.50p

• Accounting Return over 6 months

8.2%

• 1. Comparative period adjusted for 2.0p special dividend

Portfolio Highlights

5

Portfolio Valuation

£1,471m

March 2015: £1,400m

Core portfolio

+4.8%

capital return

ERV Growth

+2.7%

like for like

Income Growth

+2.1%

like for like

EPRA NIY1

5.5%

22 bps yield movement

Total Property Return2

+7.0%

IPD total return 6.8%

1. Topped up NIY 2. Commercial Portfolio

Distribution: +5.9% Retail: +3.2%

Operational Highlights

6

Investment activity

£208m

in the period

Yield Arbitrage

+80bps

+120bps including capital expenditure Delivered development²

1.9m sq ft

adding £11.7m of rent pa

Occupancy

99.9%

investment portfolio

WAULT

13.4 years

investment portfolio

1 Efficient Capital Allocation £120.0m disposals at NIY 5.3% £87.8m acquisitions at NIY 6.1% £59.3m development capex at 7.2% yield on cost¹ 2 Delivering Development 1.9m sq ft of development completed² 0.7m sq ft under development at 6.2% yield on cost 1.4m sq ft development pipeline at c.7.1% yield on cost 3 Growing Earnings with Future Growth Delivered £1.9m pa additional rent from 31 asset management deals Like for like income growth 2.1%; ERV growth of 2.7% Future income growth embedded in 48% of the portfolio

• 1. Excluding lease incentives
• 2. Including post period end completions of Warrington & Kirkstall, Leeds (rent based on income once fully let)

STRATEGY & MARKET REVIEW

Andrew Jones

Retail Market Structural Shift

Evolution of consumer trends

8

Online UK shoppers

61.3%

double OECD average

Online sales growth

+45%

to 25% of all non food sales 2019

Next day delivery

+18%

growth year on year

Click & Collect

+63%

growing to £4.0bn by 2018

UK most sophisticated online shopping market Non food internet penetration now 17.5% Supply chains now consumer facing as retailers compete for next day delivery Spending migrating away from more traditional modes of shopping Consumer trends affecting real estate decisions

Sources: Verdict, IMRG

9

Sheds Are The New Shops

Distribution the strongest sub sector of retail

Distribution take up

>32m sq ft

+25% against long term average

Distribution Availability

<22m sq ft

reflecting 8 months of take up

Retailer demand represents

60%

• f distribution take up

Retailers looking to meet shopper demands for instant gratification Demand for sophisticated logistic networks with increasing investment in automation Changing consumer patterns affecting trajectory of rental movements for both distribution and retail Marginalising formerly prime retail locations Distribution & fulfilment becoming more important than stores

Sources: Savills, Verdict

Our Core Sectors

Focus on winning retailers

10

Distribution Portfolio valuation: £675m Total return: +8.6% NIY: 5.0% Occupancy: 100%, WAULT: 13.9 yrs Retail Portfolio valuation: £470m Total return: +5.9% NIY: 5.9% Occupancy: 99.7%, WAULT: 12.4 yrs

Convenience Retail Retail Parks Development Distribution Residential Leisure

46% 8% 4% 28% 5% 5% 4%

£1,471m

September 2015

Office

• 1. Core stretch assets will have strong real estate fundamentals, good income characteristics & high occupier contentment in sectors where we have expertise

Investment Strategy

11

Income

Strong and sustainable

Asset management

Grow, strengthen and lengthen income

Short-cycle development

Refurbish, redevelop and extend

Distribution Retail

Occupier led

Core Stretch1

Opportunistic Dagenham Aldi, Middlesboro Newark Odeon Wakefield Kings Lynn Kirkstall, Leeds

FINANCIAL REVIEW

Martin McGann

75.8 79.7 79.7 84.3 86.8 5.3 1.9 3.3 4.6 9.1

60.0 65.0 70.0 75.0 80.0 85.0 90.0 95.0 100.0

Income Progression

13

(£m)

Development Activity

Mar 15 annualised passing rent Delivered Development Net Investment Activity Sept 15 annualised passing rent Committed Development & Pipeline Occupier transactions & New Space PPE Activity Run Rate

Pipeline Activity Delivered Activity

Warrington Bedford

Stoke Asset Mgmt

Wakefield

Income Statement

14

30 Sept 2015 30 Sept 2014 Change Reported Profit £64.3m £69.7m Revaluation Surplus £47.2m £52.3m Net rental income £31.4m £28.3m Share of joint venture income £3.3m £5.6m Management fees £1.1m £1.0m Administrative costs

(EPRA cost ratio 17%)

£(6.6)m £(6.5)m Finance costs £(5.8)m £(7.5)m EPRA earnings £23.4m £20.9m +12% EPRA EPS 3.75p 3.35p +12% DPS 3.50p 3.50p

• Dividend Cover

107% 96% +11bps

Balance Sheet

Statutory

15

30 Sept 2015 31 Mar 2015 Property portfolio £1,261.8m £1,164.1m Joint ventures £134.8m £148.4m Cash £21.9m £50.6m Bank debt (£551.2m) (£465.5m) Other net liabilities £33.8m (£27.4m) Net Assets £901.1m £870.2m EPRA Adjustments £13.8m £7.0m EPRA Net assets £914.9m £877.2m EPRA NAV per share 147p 141p

Movements in EPRA NAV

16

NAV per share (p)

140.6 138.6 138.6 138.8 138.8 139.0 146.6 2.0 3.7 3.5 0.2 7.6

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 Sept-15 Dividend Other

Finance Metrics

17

30 Sept 2015 31 Mar 2015 30 Sept 2014 Gross Debt £629m £563m £573m Undrawn facilities £56.3m¹ £83.4m £23.2m Loan to Value 37% 36% 38% Weighted average cost of finance 3.5% 3.7% 3.7% Weighted average maturity 6.1 years 4.2 years 3.6 years Hedging 95% 80% 71%

• 1. Excludes £43.8m accordion facility agreed post period end

INVESTMENT REVIEW

Valentine Beresford

¹ LM Share ² Includes PPE Activity: Two disposals at Cannock, & Enfield; One acquisition at Reading. Excludes conditional Omega South forward funding announced on 26 Nov 2015.

Investment Activity Summary

19

H1 2015/16 incl PPE £m2 H1 2015/16 £m¹ NIY WAULT Acquisitions £116.6m £87.8m 6.1% 13.1 yrs Retail £15.8m £15.8m 5.9% 18.7 Distribution £100.8m £72.0m 6.3% 11.9 Disposals £136.3m £120.0m 5.3% 12.4 yrs Retail £65.0m £50.1m 5.7% 10.5 Distribution £62.2m £62.2m 5.4% 14.6 Non Core (Residential) £9.1m £7.7m 1.9%

• T
• tal Activity

£252.9m £207.8m + 80 bps +0.7 yrs

Capital Recycling

Dispose assets that have delivered to plan

20

Harlow £37.2m 4.7% NIY Sold Apr 2015 Wellingborough Milton Keynes DFS, Enfield Southampton £29.2m 5.8% NIY Sold Aug 2015 £27.2m 5.7% NIY Sold Sept 2015 £24.5m 6.6% NIY Sold Oct 2015 (PPE) £16.2m 5.8% NIY Sold Aug 2015

Three disposals - £62.2m, NIY 5.4% Fully executed asset management plan IRR2 of 32% 1 further sale in legals Five disposals - £65.0m¹, NIY 5.9% Asset management plans completed 15 leasing initiatives undertaken IRR2 of 29% Four further sales in legals

Retail Sales Distribution Sales

¹ Including post period end 2 Geared IRR

£7.5m at Share £18.6m at Share

21

Speculative funding agreed on 356,000 sq ft grade A development Omega South top 5 UK distribution location Supply / Demand favourable for speculative development

• Limited UK supply
• Strong underlying occupier demand

Attractive anticipated returns

• Yield on cost of c.7.0%
• 150bps+ yield arbitrage
• Short cycle development - PC December 2016

Warrington – Omega South

Speculative Development

New distribution unit

356,000 sq ft

Capital expenditure

c.£30m

Target rent

£2.2m

Attractive YOC

c.7.0%

Distribution Portfolio

Aligning our portfolio to omni channel retailing

22

Building best in class portfolio Leveraging our retail expertise and relationships - 75% let to retailers 99% of portfolio acquired since merger at NIY 6.4% £130m of capex on completed developments – 7.1% yield on cost £145m of committed development and pipeline capex £766 million1 across 23 assets

• 1. Value of distribution investments and developments as at 30 September 2015 and including the DHL acquisition in Reading post period end

PROPERTY REVIEW

Mark Stirling

Development Activity

Delivered

24

Delivered

1.9m sq ft

94% distribution

Total Rent

£11.7m

per annum

Yield on Cost

7.2%

blended

Warrington Islip

Omega South – 690,000 sq ft £3.8m pa rent 15 year lease BREEAM Very Good Islip – 1.1m sq ft £5.3m pa rent 25 year lease BREEAM Very Good

Leeds

Kirkstall – 120,000 sq ft £2.6m pa rent¹ 13.8 years average lease BREEAM Very Good

1. Rent based on income when fully let. Currently 85% let.

Development Activity

Under construction

25

Wakefield

Wakefield – 524,000 sq ft distribution Yield on Cost 6.3% £2.5m pa rent with RPI uplifts, 15 yr lease £33m capital expenditure to complete Completion in Autumn 2016

Under construction

742,000 sq ft

currently

Total Rent / uplift

£5.3m

per annum

Yield on Cost

6.2%

blended

Capital Expenditure to complete

£70m

during 2016

Retail Activity

218,000 sq ft of retail development Yield on Cost 6.0% £2.8m pa rent £37m capital expenditure to complete Completion by Nov 2016

M62

Development Activity

Pipeline

26

700,000 sq ft Rent: £4.4m Yield on cost c.7.3% Completion estimated 2017/18

Bedford Stoke

Pipeline

1.4m sq ft

potential development

Total Rent

£8.0m

per annum subject to letting

Yield on Cost

7.1%

blended

Capital Expenditure

£112m

300,000 sq ft Rent: £1.4m Yield on cost c.6.8% Completion estimated 2017

Warrington

356,000 sq ft Rent: £2.2m Yield on cost c.7.0% Completion estimated end 2016

Asset Management Activity

27

No. Area (000 Sq Ft) % above ERV LFL rental growth WAULT (Years) New Lettings 15 130 4.7% 1.9% 13.7 Rent Reviews 16 1,007 5.4% 0.2%

• HY Total

31 1,137 5.2% 2.1%

Rent reviews settled at 1.5% ahead of previous passing rent Asset management activity delivered 10.1% income return on capital expenditure¹ 119,000 sq ft leasing activity in legals

¹ £17.6m asset management capital expenditure

Property Performance

28

• 36% of capital return through asset management activity
• ERV growth 2.7% v IPD 2.3%
• Consistent property outperformance over last 3 years
• Distribution outperformance 1.51x IPD
• Retail outperformance 1.22x IPD

Total Return Income Return Capital Return HY to Sept 15 LMP IPD LMP IPD LMP IPD Distribution 8.6 8.0 2.6 2.8 5.9 5.1 Retail 5.9 4.4 2.7 2.5 3.2 1.9 Core Portfolio 7.5

• 2.6
• 4.8
• All Property¹

7.0 6.8 2.7 2.4 4.2 4.4

1.

LMP Commercial Property Portfolio

OUTLOOK

Andrew Jones

Market Outlook

30

Asset performance will continue to ‘polarise’

• market yield compression slowing
• returns increasingly dominated by income and growth prospects

Consumer outlook continues to improve

• rapidly changing consumer shopping patterns
• retailers need less bricks and more clicks
• legacy retail is challenged
• distribution best performing sub-sector of retail

Supporting our internet reliant strategy

Look Forward

31

1 Sector Focus

Sector focus reflects modern day shopping behaviour

• Distribution and convenience – structural changes
• Retail parks – opportunistic

2 Income

Focus on income growth

• rganically
• contractually
• asset management & development

3 Capital

Leverage strong occupier knowledge & relationships

• accretive acquisitions & development
• unemotional recycling

4 Total Returns

Deliver total shareholder returns

• underlying income growth
• dividend progression
• growing NAV

QUESTIONS?

APPENDICES

34 Revaluation Rent Fixed Area

100%

Valuation

LMP Share

surplus Occupancy NIY WAULT (years) roll uplifts Average rent (£ psf) As at 30-Sept-15 (m sq ft) (£m) (£m) (%) (%) (%) expiry break (£m) (%) Existing Retail – wholly owned 1.1 265.1 1.8 0.7 99.8 6.2 10.7 9.4 17.5 23.6 16.50 Retail - convenience 0.2 61.7 1.2 1.9 100.0 5.8 18.1 18.0 3.8 31.4 17.20 Retail - MIPP JV 0.9 103.7

• 0.1
• 0.1

99.1 6.0 12.7 12.3 6.6 20.9 14.30 Retail - DFS JV 0.3 39.6 0.4 0.9 100.0 7.5 14.5 14.5 3.1 0.0 32.70 Retail Subtotal 2.5 470.1 3.3 0.7 99.7 5.9 12.4 11.6 31.0 24.7 16.90 Distribution 6.9 675.0 28.3 5.3 100.0 5.0 13.9 13.1 36.0 60.0 5.40 Leisure 0.3 78.5 0.8 1.0 100.0 6.1 21.9 21.9 5.0 100.0 15.60 Office 0.2 77.4 1.9 2.6 100.0 6.1 7.8 7.8 4.9 60.9 21.30 Investment portfolio 9.9 1,301.0 34.3 3.0 99.9 5.5 13.4 12.7 76.9 48.4 8.50 Residential

• 61.7
• 0.2
• 0.3

n/a

• 1.0

Developments 1.7 108.7 13.1 6.4 n/a

• 8.8

Total 11.6 1,471.4 47.2 3.3 n/a

• 86.7

Portfolio Metrics

T enant Rent (£m pa) % of total Rent Market cap (£m)3 9.3 10.9 27,6006 6.2 7.3 5,310 4.7 5.5 710 4.7 5.5 8,520 4.6 5.4 N/A 4.1 4.7 8305 3.8 4.4 N/A 3.6 4.2 8,1404 3.3 3.8 4,820 3.1 3.6 N/A T

• tal

47.4 55.3% Other commercial 38.3 44.7% Residential 1.0 T

• tal

86.7

T

• p 10 Customers1,2

35

(1) Investment portfolio as at 30 Sept 2015 (2) Gross rental income based on annualised rents (3) Market capitalisation as at 10 Nov 2015 (4) Market capitalisation of parent Kingfisher (5) Market capitalisation of parent Home Retail Group (6) Market capitalisation of parent Associated British Food

Income exposure to retailers

81%

• f total rental income

Income exposure to PLCs

75%

• f total rental income

Within next 5 years

4.4%

• f income expires

T

• p 10 Assets as at 30 September 2015

36

Name Principal occupiers Ownership interest (%) Annualised net rent (£m) Let by income (%) Weighted average unexpired lease term (years) Islip Distribution Primark 100% 5.3 100% 25.0 Newark Distribution Dixons Carphone 100% 3.9 100% 17.8 Thrapston Distribution Primark 100% 4.0 100% 17.0 Marlow Office Allergan, Dunn & Bradstreet 100% 4.9 100% 7.8 Bedford Distribution Argos 100% 3.8 100% 7.2 Dagenham Distribution Eddie Stobart 100% 3.1 100% 15.8 Daventry Distribution Royal Mail 100% 2.5 100% 7.9 Warrington Distribution The Hut Group 100% 3.8 100% 15.0 Sheffield Distribution Marks & Spencer 100% 2.6 100% 8.2 Kirkstall Bridge Shopping Park, Leeds M&S, JD Sports, HomeBargains 100% 2.61 85%2 13.8

1 Once fully let 2 Including deals currently in legals

Convenience portfolio

Growing portfolio responding to retailer expansion requirements

37

£70 million portfolio of 11 assets Nine assets totalling £61.7 million Plus two assets in development totalling £7.9 million (YOC 5.6%) WAULT of 18.1 years Expect to grow to at least £100 million portfolio across 14 assets £15m costs to complete on developments1 Advanced discussions on 3 further assets totalling c£20 million

1 Includes £8.3 million extension at Loughborough and £7.0 million in total for Ferndown and Liverpool

Retail Market

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

38

Share of online retail sales to grow to 15.7% by 2019 from 7.1% in 2009 Online sales grown consistently by c.£3bn p.a. since 2005 – forecast to grow at same rate Online growth is stable in absolute terms 26 million households received c. 1 billion parcels in 2014 Next day delivery is up 18% year on year

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

Annual online growth for omni channel retailers

• utstripped pure plays in 2014 (15% v 13%)

Internet sales make up c.30% of established omni channel retailers (eg Dixons Carphone = 29%; John Lewis = 25%; Argos = 44%) Established omni channel retailers seeing store sales fall with internet sales rising (eg John Lewis) 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)

Other retailers re-positioning their portfolio (eg Mothercare total UK sales broadly static, but UK store space reduced 4.5% (32 stores) & online now 30%)

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

Investment Yields

39

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, Nov 2015 – yields assume rack rented 15 year leases let to strong covenants with open market rent reviews

Investment Activity

Acquisitions

40

• No. of

Price LMP share NIY WAULT H1 Sector assets Date (£m) (£m) (%) to expiry to 1st break Basildon Distribution 1 Apr-15 3.5 3.5 6.5 4.6 4.6 Cowes Retail 1 Apr-15 3.0 3.0 5.6 20.0 20.0 Haslemere Retail 1 May-15 4.8 4.8 5.3 20.0 20.0 Penrith Retail 1 May-15 4.7 4.7 6.0 20.0 20.0 South Elmsall Distribution 1 Jun-15 29.0 29.0 6.3 8.6 8.6 Speke Retail 1 Jun-15 6.9 3.4 6.8 15.0 15.0 Wakefield Distribution 1 Jun-15 39.4 39.4 6.3 15.0 15.0 TOTAL 7 91.3 87.8 6.1 13.1 13.1

Investment Activity

Disposals

41

Disposals

• No. of

Price LMP share NIY WAULT H1 Sector assets Date (£m) (£m) (%) to expiry to 1st break Lichfield Retail 1 Apr-15 13.3 6.6 5.5 11.5 11.0 Brackmills Distribution 1 Apr-15 14.4 14.4 5.5 8.9 8.9 Harlow Distribution 1 Apr-15 37.2 18.6 4.7 24.3 24.3 Wellingborough Distribution 1 Aug-15 29.2 29.2 5.8 12.3 12.3 Mountbatten, Southampton Retail 1 Aug-15 16.2 16.2 5.8 12.6 11 Westcroft, Milton Keynes Retail 1 Sep-15 27.2 27.2 5.7 8.9 8.9 Residential Residential 15 Various 17.0 7.8 1.9

• TOTAL

21 154.5 120.0 5.3 12.4 12.1

42

Investment Activity

Post Period End

• No. of

Price LMP share NIY WAULT Acquisitions Sector assets Date (£m) (£m) (%) to expiry to 1st break Reading Distribution 1 Nov-2015 28.8 28.8 5.8 10.0 10.0 Sub-T

• tal

1 28.8 28.8 5.8 10.0 10.0 Disposals Cannock Retail 1 Oct-2015 7.5 7.5 6.2 14.8 14.8 Enfield Retail 1 Oct-2015 24.5 7.5 6.6 15.0 15.0 Moore House Residential 2

• 3.4

1.3

• Sub-T
• tal

4 35.4 16.3 6.4 14.9 14.9 T

• tal

5 64.2 45.1

Development Activity

43 Location Sector Sq ft % Pre Let Comment PC date Rent roll / uplift YOC1

• n PC2

Valu’n yield (£m) (%) (%) Committed Wakefield Distrib 524,000 100% Let to Poundworld for 15 years Oct-16 2.5 6.3 5.7 Kings Lynn Retail 72,000 100% Lettings signed with DFS, Tapi, B&M, Next & Poundland Oct-16 0.4 5.7 5.8 Liverpool Retail 29,000 100% Pre let to Aldi and Marks & Spencer Apr-16 0.5 5.8 5.1 Leicester Retail 29,000 100% Pre-let to Smyths Toys and Home Bargains Jul-16 0.4 7.4 5.8 Hove Retail 28,000 100% New lease to DSG on an enlarged store Oct-16 0.3 11.1 5.6 Tonbridge Retail 18,000 100% Re-size of Halfords, new lease to M&S Nov-16 0.1 3.8 5.3 Coventry Retail 18,000 100% New build unit for Aldi Jul-16 0.3 7.3 5.8 Loughborough Retail 13,000 100% Food store extension to 54,000 sq ft By Dec-16 0.5 5.1 4.6 Ferndown Retail 11,000 100% New 20 year lease to Marks & Spencer Apr-16 0.3 5.3 4.5 Total committed 742,000 100% 5.3 6.2 5.3 Conditional Bedford Distrib 700,000

• Planning expected to be received shortly

Warrington Distrib 356,000

• Planning expected to be received in time to allow construction to commence in Mar16 and PC in Dec 16

Stoke Distrib 300,000

• Planning received and demolition work to commence shortly

(1) Yield on cost (2) Practical completion

Consistent Property Outperformance

44 6.9 5.0 18.1 9.9 17.6 5.9 5.6 7.3 25.8 9.2 20.0 8.6 3.0 4.6 13.4 9.3 16.6 6.8

0.0 5.0 10.0 15.0 20.0 25.0 30.0 FY 2013 HY 2014 FY 2014 HY 2015 FY 2015 HY 2016 LMP Retail LMP Distribution IPD

Significant outperformance of core IPD:

Distribution: 1.51x Retail: 1.22x

Valuation Performance

45

Asset Management 26% Development 10% Distribution market yield movement 59% Retail market yield movement 5% £47.2m Valuation uplift

36% valuation movement attributable to asset management activity Distribution market yield shift reflecting our strategy to re-weight to the sector 22 bps yield compression across the portfolio Portfolio NIY of 5.5% compared to IPD of 4.9%

Balance Sheet

Proportionately Consolidated

30 September 2015 31 March 2015 (£m) Group JV T

• tal

T

• tal

Property portfolio 1,261.8 209.6 1,471.4 1,400.4 Cash 21.9 7.6 29.5 63.6 Bank debt (551.2) (77.8) (629.0) (563.0) Other net liabilities 33.8 (4.6) 29.2 (30.8) Net assets 766.3 134.8 901.1 870.2 EPRA adjustments 13.8 7.0 EPRA net assets 914.9 877.2 EPRA NAV per share (p) 146.6p 140.6p

46

Income Statement

Proportionately Consolidated

30 September 2015 30 September 2014 (£m) Group JV T

• tal

T

• tal

Reported profit 61.1 3.2 64.3 69.7 Net rental income 31.4 5.5 36.9 35.9 Management fees 1.1 (0.5) 0.6 0.6 Administrative costs (6.6) (0.1) (6.7) (6.6) Net finance costs (5.8) (1.6) (7.4) (9.0) EPRA Earnings 20.1 3.3 23.4 20.9 Valuation Movement 47.0 0.2 47.2 52.3 Exceptional items1 (6.0) (0.3) (6.3) (3.5)

47

(1) Includes derivative movements, profit/(loss) on sales, early closure costs of debt and hedging and deferred tax

Debt Facilities

As at 30 September 2015

Facility Drawn Maturity Asset(s) Sector Lender (£m) (£m) (years) Expiry Wholly-owned portfolio Distribution term loan Distribution Helaba 196.2 196.2 6.2 28-Nov-21 Unsecured1 All Syndicate 443.8 355.0 6.5 1-Apr-22 T

• tal wholly-owned

640.0 551.2 6.4 JV portfolio (LondonMetric at share) Moore House (40%) Residential RBS 10.9 10.9 0.9 28-Aug-16 DFS JV (30.5%) Retail M&G 21.9 21.9 3.8 23-Jul-19 MIPP JV (50%) Retail Deutsche Pfandbriefbank 56.3 45.0 4.3 22-Jan-20 T

• tal JV portfolio

89.1 77.8 3.7 T

• tal Group and JV

729.1 629.0 6.1

48

(1) Includes £43.8m accordion facility agreed post period end

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