T he UKs le a ding de ve lope r a nd ma na g e r of stude nt a c c - - PowerPoint PPT Presentation

T he UK’s le a ding de ve lope r a nd ma na g e r of stude nt a c c ommoda tion

Pre limina ry Re sults Ye a r e nde d 31 De c e mbe r 2012

HIGHL IGHT S

Stro ng fina nc ia l pe rfo rma nc e

• 11.3% to ta l re turn
• NPC up 74% to £19.1m
• NAV pe r sha re up 10% to 350pps
• F

ina l divide nd inc re a se d to 3.0pps

Po rtfo lio q ua lity e nha nc e d furthe r

• No n c o re a sse t dispo sa l ta rg e t a c hie ve d
• 2012 de ve lo pme nts c o mple te d to pla n
• L
• ndo n we ig hting inc re a se d to 50% (b uilt o ut)

F

ina nc ia l po sitio n stre ng the ne d

• Se e thro ug h L

T V re duc e d to 52%

• De b t fa c ilitie s e xte nde d a nd dive rsifie d

Po sitive o utlo o k

• Suppo rtive Go ve rnme nt po lic y mo ve s
• 62% re se rva tio ns fo r 2013/ 14
• 19pps se c ure d future de ve lo pme nt pro fit a nd

g o o d pro g re ss with L SAV pipe line

• Re nta l g ro wth e xpe c te d in line with re c e nt ye a rs

31 De c 2012

31 De c 2011 Ne t Po rtfo lio Co ntrib utio n

£19.1m

£11.0m Adjuste d E PS

9.9p

2.6p Adjuste d NAV pe r sha re

350p

318p F ina l divide nd pe r sha re

3.0p

1.25p T

• ta l re turn

11.3%

8.1% Se e thro ug h L T V

52%

54% Ope ra tio ns c a shflo w

£17.2m

£13.8m Re se rva tio ns*

62%

59% Se c ure d future de ve lo pme nt pro fit

19pps

25pps

2 * Re se rva tio ns a t 5 Ma rc h

ST RAT E GY AND MARKE T

RE NT AND OCCUPANCY OUT L OOK

Po sitive Go ve rnme nt po lic y a nno unc e me nts

suppo rt stro ng re c o ve ry in inta ke fo r 2013/ 14

• Mo re fle xib le a dmissio ns pro c e ss
• De fe rra ls re turning to no rma lise d le ve ls

I

nc re a se in a pplic a tio ns illustra te s unde rlying de ma nd

• 3.5% up ye a r o n ye a r (UCAS Ja n 13)
• 18-19 ye a r o ld pa rtic ipa tio n a t a ll time hig h
• No n-E

U a pplic a tio ns up 9.6%

• L

ike ly to b e >190,000 unpla c e d a pplic a nts (188,000 in 2012)

F

• re c a st 25,000-30,000 hig he r 2013/ 14 inta ke
• Stro ng e r Unive rsitie s b e st pla c e d to b e ne fit

Ne t de ma nd/ supply mo ve me nt o f c .+18,000

• 9,500 ne w b e ds fo r 2013/ 14

Re nta l g ro wth pro spe c ts in line with re c e nt

ye a rs

4

UCAS a pplic a nts a s a t 15 Ja n de a dline UCAS a pplic a tio ns a nd a c c e pta nc e s

YIE L D OUT L OOK

Ave ra g e yie lds sta b le a t 6.6%

• F

la t o ve ra ll sinc e la te 2009

• Yie ld ra ng e wide ning (no w 200 b ps)

L

iq uidity c o ntinue s to impro ve

• £2.7b n tra nsa c tio ns in 2013

I

nve sto r a ppe tite stro ng e st fo r lo ng Unive rsity le a se s a nd L

• ndo n
• Pro spe c t o f so me yie ld c o mpre ssio n in 2013
• We a ke r pro vinc ia l lo c a tio ns like ly to se e

so me yie ld e xpa nsio n

UNI

T E we ll po sitio ne d

• L
• ndo n we ig hting 50% o n b uilt o ut b a sis
• £205m dispo sa ls sinc e 2H11 suppo rtive o f

va lua tio n

Built o ut po rtfo lio b re a kdo wn I ndic a tive sta b ilise d yie lds

Asse t type L e a se type NI yie ld ra ng e T re nd L

• ndo n

le a se / no ms* 5.35 – 5.6% stro ng e r d ire c t le t 6.0 – 6.25% sta b le Ma jo r pro vinc ia l le a se / no ms* 5.85 – 6.1% stro ng e r dire c t le t 6.5 – 7.0% sta b le Pro vinc ia l le a se / no ms* 6.35 – 6.6% sta b le dire c t le t 7.1 – 7.35% we a ke r

* No ms: No mina tio ns a g re e me nts with lo ng -te rm inc o me g ua ra nte e fro m a Unive rsity

Built o ut va lue £m Built o ut % Ce ntra l L

• ndo n

352 24% Zo ne 2 L

• ndo n

81 6% Affo rda b le L

• ndo n

290 20%

L

• ndon

723 50%

Re g io ns 717 50%

1,440 100%

5

CONSIST E NT ST RAT E GY

L

• ndo n fo c us

Mix o f pro duc t, pric e

po int a nd lo c a tio n

9% yie ld o n c o st ta rg e t L

SAV a llo ws a c c e le ra tio n

• f L
• ndo n a c tivity

I

nte re sting o ppo rtunitie s e me rg ing in re g io ns

T a rg e t lo w do ub le -dig it to ta l re turns o n NAV, with mo de st risk

De ve lo pme nt Ca pita l g ro wth I nc o me g ro wth

F

• c us o n L
• ndo n a nd

stro ng e r Unive rsitie s

50/ 50 L

• ndo n/ re g io ns split

Bra nde d se rvic e pla tfo rm Co nsiste nt re nta l g ro wth L

e ve ra g e c .50% L T V

Re nta l g ro wth Ne w o pe ning s Ope ra ting e ffic ie nc y (ta rg e t

75% NOI ma rg in b y 2015)

T

a rg e t 4.5% E PS yie ld o n NAV b y 2015

Divide nd pa yo ut ra tio o f ⅓

NPC, >2.5x c a sh c o ve r

6

F INANCIAL RE VIE W

F INANCIAL HIGHL IGHT S

2012 2011 Move me nt

Inc ome

Ne t Po rtfo lio Co ntrib utio n

£19.1m

£11.0m +74% Adjuste d E PS (pre UMS fo r 2011)

9.9p

2.6p +280% Adjuste d E PS yie ld o n NAV

3.1%

0.9% +244% Divide nd pe r sha re – full ye a r

4.0p

1.75p +128%

Ba la nc e She e t

NAV (a djuste d, fully dilute d pe r sha re )

350p

318p +10% T

• ta l re turn

11.3%

8.1% +40% Se e -thro ug h L T V

52%

54%

• 2%

Ca sh flow

Ope ra ting c a shflo w

£17.2m

£13.8m +25%

8

ADJUST E D NAV BRIDGE – BAL ANCE D RE T URNS

Re nta l g ro wth o f 3% o n c o mple te d po rtfo lio De ve lo pme nt pro fits: 40% o f re turn, 12% o f c a pita l Swa p c lo se -o uts a sso c ia te d with L

&G fa c ility a nd dispo sa ls

Adjuste d E

PS yie ld o f 3.1%

9

(7) 11 17 13 (2) 318 350 300 310 320 330 340 350 360 370 31-De c -11 Re nta l g ro wth De ve lo pme nt Swa p c lo se o uts Re ta ine d pro fit Divide nd 31-De c -12

Pe nc e pe r sha re

NE T PORT F OL IO CONT RIBUT ION AND ADJUST E D E ARNINGS

NPC up 74% to £19.1m

• 90% c a sh c o nve rsio n
• L

F L re nta l g ro wth o f 3%

• Ne w o pe ning s
• Co st e ffic ie nc ie s

NOI

ma rg in inc re a se d to 71%

• F

urthe r o ppo rtunitie s re ma in, pa rtic ula rly te c hno lo g y

• T

a rg e ting 75% NOI ma rg in b y 2015

Ove rhe a ds le ss fe e s a s % GAV re duc e d

to 92 b ps

• Annua lise d sa ving s impa c t in 2013
• I

nc re a sing o ve rhe a d e ffic ie nc y ta rg e t to 60 b ps fo r 2015

Gre a te r visib ility o f E

PS g ro wth

• No n-NPC ite ms simplifie d
• T

a rg e t 4.5% a djuste d E PS yie ld fo r 2015

10

¹ F ina nc e c o sts inc lude ne t inte re st o f £35.7m a nd le a se pa yme nts o f £12.8m

• n sa le a nd le a se b a c k pro pe rtie s

2012 £m 2011 £m T

• ta l inc o me

240.2 219.5 UNI T E sha re o f re nta l inc o me 111.4 95.6 UNI T E sha re o f o pe ra ting c o sts (32.3) (29.4) UNI T E ’ s NOI 79.1 66.2 NOI margin 71.0% 69.2% F e e s fro m JVs 10.3 10.1 Ove rhe a ds (21.8) (21.6) F ina nc e c o sts¹ (48.5) (43.7)

NPC 19.1 11.0

De ve lo pme nt pre -c o ntra c t c o sts (2.7) (3.3) L a ndsb a nki, re struc turing , o the r (0.5) (3.6)

E PRA a djuste d profit (pre UMS for 2011) 15.9 4.1

Adjuste d E PS 9.9p 2.6p

SE E T HROUGH BAL ANCE SHE E T AND INCOME ST AT E ME NT

11

Who lly o wne d £m USAF / JVs (UNI T E sha re ) £m

UNIT E se e throug h De c 12 £m

UNI T E se e thro ugh De c 11 £m

Balanc e she e t Re nta l Pro pe rtie s 763 399

1,162

1,017 Pro pe rtie s unde r de ve lo pme nt 83

• 83

189 T

• ta l pro pe rty po rtfo lio

846 399

1,245

1,206 Ne t de b t (453) (195)

(648)

(646) Othe r a sse ts/ (lia b ilitie s) (23) (7)

(30)

(46)

Adjuste d ne t a sse ts 370 197 567

514

Adjuste d L T V 53% 49% 52% 54%

Inc ome state me nt

2012

2011 Ne t o pe ra ting inc o me 54.8 24.3

79.1

66.2 Ove rhe a ds le ss ma na g e me nt fe e s (8.3) (3.2)

(11.5)

(11.5) F ina nc e c o sts (37.5) (11.0)

(48.5)

(43.7)

Ne t Portfolio Contribution 9.0 10.1 19.1

11.0

CAPIT AL ST RUCT URE

2012 2011 Ne t de b t: Ba la nc e she e t £453m £434m Se e -thro ug h £648m £646m Se e thro ug h L T V 52% 54% Ave ra g e se e thro ug h c o st o f de b t 5.5% 5.7% WAL M 4.9 ye a rs 2.6 ye a rs Pro po rtio n no n-b a nk de b t 43% 26%

De b t dive rsity, ma turity a nd c o st pro file

impro ve d

• 43% o f de b t fro m no n-b a nk so urc e s
• WAL

M e xte nde d to 4.9 ye a rs

• Ave ra g e c o st re duc e d to 5.5%
• 16% unse c ure d

2013 prio ritie s a re in c o -inve stme nt ve hic le s

to a ddre ss 2014 ma turitie s

• USAF

CMBS re pla c e me nt

• UCC re fina nc e
• L

SAV de ve lo pme nt fina nc e

Re fina nc ing a c tivity o ffe rs o ppo rtunity to

re duc e c o st o f de b t

On tra c k fo r 50% se e -thro ug h L

T V b y De c e mb e r 2013

• Will c o ntinue to re duc e ste a dily the re a fte r

Swa p c lo se -o ut c o sts a sma ll dra g o n NAV

g ro wth

• 7 pps in 2012, like ly 4-6pps in 2013

Ke y de bt sta tistic s De bt ma turity profile

12

ASSE T DISPOSAL S

Dispo sa l a c tivity suppo rtive o f va lua tio ns T

a rg e ting c .£100m no n-c o re dispo sa ls fo r 2013

• £50-75m who lly o wne d
• L

e g a c y NHS pro pe rtie s a prio rity (va lue c .£25m)

13

2012 2011

Pro c e e ds Bo o k va lue Pro c e e ds Bo o k va lue £m £m £m £m

Ope n ma rke t tra nsa c tions

Co mple te d / e xc ha ng e d Who lly o wne d 71 73 7 6 USAF 21 21

• UCC

21 19 8 7 T

• ta l

113 113 15 13

Asse t sa le s to JV Pa rtne rs

77 77

• T
• ta l

190 190 15 13

Ave ra g e yie ld 6.4% 6.4% 6.4% 6.4%

CO- INVE ST ME NT VE HICL E S

USAF £m UCC £m L SAV £m OCB £m GAV 1,320 381 50 175 Bo rro wing / o the rs (595) (223) (24) (109)

Adjuste d NAV 725 158 26 66

Adjuste d L T V 43% 56% 44% 60% UNI T E sta ke 16% 30% 50% 25% 2013 to ta l re turn 14% 15% n/ a (14)% Ma turity I nfinite 2022 2022 2014 UNI T E fe e s in ye a r 6.3 3.3

• 1.0

USAFsta ke re ma ins c o re due to q ua lity

a nd dive rsific a tio n o f po rtfo lio a nd fe e stre a m

• £14m L

a ndsb a nki re c o ve ry in ye a r

• Re fina nc ing o f CMBS ta rg e te d in 2013

GI

C JVs e xte nde d a nd e xpa nde d in ye a r

• c .£100m dispo sa ls fro m UCC pla nne d
• ve r ne xt 3 ye a rs. UNI

T E to re inve st sha re o f pro c e e ds to g ro w UCC sta ke

• L

SAV pro g re ss e nc o ura g ing

• L

ike ly UCC/ L SAV me rg e r b y 2016 o nc e sta ke s e q ua lise d

OCB e xit like ly during 2013/ 14 a c a de mic

ye a r

• UNI

T E inte nds to ma inta in sta ke a nd ro le sub je c t to na ture o f ne w JV

• Ne g a tive re turn a ttrib uta b le to L
• ndo n

Zo ne 2 e xpo sure

• 12% c o mpo und a nnua l re turn sinc e

inc e ptio n

Summa ry fina nc ia ls

14

OPE RAT IONAL RE VIE W

OPE RAT IONS

Se rvic e a nd e ffic ie nc y e nha nc e d in 2012

• NOI

ma rg in inc re a se d to 71% fro m 69%

• Ove rhe a ds le ss fe e s a s % GAV re duc e d to 92b ps (2011: 95b ps)
• Annua lisa tio n b e ne fits to flo w thro ug h in 2013
• Ba la nc e o f sta nda rdisa tio n a nd fle xib ility ke y

Cle a r stra te g ic ta rg e ts e sta b lishe d fo r 2015

• NOI

ma rg in o f 75%

• Ove rhe a ds le ss fe e s a s % GAV o f 60b ps

Drive rs o f impro ve me nt: pe o ple , pro c e ss a nd te c hno lo g y

• Custo me r sa tisfa c tio n a nd a dvo c a c y a t a ll-time hig h
• I

mpro ve d o pe ra ting pla tfo rm e sta b lishe d a nd e mb e dde d

• Mo b ile te c hno lo g y e nha nc ing e ffic ie nc y a nd se rvic e

2013/ 14 sa le s pe rfo rma nc e e nc o ura g ing

• 62% re se rva tio ns a t 5th Ma rc h (2011: 59%)
• Online b o o king s up 16% ye a r o n ye a r
• Re nta l g ro wth pro spe c ts in line with re c e nt ye a rs

16

2012 DE VE L OPME NT COMPL E T IONS

Be ds Co mple te d va lue £m T

• ta l

de ve lo pme nt c o st £m T

• ta l NAV

uplift £m Pro fit o n c o st % Yie ld o n c o st % Oc c upa nc y Ave ra g e we e kly re nt £ L

• ndo n

Wa te rlo o Ro a d 146 22 15 7 47% 9.5% 100% 225 Mo o nra ke r Po int 674 110 76 34 45% 9.0% 100% 205 No rth L

• dg e

528 46 30 16 53% 11.2% 97% 158 1,348 178 121 57 47% 9.9% 99% Re g io ns K e lvin Co urt, Gla sg o w 477 31 26 5 19% 8.0% 98% 108 T

• ta l

1,825 209 147 62 42% 9.3% 98%

2012 pro g ra mme ha s drive n stro ng re turns

• 42% pro fit o n c o st
• 9.3% yie ld o n c o st

Appro xima te ly 33% o f NAV uplift re a lise d thro ug h sa le s to c o -inve stme nt ve hic le s

17

DE VE L OPME NT OUT L OOK

Go o d pro g re ss with L

SAV L

• ndo n pipe line
• 950 furthe r b e ds unde r lo c k-o ut
• 40% o f ta rg e t pipe line se c ure d/ lo c k o ut
• Oppo rtunitie s re ma in b ut ne e d to b e

hig hly se le c tive

• On tra c k fo r c .£60m pa c a pe x

c o mmitme nt to L SAV

De ve lo pme nt pipe line Be ds Co mple te d va lue £m T DC £m Ca pe x in pe rio d £m Ca pe x re ma ining £m NAV re ma ining £m Yie ld o n c o st Who lly o wne d L

• ndo n

St Pa nc ra s Wa y, Ca mde n (2014) 563 82 59 6 43 12 9.5% Stra tfo rd City, Stra tfo rd (2014) 951 83 62 30 27 6 9.1% 1,514 165 121 36 70 18 9.3% Re g io ns T re nc ha rd Stre e t, Bristo l (2015) 442 32 22

• 22

4 10.4% T

• ta l who lly o wne d

1,956 197 143 36 92 22 9.5% L SAV Ang e l L a ne , Stra tfo rd (2015) 759 81 62

• 62

19 9.1% UNI T E sha re o f L SAV 40 31 31 9 9.1% T

• ta l UNI

T E sha re 237 174

• 123

31 9.3% 18

I

nte re sting re g io na l o ppo rtunitie s e me rg ing

• T

re nc ha rd Stre e t se c ure d a t 10.4% yie ld

• Othe r o ppo rtunitie s a t simila r le ve ls
• Cha ra c te ristic s – thriving Unive rsity,

he a lthy lo c a l e c o no my

• c .£30m pa inve stme nt pla nne d in re g io na l

de ve lo pme nt. Hig hly se le c tive .

SUMMARY AND OUT L OOK

19

Stro ng fina nc ia l a nd o pe ra ting pe rfo rma nc e

• 11.3% to ta l re turn
• 3.1% E

PS yie ld o n NAV

• Gro wth in e a rning s, NAV a nd divide nd

Po rtfo lio q ua lity a nd c a pita l struc ture impro ve d furthe r

• GI

C JVs e xte nde d a nd e xpa nde d

• De b t dive rsity, ma turity a nd c o st pro file s e nha nc e d
• L
• ndo n 50% o n b uilt o ut b a sis

Po sitive o utlo o k

• Suppo rtive Go ve rnme nt po lic y de ve lo pme nts
• 62% re se rva tio ns a t 5th Ma rc h, suppo rtive o f re nta l g ro wth in line with re c e nt ye a rs
• 19pps future de ve lo pme nt pro fit se c ure d
• F

urthe r a c c re tive de ve lo pme nt o ppo rtunitie s re ma in Cle a r stra te g ic ta rg e ts

• Ave ra g e lo w do ub le dig it to ta l re turn o n NAV
• E

PS yie ld o f 4.5% o n NAV b y 2015

APPE NDICE S

UK ST UDE NT ACCOMMODAT ION MARKE T

Stude nt numb e rs ha ve do ub le d sinc e 1991

• Drive n b y g o ve rnme nt po lic y,

de mo g ra phic s, g lo b a l mo b ility

• >188,000 mo re a pplic a nts tha n pla c e s

fo r 2012/ 13

• Va ria tio ns a t c ity/ unive rsity le ve l

UK

a ttra c tive to g lo b a l stude nts

• 52% o f UNI

T E c usto me rs no n-UK

• Glo b a l tre nd fo r studying a b ro a d
• UK

ma rke t sha re inc re a sing

Supply/ de ma nd imb a la nc e pe rsists

• Unive rsity sto c k le ve ls fla t
• Priva te re nte d se c to r fa c ing to ug he r

re g ula tio ns

• Ca pita l c o nstra ining ne w supply
• I

mb a la nc e g re a te st in L

• ndo n

F ull time stude nt numbe rs g rowth

Source: Education at a Glance, OECD, Paris (2010)

Inte rna tiona l student mobility Supply Bre a kdown

PRODUCT AND SE RVICE OF F E RING

All-inc lusive pric ing

• All utilitie s a nd se rvic e s
• Wi-F

i a c ro ss o ur po rtfo lio fo r Se pte mb e r 2013

• 24/ 7 c usto me r se rvic e
• T

ra nspa re nc y a nd c e rta inty

City c e ntre lo c a tio ns

• Clo se to unive rsity c a mpuse s
• F

la t-sha re s a nd studio s

• Ra ng e o f pro duc ts a nd pric e po ints
• Go o d tra nspo rt links

Dire c t le t a nd unive rsity c o ntra c ts

• Stro ng re la tio nships with unive rsitie s
• Dire c t sa le s thro ug h we b site
• Multi-ling ua l te le pho ne c o nta c t
• Uniq ue o nline b o o king syste m

22

PHASE S OF GROWT H

2000 - 2006 : F

irst mo ve r a dva nta g e

• Ra pid na tio na l e xpa nsio n
• De ve lo pme nt le d
• Hig h q ua lity site s se c ure d
• F

ina nc ia l a nd o pe ra tio na l stre tc h

2006 - 2009 : Ope ra tio na l a nd fina nc ia l

c o nso lida tio n

• Co -inve stme nt mo de l e sta b lishe d to

dive rsify c a pita l b a se

• Ope ra tio na l c ha ng e pro g ra mme

imple me nte d

• De ve lo pme nt pro g ra mme sc a le d b a c k

2009 - da te : Ma na g e d g ro wth

• Gro wing re c urring c a sh flo ws
• L
• ndo n fo c us
• Susta ina b le c a pita l struc ture
• Bra nd diffe re ntia tio n

23

SE E

• T

HROUGH BAL ANCE SHE E T AND INCOME ST AT E ME NT

Gro up £m USAF £m UCC £m L SAV £m OCB £m

T

• ta l

£m

Balanc e she e t at 31 De c 2012 Re nta l Pro pe rtie s 763 217 114 25 43

1,162

Pro pe rtie s unde r de ve lo pme nt 83

• 83

Ne t de b t (453) (94) (64) (11) (26)

(648)

Othe r a sse ts/ (lia b ilitie s) (23) (3) (3) (1)

• (30)

Ne t Asse ts 370 120 47 13 17 567

Inc ome state me nt Re nta l inc o me 79.4 18.8 9.4 0.3 3.3

111.4

Co sts (24.6) (5.5) (1.5)

• (0.6)

(32.3)

Ne t o pe ra ting inc o me 54.8 13.3 7.9 0.3 2.7

79.1

Ma na g e me nt fe e s 13.2 (1.4) (1.2)

• (0.3)

10.3

Ope ra ting / c o rpo ra te e xpe nse s (21.5) (0.1)

• (0.1)

(0.1)

(21.8)

F ina nc e c o sts (37.6) (5.3) (3.8) (0.1) (1.7)

(48.5) Ne t portfolio c ontribution

9.0 6.4 2.9 0.1 0.6

19.1 Be d numbe rs 15,351* 21,835 2,601 528 1,128 41,443

*inc lude s 4,192 le a se d b e ds

24

OUR T OP 10 MARKE T S

2013 Ra nk 2012 Ra nk City Comple te d Be ds (13/ 14) Comple te d Be ds (12/ 13) F T Stude nt Numbe rs (11/ 12) Proje c te d Ma rke t Sha re

1 1 L

• ndo n

7,712 8,074 292,734 2.8% 2 2 She ffie ld 3,731 3,731 48,632 7.7% 3 3 L ive rpo o l 3,372 3,372 42,911 7.9% 4 4 L e e ds 3,138 3,138 53,402 5.9% 5 5 Bristo l 2,858 2,858 38,942 7.3% 6 6 Ma nc he ste r 2,337 2,716 81,256 3.3% 7 7 Gla sg o w 2,149 2,149 60,990 3.5% 8 9 Birming ha m 1,832 1,832 54,759 3.3% 9 10 L e ic e ste r 1,685 1,685 29,606 5.7% 10 11 Po rtsmo uth 1,402 1,402 19,103 7.3% 30,216 30,957 722,335 4.1% Pro po rtio n o f UNI T E po rtfo lio 73% 72%

25

T HE L ONDON ST UDE NT MARKE T

L

• ndo n ha s thre e impo rta nt c ha ra c te ristic s

tha t disting uish it fro m the wide r UK ma rke t

• A full time stude nt po pula tio n (294,000)

tha t is la rg e r tha n the ne xt five la rg e st stude nt ma rke ts c o mb ine d

• A ve ry lo w supply ra tio . L
• ndo n’ s

unive rsitie s c a n o nly supply 30% o f the b e d spa c e s re q uire d to me e t the ir a c c o mmo da tio n ‘ g ua ra nte e ’ (a ll first ye a r a nd inte rna tio na l stude nts) c o mpa re d to a na tio na l a ve ra g e o f c . 65%

• A la rg e inte rna tio na l stude nt po pula tio n

(c . 80,000) with hig h a c c o mmo da tio n re q uire me nts a nd e xpe c ta tio ns

UNI

T E ha s b uilt a sub sta ntia l L

• ndo n stude nt

a c c o mmo da tio n b usine ss in re c e nt ye a rs.

• F
• r a c a de mic ye a r 2012/ 13 UNI

T E will

• pe ra te o ve r 8,000 b e d spa c e s in L
• ndo n

Proportion of Inte rna tiona l Stude nts HE SA 11/ 12 – All Stude nts

26

DE BT F ACIL IT IE S

F a c ility Amo unt Dra wn Ma turity I nve stme nt £m £m L e g a l + Ge ne ra l 121 121 2022 Na tio nwide 100 22 2014 Unse c ure d re ta il b o nd 90 90 2020 HSH / NAB 64 64 2014 Ba rc la ys 57 57 2015 K e nne dy Wilso n L P 45 45 2013 HSBC 38 38 2017 BNP Pa rib a s 39 39 2016 RBS 28 28 2015 Othe rs 31 31 2012-22 613 535 De ve lo pme nt RBS 54

• 2016

HSBC 49

• 2017

T

• ta l

103

• I

nve stme nt & De ve lo pme nt 716 535 USAF F a c ility £m Dra wn £m Ma turity HSH / Ab b e y 105 105 2013 CMBS 280 280 2014 Sa nta nde r 63 50 2015 HSBC 75 75 2015 L lo yds 115 115 2016 638 625 UCC Syndic a te d fa c ility* 330 227 2014 L SAV UOB 25 25 2017 OCB RBS 31 31 2013 HSH 50 50 2013 Na tio nwide 32 32 2014 113 113 Co -inve stme nt ve hic le s On-balanc e she e t

27

*Syndic a te d fa c ility pro vide d b y BNP Pa rib a s (33%), OCBC (30%), HSH (25%)

CO- INVE ST ME NT VE HICL E S – KE Y T E RMS

USAF UCC L SAV OCB JV

Histo ry: Multi inve sto r fund fo rme d De c 06 JV with GI C fo rme d Ma rc h 05 JV with GI C fo rme d Se pt 12 JV with OCB fo rme d Aug ust 09 Stra te g y:

UK

dire c t le t stude nt a c c o mmo da tio n

E

xc lusivity o ve r UNI T E pipe line

L

• ndo n & E

dinb urg h fo c us

L

• ndo n fo c us

Build a £400m+

po rtfo lio

De ve lo pme nt le d Build a nd o pe ra te 3

L

• ndo n a sse ts

Ca pita lisa ti

• n:

£1.25b n 50-60% L

T V

£380m GAV 50-60% L

T V

T

a rg e t £400m o f GAV

50% L

T V

£175m GAV 60% L

T V F

• rma t:

Ope n e nde d, infinite life Clo se d e nde d, ma ture s 2022 Clo se d e nde d, ma ture s 2022 Clo se d e nde d JV ma ture s 2014 UNI T E sta ke : 16.4% 30% (inc re a sing to 50%) 50% 25% UNI T E ro le : Co -inve sting pro pe rty & a sse t ma na g e r Co -inve sting pro pe rty a nd a sse t ma na g e r Co -inve sting pro pe rty, a sse t a nd de ve lo pme nt ma na g e r Co -inve sting pro pe rty a nd a sse t ma na g e r F e e s: AM fe e : 60b ps o f GAV AM fe e : 50b ps GAV AM fe e : 50b ps DM fe e : 5% b uild c o sts AM fe e : 70b ps GAV Pro mo te : 25% o ve r 9% to ta l re turn pa ya b le a nnua lly in units 20% o ve r 15% to ta l re turn pa ya b le whe n de b t is re -fina nc e d 20% o ve r 13% to ta l re turn pa ya b le o n e xit Ca ppe d a t £2.5m pa ya b le a t e xit b a se d

• n mile sto ne

a c hie ve me nts

28

NNNAV

De c 2012 £m De c 2011 £m De c 2010 £m

Ne t a sse ts

516

388 387 Va lua tio n g a ins no t re c o g nise d o n pro pe rtie s he ld a t c o st

19

76 37 F a ir va lue o f fixe d ra te de b t

(12)

(5) (6) De fe rre d ta x

• NNNAsse ts

523

459 418 NNNAV pe r sha re

326pps

286pps 261pps

29