half year results to sept 2016 · 6.3% yoc 2 planning submitted 527,000 sq 58,000 ft 6.3% yoc...

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HALF YEAR RESULTS TO SEPT 2016

AGENDA

2

Highlights

Strategy

Financial

Investment & Development

Property

Outlook

Questions

HIGHLIGHTS

Key Highlights Actively generating long term secure and sustainable income with value upside

4

1. Including developments

Portfolio positioned around strong fundamentals:

Logistics and convenience retail benefiting from structural support

Growing income with security and reliability

Occupier relationships providing superior intelligence

Delivering de-risked developments

Finance and costs aligned to our real estate strategy

Distribution Exposure1

58.5% Up from 35.7% two years’ ago

Retail Park Exposure1

16.8% Down from 30.1% two years’ ago

WAULT

12.6 years Core portfolio 12.9 years

Contractual rental uplifts

50.7% Of rent roll

Debt Maturity

5.7 years Up from 3.6 years two years’ ago

Financial Highlights

5

EPRA Earnings

+8.1%

Increases to 4.0p

Net Rental Income¹

+7.6% +£2.8m

Dividend progression

+2.9% 112% dividend cover

EPRA NAV

143p -3% since March 16

Debt refinancing

£130m 8.3 year term at 2.7%

1. Including JV rental income

2. LTV includes deferred consideration on sales at Kings Lynn and Warrington

3. Based on annual EPRA earnings and opening NAV

4. March 2016 numbers used as comparative

Sept 2016 Sept 2015

EPRA Earnings £25.3m £23.4m

EPRA Earnings per share 4.0p 3.7p

Dividend per share 3.60p 3.50p

EPRA NAV per share 143p 148p4

Earnings yield3 5.5% 5.3%

Reported (Loss)/ Profit £(13.1)m £64.3m

LTV 36%2

38%4

Total Accounting Return (0.5)% 8.2%

Operational Highlights

6

1 Growing Reliable

Rental Income

£4.0m p.a. of rental income from completed developments

£2.0m p.a. additional rent through 33 asset management actions

1.9% like for like income growth1

2 Efficient

Capital Allocation

£82m retail, leisure & residential disposals, 6.4% NIY

£32m last mile acquisitions, 6.4% NIY

£56m of PPE acquisitions at 6.3% NIY

3 Relative

Outperformance

Capital return -1.3% v IPD All Property -2.1%

Total return +1.5% v IPD All Property +0.2%

3 year total return outperformance of 130 bps

1. Core portfolio

STRATEGY REVIEW

Investment Strategy Income growth with structural support

8

Income

Asset

Management

Development

In a yield starved environment, compounding income will be the largest

contributor of total returns

Repetitive and dependable income is increasingly attractive

Look to durable/sustainable cash flows with growth opportunities and high

terminal value – not all income is the same

Income compounding strategies will outperform hyper active ones

Working with our key customers to deliver fit for purpose real estate

Investing opportunistically to deliver income growth and capital appreciation

Delivering de-risked short cycle developments

Access structural growth sectors at attractive entry levels

Our Portfolio Income growth with structural support

9

Net

Initial

Yield1

WAULT

(Years)

Income

Uplifts4

Total

Property

Return

Distribution

£867m2 5.2% 12.7 57% +2.8%

Convenience & leisure

£141m 5.5% 19.4 88% +3.3%

Retail parks

£249m2 5.7% 10.3 23% 0.0%

Long Income JVs

£104m 6.8% 11.7 16% +2.1%

Office & Residential

£121m - - - -6.2%

Total Portfolio3

£1,482m 5.4% 12.6 51% +1.5%

58.5%

9.5%

16.8%

7.1%

8.1%

1. Topped up NIY


3. NIY, WAULT and Income uplifts are for investment portfolio

4. Fixed and RPI contractual uplifts

September

2016

Rental Income Profile Delivering long term repetitive & dependable income

10

98%

2%

Net Income Income Leakage

28.5%

22.2%

45.9%

3.1%

0.3%

Fixed Indexed Linked

Market Review No review

Turnover linked

1.0%

38.7%

33.2%

13.1%

14.0%

0-3 yrs 4-10 yrs 11-15 yrs

16-20 yrs >20 yrs

Contractual Rent Reviews Unexpired Lease Terms Income Leakage

11.6

12.7 13.1

12.8 12.6

10.5

11.0

11.5

12.0

12.5

13.0

13.5

2013 2014 2015 2016 1H17

95.0%

99.6% 99.7% 99.3% 98.5%

92.0%

93.0%

94.0%

95.0%

96.0%

97.0%

98.0%

99.0%

100.0%

2013 2014 2015 2016 1H17

Historical Occupancy Rate (% rent roll) Historical WAULT (years)

FINANCIAL REVIEW

Rental Income Progression

12

Warrington

1. £0.5m reduced income from net sales, £0.5m income uplift from asset management and £2.1m income uplift from expected letting of Omega, Warrington

2. Other near term expected lettings

Net

Renta

l In

com

e

84.1 84.1 84.1 86.2

94.6

Contracted

2.0 5.0

2.1 1.2 4.0

7.2

50.0

55.0

60.0

65.0

70.0

75.0

80.0

85.0

90.0

95.0

100.0

£77.7

31 March 16

Reported Net Rent to

Contracted Income

Future Contracted

Rent Potential

(£m)

Net Divestment

30 Sept 16

Contracted Rent

PPE Activity1

Completed Developments

H1 Asset Management

Pipeline developments

Expected Lettings2

Income Statement1

13

30 Sept 2016 30 Sept 2015

Net rental income £39.7m £36.9m

Management fees £0.5m £0.6m

Administrative costs (EPRA cost ratio 17%) £(6.7)m £(6.7)m

Finance costs £(8.2)m £(7.4)m

EPRA earnings £25.3m £23.4m

EPRA EPS 4.0p 3.7p

DPS 3.6p 3.5p

Dividend Cover 112% 107%

Valuation movement £(23.0)m £47.2m

Fair value of derivatives and hedge break costs £(13.1)m £(7.0)m

Reported (Loss)/Profit £(13.1)m £64.3m

1. Proportionally consolidated basis

Balance Sheet1

14

30 Sept 2016 31 Mar 2016

Property portfolio £1,482.4m £1,520.9m

Cash £59.2m £46.7m

Bank debt £(649.9)m £(637.9)m

Fair value of derivatives £(33.4)m £(23.9)m

Other net assets /(liabilities) £2.5m £(7.6)m

Net Assets £860.8m £898.2m

EPRA Adjustments £33.4m £23.9m

EPRA Net assets £894.2m £922.1m

EPRA NAV per share 143p 148p


Movements in EPRA NAV

15

NAV per share (p)

147.7 138.6 148.0 144.2 143.0

4.0 3.8

Core1

Non Core

1.2

130.0

135.0

140.0

145.0

150.0

155.0

160.0

EPRA NAV Mar '16 EPRA Earnings Dividend Paid Revaluation Swap costs & other EPRA NAV Sept '16

1.7

2.0


Finance Metrics1

16

30 Sept 2016 31 Mar 2016

Gross Debt £649.9m £637.9m

Undrawn facilities £183.8m £69.9m

Loan to Value 36%2 38%

Weighted average cost of finance 3.3% 3.5%

Weighted average maturity 5.7 years 5.6 years

Hedging3 82% 84%


2. LTV includes deferred consideration on sales at Kings Lynn and Hut Warrington

3. Assuming existing facilities are fully utilised

Historical Financial Data

Debt Maturity

(years)

17

3.0

3.7

4.2

5.6 5.7

0.00

1.00

2.00

3.00

4.00

5.00

6.00

FY 13 FY 14 FY 15 FY 16 HY 17

Interest Cover Ratio

(x)

Cost of Debt

(%)

2.2

2.9

4.0

5.0 5.0

-

1.00

2.00

3.00

4.00

5.00

6.00

FY 13 FY 14 FY 15 FY 16 HY 17

4.0% 3.9%

3.7% 3.5%

3.3%

0.0%

0.5%

1.0%

1.5%

2.0%

2.5%

3.0%

3.5%

4.0%

4.5%

FY 13 FY 14 FY 15 FY 16 HY 17

Loan to Value Ratio

(%)

43%

32%

36%

38%

36%

0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

50%

FY 13 FY 14 FY 15 FY 16 HY 17

INVESTMENT & DEVELOPMENT

REVIEW

Investment Market Current market backdrop

19

Investment volumes down 32% in last 6 months¹

Market has stabilised since EU Referendum vote

IPD all property capital returns up 0.1% in October

Liquidity returning, especially for

Structurally supported sectors

Digestible lot sizes

Assets with contractual income growth

Market currently driven by income-led fundamentals

1. Source: Property Data YTD

12 disposals for £6.9m1

9 under offer

79 sold / under offer

70 remaining

Disposals Monetising mature assets to reinvest into higher growth opportunities

20

Newry

Retail and Leisure

Kings Lynn MIPP

Retail

Sold Sept 16

£30.7m

7.4% NIY

Retail

Sold Sept 16

£24.0m

5.8% NIY

Taunton

Leisure

Sold Apr 16

£9.1m

5.5% NIY

£84.2m1 of retail park and leisure disposals

7 retail parks for £75.1m, NIY 6.5%

1 leisure asset for £9.1m, NIY 5.5%

Newry and Kings Lynn represented two of our larger retail parks

Continue to engage on further retail disposals

Residential

Moore House JV

Residential

LM Share:

40%

1. YTD. Investment values shown are LondonMetric’s share

Retail

Sold Various

£8.0m

5.7% NIY

Acquisitions Focus on ‘last mile’ acquisitions

21

‘Last Mile’ H1 17 - £32.2m, 3 locations

Hemel Hempstead Basildon

£8.3m

6.4% NIY

ITAB

8.5 yrs WAULT

£3.8m,

6.5% NIY

Modular Heating

4.0 yrs WAULT

£88.6m1 of acquisitions at 6.3% NIY:

£79.4m of ‘last mile’ acquisitions, NIY 6.3%

£9.2m of retail acquisitions for long income JV, NIY 6.8%

Last mile grown from 7 to 19 assets - c70% off market

Stevenage Crawley Portfolio of 6 assets

£26.0m

6.5% NIY

Various tenants

7.0 yrs WAULT

£10.7m (development)

5.2% YOC

Barker & Stonehouse

15.0 yrs WAULT

£7.3m,

6.25% NIY

Carphone Warehouse

8.7 yrs WAULT

‘Last Mile’ PPE - £47.2m, 9 locations

19 ‘Last Mile’ Assets

Acquired since March 16

1. YTD. Investment values shown are LondonMetric’s share

>1.0m sq ft

6.7% YOC2

Additional rent of £7.2m2

Developments De-risked short cycle developments

22

Bedford Stoke

Convenience

Crawley

Wakefield

112,000 sq ft

6.3% YOC2

Planning submitted

527,000 sq ft

6.3% YOC

Completed Sept 16

Omega, Warrington

660,000 sq ft

7.0% YOC2

Planning received

58,000 sq ft (3 assets)

5.7% YOC

Various Completions

270,000 sq ft

6.3% YOC2

Planning received

357,000 sq ft

7.0% YOC

Completed Nov 16

0.6m sq ft completed in H1

6.3% YOC

Addition rent of £4.0m

0.6m sq ft under development or

committed in H2

7.2% YOC1

Additional rent of £5.8m1

Committed

Pipeline

1. Includes expected rent from Warrington

2. YOC based on expected rental income

In Legals Let Let

PROPERTY REVIEW

Asset Management Activity

24

No. Area

(000 Sq Ft)

£m

uplift

% above

ERV

LFL rental

growth1

WAULT

(Years)

New Lettings 11 76 0.9 2.1 0.5 13.8

Rent Reviews 22 3,082 1.1 4.3 1.4 -

HY 17 Total 33 3,158 2.0 4.1 1.9

New Lettings PPE 4 68 0.4 5.7 0.1 15.0

Rent Reviews PPE 7 950 0.1 3.9 0.2 -

Total YTD 44 4,176 2.5 4.1 2.2

1. Core portfolio only

Distribution Portfolio 58.5% of portfolio providing end to end logistics

25

Regional Distribution Mega Distribution

7 assets, 4.7m sq ft

£24.7m rent (av £5.25 psf)

Average NIY 4.9%2

WAULT 14.7 years

‘Last Mile’


£7.7m rent (av £6.30 psf)

Average NIY2 6.1%

WAULT 7.8 years

1. As at 30 September 2016, adjusted for PPE transactions and development completions. Excludes pipeline developments

2. Topped up net initial yield

3. 5 yearly equivalent uplift

3 rent reviews settled (1PPE)

+9.1%3 ahead of previous passing

3 rent review settled


2 rent reviews settled (1PPE)



£15.6m rent (av £5.70 psf)

Average NIY2 5.4%

WAULT 11.0 years

Retail Portfolio Highly income generative and secure

26

Convenience Retail Retail Parks


£15.7m rent (av £17.15 psf)

Average NIY2 5.7%

WAULT 10.3 years

JV Long Income


£7.5m rent (av £17.40 psf)

Average NIY2 6.8%

WAULT 11.7 years

1. As at 30 September 2016

2. Topped up net initial yield

3. 5 yearly equivalent


£8.7m rent (av £15.85 psf)

Average NIY2 5.5%

WAULT 19.4 years

8 rent reviews (2 PPE)


12 lettings (2 PPE)+£1.0m of rent

9 rent reviews


Convenience & Leisure Retail Parks JV Long Income

4 rent reviews settled (3 PPE)


2 letting (1PPE) +£0.2m of rent

Property Performance Continued outperformance

27

Total Return Income Return Capital Return

HY to Sept 16 LMP IPD LMP IPD LMP IPD

Distribution 2.8 1.7 2.6 2.5 0.2 -0.8

Retail 0.9 -0.5 3.1 2.5 -2.1 -3.0

Core Portfolio 2.2 3.0 -0.8

Total Portfolio 1.5 0.2 2.8 2.3 -1.3 -2.1

LMP Distribution outperformance 110 bps

LMP Retail outperformance 140 bps

OUTLOOK

Investment Market Outlook

29

Real estate returns to be dominated by income & income growth

Compounding income delivering attractive long term returns

Income strategies to outperform hyper-active

Performance will continue to polarise

Risk appetite is diminishing

Over-rented & shortening leases being re-priced

Yields tightening for assets with structural support

Investment demand attracted to fundamentals

Assets generating stable, consistent returns with potential for capital appreciation

Income as % of

Total Returns1

2016: 142%

2017: 102%

2018: 94%

2019: 87%

2020: 75%

1. Source: Capital Economics

Occupier Market Outlook

30

Polarisation of shopping patterns continues, driven by consumer

demands

Internet shopping is growing market share

Legacy retail remains exposed

Logistics demand accelerating

Retailers account for c.65% of demand

Rental trajectory positive

Last mile demand/supply dynamics highly attractive

Current headwinds & economic uncertainty likely to accelerate

occupier trends

Non food Retail Sales

20% from 13% in 2011

Online Sales Growth

+47% to 26% of all non food sales by 2020

Amazon’s take up YTD

19.2% of total logistics take up

Take up for 9 months to Sept 161

26.2m sq ft Exceeded 2015 total take up

Availability as at Q3 161

26.4m sq ft 22% down y-o-y

1. Source: Savills, warehouse sizes >100,000 sq ft

Actively generating long term secure and sustainable income with value upside

APPENDICES

32

Revaluation Rent Fixed

Area

Valuation (Share)

Surplus/ (Deficit) Occupancy NIY1 WAULT (years) roll uplifts

Average

rent

(£ psf)

As at 30-Sept-16 (m sq ft) (£m) (£m) (%) (%) (%) expiry break (£m) (%) Existing

Mega distribution 5.4 519.0 (3.8) (0.7) 100.0 5.1 14.6 14.4 28.5 64 5.25

Regional distribution 2.4 240.0 (0.1) (0.0) 100.0 5.3 10.4 8.8 13.5 56 5.70

Local distribution 0.7 73.0 (0.8) (1.1) 100.0 6.1 7.4 7.3 4.6 16 6.30

Distribution 8.5 832.0 (4.7) (0.6) 100.0 5.2 12.7 12.1 46.6 57.1 5.60

Retail – wholly owned 0.9 244.9 (8.0) (3.2) 97.3 5.7 10.3 9.1 15.7 22.9 17.15

Retail - convenience 0.3 80.0 (1.1) (1.3) 98.1 5.0 18.3 17.9 4.8 78.6 17.10

Retail - MIPP JV 0.7 73.7 (1.1) (1.5) 100.0 6.2 10.7 10.4 4.9 24.8 14.15

Retail - DFS JV 0.3 30.7 (1.0) (3.1) 100.0 8.0 13.5 13.5 2.6 0.0 30.30

Retail Subtotal 2.2 429.3 (11.2) (2.6) 98.1 5.8 12.1 11.2 28.0 30.6 17.20

Leisure 0.3 60.7 0.6 1.0 100.0 6.1 20.7 20.7 3.9 100.0 15.10

Core portfolio 11.0 1,322.0 (15.3) (1.1) 99.3 5.4 12.9 12.2 78.5 49.7 7.70

Office 0.2 72.3 (7.6) (9.6) 85.9 5.5 7.7 7.7 4.4 68.3 21.50

Investment portfolio 11.2 1,394.3 (22.9) (1.6) 98.5 5.4 12.6 12.0 82.9 50.7 8.00

Residential - 48.8 (2.9) (5.7) 0.7

Developments 0.8 39.3 2.8 7.8 0.5

Total 12.0 1,482.4 (23.0) (1.5) 84.1

Portfolio Metrics

1. Topped up NIY

33

Top 10 tenants account for 54%

of contracted rent3

80 tenants comprise the

remaining 46%3

Contractual rental uplifts on

50.7% of portfolio

Market intelligence through our

relationships allows us to better

understand trends and make the

right asset decisions

Our Income Metrics Our occupier-led approach at the centre of our decision making

Income exposure to retailers

80% of total rental income

Income exposure to PLCs

71% of total rental income

Within next 3 years

1.0% of income expires

11.3%

6.9%

6.4%

4.9%

4.5%

4.2%

4.2%

4.0%

3.7%

3.6%

0%

10%

20%

30%

40%

50%

60%

£60.4bn mkt cap. Pharmaceuticals

Mkt cap n/a. Logistics operator

Mkt cap n/a. Online retailer

£0.5bn mkt cap. Furniture retailer

£2.8bn mkt cap2. Cinema operator

£5.2bn mkt cap2. Multi-channel retailer

£5.4bn mkt cap. Food & GM retailer

£3.9bn mkt cap. Electricals retailer

£20.1bn mkt cap2. Value retailer.

£4.7bn mkt cap. Parcel delivery

Contracted rental income

£84.1m per annum

1. Top 10 Tenants as at 30 Sept 2016, Market Capitalisations as at November 2016

2. Market Capitalisation of parent company

3. Commercial portfolio

Top 10 tenants1

Top 10 Assets as at 30 Sept 2016

34

Name Principal occupiers

Annualised net

rent (£m)

Let by

income (%)

WAULT

(years)

Primark, Islip Primark 5.4 100 24.0

Primark, Thrapston Primark 4.0 100 16.0

Dixons Carphone, Newark Dixons Carphone 4.3 100 16.8

Marlow International, Marlow Allergan, Dunn &

Bradstreet 4.4 86 7.7

Argos, Bedford Argos 3.8 100 6.2

Eddie Stobart, Dagenham Eddie Stobart 3.1 100 14.8

HUT, Warrington The Hut Group 3.8 100 14.1

Royal Mail, Daventry Royal Mail 2.5 100 6.9

Marks & Spencer, Sheffield M&S 2.6 100 7.2

Kirkstall Bridge Shopping Park, Leeds Various 2.4 95 11.9

Retail Market Consumer habits have changed supported by online and more frequent top up shops

35

Share of online non food retail sales to

grow to £50bn by 2020 from £21bn in

2011

Online sales grown consistently by c.£3.5bn

p.a. since 2005 – Online growth is stable in

absolute terms

ASOS 117m website visits per month

versus super regional shopping centres of

c.25m per year

26 million households received c. 1.1 billion

parcels in 2015 - next day delivery is up

16% year on year

Internet Only Convenience

Convenience food market share grown

from 14.6% to 17.8% in last 5 years

Sector expected to grow 5% p.a., significantly

ahead of all retail sales growth forecasts

New entrants (Aldi, Lidl, B&M etc) are taking

sizeable market share

Aldi & Lidl account for c.10.5%+ of UK grocery

market

Marks & Spencer to close GM stores & convert

to Simply Food. M&S Simply Food to grow

stores by 250

Omni Channel

Internet sales make up c.30%+ of established omni

channel retailers (eg Next = c.40%; Dixons Carphone =

c.30%; John Lewis = c.40%; Argos = c.55%)

Established omni channel retailers seeing store sales fall with

internet sales rising (eg John Lewis, Argos, M&S)

The need for physical remains – click & collect and internal

showrooming

Retailers continue to re-position their store portfolio (eg

DixonsCarphone from 402 stores to 323 stores by end

2016/17) giving access to 80% of population within 20 min

drive time

Sources: Javelin, IMRG, Verdict, Experian, Mintel, Company disclosures

Evolving Retailer Landscape The modern supply chain is now consumer facing

36

INVESTMENT YIELDS

37

4.0%

5.0%

6.0%

7.0%

8.0%

9.0%

10.0%

11.0%

Retail - good

secondary

RW - prime

restricted solus

RW - prime

restricted RP

RW -

secondary

Distribution -

prime

Industrial -

good

secondary

Peak yields Trough yields Mean yields Current yields 1 StdDev

Source: CBRE, Oct 2016 – yields assume rack rented 15 year leases let to strong covenants with open market rent reviews

INVESTMENT ACTIVITY

H1 2016/17

38

Price LMP share NIY WAULT

AQUISITIONS Sector Date (£m) (£m) (%) to expiry to 1st break

Basildon Distribution May ’16 3.8 3.8 6.5 4.0 4.0

Crawley Distribution May ‘16 20.1 20.1 6.3 - -

Hemel Hempstead Distribution June ’16 8.3 8.3 6.4 8.5 8.5

TOTAL 32.2 32.2 6.4 7.1 7.1

DISPOSALS

Taunton Leisure April ‘16 9.1 9.1 5.5 22.2 22.2

Bridgwater Retail April ’16 4.9 2.5 5.1 16.8 16.8

Chatham Retail April ’16 6.9 3.4 5.6 17.2 17.2

Grimsby Retail May ’16 4.1 2.1 6.4 19.0 14.0

Warrington, (Fordton RP) Retail Aug ’16 6.6 6.6 5.4 14.8 14.8

Kings Lynn Retail Sept ’16 24.0 24.0 5.8 13.3 12.7

Newry Retail Sept ’16 30.7 30.7 7.4 10.1 7.6

Moore House Residential Various 9.5 3.8 2.3 - -

TOTAL 95.8 82.2 6.4 13.0 11.6

TOTAL ACTIVITY 128.0 114.4

39

INVESTMENT ACTIVITY

Post Period End

Price LMP share NIY WAULT

Acquisitions Sector (£m) (£m) (%) to expiry to 1st break

Hull Retail 9.4 4.7 7.5 12.0 12.0

Dartford Retail 9.0 4.5 6.2 20.0 20.0

Stevenage Distribution 7.3 7.3 6.3 8.7 3.7

Portfolio of 6 assets Distribution 26.0 26.0 6.5 7.0 6.5

Bicester Distribution 3.2 3.2 5.9 9.5 4.5

Barker & Stonehouse, Crawley Distribution 10.7 10.7 5.2 15.0 15.0

TOTAL 65.6 56.4 6.3 10.1 9.0

Disposals

St Albans Retail 5.8 5.8 6.1 3.9 3.9

Moore House Residential 7.7 3.1 2.1 - -

The Hut Group, Warrington Distribution 53.7 53.7 6.5 14.0 14.0

TOTAL 67.2 62.6 6.4 12.7 12.7

TOTAL ACTIVITY 132.8 119.0

Development Activity

40

Location Sector Sq ft Comment Expected

PC5 date

Rent roll /

uplift

YOC4 on

PC5

Valu’n

yield

Sept 16

(‘000) (£m) (%) (%)

Warrington1 Distribution 357 Terms agreed to let property Nov 2016 2.1 7.0 6.1

Kings Lynn1,3 Retail 64 Next, DFS, B&M, Tapi Oct 16 1.0 11.3 sold

Crawley Distribution 53 Barker & Stonehouse Mar 17 0.6 5.2 5.2

Tonbridge Retail 53 Home Bargains, Jollyes, Go-Outdoors Q3 17 0.3 6.3 6.4

Tonbridge1 Retail 18 M&S/Halfords Oct 16 0.4 10.1 5.0

Ipswich2 Retail 31 Wickes Q3 17 0.6 7.3 6.1

Coventry Retail 18 Aldi new build Feb 17 0.3 7.9 5.1

Loughborough Retail 12 Morrisons – Food store extension to 54k sq ft Dec 16 0.5 5.1 4.7

Total committed 606 5.8 7.2 5.8

Bedford2 Distribution 660 In discussions 2017/18 4.3 7.0 -

Stoke2 Distribution 270 Terms agreed to let 140,000 sq ft 2017/18 1.4 6.3 -

Crawley2 Distribution 112 In discussions Q4 17 1.3 6.3 -

Launceston2 Retail 30 B&M and 2 tenants in legals Q4 17 0.2 5.9 -

Pipeline 1,072 7.2 6.7 -

1. Completed post period end

2. Based on anticipated rents

3. Sold in the period

4. Yield on cost

5. Practical completion

41

Development Capital Expenditure1,2,3 (£m)

1. Total costs include land acquisition

2. Capex on pipeline is subject to commitment and may change

3. Development capex schedule excludes smaller asset management capex

Total Costs to H1 H2 FY FY FY

Cost 31-Mar-16 16/17 16/17 16/17 17/18 18/19

Wakefield 40 23 7 10 17

Liverpool 8 5 3 0 3

St Margaret’s, Leicester 6 4 1 1 2

Aldi, Leicester 5 2 3 0 3

Ferndown 6 4 2 0 2

Warrington 30 5 12 13 25

Kings Lynn 9 1 3 5 8

Crawley (53k sf) 11 0 0 11 11

Tonbridge (18k sf) 4 1 1 2 3

Tonbridge (53k sf) 5 0 0 3 3 2

Ipswich 8 3 0 1 1 4

Coventry 4 1 1 2 3

Loughborough 9 1 0 8 8

Total 145 50 33 56 89 6 0

Bedford 61 0 1 1 2 43 16

Stoke 23 4 1 1 2 13 4

Crawley (112k) 20 0 8 2 10 8 2

Launceston 4 0 0 1 1 3

Total 108 4 10 5 15 67 22

Co

mp

lete

d H

1

Co

mm

itte

d H

2

Pip

elin

e

Debt Facilities As at 30 September 2016

Facility Drawn Maturity

Asset(s) Sector Lender (£m) (£m) (years) Expiry

Wholly-owned portfolio

Distribution term loan Distribution Helaba 196.2 196.2 5.2 28-Nov-21

Unsecured RCF All Syndicate 443.8 265.0 5.5 01-Apr-22

Private Placement All Syndicate 65.0 65.0 7.0 21-Sept-23



Total wholly-owned 770.0 591.2 6.0

JV portfolio (LondonMetric at share)

Moore House (40%) Residential RBS 4.4 4.4 0.9 28-Aug-17

MIPP JV (50%) Retail Deutsche Pfandbriefbank 40.9 35.9 3.3 22-Jan-20

DFS JV (30.5%) Retail M&G 18.4 18.4 2.8 23-Jul-19

Total JV portfolio 63.7 58.7 3.0

Total Group and JV 833.7 649.9 5.7

42

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half year results to sept 2016 · 6.3% yoc 2 planning submitted 527,000 sq 58,000 ft 6.3% yoc...

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