the scale of commitment to cre howard cooke 2 7th june 2014
TRANSCRIPT
The Scale of Commitment to CRE
Howard Cooke
27th June 2014
Introduction
• Research Analysis Phase 1
• Surplus Property
• Retail Sector
• Research Phase 2
Research – Phase 1
• FTSE 350 to December 2012
• Total Turnover - £1.16 trillion
• Largest Sector - Banking Total £302bn
• Total Profit - £168 billion
• Most profitable - Health Average £1.8bn
• People - 6.4m FTE’s
• Total Lease Commitment £132.5bn
• UK Business Lease Commitment £382bn
• Total Commitment £1.16 Trillion (Rent, Rates, Services &
FM)
Turnover
PBIT
Profit Ratio
Banking & Finance
Construction Consumer Goods
Engineering Health Industrials Leisure Prof & Support Services
Retailing TMT Transport Utilities0%
20%
40%
60%
80%
Operating Lease Profile Per Sector
Less than 1 Year 2 to 5 Years Over 5 Years
% o
f Tota
l Lease C
om
mit
ment
Lease Commitment
Lease Commitment
Banking & Finance
Construction Consumer Goods
Engineering Health Industrials Leisure Prof & Sup-port Services
Retailing TMT Transport Utilities Average of Companies
0%
100%
200%
300%
400%
500%
600%
700%
Operating Lease Costs as a Percentage of Profit
Lease Commitment
Lease Length
• Retailing• Leisure• Utilities
Proportion of Profit
• Retailing• Transport• Leisure
Absolute Measure
• Retailing• TMT• Banking &
Finance
Commitment
Surplus Property Headline Numbers
• Total Provision - £4.2 billion
• Gross Liability - £25.7bn
• UK Business - £74bn
• Smallest Provision - Health (Total & Average)
• Largest Provision - TMT (Total & Average)
Net Book Value as % of Net Assets
Surplus Property
Surplus Property
Surplus Property
Contraction Remain the Same Expansion0%
20%
40%
60%
80%
0%
37%
63%
4%
59%
37%
11%
75%
13%
Comparison of Change of Revenue, Headcount & UK Property
Total Revenue Growth Headcount UK Property Portfolio
Survey
Total - 2007 Total - 2008 Total - 2009 Total - 2010 Total - 2011 Total - 2012 -
5,000
10,000
15,000
20,000
25,000
30,000
35,000
40,000
Retail Sector - Operating Lease Commitment
Within One Year (£'m) Two to Five Years (£'m) More than Five Years (£'m)
£'m
'sRetail Sector
£7,826m
£8,135m
£6,468m
£8,533m
£9,167m
£9,387m
Total - 2007 Total - 2008 Total - 2009 Total - 2010 Total - 2011 Total - 2012 75
100
125
150
175
200
Retail Sector - Key Metrics Rebased to 2007
Turnover PBIT Leases Commitment Property Provision
2007 =
100
Retail Sector
Retail Sector
Retail Sector
Retail Sector
Retail Sector
Next Steps
• Conclude 2005 to 2013 data
• Further Questionnaire
• Research Output
Howard Cooke
t: 01628 782639 m: 07768 996705 e: [email protected]