Investor Presentation HY 2020 Our Investment Case 3 4 1 2 Our - - PowerPoint PPT Presentation

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Investor Presentation HY 2020 Our Investment Case 3 4 1 2 Our - - PowerPoint PPT Presentation

Investor Presentation HY 2020 Our Investment Case 3 4 1 2 Our d istinctiv e The sca le a nd A w ell-p ositioned Our op era tiona l business m od el & qua lity of our d ev elop m ent exp ertise & clea r stra tegy p ortfolio


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SLIDE 1

Investor Presentation

HY 2020

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1

Our d istinctiv e business m od el & clea r stra tegy

Increasing our focus

  • n mixed use places

Growing London campuses and Residential and refining Retail

The sca le a nd qua lity of our p ortfolio

22.5m sq ft of high quality assets Underpinned by our resilient balance sheet and financial strength

A w ell-p ositioned d ev elop m ent p ip eline

Development pipeline aligned to strategy Provides visibility

  • n future earnings

Our op era tiona l exp ertise & custom er insight

Expertise in managing and leasing

  • ur assets based on
  • ur customer insight

Drives incremental value for stakeholders

Our Investment Case 1 2 3 4

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2

British Land at a glance

Plym outh

£15.4 bn

Assets under management

£11.7bn

Of which we own

£521m

Annualised rent

22.5 m sq ft

Floor space

97%

Occupancy

Canada Water

As at September 2019

1FA, Broadgate

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3

£ 11.7bn

(BL share)

Solus Retail (5%) London Campuses (45%) Residential & Canada Water (4%) Multi-let Retail (26%) Standalone offices (10%) Retail – London & SE (10%)

72 %

London & South East

A diverse, high quality portfolio

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4

Our unique London campuses

78 %

£8 .6 bn

Assets under management

£6.4 bn

Of which we own

£20 5 m

Annualised rent

6.6 m sq ft

Floor space

97%

Occupancy

As at September 2019

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Canada Water

53 acre m ixed use opportunity in Central London

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Why mixed use?

Flexible Affordable Attractive to skilled employees Well connected Aligned to their brand Tech enabled Close to complementary businesses

Occupiers

want space which is…

Well connected Safe and promotes wellbeing Located in vibrant neighbourhoods Sustainable and eco friendly Close to retail, leisure and dining options Supported by excellent facilities and services Has a range of workspace including collaborative and quiet

Em ployees

want space which is… World class, sustainable and smart buildings Attractive, vibrant and safe public space

+

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We have created a distinctive advantage in mixed use

  • Mixed use campus development

– 1 Broadgate, 2-3 Finsbury Avenue, 5 Kingdom Street near & medium term – 1.3m sq ft committed developments – Further opportunities Norton Folgate, Ealing, Kingston, Woolwich, Canada Water

  • Scale

– Control of groundscape eg. Eataly, Exchange Park

  • Operational platform

– Expertise across development, planning, marketing, data and tech, sustainability – Combined asset management team with dedicated retail and offices function

  • Natural partner for complex schemes

– SWFs, property specialists, Government

Broadgate

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De-risked development pipeline focused on campuses

1 Finsbury Avenue 287,000 sq ft PC’d Q1 2019

Recently Completed & Committed Developments

1 Broadgate 532,000 sq ft 135 Bishopsgate 335,000 sq ft Completion Q1 2020

Near term pipeline Medium term pipeline

  • excl. Canada Water

Norton Folgate 335,000 sq ft

  • ERV of £63m
  • 87% pre-let or under offer
  • ERV of £48m
  • All schemes consented

1 Triton Square 366,000 sq ft Completion Q4 2020 Aldgate Place, Phase 2 146,000 sq ft

Medium term pipeline

  • excl. Canada Water

Gateway Building 105,000 sq ft 2-3 Finsbury Avenue 563,000 sq ft 5 Kingdom Street 429,000 sq ft Meadowhall Leisure 333,000 sq ft Eden Walk, Kingston 533,000 sq ft 100 Liverpool Street 520,000 sq ft Completion Q1 2020

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De-risked developments providing future income

Pence per share

0.0 0.5 1.0 1.5 2.0 2.5 3.0 3.5 4.0 4.5 5.0 FY20 FY21 FY22 FY23

Committed figures include 1 Finsbury Avenue which recently completed

4.6p annual EPS accretion once committed developments fully let

£m ERV

10 20 30 40 50 60 70 Committed Near term

Pre-let or under offer

8 7%

Pre-let or und er offer a cross com m itted schem es

To let

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Current Locations New & Forthcoming Locations

Storey roll out

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Building out Storey

Leasing and Asset Management Finance and Legal Development HR and Other Support Services Group Technology

Proposition & Operating Model Landlord

Services

Select and plan space Fit out and Furnish Channel and pricing strategy Marketing & leasing Technology Account management Storey and FM services Customer

  • nboarding

Personalisation Technology installation

  • Operational Stats
  • c.30% premium to traditional

lettings

  • Stabilised portfolio 81% let or

under offer

  • 24 months average lease

length

  • Good progress since 2017 launch
  • 297,000 sq ft operational
  • Open on all 3 campuses
  • Further 91,700 sq ft identified

How British Land supports Storey’s

  • perating platform
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Our Retail portfolio is well positioned to meet both consumer and retailer demands

Source: CACI Retail Footprint 2019, BL Insight team Note that population reach includes Broadgate

BL centres BL asset catchments

Potential to reach

c.50 %

  • f the population

Annual footfall of

30 2m

Average rent to sales ratio

9%

Occupancy cost ratio

14%

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Retail sales focused on assets that do not meet our criteria

Rental growth potential The right characteristics to drive income from rents and commercialisation Developm ent potential Potential to grow and/or reconfigure the asset to meet future requirements Mixed-use potential Potential to create a true mixed- use community including retail, leisure, office and residential uses Fulfilm ent potential Potential to become a last-mile fulfilment hub, considering potential to develop and quality of local infrastructure Population trends Large population in catchment, with growth potential Quality of dem ographics The right number of the right type of demographic groups Econom ic health Above average income and employment levels in the catchment Com petition Quantum of retail space in the local area; strong competitive position relative to potential competitors Critical Mass Right size scheme – large enough for draw, but small enough to drive demand:supply tension

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7.3 m sq ft

Medium term pipeline

  • pportunities

Loca ted a t m ixed use a ssets:

  • 2-3 Finsbury Avenue, 5 Kingdom Street,

Gateway Building, Ealing, Eden Walk

  • £260m book value
  • £6m current rent roll
  • c.£80m potential ERV
  • 3 out of 5 schemes already consented

Sta nd a lone:

  • Meadowhall Leisure
  • Flexibility over progression options
  • Consented scheme

Ca na d a W a ter

  • Resolution to grant outline planning received

September 2019

  • £347m book value
  • £8m current rent roll

Significant medium-term opportunities

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Building a London focused, increasingly mixed use business

March 2010 Current

Indicative business split 5+ years

66% 41% 30 -35%

Retail Campus-focused Offices Storey Residential

33% 55% 5% 10 % 50 -55%

  • London focused: over 70% of group
  • Smaller, more focused Retail
  • Meaningful Residential exposure
  • Right balance of flexible and core workspace
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Key messages from HY results

Good p rogress on stra tegy

  • Resolution to grant planning at

Canada Water

  • £236m retail sales

Ma na ging ca p ita l w ell

  • £125m buyback completed
  • Well positioned with debt low

Pip eline of a ttra ctiv e op p ortunities

  • 1m sq ft near term pipeline including

Norton Folgate and 1 Broadgate

  • 7.3m sq ft medium term pipeline,

principally Canada Water

1 2 3 4

Continued op era tiona l resilience

  • 1.3m sq ft leasing activity
  • Portfolio 97% full
  • Developments 87% pre let or

under offer

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Outlook

  • Retail

– Occupational market to remain challenging – Investment market will be tough, but growing evidence that buyers returning to the market

  • London

– Optimistic that current momentum will continue; function of supply as well as quality and location of our space – Benefitting from our 7.3m sq ft medium term pipeline – Investment market would benefit from greater macro stability

10 0 Liverpool Street, Broadgate

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Half year results

6 m onths ended Septem ber ‘19

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Results Overview

Und erly ing ea rnings p er sha re

  • 6.4% v s H1 19

EPRA Net Asset Va lue p er sha re

  • 5.4% v s Ma rch 19

Portfolio v a lua tion

  • 4.3% v s Ma rch 19

(Reta il -10 .7%, Offices +0 .4%) Loa n to v a lue Incl: +120 bp s v a l’n d eclines, +110 bp s d ev elop m ent sp end Com m itted d ev elop m ents let or und er offer 120 ,0 0 0 sq ft lettings in p eriod Com m itted d ev elop m ents EPS a ccretion Prim a rily FY21 & FY22

16.1p 8 56 p

£11.7bn

30 .8 % 8 7% 4.6 p

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Underlying earnings per share

17.2 16.1 16.1 (1.6) 0.5 (0.5) 0.1 0.4

HY 2019 Net divestment and developments Share buybacks

  • Excl. impact of

capital activity Retail like-for- like income Offices like-for- like income Financing activities and

  • ther

HY 2020

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21

Net rental income

243 267 (20) 2 (5) 1 (2)

HY 2019 Sales Acquisitions Retail like-for- like income Offices like-for- like income Developments HY 2020

£m

1 Like for like rental growth is stated excluding the impact of surrender premia

Like for like

  • 3.2%

Like for like +1.1%

1 1

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0.0 1.0 2.0 3.0 4.0 5.0 6.0 7.0 Q1 FY18 Q2 FY18 Q3 FY18 Q4 FY18 Q1 FY19 Q2 FY19 Q3 FY19 Q4 FY19 Q1 FY20 Q2 FY20

Admins - stores closing CVAs - stores closing CVAs - reduced rents Annualised contracted rent impact by Quarter (£’m)

Tw o third s of store closures since Ap ril 20 17 a re either re-let, und er offer or in negotia tion 12 m ths: £ 8 m 12 m ths: £ 14 m

Incl. Debenhams and Arcadia

CVAs & Admins

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Income statement

6 months to 30 September H1 2019 H1 2020 Change % Net rental income (£m) 267 243 (9.0%) Fees & other income (£m) 6 7 16.7% Administrative expenses (£m) (42) (41) (2.4%) Net finance costs (£m) (62) (57) (8.1%) Underlying Profit (£m) 169 152 (10.1%) Underlying earnings per share (p) 17.2 16.1 (6.4%) Dividend per share (p) 15.50 15.97 3.0%

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Valuation performance

Va lua tion £ m Va lua tion m ov em ent Yield m ov em ent ERV m ov em ent Total 11,723 +17bps

  • 2.3%

Offices 6,439 +0bps +0.9% Retail 4,790 +37bps

  • 4.8%

Residential 147 Canada Water 347

x 0.4% (4.3%) (10.7%) (2.1%) 12.4%

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Lower investment volumes recently; significant capital waiting on the sidelines pending further clarity on Brexit process Occupational demand remains strong; prime rents at c.£70psf in the City and c.£110psf in the West End1 Continued strong leasing performance across newly developed and existing space

Dev elop m ents £ 1.0 bn (+4.9%)

Office valuation performance

Sta nd ing Portfolio £ 5.4bn (-0 .4%) +0.9% ERV growth

1 As published by Cushman & Wakefield

0bps yield shift £125m spend in period £48m valuation uplift

+0 .4 %

Offices H1 valuation m ovem ent

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  • 500

1,000 1,500 2,000 2,500 3,000 3,500 More than 0% 0% to -10%

  • 10% to -20%

More than -20% Local Multi-let Regional Multi-let Superstores Leisure Solus Department Stores

September ’19 Valuations (£’m)

% Va lua tion Mov em ent in HY20

  • 10 .7%

Retail H1 valuation m ovem ent

Retail Valuation Movements

  • Incl. Ealing

Broadway, Kingston Centre, Nugent Orpington

  • Incl. Meadowhall,

Glasgow Fort, Teesside Stockton, New Mersey Speke

  • Incl. Drake Circus

Plymouth, Bath Southgate

  • Incl. Orbital Swindon,

Beaumont Leicester

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EPRA net asset value

905p 856 856p (55p) 16p (15p) 8p (1p)

March 19 Valuation performance Underlying Profit Dividends Share buyback Financing activity Other Sept 19

(2p)

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Strength of debt metrics

Proportionally Consolidated 31 Mar 2019 30 Sept 2019 Loan to value (LTV) 28.1% 30.8% Weighted Average Interest Rate 2.9% 2.7% Interest Cover 3.8x 3.7x Available Undrawn Facilities £1.5bn £1.4bn Weighted Average Drawn Debt Maturity 8.1yrs 7.9yrs Senior unsecured credit rating (Fitch) A A

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Leasing & Asset Management

HY20

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High quality Ready to fit Fitted

Broad and flexible leasing offer

Dev elop m ents Existing Sp a ce

&

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Leasing well on existing as well as new space

Monzo

122,000 sq ft at Broadwalk House, Broadgate

338 Euston Road, Regent’s Place

New tech sector occupier

45,000 sq ft at 338 Euston Road, Regent’s Place

Broadwalk House, Broadgate

671,0 0 0 sq ft

11.1% vs ERV

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Storey

  • Fully fitted, serviced and managed space

– All inclusive basis – Ability to brand own space – Targets scale ups not start ups; average headcount c. 50 – British Land-owned buildings

  • Evolving our offer

– Storey Club – launched at Paddington Central and planned for 100 Liverpool Street – Standalone space – Orsman Road launching early 2020

  • Good progress since launch

– 297,000 sq ft operational; 91,700 sq ft identified – Supporting broader leasing success

Storey Club, Paddington

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Smart & Sustainable offices

  • Sustainability an important theme in

leasing discussions

– Occupiers focused on minimising carbon footprint – Reflects employee, customer and shareholder pressure

  • Our long term focus on Sustainability is

an important advantage

– 92% of developments BREEAM Excellent or Very Good

  • 1 Triton Square credentials

– 35,600 tonnes of embodied carbon saved by retaining the structure – BREEAM Outstanding

  • Smart features can support Sustainability

– Piloting technology to deliver a more efficient working environment for an occupier

1 Triton Square

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Retail leasing overview

Com m ercia lisa tion & ca r p a rk incom e

  • 70k sq ft
  • £0.8m headline rent
  • 3 years average lease length
  • 1 mth average incentive

+1%

vs previous passing rent1

Assets to be d ev elop ed

  • 80k sq ft
  • £0.7m headline rent
  • 3 years average lease length
  • 7 mths average incentive

Ra tes m itiga tion

  • 95k sq ft
  • £0.2m headline rent
  • 9 mths average lease length

Tem p ora ry lea sing

  • 130k sq ft
  • £2.2m headline rent
  • 20% below passing rent
  • 1 year average lease length
  • No incentive given

Long term lea sing

  • 230k sq ft
  • £4.8m headline rent
  • 15% ahead of passing rent
  • 3.5% ahead of ERVs
  • 7.0 years average lease length
  • 6 mths average incentive

1 Excludes assets to be developed, rates mitigation and commercialisation & car park income

96%

Retail occupancy

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Operational outperformance in a challenging retail market

  • 605,000 sq ft leasing activity

– Leasing deals 1% ahead of previous passing rent1 – 3.5% ahead of ERV

  • Pragmatic approach to leasing

– Focused on maintaining occupancy – Willing to accept lower rents or shorter leases

  • Supported operational outperformance

– Footfall down 0.1%, 440 bps ahead of benchmark – LFL sales +0.5%, 420 bps ahead of benchmark

The Barcode, Plym outh

1 Excludes assets to be developed, rates mitigation and commercialisation & car park income

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A commercial approach to support operational performance

Mayflower, Basildon

  • 20,500 sq ft Fabb Sofas returned

– Re-let to Lidl; maintaining full occupancy – 19% discount to previous rent – 25 year lease

  • Opportunity to respond to customer needs

– Convenience-led missions dominate with grocery increasing

Giltbrook, Nottingham

Giltbrook, Nottingham

  • 30,000 sq ft Fabb Sofas returned

– 60,000 sq ft re-let to M&S; 30,000 sq ft added – 15% discount to previous rent

  • Excellent fit with the M&S Store Transformation Plan

– Large catchment c. 1m people – Family friendly mix, including leisure and F&B

  • “Stores remain fundamental to how we serve customers”

Mayflower, Basildon

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Major milestone achieved at Canada Water

  • Resolution to grant outline planning

from Southwark Council, covering:

– 53 acre masterplan – Detailed consent on the first three buildings, covering 576,000 sq ft

  • Earliest start on site mid next year
  • Next planning steps:

– Completion of S106 agreement – Formal issue of planning – Headlease drawdown

Canada Water

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Canada Water – Illustrative Scheme

Ma sterp la n First d eta iled p lots Resolution to grant planning received 30th September 2019 Total NIA (sq ft) 5.0m 0.6m Commercial (sq ft) 2.1m 0.3m Retail & Leisure (sq ft) 0.7m 0.1m New Homes (units) 3,000 265

A1 A2 K1 L1 H1 H2 H3 L2 D1 D2 M1

Note: The figures above are indicative and are likely to change as development plans evolve

Buildings highlighted above reflect indicative First Major Scheme, totaling 1.9m sq ft

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First detailed plots

Plot A1 – residential & workspace A2 – workspace & leisure K1 – residential

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2010 2011 2012 2014 2015 2016 2017 2018 2019 2013 2020

Canada Water: key milestones and timeline

Earliest possible start on site Acquisition of 50% of Surrey Quays shopping centre 23 acres Conditional agreement to acquire Printworks 14.5 acres Remaining 50% of Surrey Quays shopping centre acquired 23 acres Surrey Quays leisure park acquired 8.5 acres MDA signed with Southwark Council Planning application submitted Resolution to grant planning Outline masterplan Detailed first phase

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2020 Sustainability Targets: FY19 performance

FY19 2020 Target

Futureproofing

Capital efficiency

92% 100% developments on track to achieve BREEAM Excellent/Very Good 44% 55% improvement in energy efficiency vs 2009 baseline 96% 100% of electricity to come from renewable sources Achieved: 64% 55% improvement in carbon efficiency vs 2009 baseline 10% 15% reduction capital carbon emissions vs concept (embodied carbon) In progress Trial 3 visible interventions to improve local air quality 0.4% to landfill Zero waste to landfill

Skills and

  • pportunity

Expert people

1,232 1,700 people supported into employment (cumulative) 2.4% 3% of BL workforce and priority tier 1 and 2 suppliers to be apprentices 53% 100% strategic suppliers signed up to new code of conduct In progress Pilot a Living Wage Zone at a London campus 100% / 66% 100% BL and supplier workforce at managed assets paid Living Wage

Wellbeing

Customer orientation

On track Achieve WELL Certification on 100 Liverpool Street In progress Establish and pilot wellbeing specification for retail developments Achieved Define and trial a measurement of office productivity Achieved Research & publish on how development design impacts public health

Community

Right places

92% Fully implement Local Charter at staffed assets and major developments 17% 20% employee skills-based volunteering 81% 90% employee volunteering

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FY 20 19 p erform a nce

Sustainability Indices Performance

MSCI disclaimer available http://www.britishland.com/sustainability/performance/benchmarks

Global Real Estate Sustainability Benchmark 2019: Green star for 10th year FTSE4Good 2019: 98th percentile Sustainalytics ESG Ratings 2019: 96th percentile Carbon Disclosure Project 2019: scores pending 2018: A- EPRA Sustainability Reporting Awards 2019: Gold for 8th year MSCI ESG Ratings 2019: AAA rating

Other b enchm a rks a nd a w a rd s

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Appendices

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British Land Footfall movement vs Benchmark1

% YoY BL Footfall Benchmark Outperformance (bps)

1 ShopperTrak UK National Index

3.2 0.0 0.3

  • 0.9
  • 0.1
  • 1.4
  • 2.4
  • 3.1
  • 3.2
  • 4.5

FY16 FY17 FY18 FY19 H1 20 +460 +240 +340 +230 +440

Continuing to outperform on key operational metrics

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British Land LfL sales movement vs Benchmark1

% YoY BL LfL Sales Benchmark Outperformance (bps)

1 BRC KPMG In-Store LFL Non-Food Index

+260 +220 +130 +160 +420

Continuing to outperform on key operational metrics

2.4 0.0

  • 1.6
  • 1.5

0.5

  • 0.2
  • 2.2
  • 2.9
  • 3.1
  • 3.7

FY16 FY17 FY18 FY19 H1 20

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BL footfall performance vs benchmark

British Land UK Market (ShopperTrak UK National Index) Jan-10 = 100 75 80 85 90 95 100 105 110 115

Jan-11 Jan-10 Jan-18 Jan-12 Jan-19 Jan-13 Jul-12 Jul-10 Jul-13 Jan-14 Jul-15 Jan-15 Jul-16 Jul-18 Jul-14 Jan-16 Jul-11 Jan-17 Jul-17 Jul-19

BL Index Tyco (formerly Experian) Inde

Outperformance for 6m to Sep 2019

+4 4 0 bps

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Occupancy Cost Ratio

0% 5% 10% 15% 20% BL UK Peers

Data updated to September 2019 Occupancy cost ratio defined as the sum of total rent, service charge, rates, insurance as a proportion of retailer sales (net of VAT). Peers include Landsec, Hammerson and intu. Rent to sales ratio defined as total rent as a proportion of retailer sales (net of VAT). Peers include Landsec and Hammerson. Both metrics based on all stores, including MSUs and anchors.

Rent to Sales Ratio

0% 5% 10% 15% BL UK Peers

Our portfolio is relatively affordable to our occupiers

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Total Retail sales growth Online penetration Physical Retail sales trajectory

+

Shrinkage of floorspace

=

Sales per sq ft growth

Long term drivers of trading densities 10 yr view

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Total Retail Sales grow th (pa) Online penetration Im p lied long run p hy sica l sa les grow th (p a ) Optimistic 4.5% 50 % 35% Current 3.3%

10yr historic CAGR

19% 2.5%

10yr historic CAGR

  • 2%

2% Pessimistic 2.5%

3.3%

Historic g row th

4.3%

CACI

2.6%

Eurom onitor Pa ssp ort

4.2%

Oxford Econom ics

35% 32%

Extra p ola ted Historic g row th CACI

Sources: ONS (historic), Euromonitor Passport (data to 2023), Oxford Economics (data to 2029), CACI (data to 2026). Figures all nominal and represent total retail sales (includes food and groceries, excludes fuel)

We expect online to absorb the majority of retail sales growth… 10 yr view

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Pessimistic Optimistic

Source: JLL (data to 2026). Figures all nominal and represent total retail sales (includes food and groceries, excludes fuel)

Im p lied long run p hy sica l sa les grow th (p a )

  • 2%

2% Shrinkage of Floorspace (pa) Ind ustry sa les p er sq . ft grow th (p a )

  • 2%
  • 1%

+4%

  • 1%
  • 1%

JLL store closures p red iction

  • 1.5%

JLL floorsp a ce d ecrea se p red iction

10 yr view … however with shrinking floorspace, industry trading densities likely to grow

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Ind ustry sa les p er sq . ft grow th (p a ) British La nd historic LfL sa les outp erform a nce (p a )

  • 1%

+4%

+190 bp s

FY16-FY19

  • utperform ance

Pessimistic Optimistic Im p lied British La nd p ortfolio sa les p er sq . ft (p a ) +1% +6%

… and we expect to continue to outperform 10 yr view

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Multi-let Retail assets

Southgate, Bath Broughton, Chester1 Fort Kinnaird, Edinburgh1 Glasgow Fort1

  • St. Stephen’s, Hull

Eden Walk, Kingston Drake Circus, Plymouth Meadowhall, Sheffield New Mersey, Speke1 Teesside, Stockton Mayflower, Basildon Inverness1 Nugent, Orpington Cornerhouse, Barrow The Woolwich Estate Botley Road, Oxford Hindpool, Barrow Beaumont, Leicester Deepdale, Preston1 Woodfields, Bury Valentine, Lincoln1 Queens, Stafford1 Forster Square, Bradford Mostyn Champneys, Llandudno1 Orbital, Swindon Tollgate, Colchester

  • St. Peter’s, Mansfield

Royal Victoria Place, Tunbridge Wells Prospect Place, Dartford1 Kingston Centre, Milton Keynes Giltbrook, Nottingham Crown Point, Denton Whiteley, Fareham Serpentine Green, Peterborough Wheatley, Doncaster Ealing Broadway Lion, Woking Crown Wharf, Walsall1 Old Market, Hereford Studlands, Newmarket Harlech, Newport Elk Mill, Oldham

1 Assets held within Hercules Unit Trust or its subsidiaries and joint ventures

Regiona l Loca l

Attracting visitors from a wide catchment for a planned trip Fitting into the daily life of local communities

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Major retail property holdings

As at 30 September 2019 BL Share % Sq ft 000’s Rent (100%) £m pa1,4 Occupancy Rate %2,4 Lease Length yrs3,4 1 Meadowhall, Sheffield 50 1,500 85 97.4 5.2 2 Drake's Circus, Plymouth 100 1,082 19 96.0 5.6 3 Glasgow Fort 78 510 21 98.0 5.8 4 Ealing Broadway 100 540 15 92.7 4.3 5 Teesside, Stockton 100 569 16 94.6 4.3 6 Speke, New Mersey 68 502 14 92.8 6.1 7 Kingston Centre, Milton Keynes 100 380 9 99.7 6.4 8 Serpentine Green, Peterborough 100 337 9 99.4 7.3 9

  • St. Stephen’s, Hull

100 552 10 98.1 4.1 10 Fort Kinnaird, Edinburgh 39 560 18 94.1 5.3

1 Annualised EPRA contracted rent including 100% of Joint Ventures & Funds 2 Including accommodation under offer or subject to asset management 3 Weighted average to first break 4 Excludes committed and near term developments

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Broadgate Campus

2 FA & 3 FA

  • 2FA & 3FA - Innovation cluster inc. 51k sq ft
  • f Storey space
  • 3FA – UBS surrendered lease in Jan 2018. ‘Light

touch’ refurb completed

  • Current size: 189k sq ft
  • Potential size: 563k sq ft

1 FA

  • Pre-let 113k sq ft to Mimecast, 30k sq ft to Product

Madness, 11k sq ft to Everyman Cinemas, 30k sq ft to Workday

  • 73k sq ft to be Storey space
  • Size: 287k sq ft
  • PC’d Q1 2019

135 Bishopsgate

  • 97% let or under offer
  • Pre-let 123k sq ft to TP ICAP,

148k sq ft to McCann, 44k sq ft to Eataly

  • Size: 335k sq ft
  • Completion: Q1 2020

1 Broadgate

  • Current size: 330k sq ft
  • Potential size: 532k sq ft
  • Planning permission secured March 2019

100 Liverpool Street

  • Pre-let 184k sq ft to SMBCE, 71k sq ft to Milbank

LLP, 60k sq ft to BMO, 40k sq ft to Peel Hunt

  • Current size: 380k sq ft
  • Redevelopment: 520k sq ft
  • Completion: Q1 2020

8 3% of Broadgate com m itted developm ents pre-let or under offer

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55

Paddington Central Campus

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56

Regent’s Place Campus

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57

Top 20 occupiers & occupier split by industry

As at 30 September 2019 % of Retail Rent

Tesco1 7.6 Next 4.8 Kingfisher 3.4 Walgreens (Boots) 3.4 Sainsbury’s 3.1 Marks & Spencer 3.1 Debenhams 2.8 Dixons Carphone 2.8 TJX (TK Maxx) 2.1 JD Sports 2.0 Arcadia 2.0 Sports Direct 1.9 New Look 1.9 Asda 1.7 Virgin 1.6 Homebase 1.5 Steinhoff 1.5 TGI Fridays 1.4 CK Hutchinson 1.3 H&M 1.3

Occupier Split by Industry (%)

1 Includes £3.4m at Surrey Quays Shopping Centre 2 Debenhams reduces to 0% following vacancy of 10 Brock Street and Facebook increases to 9.9%

  • nce they assume occupancy in November 2019

3 Taking into account their pre-let of 310,000 sq ft at 1 Triton Square, % contracted rent would rise to

13.0%. As part of this new letting, Dentsu Aegis have an option to return their existing space at 10 Triton Street in 2021. If this option is exercised, there is an adjustment to the rent free period in respect of the letting at 1 Triton Square to compensate British Land.

Professional & Corporate 11% General Retail 15% Fashion & Beauty 19% Banks & Financial services 11% Food / Leisure 10% TMT 10% Grocery & Convenience 7% Home & DIY 6% Other 11%

Retail Top Occupiers Offices Top Occupiers

As at 30 September 2019 % of Office Rent

Government 6.9 Facebook2 4.9 Dentsu Aegis3 4.8 Visa 4.4 Debenhams2 4.1 Herbert Smith Freehills 3.5 Gazprom 2.8 Microsoft 2.5 Vodafone 2.2 Deutsche Bank 2.1 Reed Smith 1.9 Henderson 1.8 Mayer Brown 1.6 Mimecast 1.4 Aramco 1.3 Credit Agricole 1.3 Kingfisher 1.3 Misys 1.1 Capula 1.1 Accor 1.1

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58

198 6 Insolvency Act introduces CVAs

A history of CVAs

20 0 9

JJB “Landlord” CVA

  • reduces lease payments but

leaves other creditors unaffected

  • discounts Landlord vote by 75%

3-4 Retailer “Landlord CVAs” per year

20 13-20 17 March 20 18

CVAs which affect more than rent appear Seek legal advice as more adverse terms emerge

June 20 18

House of Fraser BL CVA cross business committee forms and determines strategy

July 20 18 Septem ber 20 18

BL engages with insolvency practitioners Red Flags launched via BPF

Novem ber 20 18

BL and group of landlords launch legal challenge of Regis CVA

February 20 19

Technical structure of Landlord Steering Committee takes shape On Arcadia, SteerCo of Landlords via Advisor got:

  • access to better financial

business information

  • concessions and 20% upside on

sale for all landlords

May 20 19

Arcadia CVA

June 20 19

Monsoon CVA

Septem ber 20 19

Debenhams CVA challenged in Court Outcome awaited

Decem ber 20 19

Regis challenge in court

Key: Macro events BL actions

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59

Capital Activity

Since 1 April 2019 Offices £m Retail £m Residential £m Canada Water £m Total £m Purchases1 32

  • 19
  • 51

Sales2

  • (236)

(56)

  • (292)

Development Spend 125 8

  • 5

138 Capital Spend 20 16

  • 36

Net Investment 177 (212) (37) 5 (67) Gross Investment 177 260 75 5 517

On a proportionally consolidated basis including the Group’s share of joint ventures and funds

1 Includes purchase of 6 Orsman Road, Haggerston for £32m which exchanged in period and completed post period end 2 Includes Clarges residential sales of £56m, of which £6m exchanged prior to FY20 and completed in the period and £3m exchanged and completed post period end

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60

(2,000) (1,600) (1,200) (800) (400)

  • 400

800 1,200 1,600

Capital Activity

£45m FY16 FY17 (£502m) FY18 (£739m)

Net Spend1 £m

Sales Capital Investment Net Spend Purchases

1 Previous periods have been restated to exclude transactions exchanged in the period that have now completed

(£721m) FY19 (£67m) HY20

Gross investment activity since April 2017

£ 4 .0 bn

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61

Clarges Residential Unit Sales

Number of units £m Completed in FY18 2 24 Completed in FY19 23 335 Completed in HY201 5 56 Total Completed 30 415 Exchanged 2 25 Total Sold 32 440 Units under offer 1 6 Units remaining 1 4 Total 34 450

1 Of which 1 unit (£3m) exchanged in the period and completed post period end

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62

Purchases

Since 1 April 2019 Sector Price (100%) £m Price (BL Share) £m Annual Passing Rent £m1 Completed Aldgate Place, Phase 2 Residential 19 19

  • 6 Orsman Road, Haggerston2

Offices 32 32

  • Total

51 51

  • 1 BL share of annualised rent topped up for rent frees

2 Exchanged in period and completed post period end

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63

Sales

1 BL share of annualised rent topped up for rent frees 2 £6m of which exchanged prior to HY20 and completed in the period and £3m of which exchanged and completed post period end

Since 1 April 2019 Sector Price (100%) £m Price (BL Share) £m Annual Passing Rent £m1 Completed Portfolio of Sainsbury’s stores Retail 429 194 12 David Lloyd Croydon Retail 22 22 1 Clarges2 Residential 56 56

  • Exchanged

Homebase Walton on Thames Retail 20 20 1 Total 527 292 14

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64

H2 FY20 income statement guidance

Gross Rents

  • Annualised accounting gross rent of £522m

as at 30 September 2019

  • This incorporates the reduction to contracted rents as

a result of CVAs and administrations prior to 30th September 2019

  • Retail % like for like movement, absent any material

tenant events, is expected to be at a similar level for FY20 as the first half

  • In Offices, rental income will primarily be driven by

like-for-like growth across the portfolio, including the ramp up of our Storey offering

Operating costs

  • As we become more operational and expand Storey,

we expect our property operational costs to increase marginally but stay in line with H1 as a percentage of gross rents

  • Administrative costs expected to be broadly

in line with H1 level

Financing

  • Weighted average interest rate now 2.7%
  • n gross debt of £3.9bn
  • Undrawn facilities of £1.4bn, with commitment

fees of c.30bps p.a.

Dividend

  • As announced in May 2019, the dividend for the year

ending 31 March 2020 is 31.93p per share (quarterly dividend of 7.9825p per share)

  • Other
  • Capital activity has the potential to significantly impact
  • profits. For example, selling/acquiring £100m of assets

would reduce/increase profits by c.£3.4m and LTV by c.0.6%. This is based

  • n an average portfolio topped up NIY of 4.8%

and marginal cost of debt of 1.4%

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65

Illustrative future income profile breakdown (cash basis)

For the year to 31 March 2020 2021 2022 2023 2024 Total Accounting Basis As at 30 September 2019 £m £m £m £m £m £m Current Passing Rent 521 529 Contracted uplifts4 20 22 3

  • 1

46 Letting of Committed Developments1 26 22

  • 48

39 Contracted rent 615 568 Sales exchanged post year end (1)

  • (1)
  • Letting of completed developments

3

  • 3

3 Lease Expiries – Development pipeline (1) (4) (1)

  • (1)

(7) (7) Letting of Committed Developments1 – speculative 5 2

  • 7

6 Letting of Near Term Developments1

  • 29

19 48 41 RPI Linked Leases2 1 1 1 1 1 5 5 Reversion3 4 5 7 1 (3) 14 12 Vacancies 26 26 22 710 650 Letting of Medium Term Developments (excl. Canada Water & Eden Walk) 81 66

On a proportionally consolidated basis including the Group’s share of joint ventures and funds. Figures based on valuation rent and include assumptions on outstanding rent review settlements

1 Assumes lettings contracted are rent producing at practical completion 2 Assumed at 2.6% per annum 3 Includes reversion on expiries and open market rent reviews within 5 years 4 Includes £8m agreement for lease rents

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66

Gross rental income1

Accounting Basis £m 6 months to 30 September 2019 Annualised as at 30 September 2019 Group JVs & Funds Total Group JVs & Funds Total West End 75

  • 75

140

  • 140

City 7 34 41 12 63 75 Offices 82 34 116 152 63 215 Regional 32 45 77 58 85 143 Local 44 12 56 89 22 111 Multi-let 76 57 133 147 107 254 Department Stores and Leisure 8

  • 8

21

  • 21

Superstores 3 3 6 5 3 8 Solus and Other 6

  • 6

12

  • 12

Retail 93 60 153 185 110 295 Residential2 2

  • 2

4

  • 4

Canada Water 4

  • 4

8

  • 8

Total 181 94 275 349 173 522

On a proportionally consolidated basis including the group's share of joint ventures and funds

1 Gross rental income differs from annualised rents due to accounting adjustments for fixed & minimum contracted rental uplifts and lease incentives 2 Standalone residential

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67

Administrative expenses

6 months to 30 September 2018 £m 2019 £m Personnel costs 28 26 Share scheme costs (1) (1) Other administrative expenses 18 19 Total 45 44 Capitalised costs (3) (3) Total administrative expenses 42 41

On a proportionally consolidated basis including the Group's share of Joint ventures and Funds and excluding non-controlling interests in the Group's subsidiaries.

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68

Operating costs metric

6 months to 30 September 2018 £m 2019 £m Property operating expenses 24 32 Administrative expenses 42 41 Net fees and other income (6) (7) Ground rent costs and operating expenses de facto included in rents (4) (8) EPRA Costs (including direct vacancy costs) 56 58 Gross rental income 291 275 Ground rent costs and operating expenses de facto included in rents (4) (8) Gross Rental Income (EPRA basis) 287 267 EPRA Cost Ratio (including direct vacancy costs) 19.5% 21.7%

On a proportionally consolidated basis including the Group's share of Joint ventures and Funds and excluding non-controlling interests in the Group's subsidiaries.

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69

Number of shares

As at 31 Mar 2019 (m) 30 Sept 2019 (m) IFRS Basic Weighted average1 971 941 IFRS Diluted Weighted average2 971 941 Underlying/EPRA diluted Weighted average3 974 944 Year/Period end4 956 933

1 For use in IFRS basic earnings per share. 2 For use in IFRS diluted earnings per share. A loss in the current and prior periods results in an anti-dilutive effect, therefore no adjustment has been made for the dilutive effect of share options. 3 For use in Underlying/EPRA diluted earnings per share. 4 For use in EPRA NAV per share and EPRA NNNAV per share.

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70

EPRA balance sheet

31 March 19 Group JVs & Funds 30 September 19 Total properties (£m) 12,316 8,434 3,289 11,723 Adjusted net debt (£m) (3,521) (2,794) (891) (3,685) Other net liabilities (£m) (146) (2) (52) (54) EPRA Net Assets (£m) 8,649 5,638 2,346 7,984 Loan to value (LTV)1 28.1% 30.8% Weighted average interest rate 2.9% 2.7% Interest cover 3.8x 3.7x Weighted average maturity of drawn debt (years) 8.1 7.9

1 Group LTV based on Group Properties and net investment in Joint ventures & Funds, and Group net debt.

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71

Reconciliation of EPRA NAV & NNNAV

31 March 19 30 September 19 £m Pence £m pence IFRS Net Assets 8,689 916 7,971 860 Deferred tax arising on revaluation movements 5 6 Mark to market on derivatives and related debt adjustments 113 137 Adjust to fully diluted on exercise of share options 24 19 Surplus on trading properties 29 19 Non-controlling interests (211) (168) EPRA NAV 8,649 905 7,984 856 Deferred tax arising on revaluation movements (11) (9) Mark to market of debt and derivatives (477) (563) EPRA NNNAV 8,161 854 7,412 794

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72

Gross and net debt reconciliation

As at 30 September 2019 Group £m JVs & Funds £m Less non- controlling interests £m Total £m Gross Debt (principal) (3,039) (1,021) 120 (3,940) IFRS adjustments: Issue costs and premia 12 2 (1) 13 Fair value hedge adjustments (220)

  • (220)

Other items 4

  • 4

IFRS gross debt (3,243) (1,019) 119 (4,143) Market value of derivatives 58 (10) 1 49 Cash 160 128 (16) 272 IFRS net debt (3,025) (901) 104 (3,822) Adjustments: Remove market value of derivatives (47) Remove fair value hedges 188 Other adjustments (4) Adjusted net debt (3,685)

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73

Loan to value (LTV)

As at 31 March 2019 £m Valuation movement Acquisitions Capital spend Disposals Share buyback Other As at 30 September 2019 £m Total properties 12,316 (531) 19 182 (263)

  • 11,723

Other investments 151 5

  • 14

170 LTV assets 12,467 (526) 19 182 (263)

  • 14

11,893 Adjusted net debt 3,521

  • 21

185 (259) 125 92 3,685 Other (19)

  • 2

(17) LTV liabilities 3,502

  • 21

185 (259) 125 94 3,668 LTV 28.1% 1.2% 0.1% 1.1% (1.5%) 1.0% 0.8% 30.8%

On a proportionally consolidated basis including the Group's share of Joint ventures and Funds and excluding non-controlling interests in the Group's subsidiaries.

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74

Debt metrics

Proportionally Consolidated 31 Mar 2019 30 Sept 2019 Loan to value (LTV) 28.1% 30.8% Weighted average interest rate 2.9% 2.7% Interest cover 3.8x 3.7x Weighted average maturity of drawn debt 8.1yrs 7.9yrs Group 31 Mar 2019 30 Sept 2019 Loan to value (LTV) 22.2% 25.4% Available undrawn facilities £1.5bn £1.4bn Weighted average interest rate 2.2% 2.1% Interest cover 4.9x 4.6x Senior unsecured credit rating (Fitch) A A

slide-76
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75

  • 200

400 600 800 1,000 1,200 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036 2037 2038 2039 2040

Debt maturity (£m)

£m

Bank RCFs Undrawn (Unsecured) Bank RCFs Drawn (Unsecured) Debenture & loan notes (Secured) Convertible Bond (Unsecured) Sterling Bond (Unsecured) US Private Placements (Unsecured) Funds – Bank drawn (Secured) JVs – Securitisations (Secured) On a proportionally consolidated basis including the group's share of joint ventures and funds and excluding non-controlling interests in the Group's subsidiaries.

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76

Debt financing – diverse profile

  • Issued £100m 2034 USPP floating rate note

– Follows repayment of a 5.5% £98m 2027 note – Extends BL debt maturity / improves profits

  • Extended £810m of committed bank facilities by a

further 1 year.

  • No requirement to refinance until late 2022
  • LTV increased by 270bps to 30.8%

– Valuation declines +120bps – Development spend +110bps

  • Weighted average interest rate new low of 2.7%
  • Weighted average drawn debt term maturity 7.9 years
  • Long term ratings affirmed and Short term Issuer

Default Rating upgraded to ‘F1’ (Fitch Sep-19)

£3.9bn Drawn Debt1 (30 September 2019)

1 Proportionally consolidated. HUT’s debt shown at our share (£0.4bn) within JV & Funds.

£0.4bn £0.8bn £0.4bn £0.3bn £0.6bn £1.0bn £0.4bn Bank RCFs Drawn US Private Placements Convertible Bond Sterling Bond Debenture & loan notes JVs Securitisations JV & Funds Loans Unsecured Secured

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77

Portfolio valuation by sector

As at 30 September 2019 Group JVs & Funds Total H1 Change %1 £m £m £m % £m West End 4,066

  • 4,066

(0.1) (4) City 256 2,117 2373 1.3 30 Offices 4,322 2,117 6,439 0.4 26 Regional 649 1,536 2,185 (13.2) (334) Local 1,673 322 1,995 (11.1) (250) Multi-let 2,322 1,858 4,180 (12.3) (584) Department Stores and Leisure 301

  • 301

(0.1)

  • Superstores

84 50 134 (1.5) (5) Solus and Other 175

  • 175

(5.4) (10) Retail 2,882 1,908 4,790 (10.7) (599) Residential2 147

  • 147

(2.1) (3) Canada Water 347

  • 347

12.4 38 Total 7,698 4,025 11,723 (4.3) (538) Standing Investments 6,993 3,514 10,507 (5.2) (591) Developments 705 511 1,216 4.6 53

On a proportionally consolidated basis including the group's share of joint ventures and funds

1 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 2 Standalone residential

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78

Valuation movement – Offices

6 months to 30 September 2019 Valuation £m Change £m Change %1 Yield movement bps2 ERV movement %2 West End 4,066 (4) (0.1) 2 (0.2) City 2,373 30 1.3 (3) 2.9 Offices 6,439 26 0.4

  • 0.9

Ca m p uses rep resent 8 2% of the Offices p ortfolio

1 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 2 Excluding committed developments, assets held for development and residential assets

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79

6 months to 30 September 2019 Valuation £m Change £m Change %1 Yield movement bps2 ERV movement %2 Regional 2,185 (334) (13.2) +41 (5.5) Local 1,995 (250) (11.1) +39 (4.7) Multi-let 4,180 (584) (12.3) +40 (5.1) Other 610 (15) (1.8) +14 0.0 Retail 4,790 (599) (10.7) +37 (4.8)

1 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 2 Excluding committed developments, assets held for development and residential assets

Multi-let a ssets rep resent 8 7% of the Reta il p ortfolio

Valuation movement – Retail

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80

Retail Portfolio Valuation – previous classification

As at 30 September 2019 Group JVs & Funds Total H1 Change1 £m £m £m % £m Shopping parks 1,384 899 2,283 (12.4) (322) Shopping centres 927 942 1,869 (11.8) (250) Superstores 84 50 134 (1.5) (5) Department stores 62

  • 62

(10.5) (7) High Street 153 1 154 (9.7) (17) Leisure 272 16 288 0.8 2 Retail & Leisure 2,882 1,908 4,790 (10.7) (599)

On a proportionally consolidated basis including the group's share of joint ventures and funds

1 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

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81

Portfolio net yields1,2

As at 30 September 2019 EPRA net initial yield % EPRA topped up net initial yield %

3

Overall topped up net initial yield %

4

Net equivalent yield % Net equivalent yield movement bps Net reversionary yield % ERV Growth %

5

West End 3.7 4.1 4.1 4.3 2 4.8 (0.2) City 3.4 4.0 4.0 4.7 (3) 5.5 2.9 Offices 3.6 4.0 4.0 4.4

  • 5.0

0.9 Regional 5.3 5.5 5.6 5.7 41 5.8 (5.5) Local 5.9 6.1 6.2 6.3 39 6.1 (4.7) Multi-let 5.6 5.8 5.9 6.0 40 6.0 (5.1) Department Stores and Leisure 5.7 5.7 6.1 5.6 15 5.0 1.1 Superstores 5.8 5.8 5.8 5.2 3 5.1 (6.6) Solus and Other 6.5 6.7 6.7 5.8 20 4.6 (5.1) Retail 5.6 5.8 5.9 5.9 37 5.8 (4.8) Canada Water 3.3 3.3 3.3 4.0 11 4.0 (2.9) Total 4.5 4.8 4.9 5.1 17 5.3 (2.3)

On a proportionally consolidated basis including the group's share of joint ventures and funds

1 Including notional purchaser's costs 2 Excluding committed developments, assets held for development and residential assets 3 Including rent contracted from expiry of rent-free periods and fixed uplifts not in lieu of rental growth 4 Including fixed/minimum uplifts (excluded from EPRA definition) 5 As calculated by IPD

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82

Portfolio weighting

As at 30 September 2019 2018 % 2019 % 2019 £m West End 31.9 34.7 4,066 City 15.8 20.2 2,373 Offices 47.7 54.9 6,439 Regional 22.9 18.7 2,185 Local 17.2 17.0 1,995 Multi-let 40.1 35.7 4,180 Department Stores and Leisure 4.2 2.6 301 Superstores 2.8 1.1 134 Solus and Other 1.9 1.5 175 Retail 49.0 40.9 4,790 Residential1 1.0 1.2 147 Canada Water 2.3 3.0 347 Total 100.0 100.0 11,723 Of which London 58% 65% 7,623

On a proportionally consolidated basis including the group's share of joint ventures and funds

1 Standalone residential

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83

Lease length and occupancy

As at 30 September 2019 Average Lease Length (yrs) Occupancy Rate (%) To Expiry To Break EPRA Occupancy Occupancy1,2,3 West End 6.2 5.0 97.0 97.3 City 7.0 5.9 84.8 97.1 Offices 6.5 5.3 92.6 97.2 Regional 6.9 5.6 95.4 96.1 Local 6.6 5.3 95.0 95.8 Multi-let 6.8 5.4 95.2 95.9 Department Stores and Leisure 14.8 12.3 99.5 99.5 Superstores 9.2 9.1 100.0 100.0 Solus and Other 10.1 10.1 100.0 100.0 Retail 7.5 6.1 95.7 96.3 Canada Water 5.2 5.1 99.7 99.9 Total 7.0 5.8 94.3 96.8

1 Space allocated to Storey is shown as occupied where there is a Storey tenant in place otherwise it is shown as vacant. Total occupancy would rise from 96.8% to 97.3% if Storey

space were assumed to be fully let.

2 Including accommodation under offer or subject to asset management 3 Where occupiers have entered administration or CVA but are still liable for rates, these are treated as occupied. Reflecting units currently occupied but expected to become vacant,

then the occupancy rate for Retail would reduce from 96.3% to 95.6%, and total occupancy would reduce from 96.8% to 96.4%

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84

Annualised rent & estimated rental value (ERV)

As at 30 September 2019 Annualised Rents (Valuation Basis) £m1 ERV £m Average Rent (£psf) Group JVs & Funds Total Total Contracted2 ERV West End3 141

  • 141

183 60.8 67.4 City3 7 57 64 104 50.5 58.7 Offices3 148 57 205 287 57.0 64.0 Regional 44 87 131 142 30.3 31.7 Local 110 24 134 139 22.8 23.1 Multi-let 154 111 265 281 26.0 26.7 Department Stores and Leisure 18

  • 18

16 15.0 13.3 Superstores 4 4 8 7 22.3 19.8 Solus and Other 13

  • 13

9 20.5 14.7 Retail 189 114 304 313 24.6 24.7 Residential4 4

  • 4

4 45.2 37.7 Canada Water5 8

  • 8

9 18.0 21.1 Total 349 172 521 613 30.6 33.8

On a proportionally consolidated basis including the group's share of joint ventures and funds, excluding committed, near term and assets held for development

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 Annualised rent, plus rent subject to rent free 3 £psf metrics shown for office space only 4 Standalone residential 5 Reflects standing investment only

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85

Rent subject to open market rent review

For the year to 31 March 2020 2021 2022 2023 2024 2020–22 2020–24 As at 30 September 2019 £m £m £m £m £m £m £m West End 7 10 9 23 7 26 56 City 2 9

  • 15

11 26 Offices 9 19 9 23 22 37 82 Regional 5 18 12 11 8 35 54 Local 5 12 6 17 5 23 45 Multi-let 10 30 18 28 13 58 99 Department Stores and Leisure

  • 2
  • 2

Superstores 3

  • 2

1 3 6 Solus and Other

  • Retail

13 30 18 30 16 61 107 Residential

  • 1
  • 1

1 Canada Water1

  • Total

22 49 28 53 38 99 190

On a proportionally consolidated basis including the group's share of joint ventures and funds excluding committed, near term and assets held for development

1 Reflects standing investment only

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86

Rent subject to lease break or expiry

For the year to 31 March 2020 2021 2022 2023 2024 2020-22 2020-24 As at 30 September 2019 £m £m £m £m £m £m £m West End 15 17 22 16 15 54 85 City 2 13 2 4 12 17 33 Offices 17 30 24 20 27 71 118 Regional 11 12 13 18 20 36 74 Local 11 11 14 12 19 36 67 Multi-let 22 23 27 30 39 72 141 Department Stores and Leisure

  • 3
  • 3

3 Superstores

  • 2
  • 2

Solus and Other 1

  • 1

1 Retail 23 23 30 32 39 76 147 Residential

  • 3
  • 3

3 Canada Water1

  • 1
  • 1

2 1 4 Total 40 57 54 53 68 151 272 % of contracted rent 7.3 10.3 9.9 9.6 12.3 27.5 49.4

On a proportionally consolidated basis including the group's share of joint ventures and funds excluding committed, near term and assets held for development

1 Reflects standing investment only

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87

Contracted rental increases (cash flow basis)

For the year to 31 March 2020 2021 2022 2023 2024 2020-22 2020-24 As at 30 September 2019 £m £m £m £m £m £m £m Expiry of rent free periods 11 21 1

  • 33

33 Fixed uplifts (EPRA basis)

  • 1
  • 1

1 Fixed & minimum uplifts

  • 1

1

  • 1

2 3 Total 11 22 3

  • 1

36 37

On a proportionally consolidated basis including the group's share of joint ventures and funds excluding committed, near term and assets held for development

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88

Total Property Return (as calculated by IPD)

6 months to 30 September 2019 Offices Retail Total % British Land IPD British Land IPD British Land IPD Capital Return 0.5 0.2 (11.0) (5.3) (4.3) (1.3) – ERV Growth 0.9 1.3 (4.8) (2.1) (2.3) 0.0 – Yield Movement1 0 bps 3 bps 37 bps 14 bps 17 bps 5 bps Income Return 1.6 1.9 2.9 2.6 2.1 2.2 Total Property Return 2.1 2.1 (8.4) (2.8) (2.3) 0.8

1 Net equivalent yield movement

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89

As at 30 September 2019 Sector BL Share Sq ft PC Calendar Year Current Value Cost to Come ERV Let & Under Offer % '000 £m £m1 £m2 £m 1 Finsbury Avenue Office 50 287 Q1 2019 171

  • 8.3

6.5 Total Completed in the Year 287 171

  • 8.3

6.5 100 Liverpool Street Office 50 520 Q1 2020 317 55 19.2 14.9 135 Bishopsgate Office 50 335 Q1 2020 184 22 9.7 9.4 1 Triton Square3 Office 100 366 Q4 2020 340 77 22.7 21.8 Plymouth (Leisure) Retail 100 108 Q4 2019 33 6 3.1 2.1 Total Committed 1,329 874 159 54.7 48.2 Retail Capital Expenditure4 65

On a proportionally consolidated basis including the group's share of joint ventures and funds (except area which is shown at 100%)

1 From 1 October 2019. Cost to come excludes notional interest as interest is capitalised individually on each development at our capitalisation rate 2 Estimated headline rental value net of rent payable under head leases (excluding tenant incentives) 3 ERV let & under offer of £21.8m represents space taken by Dentsu Aegis. As part of this letting, Dentsu Aegis have an option to return their existing space at 10 Triton Street in 2021.

If this option is exercised, there is an adjustment to the rent free period in respect of the letting at 1 Triton Square to compensate British Land

4 Capex committed and underway within our investment portfolio relating to leasing and asset management

Recently Completed & Committed developments

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Near term development pipeline

As at 30 September 2019 Sector BL Share Sq ft Expected Start on Site Current Value Cost to Come ERV Let & Under Offer Planning Status % '000 Calendar Year £m £m1 £m2 £m Near Term Pipeline Norton Folgate Office 100 335 Q1 2020 83 243 23.0

  • Consented

1 Broadgate Office 50 532 Q4 2020 91 204 19.0

  • Consented

Aldgate Place, Phase 2 Residential 100 146 Q4 2020 37 86 6.0

  • Consented

Total Near Term 1,013 211 533 48.0

  • Retail Capital Expenditure3

45

On a proportionally consolidated basis including the group's share of joint ventures and funds (except area which is shown at 100%)

1 From 1 October 2019. Cost to complete excludes notional interest as interest is capitalised individually on each development at our capitalisation rate 2 Estimated headline rental value net of rent payable under head leases (excluding tenant incentives) 3 Forecast capital commitments within our investment portfolio over the next 12 months relating to leasing and asset enhancement

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Medium term development pipeline

1 Planning consent for previous 240,000 sq ft scheme 2 On drawdown of the Master Development Agreement, ownership reduces to 80% with LBS owning 20%. LBS ownership will adjust over time depending on level of investment by Southwark

As at 30 September 2019 Sector BL Share Sq ft Planning status % '000 Medium term Pipeline 2-3 Finsbury Avenue Office 50 563 Consented Gateway Building Leisure 100 105 Consented 5 Kingdom Street1 Office 100 429 Consented Meadowhall (Leisure) Retail 50 333 Consented Ealing – 10-40 The Broadway Retail 100 292 Pre-submission Eden Walk Retail & Residential Mixed Use 50 533 Consented Canada Water2 Mixed Use 100 5,000 Resolution to grant planning Total Medium Term 7,255

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Estimated future development spend and capitalised interest

As at 30 September 2019 PC Calendar Year Cost to Come £m (excluding notional interest) – 6 months breakdown Mar-20 Sept-20 Mar-21 Sept-21 Mar-22 Sept-22 Mar-23 Sept-23 Total1 100 Liverpool Street Q1 2020 33 20 2

  • 55

135 Bishopsgate Q1 2020 22

  • 22

1 Triton Square Q4 2020 41 16 20

  • 77

Plymouth (Leisure) Q4 2019 6

  • 6

Total Committed 102 36 22

  • 159

Norton Folgate 2022 15 20 35 61 67 27 14 4 243 1–2 Broadgate 2024 10 10 10 17 26 31 32 28 204 Aldgate Place, Phase 2 2023 5 7 9 18 21 19 6 1 86 Total Near Term 30 37 54 96 114 78 52 33 533 Indicative Interest Capitalised

  • n above at attributable rates

4 3 4 4 5 3 2 2

1 Includes costs to come post September 2023

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0.0 2.0 4.0 6.0 8.0 10.0 12.0 00 01 02 03 04 05 06 07 08 09 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24

Central London development pipeline

Note: Forecast reflects CBRE’s estimate of earliest completions. Central London comprises the City, Docklands, Midtown, Southbank and West End areas.

Source: CBRE

m sq ft

5.2m 4.4m

Completed U/C Pre-let Pipeline Pre-let U/C – Speculative Potential Speculative 10 year average new and under-construction take-up 10 year average development completions

Q3 20 19

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West End development pipeline

Note: Forecast reflects CBRE’s estimate of earliest completions

0.0 0.5 1.0 1.5 2.0 2.5 3.0 00 01 02 03 04 05 06 07 08 09 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 1.1m

Source: CBRE

m sq ft

Q3 20 19

Completed U/C Pre-let Pipeline Pre-let U/C – Speculative Potential Speculative 10 year average new and under-construction take-up 10 year average development completions

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City development pipeline

Note: Forecast reflects CBRE’s estimate of earliest completions

0.0 1.0 2.0 3.0 4.0 5.0 6.0 00 01 02 03 04 05 06 07 08 09 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 2.5m 2.0m m sq ft

Source: CBRE

Q3 20 19

Completed U/C Pre-let Pipeline Pre-let U/C – Speculative Potential Speculative 10 year average new and under-construction take-up 10 year average development completions

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London office market rental outlook

£ psf 20 40 60 80 100 120 140 2000 1995 1990 2010 2005 2020 2015

Forecast

Source: CBRE (historic) and Average Agents' Consensus for forecasts

Actual

West End City

Prim e Lond on Office Rents

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2 4 6 8 10 12 14 16 18 20 1985 1990 1995 2000 2005 2010 2015 Q3 2019

Vacancy Central London

5.3% 3.4%

Source: CBRE (historic)

West End West End 10 year average City City 10 year average

W est End & City Va ca ncy Ra tes

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Disclaimer

The information contained in this presentation has been extracted largely from the Half Year Results Announcement for the six month period ending on 30 September 2019. For the purpose of this document, references to "presentation" shall be deemed to include this document, the oral briefing provided by British Land on this document, the question-and-answer session that follows the oral briefing, and any materials distributed in connection with this document or the oral briefing through The Regulatory News Service. This document is incomplete without reference to, and should be viewed solely in conjunction with, the wider presentation. All statements of opinion and/or belief contained in this presentation and all views expressed represent British Land's own current assessment and interpretation of information available to them as at the date of this presentation. Please note that this presentation may contain or incorporate by reference certain ‘forward-looking’

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verify the accuracy and completeness of such third party information. No responsibility is accepted by British Land or any of associates, directors, officers, employees or advisers for the accuracy or completeness of such information. The distribution of this presentation in jurisdictions other than the UK may be restricted by law and regulation and therefore any persons who are subject to the laws of any jurisdiction other than the UK should inform themselves about, and observe, any applicable requirements. All opinions expressed in this presentation are subject to change without notice and may differ from opinions expressed elsewhere. This presentation has been presented in £, £ms and £bns. Certain totals and change movements are impacted by the effect of rounding

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The British Land Company PLC York House 45 Seymour Street London W1H 7LX