Investing in opportunity April 2018 rdireit.com 1 Agenda - - PowerPoint PPT Presentation
Interim results presentation Investing in opportunity April 2018 rdireit.com 1 Agenda Introduction and highlights Mike Watters (CEO) Financial results Donald Grant (CFO) Capital allocation Stephen Oakenfull (Deputy CEO)
Interim results presentation
April 2018
rdireit.com
2018 interim results presentation
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Mike Watters (CEO)
Donald Grant (CFO)
Stephen Oakenfull (Deputy CEO)
Adrian Horsburgh (Property Director)
Mike Watters (CEO)
2018 interim results presentation
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Disposal proceeds achieving 8.7% premium
Underlying earnings
Acquisitions yielding >9% on equity
Underlying EPS
EPRA NAV per share
LTV reduced by 200bps
Total annualised accounting return
(1) Excluding RBH managed hotels and London serviced offjces.
Superior income
highest dividend yields on NAV at 6.3% (4.2% UK REIT average)
to effjciently convert rent to dividends
Growing income
(+2.1% like-for-like)
and Ingolstadt post period end
Sustainable income
with pay-out ratio of 92.5%
(8.2 years to expiry)(1)
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Strategic priorities designed to continue driving sustainable and growing income Financial discipline
and alignment to operational cash fmow
senior management incentives to drive accountability
share buy-back programme to limit shareholder dilution
Effjcient capital structure
medium-term targets and continued progress
investor programme/outreach
Income focused portfolio
enhanced through active capital recycling
give competitive edge
sectors with positive outlook
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(including share of joint ventures)
HY18 HY17 Change Change Summary income statement £m £m £m %
Net rental income 50.6 46.0 4.6 Other income 0.6 2.8 (2.2) Administrative costs (7.3) (8.8) 1.5 Net fjnance expense (14.6) (15.0) 0.4 Other items (3.2) (1.2) (2.0) EPRA earnings 26.1 23.8 2.3 Company adjustments: – Reverse debt accretion charges (non-cash) 0.4 0.5 (0.1) – FX loss (unrealised) 0.9 — 0.9 Underlying earnings 27.4 24.3 3.1 +12.8 Underlying earnings per share 1.46p 1.35p +8.2 Dividend per share 1.35p 1.30p +3.9
Diluted weighted average shares in issue 1,875.5m (28 February 2017: 1,804.4m).
EPRA cost ratio improved to 15.7%
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Disposals
Like-for-like +2.1% 0.6 Nil
UK Retail
0.3
UK Hotels
Nil
Europe Gross rental income (HY17)
50.8
Acquisitions
6.8
Development UK Commercial
0.1
Gross rental income (HY18)
55.5
(including share of joint ventures)
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(including share of joint ventures)
Market Market value value Gain/ Gain/ EPRA HY18 FY17 (loss)(1) (loss) NIY(2) £m £m £m % %
UK Commercial 357.0 345.8 10.2 2.9 5.3 UK Retail 494.1 501.8 (12.1) (2.4) 6.7 UK Hotels 243.4 239.6 2.6 1.1 6.0 UK total 1,094.5 1,087.2 0.7 0.1 5.9 Europe 221.3 226.5 (5.4) (2.4) 4.5 Total like‑for‑like 1,315.8 1,313.7 (4.7) (0.4) Acquisitions 300.7 — Disposals — 201.6 Development 30.4 23.4 Total property portfolio 1,646.9 1,538.7 5.7
(1) Gain/(loss) includes the efgect of capital expenditure, tenant incentives, headlease amortisation and FX. (2) Reported EPRA NIY for total segment.
Disposals during the period were completed at a 8.7% premium to the last reported market value
CCY+0.3% €+1.5%
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(including share of joint ventures)
Key statistics Medium-term target HY18 FY17 HY17
LTV 45% – 50% 48.0% 50.0%(1) 49.9% Weighted average debt maturity 7.0yrs 7.3yrs 6.8yrs Weighted average cost of debt 3.2% – 3.4% 3.3% 3.1% 3.3% Debt with interest rate protection >75% 99.2% 93.0% 97.0% Interest cover(2) >3x 3.5x 3.2x 3.1x
(1) Proforma adjusted from 51.3% to refmect transactions between 31 August 2017 and FY17 results announcement on 26 October 2017. (2) Group interest cover calculated as net rental income divided by net fjnance cost.
Interest cover continues to improve despite increase in the weighted average debt cost, the result of higher property yields and lower leverage
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Underlying earnings Valuation gains Profits on disposal and gains
Dividends FX loss Other EPRA NAV (FY17) EPRA NAV (HY18)
1.46 0.4 1.0 (1.3) (0.4) (0.26) 41.4 42.3
Up 2.2% to 42.3p
Total shares on issue 1,905.1m (31 August 2017: 1,828.1m).
Total accounting return of 10.7% (annualised)
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Undrawn, committed facilities Cash and available facilities (FY17)
53.4 10.0 63.4
Operating cash flow
26.0
Disposals Acquisitions and capital expenditure
(99.9)
Net debt repaid
142.6
Dividends
(44.5)
Other
(18.8) (3.9)
Cash and available facilities (HY18)
99.9 45.0 54.9
(including share of joint ventures) Modest capital commitment of £8.5m
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Key performance indicators Medium-term target HY18 FY17 HY17
Rental income growth (like-for-like) 2% – 5% 2.1% 3.7% 3.3% Rent collection >95% within 7 days 89.3% 94.3% 94.0% EPRA cost ratio <15% 15.7% 19.8%(1) 20.7%(1) Cost of debt 3.2% – 3.4% 3.3% 3.1% 3.3% LTV 45% – 50% 48.0% 50.0%(2) 49.9% Interest cover >3x 3.5x 3.2x 3.1x Pay-out ratio 90% – 95% 92.5% 94.5% 96.3% Underlying earnings per share growth 3% – 5% 8.2% n/a n/a
(1) 17.2% and 18.0% respectively, when adjusted for non-recurring items. (2) Proforma adjusted from 51.3% to refmect transactions between 31 August 2017 and FY17 results announcement on 26 October 2017.
Linked to management incentives to drive accountability Dividend of 1.35p representing growth of 3.9% on HY17
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60% 55% 50% 45% 40% 65% 70% 75% 80% 85% LTV
75.4% 48.0% 3.3% 5.0%
Cost of debt 5.5% 3.0% 3.5% 4.0% 4.5% 5.0% LTV (%) Weighted average cost of debt (%) FY2011 FY2012 FY2013 FY2015 FY2016 FY2017 HY2018 FY2014
Meaningful reduction in LTV and cost of debt over last six years
Historic weighted average cost of debt and LTV (%)
Medium term target of 45% – 50% LTV
and reduced margins
headroom to operational cash fmow
marginal leverage
unsecured debt structure
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GBP Euro FY18 FY19 FY20 FY21 FY22 FY23 FY24 FY25 FY26 FY28+ FY27 366.1 57.8 3.5 21.2 47.0 155.3 193.8 UK bank debt
Europe bank debt
UK non-bank debt
15% 67% 18%
Limited refjnancing risk with no material maturities until 2020
Debt maturity profjle (£m) Group debt £844.7m (FY2017: £842.2m)
Weighted average debt maturity of 7.0 years Material covenant headroom
cost of debt effjciencies
natural FX hedge
(1) £24.9m of Group debt is not subject to an LTV covenant.
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Efgective and timely investor communication strategy New investor material:
Investor engagement:
Company compiled consensus as at 20 April 2018:
Four analysts included(1)
FY18 FY19 FY20
Underlying EPS (p) 2.86 2.92 2.99 % year-on-year growth 3.9 2.3 2.4 Dividend per share (p) 2.65 2.73 2.80 % year-on-year growth 2.1 3.0 2.4 EPRA NAV per share (p) 41.6 42.2 42.9 % year-on-year growth 0.4 1.7 1.5
(1) Included most recent estimates from all analysts who published updated forecasts following recent material disposals and acquisitions.
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Income-led diversifjed business model provides ability to actively invest for growth Effjcient reinvestment demonstrates relentless focus on income and ability to efgectively recycle capital
High growth Low growth High yield Low yield
Travelodge portfolio – IHL acquisition London serviced offjces – acquisition RBH managed hotels – IHL acquisition German supermarket portfolio – disposed at a 10.8% premium Hull, House of Fraser – disposed at a discount Core income Growth income Asset management Mature/low growth income EPRA NIY 5.7% City Point, Leeds – disposed at a 15.3% premium post period end Derby, Albion Street – development Kingston, Canbury Business Park – acquisition and development opportunity
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Strategic disposals
House of Fraser department store, Hull
Realising value following active asset management
City Point, Leeds and other smaller regional offjces
Opportunistic disposals
German Supermarket Portfolio
22 year lease
£19.3m; a 4.3% premium
income; implied NIY of 8.1%
end for £26.1m; a 15.3% premium
investment market
income; implied NIY of 5.8%
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Earnings accretive acquisition complementing existing hotel portfolio Transaction highlights
Deal rationale
and Edinburgh
terms >20 years(1) and 21.2% of income with uncapped CPI escalations
Demonstrates our scalable platform and ability to secure the right income enhancing investments
(1) Three properties have landlord options to extend leases.
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High yielding London exposure with structural support Alignment with strategic priorities through increased allocation of capital to areas of long‑term economic growth Transaction highlights
£161.7m; implied NIY >6%
transaction costs <1%
since acquisition in January 2018
Deal rationale
repurposing of existing RDI assets
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Signifjcant improvement in quality of income over the last three years
Sector exposure by market value % HY2018 2015
Commercial 33 19
London serviced offjces 10 — UK Offjces 13 12 German Offjces — 3 Distribution & other 10 4
Retail 45 59
UK Shopping Centres 19 33 UK Retail Parks and Other 11 — Germany 15 26
Hotels 22 22
AUK portfolio (£458.9m) Acquisition completed in March 2016
Major transactions
London serviced offjce portfolio (£161.7m) Acquired 12 January 2018 German Retail portfolio (€205.0m) Disposed 29 December 2017 IHL hotel portfolio (£104.4m) Acquired November 2017
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Market value £1.65bn as at 28 February 2018
Retail: 45% Commercial: 33% Hotels: 22%
UK serviced
10% UK shopping centres: 19% German retail: 15% RBH managed hotels: 19% UK retail parks: 11% Travelodge portfolio: 3% UK logistics:(1) 10% UK
13%
8.2yrs to expiry(1)
% EPRA NIY Reversionary yield 6.3%
Occupancy(1)
Indexed rents
UK
Germany In‑house asset management expertise and aligned
across all sectors Portfolio income credentials continue to be enhanced through reinvestment for growth and active asset management Geographical split:
(1) Excluding RBH managed hotels and London serviced offjces. (1) Includes industrial and automotive.
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Gross annualised rental income £111.2m (+1.1% like‑for‑like) Triple net annualised rent movement (excluding like‑for‑like; FX)
UK Retail Europe UK Commercial UK Hotels
(1) -£0.2m (-1.5%) including FX
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24 FY18 FY19 FY20 FY21 FY22 FY23 FY24 FY25 FY26 FY27+ 6.1 8.5 3.6 6.6 8.6 4.7 4.8 21.9 3.0 9.3
Clear income visibility with WAULT of 6.8 years to fjrst break (8.2 years to expiry)(1)
Lease expiries to fjrst break by gross rental income (£m)(1)
Tenant profjle
to index-linked or fjxed uplift rents
Serviced income:
Top ten tenants
As at % of gross 28 February 2018 rental income Units
UK Government 3.7 14 B&Q 3.2 5 Tesco 2.9 1 Travelodge 2.2 5 Royal Mail 1.8 2 Primark 1.6 1 OBI 1.5 3 Debenhams 1.4 2 Wilko 1.3 3 Refresco Gerber 1.3 2
(1) Excluding RBH managed hotels and London serviced offjces.
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UK Retail
+0.6
UK Distribution & Other
+0.2
Travelodge portfolio
+1.5
Germany Gross annualised rental income
111.2
UK Offices (excl London Serviced Offices)
+1.1
ERV
113.6
Reversion Voids/under construction RBH managed hotels and London serviced offices
5.7% EPRA NIY; reversionary yield of 6.3%
Growth outlook
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S t r
g
c u p i e r d e m a n d “ S p a c e a s a s e r v i c e ”
9.8 5.5 9.9 3.6 17.1 7.1 21.1 Shopping centres London offices Other Indexed Distribution and industrial Retail parks Hotels London serviced offices
Medium term target of 2% – 5% rental growth per annum Indexation
by gross annualised income (%)
Open market rent reviews
by gross annualised income (%)
1 4 . 5 11.4 UK Open market rent reviews Germany
2 5 . 9 % I n d e x e d
Camino Park, Crawley Express Park, Bridgwater Priory Retail Park, Merton, London
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Limit development risk through staged approach and pre‑let income
CENTRE POINT 127 CHARING CROSS ROAD ST GILES CIRCUS 210,000 sqft | End 2018 ILONA ROSE HOUSE 310,000 sqft mixed use | Q4 2020 PRIMARK OXFORD STREET NEW OXFORD STREET ONE OXFORD STREET 275,000 sqft | 2020 CHARING CROSS ROAD CROSSRAIL SITE TOTTENHAM COURT ROADAlbion Street Derby City Arcaden Ingolstadt Charing Cross Road London
February 2018
agreed rent of £0.2m
fjnal lettings
development
>50%
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28 London serviced offjces
RDI well placed to take advantage of increasing trend of real estate owners becoming service providers
HY18 Outlook Revenue per available room (£) 80.2 Occupancy (%) 80.4 HY18 Outlook Average desk rate (% year-on-year) 0.3 Workstation occupancy (%) 92.9 Average stay (months) 30
10%
Limited service hotels
manager in the UK
22%
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net income
Active management and focus on convenience maintaining occupancy
shopping centres: 97.9%)
retail parks
Before After
Relative modest exposure to recent retail failures amounting to <0.4% of gross annualised rental income potentially at risk
Smart asset management delivers value in West Orchards shopping centre, Coventry
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% portfolio by gross annualised rental income
48%
Core secure income
12%
Income‑led asset management
35%
Growth income
5%
Mature assets
Sustainable income Growing income Capital recycling
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Demand for companies to deliver predictable and growing income remains strong Portfolio rebalanced for income growth Smart active asset management Scalable serviced income platforms supported by structural change Strong and improving
Strengthened the balance sheet with continued reduction in leverage Dividend covered by underlying EPS and
Delivering on targets to ofger investors certainty in an uncertain environment Medium term targets unchanged with 3% - 5% underlying EPS growth
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Relentless focus to deliver superior, sustainable and growing income
yield on NAV (UK REIT average 4.2%)
portfolio, with longevity of income supported by experienced
demand
to expiry)
increases
portfolio net initial yield
demand
most liquid real estate markets:
– 85% UK – 15% Germany
tenant >4%
dividend
EPS growth of 3% - 5% p.a. By sector: Index inclusion:
A FTSE 250 CompanySuperior income Sustainable income Growing income Portfolio income characteristics Primary listing LSE: RDI Secondary listing JSE: RPL £1.6bn portfolio diversifjed across geography, sectors and tenants
Other retail (incl. food) Retail parks
10% 22% 30% 11% 4% 13% 10%
Shopping centres Hotels Office Serviced
Distribution G e r m a n y ( 1 1 % ) U K ( 1 9 % )
>35% >35% Corporate holding <30%
(1) Excluding growth potential on RBH managed hotels and London serviced offjces.
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Global need for predictable and recurring income
Asset backed income is relatively predictable
income
REITs were designed to give investors effjcient access to commercial property income
Long‑term returns are largely driven by income
and infmuenced by market sentiment
management will drive sustainable capital growth
Opportunity for a suitably sized REIT delivering a yield of >5.0% on NAV Our business model is designed to provide long term superior, sustainable and growing shareholder returns through the cycle The composition of historic UK property total returns
30 years
73%
20 years
74%
10 years
140%
5 years
65%
Capital return Income return Source: MSCI Lazarus
S u p e r i
i n c
e Sustainable income G r
i n g i n c
e
RDI Culture
strategic partners
RDI business model and income‑led strategic priorities
Income focused portfolio
limited volatility through the cycle
across sectors
Effjcient capital structure
Scalable business
Financial discipline
into profjt
to improve accountability and clear linkage to management incentives 2018 interim results presentation
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By geography By sector By tenant
Ability to recycle and reinvest into growth opportunities across sectors 69% of the portfolio located in London, South East UK, “Big 6” UK Cities and “Big 5” German cities
Europe's two largest real estate markets
UK Germany
Manchester Edinburgh Berlin Ingolstadt HamburgLondon
BristolTop 20 assets by market value
85%
UK
15%
Germany
Other retail (incl. food) Retail parks
10% 22% 30% 11% 4% 13% 10%
Shopping centres Hotels Office Serviced
Distribution G e r m a n y ( 1 1 % ) U K ( 1 9 % )
Top ten tenants
As at % of gross 28 February 2018 rental income Units
UK Government 3.7 14 B&Q 3.2 5 Tesco 2.9 1 Travelodge 2.2 5 Royal Mail 1.8 2 Primark 1.6 1 OBI 1.5 3 Debenhams 1.4 2 Wilko 1.3 3 Refresco Gerber 1.3 2
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Portfolio summary
NOTE: WAULT and occupancy excludes RBH managed hotels and London serviced offjce portfolio. Relevant operational metrics disclosed separately. Weighted % of Annualised EPRA Reversionary average EPRA portfolio by Market gross rental EPRA NIY topped yield lease length
% As at 28 February 2018 market value Properties Area (m2) value (£m) income (£m) ERV (£m) (%) up yield (%) (%) (yrs) (by ERV) Indexed UK Commercial Offjces – Serviced 10 4 15,473 162.7 10.9 10.9 6.0 6.0 6.0 n/a n/a — Offjces – Greater London 7 4 14,938 111.6 4.7 6.0 3.3 3.7 5.0 3.5 96.7 14.5 Offjces – Regions 6 12 40,404 96.7 7.7 7.5 6.6 7.4 7.2 3.5 97.2 15.9 UK Offjces 23 20 70,815 371.0 23.3 24.4 5.3 5.7 6.0 3.5 97.0 8.1 Distribution & Industrial 8 4 100,003 125.0 6.3 7.6 4.7 4.7 5.7 4.6 96.3 3.1 Automotive 2 35 16,671 43.5 2.9 2.2 6.2 6.2 4.8 11.8 100.0 98.5 Total UK Commercial 33 59 187,489 539.5 32.5 34.2 5.3 5.5 5.8 4.9 97.1 15.2 UK Retail UK Shopping Centres 19 6 157,326 309.9 26.3 26.1 6.9 7.0 7.7 7.7 97.9 27.8 UK Retail Parks 11 6 60,742 178.9 12.4 11.7 6.1 6.4 6.1 7.9 96.6 10.7 UK Other Retail — 1 5,019 5.3 0.6 0.5 6.2 9.3 7.6 4.4 100.0 — Total UK Retail 30 13 223,087 494.1 39.3 38.3 6.7 6.9 7.1 7.7 97.5 22.0 UK Hotels Greater London 11 7 29,426 186.0 12.5 12.5 5.8 5.8 6.3 n/a n/a — Regional 8 6 31,392 128.7 11.0 11.0 6.7 6.7 7.2 n/a n/a 0.9 RBH managed portfolio 19 13 60,818 314.7 23.5 23.5 6.2 6.2 6.7 n/a n/a 0.4 Travelodge 3 5 16,573 46.5 2.4 2.6 4.9 4.9 5.2 18.7 100.0 100.0 Total UK Hotels 22 18 77,391 361.2 25.9 26.1 6.0 6.0 6.5 18.7 100.0 9.7 Total UK 85 90 487,967 1,394.8 97.7 98.6 5.9 6.1 6.5 7.2 97.5 16.5 Europe German Shopping Centres 11 3 45,775 184.8 8.9 10.2 4.1 4.1 5.2 4.6 97.2 93.2 German Retail Parks and Other 4 11 52,016 67.3 4.6 4.8 5.8 5.8 6.6 5.4 96.2 95.4 Total Europe 15 14 97,791 252.1 13.5 15.0 4.5 4.6 5.5 4.9 96.9 93.9 Total 100 104 585,758 1,646.9 111.2 113.6 5.7 5.9 6.3 6.8 97.3 25.9 Ownership breakdown: Wholly owned (at 100%) 65 72 447,029 1,066.6 70.0 72.2 5.6 5.8 6.3 6.7 97.2 32.9 Assets with minority holdings (accounted for at 100%) 33 28 125,311 555.0 39.4 39.6 6.0 6.0 6.4 7.7 98.4 12.2 Held in joint ventures (proportionate %) 2 4 13,418 25.3 1.8 1.8 6.4 6.4 6.7 6.0 100.0 52.5
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Earliest to lease break/expiry
Annualised gross rental FY2018 FY2019 FY2020 FY2021 FY2022 FY2023 FY2024 FY2025 FY2026 FY2027+ As at 28 February 2018 income (£m) (£m) (£m) (£m) (£m) (£m) (£m) (£m) (£m) (£m) (£m)
UK Commercial 21.9 2.9 1.1 3.6 3.1 1.0 3.6 1.4 0.6 1.0 3.6 UK Retail 39.2 3.5 2.0 2.2 2.1 6.6 2.3 1.0 3.4 1.7 14.4 UK Hotels 2.5 — — — — — — — — — 2.5 Total UK 63.6 6.4 3.1 5.8 5.2 7.6 5.9 2.4 4.0 2.7 20.5 Europe 13.5 0.2 0.5 2.7 0.9 1.7 2.7 2.3 0.8 0.3 1.4 Total 77.1 6.6 3.6 8.5 6.1 9.3 8.6 4.7 4.8 3.0 21.9 Operational income RBH managed hotels 23.5 — — — — — — — — — — London serviced offjces(1) 10.6 — — — — — — — — — — Total 111.2 (1) Flexible space only.
London serviced offjce portfolio refmects a current, and increasing, average stay of over 2.5 years
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Top 20 assets make up >60% of total portfolio
% of EPRA Weighted EPRA portfolio by Ownership topped Reversionary average
% As at 28 February 2018 market value % Area (m2) EPRA NIY up yield yield lease length (by ERV) Indexed
Wigan, Grand Arcade 5.2 100.0 41,482 7.4 7.4 7.0 8.0 98.0 34.1 Berlin, Schloss Centre 5.0 100.0 18,522 4.5 4.5 5.0 5.5 97.3 90.0 Northampton, Weston Favell 4.8 100.0 30,363 7.3 7.4 8.0 7.0 97.0 50.8 Hamburg, Bahnhofg Altona 4.4 100.0 15,042 5.0 5.0 5.2 3.8 96.7 97.6 London, Harrow, St Georges 4.2 100.0 20,139 5.7 5.7 6.6 3.8 100.0 20.1 London, Monument, St Dunstans 3.9 80.0 5,428 6.2 6.2 6.2 n/a n/a — Crawley, Camino Park Distribution Centre 3.9 100.0 33,171 4.0 4.0 5.4 5.2 100.0 7.1 London, Charing Cross Road 3.6 100.0 3,716 3.2 3.2 3.9 4.2 100.0 33.7 Banbury, Banbury Cross Retail Park 3.1 100.0 16,610 5.2 6.2 6.6 6.5 88.9 10.7 London, Watford, The Arches Retail Park 2.8 100.0 11,599 6.5 6.6 5.4 9.5 100.0 5.7 Top 10 40.9 Bridgwater, Express Park Distribution Centre 2.7 100.0 47,207 5.9 5.9 6.0 3.8 100.0 — London, Southwark Holiday Inn Express 2.6 82.5 3,936 5.5 5.5 5.8 n/a n/a — Edinburgh, DoubleTree Hilton 2.5 82.5 7,250 6.4 6.4 6.7 n/a n/a 3.3 London, Merton, Priory Retail Park 2.1 100.0 6,255 5.7 5.7 5.2 7.7 100.0 — London, Earl's Court Holiday Inn Express 2.1 82.5 2,781 5.7 5.7 6.2 n/a n/a — London, Liverpool Street, New Broad Street 2.0 80.0 3,291 5.5 5.5 5.5 n/a n/a — London, St Pauls, Little Britain 2.0 80.0 3,429 5.3 5.3 5.3 n/a n/a — London, Waterloo, Boundary Row 1.9 80.0 3,326 6.9 6.9 6.9 n/a n/a — Warrington, Birchwood 1.9 100.0 34,361 7.1 7.4 8.5 14.6 97.5 3.9 Ingolstadt, City Arcaden 1.8 100.0 12,211 0.8 1.0 5.4 3.9 100.0 84.6 Top 20 62.5
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Principal debt Cost of Principal debt (proportionate) debt As at 28 February 2018 Lender Currency £m £m Maturity (%) AUK HSBC, RBS, Barclays, Santander GBP 258.0 258.0 Sep 2020 2.8% AUK facility 258.0 258.0 Serviced offjce portfolio Barclays, Deutsche Bank GBP 73.3 73.3 Dec 2019-Aug 2022 2.8% 26 Esplanade Lloyds Bank GBP 17.4 8.7 Dec 2022 6.1% UK Offjces 90.7 82.0 Kwik Fit Portfolio Aviva GBP 9.9 9.9 Jun 2029 6.4% Petrol Filling Stations HSBC GBP 3.5 3.5 Jan 2019 4.2% UK Automotive 13.4 13.4 Aviva UK Shopping Centre Aviva GBP 145.5 145.5 Apr 2042 5.5% St George’s, Harrow Berlin Hyp GBP 37.4 37.4 Apr 2021 2.9% West Orchards, Coventry Santander GBP 11.4 11.4 Nov 2021 4.2% UK Retail 194.3 194.3 RBDL Hotels Portfolio Aareal Bank GBP 113.4 113.4 Nov 2021 2.8% IHL Portfolio Santander GBP 54.1 54.1 Jul 2020-Dec 2021 3.0% UK Hotels 167.5 167.5 Europe Bahnhof Altona, Hamburg HSH Nordbank Euro 39.9 39.9 Feb 2024 2.7% Schloss-Strassen Center, Berlin HSH Nordbank Euro 54.9 54.9 Mar 2021 1.9% German Shopping Centres 94.8 94.8 Premium Portfolio Munchener Euro 12.0 12.0 Feb 2020 1.3% OBI Portfolio Bayern LB Euro 12.4 12.4 Dec 2022 1.6% Bremen/Lindenhofg Bayern LB Euro 3.1 3.1 Sep 2019 2.0% Waldkraiburg Bayern LB Euro 4.3 2.2 Jun 2024 1.7% Kaiserslautern Bayern LB Euro 3.4 1.8 Jun 2024 1.7% Hückelhoven Bayern LB Euro 6.1 3.2 Jun 2024 1.7% German Supermarkets and Retail Parks 41.3 34.7 Total 860.0 844.7
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Company earnings IFRS proportionately consolidated EPRA adjustments specifjc adjustments proportionately For the six months ended 28 February 2018 Group JVs Total Group JVs consolidated Group JVs consolidated
Rental income 54.6 0.9 55.5 — — 55.5 — — 55.5 Rental expense (4.8) (0.1) (4.9) — — (4.9) — — (4.9) Net rental income 49.8 0.8 50.6 — — 50.6 — — 50.6 Other income 0.6 — 0.6 — — 0.6 — — 0.6 Administrative costs and other fees (7.2) (0.1) (7.3) — — (7.3) — — (7.3) Net operating income 43.2 0.7 43.9 — — 43.9 — — 43.9 Gain/(loss) on revaluation of investment property, assets held for sale and listed shares 8.5 (0.2) 8.3 (8.5) 0.2 — — — — Gain/(loss) on disposal of investment property and assets held for sale 0.4 — 0.4 (0.4) — — — — — Net gain on disposal of subsidiaries 14.3 — 14.3 (14.3) — — — — — Net gain on acquisition of subsidiaries 4.6 — 4.6 (4.6) — — — — — Amortisation of intangible asset (0.2) — (0.2) 0.2 — — — — — Foreign exchange loss (0.9) — (0.9) — — (0.9) 0.9 — — Profjt from operations 69.9 0.5 70.4 (27.6) 0.2 43.0 0.9 — 43.9 Finance Income 0.2 — 0.2 — — 0.2 — — 0.2 Joint venture interest income/(expense) 0.2 (0.2) — — — — — — — Finance expense (14.5) (0.3) (14.8) — — (14.8) 0.4 — (14.4) Other fjnance expense (0.6) — (0.6) 0.5 — (0.1) — — (0.1) Change in fair value of derivative fjnancial instruments 5.2 0.6 5.8 (5.2) (0.6) — — — — 60.4 0.6 61.0 (32.3) (0.4) 28.3 1.3 — 29.6 Impairment reversal of loans to joint ventures 0.1 — 0.1 (0.1) — — — — — Share of post tax profjt/(loss) from associate 0.3 — 0.3 — — 0.3 — — 0.3 Share of post tax profjt/(loss) from joint ventures — — — 0.2 (0.2) — — — — Movement in losses restricted in joint ventures — (0.4) (0.4) — 0.2 (0.2) — — (0.2) Profjt before tax 60.8 0.2 61.0 (32.2) (0.4) 28.4 1.3 — 29.7 Taxation (1.1) (0.2) (1.3) 0.6 0.2 (0.5) — — (0.5) Profjt 59.7 — 59.7 (31.6) (0.2) 27.9 1.3 — 29.2 NCI (4.5) — (4.5) 2.7 — (1.8) — — (1.8) Profjt attributable to equity holders 55.2 — 55.2 (28.9) (0.2) 26.1 1.3 — 27.4 Number of shares outstanding 1,905.1 — — — — 1,905.1 — — 1,905.1 Diluted weighted average number of shares outstanding 1,875.5 — — — — 1,875.5 — — 1,875.5 Earnings per share (p) 3.0 — — — — 1.39 — — 1.46
EPRA earnings proportionately
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Total Six months ended 28 February 2018 LSO IHL RHHL Europe NCI
NCI ownership (%) 20.0 25.9 17.5
Various Summarised income statement £m £m £m £m £m
Rental income 0.4 1.2 1.3 0.5 3.4 Rental expense (0.1) (0.3) — (0.1) (0.5) Net rental income 0.3 0.9 1.3 0.4 2.9 Other income — — — — — Administrative expenses — (0.1) — — (0.1) Net operating income 0.3 0.8 1.3 0.4 2.8 Net fjnance costs (0.1) (0.2) (0.3) (0.4) (1.0) Underlying earnings 0.2 0.6 1.0 — 1.8 Change in fair value of derivatives — 0.3 — — 0.3 Gain on revaluation of investment property 0.2 0.4 0.4 — 1.0 Gain on disposal of subsidiaries — — — 1.2 1.2 Non-underlying fjnance costs — — — 0.2 0.2 Non‑underlying earnings 0.2 0.7 0.4 1.4 2.7 IFRS profjt attributable to non-controlling interests 0.4 1.3 1.4 1.4 4.5
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Mike Watters
Chief Executive Offjcer e: mwatters@rdireit.com
Stephen Oakenfull
Deputy Chief Executive Offjcer e: soakenfull@rdireit.com
Donald Grant
Chief Financial Offjcer e: dgrant@rdireit.com
Adrian Horsburgh
Property Director e: ahorsburgh@rdireit.com
Janine Ackermann
Head of Investor Relations e: jackermann@rdireit.com
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