Annual General Meeting

Transcription

1 Annual General Meeting 17 July 2018

2 A year of progress John Gildersleeve, Chairman

3 Robust financial performance Net asset value (NAV) up 5.7% to 967p Valuation uplift of 2.2% 15p impact of buyback 2.4m sq ft lettings and renewals 8.2% ahead of estimated rental value (ERV) Occupancy at 97% at March 2018 Underlying profit down 2.6% to 380m Despite 1.5bn net sales of incomeproducing assets in two years Strongest ever financial metrics Leverage reduced to 28% and weighted average interest rate at historic low of 2.8% as at March 2018 Leverage further reduced to 26% following the sale of 5 Broadgate in June 2018 Meadowhall 3

4 London Offices: Strong leasing activity Lettings and renewals of 1.2m sq ft 4-times area achieved in FY17 Meaningful activity at each campus 5.6% ahead of ERV Occupancy now 98% 310,000 sq ft pre-let to Dentsu Aegis At 1 Triton Square, Regent s Place Largest West End pre-let in 22 years Regent s Place Unique campus offer driving strong demand 4

5 Retail: operational outperformance Leasing activity of 1.2m sq ft Terms 10.3% ahead of ERV Incentives stable Teesside, Stockton Operational outperformance Retailer sales -1.6%; 130 bps ahead of benchmark Footfall +0.3%; 340 bps ahead of benchmark Challenging market Admins and CVAs now 1.6% total group contracted rent Occupancy now 96.4% Significant reshaping 2.3bn retail asset sales in four years Includes 1bn superstores 5

6 Transforming the shape of our business Increase in London 41% as a % of Portfolio 57% March 2010 Current Bank exposure reduced to: 3% 35% Increase in West End as a % of Offices 69% March 2010 Current TMT exposure increased to: 9% Offices as a % 33% of Portfolio 47% March 2010 Current Assets close to Crossrail: 4bn Note: Figures reflect the sale of 5 Broadgate in June 18 6

7 Our London campuses 4.2m sq ft 78% Our campuses account for 77% of our offices portfolio Note: Following the sale of 5 Broadgate in June 18 7

8 Transforming Broadgate

9 100 Liverpool Street 522,000 sq ft redevelopment 160,000 sq ft pre-let to SMBCE 100 Liverpool Street 9

10 1 Finsbury Avenue 291,000 sq ft refurbishment 79,000 sq ft pre-let to Mimecast 1 Finsbury Avenue 10

11 135 Bishopsgate 328,000 sq ft refurbishment 311,000 sq ft let/under offer 135 Bishopsgate 11

12 Delivering Storey Appold Street 77% occupancy 48% premium to ERV 2 Finsbury Avenue 4 Kingdom Street Storey successfully launched across all three campuses 12

13 Dividend increased 100 Liverpool Street 1 Triton Square 2018/19 dividend +3% reflecting our confidence in our business 13

14 Future British Land Chris Grigg, Chief Executive

15 Disciplined use of capital A proactive year, including: Sale of the Leadenhall Building crystallising 575m; 24% premium to book 419m retail sales 252m development and capital spend 206m acquisitions, primarily mixed use, regeneration opportunities 300m share buyback at 630p average Regent s Place Since year end: Sale of 5 Broadgate, in line with book value; crystallising 500m Commenced 200m extension of share buyback programme 15

16 De-risked development pipeline focused on campuses 135 Bishopsgate 328,000 sq ft Completion Q Triton Square 366,000 sq ft Completion Q Blossom Street, Shoreditch 340,000 sq ft Eden Walk, Kingston 533,00 sq ft Meadowhall Leisure 330,00 sq ft 5 Kingdom Street 332,00 sq ft 1 Finsbury Avenue 291,000 sq ft Completion Q Liverpool Street 522,000 sq ft Completion Q Gateway Building 105,000 sq ft 1-2 Broadgate 507,000 sq ft 2&3 Finsbury Avenue 563,000 sq ft Committed pipeline ERV of 63m 64% pre-let or under offer on committed developments Near term pipeline Completions 2019 onwards ERV of 30m Medium term pipeline Planning consent achieved on 77% 16

17 Further good progress at Canada Water Good progress this year Master Development Agreement signed, May 2018 Planning application submitted simultaneously Includes detailed planning on three buildings in Phase 1 Local community engagement central to our approach 10,000 people have visited the exhibition of our plans Canada Water 17

18 Future British Land Future British Land

19 Future British Land: increasingly mixed use Mixed Use places to work, shop and live Offices Retail Build to Rent Customer focus Operational expertise 19

20 The highest quality offices, focused on our campuses Focus on our three London campuses 100 Liverpool Street World class, sustainable and smart office space Capitalising on location, connectivity Integrated alongside high quality retail and leisure Balanced offering Mix of type of space Length and flexibility of lease terms Further roll out of Storey Additional 160,000 sq ft allocated across portfolio; includes new building in Haggerston (41,500 sq ft), recently exchanged and completing later this year Long term could be 10% of Offices portfolio Located on campuses and standalone buildings 20

21 Further reshaping and refocused retail We have been proactive reshaping the portfolio 2.3bn sales in four years Significant refurbishments completed Glasgow Fort We will further focus the business Smaller number of assets On average larger size Both Regional and Local Focus on quality of space in the right locations 21

22 Residential will play an increasing role in our business Clear rationale with several options to build scale Structurally growing and highly fragmented market Complementary and additive to our existing business Fundamental to a mixed use model Strong track record in residential - Aldgate - Clarges Mayfair Existing opportunities within our portfolio Canada Water (Phase homes) Ealing, Eden Walk, Woolwich Number of ways we can achieve scale - Organic build out - Bolt-on acquisition 22

23 We will remain focused on our customers World Class Customer Service Operational Expertise Informed Insights 23

24 Outlook & conclusions London Offices Occupiers remain cautious But are continuing to plan long term and commit to London Supply of high quality new space is relatively constrained Polarisation will gather pace Expect demand for our space to remain firm Broadgate Retail Market remains challenging Polarisation is playing out A clear plan, strong balance sheet and significant opportunities 24

25 Questions