Robert John Transport Presentation

1
INTERIM RESULTS
1 JULY 1999 to 31 DECEMBER 1999
2
FINANCIAL HIGHLIGHTS
3
SUMMARY CONSOLIDATED PROFIT LOSS
4
SUMMARY CONSOLIDATED BALANCE SHEET
5
PROPERTY PORTFOLIO
6
INVESTMENT PROPERTIES - Valuation By Property
7
NET DEBT
8
CAPITAL EXPENDITURE
9
SECURITISATION
10
OVERVIEW - Progress Since 1 July 1999
Completion of Construction of Three Buildings
Acquisition of Two Buildings
High Level of Leasing Activity
Retail
Construction
Rent Review
11
Completion of Construction of Three Buildings
September

• Practical completion on 200,000 sq. ft.
  extension of existing CSFB headquarters
  achieved

December

• Practical completion reached on 270,000 sq. ft.
  building at 20 Columbus Courtyard

• Practical completion reached on 33 Canada
  Square, the 560,000 sq. ft. UK headquarters
  of Citibank

All three projects on time and under budget
12
Acquisition of Two Buildings
September
Acquisition of 1 Westferry Circus, a 217,000 sq.
ft. building, on sale and partial leaseback
basis
December
Acquisition of Citibank interest in their 560,000
sq. ft. headquarters building at 33 Canada Square
13
High Level of Leasing Activity
Agreement signed with Morgan Stanley for lease
of 175,000 sq. ft. building at 15 Westferry
Circus
Leasing of additional 317,000 sq. ft. by
Citigroup in DS5, bringing total Citigroup
occupation at Canary Wharf to nearly 1,500,000
sq. ft.
Agreement signed with Morgan Stanley for lease of
50th Floor in One Canada Square
Leasing of floors at One Canada Square to KPMG
(38), Bear Stearns (44) , and Bank of New York
(43 47)
All existing space at Canary Wharf now fully let
14
RETAIL Canada Square
65,000 sq. ft. fashion-led mall to open 28th
March 2000
Occupants include
HSBC, Boots, HMV, Moss Bros, Gap,
French Connection, Mont Blanc,
Accessorize, Oasis, Toni Guy,
First Sport, Active Venture, Monsoon,
Cafe Fresco and Birley Sandwiches
All 27 units fully pre-let
15
RETAIL - Next Phase
Next phase of retail and leisure facilities to
proceed with construction of 180,000 sq. ft.
Churchill Place facing onto Canada Square Park
Development to contain department store, food
store, premier health club, large retail store
and two roof top restaurants
Detailed discussions at advanced stage with
potential occupants of all units
Retail area to link with new Canada Place
fashion mall and Jubilee Line Station
16
RETAIL - Next Phase
Completion of Canada Square Mall to bring total
retail square footage at Canary Wharf to 425,000
sq. ft.
Jubilee Park development to accommodate
additional 85,000 sq. ft. of retail bringing
total to over 500,000 sq. ft.
Total retail capacity to approach regional mall
status with ample parking and superior public
transport links
17
CONSTRUCTION
18
CONSTRUCTION
1,100,000 sq. ft. HSBC headquarters building
reaches 18th floor
1,200,000 sq. ft. Citigroup building reaches
18th floor
Construction of 175,000 sq. ft. additional
building for Morgan Stanley at 15 West Ferry
Circus commences
19
CONSTRUCTION
Construction of new 180,000 sq.ft retail and
leisure facility
Construction of 5 Canada Square, a 530,000 sq.
ft. building to proceed on speculative basis
First phase of Riverside development nearing
completion
20
LEASING RENT REVIEW
Canary Wharf Group has granted over 2 million
sq. ft. of new long term leases on the Estate in
the 12 months to end February 2000
700,000 sq. ft. as sale and leaseback
transactions. The balance of 1.3 million sq.
ft includes three of the four largest
transactions in Central London
Canary Wharf has secured one third (by area) of
all deals over 100,000 sq. ft. in 1999 and 100
of all deals over 200,000 sq. ft. in the same
period
Recorded demand is higher than ever before.
Including strong pressure from our own dynamic
tenant base to expand
21
LEASING RENT REVIEW
There has been a noticeable increase in larger
requirements but a frustrating lack of
commitment anywhere.
2,200 deals in Central London last year only
15 over 100,000 sq. ft.
Rental growth strongest in West End and Canary
Wharf. Top rents in City stabilised.
Rent review progress reflecting strong rental
performance in last three years.
Market conditions support Canary Wharf Groups
strategy on new development.
22
CENTRAL LONDON OFFICE MARKET BALANCE - 1984-1999
Source Knight Frank Research
23
CENTRAL LONDON OFFICE MARKET - 1999
Source Knight Frank Research
24
CENTRAL LONDON OFFICE MARKET
Development Take-up, 1984-1999
Source Knight Frank Research
25
PRIME HEADLINE RENTAL VALUES - end 1999
Docklands
Holborn Fleet Street
Northern City Fringe
Paddington
Victoria
Source Knight Frank Research