Investor presentation - May 2013 Focus, scale and quality set us - - PowerPoint PPT Presentation

Investor presentation - May 2013

Focus, scale and quality set us apart

Page 2 Trafford Centre Lakeside Metrocentre

Focus, scale and quality set us apart

• 10 of the UK’s top 25 centres, 16 in total
• More top shopping centres than any other
• perator
• Two thirds of UK population within 45 minute

drive

• 320 million annual customer visits (2012)

– 30 million, half of UK population, visited an

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– 30 million, half of UK population, visited an Intu centre in 2012

• 17 million sq ft of prime retail
• 95% occupancy (March 2013)

The most specialised of major UK REITs

• £7.3 billion prime shopping centre assets
• 66% super-regional centres, 33% town and city centres
• £3.2 billion market capitalisation
• Strong family ownership
• Long term approach

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Providing great retail and leisure experiences

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Retail property market context

Structural shift of UK retail

Minimal new supply

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Becoming digitally connected

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Enhancing our dynamic retail and leisure destinations

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£1 billion investment pipeline over 10 years

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Active management - creating destinations

Focus on catering and leisure – why?

• Extends shopping hours, dwell time and potential

spend

• Widens the catchment
• Increases the reasons to visit
• Whole shopping trip experience

– the day out

Slide 10

– the day out

• Strong demand for restaurant units

– sustainable trend – high footfall locations ideal for operators

• Supports the retail offer

– complementary tone, e.g. 360 Champagne Bar, Platinum Mall, Metrocentre (pictured)

Intu’s catering strategy

• Increase the space

– Reconfigure or convert e.g. Braehead, Eldon Square – New build e.g. MetrOasis at Metrocentre and The Potteries, Stoke-on-Trent

• Re-balance the mix (see chart)

– to optimise spend per head and enhance dwell time e.g.

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The mix – key catering categories

Slide 11

Chapelfield, Metrocentre Qube Phase II

• Enhance the clarity of offer and zoning

– clusters appropriate for some categories – impulse offer spread through malls

• Increase range and depth of offer

– new concepts – pursue changes

• Ambience and experience
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First quarter statement 2013

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Acquisition – Midsummer Place, Milton Keynes

Overview

• c.420,000 sq ft modern, prime

shopping centre

• Milton Keynes’ premier retail offer
• Cash consideration of £250.5 million

before expenses

• 5.1 per cent NIY; 5.5 per cent NEY

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• Net rents of £13.4 million
• Expected to be neutral to underlying

earnings

• Weighted average unexpired lease term in excess of 6 years
• 91 per cent of income secured against national and international

retailers

8 May 2013 trading update

• UK retail environment remains difficult

– retailers cautious with store commitments

• Intu’s centres continue to out-perform

national benchmarks and attract new brands and flagship stores

• Tenant failures and lease expiries

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• continue to affect short term earnings
• Footfall down 1% vs. Experian national

benchmark down 4%

• Occupancy 95%
• 33 new long term leases signed Q1,

£8m new passing rent, 2% above previous

New debt funding platform

Flexible, ring-fenced security pool

£450m 2023 £350m 2028 Term Loan

£1.15 b new debt

BONDS

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£350m 2018

• refinanced 1/3 of group’s debt
• 50% loan to value achieved at competitive margins
• highly successful ‘A’ rated bond issue
• diversifies sources of funding
• blended 4.4% cost
• weighted maturity extended from two years to ten years. Group average now eight years
• significantly derisked 2015-2017 maturities

Value: £2.3 b

Bond issue significantly extends debt maturity profile

Weighted average maturity c 8 years (was 6 years)

500 600 700 800 900 1,000

ayments (£'m)

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• 100

200 300 400 2013 2014 2015 2016 2017 2018 2019-2023 2024-2028 2029+

Annual repa

Pro forma, adjusted for 2013 refinancing 31 December 2012 as reported

Appendix

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UK’s top ranked shopping centres

Centre Location Centre Location 1 Westfield London London – Shepherds Bush 21 Festival Place Basingstoke 2 Bluewater Greenhithe 22 Braehead Glasgow 3 Westfield Stratford City London - Stratford 23 The Glades Bromley 4 Meadowhall Sheffield 24 Silverburn Glasgow 5 Trafford Centre Manchester 25 Eldon Square Newcastle 6 Metrocentre Gateshead 26 Victoria Square Belfast 7 Lakeside Thurrock 27 Cabot Place, One Canada Square London 8 Liverpool One Liverpool 28 White Rose Shopping Centre Leeds 9 St David's Cardiff 29 Churchill Square Brighton 10 The Mall at Cribbs Causeway Bristol 30 Buchanan Galleries Glasgow 11 Bull Ring Birmingham 31 East Kilbride Shopping Centre Glasgow 11 Bull Ring Birmingham 31 East Kilbride Shopping Centre Glasgow 12 Arndale Manchester 32 Chapelfield Norwich 13 Cabot Circus Bristol 33 Golden Square Warrington 14 Westfield Merry Hill Brierley Hill 34 The Oracle Reading 15 Westfield Derby Derby 35 Touchwood Solihull 16 Highcross Leicester Leicester 17 Brent Cross Shopping Centre London 38 Victoria Centre Nottingham 18 thecentre: mk Milton Keynes ** 49 The Potteries Stoke-on-Trent 19 The Harlequin Watford 74 The Chimes Uxbridge 20 West Quay Southampton 149 Broadmarsh Nottingham

Source: PMA * Top shopping centres on basis of PMA Retail Score (2012). Intu shopping centres highlighted ** Adjoined by Midsummer Place, acquired by Intu in March 2013 Page 18

Yield comparisons

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• Prime UK shopping centres - attractive asset class for major international investors
• Wide spread relative to risk free rate and corporate bonds

Net debt to assets 49.5%

31 December 2012 - robust financial position

31 December 2012 31 December 2011

Total properties £7,073m £6,960m Net external debt £(3,504)m £(3,374)m Net debt to assets 49.5% 48.5% Cash £188m £91m Undrawn committed corporate facilities £375m £330m

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Net assets £3,006m £2,946m Adjusted net assets per share 392p 391p Weighted average cost of gross debt 5.2% 5.6% Weighted average maturity of gross debt 6.1 years 7.0 years

Major centres

The Harlequin, Watford – Charter Place opportunity

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Slide 21 Site location

3(4* 144

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Growing the pipeline

Victoria Centre & Broadmarsh – a strategy for Nottingham

VICTORIA CENTRE PROPOSED EXTENSION

Slide 22

OLD MARKET SQUARE BROADMARSH LACE MARKET

Weighted average expiry 7.8 years

Lease expiry profile ~

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* Excludes four per cent in respect of leases which have expired of which around two- thirds are in negotiation or solicitors hands ~Expressed as a % of rent roll, as at 31 December 2012

Super-regional centres

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In-town centres

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In-town centres continued

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David Fischel Matthew Roberts Mike Butterworth

Highly experienced executive management team

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David Fischel Chief Executive Matthew Roberts Finance Director Mike Butterworth Chief Operating Officer

David Fischel was appointed Finance Director in 1988, Managing Director in 1992 and Chief Executive in March 2001. During his 27 year career with CSC, David has gained significant executive experience in numerous aspects of the shopping centre industry including shopping centre acquisitions and developments. He has also been closely involved with the group’s corporate development including equity and debt financings and a wide range of other corporate transactions, including the 2010 demerger of Capital & Counties from CSC. Matthew Roberts (FCA) joined Capital Shopping Centres Group as Finance Director in May 2010 and was part of the team which acquired The Trafford Centre, Manchester, in the UK's largest ever single property transaction. Previously, as Chief Financial Officer of Gala, subsequently Gala Coral, Matthew led a number of acquisitions and fundraisings including the creation of a £3 billion debt package. Whilst Finance Director

• f Debenhams plc, Matthew managed its 1998

IPO and, amongst other responsibilities, ran its international business and property function. Mike Butterworth was appointed Chief Operating Officer on 3 October 2011. He joined the Group as Chairman, CSC Trafford in January 2011. Mike was formerly the Property Director of Peel Holdings and the Managing Director

• f

The Trafford Centre Limited and is a fellow of the Royal Institution of Chartered Surveyors.