Half Year Results Presentation - British Land/media/Files/B/... · Presentation. Six months to 30 September 2019. Half year progress . ... • Continuing to reshape and refocus Retail

Half Year Results PresentationSix months to 30 September 2019

Half year progress Chris Grigg, CEO

2

• Achieved resolution to grant outlineplanning for our Canada Water Masterplan– 53 acre scheme including a new urban centre for

London

– 5m sq ft including 3,000 new homes

– Unanimously supported by Southwark Council

• Continued leasing success– 1.3m sq ft leasing activity across the business

– Development lettings locking in £55m future rent

• Continuing to reshape and refocus Retail– £236m retail sales, 6% ahead of book

• Managing our capital well– £125m further share buyback completed

– £625m returned since July 2017

3

Key takeaways

3

Canada Water

• NAV down 5.4% to 856p

• Portfolio value down 4.3% – Offices +0.4% including developments +4.9%

– Canada Water +12.4%

– Retail -10.7%

• EPS down 6.4% to 16.1p– Impact of £0.9bn net income producing sales in

18 months

– Partially offset by share buyback

– Robust stance on CVAs led to improved outcomes

– Annualised EPS accretion of 4.6p to come from recently completed and committed developments

4

Financial summary

33

1 Finsbury Avenue, Broadgate

• 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

5

Operational outperformance in a challenging retail market

3

The Barcode, Plymouth

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

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

6

Retail sales focused on assets that do not meet our criteria

Rental growth potential

The right characteristics to drive income from rents and commercialisation

Development 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

Fulfilment 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 demographics

The right number of the right type of demographic groups

Economic health

Above average income and employment levels in the catchment

CompetitionQuantum of retail space in the local area; strong competitive position relative to potential competitors

Critical MassRight size scheme – large enough for draw, but small enough to drive demand:supply tension

7

2

Broad and flexible leasing offer

• London campuses continue to lease well– 671,000 sq ft leasing activity

– 11.1% ahead of ERV

• Further success increasing mix of uses– Everyman cinema open at Broadgate

– 4 canal barges at Paddington; 5th to come Everyman, 1FA, Broadgate


Paddington Barges

• Developments now 87% let or under offer– Delivering new rent of £63m when fully let

– Achieving £80 psf at Broadgate vs £70 psf forcity prime

• Similar success on existing space– Leasing faster, to a broader range of occupier

High qualityReady to fit Fitted


3 10

Developments

Existing Space

&

Leasing well on existing as well as new space

Monzo122,000 sq ft at Broadwalk House, Broadgate

11

338 Euston Road, Regent’s Place

New tech sector occupier45,000 sq ft at 338 Euston Road, Regent’s Place

Broadwalk House, Broadgate

• 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

12

Storey

Storey Club, Paddington

• 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 13

Smart & Sustainable offices

3

1 Triton Square

3

• 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

14

Canada Water

Canada Water

15

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

Financial ResultsSimon Carter, CFO

Results Overview

Underlying earningsper share

-6.4% vs H1 19

EPRA Net Asset Value per share

-5.4% vs March 19

Portfolio valuation

-4.3% vs March 19(Retail -10.7%, Offices +0.4%)

Loan to value

Incl: +120bps val’n declines,+110bps development spend

Committed developments let or under offer

120,000 sq ft lettings in period

Committed developments EPS accretion

Primarily FY21 & FY22

17

16.1p 856p £11.7bn

30.8% 87% 4.6p

Underlying earnings per share

17.216.1 16.1

(1.6)

0.5 (0.5)0.1

0.4

HY 2019 Net divestmentand

developments

Sharebuybacks

Excl. impact ofcapital activity

Retail like-for-like income

Offices like-for-like income

Financingactivities and

other

HY 2020

18

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

19

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%

20

905p856 856p

(55p)

16p (15p) 8p (1p)

March 19 Valuationperformance

UnderlyingProfit

Dividends Share buyback Financingactivity

Other Sept 19

EPRA net asset value

(2p)

21

Valuation performance

Valuation£m

Valuation movement

Yield movement

ERVmovement

Total 11,723 +17bps -2.3%

Offices 6,439 +0bps +0.9%

Retail 4,790 +37bps -4.8%

Residential 147

Canada Water 347 x

22

0.4%

(4.3%)

(10.7%)

(2.1%)

12.4%

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

Developments£1.0bn (+4.9%)

Office valuation performance

Standing 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

movement

23

-

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)

% Valuation Movement in HY20

-10.7%Retail H1 valuation

movement

24

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

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)

Two thirds of store closures since April 2017 are either re-let, under offer or in negotiation

12 mths: £8m12 mths: £14m

Incl. Debenhams

and Arcadia

CVAs & Admins

25

Retail leasing overview

Commercialisation & car park income• 70k sq ft• £0.8m headline rent• 3 years average lease length• 1 mth average incentive

+1%vs previous passing

rent1

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

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

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

Long term leasing• 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 26

96%Retail occupancy

British Land Footfall movement vs Benchmark1

% YoYBL 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

-4.5FY16 FY17 FY18 FY19 H1 20

+460 +240 +340 +230 +440

27

Continuing to outperform on key operational metrics

British Land LfL sales movement vs Benchmark1

% YoYBL LfL Sales Benchmark Outperformance (bps)

1 BRC KPMG In-Store LFL Non-Food Index

+260 +220 +130 +160 +420

28

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

De-risked developments providing future income

Pence per share

0.00.51.01.52.02.53.03.54.04.55.0

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

0

10

20

30

40

50

60

70

Committed Near term

Pre-let or under offer

Further 7 million sq ft of opportunities in the medium term pipeline

87%Pre-let or under offer

across committed schemes

29

To let

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

30

Wrap UpChris Grigg, CEO

Continued operational resilience

- 1.3m sq ft leasing activity

- Portfolio 97% full

- Developments 87% pre let orunder offer

Good progress on strategy

- Resolution to grant planning atCanada Water

- £236m retail sales

Managing capital well

- £125m buyback completed

- Well positioned with debt low

Pipeline of attractive opportunities

- 1m sq ft near term pipeline includingNorton Folgate and 1 Broadgate

- 7.3m sq ft medium term pipeline,principally Canada Water

32

Key messages

1 2

3 4

3

• Retail– Occupational market to remain challenging

– Investment market will be tough, butgrowing evidence that buyers returning tothe market

• London– Optimistic that current momentum will

continue; function of supply as well asquality and location of our space

– Benefitting from our 7.3m sq ft medium termpipeline

– Investment market would benefit fromgreater macro stability

33

Outlook

100 Liverpool Street, Broadgate

Appendices

35

£11.7bn(BL share)

A diverse, high quality portfolio

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

36

Customer Orientation

We use our insight into customers’ needs and identify major long term trends to create

environments in tune with changing lifestyles

Right Places

We design engaging, sustainable places which bring people together through the right

mix of occupiers, services and activities

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 specialist partners to create insight, develop

skills and build capability

Areas of focus to deliver our strategyBritish Land is a mixed use commercial property company focused on London offices and high quality retail

Places PeoplePrefer

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

37

Flexible AffordableAttractive to skilled employees

Well connected

Aligned to their brand

Tech enabled

Close to complementary

businesses

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

Why mixed use?Occupiers

want space which is…Employees

want space which is…

World class, sustainable and smart buildings Attractive, vibrant and safe public space+

5

We have created a distinctive advantage in mixed use • Mixed use campus development

– 1 Broadgate, 2-3 Finsbury Avenue, 5Kingdom 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 withdedicated retail and offices function

• Natural partner for complex schemes– SWFs, property specialists, Government

Broadgate

6

Storey roll out

Current

New & Forthcoming

40

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

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

BL centres

BL asset catchmentsPotential to reach

c.50%of the population

Annual footfall of

302m

Average rent to sales ratio

9%

Occupancy cost ratio

14%

41

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

Regional LocalAttracting visitors from a wide catchment for a planned trip

Fitting into the daily life of local communities

42

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

BL Index

Tyco (formerly Experian) Inde

Outperformance for6m to Sep 2019

+440bps

43

Major retail property holdings

As at 30 September 2019 BL Share %

Sq ft000’s

Rent (100%)£m pa1,4

OccupancyRate %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 & Funds2 Including accommodation under offer or subject to asset management3 Weighted average to first break4 Excludes committed and near term developments

44

Broadgate Campus

2 FA & 3 FA• 2FA & 3FA - Innovation cluster inc. 51k sq ft

of 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 sqft 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 2019100 Liverpool Street

• Pre-let 184k sq ft to SMBCE, 71k sq ft to MilbankLLP, 60k sq ft to BMO, 40k sq ft to Peel Hunt

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

83% of Broadgate committed developments pre-let or under offer

45

Paddington Central Campus

46

Regent’s Place Campus

47

Top 20 occupiers & occupier split by industry

As at 30 September 2019

% of Retail Rent

Tesco1 7.6 Next 4.8 Kingfisher 3.4Walgreens (Boots) 3.4 Sainsbury’s 3.1 Marks & Spencer 3.1 Debenhams 2.8Dixons 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 Centre2 Debenhams reduces to 0% following vacancy of 10 Brock Street and Facebook increases to 9.9% once they assume occupancy in November 20193 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 OccupiersAs at 30 September 2019

% of Office

RentGovernment 6.9 Facebook2 4.9 Dentsu Aegis3 4.8Visa 4.4 Debenhams2 4.1 Herbert Smith Freehills 3.5 Gazprom 2.8Microsoft 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

48

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 funds1 Includes purchase of 6 Orsman Road, Haggerston for £32m which exchanged in period and completed post period end2 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

49

(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 SpendPurchases

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

£4.0bn

50

PurchasesSince 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 frees2 Exchanged in period and completed post period end

51

Sales

1 BL share of annualised rent topped up for rent frees2 £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

52

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

53

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 broadlyin line with H1 level

• Financing– Weighted average interest rate now 2.7%

on 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 profitsby c.£3.4m and LTV by c.0.6%. This is basedon an average portfolio topped up NIY of 4.8%and marginal cost of debt of 1.4%

54

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 £mCurrent Passing Rent 521

529Contracted uplifts4 20 22 3 - 1 46Letting of Committed Developments1 26 22 - - - 48 39Contracted rent 615 568Sales exchanged post year end (1) - - - - (1) -Letting of completed developments 3 - - - - 3 3Lease Expiries – Development pipeline (1) (4) (1) - (1) (7) (7)Letting of Committed Developments1 – speculative 5 2 - - - 7 6Letting of Near Term Developments1 - - - 29 19 48 41RPI Linked Leases2 1 1 1 1 1 5 5Reversion3 4 5 7 1 (3) 14 12Vacancies 26 26 22

710 650Letting 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 completion2 Assumed at 2.6% per annum 3 Includes reversion on expiries and open market rent reviews within 5 years4 Includes £8m agreement for lease rents

55

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 215Regional 32 45 77 58 85 143

Local 44 12 56 89 22 111

Multi-let 76 57 133 147 107 254Department 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 295Residential2 2 - 2 4 - 4Canada Water 4 - 4 8 - 8Total 181 94 275 349 173 522

On a proportionally consolidated basis including the group's share of joint ventures and funds1 Gross rental income differs from annualised rents due to accounting adjustments for fixed & minimum contracted rental uplifts and lease incentives2 Standalone residential

56

Underlying Profit Bridge

169152 152

(2)

(15)

(5) 1 4

HY 2019 Net divestment anddevelopment

Share buybacks Excl. impact ofcapital activity

Retail like-for-likenet rent

Offices like-for-likenet rent

Financing activitiesand other

HY 2020

£m

57

Administrative expenses6 months to 30 September 2018

£m2019

£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.

58

Operating costs metric6 months to 30 September 2018

£m2019

£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%


59

Reconciliation of Underlying Profit6 months to 30 September 2018

£m2019

£m

IFRS loss after tax attributable to shareholders (48) (404)

Net valuation loss 265 576

Profit on disposal of investment and trading properties (65) (21)

Capital financing costs 17 43

Non-controlling interests (19) (43)

Taxation 19 1

Underlying Profit and EPRA Earnings 169 152


60

Number of shares As at 31 Mar 2019

(m)30 Sept 2019

(m)

IFRS Basic

Weighted average1 971 941

IFRS Diluted


Underlying/EPRA diluted


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.

61

EPRA balance sheet31 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.

62

Reconciliation of EPRA NAV & NNNAV31 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

63

Gross and net debt reconciliationAs at 30 September 2019 Group

£mJVs & Funds

£mLess non-

controllinginterests

£m

Total£m

Gross Debt (principal) (3,039) (1,021) 120 (3,940)

IFRS adjustments:Issue costs and premia 12 2 (1) 13Fair value hedge adjustments (220) - - (220)Other items 4 - - 4IFRS gross debt (3,243) (1,019) 119 (4,143)Market value of derivatives 58 (10) 1 49Cash 160 128 (16) 272IFRS net debt (3,025) (901) 104 (3,822)

Adjustments:Remove market value of derivatives (47)Remove fair value hedges 188Other adjustments (4)Adjusted net debt (3,685)

64

Loan to value (LTV)As at

31 March 2019

£m

Valuation movement

Acquisitions Capital spend

Disposals Sharebuyback

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%


65

Debt metricsProportionally Consolidated 31 Mar 2019 30 Sept 2019




Weighted average maturity of drawn debt 8.1yrs 7.9yrs

Group 31 Mar 2019 30 Sept 2019


Available undrawn facilities £1.5bn £1.4bn



Senior unsecured credit rating (Fitch) A A

66

-

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.

67

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 PlacementsConvertible Bond Sterling Bond Debenture & loan notesJVs SecuritisationsJV & Funds LoansUnsecured Secured

68

Portfolio valuation by sectorAs 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 26Regional 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 38Total 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 funds1 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 sales2 Standalone residential

69

Valuation movement – Offices

6 months to 30 September 2019 Valuation £m

Change £m

Change%1

Yield movementbps2

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

Campuses represent 82% of the Offices portfolio

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 sales2 Excluding committed developments, assets held for development and residential assets

70

Valuation movement – Retail6 months to 30 September 2019 Valuation

£mChange

£m Change

%1Yield movement

bps2ERV 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 sales2 Excluding committed developments, assets held for development and residential assets

Multi-let assets represent 87% of the Retail portfolio

71

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 2.9Offices 3.6 4.0 4.0 4.4 - 5.0 0.9Regional 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 funds1 Including notional purchaser's costs2 Excluding committed developments, assets held for development and residential assets3 Including rent contracted from expiry of rent-free periods and fixed uplifts not in lieu of rental growth4 Including fixed/minimum uplifts (excluded from EPRA definition)5 As calculated by IPD

72

Retail Portfolio Valuation – previous classificationAs 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 funds1 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

73

Portfolio weightingAs 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 6,439Regional 22.9 18.7 2,185

Local 17.2 17.0 1,995

Multi-let 40.1 35.7 4,180Department 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 4,790Residential1 1.0 1.2 147Canada Water 2.3 3.0 347Total 100.0 100.0 11,723Of which London 58% 65% 7,623

On a proportionally consolidated basis including the group's share of joint ventures and funds1 Standalone residential

74

Lease length and occupancyAs 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 97.2Regional 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 95.9Department 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 96.3Canada Water 5.2 5.1 99.7 99.9Total 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 management3 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%

75

Annualised rent & estimated rental value (ERV)As at 30 September 2019 Annualised Rents

(Valuation Basis) £m1ERV

£mAverage Rent

(£psf)Group JVs & Funds Total Total Contracted2 ERV

West End3 141 - 141 183 60.8 67.4City3 7 57 64 104 50.5 58.7Offices3 148 57 205 287 57.0 64.0Regional 44 87 131 142 30.3 31.7Local 110 24 134 139 22.8 23.1Multi-let 154 111 265 281 26.0 26.7Department Stores and Leisure 18 - 18 16 15.0 13.3Superstores 4 4 8 7 22.3 19.8Solus and Other 13 - 13 9 20.5 14.7Retail 189 114 304 313 24.6 24.7Residential4 4 - 4 4 45.2 37.7Canada Water5 8 - 8 9 18.0 21.1Total 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 development1 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 uplift2 Annualised rent, plus rent subject to rent free3 £psf metrics shown for office space only4 Standalone residential5 Reflects standing investment only

76

Rent subject to open market rent reviewFor 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 82Regional 5 18 12 11 8 35 54

Local 5 12 6 17 5 23 45

Multi-let 10 30 18 28 13 58 99Department Stores and Leisure - - - - 2 - 2

Superstores 3 - - 2 1 3 6

Solus and Other - - - - - - -

Retail 13 30 18 30 16 61 107Residential - - 1 - - 1 1Canada 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 development1 Reflects standing investment only

77

Rent subject to lease break or expiry For the year to 31 March 2020 2021 2022 2023 2024 2020-22 2020-24


West End 15 17 22 16 15 54 85

City 2 13 2 4 12 17 33

Offices 17 30 24 20 27 71 118Regional 11 12 13 18 20 36 74

Local 11 11 14 12 19 36 67

Multi-let 22 23 27 30 39 72 141Department Stores and Leisure - - 3 - - 3 3

Superstores - - - 2 - - 2

Solus and Other 1 - - - - 1 1

Retail 23 23 30 32 39 76 147Residential - 3 - - - 3 3 Canada Water1 - 1 - 1 2 1 4Total 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 development1 Reflects standing investment only

78

Contracted rental increases (cash flow basis) For the year to 31 March 2020 2021 2022 2023 2024 2020-22 2020-24


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

79

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

80

De-risked development pipeline focused on campuses

1 Finsbury Avenue 287,000 sq ftPC’d Q1 2019

Recently Completed & Committed Developments

1 Broadgate532,000 sq ft

135 Bishopsgate335,000 sq ft

Completion Q1 2020

Near term pipeline Medium term pipeline excl. Canada Water

Norton Folgate335,000 sq ft

• ERV of £63m• 87% pre-let or under offer

• ERV of £48m• All schemes consented

1 Triton Square366,000 sq ft

Completion Q4 2020

Aldgate Place, Phase 2

146,000 sq ft

Medium term pipeline excl. Canada Water

Gateway Building105,000 sq ft

2-3 FinsburyAvenue

563,000 sq ft

5 Kingdom Street429,000 sq ft

Meadowhall Leisure333,000 sq ft

Eden Walk, Kingston 533,000 sq ft

100 Liverpool Street 520,000 sq ft

Completion Q1 2020

81

As at 30 September 2019

Sector BLShare

Sqft

PCCalendar

Year

CurrentValue

Cost toCome

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 rate2 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 Land4 Capex committed and underway within our investment portfolio relating to leasing and asset management

Recently Completed & Committed developments

82

Near term development pipelineAs at 30 September 2019

Sector BLShare

Sq ft Expected Start on

Site

CurrentValue

Cost toCome

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 rate2 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

83

Medium term development pipeline

1 Planning consent for previous 240,000 sq ft scheme2 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 5,000Resolution to grant

planning

Total Medium Term 7,255

84

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 on above at attributable rates 4 3 4 4 5 3 2 2

1 Includes costs to come post September 2023

85

Canada Water – Illustrative Scheme

Masterplan First detailed plots

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

86

2010 2011 2012 2014 2015 2016 2017 2018 20192013 2020

Canada Water: key milestones and timeline

Earliest possible start on site

Acquisition of 50% of Surrey Quays shopping centre23 acres

Conditional agreement to acquire Printworks

14.5 acres

Remaining 50% of Surrey Quays shopping centre acquired23 acres

Surrey Quays leisure park acquired 8.5 acres

MDA signed with Southwark Council Planning application submitted

Resolution to grant planning Outline masterplanDetailed first phase

87

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

5.2m4.4m

CompletedU/C Pre-letPipeline Pre-letU/C – SpeculativePotential Speculative10 year average new and under-construction take-up10 year average development completions

Q3 2019

88

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 2019 CompletedU/C Pre-letPipeline Pre-letU/C – SpeculativePotential Speculative10 year average new and under-construction take-up10 year average development completions

89

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

2.5m2.0m

m sq ft

Source: CBRE

Q3 2019 CompletedU/C Pre-letPipeline Pre-letU/C – SpeculativePotential Speculative10 year average new and under-construction take-up10 year average development completions

90

London office market rental outlook

£ psf

0

20

40

60

80

100

120

140

200019951990 20102005 20202015

Forecast

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

Actual

West End

City

Prime London Office Rents

91

0

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

West End & City Vacancy Rates

92

2020 Sustainability Targets: FY19 performance

FY19 2020 Target

FutureproofingCapital efficiency

92% 100% developments on track to achieve BREEAM Excellent/Very Good 44% 55% improvement in energy efficiency vs 2009 baseline96% 100% of electricity to come from renewable sourcesAchieved: 64% 55% improvement in carbon efficiency vs 2009 baseline10% 15% reduction capital carbon emissions vs concept (embodied carbon)In progress Trial 3 visible interventions to improve local air quality0.4% to landfill Zero waste to landfill

Skills and opportunityExpert 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 conductIn progress Pilot a Living Wage Zone at a London campus100% / 66% 100% BL and supplier workforce at managed assets paid Living Wage

WellbeingCustomer orientation

On track Achieve WELL Certification on 100 Liverpool StreetIn 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

CommunityRight places

92% Fully implement Local Charter at staffed assets and major developments17% 20% employee skills-based volunteering81% 90% employee volunteering

93

FY 2019 performance

Sustainability Indices Performance

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

Global Real Estate Sustainability Benchmark

2019: Green star for 10th year

FTSE4Good2019: 98th percentile

Sustainalytics ESG Ratings

2019: 96th percentile

Carbon Disclosure Project2019: scores pending

2018: A-

EPRA Sustainability Reporting Awards

2019: Gold for 8th year

MSCI ESG Ratings2019: AAA rating

Other benchmarks and awards

http://www.britishland.com/sustainability/performance/benchmarks

DisclaimerThe 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’ statements. Such statements reflect current views, expectations and beliefs of British Land on, among other things, our markets, activities, projections, strategy, plans, objectives, performance, financial condition and prospects, and appear in a number of places throughout this presentation. Such ‘forward-looking’ statements can sometimes, but not always, be identified by their reference to a date or point in the future, the future tense, or the use of ‘forward-looking’ terminology, including terms such as ‘believes’, ‘considers’, ‘estimates’, ‘anticipates’, ‘expects’, ‘forecasts’, ‘intends’, ‘continues’, ‘potential’, ‘due’, ‘possible’, ‘plans’, ‘seeks’, ‘projects’, ‘goal’, ‘outlook’, ‘schedule’, ‘budget’, ‘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 known and unknown risks, assumptions and uncertainties because they relate to future events and circumstances which may or may not occur and may be beyond our ability to control, predict or estimate. There can be no assurance that such statements will prove to be accurate. Forward-looking statements are not guarantees of future performance and hence may prove to be erroneous. Actual outcomes and results may differ materially from any outcomes or results expressed in or implied by such forward-looking statements. These forward-looking statements include all matters that are not historical fact. Forward-looking statements regarding past trends or activities should not be taken as a representation that such trends or activities will continue in the future. Even if results and the development of the industry in which British Land operates are consistent with the forward-looking statements contained in the presentation, those results or developments may not be indicative of results or developments in subsequent periods. Any forward-looking statements made by or on behalf of British Land speak only as of the date they are made.

Other than in accordance with our legal and regulatory obligations (including under the UK Financial Conduct Authority’s Listing Rules and the Disclosure Guidance and Transparency Rules, the EU Market Abuse Regulation and the requirements of the Financial Conduct Authority and the London Stock Exchange), British Land does not undertake any obligation to update or revise publicly forward-looking statements to reflect any changes in British Land’s expectations with regard thereto or any changes in events, conditions, circumstances or other information on which any such statement is based. Important factors that could cause actual results, performance, developments or achievements of British Land to differ materially from any outcomes or results expressed in or implied by such forward-looking statements include (among other things) business, economic and regulatory changes, as well as those risks which are set out in the "Risk Management and Principal Risks" section of British Land's latest annual report and accounts (which can be found at www.britishland.com) (as updated or supplemented by the "Risk Management and Principal Risks" and the "Forward-looking statements" sections of the Half Year Results Announcement)

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, or be taken as implying that the earnings of British Land for the current year or future years will necessarily match or exceed the historical or published earnings of British Land.

This presentation is published solely for information purposes, and is not to be reproduced or distributed, in whole or in part, by any person other than British Land. The information, statements and opinions contained in this presentation do not constitute or form part of an offer or invitation to sell or issue, or the solicitation of an offer to subscribe for or buy, or any recommendation or advice in respect of, any security or financial instrument, 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. No part of this presentation, nor the fact of its distribution, shall form the basis of or be relied on for any purpose, including in connection with any contract or engagement or investment decision in any jurisdiction, and recipients are cautioned against relying on this presentation. No representation or warranty, either express or implied, is given (whether by British Land or any of its associates, directors, officers, employees or advisers) in relation to the accuracy, completeness, fairness or reliability of the information contained herein, including as to the completeness or accuracy of any forward-looking statements expressed or implied or the basis on which they were prepared, or that the objectives of British Land will be achieved, and liability or responsibility (including of British Land, its shareholders, advisers or representatives) howsoever arising in connection with this presentation is therefore expressly disclaimed (including in respect of any error, omission or misstatement, or for any loss, howsoever arising, from the use of this presentation).

Certain of the information contained in this presentation has been obtained from published sources prepared by other parties. Certain other information has been extracted from unpublished sources prepared by other parties which have been made available to British Land. British Land has not carried out an independent investigation to 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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Documents

Half Year Results Presentation - British Land/media/Files/B/... · Presentation. Six months to 30 September 2019. Half year progress . ... • Continuing to reshape and refocus Retail