HALF YEAR RESULTS TO SEPTEMBER 2014 26 NOVEMBER 2014 - - PowerPoint PPT Presentation

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HALF YEAR RESULTS TO SEPTEMBER 2014

26 NOVEMBER 2014

AGENDA

2

HIGHLIGHTS STRATEGY FINANCIAL RESULTS INVESTMENT ACTIVITY ASSET MANAGEMENT ACTIVITY OUTLOOK Q&A

FINANCIAL HIGHLIGHTS

H1 2014/15 H1 2013/14 FY 2013/14

EPRA NAV per share

129p 112p 121p

Valuation Movement¹

£52.3m £35.6m £95.9m

Reported Profit

£69.7m £44.1m £125.3m

EPRA earnings per share

3.4p 1.9p 4.2p

Dividend per share

3.5p 3.5p 7.0p

Loan to Value (LTV)

38% 30% 32%

3

• 1. Including share of joint ventures

PORTFOLIO HIGHLIGHTS

Portfolio valuation: £1,346m

March 2014: £1,220 m

Portfolio Returns: Topped up initial yield: 6.1%

March 2014: 6.4%

Contracted rental income: £83.0m

March 2014: £78.0m

Occupancy¹: 99.6%

IPD: 92.8%

Investment portfolio WAULT: 12.7 years²

1. As at 30 September 2014, excluding Carter Lane, London 2. Weighted average unexpired lease term 11.8 years to first break

Six Month Ungeared Property Returns Retail 9.9% Distribution 9.2% Core Portfolio¹ 9.6%

IPD All Property 9.3%

4

OPERATIONAL HIGHLIGHTS

£416m Investment activity1

Acquisitions £149m 6.4% NIY 15.3 years WAULT Disposals £267m 4.9% NIY 14.1 years WAULT

5

920,000 sq ft of occupier transactions

4.1% ahead of ERV; 6.8% ahead of previous passing rent

1.25 million sq ft of committed development

750,000 sq ft of pipeline development agreed

£483m new debt facilities

With average term to maturity of 6.0 years Blended cost 220 bps below property yields

Finance Asset Management/ Development Investment

• 1. LM share including post period end transactions

5

STRATEGY

STRATEGIC FOCUS

Aligning our portfolio to an omni-channel world Partner of choice for our key customers

7

• 1. LM share including post period end transactions (contracted as at 26 November 2014)

Portfolio Value¹ (£m) WAULT (years) Occupancy (%) Distribution 451 13.2 100.0 Retail & Leisure 552 12.8 99.4 Development 60 22.8 80.7 Core 1,063 12.9 99.7 Non core 142 9.9 100.0 T

• tal

1,205 12.7 99.7

INVESTMENT STRATEGY

Distribution Out of town

Southampton Leicester Newark Harlow

Income

Bishop Auckland Occupier led

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

Asset management Short-cycle development

Core Stretch1

1m sq ft DC, Islip Middlesborough Opportunistic Loughborough Odeon

8

FINANCIAL RESULTS

INCOME STATEMENT

STATUTORY

H1 2014/15 £000 H1 2013/14 £000 FY 2013/14 £000 Net rental income 28,349 25,085 51,272 Share of joint venture income 5,611 1,743 3,056 Management fees 982 58 799 Admin costs (6,503) (6,138) (13,484) Finance costs (7,491) (9,135) (15,404) Other

• 113

130 EPRA earnings 20,948 11,726 26,369 EPRA EPS 3.4p 1.9p 4.2p DPS 3.5p 3.5p 7.0p Actual dividend cover 96% 53% 60%

10

DELIVERING INCOME GROWTH

(£m)

Development Activity New net rental income from management activity

11

72.7 76.5 76.4 69.9 76.4 82.8 5.3 1.5 3.5 6.5 4.5 2.1 6.5 6.4 40.0 50.0 60.0 70.0 80.0 90.0 100.0

Mar 14 contracted rent roll Sept 2014 contracted rent roll Net investment Occupier transactions & new space PPE net investment Reinvestment Nov 2014 contracted rent roll Annualised Run Rate PPE sale of Carter Lane

43.8 37.3 38.8 41.0 41.7 41.7 41.7 46.8 5.3 1.2 1.5 2.2 6.5 5.8 5.1 20.0 25.0 30.0 35.0 40.0 45.0 50.0 55.0 60.0

EPRA EARNINGS

12

44.0 11.7 14.7

Mar 14 Contracted Net Income Net investment Occupier Transactions Contracted income Islip Sept 14 Annualised Net Income PPE Transactions Committed Development Annualised Run Rate Reinvestment

(£m)

£44m = 100% dividend cover

Contracted Income Kirkstall Nov14 Contracted Net Income

Net rental income from management activity

BALANCE SHEET

STATUTORY

30 September 2014 £000 31 March 2014 £000 Property portfolio 1,125,230 1,030,553 Joint ventures 142,060 108,990 Cash 45,309 78,357 Bank debt (485,717) (415,474) Other net liabilities (24,940) (46,572) Net assets 801,942 755,854 EPRA net assets¹ 803, 932 756,970 EPRA NAV per share 129p 121p

13

• 1. Excludes fair value of derivatives

MOVEMENTS IN EPRA NAV

NAV per share (p)

EPRA NAV Mar-14 EPRA NAV Sept-14 EPRA Earnings Dividend Other Revaluation

14

3.4 8.4 128.8

121.0 120.4 128.8 3.4 3.5 0.5 8.4 116.0 118.0 120.0 122.0 124.0 126.0 128.0 130.0

DEBT METRICS

30 Sept 2014 31 March 2014 Gross Debt £573.3m £473.0m Loan to Value (LTV) 38% 32% Average Interest Rate 3.7% 3.9% Interest Cover 4.0 3.2 Average Maturity of Drawn Debt 3.6 years 3.7 years

15

£483M NEW DEBT FACILITIES

16

Average maturity for drawn debt now 4.4 years Average interest rate now 3.6% vs 3.9% in March 2014 Loan to Value now 35%

Facility (£m) Asset Pool T erm (years) Comment Helaba 196.2 Distribution portfolio 7 Extension M&G 71.8 DFS portfolio 5 New Facility Deutsche Pfandbrief 125.0 MIPP portfolio 5 Extension RBS 90.0 Revolver 5 Extension T

• tal

482.8 6

INVESTMENT ACTIVITY

INVESTMENT ACTIVITY

Number of transactions Value1 NIY² WAULT Rental Income Acquisitions

11 £149m 6.4% 15.3 years £9.3m

Retail 8 £37m 6.7% 12.6 years £2.6m Distribution 3 £84m 6.3% 17.2 years £4.9m MIPP Equalisation

• £28m

6.2% 14.3 years £1.8m

Disposals

14 £267m 4.9% 14.1 years £11.8m

Commercial 14 £244m 5.1% 14.9 years £11.2m Residential

• £23m

2.4% 0.0 years £0.6m

T

• tal

25 £416m

Arbitrage +150 bps +1.2 years

18

1. LM share 2. Topped Up NIY

£149M INVESTMENT ACQUISITIONS

3 distribution acquisitions¹ £84.0m, reflecting 6.3% NIY

£5.2m post period end acquisition

£4.9m rental income WAULT 17.2 years 7 retail & 1 multiplex acquisitions² £37.1m, reflecting 6.7% NIY

£12.9m post period end acquisitions

£2.6m rental income WAULT 12.6 years MIPP units acquired for £27.9m DixonsCarphone, Newark Middlesborough

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(1) Distribution acquisitions: Rotherham, Newark & Leicester (2) Retail acquisitions: Llanelli, Isle of Man, Birkenhead, Liskeard, Bangor, Middlesborough (Guisborough), Hull & Totton

£178M NON CORE DISPOSALS

20

Crawley Moore House/Resi JV £155 million office disposals

Average exit yield 4.7% £5.8m rental income

1 non core office asset remaining in Marlow £23 million¹ residential sales across 46 units

2 units remaining in wholly owned portfolio £4.3m¹ of sales at Moore House across 13 units² £3.6m¹ under offer at Moore House across 8 units

1. LM share 2. 10 units sold FY 2014

CARTER LANE DISPOSAL

Gross sale - £138.8m (4.3% NIY) Net sale receipt - £124.8m September valuation - £115m (4.6% NIY) £4.5m net rental income Completion long stop 26 Jan 2015

Purchase June 2011 £75m – NIY 7.3% Purchaser costs £4.4m Rent received during hold period £12.9m Construction costs £15.0m Gross Receipt £138.8m – NIY 4.3% Net Receipt¹ £124.8m Net profit £43.3m Total Return (Profit on cost) 45.9% (28.6%)

21

£89M RETAIL DISPOSALS

22

Bishop Auckland

Former Focus unit acquired March 2012, redeveloped new 76,500 sq ft shopping park Total cost: £15.8m (8.5% YOC) Disposal price: £23.6m (5.3% NIY) Profit to date: £7.8m (49% profit on cost)

Milton Keynes DFS

5 assets - part of DFS portfolio from March 2014 Allocated acq’n price - £4.9m¹ (10.2% NIY). Disposal price¹ - £6.4m¹ (7.9 % NIY). Profit to date - £1.0m¹ (20% profit on cost) Part portfolio acquisition in Feb 2013 Allocated acq’n price - £16.0m (8.3% NIY) Disposal price - £21.8m (6.1% NIY) Profit to date - £4.9m (29% profit on cost)

• 1. LM share

REPOSITIONING THE PORTFOLIO

At Merger November 2014

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24% 19% 21% 24% 12%

55% core

RETAIL DISTRIBUTION DEVELOPMENT¹ OFFICE RESIDENTIAL

37% 6% 35% 6% 5% 11%

89% core

LEISURE

• 1. Development shown as land value and committed capital expenditure

ASSET MANAGEMENT

VALUATION METRICS

25

Total Return Income Return Capital Return

LM IPD LM IPD LM IPD

Retail

9.9 8.3 3.5 2.7 6.2 5.5

Distribution /Industrial

9.2 11.2 3.0 2.9 6.0 8.1

Core Portfolio¹ 9.6 9.3 3.2 2.6 6.3 6.6

Office 6.6 10.5 2.1 2.2 4.4 8.1 Other 5.8 6.9 2.3 2.7 3.4 4.1 T

• tal incl. residential

8.8 9.3 2.9 2.6 5.7 6.6

Outperformance across core retail and distribution portfolio of 34 bps Yield compression: 28 bps

IPD: 39 bps

Income expiring in next 5yrs: 4.1%

IPD: 29.5%

VALUATION GROWTH DRIVERS

£52.3m £35.6m £95.9m 20 40 60 80 100

NEY yield movement of 28 bps; NIY yield movement 29 bps

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Sept 14 Sept 13 Mar14

£39.2m £18.5m £52.8m £8.4m £13.5m £34.5m £4.7m £3.6m £8.6m

Development Asset Management Shift Market Yield Shift

ASSET MANAGEMENT

No. Area (Sq Ft) Uplift (£m) % above ERV % above previous rent LFL rental growth WAULT New Lettings & Regears 14 332,000 £0.4m 7.9% 26.5% 0.7% 18.6 Rent Reviews 12 588,000 £0.2m 3.1% 2.6% 0.3%

• Total

26 920,000 £0.6m 4.1% 6.8% 1.0% 18.6

27

Asset management activity delivered 12% income return on capital expenditure1

• 1. Asset management capital expenditure incurred in the period of £5.3m

HARLOW & LOUGHBOROUGH CASE STUDY

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Harlow Loughborough

New lease to Morrisons across a new 54,000 sq ft store WAULT increased from 3.9 years to 25.0 years Rent reviews: annual RPI subject to 1% and 3.5% cap and collar. Practical Completion due 2016 Net uplift: £3.6m Capital return on marginal expenditure: 13.2% Surrender of Tesco lease and re-let to Brakes Bros WAULT increased from 9.0 years to 25.0 years 150 bps yield compression (Mar-14 to Sept-14) Net capital uplift: £4.3m¹ Capital return on marginal expenditure: 14.3%

(1) 100%, LM share 50%

COMMITTED DEVELOPMENT

Islip Distribution Centre 1,062,000 sq ft, 100% pre let Acquired yield on cost: 6.9% Rent £5.3m pa with 1.5% annual uplifts: 25 years Valuation Yield: 5.0% Construction on site - completion August 2015 Kirkstall Shopping Park, Leeds 120,000 sq ft, 50% pre let/ in solicitors hands M&S, Outfit, JD Sports Acquired yield on cost: 7.8% Rent £1.2m pa rising to £2.7m when fully let Valuation Yield: 5.8% Construction on site - completion September 2015

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Continue to replenish development pipeline Further opportunities in negotiations

DEVELOPMENT PIPELINE

Bell Farm, Bedford 7.5 miles from J13 of M1 motorway 750,000 sq ft – 37 acres for retail distribution scheme Prospective rent: £4.4m Anticipated yield on cost 7.6% Strong retailer demand for location Completion estimated 2017 Purchase conditional on obtaining planning consent

30

A421 A421

DEVELOPMENT ACTIVITY

Location Sector Occupier Sq ft % Pre Let Practical Completion Committed Cap ex (to go) Rent roll YOC1

• n PC2

Valu’n yield (£m) (£m) (%) (%) Committed Islip Distrib Top 25 retailer 1,062,000 100% Q3-15 60.3 5.3 6.9 5.0 Leeds Retail BHS, Outfit, M&S 120,000 50%³ Q3-15 21.6 2.7 7.8 5.8 Coventry Retail B&M 15,000 100% Q3-15 2.3 0.2 7.3 5.8 Loughborough Retail Morrisons 54,000 100% Q1-16 8.5 0.5 5.4 5.0 T

• tal committed

1,251,000 84%4 92.7 8.7 7.1% 5.3%

(1) Yield on cost (2) Practical completion (3) 43% contracted, 7% in solicitors hands (4) 83% of rent roll excluding deals in solicitors hands

31

OUTLOOK

RETAIL MARKET OUTLOOK

Retailers continue to adopt omni channel strategies Growth of ‘click + collect’ underlines the importance of physical stores Retailers continue to rationalise their real estate portfolios Convenience/Value retailers continue to expand

33

DISTRIBUTION SECTOR OUTLOOK

“Sheds are the new shops” Demand rising as retailers upgrade their supply chains

E-commerce sales to grow to 22% by 2020¹

Retailers need more efficient supply chains

Some retailers are “creaking” with what they have!

Growing convenience sector is adding to demand Prime rental growth expected to rise as supply dries up

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• 1. Verdict Research

INVESTMENT MARKET OUTLOOK

Global equity continues to flow into UK real estate UK economy remains positive

Discretionary spending set to rise in 2015

Liquidity across UK market continues

Investment market volumes highest since 2007

Valuations continue to be driven by yield shift

Although rents rising from their recessionary levels

Prime yields continue to harden

10 year prime distribution income heading to 5%

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Continued focus on driving rental income

Contracted income due to increase by £6.4m to £82.8m Confidence to review the dividend at the year end

Grow Income Recycle Capital Deliver Development 1 2 3

SUMMARY

OUR PRIORITIES

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Re-shaping the portfolio into our core sectors

£416m of investment activity – 150 bps positive yield arbitrage

Opportunistically recycle capital from mature assets Progressing our committed developments

Invest in the development pipeline Continue to leverage strong occupier relationships

APPENDIX

TOP 10 TENANTS1,2

(1) Investment portfolio as at 30 September 2014 (2) Gross rental income based on annualised rents (3) Market capitalisation as at 21 November 2014 (4) Market capitalisation of parent Kingfisher (5) Market capitalisation of parent Home Retail Group (6) Market capitalisation of parent Associated British Food (7) USD

Tenant Rent (£m pa) % of total rent Market cap (£m)3 5.7 6.9 4,863 5.1 6.1 Private 4.5 5.4 Private 4.2 5.1 7,2224 4.1 4.9 1,5695 3.9 4.7 24,6766 3.4 4.1 7,749 3.2 3.9 4,298 3.0 3.6 62,6807 2.4 2.9 208,783 Top 10 39.5 47.6 Development 7.2 8.7 Other 36.3 43.7 Total 83.0 100.0

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RETAIL MARKET

Growing Competitively Threatened Rightsizing

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INVESTMENT YIELDS

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, September 2014

40

INVESTMENT ACTIVITY – ACQUISITIONS

• No. of

Price LMP share NIY WAULT In the period to Sep-14 Sector assets Date (£m) (£m) (%) to expiry to 1st break Rotherham Distribution 1 13-May-2014 10.3 10.3 6.0 13.9 13.9 Llanelli Retail 1 03-Jul-2014 12.8 6.0 6.9 14.7 14.7 Isle of Man Retail 1 04-Jul-2014 5.3 5.3 7.9 7.2 6.2 Birkenhead Leisure 1 05-Aug-2014 5.5 5.5 7.7 15.0 15.0 Liskeard Retail 1 19-Sep-2014 9.0 4.2 6.2 12.8 12.8 Bangor Retail 1 29-Sep-2014 3.4 3.4 7.0 9.3 9.3 Newark Distribution 1 30-Sep-2014 68.5 68.5 6.4 18.8 18.8 Mipp Equalisation Retail

• 21.2

21.2 6.2 14.3 14.1 Subtotal 7 136.0 124.4 6.5 16.0 15.9 Post period end Guisborough Retail 1 29-Oct-2014 5.3 5.3 5.8 18.1 15.0 Hull Retail 1 04-Nov-2014 3.1 3.1 5.8 15.0 15.0 Leicester Distribution 1 05-Nov-2014 5.2 5.2 6.4 5.8 5.8 T

• tton

Retail 1 20-Nov-2014 8.9 4.4 5.9 8.9 8.9 Mipp Equalisation Retail

• 6.6

6.6 6.1 14.2 14.0 Subtotal 4 29.1 24.6 6.0 12.3 11.6 TOTAL 11 165.1 149.0 6.4 15.3 15.2 41

INVESTMENT ACTIVITY – DISPOSAL

• No. of

Price LMP share NIY WAULT In the period to Sep-14 Sector assets Date (£m) (£m) (%) to expiry to 1st break DFS – Suite Portfolio Retail 2 25-Apr-2014 3.7 1.1 8.5 16.0 16.0 Berkhamstead Retail 1 30-May-2014 12.5 12.5 3.8 19.6 19.1 Huddersfield Leisure 1 04-Jun-2014 15.2 15.2 6.1 24.4 24.4 Forest House Office 1 21-Aug-2014 12.9 12.9 6.7 14.8 14.8 Scarne Retail 1 08-Sep-2014 1.4 1.4 7.0 7.5 7.5 Elm Park Court Office 1 17-Sep-2014 3.6 3.6 11.7 1.0 1.0 DFS – Chesterfield Portfolio Retail 3 29-Sep-2014 17.1 5.2 7.8 16.0 16.0 Residential - Various Residential 38

• 23.6

20.6 2.4

• Subtotal

48 90.0 72.5 5.2 14.3 14.2 Post period end Carter Lane Office 1 Nov-2014 138.8 138.8 4.3 17.2 14.8 Milton Keynes Retail 1 Nov-2014 21.8 21.8 6.1 8.7 8.7 Bristol Retail 1 Nov-2014 8.1 8.1 7.7 10.5 8.7 Bishops Auckland Retail 1 Nov-2014 23.6 23.6 5.3 11.3 9.5 Residential Residential 8 Nov-2014 5.8 2.3 2.4

• Subtotal

12 198.1 194.6 4.8 14.0 12.2 TOTAL 60 288.1 267.1 4.9 14.1 12.9 42

DEVELOPMENT ACTIVITY

Location Sector Sq ft % Pre Let Comment Practical Completion Rent roll YOC1

• n PC2

Valu’n yield (£m) (%) (%) Committed Islip Distrib 1,062,000 100% New 25 year lease, 1.5% annual uplifts Aug-15 5.3 6.9 5.0 Leeds Retail 120,000 50%³ 43% pre-let, 7% in solicitors’ hands Sep-15 2.7 7.8 5.8 Coventry Retail 15,000 100% New 15 year term to B&M Aug-15 0.2 7.3 5.8 Loughborough Retail 54,000 100% Food store extension of 12,690 sq. ft. to 54,000 sq ft 2016 0.5 5.4 5.0 Total committed 1,251,000 84%4 8.7 7.1% 5.3% Conditional Bedford Distrib 750,000

• Subject to satisfactory planning consent

St Austell Retail 103,000

• Subject to satisfactory planning consent

Swindon Distrib 150,000 100% Potential extension with Oak Furniture Land. Subject to satisfactory planning consent Leicester Retail 28,000 100% Pre-agreed to Smyths Toys and Home Bargains. Subject to satisfactory planning consent

43

(1) Yield on cost (2) Practical completion (3) 43% contracted, 7% in solicitors hands (4) 83% excluding deals in solicitors hands

ASSET MANAGEMENT – PLANNING GAINS

Scheme name Location Sector Consent Sq ft Comment Initiative Westcroft Milton Keynes Retail A1 2,400 Extension of Store 21 to accommodate Aldi Asset Management Islip Thrapston Distribution B1/B2 1,062,000 Construction of new 1,062,000 sq. ft. unit Development Mountbatten Retail Park Southampton Retail Bulky 21,200 Full cover Mezz & External Dec Asset Management Kings Lynn Kings Lynn Retail Bulky 40,700 Build over Garden Centre Asset Management Christchurch Retail Park Christchurch Retail A3 2,500 Costa and Subway pod units Asset Management Airport Retail Park Coventry Retail Bulky 15,000 Construction of new 15,000 sq. ft. unit Development Hertford Retail Park Hertford Retail A3 4,300 Construction of two new pod units Asset Management Eldon Way Crick Distribution B1/B2 15,000 Change of use and alterations Asset Management Damolly Retail Park Newry Retail A3 1,500 Change of use from Retail to Restaurant Asset Management Damolly Retail Park Newry Retail Bulky 8,400 Pets at Home variation Asset Management Seager Retail Park Cardiff Retail Bulky 10,200 Permitted Use Asset Management Total 1,183,200

44

PORTFOLIO METRICS

Revaluation Rent Fixed

Area Valuati

• n

surplus Voids IY WAULT (years) roll uplifts Average rent (£ psf) As at 30-Sept-14 (m sq ft) (£m) (£m) (%) (%) (%) expiry break (£m) (%) Existing Sustainable

Retail – wholly owned 1.5 386.1 14.2 3.8 1.0 6.2 9.8 8.9 25.1 30.0 16.20 20.10 Leisure 0.3 71.5 2.5 3.7 0.0 6.0 23.8 23.8 4.5 100.0 15.70 14.30 MIPP JV 0.4 87.7 1.4 1.6 1.0 6.2 14.3 14.1 5.7 24.0 14.00 17.10 DFS JV 0.2 44.3 1.6 3.8 0.0 7.6 15.5 15.5 3.5 0.0 22.70 16.40 Distribution 5.2 440.6 20.8 5.0 0.0 5.8 13.4 12.4 26.8 43.9 5.20 5.60 Office 0.4 180.9 7.8 4.5 0.0 5.6 10.0 7.8 9.6 31.2 20.20 22.50 Investment portfolio 8.0 1,211.1 48.3 4.2 0.4 6.1 12.8 11.9 75.2 38.5 9.00 10.10 Residential

• 75.6
• 0.1
• 0.1

n/a

• 1.2

Developments 1.6 59.7 4.1 7.5 n/a

• 6.6

Total 9.6 1,346.4 52.3 4.0 n/a

• 83.0

45

BALANCE SHEET

PROPORTIONATELY CONSOLIDATED

30 September 2014 31 March 2014 (£m) Group JV T

• tal

T

• tal

Property portfolio 1,125.2 221.2 1,346.4 1,219.8 Cash 45.3 10.2 55.5 87.5 Bank debt (485.7) (87.6) (573.3) (473.1) Other net liabilities (25.0) (1.7) (26.7) (78.3) Net assets 659.8 142.1 801.9 755.9 EPRA adjustments 2.0 1.1 EPRA net assets 803.9 757.0 EPRA NAV per share (p) 128.8 121.0

46

INCOME STATEMENT

PROPORTIONATELY CONSOLIDATED

30 September 2014 31 March 2014 (£m) Group JV T

• tal

T

• tal

Reported profit 61.1 8.6 69.7 44.1 Net income 28.3 7.6 35.9 29.3 Management fees 1.0 (0.4) 0.6 (0.3) Administrative costs (6.5) (0.1) (6.6) (6.5) Net finance costs (7.5) (1.4) (8.9) (10.8) Other

• (0.1)

(0.1)

• EPRA Earnings

15.3 5.6 20.9 11.7 Valuation Movement 49.5 2.8 52.3 35.6 Exceptional items1 (3.7) 0.2 (3.5) (3.2)

47

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

DEBT FACILITIES

As at 30 Sept 2014 Facility Drawn Maturity Asset(s) Sector Lender (£m) (£m) (years) Expiry Wholly-owned portfolio Distribution term loan Distribution Helaba 134.2 134.2 3.8 26-Jul-18 General revolver n/a Bank of Scotland 55.0 55.0 1.7 20-Jun-16 General revolver n/a RBS 90.0 90.0 4.7 02-Jun-19 Retail term loan Retail RBS 140.0 140.0 3.9 6-Aug-18 Retail term loan Retail Wells Fargo 34.7 34.7 1.6 27-Apr-16 Odeon term loan Leisure Lloyds 31.8 31.8 3.1 18-Nov-17 T

• tal wholly-owned

485.7 485.7 3.5 JV portfolio (LondonMetric at share) Distribution JV (50%) Distribution MetLife 7.4 7.4 1.4 23-Feb-16 Moore House (40%) Residential RBS 23.4 23.4 1.9 28-Aug-16 DFS JV (30.5%) Retail M&G 21.9 21.9 4.8 23-Jul-19 MIPP JV (46.5%) Retail Deutsche Pfandbriefbank 58.1 34.9 5.3 22-Jan-20 T

• tal JV portfolio

110.8 87.6 3.9 T

• tal Group and JV

596.5 573.3 3.6 48

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