www.britishland.com
FULL YEAR RESULTSPRESENTATIONFULL YEAR ENDED 31 MARCH 2011
Chief Executive
CHRIS GRIGG
Delivering Superior Total Returns
3
Total Accounting Returns of 17.7%
Total Accounting Return
Net Asset Value +12.5% to 567p 12.5%
Dividend of 26p 5.2%
Total Return 17.7%
Delivering Superior Total Returns
4
Unlevered Total Returns Outperformed IPD by 180 bps
IPD British Land BL vs IPD
Capital Return 4.9% 7.3% +240 bps
Total Property Return 11.3% 13.1% +180 bps
1. Sustainable and growing income
2. Assets which protect and grow capital value
3. Creating incremental value
4. Controlling costs
5. Exploiting our scale and financial strength
Delivering Superior Total Returns
5
Focus on Five Key Priorities
Income: Significant Rental Value Outperformance
6
260 bps Outperformance Relative to IPD
Source: IPD
99%
100%
101%
102%
103%
Q4 09/10 Q1 10/11 Q2 10/11 Q3 10/11 Q4 10/11
IPD
British Land
British Land ERV Movement vs. IPDERV growth (March 2010 = 100)
Income: Benefiting from Polarisation in Retail
7
British Land Retail ERV Movement vs. All Retail IPDERV growth (March 2010 = 100)
99%
100%
101%
102%
Q4 09/10 Q1 10/11 Q2 10/11 Q3 10/11 Q4 10/11
British Land
IPD
Outperforming IPD Rental Value by 130 bps
Source: IPD
Income: Benefiting from focus on London Offices
8
100%
102%
104%
106%
108%
Q4 09/10 Q1 10/11 Q2 10/11 Q3 10/11 Q4 10/11
British Land
IPD
Outperforming IPD all Office Rental Value Growth by 560 bps
Source: IPD
British Land Office ERV Movement vs. All Office IPDERV growth (March 2010 = 100)
Income: Growing Through Leasing Activity
9
Leasing Activity adds £14.2m to Annual Gross Rental Income
Retail
Occupancy 98.5%
New Lettings 707,000 sq ft
New Lettings vs ERV +1.8%
Total Activity 3,241,000 sq ft
Increasein Rent £5.8m
Offices
97.8%
270,000 sq ft
+11.6%
889,000 sq ft
£8.4m
Income: Adding New Space
10
Retail Acquisitions London Developments
Drake Circus 5, Broadgate
Green Lanes The Leadenhall Building
Mayflower Retail Park 199 Bishopsgate
2 Sainsbury’s Superstores NEQ, Regent’s Place
Baker Street
Marble Arch House
Rent: £23 million per annum ERV: £71 million per annum
Over £90m of Incremental Rent Roll
0%
2%
4%
6%
8%
Q1 Q2 Q3 Q4 Last 12 mths
British Land
IPD
Capital: Significant Capital Value Outperformance
11
FY+240 bps
Outperformed IPD Capital Returns by 240 bps
British Land Capital Returns vs. IPDCapital Return
Source: IPD
Capital: Creating Outperformance at Regent’s Place
12
£52m
£117m
£37m
£28m
Asset Management Yield Compression Development Net Valuation Uplift
44%
32%
24% 100%
Three Sources of Valuation Uplift
Creating Incremental Value: Development
• 2.2m sq ft committed London development
• Aon: significant pre-let
• Rent ahead of investment case
• Expected profit has risen significantly on whole programme
13
Expected Profit per Share Much Higher
Cost Control: A Competitive Advantage
14
Net Operating Costs 13.5% of Gross Rental Income
0%
5%
10%
15%
20%
25%
30%
British Land UK Peer Average
Operating Cost Competitiveness% of gross income (2010/11)
• Modern portfolio
• Effective outsourcing
• Efficient head office
Benefits of Scale and Financial Strength
• Access to wide range of financing markets
• £1.1 billion of secured and unsecured refinancing over last eighteen months
– £560 million unsecured bank facility
– Over £300 million in German Pfandbrief market
• Ability to commit quickly to substantial developments and high return opportunities
15
Delivering Superior Total Returns
Chief Executive
CHRIS GRIGG
GRAHAM ROBERTSFinance Director
Financial Returns
18
Total Accounting Return of 17.7%
Year to 31st March 2010 2011
REIT Income Return 28.4p 28.5p
REIT Capital Return 104.6p 60.5p
REIT Total Return 133.0p 89.0p
Dividend 26.0p 26.0p
Net Asset Value 504p 567p
Growth in Underlying Profit
Reconciliation of Underlying Profit Before Tax
19
£249m £256m
£(16)m
£(17)m +£5m
+£24m+£4m +£7m
2011 Net Investments add £14m to Annual Profits
FY 2010 Credit provision
2010 net divestment
2011 netinvestment
Lettings & reviews (net)
Surrenderpremiums
Net finance costs
FY 2011
Annualised Gross Rental Income
20
Office Occupancy Increased from 93% to 98%
Year to 31 March 2010 £m 2011 £m
Retail 335 343 +2.3%
Offices & Other 142 140 -1.2%
Total (like for like) 477 483 +1.4%
Disposals 7 -
Acquisitions - 25
Development 40 38
Total 524 546 +4.2%
Improvement in Net Operating Costs Ratio
21
• Benefits of full occupancy
• Scale economies across all sectors
• Well developed outsourcing model and small head office
• Asset selection favouring low maintenance and landlord costs
High Pass-Through of Income a Source of Competitive Advantage
Year to 31 March 2011 £m
Property Outgoings 23
Admin Expenses 68
Fees & Other Income (18)
Net Operating Costs 73
Gross Rental Income 541
2011 Costs as % of Gross Rent 13.5%
2010 Costs as % of Gross Rent 14.6%
Key Drivers of Valuation
22
Summary Valuation Performance
MovementLFL NEY Yield Compression
EPRA top-up Initial Yield ERV Growth
FY to 31 Mar 2011 FY FY FY FY
Retail 5.3% (31) bps 5.6% 0.7%
Offices 10.6% (18) bps 6.1% 7.7%
Total 6.9% (29) bps 5.8% 2.7%
Developments +21.8% Having Achieved Key Milestones
Office Development Profits Illustration
23
• Committed developments contributed 7p per share to 2010/11 NAV growth
• At March 2011 20p per share (5.6% yield and £56 psf) unrealised profit
• With 10% ERV growth and 5.0% yield c. 50p unrealised profit
Profitable Development to Generate Superior Growth
Development Profits
0p
10p
20p
30p
40p
50p
60p
March 2011 With Growth("illustrative")
Profit to come
Profit to date
EPRA Net Initial Yields
24
£81m of Contracted Cash Flow Growth
Year to 31 March 2011 £m Yield
Annualised Net Rent (EPRA basis) 504 5.2%
Topped-up Annualised Net Rents 564 5.8%
Total Topped-up Annualised Net Rents 585 6.1%
Excludes Committed Developments at ERV of £80m
Further Growth in Net Asset Value
25
Reconciliation of Net Asset Value
504p567p
+34p+31p
+28p(26)p (4)p
Mar 10 Retail revaluation
Office & Other revaluation
Underlying profits
Dividends Other Mar 11
12.5% Increase in Net Asset Value per Share
Strengthened Balance Sheet
26
Improving Interest Cover and Loan to Value Ratio
Year to 31 March 2011 2010 £m 2011 £m
Property & Investments 8,705 9,623
Net debt 4,210 4,411
Interest cover 2.0x 2.2x
Average interest rate 5.2% 4.9%
LTV 47% 45%
Flexibility of Financing
27
• Group debt includes £1bn of debentures and USPPs with maturity of over 5 years
• Group unsecured credit rating upgraded to A-
• 70% of JVs & Funds debt investment rated bonds (of which two thirds AAA rated)
£4.4bn from Diversified Sources and with Spread Maturities
Group Debt Maturity & Development Spend
Group Refinancing
28
£0.0bn
£0.2bn
£0.4bn
£0.6bn
£0.8bn
£1.0bnDevelopment spend
Maturities
FY
• £450m of drawn debt matures in the next 3 years
• £740m development spend
• Post YE, new £560m facility
• Facilities lasting over 3 years increased to £1.5bn
New Facility Adds to Financial Flexibility and Capacity
2012 2013 2014 2015 2016
£0.0bn
£0.5bn
£1.0bn
£1.5bn
JVs & Funds Refinancing
29
Gross
BL Share
• £570m (BL Share) debt maturing within 2 years
• HUT securitisation matures in H2 2012, comprising AAA rated bonds
JVs & Funds Debt Maturity Profile
£560m (Gross) Debt Refinanced in the Last 18 Months
FY2012 2013 2014 2015 2016
Summary
• Growth in REIT Income Return achieved through recent development lettings
• Total accounting return of 17.7% for the year to 31 March 2011
• Dividend maintained at 26.0 pence representing a 5.2% income return
• Net Asset Value per share increase of 12.5% to 567 pence
• Net operating costs ratio improved to 13.5%
• £1.1 billion of refinancing strengthening balance sheet and extending funding
30
Chief Investment Officer
STEVE SMITH
2010/11 – Portfolio Priorities
1. Retain focus on prime destination retail and London offices
2. Significantly increase exposure to London offices through development
3. Build long-term exposure to West End offices
4. Selectively acquire assets where we see value
32
Superior Total Property Returns
2010/11 Investment Activity
• £1.6bn development programme
• Invested nearly £500m - mainly retail
• Sold assets at 8% ahead of book value
33
Investment Activity (£m)
FY to 31 Mar 2011 Gross Value BL Share Income
Committed Developments 1,603 1,050 71
Acquisitions (excl. developments) 464 427 25
Disposals (285) (242) (5)
Net Investment 1,782 1,235 91
Adding Significantly to Future Income
Increasing Exposure to Offices
34
• Total office weighting increases to 37%
• West End offices increases to 15%
Improving The Portfolio Balance
At 31st March (proforma for committed developments at completed value)
Proforma Portfolio Weighting by Value (%)2011 Proforma
Continued Portfolio Outperformance
• ERV outperformance driven by focus on high quality locations
• BL yields compressed less than the overall market
35
Sector Allocation Driving Outperformance
British Land Returns vs IPD
Y/E 31 March BL IPD
Income Returns 5.5% 6.1%
Capital Return 7.3% 4.9% + 240 bps
- ERV Growth 2.7% 0.1%
- Yield Compression 29 bps 44 bps
Total Returns 13.1% 11.3% + 180 bps
Benefiting from Prime Retail Portfolio
36
Turning Point for Prime Retail Rents
All Retail ERV Growth (IPD)March 2007 = 100
Prime
Secondary
80
85
90
95
100
105
Mar 07 Mar 08 Mar 09 Mar 10 Mar 11
Retail Vacancy Ratios (IPD)At 31 March 2011
Benefiting from Prime Retail Portfolio
37
Vacancy Rates High in Many Secondary Locations
0%
2%
4%
6%
8%
10%
12%
14%
Shopping Centres Retail Warehouses All Retail
Prime
Secondary
1. Location
Focus on Stock Selection and Asset Management
38
Outperformance Deliverable in Fewer Locations
2. Rents
3. Unit configuration
4. Flexibility
5. Environment
• Locally dominant and accessible
• Affordable rents• Where retailers can trade profitably
• The right type of space
• Can be adapted to changing retailer needs
• Where consumers want to shop
Retail Lettings since 30 Sept 2010
Competition for the Best Space
39
Competition Driving Rental Growth
Sq ft ‘000s % above ERVUnder Offer
Sq ft ‘000s
Retail warehouses 152 +9.3 346
Shopping Centres 140 +4.4 58
Superstores 10 +8.7 -
High Street 14 - -
Total 316 +6.8 404
Teesside Shopping Park – Stockton-on-Tees
Teesside Shopping ParkStockton-on-Tees
Rental Values Up 3.5% Year on Year40
Parkgate Shopping Park - Rotherham
41
Lettings 13% Ahead of Rental Value
Parkgate Shopping ParkRotherham
Continued Demand for High Quality Locations
42
Y/E 31 March BL Letting Sq ft ‘000s BL ERV vs IPD
South East/East 142 +210 bps
South West/Wales 30 +100 bps
Midlands 52 +270 bps
York & Humberside 223 +170 bps
North West 74 +170 bps
North East 10 +280 bps
Scotland 153 +90 bps
Strong Relative Performance around the Regions
Acquisitions - Drake Circus
• Above average unit sizes
• Attractive for shoppers
• Comfortably affordable (£160 psf Zone A)
• Limited local competition
43
Driving Income Growth and Capital Value
Acquisitions: Barnstaple
• Locally dominant
• Attractive environment
• Highly affordable (£55 psf Zone A)
• Initial yield of over 8% pa
44
Driving Income Growth and Capital Value
City and West End Office Rents£ psf
Offices: Supply/Demand Driving Rental Growth
45
0
20
40
60
80
100
120
1990 1995 2000 2005 2010 2015
City West End
Source: Drivers Jonas Deloitte (historic) and Average Agents' Consensus (forecast)
0.0
2.0
4.0
6.0
8.0
10.0
1985 1990 1995 2000 2005 2010 2015
Speculative Completed
Driving Income Growth and Capital Value
London – Development Pipelinem sq ft
Source: Drivers Jonas
Strong Demand for our High Quality Buildings
46
• 1.2m sq ft of lettings/lease extensions during the year
• 13% Grade A lettings Central London; 25% City lettings
Major Office Lettings
Year to 31 March Sq ft ‘000s BL Rent £m % above ERV
5 Broadgate (pre-let) 700 19.1 -
20 Triton Street 142 7.2 14.6
Ropemaker 43 1.9 14.4
201 Bishopsgate 39 0.8 2.2
338 Euston Road 15 0.5 6.2
Broadgate Tower 12 0.3 11.1
155 Bishopsgate 8 0.2 9.6
13% Share of Grade A Lettings in London
Offices: A Well Balanced Investment Portfolio
47
Office Investment Portfolio
At 31 March 2011
% of investment
portfolioTopped-
up NIY %Capital
Value £psfLease
Length yrs
Long-term Income (over 10 years) 58 5.8 718 12.5
Medium-term Income (5 – 10 years) 24 6.1 684 7.2
Short-term Income (under 5 years) 18 7.7 507 3.7
Total 100 6.1 646 9.4
Long Term Performance and Low Volatility
Creating Incremental Value: Residential Development
• Alongside office developments
– NEQ
– Baker St
– Marble Arch House
• 314,000 sq ft of residential
• £200m end value
• £89m of pre-sales to date
48
£200m Committed to London Residential
Creating Incremental Value: Retail Development
• 302,000 sq ft redevelopment
• Nearly 40% pre-commitments
• 220,000 sq ft of extensions
• 55% pre-commitments
49
1.1m Sq Ft Retail Development Pipeline
Whiteley Village Glasgow Fort
Puerto Venecia, Zaragoza
50
2.3m Sq Ft Regional Shopping Centre
Outlook
• Retail polarising into a two tier market
• Clear inflection point for prime retail rents
• Continued strength in Central London offices
• Increased investment market activity
• More opportunistic activity
51
Our Portfolio Remains Well Positioned
Chief Executive
CHRIS GRIGG
Outlook
• Optimistic about prospects for British Land
• Continued rental value growth in both Offices and Retail
• Incremental value through development
• Opportunities for acquisitions
53
2010/11: A Year of Gathering Momentum
• Well established management team
• New talent below board level
• Clear direction of travel
54
1. Sustainable and growing income
2. Assets which protect and grow capital value
3. Creating incremental value
4. Controlling costs
5. Exploiting our scale and financial strength
Delivering Superior Total Returns
55
APPENDICES
REIT Income Return
57
Year to 31 March 2010 £m 2011 £m
Net Rental Income 545 518
Net Interest Costs (246) (212)
Net Rental Income less Interest 299 306
Fees & Other Income 15 18
Admin Expenses (65) (68)
Underlying Profit Before Tax 249 256
Taxation (5) (5)
REIT Income Return 244 251
Reconciliation of Underlying Profit Before Tax
58
Year to 31 March 2010 £m 2011 £m
IFRS Profit/(Loss) before tax 1,128 830
Net valuation movement (includes disposals) (908) (591)
Deferred and current taxation of joint ventures & funds 5 6
Amortisation of intangible asset 15 10
Other non-recurring items 9 1
Underlying profit before tax 249 256
Gross (Accounting) Rental Income – Sectoral Analysis
59
1 Including surrender premiums and back rents
Gross Rental Income (£m pa) 12 months to 31 Mar 2011 Annualised as at 31 Mar 2011
Group Funds & JVs Total Group Funds & JVs Total
Retail Warehouses 101 40 141 106 44 150
Superstores 10 62 72 8 62 70
Shopping Centres 19 65 84 33 60 93
Department Stores 33 - 33 34 - 34
UK Retail 163 167 330 181 166 347
Europe - 25 25 - 24 24
All Retail 163 192 355 181 190 371
City Offices 23 87 110 22 80 102
West End Offices 54 - 54 55 - 55
All Offices 77 87 164 77 80 157
Other 18 - 18 18 - 18
Total – recurring items 258 279 537 276 270 546
– non-recurring items1 4 - 4
Total 262 279 541
EPRA Balance Sheet (Proportional Consolidation)
60
£m GroupFunds& JVs
March 2011
March 2010
Total properties 4,783 4,789 9,572 8,539
Net debt (1,687) (2,630) (4,317) (4,081)
Other net liabilities (129) (25) (154) (51)
EPRA Net Assets 2,967 2,134 5,101 4,407
EPRA Diluted NAV per share 567p 504p
Loan to value ratio – Group 24% 25%
Loan to value ratio – inc. share of Funds & JVs 45% 47%
Reconciliation of EPRA NAV & NNNAV
61
2010 £m
2010 Pence
2011£m
2011 Pence
Balance sheet (IFRS) net assets 4,208 481 4,930 548
Deferred tax arising on revaluation movements 43 5 37 4
Mark to market on effective cash flow hedges and related debt adjustments
126 15 89 10
Adjust to fully diluted on exercise of share options 30 3 45 5
EPRA NAV 4,407 504 5,101 567
Deferred tax arising on revaluation movements (43) (5) (37) (4)
Mark to market of debt and derivatives 156 18 53 6
EPRA NNNAV 4,520 517 5,117 569
Net Debt
62
As at 31 March 2011 Group £m Funds & JVs £m Total £m
Gross debt 1,939 2,792 4,731
Market value of derivatives 38 74 112
Cash & liquid investments (263) (169) (432)
EPRA adjustments1 (27) (67) (94)
Net debt (EPRA basis) 1,687 2,630 4,317
Average interest rate 4.7% 4.9%
Interest cover2 3.0 2.2
1 Excludes mark to market on effective cash flow hedges and related debt adjustments2 Underlying profit before interest and tax (UPBIT)/net interest
Top 10 Properties
63
As at 31 March 2011
Excluding developmentssq ft’
000 BL Share % Rent £m pa1
Occupancyrate %2
Lease length, yrs3
1 Broadgate, EC2 4,436 50 172 96.5 8.2
2 Regents Place, NW1 1,210 100 48 98.3 9.2
3 Meadowhall Shopping Centre 1,376 50 82 98.2 10.5
4 Ropemaker Place, EC2 594 100 26 99.3 15.6
5 Drake Circus Shopping Centre 560 100 15 98.5 7.7
6 Teesside Retail Park, Stockton 460 100 14 100.0 9.7
7 Debenhams, Oxford Street 367 100 16 100.0 28.0
8 York House, W1 132 100 5 100.0 6.5
9 Forster Square Retail Park, Bradford 246 100 7 100.0 10.1
10 St Stephen’s, Hull 410 100 8 98.4 9.6
1Annualised contracted rent including 100% of Funds and Joint Ventures2Including accommodation subject to asset management and under offer
Top 10 Retail & Office Customers
64
Retail
% of total rent
Tesco 7.4
Sainsbury 6.4
Debenhams 4.3
Homebase 2.3
Kingfisher (B&Q) 2.2
Next plc (inc. Next at Home) 2.0
Alliance Boots 1.3
Asda Group (inc. Asda Living) 1.1
Currys 1.1
Marks & Spencer 1.1
Office
% of total rent
UBS 3.8
HM Government 2.2
Bank of Tokyo-Mitsubishi UFJ 1.7
Macquarie Group 1.6
Herbert Smith 1.5
RBS 1.3
Aegis 0.9
JP Morgan 0.9
Reed Smith 0.9
Gazprom 0.8
Portfolio Valuation by Sector
65
Group Funds & JVs Total Portfolio Change2
As at 31 March 2011 £m £m1 £m % 12 mths %2 3 mths %2
Retail Warehouses 1,837 800 2,637 27.6 4.9 2.6
Superstores 140 1,195 1,335 13.9 4.6 0.4
Shopping Centres 501 1,004 1,505 15.7 7.2 0.3
Department Stores 457 - 457 4.8 4.7 2.8
UK Retail 2,935 2,999 5,934 62.0 5.4 1.5
Europe - 361 361 3.8 3.0 1.0
All Retail3 2,935 3,360 6,295 65.8 5.3 1.5
City 466 1,409 1,875 19.6 8.9 2.4
West End 1,176 - 1,176 12.3 13.7 4.0
Provincial 18 8 26 0.2 2.2 0.3
All Offices4 1,660 1,417 3,077 32.1 10.6 3.0
Other 188 12 200 2.1 2.9 1.3
Total 4,783 4,789 9,572 100.0 6.9 2.0
1 Group’s share of properties in Joint Ventures & Funds2 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 sales3 Including developments of £46 million4 Including developments of £306 million, up 21.8% in the 12 months and 3 months
Yield Profile
66
Excluding developments (%)
EPRA Net Initial
Yield1
EPRA Topped-up
Net Initial
Yield1,2
Overall Topped-
up Net Initial
Yield1,3
Net
Reversionary
Yield1
Net Equivalent
Yield1
Retail Warehouses 5.5 5.8 5.8 5.7 5.7
Superstores 5.0 5.0 5.0 5.0 5.1
Shopping Centres 5.4 5.7 5.7 6.0 5.9
Department Stores 5.7 5.7 8.7 4.6 6.5
UK Retail 5.4 5.6 5.8 5.5 5.7
Europe 7.1 7.1 7.1 7.4 7.6
All Retail 5.5 5.6 5.9 5.6 5.8
City 4.7 6.4 6.4 6.0 5.8
West End 3.9 5.6 6.0 6.1 5.6
All Offices 4.4 6.1 6.2 6.1 5.7
Other 8.4 8.4 10.4 6.0 9.5
Total 5.2 5.8 6.1 5.8 5.8
1 Including notional purchasers’ costs 2 Including rent contracted from expiration of rent free periods and fixed uplifts3 Including fixed/minimum uplifts (excluded from EPRA definition)
Lease Length & Occupancy
67
Excluding Developments Average Lease Length (yrs) Occupancy Rate (%)
To Expiry To First Break Underlying1 Overall
Retail Warehouses 11.3 10.4 98.7 98.5
Superstores 16.8 16.8 100.0 100.0
Shopping Centres 10.6 9.9 97.0 95.6
Department Stores 29.5 26.0 99.1 98.6
UK Retail 13.7 12.8 98.5 98.0
Europe 9.4 3.9 90.5 90.5
All Retail 13.3 12.1 97.9 97.5
City 11.9 9.9 97.2 97.0
West End 11.2 8.7 98.7 98.1
All Offices 11.7 9.4 97.8 97.4
Other 21.4 21.3 91.8 91.8
Total 13.0 11.5 97.8 97.3
1Including accommodation subject to asset management and under offer
Annualised Rents and Average Rent £psf
68
Excluding Developments Annualised Rents (£m pa)1 Average Rent (£psf)
Group JVs & Funds Total Contracted2 ERV3
Retail Warehouses 109 44 153 22 23
Superstores 8 63 71 21 21
Shopping Centres 33 59 92 26 27
Department Stores 28 - 28 12 10
UK Retail 178 166 344 21 22
Europe - 24 24 10 11
All Retail 178 190 368 20 20
City 3 82 85 47 43
West End 44 - 44 42 43
All Offices 47 82 129 45 43
Other 14 1 15 18 13
Total 239 273 512 24 241 Gross (cash) rent receivable plus any increases to current ERV from outstanding rent reviews (net of ground rents payable) 2 Average contracted passing rent (post expiry of rent free periods)3 Current average headline ERV (as determined by external valuers)
Contracted Rental Increases (Cash Flow Basis)
69
Year to 31 March(£m pa)Excluding developments 2012 2013 2014 2015 2016 2012-14 2012-16
Expiry of rent free periods 11 8 28 - - 47 47
Guaranteed fixed & minimum rental uplifts 2 3 3 3 4 8 15
Total 13 11 31 3 4 55 62
Rent Subject to Open Market Rent Review
70
Year to 31 March(£m pa)Excluding developments 2012 2013 2014 2015 2016 2012-14 2012-16
Retail Warehouses 21 27 23 22 20 71 113
Superstores 5 4 9 17 20 18 55
Shopping Centres 17 15 11 7 18 43 68
Department Stores - - - - 5 - 5
UK Retail 43 46 43 46 63 132 241
Europe - - - - - - -
All Retail 43 46 43 46 63 132 241
City 6 17 29 31 17 52 100
West End 5 8 2 2 14 15 31
All Offices 11 25 31 33 31 67 131
Other - - - - 1 - 1
Total 54 71 74 79 95 199 373
Potential uplift at current ERV 2 2 1 3 3 5 11
Rent Subject to Lease Break or Expiry
71
Year to 31 March(£m pa)Excluding developments 2012 2013 2014 2015 2016 2012-14 2012-16
Retail Warehouses 2 4 6 4 8 12 24
Superstores - - - - - - -
Shopping Centres 4 3 6 4 8 13 25
Department Stores 1 - - - - 1 1
UK Retail 7 7 12 8 16 26 50
Europe 3 4 3 4 3 10 17
All Retail 10 11 15 12 19 36 67
City - - 2 9 11 2 22
West End 1 7 1 2 4 9 15
All Offices 1 7 3 11 15 11 37
Other 1 - 1 - - 2 2
Total 12 18 19 23 34 49 106
% of Contracted Rent 1.9 3.2 3.3 3.9 6.0 8.4 18.3
Committed Developments
72
As at 31 March 2011 sq ft
‘000 PC Value £m
Cost to
Complete
£m1
Notional
Interest
£m1 ERV £m2 Pre-let £m4 Sales £m3
5 Broadgate4 700 Q3 14 75 162 32 19.1 19.1 -
The Leadenhall Building4 610 Q3 14 51 163 27 18.4 - -
NEQ, Regent’s Place 500 Q2 13 78 211 24 18.4 - 104
199 Bishopsgate4 142 Q3 12 24 17 4 3.5 - -
Baker Street 158 Q1 13 54 61 9 8.0 - 17
Marble Arch House 86 Q2 13 - 54 4 3.7 - 11
Total Offices 2,196 282 668 100 71.1 19.1 132
Puerto Venecia, Zaragoza 1,359 2012 34 62 4 8.4 3.2 -
Superstore extensions 73 2011/12 - 10 - 0.6 0.6 -
Total Retail 1,432 316 740 104 80.1 22.9 132
1 To PC (based on notional cost of finance of 6%)2 Estimated headline ERV net of rent payable under head leases (excluding tenant incentives)3 Parts of development expected to be sold, no rent allocated4 Heads of Terms agreed for a 191,000 sq ft pre let to Aon Limited with an option to lease a further 85,000 sq ft
Prospective Developments
73
As at 31 March 2011 BL Share % sq ft ‘000
Whiteley Village, Fareham 50 302 Detailed planning consent
Glasgow Fort 39 175 Detailed planning consent
Glasgow Fort (leisure) 39 45 Detailed planning consent
Fort Kinnaird, Edinburgh 19 133 Detailed planning consent
Surrey Quays Shopping Centre 50 103 Planning pending
Broughton Park, Chester 39 58 Planning pending
Power Court, Luton 100 100-200 Planning pending
Superstore extensions 50 103 Planning pending
Kingston Centre, Milton Keynes 50 21 Detailed planning consent
6-9 Eldon Street 100 33 Pre submission
Colmore Row 100 280 Detailed planning consent
Meadowhall Metropolitan 100 2,200 Outline planning
New Century Park 50 1,000 Outline planning
Estimated Future Development Spend
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£0m
£100m
£200m
£300m
2012 2013 2014 2015 2016
Retail
Offices
Costs to complete(excluding land and notional interest)
FY
£m Offices Retail Total
Current value1 282 34 316
Cost to complete2 668 72 740
Notional interest2 100 4 104
Total 1,050 110 1,160
1As at 31 March 20112To PC (based on notional cost of finance of 6%)
£236m
£16m£42m
£184m
£262m
Illustrative Unrealised Development Profits
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Unrealised profit illustration1 Average Valuation Yield
(pence per share) 5.6% 5.25% 5.00% 4.75% 4.50%
Estimated Rental Value2
(5)% 15 23 29 36 44
£56 psf 20 27 34 41 49
+5% 24 32 39 46 54
+10% 28 36 43 51 60
+15% 32 41 48 56 65
+20% 37 46 53 61 71
1 Estimated remaining valuation surpluses on committed office developments, based on external valuers’ March 2011 assumptions (sensitised for movements in yields and headline rents) excluding valuation surplus of 7 pence realised to date
2 Headline (excluding tenant incentives)
Disclaimer
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The information contained in this presentation has been extracted largely from the Full Year Results Announcement for the year ended 31 March 2011.
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