Presentation February 2017 www.britishland.com @BritishLandPLC - - PowerPoint PPT Presentation

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Investor Presentation

February 2017

All figures as at last valuation date of 30 September 2016 unless noted otherwise

British Land is proud to have been awarded

The 2016 Queen’s Award for Enterprise

Acknowledging our economic, social and environmental contribution

3

• Quality portfolio

– Reflected in our activity and results

• Resilience built into the business

– Secure income and robust finances

• Strategy aligned to long term trends

– Endures through uncertainty

• Optionality to respond to

changing environment

– Tactical decisions in light of Brexit

Resilient in uncertainty, well positioned to capture upside in the future

Overview

4

Activity in quarter to December 16

• Quality portfolio attracting strong occupier demand

– 314,000 sq ft of Retail lettings and renewals, 8.7% ahead of ERV; a further 189,000 sq ft under offer – Retailer sales +0.6% (+200 bps vs benchmark); footfall -0.6% year on year (+220bps vs benchmark) – 51,000 sq ft of Office lettings and renewals, in-line with ERV. 7 Clarges Street

• ffices now over 80% let at an average rent of £113psf, in line with pre-referendum

ERVs – Leasing discussions with a wide range of occupiers are progressing across our London campuses; ten major discussions are under way totalling 1.4 million sq ft.

• Further disposals ahead of valuation

– £119m of disposals exchanged including £85m of non-core Retail and Office disposals at 2% ahead of September 2016 valuations. – Includes £34m of Residential disposals at 10% ahead of valuation including sales at Aldgate Place and one further apartment at Clarges Mayfair

• Pro-forma LTV of 30.5% (September 16: 31.6%); weighted average interest rate of

3.3% (September 16: 3.2%)

Portfolio & Strategy

6

Portfolio evenly split between London Offices and high quality Retail

Total portfolio valuation £13.9bn at September 16 including £0.3bn at Canada Water and £0.2bn of Residential assets

£6.8bn £6.6bn

Offices Retail & Leisure

7

Resilience built into the portfolio

• High quality portfolio
• Practically fully let at 98% occupancy
• Average lease length of 9 years
• Let to a high quality, diverse occupier base

Occupier split by sector by rent

average lease length

9 years

General Retail 16% Fashion & Beauty 16% Banks & Financial Services 17% Supermarket 11% F&B and Leisure 10% DIY 7% TMT 7% Other 7%

Upcoming expiries1 5% UBS – 5 Broadgate 3% Other banks 4% Total banks 12% Asset Management & Other Financial 5%

• ccupancy

98%

Professional & Corporate 9%

8

Our strategy is aligned to long term trends

Key long term trends Implications for British Land Globalisation Strength of London Transforming impact

• f technology

Rise of omnichannel Population growth and urbanisation Sharpened focus

• n end user

Importance of infrastructure Blurring of work and leisure Sustainability Focus on health and wellbeing

9

Customer Orientation

We understand our customers’ needs and identify major long-term trends to create environments in tune with changing lifestyles

Right Places

We connect with customers to design engaging, sustainable places enhanced with the right mix of occupiers and services and enlivened by events and activities to create places at the heart of the community

Capital Efficiency

We allocate our capital, manage our finances and partner with like-minded organisations to deliver sustainable long-term value

Expert People

We employ expert people and work with partners to provide specialist knowledge and insight and develop skills and expertise

Our Strategy

British Land is a leading UK commercial property company focused on high quality retail and London offices

Places People Prefer

By managing our business to be resilient, sustainable and responsive to long-term trends, we create enduring demand for our properties and value for our stakeholders

10

Placemaking Framework applied across the business

We Connect We Design We Enhance We Enliven

Accessibility

Convenience & access

Communication

Branding, marketing & digital, messaging

Authenticity

How our users feel and interact with the space

Function

Facilities & safety

Events

Events to create a buzz and drive footfall

Memorable experience

Creating lasting impressions

Segment mix

Balance of different segments and uses

Occupier service

Clustering of occupiers & value added

Occupier mix

Occupiers & campus community

Community

Support & involvement

• f local community

Form

Efficient and effective buildings & spaces

Customer service

On-site hospitality & customer service

11

Placemaking Framework applied across the business Offices Retail

Lifestyle orientated mixed use offices Multi-let lifestyle centres

Regional Attracting visitors from a wide catchment for a planned trip Local Fitting into the daily life of local communities Campuses Large, office-led mixed use lifestyle campuses Campus-lite Smaller clusters

12

Our strategy informs our capital activity

£5.9bn

Multi-let 63% Other 37%

Mar 2011

Multi-let 76% Other 24%

Sep 2016

£6.8bn £3.1bn

West End 39% City 61%

Mar 2011

West End 58% City 42%

Sep 2016

£6.6bn

£4.4bn gross investment activity

£1.5bn single-let disposals £1.3bn multi-let acquisitions

Retail £2.3bn gross investment activity

£0.7bn development spend £0.5bn acquisition of Paddington

Central campus

Office

£690m

3.6% ahead of valuation Non-core Retail disposals in H1 2017

All figures since March 2011

13

Gross investment activity in H1 2017

• 1600
• 1200
• 800
• 400

400 800 1200

Investment activity

£52m £648m (£267m)

2013 2014 2015 2016

£31m

£951m

£484m

2012 Disposals H1 2017

(£469m)

Net Spend £m

Capital Investment Net Spend Acquisitions

Net Acquisitions & Disposals £m

(£326m) £386m (£524m) (£277m) £244m (£620m)

Net Acquisitions/ Disposals £m Year to 31 March

14

Significant Retail sales – on strategy

6 months to September 2016

• £690m of non-core retail disposals
• 4.0% average yield
• 3.6% above March values

Non-core multi-let assets Superstores Department stores

71%

March 16 Multi-let share of Retail portfolio

76%

Sept 16

Westgate, Wakefield Debenhams, Oxford Street

15

Major property holdings

At 30 September 2016 (excl. developments under construction) BL Share % Sq ft 000’s Rent £m pa1 Occupancy Rate %2,4 Lease Length yrs3,4 1 Broadgate 50 4,721 225 98.7 8.0 2 Regent's Place 100 1,590 80 99.1 7.1 3 Paddington Central 100 806 34 99.9 7.3 4 Meadowhall, Sheffield 50 1,500 82 98.3 6.6 5 The Leadenhall Building 50 603 40 99.9 10.8 6 Sainsbury's Superstores5 52 2,259 49 100.0 10.8 7 Drake Circus, Plymouth6 100 1,132 21 98.0 5.1 8 Teesside, Stockton 100 523 17 98.5 6.1 9 Glasgow Fort 77 510 20 97.4 6.4 10 Ealing Broadway 100 423 13 93.1 6.1

Financial Results

17

Results highlights

6 months to September 2016

• Underlying profits up 16% to £199m

(+£28m)

– Strong leasing activity – Reducing finance and admin costs

• NAV down 3% to 891p

– Valuation fall of 2.8%

• LTV down 50bps to 31.6%

– £690m of Retail sales, 3.6% ahead of March values

18

Income statement

2016 H1 20161 H1 2017 H1 Change % Net Rental Income (£m) 620 309 312 1.0 Fees & Other Income1 (£m) 17 7 8 14.3 Administrative Expenses1 (£m) (94) (49) (43) 12.2 Net Finance Costs (£m) (180) (96) (78) 18.8 Underlying Profit (£m) 363 171 199 16.4 Underlying Earnings per Share (p) 34.1 16.0 19.3 20.6 Dividend per Share (p) 28.4 14.18 14.60 3.0 EPRA Cost Ratio (%) 16.6 17.8 15.0 (2.8%)

• Group. This restatement has had no impact on Underlying Profit.

19

EPRA balance sheet (proportional consolidation)

£m 31 March 16 Group JVs & Funds 30 September 16 Total properties 14,648 9,321 4,598 13,919 Adjusted net debt (4,765) (3,110) (1,353) (4,463) Other net liabilities (209) (97) (105) (202) EPRA Net Assets (undiluted) 9,674 6,114 3,140 9,254 Dilution impact of 2012 convertible bond 400 – – – EPRA Net Assets (diluted) 10,074 6,114 3,140 9,254 Loan to Value (LTV)1 32.1% 24.6% 31.6% Average interest rate 3.3% 2.5% 3.2% Interest cover 3.0x 4.4x 3.5x Average maturity of drawn debt (years) 8.1 7.2 8.0

20

Future income profile

Annualised Gross Rents Cash Flow Basis £m Accounting Basis £m Current Passing Rent 624 636 Contracted Uplifts 61 Total Contracted Rent 685 Letting of Completed and Under Construction Developments 17 14 Lease Expiries – Committed Developments (100 Liverpool Street) (9) (9) Lease Expiries – Near Term Developments (1 Finsbury Avenue) (7) (7) Letting of Committed and Near Term Developments 30 25 Lease Expiries – Medium Term Office Developments (21) (20) RPI Linked Leases1 9 9 Reversion2 19 17 Sales exchanged but not completed (12) (13) Potential Rent in 5 Years excl. Medium Term developments 711 652 Letting of Medium Term Developments (excl. Canada Water) 113 88

Valuation rent, includes assumptions on outstanding rent review settlements

21

Rent subject to lease break or expiry – Office expiries detail

For period to 31 March 2017 2018 2019 2020 2021 2017–19 At 30 September 2016 £m £m £m £m £m £m 100 Liverpool Street 9 – – – – 9 Committed developments 9 – – – – 9 1 Finsbury Avenue 7 – – – – 7 Near Term developments 7 – – – – 7 1 Triton Square 4 5 – – – 9 2-3 Finsbury Avenue 3 – 2 – – 5 135 Bishopsgate – – 7 – – 7 Medium Term developments 7 5 9 – – 21 Other West End expiries 2 6 10 4 18 18 Other City expiries – – 9 11 8 9 Office expiries (excl. committed developments) 16 11 28 15 26 55

Retail

23

How Britain shops today

c.90%

• f shopping spend touches

the physical store

Source: Verdict

<20 mins

average customer drive time to BL assets

Source: Kantar Source: British Land surveys

Convenience ranked

#1

importance for a shopping trip

35%

more click and collect at Local centres than national average

39% of food eaten out

• f home in the UK

30%

• f BL visitors

use F&B/leisure

Source: ONS/British Land surveys

24

Data informs our strategy and benefits our occupiers

Our superior insight into consumer behaviour helps make decisions

2 3

Placemaking lies at the heart of what we do

We create Places People Prefer via our placemaking framework

1 Our focus is on our customers

We listen to our consumers and occupiers and respond to their needs

4

Our core regional and local products can both succeed

We meet a range of consumer lifestyle missions

Outstanding places for modern consumer lifestyles Places to shop, eat and be entertained

25

Retail Multi-let Portfolio Our two core products each fulfil specific shopper missions

Regional

Missions include Leisure-dominated Trips, Family Day Out and The Big Ticket Shop Typically 30-60 occupiers Footfall 10-25m p.a., catchment potential spend >£100m p.a. Drive-time >20 mins Dwell >60 mins Retail offer covers multiple categories with depth of choice in each Significant leisure and F&B e.g. restaurants, cinema Missions include Local Neighbourhood Shopper, Convenient Leisure and Single Item Pick-Up Typically 15–30 occupiers Footfall often <5m p.a., catchment potential spend <£100m p.a. Drive-time <15 mins Dwell <60 mins Retail offer covers multiple categories & includes local amenities Convenient leisure and F&B e.g. gym and coffee shops

1 2

Local

26

Meadowhall Glasgow Fort Ealing Broadway Swindon Orbital Role Super-regional shopping centre Regional Shopping & leisure park Regional In-town shopping centre Local Out-of-town shopping park Local Size (k ft2) 1,500k 510k 470k 212k Dwell time 97 min 115 min 77 min 71 min Frequency of visit 30 pa 37 pa 68 pa 75 pa Retail spend £154 £88 £50 £52 Retail conversion 83% 84% 81% 81% Catering spend £12 £17 £8 £8 Catering conversion 58% 39% 25% 29% Annualised spend £4,030 £3,028 £2,906 £3,271 Rent : sales 14% 9% 10% 11%

Our data shows both regional and local can succeed

27

Retailers are creating hub and spoke networks

To support fulfilment and maintain brand awareness

Source: CACI

28

Our portfolio is well positioned to meet both consumer and retailer demands

Source: CACI Retail Footprint 2016

BL regional centres BL local centres BL asset catchments

Average rent to sales ratio

10%

Annual footfall of

322m 90%

• f our car parking

spaces are free Potential to reach

60%

• f the population

29

Retail Multi-let assets

Regional – attracting visitors from a wide catchment for a planned trip Local – fitting into the daily life of local communities Southgate, Bath Mayflower, Basildon

• St. Peter’s, Mansfield

Broughton, Chester1 Weston Lock, Bath Kingston Centre, Milton Keynes Fort Kinnaird, Edinburgh1 Cornerhouse, Barrow Studlands, Newmarket Glasgow Fort1 Hindpool, Barrow Newport, Harlech

• St. Stephen’s, Hull

Forster Square, Bradford Elk Mill, Oldham Eden Walk, Kingston Woodfields, Bury Nugent, Orpington Giltbrook, Nottingham Gallagher, Cheltenham1 Botley Road, Oxford Serpentine Green, Peterborough Tollgate, Colchester Deepdale, Preston1 Drake Circus, Plymouth Prospect Place, Dartford1 Queens, Stafford1 Meadowhall, Sheffield Crown Point, Denton Orbital, Swindon New Mersey, Speke1 Wheatley, Doncaster Westgate, Wakefield2 Teesside, Stockton Ealing Broadway Crown Wharf, Walsall1 Whiteley, Fareham Lion, Woking Old Market, Hereford Clifton Moor, York2 Inverness1 Westside, Leeds Beaumont, Leicester Valentine, Lincoln1 Mostyn Champneys, Llandudno1 Lisnagelvin, Londonderry3

30

We are expanding our addressable market

Source: Oxford Economics, CACI

Historical focus Recent additional focus Not relevant to BL

Consumer spend (2016)

73%

• f F&B spenders in UK

centres also spend on Retail

45%

• f Leisure users also spend
• n F&B

By expanding into new segments to enhance the retail experience F&B and Leisure are often interlinked with Retail

Housing 26% Education 2% Other 11% Grocery 12% Fashion 6% Home & Leisure 10% Health & Beauty 4% Food & Beverage 7% Leisure 6% Transport & Comms 16%

31

Continued momentum in the 6 months to September 2016:

• 656,000 sq ft of lettings and renewals

– 12.9% ahead of March ERVs

• 86 long term deals on multi-let portfolio

– 50% since referendum – 373,000 sq ft, 12.2% ahead of ERV

Multi-let portfolio – lettings and renewals

50 100 150 200 250 300 350 400

+7%

vs ERV H1 2016 H1 2017

‘000 sq ft

+12%

vs ERV

We are expanding our addressable market

By attracting a broader range of occupiers

32

80 85 90 95 100 105 110 115 Mar-10 Sep-10 Mar-11 Sep-11 Mar-12 Sep-12 Mar-13 Sep-13 Mar-14 Sep-14 Mar-15 Sep-15 Mar-16 Sep-16

Outperformance in H1 2017

BL footfall performance vs benchmark

+240bps

UK Market (ShopperTrak) British Land

Mar-10 = 100

33

Retail – Operational outperformance across the portfolio

+0.1%

• 0.2%

Footfall Retailer in-store Sales

Regional

• 2.3%

+2.0%

Total multi-let portfolio Local

+0.1%

• 1.2%

Ahead of market by

240 bps

Ahead of market by

190 bps

+1.3% +1.3% +1.3%

Ahead of market by

80 bps

ERV Growth

6 months to September 2016

Source: Footfall benchmark – ShopperTrak; Sales benchmark – BRC-KPMG; ERV benchmark – IPD

34

Continued polarisation in Retail

ERV growth vs IPD and Retail sales, including online

Source: Oxford Economics, IPD

Rental growth on multi-let assets in H1 2017

1.3%

Index Mar-13 = 100

95.0 97.5 100.0 102.5 105.0 107.5 110.0 112.5 115.0 Mar-13 Jun-13 Sep-13 Dec-13 Mar-14 Jun-14 Sep-14 Dec-14 Mar-15 Jun-15 Sep-15 Dec-15 Mar-16 Jun-16 Sep-16 Retail sales inc. online BL Multi-let IPD All Retail IPD Prime IPD Secondary

35

Physical store sales £266 bn True Value of Stores £278 bn Total retail sales £313 bn £5 bn £8 bn £18 bn £13 bn £4 bn

Online sales increasingly integrated with physical stores 89% of retail sales touch the store

Source: Verdict / British Land

Boost +5% 89% of total retail sales in 2015

Click & Collect sales Online sales browsed in store Online sales not browsed in store Online pureplay sales Mail order & TV shopping

Online sales of store operators Total online sales Online that touched the store

Retail sales by channel (UK, all sectors, 2015)

36

Physical store openings significantly boost retailers’ online presence

Postal area share of retailer website visits

Indexed vs. store opening date

+55%

50 60 70 80 90 100 110 120 130 140 150 +20 weeks 15 10 5 Store Opening

• 5
• 10
• 15
• 20

weeks

Note: Based on a sample of 18 retailers opening at British Land centres between April 2014 and December 2015 Source: Hitwise

37

Meadowhall, Sheffield

• On site with a £60m

refurbishment

• Attracting new occupiers
• Substantial leisure

extension planned

Recent additions

Proposed Meadowhall leisure extension

38

Eden Walk, Kingston

• £250m mixed use

redevelopment to include public spaces, leisure, retail and residential.

• 562,000 sq ft consented

scheme

Office

40

London Assets

41

Focused on London campuses which we plan to enhance and grow

Office-led, mixed-use environments in tune with modern lifestyles Our 3 campuses as a % of office assets

74%

Paddington Central Broadgate Regent’s Place

42

Campus-lite assets

The Leadenhall Building Marble Arch House 10 Portman Square Yalding House Clarges Mayfair

Small clusters alongside more opportunistic single site assets

43

Offices – Sustained leasing activity

6 months to September 2016

• 68,000 sq ft of lettings

– 4.9% ahead of March ERVs

• Continued activity since referendum

– Let final floors at Leadenhall – 33,000 sq ft under offer – Clarges Mayfair and Yalding House 37% let or under offer

Yalding House Clarges Mayfair The Leadenhall Building

• ccupancy

98%

44

Offices – Range of pre-let discussions

• In discussions on ten significant requirements totalling 1.4m sq ft
• Range of sectors – tech, media, finance, professional services
• Across all four campuses

4 Kingdom Street 1 Triton Square 100 Liverpool Street

45

Creating a world class, mixed-use destination at Broadgate

• Excellent location, catchment and connectivity

– Further enhanced by Crossrail in 2018

• Increase and diversify retail and leisure offer
• Flexible accommodation to attract a broader

range of occupiers

• Vibrant environment enlivened with events

5 Broadgate & Broadgate Circle 100 Liverpool Street redevelopment Broadgate Circle Exchange Square

46

Broadgate sits at the heart of one of the most exciting parts of London with excellent transport links

Old Street ‘Tech City’ 20,000 workers Shoreditch Creative sector 20,000 workers Barbican Cultural hub 40,000 workers The City Financial centre 120,000 workers Spitalfields Contemporary market 35,000 workers

BROADGATE 30,000 workers Liverpool St Station 150m annual footfall

Broadgate’s location and connectivity are fundamental aspects in ensuring strong ongoing occupier demand for the campus Crossrail

• Forecast to carry c.14m

people per year, Crossrail will further improve Broadgate’s connectivity

• A simple, direct

connection from Liverpool Street to Heathrow and City airport

• The Crossrail station will

sit directly outside 100 Liverpool Street

47

Broadgate – our lease expiries give us the opportunity to add a wider range of uses and attract a broader range of occupiers

100 Liverpool Street

• Lease expired in Dec 2016
• Current size: 380k sq ft
• Redevelopment: 520k sq ft

1 Finsbury Avenue

• Lease expired in Dec 2016
• Current size: 281k sq ft

135 Bishopsgate

• Leases expiring in 2019
• Current size: 340k sq ft

2–3 Finsbury Avenue

• 2 Finsbury Avenue – lease

expired in Dec 2016

• 3 Finsbury Avenue –

expected lease break in late 2018

• Current size: 190k sq ft
• Potential size: 560k sq ft

Broadgate Overview Current contracted rent £m (BL Share) % Rent Ave lease term – yrs Core income, including recent developments 84 75% 9.5 Committed (100 Liverpool Street) 9 8% n/a Near term pipeline (1 Finsbury Avenue) 7 6% 0.2 Medium term pipeline (2–3 Finsbury Avenue, 135 Bishopsgate) 12 11% 1.8 Total 112 8.0

48

100 Liverpool Street

• Major step in progressing plans at Broadgate
• Completes in 2019, benefitting from opening
• f Crossrail in 2018
• Flexible space to appeal to range of occupiers
• Expect to more than double rental income
• £164m development spend (BL share)

520,000 sq ft

redevelopment

140,000 sq ft

additional space, including

90,000 sq ft

retail and F&B

49

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

City development pipeline

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

Note: Forecast reflects agent’s estimate of earliest completions Source: CBRE

Q4 2016

m sq ft

50

Regent’s Place Campus

51

Paddington Central Campus

Canada Water

53

Canada Water

• Encouraged by discussions with potential occupiers
• Continue to work on masterplan; targeting planning

application in 2017

• Hosting events at The Printworks to raise profile

Triumph motorcycle launch Mulberry: London Fashion Week

54

Canada Water

• 46 acre site; £250m acquisition cost
• 5.5m sq ft of mixed-use space planned
• Roger Madelin appointed Feb 2016
• Planning submission in 2017

Photo credit: John Sturrock

55

Canada Water

Developments

57

Development pipeline – Committed and Near Term

• Speculative commitment is

£660m including 100 Liverpool Street, 5% of the portfolio

• Residential £250m pre-sold,

£230m to sell

• Costs to complete of £280m
• n the committed programme
• Near term includes 1 Finsbury

Avenue and leisure extensions at Speke and Plymouth

Speculative development commitment

5%

100 200 300 400 500 600 700 £m – Current Value & Costs to Come Committed – Under Construction Committed – 100 Liverpool Street Near Term Speculative development commitment Pre-sold / pre-let Residential pre-sold 4 Kingdom Street Residential & Retail

58

Optionality in our development pipeline

• Flexibility in timing of commitment; choices in approach

Near term Medium term

Income producing

• Canada Water
• Eden Walk, Kingston
• Combined NIY 2.8%
• 1 Finsbury Avenue
• Retail Leisure Extensions

(Plymouth, Speke)

1 Finsbury Avenue Eden Walk 1 Triton Square Blossom Street

Income producing – upcoming breaks/expiries

• 2 Finsbury Avenue (Dec 16)
• 1 Triton Square (Feb 17)
• 3 Finsbury Avenue (Sep 18)
• 135 Bishopsgate (Mar 19)

Non-income producing sites

• 5 Kingdom Street
• Blossom Street
• Meadowhall Leisure

59

Development programme – Medium Term

• £320m income producing,

yielding 2.8%

– Canada Water – Eden Walk

• £330m with upcoming

lease expiries

– 2-3 Finsbury Avenue – 135 Bishopsgate – 1 Triton Square

• £130m non-income producing

sites, including 5 Kingdom Street

Value of medium term pipeline

£780m

100 200 300 400 500 600 700 Income producing Upcoming expiries Non-income producing sites £m – Current Value

60

Residential sales

• Residential exposure of £230m, less than 2% of the portfolio
• PC June 2016
• 16 units sold in H1,

5% ahead of March values

• 40 units remaining,

£16m (BL share)

• PC: Phase 1 November 2016,

Phase 2 December 2016

• 4 units sold in H1,

8% below March values

• 14 units remaining, £53m
• 12 units remaining, £159m
• To be marketed at PC,

late 2017

The Hempel Collection Clarges Mayfair Aldgate Place

Appendices – H1 2017 Results

62

Highlights

Period to H1 2016 H1 2017 Change % Underlying Profit (£m) 171 199 16.4 Underlying Earnings per Share (p) 16.0 19.3 20.6 Dividend per Share (p) 14.18 14.60 3.0 As at H2 2016 H1 2017 Change % Valuation Performance 2.0% (2.8%) EPRA Net Asset Value per Share (p) 919 891 (3.0) LTV 32.1% 31.6% H1 Total Accounting Return 9.1% (1.5%)

63

Underlying Profit up £28 million

£m 171 (9) 8 5 17 7

H1 2016 Capital activity Like for like rental growth Developments Financing activities Administrative expenses and Fee income H1 2017

199

64

Gross rental income1,2

Accounting Basis £m 6 months to 30 September 2016 Annualised as at 30 September 2016 Group JVs & Funds3 Total Group JVs & Funds3 Total Regional 29 43 72 58 84 142 Local 49 13 62 97 26 123 Multi-let 78 56 134 155 110 265 Department Stores & Leisure 26 – 26 43 – 43 Superstores 5 16 21 10 31 41 Solus & Other 10 – 10 20 – 20 Retail and Leisure 119 72 191 228 141 369 West End 66 – 66 127 – 127 City 2 60 62 4 120 124 Offices 68 60 128 131 120 251 Residential4 2 – 2 3 – 3 Offices and Residential 70 60 130 134 120 254 Canada Water 5 – 5 8 – 8 Total 194 132 326 370 261 631

65

Operating costs metric

HY to 30 September (£m) H1 2016 H1 2017 Property operating expenses 17 15 Administrative expenses1 49 43 Net fees and other income1 (7) (8) Ground rent costs (1) (1) EPRA Costs (including direct vacancy costs) 58 49 Gross rental income 326 327 Ground rent costs (1) (1) Gross Rental Income (EPRA basis) 325 326 EPRA Cost Ratio (including direct vacancy costs) 17.8% 15.0%

Table shows figures on a proportionately consolidated basis which includes the Group's share of joint ventures and funds and excludes non-controlling interests in the Group's subsidiaries.

• Group. This restatement has had no impact on Underlying Profit.

66

Administrative Expenses

HY to 30 September (£m) H1 2016 H1 2017 Personnel Costs 26 26 Share Scheme Costs 8 3 Other Administrative Expenses 15 14 Total – British Land 49 43 Broadgate Estates 2 2 Total – Group 51 45 Capitalised Costs (2) (2) Total Administrative Expenses 49 43

Table includes the Group's share of joint ventures and funds and excludes non-controlling interests in the Group's subsidiaries.

67

Reduction in diluted EPRA net asset value

919p 891p (22p) (17p) 18p (13p) (4p) 10p

Mar 16 Offices & Residential Retail & Leisure Underlying Profit Dividends Debt transaction costs & other Reversal of 2012 convertible bond dilution Sep 16

68

Strength of debt metrics

Proportionally Consolidated 31 Mar 2016 30 Sep 2016 Loan to Value (LTV) 32.1% 31.6% Weighted Average Interest Rate 3.3% 3.2% Interest Cover 3.0x 3.5x Average Maturity of Drawn Debt (years) 8.1 8.0 Group 31 Mar 2016 30 Sep 2016 Loan to Value (LTV) 25.2% 24.6% Available undrawn facilities £1.2bn £1.0bn Weighted Average Interest Rate 2.6% 2.5% Interest Cover 3.3x 4.4x Fitch Senior Unsecured rating A- A-

69

Adjusted net debt – proportionally consolidated (£bn)

4.8 4.5 0.1 0.1 (0.5) Mar 16 Net Debt Acquisitions Development & Capex Disposals Sep 16 Net Debt

LTV 32.1% LTV 31.6%

70

Debt maturity (£m)

Convertible Bond (Unsecured) Bank RCF Drawn (Unsecured)

Year to March

Debenture & loan notes (Secured) US Private Placements (Unsecured) Bank RCF Undrawn (Unsecured) 200 400 600 800 1000 1200 1400 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036 JVs – Securitisations JVs & Funds – Bank drawn Funds – Bank undrawn

71

Debt Financing – Diverse profile

• Weighted Average Interest Rate

reduced by 10 bps to 3.2%

• Average debt term 8.0 years
• £1.7bn of revolving credit facilities

available within British Land

• Proportion of debt at fixed rate

52% average over the next 5 years

• The Group has no requirement to

refinance until 2020

• Fitch Senior Unsecured rating A-

£0.6bn £0.8bn £0.8bn £0.7bn £1.4bn £0.5bn

Diverse Debt Profile1 (30 September 2016)

Debentures & loan notes (Secured) Bank RCFs Drawn (Unsecured) US Private Placements (Unsecured)

JV & Funds Term Loans (Secured)2 Convertible Bonds (Unsecured) JVs Securitisations

72

Number of shares

Number of shares (m) 31 Mar 16 30 Sep 16 IFRS Basic Weighted Average1 1,025 1,029 IFRS Diluted Weighted Average2 1,089 1,091 Underlying/EPRA Diluted Weighted Average3 1,089 1,033 Period End4 1,096 1,039

73

Valuation performance

6 months to September 2016 Valuation £bn Movement £m Movement % Yield Expansion bps ERV Growth % NEY % Weighting % Retail & Leisure 6.8 (178) (2.4) 18 0.9 5.3 49 Offices & Residential 6.8 (238) (3.3) 21 0.1 4.6 49 Canada Water 0.3 (6) (2.1) 4 0.9 3.3 2 Total 13.9 (422) (2.8) 19 0.5 4.9 100 – Of which Standing Investments 13.1 (395) (2.8) – Of which Development 0.8 (27) (3.0)

74

Valuation growth drivers – Retail & Leisure

6 months to September 2016 Valuation £bn Movement £m Movement % Yield Expansion bps ERV Growth % H1 H1 H1 Regional 2.9 (83) (2.8) 16 1.3 Local 2.2 (116) (4.8) 29 1.3 Multi-let 5.1 (199) (3.7) 22 1.3 Dept St + Leisure 0.6 32 3.2 4 0.4 Superstores 0.7 (24) (3.0) 8 (3.0) Solus/Other 0.3 13 3.7 9 4.8 Retail & Leisure 6.8 (178) (2.4) 18 0.9

75

Valuation growth drivers – Offices & Residential

6 months to September 2016 Valuation £bn Movement £m Movement % Yield Expansion bps ERV Growth % H1 H1 H1 West End 3.9 (95) (2.4) 16 0.3 City 2.7 (143) (4.9) 27 (0.2) Offices 6.6 (238) (3.5) 21 0.1 Residential 0.2 – – Offices & Residential 6.8 (238) (3.3)

76

Investment Activity

6 months to 30 September 2016 Retail £m Offices £m Residential £m Canada Water £m Total £m Purchases 82 – – 8 90 Sales1 (690) – (20) – (710) Net Purchases/Sales (608) – (20) 8 (620) Development Spend 12 70 13 5 100 Capital Spend 47 4 – – 51 Net Investment (549) 74 (7) 13 (469) Gross Investment 831 74 33 13 951

77

Acquisitions

6 months to 30 September 2016 Sector Region Price (Gross) £m Price (BL Share) £m Annual Passing Rent £m2 Completed New George Street Estate, Plymouth Retail South 64 64 5 Hercules Unit Trust unit purchase1 Retail Various 18 18 1 Dock Offices Canada Water London 8 8 – Total 90 90 6

78

Disposals

6 months to 30 September 2016 Sector Region Price (Gross) £m Price (BL Share) £m Annual Passing Rent £m1 Completed Debenhams, Oxford Street Retail London 400 400 13 Superstores Retail Various 147 79 3 Dumfries Cuckoo Bridge Retail Scotland 20 20 1 The Hempel Collection Residential London 5 5 – Aldgate Place Residential London 13 6 – Exchanged2 Portfolio of retail assets (Debenhams Manchester, York Clifton Moor, Wakefield Westgate) Retail North 191 191 12 The Hempel Collection Residential London 8 8 – Aldgate Place Residential London 1 1 – Total 785 710 29

79

Total Property Return (as calculated by IPD)

6 months to 30 September 2016 Retail Offices Total % British Land IPD British Land IPD British Land IPD Capital Return (2.4) (3.0) (3.4) (2.9) (2.8) (2.1)

• ERV Growth

0.9 0.5 0.1 1.0 0.5 0.8

• Yield Expansion1

18 bps 20 bps 21 bps 21 bps 19 bps 15 bps Income Return 2.6 2.5 1.7 1.8 2.1 2.3 Total Property Return 0.1 (0.5) (1.8) (1.1) (0.8) 0.2

80

BL property outperformance vs IPD – 5 years

100 310 160 120 200 90

50 100 150 200 250 300 350 Retail Offices Total

5 years ended 30 September 2016

Capital Returns Total Returns

Outperformance bps pa

81

BL property outperformance vs IPD – 3 years

50 170 60 70 80 10

20 40 60 80 100 120 140 160 180 Retail Offices Total

3 years ended 30 September 2016

Capital Returns Total Returns

Outperformance bps pa

Appendices – Portfolio

83

High quality, diverse occupier base

As at 30 September 2016 % of Contracted Rent

UBS AG1 5.8% Tesco plc 5.7% J Sainsbury plc 4.7% Debenhams 3.8% Kingfisher (B&Q) 2.6% Next plc 2.3% HM Government 2.2% Virgin Active 2.0% Facebook 1.7% Wesfarmers (Homebase/Bunnings) 1.6% Spirit Group 1.6% M&S Plc 1.5% Alliance Boots 1.5% Visa Inc 1.4% Dixons Carphone 1.4% Dentsu Aegis 1.4% Arcadia Group 1.3% Herbert Smith 1.2% RBS 1.1% TJX Cos Inc (TK Maxx) 1.0% General Retail 16% Fashion & Beauty 16% Supermarket 11% Professional & Corporate 9% Food/Leisure 10% DIY 7% TMT 7% Other 7%

3.0% pro-forma for run off of rent at 1-3 Finsbury Avenue and 100 Liverpool Street.

Occupier split by sector by rent

Banks & Financial Services 17% Upcoming expiries2 5% UBS – 5 Broadgate 3% Other banks 4% Total banks 12% Asset Management & Other Financial 5%

84

At 30 September 2016 Group JVs & Funds1 Total H1 Change2 £m £m £m % £m Regional 1,087 1,791 2,878 (2.8) (83) Local 1,796 471 2,267 (4.8) (116) Multi-let 2,883 2,262 5,145 (3.7) (199) Department Stores and Leisure 638 1 639 3.2 32 Superstores 139 542 681 (3.0) (24) Solus and Other 346 – 346 3.7 13 Retail and Leisure 4,006 2,805 6,811 (2.4) (178) West End 3,868 – 3,868 (2.4) (95) City 103 2,653 2,756 (4.9) (143) Offices 3,971 2,653 6,624 (3.5) (238) Residential3 173 22 195 – – Offices and Residential 4,144 2,675 6,819 (3.3) (238) Canada Water 289 – 289 (2.1) (6) Total 8,439 5,480 13,919 (2.8) (422) Standing Investments 7,810 5,287 13,097 (2.8) (395) Developments 629 193 822 (3.0) (27)

(classified by end use), purchases and sales

Portfolio valuation by sector

85

At 30 September 2016 EPRA net initial yield % EPRA topped up net initial yield %

3

Overall topped up net initial yield %

4

Net equivalent yield % Net equivalent yield expansion bps

5

Net reversionary yield % ERV Growth %

5,6

Regional 4.5 4.7 4.7 5.0 16 5.0 1.3% Local 5.1 5.3 5.4 5.5 29 5.5 1.3% Multi-let 4.8 4.9 5.0 5.2 22 5.2 1.3% Department Stores and Leisure 6.0 6.0 7.5 6.1 4 4.5 0.4% Superstores 5.5 5.5 5.5 5.4 8 5.3 (3.0%) Solus & Other 5.7 5.7 5.7 5.3 9 4.9 4.8% Retail and Leisure 5.0 5.1 5.3 5.3 18 5.1 0.9% West End 3.8 4.0 4.1 4.5 16 4.8 0.3% City 3.3 4.6 4.6 4.6 27 5.3 (0.2%) Offices 3.6 4.2 4.3 4.6 21 5.0 0.1% Canada Water 2.7 2.7 2.8 3.3 4 3.4 0.9% Total 4.3 4.7 4.8 4.9 19 5.0 0.5%

Portfolio yields & ERV movements1,2

86

At 30 September 2016 Average Lease Length (yrs) Occupancy Rate (%) To Expiry To Break Occupancy Occupancy (underlying)2 Regional 8.0 6.9 96.6 98.1 Local 8.4 7.4 97.6 98.0 Multi-let 8.2 7.2 97.1 98.1 Department Stores and Leisure 18.3 18.2 99.9 99.9 Superstores 12.0 11.6 100.0 100.0 Solus & Other 13.0 12.8 100.0 100.0 Retail and Leisure 10.0 9.2 97.8 98.5 West End 9.1 7.2 95.5 96.7 City 10.1 8.5 98.2 98.5 Offices 9.6 7.8 96.8 97.5 Canada Water 7.1 6.9 96.9 98.1 Total 9.8 8.5 97.3 98.1

Lease length and occupancy1

87

At 30 September 2016 Annualised Rents (Valuation Basis) £m2 ERV £m Average Rent (£psf) Group JVs & Funds3 Total Total Contracted4 ERV Regional 60 85 145 158 31.2 33.3 Local 98 28 126 135 24.3 25.2 Multi-let 158 113 271 293 27.6 29.0 Department Stores and Leisure 41 – 41 32 13.8 10.6 Superstores 8 32 40 38 20.7 19.7 Solus & Other 20 – 20 17 19.8 17.0 Retail and Leisure 227 145 372 380 23.7 23.7 West End 137 – 137 171 53.0 61.7 City 4 88 92 149 51.0 60.2 Offices 141 88 229 320 52.4 60.9 Residential5 4 – 4 4 Offices and Residential 145 88 233 324 Canada Water 8 – 8 10 18.5 21.7 Total 380 233 613 714 29.7 31.9

excludes contracted rent subject to rent free and future uplift

Annualised rent & estimated rental value (ERV)1

88

Rent subject to open market rent review1

For period to 31 March 2017 2018 2019 2020 2021 2017–19 2017–21 At 30 September 2016 £m £m £m £m £m £m £m Regional 6 11 17 10 18 34 62 Local 4 25 21 12 10 50 72 Multi-let 10 36 38 22 28 84 134 Department Stores and Leisure – – – – – – – Superstores 1 4 8 11 13 13 37 Solus & Other – – – – – – – Retail and Leisure 11 40 46 33 41 97 171 West End 4 22 20 15 9 46 70 City – 4 14 14 16 18 48 Offices 4 26 34 29 25 64 118 Canada Water – 2 – – – 2 2 Total 15 68 80 62 66 163 291 Potential uplift at current ERV2 – 2 4 3 1 6 10

89

Rent subject to lease break or expiry1

For period to 31 March 2017 2018 2019 2020 2021 2017–19 2017–21 At 30 September 2016 £m £m £m £m £m £m £m Regional 6 15 9 13 10 30 53 Local 6 5 8 11 9 19 39 Multi-let 12 20 17 24 19 49 92 Department Stores and Leisure – 1 – – – 1 1 Superstores – – – – – – – Solus and Other – – 2 – – 2 2 Retail and Leisure 12 21 19 24 19 52 95 West End 6 11 10 4 18 27 49 City 10 – 18 11 8 28 47 Offices2 16 11 28 15 26 55 96 Canada Water 1 – – – 1 1 2 Total 29 32 47 39 46 108 193 % of contracted rent 4.3% 4.7% 6.9% 6.0% 6.7% 15.9% 28.6% Potential uplift at current ERV (excl. Near and Medium Term developments) 2 2 6 1 2 10 13

90

Rent resetting to market

For period to 31 March 2017 2018 2019 2020 2021 2017–19 2017–21 At 30 September 2016 £m £m £m £m £m £m £m Rent expiring – existing portfolio (per slide 76) 29 32 47 39 46 108 193 Developments – committed & under Construction – 10 – 19 – 10 29 Total Rent Resetting to Market excluding Near Term Developments 29 42 47 58 46 118 222 Near term developments – expiries (7) – – – – (7) (7) Near term developments – completions – – 8 3 – 8 11 Total Rent Resetting to Market including Near Term Developments 22 42 55 61 46 119 226 ERV of current vacancies1,2 19 – – – – 19 19 Vacant & Income Expiring 41 42 55 61 46 138 245

91

Contracted rental increases (cash flow basis)

For period to 31 March 2017 2018 2019 2020 2021 2017–19 2017–21 At 30 September 2016 £m £m £m £m £m £m £m Expiry of rent free periods 29 14 3 1 – 46 47 Fixed uplifts (EPRA basis) – 1 1 – – 2 2 Fixed & minimum uplifts in lieu

• f rental growth

3 1 1 1 1 5 7 Total 32 16 5 2 1 53 56

92

Stand-alone Superstores1 In Multi-let assets2 Total Exposure1,2,3

Store Size ‘000 sq ft Number

• f

stores Valuation (BL share) £m Capital Value psf WALL to FB yrs Number

• f

stores Valuation (BL share) £m Capital Value psf WALL to FB yrs Number

• f

stores Valuation (BL share) £m Capital Value psf WALL to FB yrs >100 8 171 256 11.9 5 339 423 12.5 13 510 347 12.3 75–100 11 197 398 12.1 3 61 276 15.8 14 258 361 13.0 50–75 16 248 353 12.1 1 12 189 10.6 17 260 339 12.0 25–50 8 50 220 7.8 2 27 502 13.0 10 77 274 9.4 0–25 2 6 145 8.6 18 79 426 10.6 20 85 373 10.4 September 2016 45 672 315 11.6 29 518 391 12.6 74 1,190 344 12.1 March 2016 47 763 383 13.9 28 536 482 12.7 75 1,299 419 13.5

Geographical Spread Gross Rent (BL Share) Lease Structure

London & South 54% Tesco £38m RPI and Fixed 9% Rest of UK 46% Sainsbury’s £26m OMRR 91% Other £5m

Superstores

Appendices – Developments

94

At 30 September 2016 Sector BL Share Sq ft PC Calendar Year Current Value Cost to Complete ERV Let & Under Offer Resi Sales Exchanged & not Completed % '000 £m1 £m2 £m3 £m £m4 Aldgate Place, Phase 1 Residential 50 221 Completed 7 9 – n/a – Clarges Mayfair – Offices Offices 100 51 Completed 120 9 5.5 2.0 n/a Glasgow Fort Leisure Quarter Retail 75 12 Completed 8 – 0.4 0.3 n/a Total Completed in Period 284 135 18 5.9 2.3 – 4 Kingdom Street Offices 100 147 Q2 2017 111 39 9.4 – n/a Clarges Mayfair – Retail and Residential Residential 100 114 Q4 2017 322 74 0.8 – 259 The Hempel Phase 1 Residential 100 25 Q4 2016 16 1 n/a n/a 13 The Hempel Phase 2 Residential 100 32 Q4 2016 55 6 n/a n/a 14 100 Liverpool Street Offices 50 520 Q4 2019 115 157 18.5 – – Total Under Construction & Committed 838 619 277 28.7 – 286 Retail Capital Expenditure5 117

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

Recently completed & committed developments

95

At 30 September 2016 Sector BL Share % Sq ft '000 Start On Site Total Cost

1

£m Status Near term Pipeline 1 Finsbury Avenue Offices 50 281 2017 102 Consented Speke (Leisure) Retail 67 66 2017 18 Consented Plymouth (Leisure) Retail 100 102 2018 35 Consented Total Near Term 449 155 Retail Capital Expenditure 2 100 Medium term Pipeline 2-3 Finsbury Avenue Offices 50 560 Resolution to grant 135 Bishopsgate Offices 50 340 Pre-submission Blossom Street Offices 100 340 Consented 1 Triton Square Offices 100 338 Submitted 5 Kingdom Street Offices 100 240 Consented Gateway Building Offices 100 104 Pre-submission Aldgate Phase 2 Residential 50 145 Consented Canada Water Phase 13 Mixed Use 100 5,500 Pre-submission Bradford (Retail & Leisure) Retail 100 43 Consented Meadowhall Leisure Retail 50 330 Submitted Eden Walk Retail & Residential Mixed Use 50 562 Resolution to grant Total Medium Term 8,502

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

Development pipeline

96

Residential development programme

At 30 September 2016 Sq Ft No. Market Units PC Date/ Status BL Share Current Value1 Cost to come2 Sales Exchanged & not Completed1,3 '000 % £m £m £m

Clarges Mayfair4 103 34 Q4 2017 100 308 72 259 Mixed use 103 34 308 72 259 The Hempel Phase 1 25 15 Q4 2016 100 16 1 13 The Hempel Phase 2 32 19 Q4 2016 100 55 6 14 Aldgate Place Phase 1 221 154 Completed 50 7 9

• Residential-led

278 188 78 16 27 Total Committed Residential 381 222 386 88 286

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

97

At 30 September 2016 PC Calendar Year Cost to complete £m (excluding notional interest) – 6 mths Mar-17 Sep-17 Mar-18 Sep-18 Mar-19 Sep-19 Total 4 Kingdom Street 2017 30 4 4 1 – – 39 Clarges Mayfair 2017 53 13 3 3 1 – 74 The Hempel Phase 1 2016 1 – – – – – 1 The Hempel Phase 2 2016 4 1 1 – – – 6 100 Liverpool Street 2019 12 18 29 32 26 19 157 Total Committed & Under Construction 100 36 37 36 27 19 277 Total Near Term 2 9 19 16 15 12 76 Indicative Interest Capitalised on above at attributable rates1 4 1 2 2 1 2 Contracted Residential receipts 28 – 184 – – –

Estimated future development spend and capitalised interest

98

Estimated future development rental income (accounting basis)

At 30 September 2016 PC Calendar Year Gross Rental Income (Accounting basis) £m Mar-17 Mar-18 Mar-19 Mar-20 Mar-21 Under Construction & Committed developments Clarges Retail Q4 2017 Non-contracted – – 1 1 1 4 Kingdom Street Q2 2017 Non-contracted – 3 8 8 8 100 Liverpool Street Q4 2019 Non-contracted – – – 3 15 Non-contracted – 3 9 12 24

Appendices – Market

100

5 10 15 20 2015 2016 Q1 Q2 Q3 Q4 Long term average 5 10 15 20 2015 2016 Q1 Q2 Q3 Q4

Investment market

• Strong demand for long, secure income
• Falling values in secondary locations

Investment volumes £bn £bn

Central London Office Retail

• 51%
• 36%

Source: Shopping centres and OOT – CBRE; Supermarkets – Morgan Williams; Central London offices – Knight Frank. Retail data includes: Shopping centres, out of town (£15m+ parks, 3+ tenants) and supermarkets

Long term average

101

0.0 2.0 4.0 6.0 8.0 10.0 All Retail Central London Offices

Retail and London Office Yields

Property Yields and interest rate yield gap

Source: IPD Source: IPD/Bloomberg

Property Yield vs 10 Year Gilt Yields

% NIY %

2016 (2.00)

• 2.00

4.00 6.00 8.00 10.00 1994 1997 2000 2002 2005 2007 2010 2012 2015 Yield Gap UK 10 Year Gilt Yield IPD All Property Net Initial Yield

102

Central London take up

Q4 2016

Completed Pipeline Pre-let 10 year rolling average new and under-construction take-up

Source: CBRE

m sq ft

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

103

0.0 2.0 4.0 6.0 8.0 10.0 12.0 14.0 00 01 02 03 04 05 06 07 08 09 10 11 12 13 14 15 16 17 18 19 20 21

Central London development pipeline

Q4 2016

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

Note: Forecast reflects agent’s estimate of earliest completions. Source: CBRE, British Land

m sq ft

104

West End development pipeline

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

Note: Forecast reflects agent’s estimate of earliest completions Source: CBRE

Q4 2016

m sq ft

105

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

City development pipeline

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

Note: Forecast reflects agent’s estimate of earliest completions Source: CBRE

Q4 2016

m sq ft

106

2 4 6 8 10 12 14 16 18 20 1985 1990 1995 2000 2005 2010 Q4 2016

Vacancy Central London

West End & City Vacancy Rates

Source: CBRE (historic)

City Void Rate (Period end) West End Void Rate (Period end) 10 year rolling average - City 10 year rolling average – West End

107

20 40 60 80 100 120 140

London office market rental outlook

Prime London Office Rents

2002 2001 2000 1999 1998 1997 1996 1995 1994 1993 1992 1991 1990 2009 2010 2011 2012 2013 2003 2004 2005 2006 2007 2008 2020 2014 2015 2016 2017 2018 2019

Actual Forecast

West End City

Source: CBRE (historic) and Average Agents' Consensus (including PMA, November 16) for forecasts

£ psf

108

Disclaimer

The information contained in this presentation has been extracted largely from the Half Year Results Announcement for the period ended 30 September 2016 and is provided solely for information purposes. It does not constitute an offer to sell or the solicitation of an offer to subscribe for or buy any security, nor a solicitation of any vote or approval in any jurisdiction, nor shall there be any sale, issuance or transfer of the securities referred to in this presentation in any jurisdiction in contravention of applicable law. The distribution of this presentation in jurisdictions other than the UK may be restricted by applicable law and regulation, and therefore any persons who are subject to the laws of any jurisdiction other than the UK should inform themselves of, and observe, any applicable requirements. Information contained in this presentation relating to British Land or its share price or the yield on its shares are not guarantees of, and should not be relied upon as an indicator of, future performance. Nothing in this presentation should be construed as a profit forecast or profit estimate. This presentation may contain certain ‘forward-looking’ statements. Such statements reflect current views on, among other things, our markets, activities, projections,

• bjectives and prospects. Such ‘forward-looking’ statements can sometimes, but not always, be identified by their reference to a date or point in the future or the use of

‘forward-looking’ terminology, including terms such as ‘believes’, ‘estimates’, ‘anticipates’, ‘expects’, ‘forecasts’, ‘intends’, ‘due’, ‘plans’, ‘projects’, ‘goal’, ‘outlook’, ‘schedule’, ‘target’, ‘aim’, ‘may’, ‘likely to’, ‘will’, ‘would’, ‘could’, ‘should’ or similar expressions or in each case their negative or other variations or comparable

• terminology. By their nature, forward-looking statements involve inherent risks, assumptions and uncertainties because they relate to future events and depend on

circumstances which may or may not occur and may be beyond our ability to control or predict. Forward-looking statements should be regarded with caution as actual results may differ materially from those expressed in or implied by such statements. Important factors that could cause actual results, performance or achievements of British Land to differ materially from any outcomes or results expressed or implied by such forward-looking statements are set out in the section headed “forward-looking statements” in the Half-Year Results Announcement. Forward-looking statements in this presentation which are attributable to British Land or persons acting on its behalf should therefore be construed in light of all such factors. Any forward-looking statements made by or on behalf of British Land speak only as of the date they are made. Such forward-looking statements are expressly qualified in their entirety by the factors referred to above and no representation, assurance, guarantee or warranty is given in relation to them (whether by British Land or any of its associates, directors, officers, employees or advisers), including as to their completeness, accuracy or the basis on which they were prepared. Other than in accordance with our legal and regulatory obligations (including under the UK Financial Conduct Authority’s Listing Rules, the Disclosure Rules and Transparency Rules and the Market Abuse Regulation), British Land does not intend or undertake to update or revise forward-looking statements to reflect any changes in British Land’s expectations with regard thereto or any changes in information, events, conditions or circumstances on which any such statement is based. This presentation shall not, under any circumstances, create any implication that there has been no change in the business or affairs of British Land since the date of this document or that the information contained herein is correct as at any time subsequent to this date.