Half-year Report- Part 3

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British Land Company (BLND)

UK 100

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From 1 April 2016			Price (Gross)	Price (BL Share)	Annual Passing Rent
Acquisitions	Sector	Region	£m	£m	£m²
Completed
New George Street Estate, Plymouth	Retail	South	64	64	5
Hercules Unit Trust unit purchase¹	Retail	Various	18	18	1
Dock Offices	Canada Water	London	8	8	-
Total			90	90	6
¹ Units purchased over the course of the period. £18m represents purchased GAV
² BL share of annualised rent topped up for rent frees
From 1 April 2016			Price (Gross)	Price (BL Share)	Annual Passing Rent
Disposals	Sector	Region	£m	£m	£m¹
Completed
Debenhams, Oxford Street	Retail	London	400	400	13
Superstores	Retail	Various	147	79	3
Dumfries Cuckoo Bridge	Retail	Scotland	20	20	1
The Hempel Collection	Residential	London	5	5	-
Aldgate Place	Residential	London	13	6	-
Exchanged
Portfolio of Retail assets (York Clifton Moor, Debenhams Manchester, Wakefield Westgate)	Retail	North	191	191	12
The Hempel Collection	Residential	London	8	8	-
Aldgate Place	Residential	London	1	1	-
Total			785	710	29
1 BL share of annualised rent topped up for rent frees

Gross Rental Income^1,2
Accounting Basis £m	6 months to 30 September 2016			Annualised as at 30 September 2016
	Group	JVs & Funds³	Total	Group	JVs & Funds³	Total
Regional	29	43	72	58	84	142
Local	49	13	62	97	26	123
Multi-lets	78	56	134	155	110	265
Department Stores and Leisure	26	-	26	43	-	43
Superstores	5	16	21	10	31	41
Solus/Other	10	-	10	20	-	20
Retail and Leisure	119	72	191	228	141	369
West End	66	-	66	127	-	127
City	2	60	62	4	120	124
Offices	68	60	128	131	120	251
Residential⁴	2	-	2	3	-	3
Offices and Residential	70	60	130	134	120	254
Canada Water	5	-	5	8	-	8
Total	194	132	326	370	261	631
Table with previous Retail classification provided on Company website at www.britishland.com/results
¹ Excluding developments under construction and assets held for development
²Gross rental income will differ from annualised rents due to accounting adjustments for fixed and minimum contracted rental uplifts and lease incentives
³ Group's share of properties in joint ventures and funds including HUT at share
⁴ Stand-alone residential

Major Holdings
At 30 September 2016	BL Share	Sq ft	Rent	Occupancy	Lease
(excl. developments under construction)	%	'000	£m pa¹	rate %^2,4	length yrs^3,4
Broadgate	50	4,721	225	98.7	8.0
Regent's Place	100	1,590	80	99.1	7.1
Paddington Central	100	806	34	99.9	7.3
Meadowhall, Sheffield	50	1,500	82	98.3	6.6
The Leadenhall Building	50	603	40	99.9	10.8
Sainsbury's Superstores⁵	52	2,259	49	100.0	10.8
Drake Circus, Plymouth⁶	100	1,132	21	98.0	5.1
Teesside, Stockton	100	523	17	98.5	6.1
Glasgow Fort	77	510	20	97.4	6.4
Ealing Broadway	100	423	13	93.1	6.1
¹Annualised EPRA contracted rent including 100% of Joint Ventures and Funds
² Includes accommodation under offer or subject to asset management at 30 September 2016
³ Weighted average to first break
⁴Excludes committed developments (100 Liverpool Street)
⁵ Comprises stand-alone stores
⁶Includes New George Street Estate, Plymouth acquired during the period

Portfolio Weighting
At 30 September	2015	2016	2016	2016
		(current)	(current)	(pro-forma¹)
	%	%	£m	%
Regional Lifestyle	19.5	20.7	2,878	19.5
Local Lifestyle	16.3	16.3	2,267	16.1
Multi-lets	35.8	37.0	5,145	35.6
Department Stores and Leisure	7.0	4.6	639	4.4
Superstores	6.0	4.9	681	4.8
Solus/Other	2.6	2.5	346	2.3
Retail and Leisure	51.4	49.0	6,811	47.1
West End	25.5	27.8	3,868	28.4
City	19.6	19.8	2,756	21.1
Offices	45.1	47.6	6,624	49.5
Residential²	1.5	1.4	195	1.5
Offices and Residential	46.6	49.0	6,819	51.0
Canada Water	2.0	2.0	289	1.9
Total	100.0	100.0	13,919	100.0
London Weighting	57%	58%	8,508	58%
Table with previous/IPD classification provided on Company website at www.britishland.com/results
1 Pro forma for developments under construction and committed developments at estimated end value (as determined by the Group's external valuers) and post period end transactions
² Stand-alone residential

Total Property Return (as calculated by IPD)
6 months to 30 September 2016	Retail		Offices		Total
%	British Land	IPD	British Land	IPD	British Land	IPD
Capital Return	(2.4)	(3.0)	(3.4)	(2.9)	(2.8)	(2.1)
- ERV Growth	0.9	0.5	0.1	1.0	0.5	0.8
- Yield Expansion¹	18 bps	20 bps	21 bps	21 bps	19 bps	15 bps
Income Return	2.6	2.5	1.7	1.8	2.1	2.3
Total Property Return	0.1	(0.5)	(1.8)	(1.1)	(0.8)	0.2
¹Net equivalent yield movement

Annualised Rent and Estimated Rental Value (ERV)¹
At 30 September 2016	Annualised rent (valuation basis) £m²			ERV £m	Average rent £psf
	Group	JVs & Funds	Total	Total	Contracted³	ERV
Regional	60	85	145	158	31.2	33.3
Local	98	28	126	135	24.3	25.2
Multi-lets	158	113	271	293	27.6	29.0
Department Stores and Leisure	41	-	41	32	13.8	10.6
Superstores	8	32	40	38	20.7	19.7
Solus/Other	20	-	20	17	19.8	17.0
Retail and Leisure	227	145	372	380	23.7	23.7
West End	137	-	137	171	53.0	61.7
City	4	88	92	149	51.0	60.2
Offices	141	88	229	320	52.4	60.9
Residential⁴	4	-	4	4
Offices and Residential	145	88	233	324
Canada Water	8	-	8	10	18.5	21.7
Total	380	233	613	714	29.7	31.9
Table with previous classification provided on Company website at www.britishland.com/results
¹ Excluding developments under construction, committed developments (100 Liverpool Street with annualised rents £9m and ERV £13m) and assets held for development
² 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
³ Annualised rent, plus rent subject to rent free
⁴ Stand-alone residential

Rent subject to Open Market Rent Review¹
For period to 31 March	2017	2018	2019	2020	2021	2017-19	2017-21
At 30 September 2016	£m	£m	£m	£m	£m	£m	£m
Regional	6	11	17	10	18	34	62
Local	4	25	21	12	10	50	72
Multi-lets	10	36	38	22	28	84	134
Department Stores and Leisure	-	-	-	-	-	-	-
Superstores	1	4	8	11	13	13	37
Solus/Other	-	-	-	-	-	-	-
Retail and Leisure	11	40	46	33	41	97	171
West End	4	22	20	15	9	46	70
City	-	4	14	14	16	18	48
Offices	4	26	34	29	25	64	118
Canada Water	-	2	-	-	-	2	2
Total	15	68	80	62	66	163	291
Potential uplift at current ERV²	-	2	4	3	1	6	10
Table with previous classification provided on Company website at www.britishland.com/results
¹ Excluding developments under construction, committed developments and assets held for development
²As determined by the Group's valuers, excluding near term developments

Rent Subject to Lease Break or Expiry¹
For period to 31 March	2017	2018	2019	2020	2021	2017-19	2017-21
At 30 September 2016	£m	£m	£m	£m	£m	£m	£m
Regional	6	15	9	13	10	30	53
Local	6	5	8	11	9	19	39
Multi-lets	12	20	17	24	19	49	92
Department Stores and Leisure	-	1	-	-	-	1	1
Superstores	-	-	-	-	-	-	-
Solus/Other	-	-	2	-	-	2	2
Retail and Leisure	12	21	19	24	19	52	95
West End	6	11	10	4	18	27	49
City	10	-	18	11	8	28	47
Offices	16	11	28	15	26	55	96
Canada Water	1	-	-	-	1	1	2
Total	29	32	47	39	46	108	193
% of contracted rent	4.3%	4.7%	6.9%	6.0%	6.7%	15.9%	28.6%
Potential uplift at current ERV (excl. Near and Medium term developments)	2	2	6	1	2	10	13
Table with previous classification provided on Company website at www.britishland.com/results
¹ Excluding developments under construction, committed developments and assets held for development

Superstores
	Stand-alone Superstores¹				In Multi-let assets ²				Total Exposure^1,2,3
Store Size '000 SQ FT	N^o of Stores	Valuation (BL share) £m	Capital Value psf	WALL to FB yrs	N^o of Stores	Valuation (BL share) £m	Capital Value psf	WALL to FB yrs	N^o of Stores	Valuation (BL share) £m	Capital Value psf	WALL to FB yrs
>100	8	171	256	11.9	5	339	423	12.5	13	510	347	12.3
75-100	11	197	398	12.1	3	61	276	15.8	14	258	361	13.0
50-75	16	248	353	12.1	1	12	189	10.6	17	260	339	12.0
25-50	8	50	220	7.8	2	27	502	13.0	10	77	274	9.4
0-25	2	6	145	8.6	18	79	426	10.6	20	85	373	10.4
September 2016	45	672	315	11.6	29	518	391	12.6	74	1,190	344	12.1
March 2016	47	763	383	13.9	28	536	482	12.7	75	1,299	419	13.5

Geographical Spread				Gross Rent (BL Share)					Lease Structure
London and South			54%	Tesco				£38m	RPI and Fixed			9%
Rest of UK			46%	Sainsburys				£26m	OMRR			91%
				Other				£5m
¹ Excludes £9m non-foodstore occupiers in superstore led assets
² Excludes non food-format stores e.g. Asda Living
³ Excludes £93m of investments held for trading comprising freehold reversions in a pool of Sainsbury's Superstores

Occupiers Representing over 0.5% of Total Contracted Rent
At 30 September 2016	% of total rent		% of total rent
UBS AG¹	5.8	Microsoft Co	0.9
Tesco plc	5.7	Vodafone	0.9
J Sainsbury plc	4.7	Aon Plc	0.9
Debenhams	3.8	SportsDirect	0.8
Kingfisher (B&Q)	2.6	Asda Group	0.8
Next plc	2.3	JPMorgan	0.8
HM Government	2.2	Deutsche Bank	0.7
Virgin Active	2.0	JD Sports	0.7
Facebook	1.7	Reed Smith	0.7
Wesfarmers (Homebase/Bunnings)	1.6	H&M	0.7
Spirit Group	1.6	Mothercare	0.7
M&S Plc	1.5	Mayer Brown	0.7
Alliance Boots	1.5	Lewis Trust (River Island)	0.6
Visa Inc	1.4	ICAP Plc	0.6
Dixons Carphone	1.4	Lend Lease	0.6
Dentsu Aegis	1.4	TGI Fridays	0.6
Arcadia Group	1.3	Pets at Home	0.6
Herbert Smith	1.2	Steinhoff	0.5
RBS	1.1	MS Amlin Plc	0.5
TJX Cos Inc (TK Maxx)	1.0	Credit Agricole	0.5
Gazprom	1.0	Henderson	0.5
New Look	0.9
¹ Rent contracted on both 5 Broadgate and run off of 1-3 Finsbury Avenue and 100 Liverpool Street. 3.0% pro-forma for run off of UBS rent at 1-3 Finsbury Avenue/100 Liverpool Street.

Medium term Pipeline
At 30 September 2016	Sector			BL Share		Sq ft			Status
						'000
2-3 Finsbury Avenue	Offices			50		560			Resolution to grant
135 Bishopsgate	Offices			50		340			Pre-submission
Blossom Street	Offices			100		340			Consented
1 Triton Square	Offices			100		338			Submitted
5 Kingdom Street	Offices			100		240			Consented
Gateway Building	Offices			100		104			Pre-submission
Aldgate Phase 2	Residential			50		145			Consented
Canada Water Phase 1¹	Mixed Use			100		5,500			Pre-submission
Bradford (Retail & Leisure)	Retail			100		43			Consented
Meadowhall Leisure	Retail			50		330			Submitted
Eden Walk Retail and Residential	Mixed Use			50		562			Resolution to grant
Total Medium Term						8,502
¹ Assumed net area based on gross area of up to 7m sq ft
Residential development programme
At 30 September 2016		Sq Ft	No. Market Units		PC Date/ Status		BL Share	Current Value¹	Cost To come²	Sales Exchanged & not Completed^1,3
		'000					%	£m	£m	£m
Clarges Mayfair⁴		103	34		Q4 2017		100	308	72	259
Mixed Use		103	34					308	72	259
The Hempel Phase 1		25	15		Q4 2016		100	16	1	13
The Hempel Phase 2		32	19		Q4 2016		100	55	6	14
Aldgate Place Phase 1		221	154		Completed		50	7	9	-
Resi-led		278	188					78	16	27
Total Committed Residential		381	222					386	88	286
Data includes Group's share of properties in Joint Ventures and Funds (except area which is shown at 100%)
¹ Excludes completed sales of £93m
² From 1 October 2016. Cost to complete excludes notional interest as interest is capitalised individually on each development at our capitalisation rate
³At agreed sales price
⁴ Includes 9,500 sq ft of affordable housing (11 units)

Class	Description	Use for all/any of the following purposes
A1	Shops	Shops, retail warehouses, hairdressers, undertakers, travel and ticket agencies, post offices, pet shops, sandwich bars, showrooms, domestic hire shops dry cleaners, funeral directors and internet cafes.
A2	Financial and professional services	Financial services such as banks and building societies, professional services (other than health and medical services) and including estate and employment agencies. It does not include betting offices or pay day loan shops - these are now classed as "sui generis" uses.
A3	Restaurants and cafes	For the sale of food and drink for consumption on the premises - restaurants, snack bars and cafes.
D2	Assembly and leisure	Cinemas, music and concert halls, bingo and dance halls (but not night clubs), swimming baths, skating rinks, gymnasiums or areas for indoor or outdoor sports and recreations.