INVESTOR PRESENTATION MARCH 2014 INTRODUCTION A LEADING UK REIT - - PowerPoint PPT Presentation

WWW.BRITISHLAND.COM MARCH 2014

INVESTOR PRESENTATION

1

INTRODUCTION – A LEADING UK REIT

• £17.1bn owned and managed

portfolio

• Focused on UK Retail and

London Offices

• Delivering superior total returns

by Creating Places People Prefer

£17.1bn owned and managed portfolio 17% 22% 4% 5% 17% 12% 23%

City of London West End Other Department stores Shopping Centres Superstores Retail Parks

LONDON OFFICES UK RETAIL

2

KEY POINTS

Strongly performing business

• Strong recent results
• Continued outperformance

1

Executing smartly, according to plan

• Successfully deployed equity placing proceeds
• Delivering 2010 developments and replenishing the pipeline
• Repositioning Retail portfolio

2

Positive about the future

• Increased economic and investment activity
• Increased exposure to London/South East and replenished

development programme

3

Clear priorities

• Driving growth from standing investments
• Delivering returns from developments
• Continued Retail repositioning

4

3

CONSISTENTLY OUTPERFORMING THE MARKET

• Significant outperformance vs IPD, +9.2% since September 2010

(+260bps pa)

• Outperformed IPD on a 5 year (+230bps pa) and 10 year basis

(+70bps pa)

HY to 30 September 2011 2012 2013 H1 2014 Total Accounting Return 17.7% 9.5% 4.6% 6.8% Total Property Return 13.1% 8.3% 6.3% 5.5% Total Property Return vs IPD +180bps +200bps +310bps +60bps

4

STRONGLY IMPROVING OPERATING PERFORMANCE IN BOTH OFFICES AND RETAIL

• Good first half results, business performing well
• Continued improvement in Q3

– Like-for-like occupancy +30 bps to 97.1% – Investment lettings/renewals +5.3% Vs ERV (Retail +3.3%, Office +6.8%)

HY to 30 September Change UK Valuation £11.2bn +2.8% Capital Returns vs IPD +100bps NAV per Share 623p +4.5% Dividend per Share 13.5p +2.3% 6 month Total Accounting Return 6.8%

5

POSITIVE PERFORMANCE DRIVEN BY…

• Strong position in retail

large and high quality retail portfolio

• Increasing focus on London/South East

>60% of portfolio in South East

• Successful asset management

good leasing volumes; ahead of ERV

• £1.2bn development programme started in 2010

IRRs >30%

• Flexible and low cost finance

4.2% lowest of UK REITs

• Ability to secure attractive value accretive deals

acquired £1.4bn of assets over the last 2 years

• Ability to sell well

selling mature assets; £1.3bn of disposals over the last 2 years

6

• 80

20 120 220 320

Asset Management Development Yield Movement Total Valuation

VALUATION PERFORMANCE

UK Valuation Drivers

£m

H1 2012/13 H2 2012/13 H1 2013/14

£22m £90m £309m

TOTAL VALUATION MOVEMENT

7

STRONGLY PERFORMING BUSINESS: RETAIL

Marked improvement in Retail: strengthening capital returns

• Occupancy up to 98.4%; rents in admin low at 0.2% (0.9% in March 2013)
• Lettings ahead of ERV (3.3% in Q3, 3.8% in H1)
• Continue to outperform on footfall: flat in Q3 vs decline of 3% in broader market

Capital Returns (%) H1 2012/13 H2 2012/13 H1 2013/14 Retail Parks (2.3) (0.8) 1.0 Superstores 0.5 (1.1) 2.1 Shopping Centres (0.3) (1.0) 0.3 Department Stores (0.6) 3.2 6.5 Leisure 0.0 (0.2) 2.0 UK Retail (1.0) (0.6) 1.5

8

CONTINUED RETAIL POLARISATION

Retail Occupancy Retail ERV Growth Indexed March 2010 = 100 %

97.4 98.0 94.7 95.3 88.3 88.9 Mar 13 Sep 13

BL All Retail IPD All Retail IPD Secondary

85 90 95 100 105

BL All Retail IPD All Retail IPD Secondary

Mar 10 Sep 10 Mar 11 Sep 11 Mar 12 Sep 12 Mar 13 Sep 13

9

STRONGLY PERFORMING BUSINESS: OFFICES

Step up in letting activity across investment and developments

• Encouraging interest from a broad range of

new and existing occupiers

• 579,000 sq ft of lettings/extensions year to

date; 7.9% ahead of ERV

• 30 Brock St, Regent’s Place fully let 3 months

after practical completion

– Secures £18m of rent for 16 years

• Leadenhall 52% pre-let

– Latest letting to Servcorp at £72.50psf for 15 year term (c£5psf ahead of ERV)

– RFPs out for a further 80,000 sq ft

10

EXECUTING SMARTLY AND ACCORDING TO PLAN: EQUITY PLACING

• Raised £493m of equity in March 2013 at 550p per share
• Fully deployed ahead of schedule
• £790m acquisition spend including £100m of development opportunities
• NIY of 5.7% on £690m of income producing investments
• £230m of prospective development spend
• Earnings neutral in H1; 0.5p accretive in FY14

Acquisition Spend Prospective Development Spend £m £m Paddington Central 470 180 Ealing Broadway Shopping Centre 143

• Surrey Quays JV buy-out

48 24 Other Acquisitions 126 26 Investments 787 230

11

DEPLOYMENT OF EQUITY PLACING: PADDINGTON CENTRAL

Acquired in July for £470m Fully let yield of 6.2% Significant opportunity to create value from asset management and development Third of vacant office space already let at terms ahead of ERV on acquisition 2.3% valuation increase by September 2013 Initial design and master planning underway at 4 and 5 Kingdom Street development sites

12

DELIVERING RENTAL GROWTH AT REGENT’S PLACE

70 65 60 55 50 45

10/20 Triton St 20 Triton St 10/30 Brock Street

Debenhams

£ PSF

2009/10 2010/11 2011/12 2012/13 2013/14

42.50psf 70psf

Manchester City FC

13

5 BROADGATE EC2

£19.2m ERV 100% pre-let

BROADGATE CIRCLE, EC2

£1.2m ERV; unlet

MARBLE ARCH HOUSE, W1

£3.9m ERV; unlet; 90% resi pre-

sold

COMPLETED

COMPLETING 2010 LONDON DEVELOPMENTS

199 BISHIOPSGATE EC2

£3.5m ERV; 55% let

COMPLETED

10-30 BROCK STREET, NW1

£20.1m ERV; 91% let; 80% resi sold

COMPLETED

10 PORTMAN SQUARE, W1

£9.7m ERV; 51% let

COMPLETED

• 817,000 sq ft completed and 309,000 sq ft pre-lets agreed/under offer this year; now 70% pre-let
• Good demand for Residential; pre-sales secured above valuation; now over 80% pre-sold

LATE 2014 39 VICTORIA STREET, SW1

£4.9m ERV; unlet

EARLY 2015 LEADENDHALL EC3

£18.6m ERV; 52% pre-let

COMPLETED

MID 2014

14

DELIVERING STRONG RETURNS FROM 2010 OFFICE DEVELOPMENT PROGRAMME

• Profit on cost over 40%; IRRs of c30%

65 133 167 216 297 400 192 188 192 175 126 90 Mar 11 Sep 11 Mar 12 Sep 12 Mar 13 Sep 13 Profit Taken Profit to Come

£257m £321m £359m £391m £423m £490m

£m

15

REPLENISHING LONDON DEVELOPMENT PIPELINE

• 2.1m sq ft next phase London and retail development

(recently committed and near-term)

• £1.1bn total development cost
• Estimated profit to come of around £275m

Clarges Estate The Hempel Aldgate Phase 1 Yalding House 4 Kingdom Street Shoreditch Estate 5 Kingdom Street

2014

458,000 sq ft

2015

562,000 sq ft

Now on site

1,044,000 sq ft

NEAR-TERM PIPELINE RECENTLY COMMITTED

16

CONTINUING TO REPOSITION RETAIL PORTFOLIO

• £304m of UK retail assets sold; Basildon Eastgate sold recently for £89m,

ahead of valuation

• £385m bought year to date; SouthGate, Bath and HUT units
• £200m of disposals under offer/in the market

Retail Asset Sales (Year to Date) No of Assets Sale Price Retail Parks 4 £81m Foodstores 5 £29m Shopping Centres 3 £183m High Street 1 £11m Total 13 £304m

17

INVESTING IN THE RIGHT RETAIL LOCATIONS: SOUTHGATE, BATH

430,000sq ft Top 10

Bath as a UK Tourist Destination

18m

Visitors pa

50% acquired for

£101m

18

WELL PLACED AND POSITIVE ABOUT THE FUTURE

• Improving sentiment across key markets

– London to remain strong – Higher rents in offices – Decent read through for development and residential – Improving confidence in retail – Improving outlook for right type of retail assets

• Expect to continue to benefit from our actions

– Increased exposure to London and the South East – Investment in up and coming London locations – Replenished development pipeline with optionality – Increased focus on locally preferred retail assets

19

£0.6bn £1.7bn £1.0bn £0.7bn £0.4bn £1.7bn £0.9bn

FINANCIAL POSITION A CORE STRENGTH OF BRITISH LAND

• Average interest rate of 4.2%
• 75% fixed over 5 years
• Average maturity of 9 years
• £1.3bn of facilities in place for

more than two years

• £710m of new financing

arranged year to date

• £2.7bn of debt raised since

March 2011

• LTV 41.8% at December 2013

(based on September valuations)

Diverse Debt Profile (30 September 2013) Drawn Unsecured Debt-undrawn Debentures & Loan Notes US Private Placements Convertible Bonds Securitisations Other JV & funds debt

20

CLEAR PRIORITIES

Delivering returns from developments Driving growth from standing investments Continued Retail repositioning

• Completing and letting up our 2010 programme
• Starting on site on recently committed developments
• Taking Paddington and Shoreditch through planning
• Selectively adding to the development pipeline
• Focusing on leasing and asset management
• Bedding down new assets such as Ealing Broadway and

Southgate, Bath

• Continued sale of more mature retail assets
• Disciplined acquisitions

1 2 3

APPENDICES

22

MAJOR HOLDINGS

As at 30 September 2013 (excl. developments under construction) BL Share % Sq ft 000’s Rent £m pa1 Occupancy Rate %2 Lease Length yrs3 1 Broadgate, London EC2 50 3,963 177 97.0 7.6 2 Regent's Place, London NW1 100 1,589 67 97.6 9.6 3 Meadowhall Shopping Centre, Sheffield 50 1,374 82 97.4 8.4 4 Sainsbury’s Superstores 52 2,864 67 100.0 15.7 5 Tesco Superstores 50 2,687 61 100.0 14.6 6 Paddington Central 100 609 22 92.9 10.7 7 Teeside Shopping Park, Stockton-on-Tees 100 451 14 100.0 7.5 8 Drake Circus Shopping Centre, Plymouth 100 570 15 98.7 6.7 9 Debenhams, Oxford Street 100 363 10 100.0 25.5 10 Portman Square, W14 100 132 5 51.0 12.5

1 Annualised contracted rent including 100% of Joint Ventures & Funds 2 Includes accommodation under offer or subject to asset management 3 Weighted average to first break 4 Development reached practical completion in May 2013

23

UK PORTFOLIO WEIGHTING

As at 30 September 2013 (%) 2012 2013 (Current) 2013 (Pro forma)¹ Retail parks 24.5 22.9 20.8 Superstores 12.6 11.7 10.9 Shopping centres 17.6 17.3 15.7 Department stores 4.6 4.6 4.1 Leisure 3.0 2.8 2.6 UK Retail 62.3 59.3 54.1 City 17.1 16.5 17.3 West End 18.4 22.0 25.3 Provincial 0.8 0.8 0.7 All Offices 36.3 39.3 43.3 Residential2 1.4 1.4 2.6 All Offices & Residential 37.7 40.7 45.9 UK Total 100.0 100.0 100.0 London & South East 54.2 57.6 61.4 Rest of UK 45.8 42.4 58.6

Table shows UK total, excluding assets held in Europe.

1 Pro forma for committed developments at estimated end value (as determined by the Group’s external valuers) and disposals completed/exchanged post half end 2 Stand-alone residential

24

TOP 20 CUSTOMERS & CUSTOMER SPLIT BY INDUSTRY

As at 30 September 2013 % of Total Rent

Tesco plc 7.3 Sainsbury Group 5.9 Debenhams 5.7 UBS AG 3.2 Home Retail Group 2.7 Kingfisher (B&Q) 2.6 HM Government 2.5 Arcadia Group 2.1 Next plc 2.1 Virgin Active 2.1 Spirit Group 1.6 Alliance Boots 1.5 Herbert Smith 1.4 DSG International 1.3 Marks & Spencer Plc 1.2 Royal Bank of Scotland plc 1.2 Hutchison Whampoa 1.2 Asda Group 1.1 New Look 1.0 House of Fraser 1.0

Customer Split by Industry (%)

15% 18% 19% 7% 8% 14% 11% 2% 6%

Supermarkets Fashion & Beauty General Retail DIY Food / Leisure Banks and Financial Services Professional & Corporate Government Other Businesses

25

UK PORTFOLIO VALUATION BY SECTOR

Group JVs & Funds Total Change %2 As at 30 September 2013 £m £m1 £m H1 Retail parks 1,755 814 2,569 1.1 Superstores 118 1,188 1,306 2.0 Shopping centres 756 1,181 1,937 0.3 Department stores 512 1 513 6.5 Leisure 308 3 311 2.0 UK Retail 3,449 3,187 6,636 1.5 City 57 1,786 1,843 3.6 West End 2,468

• 2,468

6.0 Provincial 85 5 90 4.0 All Offices 2,610 1,791 4,401 5.0 Residential3 160

• 160

2.6 All Offices & Residential 2,770 1,791 4,561 4.9 UK Total 6,219 4,978 11,197 2.8 UK Standing Investments 5,682 4,565 10,247 2.1 UK Developments 537 413 950 8.9

Table shows UK total, excluding assets held in Europe. Total portfolio valuation including Europe of £11.4bn at period end, +2.7% valuation movement.

1 Group’s share of properties in joint ventures and funds 2 Valuation movement during the period (after taking account of capital expenditure) of properties held at the balance sheet date,

including developments (classified by end use), purchases and sales

3 Stand-alone residential

26

UK PORTFOLIO NET YIELDS1

As at 30 September 2013 (excl. developments) EPRA Net Initial Yield % EPRA Topped- Up Net Initial Yield %2 Overall Topped- Up Net Initial Yield%3 Net Reversionary Yield % Net Equivalent Yield % Retail parks 5.5 5.7 5.8 5.8 5.9 Superstores 5.1 5.1 5.1 5.1 5.1 Shopping centres 5.4 5.7 5.7 5.8 5.8 Department stores 5.4 5.4 7.8 4.5 6.0 Leisure 7.6 7.6 8.8 6.0 8.4 UK Retail 5.5 5.6 5.9 5.6 5.8 City 5.3 6.1 6.1 6.0 5.6 West End 3.0 4.8 4.9 5.6 5.4 Provincial 7.1 7.1 7.1 5.7 6.3 All Offices 4.0 5.3 5.4 5.8 5.5 UK Total 5.0 5.5 5.8 5.7 5.7

Table shows UK total, excluding assets held in Europe.

1 Including notional purchaser's costs 2 Including rent contracted from expiry of rent-free periods and fixed uplifts not in lieu of growth 3 Including fixed/minimum uplifts (excluded from EPRA definition)

27

UK LEASE LENGTH AND OCCUPANCY

As at 30 September 2013 Average Lease Length (yrs) Occupancy Rate (%) To Expiry To Break Occupancy Occupancy (underlying)1 Retail parks 9.5 8.6 95.7 97.4 Superstores 15.0 15.0 100.0 100.0 Shopping centres 9.6 8.8 95.6 97.0 Department stores 27.4 24.1 99.5 99.5 Leisure 21.2 21.2 99.8 100.0 UK Retail 12.6 11.8 96.9 98.0 City 9.6 7.7 96.5 97.0 West End 11.6 9.6 89.8 92.8 Provincial 8.8 8.4 100.0 100.0 All Offices 10.6 8.7 92.8 94.7 UK Total 11.9 10.7 95.4 96.8

Table shows UK total, excluding assets held in Europe.

1 Including accommodation under offer or subject to asset management

28

UK ANNUALISED RENT & ESTIMATED VALUE (ERV)

As at 30 September 2013 (excl. Developments) Annualised Rents (Valuation Basis) £m1 ERV £m Average Rent (£psf)2 Group JVs & Funds Total Total Contracted ERV Retail parks 103 46 149 159 23.2 23.8 Superstores 7 63 70 70 21.8 21.7 Shopping centres 50 66 116 123 25.3 26.2 Department stores 30

• 30

25 13.4 11.0 Leisure 25

• 25

20 13.4 10.8 UK Retail 215 175 390 397 21.4 21.3 City 4 77 81 91 47.4 45.7 West End 69

• 69

124 48.5 50.8 Provincial 6

• 6

5 27.1 21.9 All Offices 79 77 156 220 46.8 47.2 Residential3 3

• 3

3

• All Offices & Residential

82 77 159 223

• UK Total

297 252 549 620 25.7 26.0

Table shows UK total, excluding assets held in Europe.

1 Gross rents plus, where rent reviews are outstanding, any increases to ERV (as determined by the Group’s external valuers), less any ground rents payable under head leases,

excludes contracted rent subject to rent free and future uplift

2 Office average rent £psf is based on office space only 3 Stand-alone residential

29

UK RENT SUBJECT TO OPEN MARKET RENT REVIEW

12 months to 30 September (£m) 2014 2015 2016 2017 2018 2014-16 2014-18 Retail parks 18 17 22 16 21 57 94 Superstores 8 23 13 4 4 44 52 Shopping centres 14 17 14 14 12 45 71 Department stores

• 5
• 1

5 6 Leisure

• UK Retail

40 57 54 34 38 151 223 Offices:

• City

29 6 5 12 3 40 55 West End 5 17 7 21 22 29 72 Provincial

• 1

5

• 6

6 All Offices 34 24 17 33 25 75 133 UK Total 74 81 71 67 63 226 356 Potential Uplift at Current ERV 2 3 1

• 6

6

Table shows UK total, excluding assets held in Europe.

30

UK RENT SUBJECT TO LEASE BREAK OR EXPIRY

As at 30 September (£m) 2014 2015 2016 2017 2018 2014-16 2014-18 Retail parks 4 7 7 9 13 18 40 Superstores

• Shopping centres

10 7 12 11 6 29 46 Department stores

• Leisure
• UK Retail

14 14 19 20 19 47 86 City 1 1 19

• 8

21 29 West End 2 4 1 14 9 7 30 Provincial

• All Offices

3 5 20 14 17 28 59 UK Total 17 19 39 34 36 75 145 % of Contracted Rent 2.8% 2.9% 6.1% 5.4% 5.6% 11.8% 22.7% Potential Uplift at Current ERV 2 1

• (1)

(1) 3 1

Table shows UK total, excluding assets held in Europe.

31

ERV RESETTING TO MARKET

Annualised at 30 September (£m pa) 2014 2015 2016 2017 2018 2014-16 2014-18 ERV Expiring – existing portfolio1 20 19 39 33 34 78 145 Speculative developments – City 10 1

• 11

11 Speculative developments – West End 9

• 6
• 15

15 Speculative developments – Retail 3 1

• 4

4 Total Rent Resetting to Market 42 21 45 33 34 108 175 ERV of current vacancies2,3 28 28 Vacant & Income Expiring 136 203

1 Rent is based on ERV, reflecting current valuation 2 Including space under offer of £7m and space in asset management of £1m 3 Including £10m of vacant space at recently completed developments

32

UK CONTRACTED RENTAL INCREASES (CASH FLOW BASIS)

Annualised at 30 September (£m pa) 2014 2015 2016 2017 2018 2014-16 2014-18 Expiry of rent free periods – standing portfolio 38 9 9 1

• 56

57 Expiry of rent free periods – development pre-lets

• 3

21 5 3 24 32 Fixed uplifts (EPRA basis) 1 1

• 1

2 3 Fixed & minimum uplifts in lieu of rental growth 1 1 3 3 2 5 10 Total 40 14 33 9 6 84 102

33

DEVELOPMENT PROGRAMME DRIVING FUTURE PERFORMANCE

• 2010 committed office programme already 68% pre-let,

well ahead of plan

• Recently committed programme; profit on cost 25%
• Total pipeline of 3m sq ft

Sq ft ‘000 Current Dev. Cost £m 2010 Committed Development Programme 2,666 1,335 Recently Committed Programme 1,044 626 Near-term Pipeline 1,020 478 Total recently Committed/Near-term 2,064 1,104 Medium-term Prospects c1,000

34

2010 DEVELOPMENT PROGRAMME

12 months to 30 September (£m) Sector BL Share Sq ft PC Calendar Current Value Cost to Complete ERV Pre-let Resi End Value3 % '000 Year £m £m1,6 £m2 £m £m 10 - 30 Brock St, Regents Place4 Mixed Use 100 505 Completed 360 6 20.1 17.1 115 5 Broadgate Offices 50 710 2015 195 87 19.2 19.2

• The Leadenhall Building

Offices 50 605 2014 195 43 18.6 8.6

• 10 Portman Square

Offices 100 132 Completed 165 5 9.7 4.9

• Marble Arch House5

Mixed Use 100 86 2013 64 9 3.9

• 18

39 Victoria Street Offices 100 93 2013 63 6 4.9

• 199 Bishopsgate

Offices 50 144 Completed 55 1 3.5 1.8

• Whiteley Shopping, Fareham

Retail 50 321 Completed 42 1 2.6 2.4

• Bedford Street

Residential 100 24 2014 26 3

• 27

Glasgow Fort (Leisure) Retail 44 46 Completed 7 2 0.5 0.5

• Total 2010 Programme:

2,666 1,172 163 83.0 54.5 160 Total Committed: 3,710 1,467 494 97.3 58.7 744

Data includes Group's share of properties in Joint Ventures & Funds (except area which is shown at 100%)

1 From 1 October 2013 to practical completion (PC) 2 Estimated headline rental value net of rent payable under head leases (excluding tenant incentives) 3 Residential development of which £120 million completed or exchanged 4 Includes 126,000 sq ft of residential, of which £93 million has now sold and completed during the half 5 Includes 10,000 sq ft of residential 6 Cost to complete excludes notional interest as interest is capitalised individually on each development at our capitalisation rate

35

RECENTLY COMMITTED DEVELOPMENT PROGRAMME

12 months to 30 September (£m) Sector BL Share Sq ft PC Calendar Current Value Cost to Complete ERV Pre-let Resi End Value % '000 Year £m £m1,4 £m2 £m £m The Clarges Estate3 Mixed Use 100 193 2017 170 179 5.6 - 388 Hereford Retail 100 310 2014 35 40 5.5 2.8 - The Hempel Residential 100 40 2015 34 26 -

• 81

Craven Hill Gardens Residential 100 25 2014 33 8 -

• 50

Aldgate Place, Phase 1 Residential 50 221 2016 8 52 -

• 655

Broadgate Circle Offices 50 45 2014 7 8 1.2 -

• Milton Keynes, Kingston Centre

Retail 50 21 2014 4 1 0.3 0.3 - Broughton Park, Chester Retail 44 54 2014 2 5 0.5 0.4 - Meadowhall Surrounding Land Retail 50 22 2015 1 3 0.4 0.4 - Whiteley Leisure, Fareham Retail 50 58 2015 1 6 0.5 0.2 - Fort Kinnaird, Edinburgh Retail 22 55 2015

• 3

0.3 0.1 - Total Recently Committed: 1,044 295 331 14.3 4.2 584

Data includes Group's share of properties in Joint Ventures & Funds (except area which is shown at 100%)

1 From 1 October 2013 to practical completion (PC) 2 Estimated headline rental value net of rent payable under head leases (excluding tenant incentives) 3 Includes 103,000 sq ft of residential 4 Cost to complete excludes notional interest as interest is capitalised individually on each development at our capitalisation rate 5 End value excludes hotel site, receipts of £5 million (BL share) estimated

36

NEAR-TERM AND PROSPECTIVE DEVELOPMENTS

As at 30 September 2013 (£m) BL Share Sq ft Total Cost Status % '000 £m1 Near-term Pipeline The Shoreditch Estate Offices 100 322 165 Pre-submission 5 Kingdom Street Offices 100 2402 154 Consented 4 Kingdom Street Offices 100 145 93 Consented Surrey Quays (Extension) Retail 100 98 24 Consented Yalding House Offices 100 29 22 Pre-submission Glasgow Fort (Retail) Retail 44 112 17 Planning submitted Deepdale, Preston Retail 22 74 3 Consented Total Near-term 1,020 478 Medium-term Pipeline 100 Liverpool Street Offices 50 496 Pre-submission Power Court, Luton Retail 100 158 Pre-submission Aldgate Place, Phase 2 Residential 50 145 Consented Wardrobe Court Residential 100 74 Pre-submission Fort Kinnaird, Edinburgh Retail 22 30 Planning submitted Lancaster Retail 100 n/a Pre-submission Eden Walk Shopping Centre, Kingston Retail 50 n/a Pre-submission Harmsworth Quays Residential 100 n/a Pre-submission Total Medium-term 903

1 Total cost including site value. Excludes notional interest as interest is capitalised individually on each development at our capitalisation rate 2 210,000 sq ft of which is consented

37

ESTIMATED FUTURE DEVELOPMENT RENTAL INCOME (ACCOUNTING BASIS)

PC Gross Rental Income (Accounting Basis)1 £m – 12 mths As at 30 September 2013 Calendar Year Sep 14 Sep 15 Sep 16 Sep 17 Sep 18 Committed Developments 5 Broadgate Q1 2015 Contracted

• 9 18 18

18 The Leadenhall Building Q2 2014 Contracted 2 7 7 7 7 Non-contracted - 4 8 8 8 Broadgate Circle Q4 2014 Non-contracted - - 1 1 1 Marble Arch House Q4 2013 Non-contracted - 3 3 3 3 39 Victoria Street Q4 2013 Non-contracted - 3 4 4 4 Clarges Estate Q2 2017 Non-contracted - - - 3 5 Total Offices Contracted 2 16 25 25 25 Non-contracted - 10 16 19 21 Hereford Q2 2014 Contracted 1 2 2 2 2 Non-contracted - 2 2 2 2 Other Retail Developments Contracted - 1 1 1 1 Non-contracted - - 1 1 1 Total Retail Contracted 1 3 3 3 3 Non-contracted - 2 3 3 3 Total Committed Contracted 3 19 28 28 28 Non-contracted - 12 19 22 24 Recently Completed Developments (letting of vacant space) 199 Bishopsgate Q3 2012 Non-contracted 1 1 1 1 1 10 Portman Square Q2 2013 Non-contracted 1 4 4 4 4 10 - 30 Brock Street Q3 2013 Non-contracted - 2 3 3 3 Total Recently Completed1 Non-contracted 2 7 8 8 8

1 Pre-lets plus valuers estimates of non-contracted rent

38

ESTIMATED FUTURE DEVELOPMENT SPEND AND CAPITALISED INTEREST

PC Prelet ERV Cost to complete £m (excluding notional interest) – 6 mths As at 30 September 2013 Calendar Year £m Mar 14 Sep 14 Mar 15 Sep 15 Mar 16 Sep 16

5 Broadgate 2015 19.2 34 25 28 The Leadenhall Building 2014 8.6 19 11 13 Marble Arch House 2013

• 7 2

39 Victoria Street 2013

• 4 1 1

Bedford Street 2014

• 3 -

Total 2010 Programme: 27.8 67 39 42

• The Clarges Estate

2017

• 3 22 33 35 29

23 Hereford 2014 2.8 17 20 3

• The Hempel

2015 n/a 4 6 7 5 2 1 Craven Hill Gardens 2014 n/a 7 1 - Aldgate Place, Phase 1 2016 n/a 8 5 8 9 3 6 Broadgate Circle 2014

• 4 3 1

Milton Keynes, Kingston Centre 2014 0.3 1 - Broughton Park, Chester 2014 0.4 1 4 Meadowhall Surrounding Land 2015 0.4

• - 2 -

Whiteley Leisure, Fareham 2015 0.2

• 1 3 2

Fort Kinnaird, Edinburgh 2015 0.1 2 1 Total Recently Committed: 4.2 47 63 57 51 34 30 Total Committed: 32.0 114 102 99 51 34 30 Total Near-term 24 25 33 64 77 79 Indicative Interest Capitalised on above at attributable rates1 10 10 9 8 10 11

1 Financing costs are capitalised on qualifying expenditure for committed and near term developments; the rate is at 3% for

Leadenhall and 4% for all other developments

39

• 2

4 6 8 10 12 14 16 90 91 92 93 94 95 96 97 98 99 01 02 03 04 05 06 07 08 09 10 11 12 13 14 15 16 17 18 19 Completions U/C pre-let U/C speculative 10 yr average Grade A take-up

Central London Development Completions

SHORTAGE OF QUALITY SPACE

m sq ft

Source: CBRE

40

Rental Growth Driven by Imbalance between Supply and Demand

OFFICE MARKET RENTAL OUTLOOK

Source: CBRE (historic) and Average Agents' Consensus (including PMA)

Actual Forecast

£ psf

• 20

40 60 80 100 120 140

1990 1991 1993 1994 1996 1997 1999 2000 2002 2003 2005 2006 2008 2009 2011 2012 2014 2015 2017

West End City

41

Marble Arch Shoreditch Leadenhall Broadgate

DELIVERING FUTURE GROWTH – FOCUS ON LONDON AND THE SOUTH EAST

Continue to move West Transport inter-changes London residential Up and coming areas Estates and mixed use schemes Development

Ealing Broadway Clarges Eden Walk Surrey Quays & Harmsworth Quays Aldgate

Recent acquisitions BL assets/concentration Paddington Central

Paddington Central Regents Place

42

CLARGES ESTATE, MAYFAIR

43

REGENT’S PLACE

44

Key: 200 residential units sold on long leases; retail at ground floor 88,000 sq ft retail (16 units) around Sheldon Square Development sites (355,000 sq ft) + Crossrail box below (80,000 sq ft) Multi-let offices 268,000 sq ft Multi-let offices 143,000 sq ft 206 room 4-star hotel (111,000 sq ft) BL ownership New Hammersmith & City line station and access to Crossrail Non BL ownership

FIVE KINGDOM STREET

FOUR KINGDOM STREET

ONE KINGDOM STREET ONE SHELDON SQUARE

Non BL

• wnership

PADDINGTON CENTRAL

45

BROADGATE

46

INCOME STATEMENT

HY to 30 September H1 2012/13 H1 2013/14 Change Net Rental Income (£m) 272 275 1.1% Fees & Other Income (£m) 8 7 Administrative Expenses (£m) (39) (38) Net Finance Costs (£m) (104) (98) Underlying PBT (£m) 137 146 +6.6% Underlying EPS (p) 15.2p 14.5p (4.6)%

47

UK GROSS RENTAL INCOME1 – SECTORAL

HY to 30 Sep 2013 Annualised as at 30 Sep 2013 (Accounting Basis) £m Group JVs & Funds Total Group JVs & Funds Total Retail parks 52 21 73 102 45 147 Superstores 5 32 37 7 63 71 Shopping centres 27 30 57 50 64 114 Department stores 16

• 16

34

• 34

Leisure 14

• 14

28

• 28

UK Retail 114 83 197 221 172 394 City 3 42 45 4 82 86 West End 35

• 35

84

• 84

Provincial 3

• 3

6

• 6

All Offices 41 42 83 94 82 176 Residential2 2

• 2

3

• 3

All Offices & Residential 43 42 85 97 82 179 UK Total 157 125 282 318 254 573

Table shows UK total, excluding assets held in Europe.

1 Gross rental income will differ from annualised rents due to accounting adjustments for fixed & minimum contracted rental uplifts and lease incentives 2 Stand-alone residential

48

A PLATFORM FOR FUTURE INCOME GROWTH

Annualised Gross Rents Cash Flow Basis £m Accounting Basis £m Current Passing Rent 5495 5731 Expiry of Rent-free Periods 571 Fixed, Minimum Uplifts 13 2010 Non-Completed Developments Pre-let 28 24 Recently Committed Developments Pre-let 4 4 Total Contracted 651 601 Developments – 2010 Committed Developments to let2 29 23 Developments – Recently Committed/Near-term to let2 46 39 Investments – RPI, Letting of Vacancies etc. 2,3,4 30 28 Potential Rent in 5 Years 756 691 Increase 38% 21%

Table shows UK total, excluding assets held in Europe.

1 Rent includes £27m of completed 2010 Programme Developments on a cash flow basis, £23m on an accounting basis 2

Valuers estimate of non-contracted rents

3 Illustrative impact based on RPI of 2.5% pa 4 Includes RPI, open market rent reviews, re-letting of expiries and the letting of non-development vacant space 5 Gross rents plus, where rent reviews are outstanding, any increase to ERV (as determined by the Group’s external valuers), less any ground rents

payable under head leases

49

RECONCILIATION OF EPRA NAV & NNNAV

As at 31 Mar 13 30 Sep 13 £m Pence £m Pence Balance Sheet (IFRS) Net Assets 5,687 568 6,106 604 Deferred tax arising on revaluation movements 14 1 5

• Mark to market on effective cash flow hedges and related debt

adjustments 198 20 138 14 Adjust to fully diluted on exercise of share options 58 6 37 4 Surplus on trading properties 10 1 12 1 EPRA NAV 5,967 596 6,298 623 Deferred tax arising on revaluation movements (14) (1) (5) (1) Mark to market of debt and derivatives (431) (43) (277) (27) EPRA NNNAV 5,522 552 6,016 595

50

STRENGTH OF BALANCE SHEET METRICS

Proportionally Consolidated 31 Mar 2013 30 Sep 2013 Loan to Value (LTV) 40.2% 42.3% Average Interest Rate 4.6% 4.2% Interest Cover 2.3x 2.5x Average Maturity of Drawn Debt (years) 9.9 8.9* Group 31 Mar 2013 30 Sep 2013 Loan to Value (LTV) 24.2% 28.5% Average Interest Rate 4.4% 3.7% Interest Cover 2.8x 3.3x

* Pro forma for drawing down £200m from 2014 USPPs

51

£m

DEBT MATURITY – GROUP1

1 Pro forma for the drawdown of the £200m 2014 USPPs and repayment of £200m of Drawn Facilities

Year to 30 September 200 400 600 800 1,000

2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036 2037

Debentures & Loan Notes Private Placements Convertible Bonds

52

£m

DEBT MATURITY – JOINT VENTURES AND FUNDS1

1 At British Land share

200 400 600 800 1,000 2014 2015 2016 2017 2018 2019-2023 2024-2036

JVs - Securitisations JVs - Bank Drawn Funds - Bank Drawn JVs - Bank Undrawn Funds - Bank Undrawn

Year to 30 September

53

GROSS AND NET DEBT RECONCILIATION

As at 30 September 2013 (£m) Group JVs & Funds Total Gross debt (principal value) 2,687 2,507 5,194 IFRS Adjustments: Issue costs and premia (7) (11) (18) Fair value hedges 61

• 61

Other items 20

• 20

Gross Debt (IFRS basis) 2,761 2,496 5,257 Market value of derivatives 29 94 123 Cash & liquid investments (112) (210) (322) Net debt (IFRS basis) 2,678 2,380 5,058 EPRA Adjustments: Mark to market on effective cash flow hedges and related debt adjustments (50) (88) (138) Net Debt (EPRA Basis) 2,628 2,292 4,920

54

Yield gap %

UK PROPERTY MARKET- YIELD GAP VS 10 YEAR GILTS

(5) (3) (1) 1 3 5 2 4 6 8 10 12 1990 1998 2005 2012 UK 10 Year Gilt Yield IPD All Property Net Initial Yield

%

55

NUMBER OF SHARES

Number of shares (m) Mar 13 Sep 13 Basic Weighted Average 895 993 Period End 986 999 Diluted Weighted Average 901 997 Period End 1,001 1,011