45
www.londonmetric.com FULL YEAR RESULTS Year Ended March 2017
www.londonmetric.com
FULL YEAR RESULTS Year Ended March 2017
AGENDA
Highlights
Strategy
Financial
Investment
Property
Outlook
Questions
2
HIGHLIGHTS
ERV growth
3.8% Distribution +5.6%
Key Highlights Adopting a true REIT strategy
• Portfolio positioned for continued structural change
• Distribution exposure1 up to 64%
• Retail park exposure1 down to 13%
• Strong portfolio metrics delivering
• Like for like income growth 4.6%
• TPR 7.4% vs IPD 4.6%
• Financial metrics aligned to our real estate strategy
• £95m equity raise now fully allocated
• £130m private placement
Investments and development commitments2
£235m c80% distribution
4
Topped up NIY
5.4% Unchanged on 2016
WAULT
12.8 years Boosted by new lettings at 18.2 years
Occupancy
99.6% Consistent over last four years
1. Including developments and post year end activity 2. Includes £69m of development capex, £19m capex on existing assets and £58m of commitments
Financial Highlights Year to 31 March 2017
Net Rental Income
£81.8m +5.3%
5
EPRA Earnings
£51.0m +5.3%
Dividend Progression
+3.4% 109% dividend cover
EPRA NAV
150p H1: -3.2% H2: +4.8%
Earnings Yield4
5.5% Unchanged over 12 months
March 2017 March 2016 % change
EPRA Earnings per share 8.2p 7.8p +5.1%
Dividend per share 7.50p 7.25p +3.4%
EPRA NAV per share 150p 148p +1.4%
Recurring Profit1 £51.0m £48.5m +5.3%
Reported Profit £63.0m £82.7m
Total Accounting Return2 6.4% 11.5%
LTV3 30% 38%
1. EPRA Earnings
2. Calculated as Dividend paid in year and increase in EPRA NAV (excluding net placing proceeds) as a percentage of opening EPRA NAV
3. LTV includes deferred consideration on sales exchanged prior to year end (2017:£14.3m, 2016: £10.2m)
4. EPRA Earnings for the year divided by opening EPRA NAV
STRATEGY REVIEW
Investment Strategy Income growth with structural support
7
Repetitive and reliable income is increasingly attractive
Long income with Indexation provides the bedrock of certainty
Avoiding dilutive income leakage
Income –
Contractual
Structural calls are delivering strong income growth
Urban and regional logistics rents are trending very positive
High terminal value locations will continue to outperform
Income – Structural
Short cycle activity creates alpha upside and future long income
Provides an attractive margin of safety over market pricing
Delivering fit for purpose, modern long let real estate
Asset management
and dev’t
Our Portfolio Aligned to the structurally winning sectors
8
As at 31 March 2017 Net
Initial
Yield1
H1
TPR (%)
H2
TPR (%)
Total
Property
Return (%)
Distribution
£950m2 5.0 +2.8 +7.0 +9.9
Convenience & leisure
£156m 5.3 +3.3 +8.3 +11.9
Long Income JVs
£115m 6.6 +2.1 +7.5 +9.6
Retail parks
£202m2 5.9 0.0 +4.2 +3.9
Office & Residential
£111m 5.9 -6.2 -0.5 -6.7
Total Portfolio
£1,534m 5.4 +1.5 +5.9 +7.4
64%
8%
8%
13%
7%
1. Topped up NIY on investment portfolio
2. Including developments
3. March 2017 valuation adjusted for post period end activity
May
2017 £1,516m3
9
Rental Income Profile Delivering long term repetitive & dependable income
98.6%
1.4%
Net Income
Income Leakage
24%
28%
43%
5%
Fixed Indexed Linked
Market Review No review
1%
39%
27%
16%
17%
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 12.8
10.5
11.0
11.5
12.0
12.5
13.0
13.5
2013 2014 2015 2016 2017
95.0%
99.6% 99.7% 99.3% 99.6%
92.0%
94.0%
96.0%
98.0%
100.0%
2013 2014 2015 2016 2017
Occupancy Rate (% rent roll) WAULT (years)
10
Delivering Long Term Shareholder Returns Our key focus is to drive earnings
Distribution
Exposure (%)
20%
28%
40%
52%
62%
0%
10%
20%
30%
40%
50%
60%
70%
Lfl Income
Growth (%)
Earnings
Growth (pps)
3.5% 3.4%
2.9% 3.1%
4.6%
0.0%
1.0%
2.0%
3.0%
4.0%
5.0%
3.9 4.2
6.6
7.8 8.2
-
1.0
2.0
3.0
4.0
5.0
6.0
7.0
8.0
9.0
Net Rental
Income (£m)
45.5
58.5
70.9 77.7
81.8
-
10.0
20.0
30.0
40.0
50.0
60.0
70.0
80.0
90.0
FINANCIAL REVIEW
Income Statement1
12
31 March 2017 31 March 2016
Net rental income £81.8m £77.7m
Administrative costs (EPRA cost ratio 16%) £(13.4)m £(13.8)m
Finance costs £(18.4)m £(16.7)m
EPRA earnings £51.0m £48.5m
EPRA EPS 8.2p 7.8p
DPS 7.50p 7.25p
Earnings Dividend Cover 109% 107%
1. Proportionally consolidated basis
Balance Sheet1
13
31 March 2017 31 March 2016
Property portfolio £1,533.8m £1,520.9m
Cash £46.1m £46.7m
Bank debt £(527.7)m £(637.9)m
Fair value of derivatives £(23.6)m £(23.9)m
Other net assets /(liabilities) £(21.7)m £(7.6)m
Net Assets £1,006.9m £898.2m
EPRA Adjustments £23.6m £23.9m
EPRA Net assets £1,030.5m £922.1m
EPRA NAV per share 149.8p 147.7p
1. Proportionally consolidated basis
Movements in EPRA NAV1
14
NAV per share (p)
147.7 148.6 148.6 149.8
8.2 7.3
3.4
1.3 0.9
130.0
135.0
140.0
145.0
150.0
155.0
160.0
EPRA NAV Mar '16 EPRA Earnings Dividend Paid Property
Movements
Corporate EPRA NAV Mar '17
1.7
2.0
1. Property movements reflect +3.4p of revaluation and -0.9p of property costs and loss on sales.
2. Corporate includes debt/hedging break costs and share based awards.
Financing activity Increasing finance flexibility
Debt Metrics1 31 Mar 2017 31 Mar 2016
Gross Debt £527.7m £637.9m
Undrawn facilities £299.7m £69.9m
Loan to Value2 30% 38%
Average cost of finance 3.5% 3.5%
Marginal cost of debt 1.5% 1.8%
Average maturity 5.2 years 5.6 years
Hedging3 87% 84%
1. Proportionally consolidated basis 2. LTV includes deferred consideration on sales completed prior to year end (2017:£14.3m, 2016: £10.2m) 3. Assuming existing facilities are fully utilised 4. Based on total drawn debt
• £130m private debt placement – 52%4 of debt unsecured
• £95m equity placing
15
77.7 81.8
87.3 88.3 94.8
7.9 6.9
5.5
1.0 Committed
Firepower
5.1
Pipeline
50.0
60.0
70.0
80.0
90.0
100.0
Income Progression
16
(£m)
Net rental
Income
Mar 16
Disposals Net Rental &
Contracted
Income at
Mar 17
Contracted rent
potential
Development &
Acquisition
Income1
PPE
activity2
Warrington
Bedford
Developments3
1. Includes l-f-l income and reduction in property costs 2. Excludes Loughborough disposal which does not complete until March 2018 3. Committed developments consists of anticipated income not yet contracted
Delivering Financial Management
17
Warrington
Bedford
Debt Maturity
(years)
3.0
3.7
4.2
5.6
5.2
0.00
1.00
2.00
3.00
4.00
5.00
6.00
201
3
201
4
201
5
201
6
201
7
Interest Cover Ratio
(x)
Cost of Debt
(%)
2.2
2.9
4.0
5.0
4.5
-
1.00
2.00
3.00
4.00
5.00
6.00
201
3
201
4
201
5
201
6
201
7
4.0
3.9
3.7
3.5 3.5
3.2%
3.3%
3.4%
3.5%
3.6%
3.7%
3.8%
3.9%
4.0%
4.1%
201
3
201
4
201
5
201
6
201
7
Loan to Value Ratio
(%)
43
32
36
38
30
0
10
20
30
40
50
60
201
3
201
4
201
5
201
6
201
7
INVESTMENT REVIEW
Investment Market Outlook Income continues to take centre stage
• Investment market tale of two halves
• H1 impacted by Brexit uncertainty
• H2 bounced back and increased liquidity
• Market increasingly selective
• Lot size, geography, over renting and lease lengths
• Asset level calls take on greater importance
• Performance will continue to polarise
• Real estate returns to be dominated by income & income growth
• Investor demand strong in the logistics market
• But…..increasingly selective in the retail market
19 1. Source: Gerald Eve
-
0.5
1.0
1.5
2.0
2.5
Q1 2
016
Q2 2
016
Q3 2
016
Q4 2
016
Q1 2
017
Industrial investment (£bn)1
Investment Focus Investing in the right structural calls
• Continued rotation out of multi-let retail into distribution
• Selling mature retail parks once business plans complete
• Investing in structurally supported distribution
• Building a portfolio of end to end logistics
• Targeting urban logistics where value underscored by strong terminal value
• Progressing committed developments at attractive yield on
costs
• 70%+ distribution by end of this financial year
20
Urban logistics portfolio1
£185m Increased from 8 assets to 26 assets
Committed short cycle development
£58m Spent within 9 months
Urban logistics acquisitions in year
£97m PPE £24m completed
Retail, leisure & residential disposals
£148m 6.1% NIY
1. Including PPE transactions
Distribution acquisitions Deploying cash into the most attractive subsector of distribution - urban logistics
21
• Building an end to end logistics portfolio
• Urban logistics portfolio of £185m across 26 assets
• 15 investments for £98m at 6.2%
• 78% acquired off market
• £24m of PPE investments and a further £43m in legals
Urban Logistics
Leeds
• £11.9m (2 assets)
• 6.0% NIY
• Siemens & Vision Alert
• 3 yrs & 15 yrs WAULTs
Dartford
• £6.3m
• 6.0% NIY
• Antalis
• 10 yrs WAULT
Stevenage
• £7.3m
• 6.25% NIY
• Dixons Carphone
• 9yrs WAULT
Basildon
• £3.8m
• 6.5% NIY
• Modular Heating
• 4yrs WAULT
PPE - £24 million
• £23.9m (3 assets)
• 6.0% NIY
• Crawley, Coventry &
Huyton
26 urban logistics assets
Distribution developments Delivering short cycle big box developments at attractive yield on costs
22
Amazon, Warrington
• Delivered 357,000 sq ft warehouse
• Let to Amazon 5 weeks post PC
• New 15 year lease
• CPI uplifts
• 7.1% yield on cost
Eddie Stobart, Dagenham
• New 180,000 sq ft modern warehouse
• Working in partnership with existing tenant
• New 26 year lease on 436,000 sq ft
• RPI uplifts
• 5.7% yield on cost
Poundworld, Wakefield
• Delivered 527,000 sq ft warehouse
• Let to Poundworld
• New 15 year lease
• RPI uplifts
• 6.3% yield on cost
Disposals Monetising mature assets to reinvest into higher growth opportunities
23
• Rotation out of mature retail parks
• 10 mature retail assets for £127.6m1, NIY: 6.3%
• 1 leisure asset for £9.1m, NIY: 5.5%
• Retail Park portfolio reduced from 27% two years’ ago to 13% today
• PPE, three assets sold for £41.1m at NIY: 5.3%
Retail and Leisure
• 21 disposals for £10.8m1
• 12 sold / under offer PPE
• 91 sold / under offer
• 58 remaining
Residential
Loughborough
• Sold post period end
• £32.5m
• 4.3% NIY
Kings Lynn
• Sold Sept 16
• £24.0m
• 5.8% NIY
Christchurch
• Sold Mar 17
• £34.5m
• 5.7% NIY
Bedford
• Sold Mar 17
• £14.3m
• 5.9% NIY
Moore House JV
• Residential
• LM Share: 40%
1. Investment values shown are LondonMetric’s share
PROPERTY REVIEW
Distribution Portfolio1
64%2 of portfolio providing end to end logistics
25
Mega Distribution
• 7 assets, 4.7m sq ft
• £24.8m rent (av £5.30 psf)
• Average NIY3 4.8%
• WAULT 14.2 years
• ERV growth +3.3%
• Reviews +9.1%4 above previous passing
Regional Distribution
• 12 assets, 2.9m sq ft
• £17.2m rent (av £6.20 psf)
• Average NIY3 5.0%
• WAULT 13.7 years
• ERV growth +8.1%
• Reviews +9.8%4 above previous passing
Urban Logistics2
• 26 assets, 1.8m sq ft
• £11.7m rent (av £6.60 psf)
• Average NIY3 5.7%
• WAULT 8.5 years
• ERV growth +9.5%
• Reviews +16.9%4 above previous passing
1. As at 31 March 2017 2. Adjusted to include for PPE transactions and Crawley development 3. Topped up NIY 4. 5 yearly uplift on rent reviews
Retail Portfolio1
Portfolio biased to management light and long income
26
Retail Parks
• 10 assets, 0.7m sq ft
• £13.0m rent (av £17.90 psf)
• Average NIY 5.9%2
• WAULT 11.1 years
• 10 rent reviews settled
• 6.3%3 ahead of previous passing
JV Long Income
• 27 assets, 0.5m sq ft
• £7.9m rent (av £16.60 psf)
• Average NIY 6.6%2
• WAULT 11.7 years
• 8 rent reviews settled
• 9.5%3 ahead of previous passing
Convenience & Leisure
• 19 assets, 0.6m sq ft
• £8.8m rent (av £16.10 psf)
• Average NIY 5.3%2
• WAULT 18.9 years
• 9 rent reviews settled
• 8.2%3 ahead of previous passing
1. All numbers as at 31 March 2017 2. Topped up NIY 3. 5 yearly uplift on rent reviews
Asset Management Activity
27
No. Area
(000 Sq Ft)
£m
uplift
% above
previous
passing
LFL rental
growth
WAULT
(Years)
New Lettings 33 1,238 5.83 n/a1 2.9 18.2
Rent Reviews 36 4,118 1.34 4.6 (9.5)2 1.7 -
FY 17 69 5,356 7.1 4.6 (9.5)2 4.6 -
New lettings excl Dagenham – WAULT 13.5 years & average incentive of 15 months3
New lease lengths >15yrs = 44% , >10yrs = 80%
Return on asset management capex +7.1%
1. As new lettings involved material new space, comparison against previous passing has not been provided. Previous passing rent on the lettings was £5.0 million 2. Number in brackets is on a 5 yearly basis 3. Rental uplift from lettings was 10.6% above ERV. Excluding the Eddie Stobart regear at Dagenham, ERV uplift was 2.6% 4. Rent reviews were undertaken at 4.3% above ERV
Committed and Pipeline Developments Short cycle and derisked
28
Stoke
• New 137,000 sq ft pre-let to Michelin
• New 15 year lease with fixed uplifts
• In discussions on remaining 137,000 sq ft
• Committed - PC Q1 2018
• £23m total cost
• 6.3% yield on cost1
Crawley
• New c110,000 sq ft development
• New 15 year lease agreed on 30%
• Strong interest on remaining 75,000 sq ft
• Committed - PC Q4 2017
• £20m total cost
• 6.3% yield on cost1
Bedford
• Planning for up to 700,000 sq ft
• Conditional exchange & currently
purifying purchase conditions
• Land purchase expected by end 2017
• £61m total cost
• 7.0% yield on cost1
1. Based on anticipated rents
FY 2017 Property Performance Relative outperformance
29
Total Return Income Return Capital Return
FY to March 17 LMP IPD LMP IPD LMP IPD
Distribution 9.9 8.1 5.3 5.2 4.4 2.8
Retail 6.1 2.8 6.2 5.1 -0.1 -2.3
Core Portfolio 8.8 5.7 2.9
Total Portfolio 7.4 4.6 5.6 4.7 1.7 -0.1
LMP Distribution outperformance 180 bps
LMP Retail outperformance 330 bps
OUTLOOK
Occupier Outlook UK most sophisticated online shopping market
31
• Consumer shopping patterns continue to change
• Technology is disrupting traditional retailing
• Store “rightsizing” continues
• Distribution & fulfilment becoming more important than stores
• Supply chains are adapting to increased:
• Online purchases
• Same and next day delivery demands
• Increasing volumes of returns
• Increasing demand across all 3 segments of logistics market
• Retailers account for c65% of demand
1. E-tail = retail business conducted online; 2015 all non food e-tail expenditure = £34bn 2. Sources: Verdict, IMRG, company disclosures (John Lewis), CBRE 3. UK population = 66m; 26m households
Online non-food sales1
20% Rising to 26% in 2020 (+£16bn)
Parcel deliveries up
18% y-o-y Average 46 per household
Take up for year to March 17
31.0m sq ft Amazon >20%
Availability as at March 17
21.1m sq ft Acute shortage of supply
Reverse logistics demand
27% Of all online sales returned
Market Outlook “Market uncertainty is the friend of the investor looking for long term value”
32
• Low interest rate environment creating a desperate
search for income
• Ageing population increases need for regular income
• Long income very well bid
• Real estate returns increasingly dominated by income
and income growth
• Income compounding likely to outperform hyper active strategies
• This is what a REIT was created to provide
• Polarisation of performance
• The tectonic plates in retail are shifting
• Structural calls will define the winners and losers
• Not all income is the same
Income as % of Total Returns1
2017f: 83%
2018f: 86%
2019f: 106%
2020f: 106%
2021f: 93%
Av: 95% (89% 6m ago)
1. Source: Capital Economics
Our Focus Aligning ourselves to the right side of the structural shifts
33
• Structural Trends
• Income is increasingly central to our total return model
• Our focus on income and terminal value provides us with comfort in uncertain times
• The retail backdrop is changing and so we have pivoted our approach
• Our sector call on logistics means we are on the right side of this change
• Real estate market
• Investing in assets that yield us more than the cost of our dividend
• A focus on locations where value will be higher in 5 years time
• A rational real estate strategy without the burden of legacy
• Compounding income with structural support
• Adopting a true REIT strategy
APPENDICES
First
Quarter
Second
Quarter
Third
Quarter
Fourth
Quarter
Post
Period End
35
FY 17 – Year in Review
7.25pps
dividend for
FY 16
Crawley
Development
acquired
£130m debt
private
placement
£55m
retail
park disposals Amazon
letting at
Warrington
Eddie Stobart &
Michelin
lettings
£95m Equity
Raise
£61m
Retail
disposals
2.1p Q4
dividend
Quarterly
dividend
paid
EU Referendum
£40m Urban
Logistics
acquisitions
First scrip
dividend offered
B&Q
surrenders
and full re-let
+17% POC
7.50pps
dividend for
FY 17
£12m Urban
Logistics
acquisitions
£16m
Urban
Logistics
acquisitions
Urban
Logistics
Portfolio
reaches
£100m
£16m
retail park
disposals
Sale of retail
park and
acquisition of
urban logistics
asset
1.8p Q1
dividend
1.8p Q2
dividend
1.8p Q3
dividend
Loughborough
sold for £32.5m
at 4.25% NIY
Further £24m of
urban logistics
acquisitions
Portfolio Metrics
36
Area Valuation
(Share) Revaluation
Surplus/(Deficit) Occupancy NIY1 WAULT (years) Rent
roll Fixed uplifts
Average rent
(£ psf)
As at 31-Mar-17 (m sq ft) (£m) (£m) (%) (%) (%) expiry break (£m) (%) Existing
Mega distribution 4.7 477.8 (0.7) (0.2) 100.0 4.8 14.2 13.9 24.8 74.1 5.30
Regional distribution 2.9 303.4 22.1 7.8 100.0 5.0 13.7 12.4 17.2 59.7 6.20
Urban logistics 1.4 146.2 3.7 2.6 100.0 5.8 7.9 7.3 8.9 8.8 6.40
Distribution 9.0 927.4 25.1 2.8 100.0 5.0 12.9 12.3 50.9 57.8 5.70
Retail – wholly owned 0.7 197.0 (5.9) (2.9) 99.1 5.9 11.1 9.3 13.0 27.7 17.90
Retail – convenience 0.3 93.0 3.5 3.9 98.1 4.8 17.8 17.4 4.8 78.6 17.10
Long JV Income (MIPP,DFS) 1.1 114.8 3.1 0.7 100.0 6.6 11.7 11.5 7.9 13.6 16.60
Retail Subtotal 2.1 404.8 (0.5) (0.1) 99.2 5.8 12.5 11.5 25.7 32.8 17.30
Leisure 0.3 63.2 2.9 4.9 100.0 5.8 20.2 20.2 4.0 100.0 15.10
Core portfolio 11.4 1,395.4 27.5 2.0 99.7 5.3 13.1 12.4 80.6 51.8 7.60
Office 0.2 70.0 (10.0) (12.4) 96.7 6.5 7.2 7.0 4.9 60.9 22.00
Investment portfolio 11.6 1,465.4 17.5 1.2 99.6 5.4 12.8 12.1 85.5 52.4 7.90
Residential – 41.1 (3.1) (6.9) 0.5
Developments2 0.4 27.3 6.6 31.8 1.3
Total 12.0 1,533.8 21.0 1.4 87.3
1. Topped up NIY 2. Includes contracted rent at Stoke and Ipswich
37
Our Income Metrics Our occupier-led approach at the centre of our decision making
Income exposure to retailers
77% of total rental income
Income exposure to PLCs
79% of total rental income
Within next 3 years
1.2% of income expires
1. Investment portfolio as at 31 Mar 2017 2. Gross rental income based on annualised rents 3. Market capitalisations as at May 2017 4. Market capitalisation of parent company
Tenant
Rent
(£m pa)
% of total
Rent
Market cap
(£bn)3
9.5 11.0 22.24
6.2 7.2 4.5
5.5 6.3 5.8
4.1 4.7 5.64
4.1 4.7 0.6
3.5 4.0 3.14
3.3 3.8 4.1
3.0 3.5 58.2
3.0 3.4 0.6
2.8 3.2 34.54
Total 45.0 51.8
Other commercial 41.8 48.2
Residential 0.5
Total 87.3
Contractual uplifts on
52.4% of portfolio
Top 10 Assets as at 31 March 2017
38
Name Principal occupiers
Annualised
net rent (£m)
Let by
income (%)
WAULT
(years)
Primark, Islip Primark 5.4 100 23.5
Primark, Thrapston Primark 4.1 100 15.5
Dixons Carphone, Newark Dixons Carphone 4.4 100 16.3
Argos, Bedford Argos 3.8 100 5.7
Eddie Stobart, Dagenham Eddie Stobart 4.1 100 26.5
Marlow International, Marlow Allergan, Dunn &
Bradstreet 4.9 97 7.2
Royal Mail, Daventry Royal Mail 2.5 100 6.4
Poundworld, Wakefield Poundworld 2.6 100 14.5
Marks & Spencer, Sheffield M&S 2.6 100 6.7
Kirkstall Bridge Shopping Park, Leeds Various 2.4 95 11.4
Investment Yields
39
3.0%
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, May 2017 – yields assume rack rented 15 year leases let to strong covenants with open market rent reviews
Investment Activity
Acquisitions
40
Price LMP share NIY WAULT
ACQUISITIONS H1 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 20.0 20.0 6.3 - -
Hemel Hempstead Distribution June ’16 8.3 8.3 6.4 8.3 8.3
TOTAL H1 32.1 32.1 6.4 6.9 6.9
ACQUISITIONS H2
Stevenage Distribution Oct ’16 7.3 7.3 6.3 8.7 3.7
Bicester Distribution Nov ’16 3.2 3.2 5.9 9.5 4.0
Helical Portfolio Distribution Nov ’16 26.0 26.0 6.5 7.0 6.5
One Stop, Wakefield Distribution Dec ’16 9.5 9.5 5.7 6.2 6.2
Antalis, Dartford Distribution Feb ’17 6.3 6.3 6.0 10.0 5.0
Vision Alert, Leeds Distribution Mar ’17 7.9 7.9 6.0 14.8 14.81
Siemens, Leeds Distribution Mar ’17 4.0 4.0 6.1 3.1 3.12
Barker & Stonehouse Distribution Nov ‘16 10.7 10.7 5.2 15.0 15.0
Hull Retail Nov ’16 9.4 4.7 7.5 11.5 11.5
Dartford Retail Nov ’16 9.0 4.5 6.2 19.5 19.5
TOTAL H2 93.3 84.1 6.2 9.8 8.6
TOTAL ACTIVITY 125.4 116.2 6.2 9.4 8.3
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Investment Activity
Disposals Price LMP Share NIY WAULT
Disposals H1 Sector Date (£m) (£m) (%) to expiry to 1st break
Taunton Leisure Apr ’16 9.1 9.1 5.5 22.2 22.2
The Range, Bridgwater Retail Apr ’16 4.9 2.5 5.1 16.8 16.8
Chatham Retail Apr ’16 6.9 3.5 5.6 17.2 17.2
Grimsby Retail May ’16 4.1 2.0 6.4 19.0 14.0
Fordton Retail Park, Warrington Retail August ’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 - 9.5 3.8 2.2 - -
TOTAL H1 95.8 82.2 6.4 13.0 11.6
Disposals H2
St Albans Retail Nov ’16 5.8 5.8 6.1 3.8 3.8
DFS Maidstone Retail Jan ’17 12.0 3.7 7.5 13.2 13.2
Bedford Retail Mar ’17 14.3 14.3 5.9 8.3 8.1
Christchurch Retail Mar ’17 34.5 34.5 5.7 7.0 7.0
Hut, Warrington Distribution Nov ’16 53.7 53.7 6.5 14.0 14.0
Yeovil Land Distribution Mar ’17 0.7 0.7 - - -
Moore House Residential - 17.5 7.0 2.3 - -
TOTAL H2 138.5 119.7 6.1 10.6 10.5
TOTAL ACTIVITY 234.3 201.9 6.2 11.6 11.0
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Investment Activity PPE
Price LMP share NIY WAULT
Acquisitions Sector (£m) (£m) (%) to expiry to 1st break
TNT, Crawley Distribution 6.4 6.4 4.8 6.4 0.9
DHL, Coventry Distribution 5.7 5.7 7.0 10.0 5.0
Antolin, Huyton Distribution 11.8 11.8 6.1 15.0 15.0
TOTAL 23.9 23.9 6.0 11.7 9.1
Disposals
Morrisons, Loughborough Retail 32.5 32.5 4.3 24.8 24.8
Vue, Birkenhead Leisure 5.8 5.8 7.2 11.7 11.7
Newcastle Retail 2.8 2.8 8.0 9.0 9.0
Moore House Residential 1.6 0.7 3.3 - -
TOTAL 42.7 41.8 5.3 20.1 20.1
TOTAL ACTIVITY 66.6 65.7 5.1 16.7 15.5
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Committed Developments Summary
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Location Sq ft (‘000’)
Comment
Expected PC3 date
Rent roll / uplift (£m)
YOC2
(%)
Stoke 277 137,000 sq ft pre-let Q1’18 1.41 6.3
Dagenham 180 Fully pre-let Q2’18 0.9 5.7
Crawley 114 35,000 sq ft pre-let agreed Dec ’17 1.31 6.3
Tonbridge 53 Fully pre-let Jul ‘17 0.3 6.1
Ipswich 31 23,000 sq ft pre-let Q4 ’17 0.71 7.1
Launceston 30 Fully pre-let Q4 ’17 0.3 6.2
Total 685 4.9 6.3
1. Based on anticipated rents 2. Yield on cost 3. Practical completion
Capex (£m) Total Cost
Costs to Mar 17
FY 18
Stoke 23 8 15
Dagenham 16 1 15
Crawley 20 9 11
Tonbridge 5 2 3
Ipswich 9 4 5
Launceston 4 0 4
Total 77 24 53
Total commitments at 31 March 2017 are £58m. Excludes Bedford
development which is pipeline – see property section for further detail
Debt Facilities As at 31 March 2017
Facility Drawn Maturity
Sector Lender (£m) (£m) (years) Expiry
Wholly-owned portfolio
Distribution term loan Distribution Helaba 196.2 196.2 4.7 28-Nov-21
Unsecured RCF All Syndicate 337.5 111.8 5.0 01-Apr-22
Unsecured RCF All Syndicate 106.3 35.2 4.0 01-Apr-22
Private Placement All Syndicate 65.0 65.0 6.5 21-Sept-23
Private Placement All Syndicate 40.0 40.0 7.5 21-Sept-24
Private Placement All Syndicate 25.0 25.0 11.5 21-Sept-28
Total wholly-owned 770.0 473.2 5.5
JV portfolio (LondonMetric at share)
MIPP JV (50%) Retail Deutsche Pfandbriefbank 40.9 38.0 2.8 22-Jan-20
DFS JV (30.5%) Retail M&G 16.5 16.5 2.3 23-Jul-19
Total JV portfolio 57.4 54.5 2.7
Total Group and JV 827.4 527.7 5.2
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• L-f-l energy usage fell 6% v 2015/16
• L-f-l GHG emissions fell 17% v 2015/16
• Saved £0.3m in costs over two years
Our significantly improved sustainability performance and disclosure has been rewarded with a GRESB Green Star, EPRA sBPR Gold award and a much improved
FTSE4Good score
Responsible Business Good progress towards achieving our 2018 targets, allowing us to build on our sustainability achievements
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• We place great importance on sustainability, reflecting the increasing investor focus on ESG
• Our Responsible Business Policy was published in 2014 following a detailed sustainability review
• Since then, in conjunction with our sustainability adviser JLL, we set two yearly targets:
• for the period 2014-16, we achieved 92% of our targets
• in the current period 2016-18, we are making good progress against our 33 targets
• Each year, we publish a Responsible Business Report on our website
Fully integrating Responsible Business across our activities
• Achieved GRESB Green
Star in FY17
• Gold Award received
from EPRA for reporting
• Significantly improved
Environmental Performance Investment
• Reported that 100% of our assets are rated ‘E’ or above
• Detailed DD on environmental matters at time of acquisition
Asset Management
• Compliant with all regulatory drivers
• Target asset improvements
• Work with occupiers to drive efficiencies
Development
• Built five BREEAM Very Good rated assets 93% of waste diverted from landfill
• Supply chain actively monitored through our Procurement Policy
• Our property activities bring significant benefits to local areas
• We engage with all stakeholders, support local causes and are community minded
Recognition
Picture: 1MW of solar installed at our Dixons DC in Newark
Community & Charity
