INVESTOR PRESENTATION September 2019 www.londonmetric.com - - PowerPoint PPT Presentation

www.londonmetric.com

LONDONMETRIC PROPERTY PLC INVESTOR PRESENTATION

September 2019

FTSE 250 UK REIT, £1.8bn market cap

• ‘All weather’ portfolio benefiting from technological & demographic change
• Logistics, long income and convenience assets
• Urban logistics footprint increased with £415m acquisition of Mucklow
• REIT delivering reliable, repetitive and growing income returns
• Progressive and covered dividend
• WAULT of 12 years, single let income
• Strong alignment of interest
• Internally managed, strict internal competition for capital
• Management is 8th largest shareholder

LondonMetric background

Objective is to deliver attractive and dependable income-led returns to shareholders over the long term 2

“Compounding is the 8th Wonder of the World: those who understand it, earn it, those who don’t, pay it”

WAULT1

12 years

Occupancy1

98%

Indexation on portfolio1

63%

Geographical focus

London, SE & Midlands

1. Portfolio metrics as reported at 31 March 2019

3

Delivering Long Term Shareholder Returns

Our keyfocus is to drive earnings and distribute

Earnings Growth (pps) Net Rental Income (£m)

20 40 60 80 100

Total Shareholder Return (rebased to 100)1,2

1. Source: Bloomberg as at 31 March 2019, dividend return assumes reinvestment 2. Based on financial year end. First year shown is for FY 13/14

Dividend Shareholder Return (rebased to 100)1,2

• 2.0

4.0 6.0 8.0 10.0 100 140 180 220 260

Dividend Share price

100 110 120 130 140 150 160 170 180

Buy the right SECTORS

4

Market Backdrop

Income quality & growth will define the investment winners

2019+ 2012 2015 2018 2015

Own the right ASSETS

Buy any assets, any sectors

• Yield arbitrage highly attractive

across all property sectors

• All boats rise on the same tide

and benefit from re-pricing Align to sectors with structural support

• Logistics
• Convenience
• Student accommodation
• Healthcare
• Long income

Buy the MARKET

– –

Own the right assets in the right sectors by focusing on

• Geography
• Credit strength of occupier
• WAULT
• Occupier contentment
• Income growth prospects

Online shopping driving demand for logistics

Channel shift from bricks to clicks is permanent and profound 5

• Online adoption continues to grow
• Consumer expectations continue to increase
• Creating strong demand/supply dynamics for logistics
• Distribution take-up remains strong
• Record take up in 2018
• Long leases
• Typically index linked
• Very high gross: net income ratios
• Minimal operational/ obsolescence capex
• But supply responding in Big Box
• Increase in speculative development for big box logistics
• Supply highly constrained in Urban
• Generating strong rental growth in urban logistics

UK Online Retail

+31% growth in online spend by 2023

22.0% 23.2% 24.3% 25.3% 26.1% 26.9% 27.5%

20% 22% 24% 26% 28%

2017(a) 2018 2019 2020 2021 2022 2023

Percentage of UK non-food retail online UK Distribution Take-up

Blackstone: “Logistics is our highest conviction global investment theme”

Mega 19% Regional 18% Urban 31% Multi-let industrial 4% Long Income 20% Retail Parks 4% Office & Resi 4%

Significant portfolio re-alignment since merger in 2013

Objective is to deliver attractive and dependable income-led returns to shareholders over the long term

• Rotation out of London office, residential and multi-let retail
• Investment into logistics and long income assets
• More recent focus into urban logistics, out of larger box logistics

Distribution 21%

Long Income 5%

Retail Parks 26% London Resi & Office 48%

£1.2bn £2.3bn

March 2013

6 Acquired & Developed

£2.1bn

Sold

£1.7bn

March 2019 (pro forma)1,2

1. LondonMetric data as at 31 March 2019, long Income includes convenience & leisure assets 2. Pro forma adjusts for Mucklow portfolio based on 30 April 2019 values

Our Core Portfolio

72% of portfolio providing end to end logistics 7 Mega & Regional Distribution1

• 17 assets, 6.6m sq ft
• £37.5m rent (£5.80 psf)
• NIY2 4.3%, EY 4.8%
• WAULT 15 years
• Occupancy 98%
• Contractual uplifts on 88%
• TPR +10%
• Rent reviews +8% ahead3

Urban Logistics1

• 55 assets, 3.3m sq ft
• £21.5m rent (£6.70 psf)
• NIY24.3%, EY 5.0%
• WAULT 10 years
• Occupancy 95%
• Contractual uplifts on 44%
• TPR +16%
• Rent reviews +28% ahead3

Long Income & convenience-led retail1,4

• 60 assets, 1.9m sq ft
• £24.7m rent (£18.60 psf)
• NIY2 5.7%
• WAULT 12 years
• Occupancy 100%
• Contractual uplifts on 52%
• TPR +5%
• Rent reviews +15% ahead3

1. As at 31 March 2019. Rent, NIY & WAULT on Investment Portfolio, excluding A&J Mucklow assets 2. Topped up NIY 3. Ahead of passing on 5 yearly equivalent basis 4. Includes long income, convenience & leisure, excludes retail parks

8

A&J Mucklow Group plc acquisition

Created one of the UK’s leading listed logistics & distribution platforms

1. Mucklow portfolio value as at 30 April 2019, all other stats as at 31 December 2018

• £415m acquisition of an income focused UK listed REIT

– Family business founded in 1933, extended family owned c.30% – c65% in new shares, c35% cash - NAV for NAV approach

• Compelling strategic, operational & portfolio rationale

– Further increased urban logistics exposure where rental growth is superior – Combined portfolio larger & more resilient – Significant upside from more intensive asset management & enhancement

• Financial benefits support progressive dividend policy

– Immediately earnings accretive through economies of scale & synergies – Rental reversions & portfolio activity will deliver further benefits – Improved liquidity & optionality in equity and debt markets

• Conservative LTV approach

– Mucklow LTV of 16% – Combined LTV marginally increased from 32% to 35%

Bosch, Worcester Rent £26.1m (£6.90 psf) Value £453m (£119 psf) Occupancy 97.6% WAULT 7.2 years Location 86% - Midlands 10% - London & SE Attractive & well located real estate1 NIY 5.4% Equivalent Yield 6.1% Near term Development 135,000 sq ft – PC Q4 19 190,000 sq ft – Pipeline Strong income growth prospects1

Urban 54% Multi-let industrial 15% Office 15% Long Income 14% Retail Parks 2% Mega 19% Regional 18% Urban 31% Multi-let industrial 4% Long Income 20% Retail Parks 4% Office & Resi 4%

9

Mega 23% Regional 22% Urban 27% Long Income 22% Retail Parks 5% Resi 1%

£2.3bn

5.3% EY

£1.85bn

5.1% EY

£0.45bn

6.1% EY

1. LondonMetric data as at 31 March 2019 2. Long Income includes convenience & leisure 3. Mucklow data as at 30 April 2019, split by LondonMetric classification 4. Mucklow’s logistics/multi-let industrial assets classified as urban logistics

LondonMetric1,2 Mucklow3 Combined2,4

A&J Mucklow acquisition (cont.)

Complementary assets totalling £2.3 billion, focused on distribution and long income

Distribution & Long Income focused REIT

• Enlarged end-to-end distribution portfolio of £1.65bn
• Increased LondonMetric’s urban logistics exposure from 27% to 35%4
• 79% weighting to superior geographies - South East and Midlands
• Increases income diversification – top 10 tenants exposure falls from 51% to 39%
• Combined Rent of £115.8m
• Combined WAULT of 11.3 years and occupancy of 97.8%

Investment Activity (FY 19)1

Asset selection is increasingly critical – focussing on the right assets in the right sectors 10

Acquisitions - £163m Disposals - £238m

£106.6m urban – including Milton Keynes and Orpington £35.8m convenience – including Durham and London

• 4.6% NIY, rising to 5.3% in 5 years
• 14.0 years WAULT
• Superior geographies - South East focused

£115.6m mega/regional – including Wakefield and Sheffield £43.9m retail parks in Ipswich and Launceston

• 3.7% NIY (5.3% NIY ex-vacant sales)
• 8.8 years WAULT (31% vacant)
• Weaker geographies

Milton Keynes Ipswich

Howdens

Hemel Hempstead Orpington Doncaster Wakefield (Ex Poundworld) Cambridgeshire Sheffield (Ex M&S)

1. See Appendix for FY 2020 YTD transactions

Bedford Link

• 188,000 sq ft completed at 6.4% YOC,

73% let ~ £1.0m rent

• 500,000 sq ft pipeline at 7.3% YOC

Croda Funding

• 232,000 sq ft in construction at 5.2% YOC,

100% let ~ £1.3m rent

Tyseley

• 135,000 sq ft in construction ~ £1.0m rent
• 190,000 sq ft pipeline

Swindon

• 55,000 sq ft extension in construction

Mega & Regional

• 1.3m sq ft, 11.3 years
• £7.5m total rent

11

Asset Management & Development

Distribution Development 50 Lettings & Rent Reviews in FY 2019

• 19 lettings, 11 years WAULT
• 31 rent reviews, 11.7% ahead1
• £3.2m rental income uplift
• 5.7% L-F-L (2.9% ex one-off gains)

1. 5 yearly equivalent basis 2. Including convenience, leisure, retail parks

Lettings & regears, 2.0m sq ft Rent reviews1, 4.2m sq ft

Urban Logistics

• 0.6m sq ft, 9.5 years
• +17% uplift on regears

Urban Logistics +28% Regional +11% Mega +7% Long Income2 +18%

100 105 110 115 120 125 130 0.0% 1.0% 2.0% 3.0% 4.0% 5.0% 6.0%

FY15 FY16 FY17 FY18 FY19

Like for Like (LFL) L4L Cumulative

Pipeline

Let Let Available

Earnings Yield2

5.3%

2018: 5.7%

FY 2019 Financial Highlights

Year to 31 March 2019 12 Revaluation surplus

+£64.4m

Yield compression 10 bps1, ERVg +1%

March 2019 March 2018 Change Net Rental Income £93.8m £90.6m +3.5% EPRA Earnings £61.0m £59.1m +3.2% EPRA Earnings (pps) 8.8p 8.5p +3.5% Dividend (pps) 8.2p 7.9p +3.8% EPRA NAV (pps) 175p 165p +5.9%

1. Equivalent yield movement on portfolio (LFL) 2. EPRA Earnings for the year divided by opening EPRA NAV 3. 14.1% excluding vacancy costs

Reported Profit

£119.7m

2018: £186.0m Total Accounting Return

+10.7%

2018: +15.4% EPRA cost ratio3 15% Gross / net income leakage 1.8% Dividend cover 107% Total Property Return

+9.0%

+440bps outperformance

Financing

Debt Metrics1 31 March 2019 Proforma, including A&J Mucklow 31 March 2019 31 March 2018

Total Facilities £999.7m

80% unsecured

£774.8m Gross Debt £852.1m £626.2m

70% unsecured

£708.9m Average cost of finance 3.1% 3.1% 2.8% Marginal cost of debt 2.0% 2.0% 1.8% Average maturity 6.1 years 6.4 years 4.8 years Hedging2 73% 73% Loan to Value3 35% 32% 35%

1. Proportionally consolidated basis 2. Based on total facilities drawn 3. LTV includes consideration receivable/payable on transactions exchanged with delayed completion at year end

13

Market Outlook

Income continues to be the defining characteristic of the next decade’s investment environment

• Structurally supported sectors remain in demand

– Disruption is challenging some traditional sectors, generating material value destruction – Momentum accelerating – creating large sector polarisation

• Asset selection to define winners and losers

– Property market not properly discriminating between assets within sectors – Cap rates need to reflect direction, trajectory and timings of cashflows

• Income compounding strategies to outperform hyperactive ones

– Low interest rates/bond yields and an ageing population driving demand for income – Reliable, repetitive and growing income streams remain highly attractive

14

1. Capital Economics

Logistics Convenience Student Healthcare Geography Credit strength WAULT Income growth Income as % of UK property returns1

130%

next 5 years

Look forward

Alignment, Building & Compounding to enhance dividend progression

15

Aligned to structural trends

• Structural calls will continue to define the winners and losers
• Those that cling onto the more traditional forms of business will be disrupted
• Alignment to distribution and long income puts us on the right side of structural changes

Building an ‘all weather’ & leading distribution portfolio

• Disciplined investment approach to ensure portfolio is fit for purpose
• Creating one of the UK’s leading logistics & distribution platforms
• Benefit from superior rental growth both organically and through contractual uplifts

Compounding

• ur income to

progress dividend

• Our sustainable and growing earnings are delivering dividend progression that is well covered
• We continue to believe that income compounding strategies will outperform

Deal acquired A&J Mucklow

• Compelling strategic and portfolio rationale
• Strong operational benefits and economies of scale
• More intensive asset management programme to deliver significant upside
• Financial benefits supporting progressive dividend

APPENDICES

Information as at 31 March 2019, excluding A&J Mucklow assets unless otherwise stated

17

LondonMetric(1) Mucklow(2) Combined

Portfolio value £1.85bn £0.45bn £2.3bn Area (Sq Ft) 12.1m 3.8m 15.9m Contracted rent roll £89.7m £26.1m £115.8m Net initial yield 4.7% 5.4%3 4.9%3 Equivalent yield 5.1% 6.1% 5.3%3 Earnings Yield 5.3% 5.3% 5.3%3 Dividend Cover 1.07x4 1.10x4 1.07x4 WAULT (years) 12.5 7.23 11.33 Occupancy 97.8% 97.6% 97.8%3 Debt Drawn £626.2m £80.7m £852.1m5 Loan to value (LTV) 32% 16%3 35%3,5 Weighted average interest cost 3.1% 3.3% 3.1%3,5 Debt Maturity (years) 6.4 10.23 6.13,5

LondonMetric, Mucklow - combined information

1. LondonMetric data as at 31 March 2019. NIY is topped up 2. Mucklow portfolio value as at 30 April 2019, all other stats as at 31 December 2018 3. LondonMetric calculation. Combined represents Proforma 4. Mucklow as at FY18, LondonMetric as at FY19. Combined represents Proforma cover 5. Allowing for cash element of the offer

A&J Mucklow

18

Property Sector Sq ft

1 - Coventry Long Income (Costco) 129,000 2 - Crawley Distribution (Elekta, CGG) 161,000 3 - Wednesbury Distribution (HFR, Exova) 172,500 4 - Dudley Distribution (Eriks, Timken) 158,000 5 - Worcester Distribution (Bosch) 116,000

Distribution 54% Multi-let industrial 15% Office 15% Long Income 14% Retail Parks 2%

£0.45bn Portfolio and West Midlands background Top 5 assets by value ~ c25% of portfolio value

1. LondonMetric classification based on Mucklow 30 April 2019 valuations 2. Source: LSH 3. Up to 50,000 sq ft warehousing, current supply is less than a third of peak level 4. Source: Gerald Eve

• Largest UK region for

distribution take up over the last 5 years2

• Supply of small &

medium box at lowest level since peak in 20122,3

• Rents grown by c.27%
• ver 6 years compared

to London at c.31%4

• Birmingham distribution

rents increased c.7% in 20182

West Midlands

Costco, Coventry Bosch, Worcester

Portfolio Split1

1 3 4 5

LondonMetric Portfolio

As at 31 March 2019

19

NIY1

EY1

Rent2 WAULT TPR2,3 CVg3

Urban (£504m)2

4.3% 5.0% £21.5m 10.0yrs +16% +12%

Regional (£408m)2

4.1% 4.9% £17.2m 13.6yrs +12% +8%

Mega (£427m)2

4.4% 4.7% £20.2m 15.4yrs +8% +3%

Long Income (£403m)2,4

5.7% 5.6% £24.7m 12.1yrs +5%

• 1%

Retail Parks (£87m)

6.3% 6.2% £5.9m 10.4yrs

• 3%
• 8%

Investment portfolio 4.7% 5.1% £89.5m 12.5yrs +9% +4%

1. Topped up NIY and Equivalent Yield 2. Including developments 3. Source: IPD. Portfolio TPR and CVg includes residential 4. Long Income including convenience & leisure assets

Mega 23.1% Regional 22.1% Urban

27.3%

Long Income 21.9% Retail Parks 4.7% Resi 0.9%

72.5% Distribution2

(FY 19) (FY 19)

Portfolio Metrics

As at 31 March 2019

20

Area Valuation (Share) Revaluation Surplus/(Deficit) IPD CVg4 Occupancy NIY1 WAULT (years) Contracted Rent Fixed Uplifts Average Rent As at 31-March-19 (m sq ft) (£m) (£m) (%) (%) (%) (%) Expiry Break (£m) (%) (£ psf)

Mega distribution 3.6 427.1 13.5 3.3 3.2 100.0 4.4 15.4 15.4 20.3 100.0 5.7 Regional distribution 3.0 385.5 33.7 9.6 7.8 95.7 4.1 13.6 13.1 17.2 73.2 6.2 Urban logistics 3.3 480.0 35.3 7.9 11.5 95.1 4.3 10.0 8.4 21.5 44.3 6.7 Distribution 9.9 1,292.6 82.5 6.8 7.7 96.9 4.3 12.9 12.2 59.0 71.8 6.2 NNN Income2 1.4 237.4 (17.0) (6.7) (5.3) 100.0 6.2 10.7 9.1 15.7 33.9 19.0 Convenience & Leisure 0.5 152.1 2.2 1.5 4.9 100.0 4.8 14.8 14.6 7.9 84.0 15.8 Long Income 1.9 389.5 (14.8) (3.7) (0.5) 100.0 5.7 12.1 10.9 23.6 52.0 17.8 Retail Parks (RPs) 0.3 87.0 (11.2) (11.4) (8.0) 98.8 6.3 10.4 8.6 5.9 22.6 18.5 Long income & RPs 2.2 476.5 (26.0) (5.2) (2.1) 99.8 5.8 11.8 10.6 29.5 46.4 17.9 Investment Portfolio 12.1 1,769.1 56.5 3.3 97.8 4.7 12.5 11.6 88.5 63.2 7.9 Residential – 17.3 (1.7) (9.2) 0.2 Development3 – 59.8 9.6 19.3 1.0 Total Portfolio 12.1 1,846.2 64.4 3.6 3.9 4.4 12.6 11.8 89.7 8.0

1. Topped up NIY 2. Comprises long let retail with low operational requirements, primarily DFS and MIPP JVs 3. Developments consist of Bedford, Durham, & Weymouth. Derby development site acquisition conditional on planning so not included 4. As calculated by MSCI (IPD) which includes development gains in each sector line and takes into account the performance of assets sold prior to the year end

21

Rental Income Profile

As at 31 March 2019

Contractual Rent Reviews

(2019: 63% of income)

Key occupiers

(>2% of income)

FIXED, 28.1% FIXED, 28.4% RPI/CPI, 22.2% RPI/CPI, 34.8%

50.3% 63.2%

0% 20% 40% 60% 80% 100% 2018 2019

Unexpired Lease Terms

(2019: 12.5 years)

13.1 12.8 12.8 12.4 12.5

11.0 11.5 12.0 12.5 13.0 13.5

2015 2016 2017 2018 2019

2.1% 2.3% 2.4% 2.6% 2.8% 3.3% 3.5% 4.3% 4.6% 4.7% 5.2% 8.8% 10.9%

Next Wickes Amazon Clipper Logistics Tesco Odeon DHL DFS Eddie Stobart Argos M&S Dixons Carphone Primark % Distribution & Convenience Rent

0% 0% 16% 89% 62% 97%

22

Acquisitions

FY 2019

Sector Value (LM share) Yield WAULT (years) £m NIY Reversion1 Expiry 1B Cambridgeshire Distribution 10.0 4.6% 5.3% 20.0 20.0 Portfolio - 9 assets2 Distribution 49.1 4.3% 5.3% 8.0 6.6 Milton Keynes Distribution 12.0 5.0% 5.0% 9.9 9.9 Avonmouth Distribution 13.5 5.1% 6.0% 8.7 8.7 Thorne Distribution 7.9 4.8% 5.5% 20.0 20.0 x4 assets Long Income (MIPP) 10.6 5.5% 6.2% 14.3 13.6 Derby2 Long Income 5.9 5.3% 5.3% 14.1 14.1 Durham Convenience 13.6 5.4% 5.8% 20.1 16.2 Portfolio – 8 roadside assets Convenience 12.1 4.1% 4.7% 24.5 24.5 Hull Leisure 4.3 5.5% 6.3% 20.0 20.0 Orpington Distribution 7.8 3.8% 4.7% 15.0 15.0 Basildon Distribution 6.3 4.4% 5.1% 20.0 20.0 x2 London Convenience 10.2 3.7% 4.1% 16.1 16.1 163.3 4.6% 5.3% 14.0 13.2

22

1. Reversionary yield based on current ERV or, in case of contractual uplifts, running yield in 5 years based on inflation expectations 2. Acquired as part of a portfolio totalling £55m

FY 2020 YTD

£m NIY Reversion1 Expiry 1B DFS JV - Increase in equity Long Income 18.6 In line with existing portfolio metrics Worthing, Bournemouth Convenience 6.1 4.9% 5.6% 20.0 20.0 Croydon & Dunstable Distribution 9.9 4.5% 5.9% 15.7 10.3 Croda funding Distribution 24.0 5.2% 5.8% 20.0 20.0 Bognor Regis Distribution 17.8 8.6% 9.6% 15.0 7.0

23

Disposals

FY 2019

Sector Value (LM share) Yield WAULT (years) £m % Expiry 1B Warrington Leisure 13.7 4.8% 20.0 20.0 Penrith & Cowes Convenience 10.7 4.5% 17.0 17.0 Launceston Retail Parks 21.9 5.6% 10.0 8.4 x2 Roadside Assets Convenience 2.2 4.6% 24.3 24.3 Portfolio of 6 assets Distribution 36.0 5.9% 5.7 5.3 Ipswich Retail Parks 22.0 5.2% 11.9 10.0 Leicester (vacant) & Doncaster Distribution 17.3 3.3% 0.9 0.9 Oldham Long Income (MIPP) 2.2 6.2% 14.7 14.7 Ashby de la Zouche & x2 in Wakefield Distribution 24.3 5.4% 7.5 3.4 One Stop, Wakefield Distribution 10.5 5.4% 4.2 4.2 Sheffield Distribution 23.5 vacant n/a n/a Poundworld, Wakefield Distribution 43.5 vacant n/a n/a Moore House Residential 10.4 n/a n/a n/a 238.2 3.7% 8.8 7.6

23

Largest distribution assets (by value) Occupier Annualised rent (£m) Islip Primark 5.6 Dagenham Eddie Stobart 4.1 Thrapston Primark 4.2 Newark Dixons Carphone 4.4 Bedford Argos 4.1 Warrington Amazon 2.1 Croydon Tesco 1.9

Distribution Assets

As at 31 March 2019

24

1 3 4 2 5 6

REGIONAL

London & South East 41% Midlands 24% North East & Yorkshire 15% North West 12% South West 8% 100%

URBAN LOGISTICS

London & South East 64% Midlands 13% North West 9% North East & Yorkshire 6% South West 5% Other 3% 100%

MEGA

Midlands 72% London & South East 20% North East & Yorkshire 8% 100%

Split by region

7

7 1 3 4 2 5 6

Developments Summary

As at 31 March 2019 (Excluding Mucklow & Crodadevelopment) 25

Sq ft 000 PC1 Rent/ uplift £m YOC (%) Total cost £m FY 19 FY 20 FY 21 Dagenham3 180 Q2 18 0.9 5.7 17 3 Frimley 62 Q2 18 0.7 5.6 13 7

Ringwood 33 Q4 18 0.2 5.0 4 3 Ipswich 39 Q2 18 0.7 6.9 9 3 Telford 8 Q4 18 0.1 5.7 2 2 Completed FY 19

322 2.6 5.8 45 18 Bedford (Regional)2 500 20/21 3.3 7.3 46 3 TBD TBD Subject to occupier commitments Bedford (Urban)2,4 188 Q2 19 1.3 6.4 20 11 5 73% pre-let Durham 58 Q3 19 0.8 5.4 14 7 7 Forward fund, pre-let to Lidl & The Range New Malden 57 20 0.4 5.6 6 6 Extension & modification of existing asset with 3 new convenience occupiers including Lidl Swindon3 55 Q4 19 0.3 7.8 4 4 Extension to existing asset Weymouth2,4 27 20 0.6 6.3 9 5 Land acquired, 19k sq ft pre-let to Aldi Derby2 16 20 0.4 6.7 6 TBD TBD Site acquisition conditional on planning Committed & pipeline 901 7.1 6.7 105 21

1. Based on calendar quarters and years 2. Anticipated yield on cost and rents 3. Marginal yield on cost 4. Some of the total cost for Bedford and Weymouth was spent in FY 18 when the land was acquired

Historic Debt Metrics

26

Warrington Bedford

Debt Maturity (years)

3.7 4.2 5.6 5.2 4.8 6.4 0.0 1.0 2.0 3.0 4.0 5.0 6.0 7.0

2014 2015 2016 2017 2018 2019

Interest Cover Ratio (x) Cost of Debt (%)

2.9 4.0 5.0 4.5 5.0 4.7

0.0 1.0 2.0 3.0 4.0 5.0 6.0

2014 2015 2016 2017 2018 2019 3.9 3.7 3.5 3.5 2.8 3.1 0.0 1.0 2.0 3.0 4.0 5.0 2014 2015 2016 2017 2018 2019

Loan to Value Ratio (%)

32 36 38 30 35 32 10 20 30 40 50

2014 2015 2016 2017 2018 2019

As at 31 March

Debt Facilities

As at 31 March 2019

Facility Drawn Maturity Sector Lender (£m) (£m) (years) Expiry Wholly-owned portfolio Distribution term loan Distribution Helaba 130.0 130.0 5.3 2024 Unsecured RCF All Syndicate 337.5 79.9 3.0 2022 Unsecured RCF All Syndicate 106.3 25.1 2.0 2021 Private Placement 2016 All Syndicate 130.0 130.0 5.8 2023-28 Private Placement 2018 All Syndicate 150.0 150.0 11.8 2029-34 Unsecured All Wells Fargo 75.0 50.0 6.3 2025 Total wholly-owned 928.8 565.0 6.7 JV portfolio (LondonMetric at share) MIPP JV (50%) Long income Deutsche Pfandbrief 50.0 40.3 4.1 2023 DFS JV (45%)1 Long income M&G 20.9 20.9 0.3 2019 Total JV portfolio 70.9 61.2 2.8 Total Group and JV 999.7 626.2 6.4

27

27

1. Post year end this facility was fully repaid following the increase in the company’s equity holding in the JV from 45% to 82%