Interim Results. November 2015

Transcription

1 Interim Results November 2015

2 Disclaimer This presentation (hereinafter "this document") has been prepared by Hibernia REIT plc (the "Company") for information purposes only. This document has been prepared in good faith but the information contained in it has not been independently verified and does not purport to be comprehensive. The Company is not undertaking any obligation to provide any additional information or to update this document or to correct any inaccuracies that become apparent. This document is neither a prospectus nor an offer nor an invitation to apply for securities. The information contained in this document is subject to material updating, completion, revision, amendment and verification. This document does not constitute or form a part of any offer for sale or solicitation of any offer to buy or subscribe for any securities. Any prospective investor must make its own investigation and assessments and consult with its own adviser concerning any evaluation of the Company and its prospects. No representation or warranty, express or implied, is given by or on behalf of the Company, its group companies, or any of their respective shareholders, directors, officers, employees, advisers, agents or any other persons as to the accuracy, completeness, fairness or sufficiency of the information, projections, forecasts or opinions contained in this presentation. In particular, the market data in this document has been sourced from third parties. Save in the case of fraud, no liability is accepted for any errors, omissions or inaccuracies in any of the information or opinions in this document. Certain information contained herein constitutes "forward-looking statements", which can be identified by the use of terms such as "may", "will", "should", "expect", "anticipate", "project", "estimate", "intend", "continue", "target" or "believe" (or the negatives thereof) or other variations thereon or comparable terminology. Due to various risks and uncertainties, actual events or results or actual performance of the Company may differ materially from those reflected or contemplated in such forward-looking statements. No representation or warranty is made as to the achievement or reasonableness of, and no reliance should be placed on, such forward-looking statements. There is no guarantee that the Company will generate a particular rate of return. The Company has not been, and will not be, registered under the US Investment Company Act of 1940, as amended, and investors are not entitled to the benefit of that Act. This Presentation is available only to persons who are (1) both Qualified Institutional Buyers as defined in Rule 144A under the US Securities Act of 1933, as amended, as well as Qualified Purchasers within the meaning of section 2(a)(51) of the US Investment Company Act of 1940, as amended, or (2) outside the United States and not US persons as defined in Regulation S under the US Securities Act of 1933, as amended. 2

3 Agenda Highlights Financial results Market update Acquisitions and developments Portfolio management Conclusion and outlook 3

4 Highlights Delivering NAV and net profit growth EPRA NAV per share +9.2% to 122.1c Net income of 73.7m, including revaluation gains of 63.6m Significant letting activity Over 120k sq. ft. of office lettings including major pre-lets to Twitter and HubSpot Contracted rent roll now 34.4m*, +52% on March 2015 Good progress on development pipeline Block 3, Wyckham Point completed ahead of schedule and on budget: now fully let Windmill and SJRQ on track for end 2017 and mid-2018 completion Refurbishment of Cumberland House commenced New 400m RCF agreed, providing low cost flexible funding Broadening universe of potential investors EPRA Index inclusion Internalisation of management team *Includes pre-let refurbishments 4

5 Portfolio overview Portfolio by sector (value) In-place office and development portfolio (net lettable area) Industrial 2% Residential 15% Office IFSC 29% Committed developments* 239k sq. ft. (pre-let 123k sq. ft.) CBD Office Development / Refurb 15% Total: 739m In-place office portfolio 605k sq. ft. Total: 1.2m sq. ft. Near term developments 119k sq. ft. Office Traditional Core 24% Office South Docks 15% Longer term development pipeline** 279k sq. ft. Portfolio of 21 properties (12 completed office properties) Portfolio total passing rent of 26.6m 1 and total contracted rent 2 of 34.4m 1 In-place office (excl. refurbishments and developments) average contracted rent of 32psf with an average ERV of 40psf 3 In-place office WAULT to rent review of 2.2yrs 4 and 4.0yrs to earlier of break or lease expiry In-place office vacancy rate of 1% (1) Includes net income from residential (2) Includes pre-let refurbishments (3) All ERVs are CBRE assessments except for Harcourt Square which is an internal assessment (4) Earlier of review or expiry Notes to the office development portfolio: *Includes 50% interest in Windmill Lane and the c.55k sq. ft. of refurbished space in One Dockland Central **Includes incremental additional sq. ft. from Harcourt Square and the planned new offices at Gateway (c.115k sq. ft.). Further development potential at Gateway of c.130k sq. ft. of offices 5

6 More to come Delivering new office space early in the cycle Windmill Lane, SJRQ, Cumberland House, One Dockland Central Progress on planning at Harcourt Square and Gateway Driving rents in in-place portfolio Average contracted rents of in-place office portfolio of 32psf, with average ERV of 40psf >300 residential units (fully let) with most tenants on annual leases Asset improvement: e.g. light refurb at Cannon Place, new reception in Observatory Further acquisitions c. 360m funding in place net of committed and near term investments Significant pipeline of opportunities 6

7 Agenda Highlights Financial results Market update Acquisitions and developments Portfolio management Conclusion and outlook 7

8 EPRA NAV per share (cent) Financial highlights Balance sheet EPRA NAV per share progression ( in thousands) 30-Sep Mar-15 % change Gross assets 882, ,041 9% Investment properties 739, ,296 15% Net assets 825, ,134 10% Diluted EPRA NAV per share (cent) 122.1c 111.8c 9% 125c 120c 115c 110c +27% +7% +9% 111.8c 122.1c Income statement ( in thousands) 6 months to 30-Sep-15 6 months to 30-Sep-14 % change Property income 1 17,437 5, % Revaluation gain 63,618 28, % Net income 73,743 31, % 105c 100c 95c 96.4c +9% 104.7c EPRA earnings 10,073 3, % EPRA EPS 1.5c 0.8c 88% 90c Dividend per share 0.7c 0.3c 133% 85c 80c Mar-14 Sep-14 Mar-15 Sep-15 Valuation uplifts driving strong increases in NAV (1) Includes one-off receipt of 4.9m (FBD surrender) 8

9 EPRA NAV cent per share EPRA NAV per share movement since 31 March 15 EPRA NAV per share movement since 31 Mar Valuation uplift: 9.4 cent (0.5) (0.1) % % Mar-15 Investment properties reval. Development properties reval. EPRA EPS Dividends paid Other Sep-15 Sep-14 9

10 Hardwicke & Montague 43m Committed capex 61m Near term capex 49m Substantial financial capacity Sources of funds IPO 372m P+OO 286m New RCF 400m Remaining investment capacity 362m Uses of funds Net cash deployed 543m 153m 0m 200m 400m 600m 800m 1000m 1200m New 5yr RCF provides substantial, low cost, flexible funding 10

11 Forecast capital expenditure for committed and near term developments and refurbishments Forecast capital expenditure by financial year 60m Committed Committed m Spent at Sep-15 m Left to spend m One Dockland Central 10m¹ 1m 9m Observatory Live/work 2m 0m 2m 50m Windmill Lane (2) 26m 2m 24m Cumberland House 27m 1m 26m Total committed 65m 4m 61m 40m SJRQ 21m 1-6 SJRQ 50m 1m 49m Total committed & near term 115m 5m 110m 30m 20m Windmill Lane 5m Cumberland House 13m SJRQ 3m Windmill Lane 16m SJRQ 25m 10m 0m One Docklands Central 10m Observatory Live/Work 2m Cumberland House 14m Windmill Lane 5m Y/E March 2016 Y/E March 2017 Y/E March 2018 Committed Near Term (1) 7.9m net of dilapidations received (2) 50% interest 11

12 Potential incremental rent roll from committed & near term developments/refurbishments Based on CBRE estimated rental values, Sep m 46.2m 45m 5.7m 1-6 SJRQ 40m 35m Total contracted rent: 34.4m 0.4m Observatory Live/Work 1.8m 2.8m 1.5m Cumberland House Windmill Lane (2) One Dockland Central m +64% 30m 28.1m 4.6m 1.3m Cumberland House One Dockland Central 25m Wyckham Point (1) 20m 15m Contracted in-place rent roll at 30 Sep 2015 Let To Let Near term development Proforma Committed refurb / development Committed and near term developments/refurbishments expected to add c. 18.1m to rent roll by mid 2018 of which 6.3m is already let (1) Net rental income (2) Commercial units only/based on 50% interest (3) Excl. basement offices Average office ERVs as per CBRE Sep 15: One Dockland Central: 45.00psf Cumberland House: 50.00psf Windmill Lane: 43.50psf SJRQ 3: 47.50psf Observatory Live/Work: 32.50psf 12

13 Key financial messages Strong financial results Portfolio valuation and NAV per share driven by development and refurbishment activity and lettings Earnings growth coming from full periods of ownership, acquisitions and lettings, plus 4.9m one-off from FBD surrender Substantial flexible financial capacity in place New five year 400m RCF replacing existing 100m RCF (31% LTV if fully drawn at Sep 15 gross asset value) Target through cycle LTV of 20-30% Internalisation completed EPRA NAV per share at 30 September pro forma for internalization: 122.4c Expected to be at least earnings neutral for next three years 13

14 Agenda Highlights Financial results Market update Acquisitions and developments Portfolio management Conclusion and outlook 14

15 Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Quarterly Annual F 2016F 2017F Irish economic outlook Ireland to be fastest growing euro area economy for 4yrs in a row as consumption and domestic demand play an increasing role 8.0% F 2016F 2017F 6.0% Government 1.4% 4.6% 2.8% 2.4% 2.0% 4.0% 2.0% Consumption (0.3%) 2.0% 3.5% 3.5% 3.1% - Domestic Demand (1.5%) 5.2% 6.2% 4.2% 4.5% (2.0%) (4.0%) Investment (6.6%) 14.3% 15.4% 7.0% 9.1% (6.0%) (8.0%) Ireland GDP Euro Area GDP Exports 2.5% 12.1% 11.9% 5.2% 4.2% Imports 0.0% 14.7% 12.3% 4.9% 4.6% Source: CSO, Goodbody Source: CSO, Goodbody, European Commission and employment growth accelerates Economic summary 2% 5% With forecast GDP growth of 6.6% 1 for 2015, Ireland remains on track to be Europe s fastest growing economy this year 1% - 3% 1% (1%) Domestic demand (esp. consumption) increasingly important components of growth (1%) (2%) Quarterly Annual (3%) (5%) Unemployment rate now <10.0% and expected to fall further: still capacity in labour market Growth not being driven by rapid expansion in credit supply Source: CSO (1) Goodbody Stockbrokers 15

16 Q4 04 Q4 05 Q4 06 Q4 07 Q4 08 Q4 09 Q4 10 Q4 11 Q4 12 Q4 13 Q4 14 Q3 15 Millions Sq Ft Millions Sq Ft No of Properties Rental market: Dublin office dynamics Overall Dublin CBD Grade A vacancy rate of 3.8%: Where there is vacancy in Dublin, it is mostly away from prime locations Principal CBD Grade A vacancies are in peripheral locations 20% % % % 0% Dublin 1/3/7 Dublin 2/4 Dublin 6/8 IFSC City Centre Suburban South Suburbs < 5,000 sq ft 5,000-9,999 sq ft ,000-19,999 sq ft 7 20,000-49,999 sq ft 3 50,000-99,999 sq ft 1 100,000 + sq ft Source: CBRE Overall Vacancy Rate Grade A Vacancy Rate Source: CBRE Dublin 1/3/7 Dublin 2/4 IFSC Dublin office take-up in the first three quarters of 2015 has reached 1.9m sq. ft. Vacancies reducing and limited new supply Savills est. current active demand: CBRE est. current active demand: 3.3m sq. ft. 2.7m sq. ft Millions Sq Ft Annual Dublin Office Take Up CBRE Q4 expectation 20 Year Average Occupied Stock Vacant Stock Completions (RHS) Source: CBRE Source: CBRE Significant active demand for Dublin office space and we expect prime rents to continue to grow 16

17 Potential sq. ft. Expected Dublin office development and refurbishment supply Estimated development/refurbishment pipeline 2.5m 2.3m 2.0m CBRE 10yr 1 average Dublin take-up = 1.8m 1.5m CBRE 10yr 1 average Dublin CBD take-up = 1.3m sq. ft. 1.2m 1.5m 1.0m 0.5m 0.2m 0.0m Expected year of completion Under Construction Planning Granted Planning Applied Pre-Planning Pre-Let Source: Management/CBRE estimates Hibernia currently expects c.5m sq. ft. of new office space to be delivered by end 2018: c.4m sq. ft. net of space removed (1) CBRE data series 2005 to 2015 YTD 17

18 Investment sourcing NAMA Private Equity Funds Other > 11bn of loans at cost still on balance sheet* (c. 50% of which are in Dublin) Targeting redemption of all senior bonds before end of 2018 (i.e. 9bn to redeem before end 2018) > 35bn invested in last 3 years Private syndicates: looking for liquidity Forward funding opportunities: Owners of prime office development sites may look for finance via forward funding arrangements Loan acquisitions: Hibernia has built a reputation for offering deal execution certainty and an ability to purchase debt and resolve potentially complex sale transactions We continue to see attractive opportunities to add selectively to our portfolio * As at 30 June

19 Agenda Highlights Financial results Market update Acquisitions and developments Portfolio management Conclusion and outlook 19

20 Acquisition: Dundrum View Acquired off-market for 28m; NIY = 4.7% Fully let 80 unit apartment complex: 22 one beds; 44 two beds; 14 three beds Net annual rent of c. 1.4m with avg. 2 bed rent at c. 1,550 per month Adjacent to Dundrum Town Centre with easy access to excellent transport links such as Luas and M50 motorway 20

21 Completed development: Block 3, Wyckham Point Completed ahead of schedule and on budget All 213 units fully let by end of Sept 2015 producing net rent roll of 3.7m per annum Average 2 bed let at c. 1,700 per month Profit on cost of >30% Yield on cost in excess of 6% Unleveraged IRR of >25% 21

22 Summary of Hibernia near term developments and refurbishments Sector NIA post completion (sq ft) Full purchase cost Est. capex Est. total cost (incl. land) Office psf ERV (1) ERV psf (1) Expected PC Date Refurbishment Cumberland House Office 112k 51m 27m 665psf 6.4m 50.00psf Q CONCEPT CONCEPT IMAGE IMAGE One Dockland Central Office 73.5k (6) 47m (3) 10m (4) 740psf (3) 3.5m (3) 44.00psf (8) Q CONCEPT IMAGE Observatory Live/work SOBO Lofts Office 9.7k office 2k retail 2m 1.5m 280psf 0.4m 32.50psf Q Development Windmill Lane (2) Office 60.5k office 3.3k retail 7.5 resi. Units 4m 26m 425psf (5) 2.8m (5) 43.50psf late 2017 CONCEPT IMAGE 1-6 SJRQ Office 119k office (7) 6.2k retail 18m 50m 550psf 5.7m 47.50psf mid 2018 CONCEPT IMAGE Total 375k office 11.5k retail 7.5 units 122m 114.5m 18.8m (1) Per CBRE valuation at 30 Sep 2015 (2) 50% interest (3) For entire One Dockland Central (4) 7.9m net of dilapidation charge received (5) Commercial only (6) 55k sq. ft. of 73.5k sq. ft. being refurbished plus all common areas (7) 9k sq. ft. in basement (8) 45.00psf on refurbished space i.e 56k sq. ft. and 41 on non-refurbished first floor of 16k sq. ft. 22

23 Committed refurbishment: Cumberland House Acquired vacant for 49m in March 2015 with existing NIA of 112k sq. ft. Pre-Let 85k sq. ft. to Twitter in Sept 2015 at 50psf ( 4.6m per annum) Refurbishment of entire building at a cost of 27m Expected to be completed in Q Substantial uplift in value already with more to come c.30k sq. ft. to let (top two floors) Concept image/subject to planning 23

24 Committed development: Windmill Lane Expected completion in late 2017 Demolition completed and basement dug Starwood Capital 50% JV partner CBRE Sept 15 ERV of 43.50psf Marketing campaign commenced at 55psf Concept image 24

25 Near term development: 1-6 SJRQ Revised planning for a new and improved building has now been conditionally approved Demolition commenced Expected completion by mid 2018 CBRE Sept 15 ERV of 47.50psf Concept image 25

26 Summary of longer term development pipeline Name Sector Current NIA (sq. ft.) NIA post completion (sq. ft.) Full purchase cost Comments Gateway Logistics/Office 178k on 14.1 acres c.245k 1 sq. ft. 10m Outline planning application for new road configuration expected to be submitted shortly Harcourt Square Office 117k on 1.9 acres c.285k sq. ft. 72m See slide 27 Total 295k on 16 acres c.530k sq. ft. 1 82m (1) Planned new offices of c.115k sq. ft. plus potential to add a further c.130k sq. ft of offices 26

27 Harcourt Square development Current Proposed Concept image Concept image Harcourt Square: Acquired for 70m in February 2015 Fully let to the OPW and generating passing rent of 4.9m p.a. The 1.9 acre site lies within 700m of St. Stephen s Green and has the potential for significantly enhanced density of office space of up to 300k sq. ft. Phase 1 planning application successful and final grant of planning issued in early October 2015 Phase 2 planning application submitted in early November The new development will significantly enhance the profile of Harcourt Street 27

28 Agenda Highlights Financial results Market update Acquisitions and developments Portfolio management Conclusion and outlook 28

29 Portfolio Summary Value as at Sep 15 (all assets) Yield on value (%) % uplift since % uplift since % uplift since % of Mar 15 Mar 15 acquisition (all assets) portfolio excl. new acqusition incl. new acqusition incl. costs (1) Initial Equivalent Reversionary Passing rent ( m) 1. Dublin CBD Offices Traditional Core 179m 24.2% 8.2% 8.0% 17.9% 3.6%² 5.1%² 5.3%² 7.5m IFSC 217m 29.3% 6.2% 6.2% 23.0% 3.4% 5.2% 5.4% 9.3m South Docks 114m 15.4% 5.9% 5.9% 39.3% 3.2% 5.2% 5.6% 3.8m Total Dublin CBD Offices 509m 68.9% 6.8% 6.8% 24.0% 3.4%² 5.2%² 5.5%² 20.7m 2. Dublin CBD Office Development/Refurbishment 109m 14.8% 26.2% 26.2% 43.0% 3. Dublin Residential 110m 14.8% 7.4% 3.9% 18.0% 4.7% 4.7% 4.7% 5.4m 4. Industrial 11m 1.5% 3.3% 3.3% 3.0% 4.7% 7.3% 7.8% 0.5m Total Investment Properties (incl. offices) 739m 100.0% 9.4% 8.7% 25.0% 3.7%³ 5.1%³ 5.3%³ 26.6m Valuation uplift supported by letting activity and progress on development assets (1) Includes capex (2) excludes Harcourt Square as this is valued by CBRE on a residual/development appraisal basis; includes One Dockland Central, of which c.77% is currently under refurbishment and is therefore not income producing (3) excludes Harcourt Square and all Dublin CBD Office Development/Refurbishment 29

30 In-place office portfolio statistics In-place office portfolio i.e portfolio excluding assets under development or refurbishment has the following characteristics: Value 1 at 30 Sep: 468m 2 Passing rent of 20.7m; contracted rent of 22.2m Average rent of 32psf vs ERV 1 of 40psf Average 2.2yrs to earlier of lease expiry or rent review Industry split of in-place tenants Other 13% TMT 3% Insurance & Reinsurance 10% Professional services 5% 22.2m Banking & capital markets 44% Top 10 tenants of in-place portfolio (by contracted rent) Remainder 20% 3% 2% 2% 3% 5% 22.2m 25% 13% Government 25% 5% 9% 13% (1) As per CBRE Sep 2015 (2) C.77% of One Dockland Central is being refurbished and is therefore not in-place office. Including 100% of 1 Dockland Central, the valuation at 30 Sep is 509m 30

31 Asset management priorities Asset management priorities Examples 1 Preparing in-place assets for key lease events starting in 2017 (see next slide) Observatory Hanover Building Upgrade to entrance and reception of office space due to complete in Dec 15 Assessing plans for building improvement 2 Resolving complex lease situations in in-place portfolio Guild House Gateway Agreed terms for early surrender by FBD for total consideration of 8.8m Lease re-gear to give Hibernia vacant possession at 12 months notice for redevelopment 3 Letting remaining vacant space in in-place and development portfolio One Dockland Central Cumberland House c.30k sq. ft. of refurbished space being actively marketed ahead of completion in Q c.30k sq. ft. to let post refurbishment completing during Completing sale of non-core assets Dorville portfolio See following pages 31

32 Contracted Rent 1 Schedule of rent reviews (1) for in-place office tenants Current in-place office contracted rent: 22.2m To earlier of rent review or lease expiry 6.0m Valuers' ERV* at 30 Sep 5.0m Avg. rent: 34psf 4.0m Avg. rent: 38psf Avg. rent: 26psf 3.0m Avg. rent: 27psf 2.0m Avg. rent: 45psf 1.0m Avg. rent: 28psf Avg. rent: 30psf Avg. rent: 26psf Avg. rent: 42psf Avg. rent: 24psf 0m Six months ended Mar-16 Sep-16 Mar-17 Sep-17 Mar-18 Sep-18 Mar-19 Sep-19 Mar-20 Sep-20 Weighted average period to rent review or lease expiry of 2.2 years (1) To earlier of rent review or lease expiry. Excludes various parking licenses, retail space in office building and Parkrite in the Forum *Harcourt Square ERV is conservative internal assessment excl. redevelopment. All other ERVs are CBRE 32

33 2 Asset management: One Dockland Central and Guild House 3 One Dockland Central: Lease surrender agreed for 55,000 sq. ft. (of a 72,000 sq. ft. building) Refurbishment works ongoing: Estimated cost of 10m ( 7.9m net of dilaps) Net lettable +2,200 sq. ft. Works due to complete in Q Terms agreed with HubSpot for a lease of c.27,500 sq. ft. at 45psf/ 1.3m for a 20 year term Marketing remaining 29,700 sq. ft. at in excess of 45psf Estimated profit on cost once fully let: c. 20%* Guild House: Early surrender of FBD s leasehold interests for 8.8m: sub-tenancies remain in place All sub-leases expire by Q except BNY Mellon which occupies the first floor (c. 16,000 sq. ft.) on a lease running to March 2025 Optionality in asset management opportunities: Extensive refurbishment upon expiry of sub-leases in 2017 (similar to 1 Dockland Central) or Agree new, longer leases with existing sub-tenants * Assuming all refurbished space lets for 45psf 33

34 4 Progress on sale of non-core assets Progress on sale of non-core assets ( in thousands) Sold or contracted at period end Units Carrying value Sales price Profit Residential assets 18 4,362 5, Commercial assets (10) Total 19 4,672 5, ( in thousands) Sale agreed or committed at period end Units Carrying value Price agreed Expected profit Residential assets 25 7,228 7, Total 25 7,228 7, ( in thousands) Remaining non-core assets Units Carrying value Residential assets 19 4,559 Commercial assets 2 2,040 Total 21 6,599 Aiming to complete sale of majority of non-core assets by end of

35 Agenda Highlights Financial results Market update Acquisitions and developments Portfolio management Conclusion and outlook 35

36 Conclusion and outlook Portfolio delivering strong returns Further to come from developments and asset management Supportive economic backdrop, low cost funding in place and substantial pipeline of acquisition opportunities Creating value through active management 36

37 Appendix 37

38 Location of portfolio Dublin Overview (1) Central Dublin portfolio (1) N3/M3 Blanchardstown Clondalkin Northwest Business Park Castleknock N4/M4 Palmerstown 3 N7/M7 Tallaght Ballymount The Ward M50 N2/M2 M50 Phibsborough Kimmage Dublin N81 Rathfarnham Ballymun Dublin Airport Drumcondra 1 &16 6 M1 Ballsbridge 4,5 & 15 Beaumont Dundrum Clontarf 13 10&11 Northern Cross Blackrock M50 N11 Portmarnock Sutton North Bull Island 1 Wyckham Place 2 New Century House 3 Gateway Site 4 Montague House 5 Hardwicke House 6 Chancery Building and Chancery Apartments 7 Hanover Building 8 Windmill Lane 9 Observatory 10Glenageary Guild House 11 Commerzbank House 12 The Forum Howth 3 Kings Inns 6 St. Stephens Green Croke Park River Liffey Fairview Park 1 Wyckham Point 2 New Century House 3 Gateway Site 4 Montague House 5 Hardwicke House 6 Chancery Building and Chancery Apartments 7 Hanover Building 8 Windmill Lane 9 Observatory 10 Guild House 11 Commerzbank House 12 The Forum SJRQ SJRQ 14 Cumberland House 14 Cumberland House 15 Harcourt Square Herbert Park 15 Harcourt Square 16 Dundrum View 1 &16 (1) property assets > 5m in value as at 31 March 2015 Source: Google Maps, Visit Dublin, Jones Lang LaSalle Key: Office Residential Industrial Office development 38

39 Summary financial statements Balance sheet highlights Summary income statement ( in thousands) 30-Sep Mar-15 Investment Properties (1) 739, ,296 Assets held for sale 13,827 18,499 Other non current assets 2, Cash and cash equivalents 114, ,048 Trade and other receivables 12,735 9,046 Gross assets 882, ,041 Current liabilities (57,785) (54,907) Net assets 825, ,134 Equity share capital 657, ,987 Retained earnings 165,132 91,388 Dividends paid (5,366) (2,013) Other reserves 7,272 5,772 Total equity 825, ,134 IFRS NAV per share (cents) Diluted IFRS NAV per share (cents) Diluted EPRA NAV per share (cents) ( in thousands) 6 mths to 30-Sep-15 6 mths to 30-Sep-14 Revenue 18,405 5,758 Direct property costs (968) (137) Property Income 17,437 5,621 IM base fee (3,373) (1,861) IM performance fee accrual (1,500) - Administrative expenses (2,233) (717) Net finance income / (costs) (1,093) 35 Net rental profit 9,239 3,078 Revaluation/other gains: Investment properties 63,617 28,869 Other gains and losses (2) Total revaluation/other gains: 64,504 28,869 Net income for the period 73,743 31,947 Diluted IFRS EPS (cents) EPRA Earnings 10,073 3,078 Diluted EPRA EPS (cents) (1) Incl. 50% interest in Windmill Lane (2) Profits arising on disposal of non-core properties and income earned on exercise of Windmill Lane option 39

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