REG - British Land Co PLC - Half Yearly Report - Part 2 <Origin Href="QuoteRef">BLND.L</Origin> - Part 3
17/11/2015 07:02
- Part 3: For the preceding part double click ID:nRSQ9197Fb
Shopping parks 23.4 23.0 3,315 22.4
Shopping centres 15.5 15.9 2,282 15.4
Superstores 10.1 6.3 906 5.7
Department stores 4.7 4.2 610 4.1
Leisure 2.8 3.7 530 3.6
Retail & Leisure 56.5 53.1 7,643 51.2
Of which Multi-let 36.0 37.2 5,355 36.0
West End 23.1 25.5 3,669 27.2
City 17.8 19.6 2,813 19.0
Provincial 0.7 - 3 -
Offices 41.6 45.1 6,485 46.2
Residential2 1.9 1.8 256 2.6
Offices & Residential 43.5 46.9 6,741 48.8
Total 100.0 100.0 14,384 100.0
Table shows UK total, excluding assets held in Europe.
1 Pro forma for developments under construction at estimated end value (as determined by the Group's external valuers) and post period end transactions
2 Stand-alone residential
Annualised Rent & Estimated Rental Value (ERV)1
At 30 September 2015 Annualised rent ERV £m Average rent £psf
(valuation basis) £m2
Group JVs & Funds Total Total Contracted3,4 ERV3
Shopping parks 115 54 169 181 25.5 25.9
Shopping centres 64 52 116 128 29.5 31.4
Superstores 12 38 50 49 21.6 21.2
Department stores 25 - 25 24 15.1 14.0
Leisure 27 - 27 23 14.4 11.9
Retail & Leisure 243 144 387 405 23.7 23.8
Of which Multi-let 158 108 266 293 27.6 28.8
West End 113 - 113 155 50.9 57.0
City 4 90 94 155 50.5 57.7
Offices 117 90 207 310 50.6 57.2
Residential5 4 - 4 3
Offices & Residential 121 90 211 313
Total 364 234 598 718 29.2 31.2
Table shows UK total, excluding assets held in Europe.
1 Excluding developments under construction and assets held for development
2 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 uplift
3 Office average rent & ERV £psf is based on office space only
4 Annualised rent, plus rent subject to rent free
5 Stand-alone residential
Gross Rental Income1
Accounting Basis £m 6 mths to 30 September 2015 Annualised as at 30 September 2015
Group JVs & Funds2 Total Group JVs & Funds2 Total
Shopping parks 59 31 90 114 55 169
Shopping centres 34 27 61 63 51 114
Superstores 6 19 25 12 38 50
Department stores 14 - 14 29 - 29
Leisure 16 - 16 31 - 31
Retail & Leisure 129 77 206 249 144 393
Of which Multi-let 83 57 140 158 107 265
West End 60 - 60 117 - 117
City 2 54 56 4 113 117
Offices 62 54 116 121 113 234
Residential3 3 - 3 3 - 3
Offices & Residential 65 54 119 124 113 237
Total 194 131 325 373 257 630
Table shows UK total, and includes completed developments.
1 Gross rental income will differ from annualised rents due to accounting adjustments for fixed & minimum contracted rental uplifts and lease incentives
2 Group's share of properties in joint ventures and funds including HUT at share
3 Stand-alone residential
Lease Length & Occupancy1
At 30 September 2015 Average lease length yrs Occupancy rate %
To expiry To break Occupancy Occupancy (underlying)2
Shopping parks 8.7 7.7 97.3 98.1
Shopping centres 8.7 7.7 96.9 98.2
Superstores 14.3 14.0 100.0 100.0
Department stores 21.0 20.9 100.0 100.0
Leisure 18.3 18.3 100.0 100.0
Retail & Leisure 10.9 10.1 97.8 98.6
Of which Multi-let 8.6 7.5 97.0 98.1
West End 10.0 8.2 96.1 98.5
City 10.6 8.8 97.7 97.7
Provincial 16.5 6.5 100.0 100.0
Offices 10.3 8.5 96.9 98.1
Total 10.6 9.4 97.4 98.4
Table shows UK total, excluding assets held in Europe.
1 Excluding developments under construction and assets held for development
2 Including accommodation under offer or subject to asset management
Rent Subject to Lease Break or Expiry1
At 30 September 2015 2016 2017 2018 2019 2020 2016-18 2016-20
For period to 31 March £m £m £m £m £m £m £m
Shopping parks 8 6 10 12 15 24 51
Shopping centres 7 9 9 6 10 25 41
Superstores - - - - - - -
Department stores - - 1 - - 1 1
Leisure - - - - - - -
Retail & Leisure 15 15 20 18 25 50 93
Of which Multi-let 14 15 19 17 25 48 90
West End 1 8 9 10 4 18 32
City - 19 - 17 13 19 49
Offices2 1 27 9 27 17 37 81
Total 16 42 29 45 42 87 174
% of contracted rent 2.4% 6.1% 4.1% 6.6% 6.2% 12.6% 25.4%
Potential uplift at current ERV3 1 9 1 7 3 11 21
Table shows UK total, excluding assets held in Europe.
1 Excluding developments under construction
2 Based on office space only3 As determined by the Group's valuers
Rent Subject to Open Market Rent Review1
At 30 September 2015 2016 2017 2018 2019 2020 2016-18 2016-20
For period to 31 March £m £m £m £m £m £m £m
Shopping parks 12 14 22 24 16 48 88
Shopping centres 4 12 15 14 8 31 53
Superstores 7 5 4 9 15 16 40
Department stores - - - - - - -
Leisure - - 2 - - 2 2
Retail & Leisure 23 31 43 47 39 97 183
Of which Multi-let 11 26 38 38 23 75 136
West End 3 8 19 20 14 30 64
City 11 1 6 14 14 18 46
Offices 14 9 25 34 28 48 110
Total 37 40 68 81 67 145 293
Potential uplift at current ERV 1 - 1 3 1 2 6
Table shows UK total, excluding assets held in Europe.
1 Excluding developments under construction and assets held for development
Major Property Holdings
At 30 September 2015 BL Share Sq ft Rent Occupancy Lease
(excl. developments under construction) % '000 £m pa1 rate %2 length yrs3
Broadgate, London EC2 50 4,721 225 99.3 8.3
Regent's Place, London NW1 100 1,590 73 98.8 8.2
Meadowhall Shopping Centre, Sheffield 50 1,393 82 97.2 7.2
Paddington Central 100 808 33 99.8 8.2
Sainsbury's Superstores4 50 2,526 59 100.0 14.2
The Leadenhall Building5 50 602 35 86.7 12.0
Debenhams, Oxford Street 100 363 11 100.0 23.5
Tesco Superstores4 65 1,243 27 100.0 14.3
Teeside Shopping Park, Stockton-on-Tees 100 478 15 95.7 6.5
Drake Circus Shopping Centre, Plymouth 100 412 16 99.6 5.9
1 Annualised EPRA contracted rent including 100% of Joint Ventures & Funds
2 Includes accommodation under offer or subject to asset management at 30 September 2015
3 Weighted average to first break
4 Comprises stand-alone assets/properties
5 90.8% occupancy rate Including post period end activity
Top 40 Occupiers by Total Contracted Rent
At 30 September 2015 % of total rent % of total rent
Tesco plc 6.1 New Look 0.9
UBS AG1 5.7 Gazprom 0.9
Debenhams 5.4 Vodafone plc 0.9
J Sainsbury plc 4.8 Sports Direct 0.9
Kingfisher (B&Q) 2.6 Aon Plc 0.8
Home Retail Group 2.4 Asda Group 0.8
Next plc 2.3 JPMorgan 0.7
HM Government 2.2 Reed Smith 0.7
Virgin Active 1.8 Children's World Ltd (Mothercare) 0.7
Spirit Group 1.6 H&M Hennes & Mauritz AB 0.7
Alliance Boots 1.5 Deutsche Bank AG 0.7
Dixons Carphone 1.4 JD Sports 0.7
Visa Inc 1.4 Mayer Brown 0.7
Marks & Spencer plc 1.4 ICAP Plc 0.6
Arcadia Group 1.3 Steinhoff 0.6
Aegis Group 1.3 Lewis Trust (River Island) 0.6
Herbert Smith 1.2 MondaysTopCo (TGI Fridays) 0.6
Royal Bank of Scotland 1.1 Pets at Home 0.5
TJX Cos Inc (TK Maxx) 0.9 Credit Agricole 0.5
Facebook 0.9 BridgeStreet 0.5
1 Temporary increase due to 5 Broadgate lease commencement and 1-3 Finsbury Avenue/100 Liverpool Street lease run off
Acquisitions and Disposals
From 1 April 2015 Price (Gross) Price (BL Share) Annual Passing Rent
Acquisitions Area £m £m £m2
Completed
1 Sheldon Square Offices London 210 210 10
Hercules Unit Trust unit purchase1 Retail Various 95 95 5
19-33 Liverpool Street Offices London 22 22 1
Teesside Leisure Park Retail North East 2 2 -
Total 329 329 16
1 Units purchased over the course of the period. £95m represents purchased GAV
2 BL share of net rent topped up for rent frees
From 1 April 2015 Price (Gross) Price (BL Share) Annual Passing Rent
Disposals Area £m £m £m1
Completed
Parkgate Shopping Park, Rotherham Retail Yorkshire 170 120 6
39 Victoria Street Offices London 139 139 5
Birstall Shopping Park, Leeds Retail Yorkshire 107 31 2
Hatters Way, Luton & Hylton Riverside, Sunderland Retail Various 44 33 2
The Hempel Collection Residential London 16 16 -
Superstore disposals Retail Various 14 14 1
Bedford Street Residential London 4 4 -
Exchanged
Tesco, Bursledon Retail South 60 60 3
Aldgate Place Residential London 16 8 -
The Hempel Collection Residential London 6 6 -
Total 576 431 19
1 BL share of net rent topped up for rent frees
Recently Completed & Committed Developments
At 30 September 2015 Sector BL Share Sq ft PC Calendar Year Current Value Cost to complete ERV Let & Under Offer Resi End Value
% '000 £m £m1 £m2 £m £m3
5 Broadgate Offices 50 710 Completed 453 16 19.2 19.2 -
Whiteley Leisure, Fareham Retail 50 58 Completed 12 1 0.6 0.6 -
Glasgow Fort, M&S & Retail Terrace Retail 75 112 Completed 33 3 1.9 1.7 -
Total Completed in Period 880 498 20 21.7 21.5 -
Yalding House Offices 100 29 Q4 2015 32 3 1.7 - -
4 Kingdom Street Offices 100 147 Q2 2017 57 76 8.9 - -
Clarges Mayfair Mixed Use 100 192 Q3 2017 360 138 6.0 - 463
Glasgow Fort (MSCP & Additional retail / leisure units) Retail 75 12 Q3 2016 1 7 0.4 - -
The Hempel Phase 1 Residential 100 25 Q1 2016 32 1 - - 51
The Hempel Phase 2 4 Residential 100 32 Q2 2016 48 13 - - 74
Aldgate Place, Phase 1 5 Residential 50 221 Q2 2016 30 27 - - 81
Total Under Construction 658 560 265 17.0 - 669
Retail Capex6 80
Data includes Group's share of properties in Joint Ventures & Funds (except area which is shown at 100%)
1 From 1 October 2015
2 Estimated headline rental value net of rent payable under head leases (excluding tenant incentives)
3 Residential development of which £332m completed or exchanged and a further £10m under offer
4 Now excludes 17 Craven Hill Gardens - sold separately
5 End value excludes sale of hotel site, receipts of £6m (BL Share). Sale now completed
6 Capex committed and underway within our investment portfolio relating to leasing & asset enhancement
Near-Term Pipeline
At 30 September 2015 Sector BL Share Sq ft Start On Site Total Cost1 Status
'000 £m
5 Kingdom Street 2 Offices 100 240 2016 209 Consented
100 Liverpool Street 3 Offices 50 509 2017 260 Consented
1 Finsbury Avenue Offices 50 303 2017 150 Consented5
1 Triton Square Offices 100 217 2017 340 Pre-submission
Blossom Street, Shoreditch Mixed Use 100 347 2016 242 Submitted
Plymouth Leisure Retail 100 102 2016 39 Consented
New Mersey Shopping Park, Speke - Leisure Retail 65 66 2016 17 Consented
Forster Retail Park, Bradford, Phase 3 Retail 100 63 2016 18 Pre-submission
Aldgate Place, Phase 2 Residential 50 145 2016 58 Consented
54 The Broadway, Ealing Residential 100 34 2016 18 Consented
Total Near-Term 2,026 1,351
Retail Capex4 110
1 Total cost including site value. Excludes notional interest as interest is capitalised individually on each development at our capitalisation rate
2 210,000 sq ft of which is consented
3 Planning granted for 517,000 sq ft, but currently considering options to enhance design and mix
4 Forecast capital commitments within our investment portfolio over the next 2 years relating to leasing & asset enhancement
5 Resolution to grant planning consent
Medium-Term Pipeline
At 30 September 2015 Sector BL Share Sq ft Status
'000
Eden Walk Shopping Centre, Kingston Mixed Use 50 562 Submitted
Canada Water Masterplan 1 Mixed Use 100 5,500 Pre-submission
2 - 3 Finsbury Avenue 2 Offices 50 189 Pre-submission
Meadowhall Leisure Retail 50 330 Pre-submission
Putney High Street Mixed Use 100 110 Consented
Total Medium-Term 6,691
1 Assumed net area based on gross area of up to 7m sq ft
2 Existing net areas, scheme in early design stages
Residential development programme
At 30 September 2015 Sq Ft No. Market Units PC Date/ BL Share Current Value1 Cost To complete2 End Value Sales Exchanged3
Status
'000 % £m £m £m £m
Clarges Mayfair4 103 34 Q3 2017 100 265 107 463 259
Mixed use 103 34 265 107 463 259
The Hempel Phase 1 25 15 Q1 2016 100 32 1 51 26
The Hempel Phase 2 32 19 Q2 2016 100 48 13 74 -
Aldgate Place Phase 1 221 154 Q2 2016 50 30 27 81 47
Residential-led 278 188 110 41 206 73
Aldgate Place Phase 2 145 Consented 50
54 The Broadway, Ealing 34 Submitted 100
Near Term prospective 179
Total Committed Residential 381 222 375 148 669 332
Data includes Group's share of properties in Joint Ventures & Funds (except area which is shown at 100%)
1 Excluding completed sales
2 From 1 October 2015. Cost to complete excludes notional interest as interest is capitalised individually on each development at our capitalisation rate
3 Of which £16m completed at The Hempel Phase 1. Excludes completed sale of hotel site at Aldgate Place for £6m (BL Share)
4 Includes 9,500 sq ft of affordable housing (11 units)
Superstores
Stand-alone Superstores1 In Shopping Centres & Shopping Parks2 Total Exposure1,2,3
Store Size No of Stores Valuation (BL share) Capital Value WALL to FB No of Stores Valuation (BL share) Capital Value WALL to FB No of Stores Valuation (BL share) Capital Value WALL
'000 sq ft £m psf £m psf £m psf to FB
>100 8 179 345 12.9 5 367 552 13.5 13 546 461 13.3
75-100 14 286 457 18.2 1 41 483 12.4 15 327 460 17.5
50-75 17 294 440 12.7 1 13 198 11.6 18 307 419 12.7
25-50 9 63 239 8.9 3 31 433 15.0 12 94 280 10.8
0-25 4 13 190 10.7 17 78 418 11.4 21 91 356 11.3
Sept 2015 52 835 389 14.2 27 530 494 13.1 79 1,365 424 13.8
March 2015 57 924 395 14.5 29 529 491 13.9 86 1,453 426 14.4
Geographical Spread Annualised Gross Rent (BL Share) Lease Structure
London & South 58% Tesco £37m RPI and Fixed 7%
Rest of UK 42% Sainsbury's £32m OMRR 93%
Other £6m
1 Excludes £12m non-foodstore occupiers in superstore led assets, and Tesco Bursledon, sold post period end
2 Excludes non food-format stores e.g. Asda Living
3 Excludes £102m of investments held for trading comprising freehold reversions in a pool of Sainsbury's Superstores
This information is provided by RNS
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