Year End Results 2014/15
Full Year Results 2014/15 Maxwell James Daniel Greenslade Nigel J Kempner Chief Executive Financial Controller Investment Director Quintain Full Year Results 2014/15 Page 2
Creating Shareholder Value Three complementary businesses Target returns Quintain Full Year Results 2014/15 Page 3
Highlights Good performance from investment and development assets £366.0m GAV £395.7m GAV £13.4m rental income Maturing Wembley Park assets Emerald Gardens £599psf (2014: £570psf) Development Investment Net rent £9.3m (2014: £4.3m) £96.4m of joint venture sales Growing London Portfolio of 8 assets Alto planning: 70 sales, £656psf Net rent £4.1m (2014: £0.1m) £29.6m of joint venture sales New Professional Market Rental Preparing new 43-acre masterplan business seeded 250+ units in pipeline Financial Operating profit £41.4m (2014: £12.5m) Adjusted PBT: £6.2m (2014: £4.2m ) NAV p.s. 122p (2014:115p) £375m of debt in place: earliest maturity 2018 Quintain Full Year Results 2014/15 Page 4
Finance Review
A Solid Platform for Growth New income streams, with Strong financial platform Creating value from our potential for growth, have enhanced by refinancing residential and replaced discontinued of bank facilities commercial assets activities Quintain Full Year Results 2014/15 Page 6
Financial Review Headlines Earnings March 2015 March 2014 Profit after tax £37.9m £52.9m Operating profit £41.4m £12.5m Adjusted profit before tax (1) £6.2m £4.2m EPRA diluted EPS 1.0p 1.1p Net Asset Value per share March 2015 March 2014 Basic NAV p.s. 122p 115p EPRA NAV p.s. 122p 114p Financing March 2015 March 2014 Net debt £200.8m £208.9m Gearing 32% 35% Look-through LTV 27% 38% (1) Adjusted profit excludes disposals, valuation and mark-to-market adjustments and amortisation of intangibles but includes discontinued operations Quintain Full Year Results 2014/15 Page 7
Income Statement Acquisitions and growth replacing discontinued operations March 2015 (1) March 2014 (1) Adjusted profit basis £m £m Net rent (2) 15.8 3.8 Fees from asset and development management 1.3 3.1 Other income 1.9 2.2 Gross profit – continuing operations 19.0 9.1 Gross profit – discontinued operations 0.3 5.8 Administrative expenses (17.0) (17.4) Adjusted operating profit (loss) 2.3 (2.5) Joint ventures and associates 2.6 9.4 Net finance income (costs) 1.3 (2.7) Pre-tax adjusted profit 6.2 4.2 (1) A reconciliation to the statutory income statement is given in the Appendix (2) Includes £3.0m (2014: £nil) net surrender premium income Quintain Full Year Results 2014/15 Page 8
Net Asset Bridge Net asset value creation £m 650 (3.2) 640 28.1 639.4 630 620 610 14.2 (1.3) 2.9 611.6 600 3.3 595.4 590 580 115p 117p 122p 570 March 2014 Adjusted Revaluation Other capital September Adjusted Revaluation Other capital March 2015 NAV profit of property movements 2014 NAV profit of property movements NAV Quintain Full Year Results 2014/15 Page 9
Property Portfolio (1) 13.8% increase in value of development land over last year Valuation at Valuation at Movement since March 2014 % of March 2015 March 2014 Group £m £m LFL % Wembley Park 33% Investment assets (2) 272.9 254.2 4.6% In development (4) 5% 44.6 n/a 334.9 42% Development land 351.1 13.8% London Portfolio 11% Investment assets 93.1 23.9 3.3% Quercus (5) Long-term healthcare 5% 43.5 57.8 (5.8)% Non-core 4% Secondary property 29.4 33.3 1.5% Continuing 100% 834.6 704.1 7.1% iQ Student accommodation - 216.0 - Total 834.6 920.1 7.1% (1) Investment and trading properties (Quintain’s interest only) (2) Inclusive of rent incentives held in debtors on the Balance Sheet (3) Like for like movement net of capital expenditure and excluding capitalised interest (4) Emerald Gardens and Alto (5) Held as an associate investment with NAV £28.6m Quintain Full Year Results 2014/15 Page 10
Balance Sheet Strong financial position March Other iQ and Keystone March 2015 movements transactions 2014 £m £m £m £m Investment properties 686.4 110.8 5.6 570.0 Joint ventures and associates 91.1 (5.9) 15.0 82.0 Other non-current assets 28.1 8.2 - 19.9 805.6 113.1 20.6 671.9 Trading properties 23.4 17.6 (22.7) 28.5 Assets held for sale - - (106.2) 106.2 Net debt (200.8) (103.5) 111.6 (208.9) Other assets and liabilities 11.2 17.9 (4.4) (2.3) Net assets 639.4 45.1 (1.1) 595.4 Net asset value per share 122p 115p Gearing 32% 35% Quintain Full Year Results 2014/15 Page 11
Debt Financing £260m bank facilities refinanced March 2015 March 2014 Covenant Net debt £200.8m £208.9m Gearing, per bank covenants 110% 32% 35% Loan to value ratio 25% 27% Look through loan to value 27% 38% (3) (2) Facility levels £375.2m £443.0m Committed but undrawn debt £167.2m £225.5m Cash balance included in net debt £7.2m £10.3m Average maturity – on full facility 4.2 years 3.1 years Average cost of debt 5.2% 4.2% Cost of bank debt 3.2% 3.9% Hedging: - fixed 79.3% 75.3% - caps 20.7% 24.7% (4) (1) n/a 20.5x Interest cover, per bank covenants 1.25x (1) Includes impact of realised (historic) cost profits and losses on disposals (e.g. iQ, Greenwich interests and SeQuel) (3) Includes impact of facilities cancelled after the year end (2) Includes 364 day rolling overdraft facility of £20m (4) Net interest receivable, per banking covenant definition Quintain Full Year Results 2014/15 Page 12
Corporate Debt Maturities At May 2015: £260m facilities refinanced £m 400 Total facilities in place at 31 March 2015 350 300 250 200 150 2020 Bond 100 50 0 (1) 2015 2016 2017 2018 2019 2020 (1) 364 day rolling overdraft facility Quintain Full Year Results 2014/15 Page 13
A Solid Platform for Growth New income streams, with Strong financial platform Creating value from our potential for growth, have enhanced by refinancing residential and replaced discontinued of bank facilities commercial assets activities Quintain Full Year Results 2014/15 Page 14
London Designer Outlet, Wembley Park Wembley Park Creating a world-class residential, entertainment and sporting district
Wembley Park 2005 Quintain Full Year Results 2014/15 Page 16
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Alto courtyard, Wembley Park Residential Sales Accelerating the Pace
Alto courtyard, Wembley Park Residential Sales Accelerating the Pace
Outstanding Wembley Park Opportunity Substantial undeveloped existing consents 1m sq ft COMPLETE Quintain Full Year Results 2014/15 Page 26
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North West Village, Wembley Park Public squares and private gardens North West Village Entertainment quarter Quintain Full Year Results 2014/15 Page 28
Emerald Gardens Exceeding volume and pricing expectations 284 private homes: − 257 (90%) exchanged/reserved to date − average price £375,000 − ASP range: £250,000 - £730,000 − average £599psf − JV sales c. £96.4m £13.0m future JV profit to Quintain (1) − Number of homes sold per quarter & cumulative av. £psf 90 £597 80 70 60 £588 50 40 £581 30 £576 20 10 23 34 47 81 0 Q1 Q2 Q3 Q4 (1) Excluding interest and tax Quintain Full Year Results 2014/15 Page 29
Alto Accelerating development Quintain Full Year Results 2014/15 Page 30
Alto New joint venture 2 nd 50/50 JV with Keystone − 362 homes: 211 private sale − private courtyard garden − 120 homes: Quintain PMR Schedule: − April 2015: marketing launch − July 2015: pre-construction starts − September 2015: marketing suite opens − May 2017: first completions Quintain Full Year Results 2014/15 Page 31
Alto Strong initial sales 211 private homes: − launched April 2015 − 70 (33%) exchanged or reserved − average price £422,500 − ASP range: £320,000 - £577,000 − average £656psf − Alto JV sales to 20 May: £29.6m Quintain Full Year Results 2014/15 Page 32
Accelerating Development Plots NW07+NW08: next phase of North West Village Status: Anticipated timetable: − in design ‒ October 2015: planning application − faces Alto over Elvin Square Gardens ‒ Spring 2016: marketing launch − c. 400 homes ‒ Autumn 2018: first completions Quintain Full Year Results 2014/15 Page 33
2014 Quintain Full Year Results 2014/15 Page 34
2016 Emerald Gardens Quintain Full Year Results 2014/15 Page 35
2017 Emerald Gardens Alto Elvin Square Gardens Quintain Full Year Results 2014/15 Page 36
2018 Emerald Gardens Alto Elvin Square NW07 & Gardens NW08 Quintain Full Year Results 2014/15 Page 37
Emerald Gardens Alto Elvin Square NW07 & Gardens NW08 Wembley Theatre Quintain Full Year Results 2014/15 Page 38
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