18/10/1 10/17 For the period od ended ed 31 August 2017
01 01 Overview ew and highligh ghts 02 02 Financi ancial al results 03 03 Strategic gic updat ate Development and trading portfolio Investment portfolio Specialist platforms 04 04 Summar ary 05 05 Appendices ndices Appendix 1: Appendix 2: Appendix 3: 2
3 Preston Barracks, ks, Brighton
Strength of relationships – off-market transactions and high PPP success rate Target areas benefitting from planning policy that promotes regeneration Public sector partner of choice via PPP model >25 years experience of planning process and >90% success rate Long-term relationships with decision makers in core markets Mix of use, density and change of use are key value drivers A balance of land sales and longer-term development (both on or off balance sheet) Specialist platforms to allow further growth Retain assets within investment portfolio to benefit from longer-term regeneration uplift 4
in the next 2-4 years per annum and >£155m in the next 3 years post tax total return per annum on balance sheet and 50-60% including in the next 3 years our share of joint venture debt * Total return comprises NAV growth including dividends 5
£9.4m of gains delivered YTD (£7.2m in H1) Strong visibility on H2 gains Flat valuation in the period (H1 2017: 4.2% decline) £22.5m of non-core assets sold YTD above book value Aviva debt facility renegotiated on better terms £1.3m of efficiency benefits delivered in H1 via fees and overhead reduction 6
7 12 Hammersm smit ith Grove
H1 2018 18 H1 2017 17 FY 2017 017 Development and trading gains £7. 7.2m 2m £11.5m £35.0m Basic NAV £336 36.8m (1 (1) £340.5m (2) £347.6m (2) Basic NAV per share 269p 9p (1 272p (2) 278p (2) (1) Loss before tax (£3. 3.3m 3m) (£11.7m) (£1.7m) (3) Basic loss per share (3.2p 2p) (9.9p) (2.4p) Dividend per share (in respect of period reported) 2.4p 4p 2.4p 5.9p Supplemental dividend per share declared - - 2.8p Net debt £159 59.4m £128.0m £120.8m Gearing 47. 7.3% 3% 37.6% 34.8% (1) After payment of supplemental dividend (£3.5m /2.8p per share) – declared for FY2017 and paid in June 2017 (2) After payment of supplemental dividend (£10.0 million/8p per share) – declared for FY2016 and paid in June 2016. (3) After exceptional items relating to serviced office business (£2.1m) 8
+ £50m plus pa + 12% post-tax total return* 80 Good visibility on a strong pipeline of gains supporting our 12% total returns target 60 40 20 0 FY 2016 FY 2017 FY 2018 FY 2019 FY 2020 Realised gains Anticipated gains 9 *Total returns: the growth in our basic net asset value including dividends
Forec ecas ast Post- H1 H1 Remaind ainder er FY 2018 018 period Value lue trigger er Progres ess made 2018 18 H2 2018 18 gains ns (1) end end £3-4m £1.0m £2.2m – Ashford* Trading: disposal of whole site Completed Trading: let 90% of office space before Feb 79% let,17% u/o 12 Hammersmith £9-11m – – £9-11m 2018. Failure to let 90% of space leads to an Grove* See slide 16 for further detail independent valuation to assess profit share Planning consent secured. Student £8-10m – – £8-10m Scheme A, Brighton* PPP: completion of funding strategy accommodation element u/o. Trading: Surplus arising from either site £7-10m – – £7-10m Blackhorse Road* + Planning consent secured. disposal or from development Trading: surplus arising from either site Residential Scheme B* £6-10m – – £6-10m Planning Committee date 23 rd Nov 2017. disposal or from development Review undertaken to deliver better risk adjusted return and higher profitability per project Trading: surplus arising from forward-sale of £6-8m – – £6-8m Wind farm projects completed development First site under construction with forward sale process underway. PC in Dec 2017. PPP: entering into a funding agreement to Planning consent secured. Heads of terms agreed £5-6m – – £5-6m Mill Green, Cannock develop the scheme with funding partner Disposal of Machine Store site under offer and £2-3m – – £2-3m The Old Vinyl Factory* Trading: surplus arising from site disposal close to exchange Telegraph Works, £2-4m – – £2-4m Trading: disposal of completed units. 4 of 16 units u/o Greenwich* Trading: smaller projects with profit below £15m £6.2m – £9m Other (12 projects) £2m per project Guid idanc ance e range e £65 £65-70 70m £7.2m 7.2m £2.2m 2.2m £54 £54-63 63m 10 10 * Project located in London City Region: an area within one hour’s commute of central London (1) As per guidance (April 2 017) +Previously identified as Residential Scheme A
H1 2018 18 FY 2017 £m £m £m Gross debt 202. 2.4 172.1 Cash (43. 3.0) 0) (51.3) Net debt 159. 9.4 120.8 Gear arin ing 47. 7.3% 3% 34.8% Share of net debt in joint ventures 52. 2.4 44.0 Net debt including joint ventures 211. 1.8 164.8 Gear arin ing inclu luding ing joint int ventures ntures 62. 2.9% 9% 47.4% Analy alysis is of gross debt (exclud cludin ing JVs) Fixed rate 48. 8.6% 6% 41.6% Capped / SWAP 21. 1.6% 6% 29.8% Floating rate 29. 9.8% 8% 28.6% Weighted average interest rate 4.4% 4% 4.6% Weighted average maturity 3.8 8 years ears 4.8 years 11 11
Restructure of £67m Aviva long-term debt facility has been negotiated and is due to conclude in October giving: Greater flexibility on substitution Interest cost savings of approx. 75bps p.a. (to approx. 5.25%) Reduced cost amortisation profile 15-year term 70.0 60.0 50.0 40.0 £m 30.0 20.0 10.0 0.0 Aug-18 Aug-19 Aug-20 Aug-21 Aug-22 Aug-23 Aug-24 Aug-25 Corporate Drawn - Investment Drawn - Development 12 12
H1 2018 18 H1 2017 £m £m £m Recurring overheads ( less amounts relating to platform offset below ) 9.9 10.3 Platform management fees (1.0) 0) - £0.4m reduction in recurring overhead Offsetting costs 0.1 - £0.9m of net management fees Net contribution from management fees - Overall efficiency gain £1.3m (0.9) 9) Net recurring overheads 9.0 10.3 Closing down historic tax structures - 0.4 Deliver £1.0m of net management fees Net overheads 9.0 10.7 Deliver £1.0m of overhead reduction 13 13
14 14 Mayfield ield, Manchest ster
£m 15 15
On track to realise £9-11m gains by letting 90% of 12 Hammersmith Grove by Feb 2018. In event of not reaching 90% let, we receive a profit share based on a valuation of the building 2 years after practical completion (Feb 2018) – current U+I profit estimate based on this scenario is £9m. Anticipated profit Let or under offer Average rent achieved 16 16
Planning secured for £130m mixed-use regeneration of ex-industrial site near Blackhorse Road underground station to include 337 new homes and 18,800 sq. ft. of commercial floorspace. Anticipated profit Anticipated residential sales rate 17 17
Cheshire Oaks East Midlands Outlet Planning secured to develop a 35-acre greenfield site with easy access to M6 and Cannock train station delivering a 285,000 sq. ft. designer outlet village. Mill Green Outlet Village In legals to fund project. Land improvement gain from securing planning consent and delivering de-risked project to capital partner. Gloucester Quays Outlet Bicester Village Outlet Anticipated profit Number of retail units Swindon Designer Outlet 18 18
Planning secured for £300m mixed-use PPP project – the largest regeneration project in Brighton. Will deliver 369 new homes, 50,000 sq. ft. of offices and 534 student beds. Student accommodation element under offer. Anticipated profit Anticipated residential sales rate 19 19
20 20 Lomond coffee, tenant at D Deptford Market Yard
£1.5 .5m of adde ded valu lue Strong progress on disposals through ough asse set man anage gement in H1 No acquisitions made as market looks fully priced 17 asse sets £1.5m of value added Warehouse ouse + R Retain ined asse sets £173.0 .0m* £22.5 .5m non-cor ore asse set disposa osals ls above ve book valu lue Up to £27.5 .5m of further Further disposals of non-core assets disposa sals ls being ing to meet £50m target consid sidered Disciplined reinvestment of disposal proceeds Complete added value initiatives *Valuation as at 31 August 2017 21 21
22 22 The Record Store, , The Old Vinyl yl Factory
Building specialist off balance sheet Practical completion achieved at the Record Store (The Old Vinyl platforms to: Factory) and first letting secured Construction commenced at Donnybrook House, Dublin Leverage our equity and intellectual Planning secured at Ballymoss House, Dublin capital €23.6m acquisition of Carrisbrook House, Dublin Generate fees Grow our portfolio The Charlton Riverside area, where platform has 10 acres of existing industrial land, has recently been allocated by the local authority for a major residential-led regeneration - it is estimated U+I's land holdings could accommodate in excess of 1,000 new homes 23 23
24 24 12 Hammersm smit ith Grove
Recommend
More recommend
