Presentation 2009 Unlocking potential Agenda Introduction Toby - PowerPoint PPT Presentation

Half Year Results 
 Presentation 2009 � Unlocking potential �

Agenda � Introduction � Toby Courtauld � � Chief Executive � Financial Results � Timon Drakesmith , Finance Director � Market � Toby Courtauld , Chief Executive �� Valuation � Sales & Acquisitions � Asset Management � Neil Thompson , Portfolio Director � Development Update � Outlook � Toby Courtauld , Chief Executive � 2 � Business Overview � 1. Strong operating performance � 3. Team – strength in depth � • • 66 lettings H1 (2008: 36 lettings) � Neil Thompson – Portfolio Director � • • Generating £5.4m p.a. (£4.8m our share) � Ben Chambers – Investment Director, 
 • � New Business � Void rate down to 4.7% (7.8% March 2009) � • • Further 8 lettings under offer – voids  by 1% � Hugh Morgan – Head of Investment Management � • • James Mitchell – Head of Asset Management � Strong rent collection / low delinquencies � • Jonathan Walker – Head of Project Management � • Marc Wilder – Head of Leasing � • Head of Development – search started � 2. Investment programme underway � 4. GPE positioned for growth � • • £139.9m of new commitments, 4 deals � Strong balance sheet – 48.5% pro forma gearing � • • £48.0m under offer � £370m available to invest � • • Expect to spend >£175m by end 2010 � Portfolio rich with opportunities � • • Recycling continues 
 Core locations; low rents – offices @ £34 psf � - £59.9m sold since March 1 
 • Development pipeline of 2.6m sq ft � - 5.2% above book value 1 � • Start on site 2010 � 3 � 1 GPE share, includes £5m deferred consideration �

Headline Results � 6 months � To September 2009 � 3 months � 12 months � -2.7% � Property Valuation* � +2.6% � -22.7% � -8.6% � Portfolio ERV movement* � -3.4% � -24.0% � Total Property Return � -0.2% � +4.1% � -19.0% � NAV � -8.2% � +4.2% � -38.9% � 4 � *Like-for-like, including share of joint ventures � Total Property Return 
 Relative to IPD Central London � Total Property Return (% pa) � Years to September � 40 � 50 � Relative � 40 � GPE � 30 � IPD central London � 30 � 20 � 20 � 10 � 10 � 0 � 0 � -10 � -10 � -20 � -20 � -30 � 2002 � 2003 � 2004 � 2005 � 2006 � 2007 � 2008 � 2009 � 5 � Source: IPD �

Agenda � Introduction � Toby Courtauld , Chief Executive � Financial Results � Timon Drakesmith � � Finance Director � Market � Toby Courtauld , Chief Executive �� Valuation � Sales & Acquisitions � Asset Management � Neil Thompson , Portfolio Director � Development Update � Outlook � Toby Courtauld , Chief Executive � 6 � Financial Highlights � Balance Sheet / Returns � Sept 09 � March 09 � Change � Portfolio value 1 � £1,054m � £1,129m � (2.7)% 2 � NAV per share 3 � 225p � 245p � (8.2)% � REIT NNNAV per share 3 � 232p � 250p � (7.2)% � Income Statement � Sept 09 � Sept 08 � Change (%) � Adjusted PBT � £13.5m � £14.5m � (6.9)% � EPS 3 � 5.4p � 6.0p � (10.0)% � Dividend per share � 3.0p � 3.0p � - � 1 Including share of JVs 2 Like-for-like change excluding sales �� 7 � 3 Adjusted and diluted restated by the bonus factor to reflect the new number of shares post rights issue �

Adjusted NAV per share 1 
 Movement since 31 March 2009 � Pence � 300 � -7 � -3 � 250 � -3 � -6 � 7 � 5 � -6 � (8.2%) � 200 � 150 � 245 � 225 � 232 � 100 � 50 � 0 � March-09 � Group � Joint venture Loss on Derivative EPS � Final Sep-09 � M to M NNNAV � March-09 � Investment / JV � Development Loss on disposal Derivative EPS � Final dividend � Sep-09 � M to M debt � NNNAV � properties � & other � termination � properties � properties � disposal & termination � dividend � debt � other � Revaluations � 8 � 1 Adjusted per EPRA guidance � Change in Quarterly NAV � % � 15.0 � NAV by quarter � 11.3 � 10.0 � 8.1 � 8.0 � 7.2 � 4.2 � 5.0 � 2.8 � Mar 2008 � Dec 2008 � 0.0 � June 2007 � Sep 2006 � Sep 2009 � -5.0 � -5.8 � -6.4 � -7.6 � -10.0 � -8.4 � -11.8 � -15.0 � -16.2 � -20.0 � -20.5 � -25.0 � 9 �

Adjusted Profit Before Tax 
 6 months to September 2009 � £m � 16 � -0.4 � 15 � 14.5 � (6.9)% � -1.7 � 14 � 13.5 � 4.7 � 13 � -3.9 � 12 � 11 � 10 � 0.7 � -0.4 � 9 � 8 � 7 � 6 � Mar-09 � Rental income & Adjusted JV profits � Development Property costs � Admin costs � Net interest � Sep-09 � Sep-08 � Rental income Adjusted JV Development Property costs � Admin costs � Net interest � Sep-09 � joint venture fees � management profits � & joint venture profits � management fees � profits � 10 � Debt Analysis � Pro forma 1 � September 2009 � March 2009 � Net debt excluding JVs (£m) � 338.5 � 204.6 � 371.0 � Net gearing � 48.5% � 29.3% � 65.2% � Total net debt including 50% JV 465.7 � 331.8 � 506.4 � non-recourse debt (£m) � Loan-to-property value � 39.2% � 31.5% � 44.9% � Total net gearing � 66.8% � 47.6% � 89.0% � Pro forma � September 2009 � March 2009 � Interest cover � n/a � 3.1x � 2.1x � Weighted average interest rate � n/a � 5.2% � 5.8% � % of debt fixed / capped � 53% � 74% � 86% � Cash & undrawn facilities (£m) � 370 � 504 � 330 � 11 � 1. 30 September balance sheet adjusted for acquisitions of 90 Queen Street, EC4; Marcol House, 293 Regent Street, W1 & 23 Newman Street, W1 �

Gearing Rates & Interest Cover � 80% � 3.5 � Gearing � Interest cover (right hand scale) � 70% � 3 � 70% � 60% � 2.5 � 50% � 50% � 2 � 40% � 1.5 � 65% � 30% � 48% � 1 � 44% � 43% � 41% � 20% � 30% � 29% � 0.5 � 10% � 0% � 0 � 2004 � 2005 � 2006 � 2007 � 2008 � 2009 � Sep-09 � Target � 12 � Gearing Rates & Interest Cover � 80% � 3.5 � Gearing � Interest cover (right hand scale) � 70% � 3 � 60% � 2.5 � 50% � 2 � 40% � 1.5 � 65% � 30% � 48% � 1 � 44% � 43% � 41% � 20% � 30% � 29% � 0.5 � 10% � 0% � 0 � 2004 � 2005 � 2006 � 2007 � 2008 � 2009 � Sep-09 � Target � 13 �

Tenant delinquencies 
 Six month periods � H2 2008 � H1 2009 � H2 2009 � H1 2010 � Number of 5 � 4 � 9 � 5 � delinquencies � Value of delinquencies as % of 0.2% � 0.3% � 0.4% � 0.1% � Rent Roll � Rent collected within 95.8% � 96.9% � 97.0% � 94.3% � 7 working days � Delinquencies by sector � 12 � Retail � Media � Professional Services � Other � 10 � 8 � 6 � 4 � 2 � 0 � H2 2008 � H1 2009 � H2 2009 � H1 2010 � 14 � Key Financial Messages � Various themes drive financial results � • Improvement in portfolio value and NAV from June � • Difficult comparative for PBT and EPS so down year on year � • Good operating performance – solid leasing and overheads under control � • Recent acquisitions will add to rent roll � • Plentiful financial resources for new investment � • Dividend level consistent with strong position � Market environment unpredictable but GPE in good shape to grow � 15 �

Agenda � Introduction � Toby Courtauld , Chief Executive � Financial Results � Timon Drakesmith , Finance Director � Market � Toby Courtauld � Valuation � Chief Executive � Sales & Acquisitions � Asset Management � Neil Thompson , Portfolio Director � Development Update � Outlook � Toby Courtauld , Chief Executive � 16 � Key Market Messages � 1. Investment market turned � 2. Sustainable recovery requires rental growth � 3. Occupational market still weak … � 4. … but rate of rental value decline slowed � 5. Absent economic shock, on target for rental recovery 2010 � 17 �

Capital Values 
 A sharper price correction � Capital Growth Index – Central London � 110 Dec 89 � 90s 00s 100 Jan 91 � 90 80 Aug 07 � Jan 92 � 70 Dec 93 � Sep 08 � Jan 93 � 60 50 Sep 09 � 40 1 � 3 � 5 � 7 � 9 � 11 � 13 � 15 � 17 � 19 � 21 � 23 � 25 � 27 � 29 � 31 � 33 � 35 � 37 � 39 � 41 � 43 � 45 � 47 � 49 � Month � 18 � Source: Knight Frank Research, IPD � Buying picked up … 
 Central London acquisition volumes 
 £ billion � 7 � Why? � Rights Issue � Domestic Purchasers � May 2009 � Overseas purchasers � • Price correction � 6 � Domestic purchasers � Overseas Purchasers � • Sterling weakness � • Historically high yields � 5 � • London – a global city � 4 � 3 � 2 � 1 � 0 � 2000 � 2002 � 2004 � 2006 � 2008 � 2009 � 2000 � 2001 � 2002 � 2003 � 2004 � 2005 � 2006 � 2007 � 2008 � 2009 � 19 � Source: CBRE �