#1Ki British Land INVESTOR PRESENTATION MARCH 2014 TW. FROM WWW.BRITISHLAND.COM#2INTRODUCTION - A LEADING UK REIT £17.1bn owned and managed portfolio . Focused on UK Retail and London Offices Delivering superior total returns by Creating Places People Prefer ₤17.1bn owned and managed portfolio LONDON OFFICES 17% 23% 12% UK RETAIL 17% 5% 4% 22% ■City of London ■ Other ■Shopping Centres ■ Retail Parks ■ West End ■ Department stores ■ Superstores British Land#32 KEY POINTS Strongly 1 performing 2 business Executing smartly, according to plan Positive about the future . Strong recent results • Continued outperformance • • 3 4 Clear • priorities • Successfully deployed equity placing proceeds Delivering 2010 developments and replenishing the pipeline Repositioning Retail portfolio • Increased economic and investment activity Increased exposure to London/South East and replenished development programme Driving growth from standing investments Delivering returns from developments Continued Retail repositioning British Land#4CONSISTENTLY OUTPERFORMING THE MARKET • • Significant outperformance vs IPD, +9.2% since September 2010 (+260bps pa) Outperformed IPD on a 5 year (+230bps pa) and 10 year basis (+70bps pa) 3 HY to 30 September 2011 2012 2013 H1 2014 Total Accounting Return 17.7% 9.5% 4.6% 6.8% Total Property Return 13.1% 8.3% 6.3% 5.5% Total Property Return vs IPD +180bps +200bps +310bps +60bps British Land#5STRONGLY IMPROVING OPERATING PERFORMANCE IN BOTH OFFICES AND RETAIL Good first half results, business performing well Continued improvement in Q3 -Like-for-like occupancy +30 bps to 97.1% - Investment lettings/renewals +5.3% Vs ERV (Retail +3.3%, Office +6.8%) HY to 30 September Change UK Valuation £11.2bn +2.8% Capital Returns vs IPD +100bps NAV per Share 623p +4.5% Dividend per Share 13.5p +2.3% 6 month Total Accounting Return 6.8% British Land#6POSITIVE PERFORMANCE DRIVEN BY... • Strong position in retail · large and high quality retail portfolio Increasing focus on London/South East >60% of portfolio in South East • Successful asset management · . • good leasing volumes; ahead of ERV £1.2bn development programme started in 2010 IRRS >30% Flexible and low cost finance 4.2% lowest of UK REITS Ability to secure attractive value accretive deals acquired £1.4bn of assets over the last 2 years Ability to sell well selling mature assets; £1.3bn of disposals over the last 2 years 5 British Land#7VALUATION PERFORMANCE UK Valuation Drivers £m TOTAL VALUATION MOVEMENT 320 220 120 6 20 20 -80 £22m H1 2012/13 Asset Management £90m £309m H2 2012/13 Development H1 2013/14 Yield Movement Total Valuation British Land#8STRONGLY PERFORMING BUSINESS: RETAIL Marked improvement in Retail: strengthening capital returns . • 7 Occupancy up to 98.4%; rents in admin low at 0.2% (0.9% in March 2013) Lettings ahead of ERV (3.3% in Q3, 3.8% in H1) Continue to outperform on footfall: flat in Q3 vs decline of 3% in broader market Capital Returns (%) H1 2012/13 H2 2012/13 H1 2013/14 Retail Parks (2.3) (0.8) 1.0 Superstores 0.5 (1.1) 2.1 Shopping Centres (0.3) (1.0) 0.3 Department Stores (0.6) 3.2 6.5 Leisure 0.0 (0.2) 2.0 UK Retail (1.0) (0.6) 1.5 British Land#98 CONTINUED RETAIL POLARISATION Retail ERV Growth Retail Occupancy Indexed March 2010 = 100 % 105 100 95 95 90 85 97.4 94.7 98.0 95.3 88.9 88.3 Mar Sep Mar Sep Mar Sep Mar Sep Mar 13 Sep 13 10 10 11 -BL All Retail 11 IPD All Retail 12 12 13 13 IPD Secondary BL All Retail IPD All Retail IPD Secondary British Land#10STRONGLY PERFORMING BUSINESS: OFFICES Step up in letting activity across investment and developments . • Encouraging interest from a broad range of new and existing occupiers 579,000 sq ft of lettings/extensions year to date; 7.9% ahead of ERV • 30 Brock St, Regent's Place fully let 3 months after practical completion - - Secures £18m of rent for 16 years • 9 Leadenhall 52% pre-let - Latest letting to Servcorp at £72.50 psf for 15 year term (c£5psf ahead of ERV) - RFPs out for a further 80,000 sq ft 172. KN52 HEU BOLIGUARD British Land#11EXECUTING SMARTLY AND ACCORDING TO PLAN: EQUITY PLACING • • • Raised £493m of equity in March 2013 at 550p per share Fully deployed ahead of schedule £790m acquisition spend including £100m of development opportunities NIY of 5.7% on £690m of income producing investments . £230m of prospective development spend Paddington Central Ealing Broadway Shopping Centre Surrey Quays JV buy-out Other Acquisitions Investments 10 10 Prospective Acquisition Spend Development Spend £m £m 470 180 143 48 24 126 26 787 230 British Land#12tossed Sainsbury'stlocal DEPLOYMENT OF EQUITY PLACING: PADDINGTON CENTRAL Acquired in July for £470m Fully let yield of 6.2% Significant opportunity to create value from asset management and development Third of vacant office space already let at terms ahead of ERV on acquisition 2.3% valuation increase by September 2013 Initial design and master planning underway at 4 and 5 Kingdom Street development sites TWW TWE 11 British Land#13DELIVERING RENTAL GROWTH AT REGENT'S PLACE £ 2009/10 10/20 Triton St AEGIS PSF GAZPROM 70 65 12 60 55 50 45 42.50psf 2010/11 2011/12 2012/13 2013/14 20 Triton St 10/30 Brock Street Lend Lease R Manchester City FC WHITEFOORD DEBENHAMS DEBENHAMS LLP facebook MCFC RICOH 70psf British Land#14COMPLETED COMPLETING 2010 LONDON DEVELOPMENTS • • 817,000 sq ft completed and 309,000 sq ft pre-lets agreed/under offer this year; now 70% pre-let Good demand for Residential; pre-sales secured above valuation; now over 80% pre-sold 199 BISHIOPSGATE EC2 £3.5m ERV; 55% let 10 PORTMAN SQUARE, W1 £9.7m ERV; 51% let MARBLE ARCH HOUSE, W1 10-30 BROCK STREET, NW1 £20.1m ERV; 91% let; 80% resi sold £3.9m ERV; unlet; 90% resi pre- sold COMPLETED COMPLETED LATE 2014 39 VICTORIA STREET, SW1 £4.9m ERV; unlet LEADENDHALL EC3 £18.6m ERV; 52% pre-let BROADGATE CIRCLE, EC2 £1.2m ERV; unlet 5 BROADGATE EC2 £19.2m ERV 100% pre-let COMPLETED • COMPLETED 13 MID 2014 EARLY 2015 British Land#15DELIVERING STRONG RETURNS FROM 2010 OFFICE DEVELOPMENT PROGRAMME . Profit on cost over 40%; IRRs of c30% 14 £m £490m £423m 90 £391m £359m £321m 126 175 £257m 192 188 400 192 297 216 167 133 65 Mar 11 Sep 11 ■Profit Taken Profit to Come Mar 12 Sep 12 Mar 13 Sep 13 British Land#16REPLENISHING LONDON DEVELOPMENT PIPELINE • 2.1m sq ft next phase London and retail development (recently committed and near-term) • £1.1bn total development cost • Estimated profit to come of around £275m 15 Clarges Estate The Hempel Aldgate Phase 1 Yalding House 4 Kingdom Street Shoreditch Estate 5 Kingdom Street RECENTLY COMMITTED Now on site 1,044,000 sq ft NEAR-TERM PIPELINE 2014 2015 458,000 sq ft 562,000 sq ft British Land#17• CONTINUING TO REPOSITION RETAIL PORTFOLIO £304m of UK retail assets sold; Basildon Eastgate sold recently for £89m, ahead of valuation £385m bought year to date; South Gate, Bath and HUT units • £200m of disposals under offer/in the market 16 Retail Asset Sales (Year to Date) No of Assets Sale Price Retail Parks Foodstores Shopping Centres High Street Total 4 £81m 5 £29m 3 £183m 1 £11m 13 £304m British Land#1817 INVESTING IN THE RIGHT RETAIL LOCATIONS: SOUTHGATE, BATH BOD ADD ORE SP SouthGate Bath 50% acquired for ₤101m The Vaults 430,000sq ft Top 10 Bath as a UK Tourist Destination 18m Visitors pa British Land#19WELL PLACED AND POSITIVE ABOUT THE FUTURE . • Improving sentiment across key markets - - London to remain strong Higher rents in offices Decent read through for development and residential - Improving confidence in retail - Improving outlook for right type of retail assets. Expect to continue to benefit from our actions - Increased exposure to London and the South East – Investment in up and coming London locations - Replenished development pipeline with optionality -Increased focus on locally preferred retail assets 18 British Land#20FINANCIAL POSITION A CORE STRENGTH OF BRITISH LAND Average interest rate of 4.2% Diverse Debt Profile (30 September 2013) £0.6bn • 75% fixed over 5 years £0.9bn • Average maturity of 9 years • £1.3bn of facilities in place for . • more than two years £710m of new financing arranged year to date £2.7bn of debt raised since March 2011 • LTV 41.8% at December 2013 . (based on September valuations) £1.7bn £1.7bn £1.0bn £0.4bn £0.7bn Unsecured Debt-undrawn Drawn Debentures & Loan Notes US Private Placements Convertible Bonds Other JV & funds debt Securitisations 1999 British Land#21CLEAR PRIORITIES 1 Driving growth from standing investments • Focusing on leasing and asset management Bedding down new assets such as Ealing Broadway and Southgate, Bath Delivering 2 returns from developments • • • Completing and letting up our 2010 programme Starting on site on recently committed developments Taking Paddington and Shoreditch through planning Selectively adding to the development pipeline Continued 3 Continued sale of more mature retail assets Retail · Disciplined acquisitions repositioning 20 20 British Land#22British Land APPENDICES#23MAJOR HOLDINGS As at 30 September 2013 (excl. developments under construction) BL Share Sq ft Rent Occupancy Lease Length % 000's £m pa¹ 1 Rate %² yrs³ 1 Broadgate, London EC2 50 3,963 177 97.0 7.6 2 Regent's Place, London NW1 100 1,589 67 97.6 9.6 3 Meadowhall Shopping Centre, Sheffield 50 50 1,374 82 88 97.4 8.4 4 Sainsbury's Superstores 42 52 2,864 40 67 100.0 15.7 5 Tesco Superstores 50 50 2,687 19 61 100.0 14.6 6 Paddington Central 100 609 22 22 92.9 10.7 7 Teeside Shopping Park, Stockton-on-Tees 100 451 14 100.0 7.5 8 Drake Circus Shopping Centre, Plymouth 100 570 15 98.7 6.7 9 Debenhams, Oxford Street 100 363 10 110 100.0 25.5 10 Portman Square, W14 100 132 5 51.0 12.5 1 Annualised contracted rent including 100% of Joint Ventures & Funds 2 Includes accommodation under offer or subject to asset management 3 Weighted average to first break 4 Development reached practical completion in May 2013 22 British Land#24UK PORTFOLIO WEIGHTING As at 30 September 2013 (%) Retail parks Superstores Shopping centres Department stores Leisure UK Retail City West End Provincial All Offices Residential² All Offices & Residential UK Total London & South East Rest of UK 2012 2013 (Current) 2013 (Pro forma)1 24.5 22.9 20.8 12.6 11.7 10.9 17.6 17.3 15.7 4.6 4.6 4.1 3.0 2.8 2.6 62.3 59.3 54.1 17.1 16.5 17.3 18.4 22.0 25.3 0.8 0.8 0.7 36.3 39.3 43.3 1.4 1.4 2.6 37.7 40.7 45.9 100.0 100.0 100.0 54.2 45.8 57.6 42.4 61.4 58.6 Table shows UK total, excluding assets held in Europe. 1 Pro forma for committed developments at estimated end value (as determined by the Group's external valuers) and disposals completed/exchanged post half end 2 Stand-alone residential British Land 23#25TOP 20 CUSTOMERS & CUSTOMER SPLIT BY INDUSTRY Customer Split by Industry (%) As at 30 September 2013 % of Total Rent Tesco plc 7.3 Sainsbury Group Debenhams UBS AG Home Retail Group Kingfisher (B&Q) HM Government Arcadia Group Next plc Virgin Active Spirit Group Alliance Boots 5.9 2% 5.7 6% 3.2 15% 2.7 11% 2.6 2.5 18% 2.1 14% 2.1 2.1 8% 1.6 19% 1.5 7% Herbert Smith 1.4 DSG International 1.3 Marks & Spencer Plc 1.2 ■ Supermarkets Royal Bank of Scotland plc 1.2 ■General Retail Hutchison Whampoa 1.2 ■ Food / Leisure Asda Group 1.1 ■ Professional & Corporate ■Fashion & Beauty ■DIY ■ Banks and Financial Services ■Government New Look 1.0 ■ Other Businesses House of Fraser 1.0 224 British Land#26UK PORTFOLIO VALUATION BY SECTOR As at 30 September 2013 Group £m JVs & Funds Total Change %2 £m¹ £m H1 Retail parks 1,755 814 2,569 1.1 Superstores 118 1,188 1,306 2.0 Shopping centres 756 1,181 1,937 0.3 Department stores 512 1 513 6.5 Leisure 308 3 311 2.0 UK Retail 3,449 3,187 6,636 1.5 City 57 1,786 1,843 3.6 West End 2,468 2,468 6.0 Provincial 85 5 90 4.0 All Offices 2,610 1,791 4,401 5.0 Residential³ 160 160 2.6 All Offices & Residential 2,770 1,791 4,561 4.9 UK Total 6,219 4,978 11,197 2.8 UK Standing Investments UK Developments 5,682 537 4,565 413 10,247 2.1 950 8.9 Table shows UK total, excluding assets held in Europe. Total portfolio valuation including Europe of £11.4bn at period end, +2.7% valuation movement. Group's share of properties in joint ventures and funds 2 Valuation movement during the period (after taking account of capital expenditure) of properties held at the balance sheet date, including developments (classified by end use), purchases and sales 3 Stand-alone residential 25 British Land#27UK PORTFOLIO NET YIELDS1 As at 30 September 2013 (excl. developments) EPRA Net Initial Yield % 2 EPRA Topped- Overall Topped- Up Net Initial Up Net Initial Yield %² Yield%3 Net Net Reversionary Yield % Equivalent Yield % Retail parks 5.5 5.7 5.8 5.8 5.9 Superstores 5.1 5.1 5.1 5.1 5.1 Shopping centres 5.4 5.7 5.7 5.8 5.8 Department stores 5.4 5.4 7.8 4.5 6.0 Leisure 7.6 7.6 8.8 6.0 8.4 UK Retail 5.5 5.6 5.9 5.6 5.8 City 5.3 6.1 6.1 6.0 5.6 West End 3.0 4.8 4.9 5.6 5.4 Provincial 7.1 7.1 7.1 5.7 6.3 All Offices 4.0 5.3 5.4 5.8 5.5 UK Total 5.0 5.5 5.8 5.7 5.7 Table shows UK total, excluding assets held in Europe. 2 Including rent contracted from expiry of rent-free periods and fixed uplifts not in lieu of growth 3 1 Including notional purchaser's costs Including fixed/minimum uplifts (excluded from EPRA definition) 26 British Land#28UK LEASE LENGTH AND OCCUPANCY As at 30 September 2013 Average Lease Length (yrs) To Expiry To Break Occupancy Retail parks 9.5 8.6 95.7 Occupancy Rate (%) Occupancy (underlying) 97.4 Superstores 15.0 15.0 100.0 100.0 Shopping centres 9.6 8.8 95.6 97.0 Department stores 27.4 24.1 99.5 99.5 Leisure 21.2 21.2 99.8 100.0 UK Retail 12.6 11.8 96.9 98.0 City 9.6 7.7 96.5 97.0 West End 11.6 9.6 89.8 92.8 Provincial 8.8 8.4 100.0 100.0 All Offices 10.6 8.7 92.8 94.7 UK Total 11.9 10.7 95.4 96.8 Table shows UK total, excluding assets held in Europe. 1 Including accommodation under offer or subject to asset management 27 British Land#29UK ANNUALISED RENT & ESTIMATED VALUE (ERV) As at 30 September 2013 (excl. Developments) Annualised Rents (Valuation Basis) £m¹ ERV £m Average Rent (£psf)² Group JVs & Funds Total Total Contracted ERV Retail parks 103 46 149 159 23.2 23.8 Superstores 7 63 70 70 21.8 21.7 Shopping centres 50 66 116 123 25.3 26.2 Department stores 30 30 25 13.4 11.0 Leisure 25 25 20 13.4 10.8 UK Retail 215 175 390 397 21.4 21.3 City 4 77 81 91 47.4 45.7 West End 69 69 124 48.5 50.8 Provincial 6 6 5 27.1 21.9 All Offices 79 77 156 220 46.8 47.2 Residential³ All Offices & Residential 3 3 3 82 77 159 223 UK Total 297 252 549 620 25.7 26.0 Table shows UK total, excluding assets held in Europe. 1 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 2 Office average rent £psf is based on office space only 3 Stand-alone residential 28 British Land#30UK RENT SUBJECT TO OPEN MARKET RENT REVIEW 12 months to 30 September (£m) 2014 2015 2016 2017 2018 2014-16 2014-18 Retail parks 18 17 22 16 21 57 94 Superstores 8 23 13 4 4 44 62 52 Shopping centres 14 17 14 14 12 45 71 Department stores 5 Leisure UK Retail 40 57 54 34 38 151 223 I Offices: City West End Provincial 29 29 CO 6 5 12 3 40 55 55 5 17 7 21 22 22 29 72 1 5 6 6 All Offices 34 24 17 33 25 25 75 133 UK Total 74 81 71 67 63 226 356 Potential Uplift at Current ERV 2 3 1 - 6 6 Table shows UK total, excluding assets held in Europe. 29 29 British Land#31UK RENT SUBJECT TO LEASE BREAK OR EXPIRY As at 30 September (₤m) Retail parks 2014 2015 2016 2017 2018 2014-16 2014-18 4 7 7 9 13 18 40 Superstores Shopping centres 10 7 12 11 6 29 29 46 Department stores Leisure I UK Retail City 14 14 19 20 19 47 86 1 1 19 8 21 29 29 2 4 1 14 9 7 30 30 West End Provincial All Offices UK Total % of Contracted Rent Potential Uplift at Current ERV Table shows UK total, excluding assets held in Europe. 30 30 3 5 20 14 17 28 59 17 19 39 34 36 75 145 2.8% 2.9% 6.1% 5.4% 5.6% 11.8% 22.7% 2 1 (1) (1) 3 1 British Land#32ERV RESETTING TO MARKET Annualised at 30 September (£m pa) ERV Expiring existing portfolio¹ Speculative developments - City Speculative developments - West End Speculative developments - Retail Total Rent Resetting to Market ERV of current vacancies 2,3 Vacant & Income Expiring 1 Rent is based on ERV, reflecting current valuation 2 3 Including £10m of vacant space at recently completed developments Including space under offer of £7m and space in asset management of £1m 31 2014 2015 2016 2017 2018 2014-16 2014-18 20 19 39 33 34 78 145 10 11 11 9 6 15 15 3 1 42 21 45 33 34 108 175 28 28 136 203 British Land#33UK CONTRACTED RENTAL INCREASES (CASH FLOW BASIS) 32 Annualised at 30 September (£m pa) Expiry of rent free periods - standing portfolio Expiry of rent free periods – development pre-lets Fixed uplifts (EPRA basis) 2014 2015 2016 2017 2018 2014-16 2014-18 38 1 56 57 21 5 3 24 32 1 1 1 2 3 Fixed & minimum uplifts in lieu of rental growth 1 1 3 3 2 5 10 Total 40 14 33 9 6 84 102 British Land#3433 33 . DEVELOPMENT PROGRAMME DRIVING FUTURE PERFORMANCE 2010 committed office programme already 68% pre-let, well ahead of plan • Recently committed programme; profit on cost 25% • Total pipeline of 3m sq ft Sq ft '000 Current Dev. Cost £m 2010 Committed Development Programme 2,666 1,335 Recently Committed Programme Near-term Pipeline Total recently Committed/Near-term Medium-term Prospects 1,044 626 1,020 478 2,064 1,104 c1,000 British Land#352010 DEVELOPMENT PROGRAMME 12 months to 30 September (£m) Sector BL Share Sq ft % '000 PC Calendar Year Current Value Complete Cost to ERV Pre-let Resi End Value³ £m £m1, 1,6 £m² £m £m 10-30 Brock St, Regents Place+ Mixed Use 100 505 Completed 360 6 20.1 17.1 115 5 Broadgate Offices 50 710 2015 195 87 19.2 19.2 The Leadenhall Building Offices 50 605 2014 195 43 18.6 8.6 10 Portman Square Offices 100 132 Completed 165 5 9.7 4.9 Marble Arch House5 Mixed Use 100 86 2013 64 9 3.9 18 39 Victoria Street Offices 100 93 2013 63 6 4.9 199 Bishopsgate Offices Whiteley Shopping, Fareham Retail Bedford Street Residential 100 ŏgg 50 144 Completed 55 3.5 1.8 50 321 Completed 42 1 2.6 2.4 24 2014 26 3 27 Glasgow Fort (Leisure) Retail 44 46 Completed 7 2 0.5 0.5 Total 2010 Programme: 2,666 1,172 163 83.0 54.5 160 Total Committed: 3,710 1,467 494 97.3 58.7 744 Data includes Group's share of properties in Joint Ventures & Funds (except area which is shown at 100%) 1 From 1 October 2013 to practical completion (PC) 2 Estimated headline rental value net of rent payable under head leases (excluding tenant incentives) Includes 126,000 sq ft of residential, of which £93 million has now sold and completed during the half 3 Residential development of which £120 million completed or exchanged 4 5 Includes 10,000 sq ft of residential 6 Cost to complete excludes notional interest as interest is capitalised individually on each development at our capitalisation rate 34 British Land#36RECENTLY COMMITTED DEVELOPMENT PROGRAMME 12 months to 30 September (£m) Sector BL Share Sq ft PC Current Calendar Cost to Value Complete ERV Pre-let Resi End Value % '000 Year £m £m1, 1,4 £m² £m £m The Clarges Estate³ Mixed Use 100 193 2017 170 179 5.6 388 Hereford The Hempel Retail 100 310 2014 35 40 5.5 2.8 Residential 100 40 2015 34 26 81 Craven Hill Gardens Residential 100 25 2014 33 8 50 50 Aldgate Place, Phase 1 Residential 50 221 2016 8 52 655 Broadgate Circle Offices 50 45 2014 7 8 1.2 Milton Keynes, Kingston Centre Retail 50 21 2014 4 0.3 0.3 Broughton Park, Chester Retail 44 54 2014 2 5 0.5 0.4 Meadowhall Surrounding Land Retail 50 22 Whiteley Leisure, Fareham Retail 50 58 &$ | S 2015 3 0.4 0.4 Fort Kinnaird, Edinburgh Retail 222 2015 22 55 2015 00 6 0.5 0.2 3 0.3 0.1 Total Recently Committed: 1,044 295 331 14.3 4.2 584 Data includes Group's share of properties in Joint Ventures & Funds (except area which is shown at 100%) 1 From 1 October 2013 to practical completion (PC) 2 Estimated headline rental value net of rent payable under head leases (excluding tenant incentives) 3 Includes 103,000 sq ft of residential 4 Cost to complete excludes notional interest as interest is capitalised individually on each development at our capitalisation rate 5 End value excludes hotel site, receipts of £5 million (BL share) estimated 35 British Land#37NEAR-TERM AND PROSPECTIVE DEVELOPMENTS As at 30 September 2013 (£m) BL Share Sq ft Total Cost % '000 £m¹ Status Near-term Pipeline The Shoreditch Estate Offices 100 322 165 Pre-submission 5 Kingdom Street Offices 100 2402 154 Consented 4 Kingdom Street Offices 100 145 93 Consented Surrey Quays (Extension) Retail 100 98 24 Yalding House Offices 100 29 22 Glasgow Fort (Retail) Retail 44 112 17 Deepdale, Preston Retail 22 74 3 Consented Pre-submission Planning submitted Consented Total Near-term 1,020 478 Medium-term Pipeline 100 Liverpool Street Offices 50 496 Power Court, Luton Retail 100 158 Aldgate Place, Phase 2 Residential 50 145 Wardrobe Court Residential 100 74 Fort Kinnaird, Edinburgh Retail 22 30 Lancaster Retail 100 n/a Eden Walk Shopping Centre, Kingston Retail 50 n/a Harmsworth Quays Residential 100 n/a Total Medium-term 903 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 36 Pre-submission Pre-submission Consented Pre-submission Planning submitted Pre-submission Pre-submission Pre-submission British Land#38ESTIMATED FUTURE DEVELOPMENT RENTAL INCOME (ACCOUNTING BASIS) PC Gross Rental Income (Accounting Basis)¹ £m - 12 mths As at 30 September 2013 Calendar Year Sep 14 Sep 15 Sep 16 Sep 17 Sep 18 Committed Developments 5 Broadgate Q1 2015 Contracted 9 18 18 18 The Leadenhall Building Q2 2014 Contracted Non-contracted 2 7 7 7 7 4 8 8 8 Broadgate Circle Q4 2014 Non-contracted 1 1 1 39 Victoria Street Marble Arch House Clarges Estate Total Offices Q4 2013 Non-contracted Q4 2013 Non-contracted 33 3 3 3 4 4 Q2 2017 Non-contracted Contracted Non-contracted 3 45 2 16 25 25 25 10 16 19 21 Hereford Q2 2014 Contracted 1 Non-contracted 22 2 2 2 2 22 Other Retail Developments Contracted 1 1 1 1 Non-contracted 1 1 Total Retail Contracted 1 Non-contracted 33 32 133 33 Total Committed Contracted 3 19 28 28 28 Non-contracted 12 19 22 24 Recently Completed Developments (letting of vacant space) 199 Bishopsgate Q3 2012 Non-contracted 1 1 1 1 1 10 Portman Square Q2 2013 10 30 Brock Street Q3 2013 Non-contracted Non-contracted 1 4 4 4 4 Total Recently Completed¹ Non-contracted 2 27 7 38 3 3 8 8 1 Pre-lets plus valuers estimates of non-contracted rent 37 British Land#39ESTIMATED FUTURE DEVELOPMENT SPEND AND CAPITALISED INTEREST PC Prelet ERV Cost to complete £m (excluding notional interest) - 6 mths As at 30 September 2013 Calendar Year £m Mar 14 5 Broadgate The Leadenhall Building 2015 19.2 34 Sep 14 25 Mar 15 Sep 15 Mar 16 Sep 16 28 2014 8.6 19 11 13 Marble Arch House 2013 7 2 39 Victoria Street 2013 4 Bedford Street 2014 3 Total 2010 Programme: 27.8 67 39 42 The Clarges Estate 2017 3 Hereford 2014 2.8 17 22 22 33 35 29 23 23 20 The Hempel 2015 n/a 7 5 2 1 Craven Hill Gardens 2014 n/a Aldgate Place, Phase 1 2016 n/a 8 5 9 3 6 Broadgate Circle 2014 4 1 Milton Keynes, Kingston Centre 2014 0.3 1 Broughton Park, Chester 2014 0.4 1 4 Meadowhall Surrounding Land 2015 0.4 Whiteley Leisure, Fareham 2015 0.2 23 2 Fort Kinnaird, Edinburgh 2015 0.1 2 Total Recently Committed: 4.2 47 63 57 51 34 30 Total Committed: 32.0 114 102 99 51 34 30 Total Near-term 24 25 33 64 77 79 Indicative Interest Capitalised on above at attributable rates¹ 10 10 9 8 10 11 1 Financing costs are capitalised on qualifying expenditure for committed and near term developments; the rate is at 3% for Leadenhall and 4% for all other developments 38 British Land#40SHORTAGE OF QUALITY SPACE Central London Development Completions m sq ft 16 14 12 10 8 6 4 2 ... 90 91 92 93 94 95 96 97 98 99 01 02 03 04 05 06 07 08 09 10 11 12 13 14 15 16 17 18 19 Completions U/C pre-let U/C speculative -10 yr average Grade A take-up Source: CBRE 39 British Land#41OFFICE MARKET RENTAL OUTLOOK Rental Growth Driven by Imbalance between Supply and Demand £ psf 140 120 100 08 80 60 622 40 20 1990 1991 1993 1994 Actual Forecast I 1996 1997 1999 2000 2002 2003 2005 2006 2008 2009 2011 2012 2014 2015 2017 Source: CBRE (historic) and Average Agents' Consensus (including PMA) 40 -West End -City British Land#4241 DELIVERING FUTURE GROWTH - FOCUS ON LONDON AND THE SOUTH EAST Sudbury Golf Course Alperton A406 A40 Greenford Perivale A40 X Crossratshanger Park Western Ave on Chertsey Rd Ealing Broadway Great West Rd Brentford Syon Park Isleworth Richmond Kew Victoria Rd A40 Paddington Central White City Regents Place BE Crossrall 0 A4 A315 A316 Chiswick Eyot Eden Walk Shepherd's Bush Marble Arch WHA A214 Rd A218 EH A3 Battersea Park X X Crossrail Crossrail ford o Crossrail Crossrail Leadenhall Clarges Clapham Common Broadgate bilee dens beth 333 Clapham Rd A23 Bridon Hil Bridon Rd A202 Rd 4215 B Crossrail Shoreditch y Square ens A11 Stratford A118 High St A11 A112 Aldgate A13 A13 Poplar Crossrail A1206 A114 High St N Central A1020 Beckton Distric Crossrail Park North Gallions Point Man Thames Barner Park A112 A102 Crossrail names East Greenwich Pleasaunce Goo Surrey Quays & Harmsworth Green Quays A206 Greenwich Paddington Central Recent acquisitions BL assets/concentration Continue to move West Up and coming areas Transport inter-changes Estates and mixed use schemes London residential Development British Land#43CLARGES ESTATE, MAYFAIR 42 CLARGES STREET Residential Kennel Club Office Residential BICCADILLY BOLTON STREET British Land#4443 REGENT'S PLACE Regent's Park 3 Minute Walk One Marlyebone Road The White House Hotel NSO BURGH STREET 20 Triton LONGFORD STREET 12 7 Triton Square Street 10 4 Triton Square Triton 13 14 Square 15 TRITON STREET Y Regent's Park UNDERGROUND: BAKERLOO LINE 10 Triton Street 350 Euston e Great Portland Street UNDERGROUND: CIRCLE, HAMMERSMITH & CITY, METROPOLITAN LINES Oxford Street 10 Minuto Walk Road 338 Euston Road TRITON SQUARE FITZROY STREET 2 Triton Square EUSTON ROAD Charlotte Street 7 Minute Walk TRITON SQUARE DRUMMOND STREET 10 Brock Street 30 Brock Street BROCK STREET REGENT'S PLAZA PLACE Euston Tower 000000 Warren Street UNDERGROUND: NORTHERN VICTORIA LINES Oxford Street 10 Minute Walk HAMPSTEAD RD Φ TOTTENHAM COURT ROAD Regent's Place Management Office 1 Sainsbury's Local EUROSTAR 2 Kings Cross Pret a Manger St Pancras International 15 Minute Walk 3 Starbucks UNDERGROUND: CIRCLE HAMMERSMITH & CITY, 4 METROPOLITAN, VICTORIA LINES ze Euston Pod NORTHERN, PICCADILLY, 5 Wasabi 6 Eat 7 Minute Walk 7 NatWest UNDERGROUND: NORTHERN, FICCADILLY LINES 8 Union Bar and Gri Euston Square 9 Giovanni Rana 1 Minute Walk UNDERGROUND: CIRCLE, HAMMERSMITH & CITY, 10 New Diorama Theatre METROPOLITAN LINES 11 The nd Bar and Café 12 Kids Unlimited 13 Dough Bar University College 14 Hospital Virgin Active Accident & Emergency 15 Set Hair Design ↑ North (Not to scale) British Land#45PADDINGTON CENTRAL Key: BL ownership Non BL ownership Development sites (355,000 sq ft) + Crossrail box below (80,000 sq ft) 44 LITTLE VENICE Multi-let offices 268,000 sq ft A40(M) M25, M4 HARROW ROAD Multi-let offices 143,000 sq ft THREE SHELDON SQUARE TWO KINGDOM STREET FOUR KINGDOM STREET FIVE KINGDOM STREET KINGDOM STREET ONE NOVOTEL KINGDOM STREET WESTBOURNE TERRA 206 room 4-star hotel (111,000 sq ft) HARROW ROAD ONE SHELDON SQUARE SHELDON SQUARE N A40 WESTWAY 200 residential units sold on long leases; retail at ground floor GRAND ON CANAL BISHOP'S BRIDGE ROAD Non BL ownership 88,000 sq ft retail (16 units) around Sheldon Square TAXI RANK EASTBOURNE TEP DE Crossrail e= PADDINGTON STATION HEATHROW EXPRESS New Hammersmith & City line station and access to Crossrail British Land#46BROADGATE 45 WILSON STREET SUN STREET PINSBURY A BROADGATE CITY OF LONDON SNOWDEN STREET EARL STREET PINDAR STREET APPOLD STREET BROADGATE WELCOME CENTRE MOORGATE ELDON STREET SUN STREET PASSAGE LIVERPOOL STREET STATION WO STATION CONCOURSE e SHOREDITCH HIGH STREET WORSHIP STREET PRIMROSE STREET LIVERPOOL ST T DEVONSHIRE ROW e 創會 TOILET e FOLGATE STREET DISABLED ACCESS LONDON UNDERGROUND STATION MAIN LINE STATION BUS STOP BARCLAYS CYCLE HIRE CYCLE RACK T TAXI RANK P CAR PARKING BISHOPSGATE SPITALFIELDS BRUSHFIELD STREET ARTILLERY LANE MIDDLESEX STREET BISHOPSGATE BROADGATE CIRCLE FINSBURY AVENUE SQUARE BROADGATE PLAZA EXCHANGE SQUARE British Land#47INCOME STATEMENT 46 HY to 30 September Net Rental Income (£m) Fees & Other Income (£m) H1 2012/13 H1 2013/14 Change 272 275 1.1% 8 7 Administrative Expenses (£m) (39) (38) Net Finance Costs (£m) (104) (98) Underlying PBT (£m) Underlying EPS (p) 137 146 +6.6% 15.2p 14.5p (4.6)% British Land#48UK GROSS RENTAL INCOME1 - SECTORAL HY to 30 Sep 2013 Annualised as at 30 Sep 2013 (Accounting Basis) £m Group JVs & Funds Total Group JVs & Funds Total Retail parks 52 21 73 102 45 147 Superstores 5 32 37 7 63 71 Shopping centres 27 30 57 50 64 114 Department stores 16 16 34 34 Leisure 14 14 28 28 UK Retail 114 83 197 221 172 394 City 3 42 45 4 82 86 West End 35 35 84 84 Provincial 3 3 6 6 All Offices 41 42 83 94 82 176 Residential² 2 2 3 3 All Offices & Residential 43 42 85 97 82 179 UK Total 157 125 282 318 254 573 Table shows UK total, excluding assets held in Europe. 1 Gross rental income will differ from annualised rents due to accounting adjustments for fixed & minimum contracted rental uplifts and lease incentives 2 Stand-alone residential 47 British Land#49A PLATFORM FOR FUTURE INCOME GROWTH 48 Cash Flow Basis Accounting Basis Annualised Gross Rents Current Passing Rent Expiry of Rent-free Periods Fixed, Minimum Uplifts 2010 Non-Completed Developments Pre-let £m £m 5495 571 5731 13 28 24 Recently Committed Developments Pre-let 4 4 Total Contracted 651 601 Developments - 2010 Committed Developments to let² 29 23 Developments - Recently Committed/Near-term to let² 46 39 Investments - RPI, Letting of Vacancies etc. 2,3,4 30 28 Potential Rent in 5 Years Increase 756 691 38% 21% Table shows UK total, excluding assets held in Europe. 1 Rent includes £27m of completed 2010 Programme Developments on a cash flow basis, £23m on an accounting basis 2 Valuers estimate of non-contracted rents 3 Illustrative impact based on RPI of 2.5% pa 4 Includes RPI, open market rent reviews, re-letting of expiries and the letting of non-development vacant space 5 Gross rents plus, where rent reviews are outstanding, any increase to ERV (as determined by the Group's external valuers), less any ground rents payable under head leases British Land#50RECONCILIATION OF EPRA NAV & NNNAV As at Balance Sheet (IFRS) Net Assets 31 Mar 13 £m Pence £m 30 Sep 13 Pence 5,687 568 6,106 604 14 5 Deferred tax arising on revaluation movements Mark to market on effective cash flow hedges and related debt 198 adjustments 20 20 138 14 Adjust to fully diluted on exercise of share options 58 00 37 4 Surplus on trading properties 10 1 12 1 EPRA NAV 5,967 596 6,298 623 Deferred tax arising on revaluation movements (14) (1) (5) (1) Mark to market of debt and derivatives (431) (43) (277) (27) EPRA NNNAV 5,522 552 6,016 595 49 49 British Land#51STRENGTH OF BALANCE SHEET METRICS 50 Proportionally Consolidated Loan to Value (LTV) Average Interest Rate Interest Cover Average Maturity of Drawn Debt (years) Group Loan to Value (LTV) Average Interest Rate Interest Cover Pro forma for drawing down £200m from 2014 USPPS 31 Mar 2013 30 Sep 2013 40.2% 42.3% 4.6% 4.2% 2.3x 2.5x 9.9 8.9* 31 Mar 2013 24.2% 4.4% 30 Sep 2013 28.5% 3.7% 2.8x 3.3x British Land#52DEBT MATURITY - GROUP1 £m 1,000 800 600 400 200 0 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036 2037 Year to 30 September Debentures & Loan Notes Private Placements 1 Pro forma for the drawdown of the £200m 2014 USPPs and repayment of £200m of Drawn Facilities 51 Convertible Bonds British Land#53DEBT MATURITY - JOINT VENTURES AND FUNDS1 £m 1,000 800 600 400 200 0 2014 2015 2016 2017 2018 2019-2023 2024-2036 Year to 30 September ■JVS - Securitisations JVS - Bank Drawn Funds - Bank Drawn JVS - Bank Undrawn Funds - Bank Undrawn 1 At British Land share 52 British Land#54GROSS AND NET DEBT RECONCILIATION 53 As at 30 September 2013 (£m) Gross debt (principal value) IFRS Adjustments: Issue costs and premia Fair value hedges Other items Gross Debt (IFRS basis) Market value of derivatives Group JVs & Funds Total 2,687 2,507 5,194 (7) (11) (18) 61 61 20 20 20 2,761 2,496 5,257 29 94 123 (112) (210) (322) 2,678 2,380 5,058 Cash & liquid investments Net debt (IFRS basis) EPRA Adjustments: Mark to market on effective cash flow hedges and related debt (50) (88) (138) adjustments Net Debt (EPRA Basis) 2,628 2,292 4,920 British Land#55UK PROPERTY MARKET-YIELD GAP VS 10 YEAR GILTS 54 54 % 12 10 8 64 2 0 1990 Yield gap % 5 3 1 (1) (3) (5) UK 10 Year Gilt Yield -IPD All Property Net Initial Yield 1998 2005 2012 British Land#5655 55 NUMBER OF SHARES Number of shares (m) Basic Weighted Average Period End Mar 13 Sep 13 895 993 986 999 Diluted Weighted Average 901 997 Period End 1,001 1,011 British Land