3 september 2019 instinctif property tour - rdi reit · 3 september 2019 instinctif property tour...

3 September 2019

Instinctif property tour

rdireit.com

3 September 2019 | Instinctif property tour

Important noticeThis document has been prepared by and is the sole responsibility of the directors (the “Directors”) of RDI REIT P.L.C. (the “Company”), and has been prepared solely in connection with a presentation to be held to provide a market update on the Company.

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those expressed or implied by the forward looking statements. Forward looking statements contained in this presentation regarding past trends or activities should not be taken as a representation that such trends or activities will continue in the future. Except as required by applicable law or regulation, the Company (nor its Directors, officers, employees, agents, brokers, financial advisers or representatives) undertakes any obligation to update or revise any forward looking statements, whether as a result of new information, future events or otherwise. You should not rely on forward looking statements, which speak only as of the date of this presentation.

No representations or warranties are or will be made by the Directors, the Company nor any adviser or person acting on their behalf as to the accuracy or completeness of the information or opinions communicated in this presentation. None of the Directors, the Company nor any adviser or person acting on their behalf, shall (without prejudice to any liability for fraudulent misrepresentation) have any liability whatsoever for loss however arising, directly or indirectly, from the use of information or opinions communicated in relation to this presentation.

Disclaimer

3 September 2019 | Instinctif property tour1

Agenda

Introduction and strategic priorities

Stephen Oakenfull Deputy Chief Executive Officer

Conclusion

Stephen Oakenfull Deputy Chief Executive Officer

Q&A

Portfolio overview

Adrian Horsburgh Property Director

Financial

Donald Grant Chief Financial Officer


Introduction

• Robust operational metrics despite headwinds• Recent acquisitions significantly outperforming

pre-existing portfolio• Volatile political and economic backdrop• Challenging retail landscape• A more decisive approach to strategic priorities

required

Lower leverage capital structure

Continued reduction in retail

More focused capital allocation

Accelerate strategic priorities


More focused capital allocationIncluding further material reduction in retail

Aviva (£177.2m market value)• 100% retail• Highly leveraged• Negative reversion and outlook

Germany (£244.2m market value)• 100% retail• Above average leverage• Low growth outlook

Mature (£88.2m market value)• £29.0m retail and £59.2m

regional offices• Weaker demographics• Mature, secondary assets

Retail

21%

Hotels

Offices

Industrial & distribution

23%

43%13%

UK (28%)

Germany (15%)

Retail parks & other

15%London servicedoffices

10%London offices

Hotels

Offices

33%

22%20%

62% in Greater London

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Industrial & distribution

£1.6bn market value Strategic disposals £1.1bn market value Following strategic disposals and assuming no re-investment

• 5.9% Topped up NIY• 6.2% Reversionary yield

• 5.5% Topped up NIY• 5.9% Reversionary yield• 100% UK focused • 79% in Greater London

and South East


nil1.4% 0.8% Debenhams (% of gross rental income)

6.8% Annualised EPS as a % of NAV (UK REIT ave. 4.0%)6.3%

Indicative annualised underlying earnings per share (p)

Delivering sustainable income and dividend returnsStrategic disposals to result in material reduction in leverage and retail exposure

LTV

48.5% LTV (UK REIT ave. 29%)

c.22%43% Retail exposure

(1) Assumes interest saving of 3.5% on debt repaid.(2) Indicative underlying EPS and leverage, assuming share buy-back at £1.50.

Strategic disposals

HY19 (annualised)

13.9

30%

40%(2)

35%(2)(1.9)

Aviva

12.0

Group ex Aviva

(2.1)

Germany

(1.2)

Matureassets

1.3

Interest costreduction(1)

0.5

Overheadreduction

10.5

c.12.0(2)

c.11.2(2)

Base andupside

36%

45.4% 30% – 40%

5.5% – 5.9%

29%

24%

46%

37%39%

32%

24%

43%41%

27%30%

38%

30%

23%

37%

34%34%

42%

20% 21%

14%

22%

36%

33%

28%

40%

31%

47% 47%

41%

56%

51%

Typically higher retail exposure and/orhigher leverage

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180

160

140

120

100

80

60

40

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LTV (next)

29%

24%

46%

37%39%

32%

24%

43%41%

27%30%

38%

30%

23%

37%

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LTV (next)


Peer group ratings – sector exposure and leverage

P/NAV and LTV

Source: Factset, Peel Hunt, Stifel, Panmure Gordon – data reflects analysts' estimates of the next NAV and LTV as at 28 August 2019.

Current share price 101.4 pence(2)

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30.7

41.1

109.3

33.2

142.5

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Sum of the parts analysis

EPRA NAV per share (pence)(1)

As at 28 February 2019 (excl. Aviva)

81% weighted toward Greater London & South

Sectors benefiting from positive structural change

Subject to disposal process

(1) NAV per share contribution based on the Group's economic share of the market value of the assets less the associated debt or pro-rata debt secured against the assets.(2) Share price as at 29 August 2019.(3) UK mature assets include £29.0m of retail assets and £59.2m of regional offices.


UK Hotels

• Trusted brands• Simple, efficient operating model • Higher margins with lower volatility • Lower capex requirements • Market leading operator with aligned interests

RBH managed hotels (incl. acquired IHL hotels) 90% by value in Greater London, Gatwick and Edinburgh

£81.3 (+2.3%)Revenue per available room

£95.5 (+1.4%)Average room rate

83.9% (+60bps)Weighted average occupancy

Other

GatwickIntegrally linked to the North terminal

EdinburghRDI portfolio growth driver over last 2 years

Greater London Occupancy has remained consistently high since acquisition

63%

8%10%

19%


Germany

• Strategic decision to exit Germany• Strong investment market but structural changes

in retail a global issue• Supports reduction in retail and leverage• Simplifies the corporate structure and reduces

FX and tax risk

Riskfree rate

Office

3.1% 3.1%3.9% 4.2% 4.2%

2.6%

-0.3%

Primehigh street

Retailwarehouse

park

Shoppingcentre

Logisticswarehouse

Multi-familyhouse

3.8

8%

Range min/max, last 10 years

Current (Q2 2019)

Mean, last 10 years

Forecast: Q2 2020

7%

6%

5%

4%

3%

2%

1%

0%

-1%

-2%

Source: Savills

Prime yields


Owned model

Leased model (c.20% EBITDA margin)

London serviced offices

• Market leading operator with aligned interest• Service-led approach, consistent 5-star Google ratings• Quality and personalised service is a key differentiator• No co-working, lower density, higher amenity space

and good sound insulation• Strong property fundamentals• Demand remains strong

London serviced offices Exposure to Crossrail and Southbank markets

£69.0 (+0.9%) EBITDA per sqft

94.5% (+230bps) Average desk occupancy

63.4% EBITDA as % of total revenue

30 months Average length of stay

£685 (+0.1%) Average desk rate (licence fee only)

£826 (+0.9%) Total revenue per available desk

Performance relative to 31 August 2018.


London exposure

• Despite Brexit, anticipated to retain status as a leading global city

• Unique geographical position • Largest cluster of financial and professional

services in Europe• 8.8m people rising to 10m by 2040• GDP per capita 35% higher than rest of UK• Global leader in talent

City (metro area) Country Category

Ranking Change 2018-20282008 2018 2028

New York US Resilient 1 1 1 0 –Tokyo Japan Resilient 2 2 2 0 –London UK Resilient 3 3 3 0 –Los Angeles US Resilient 4 4 4 0 –Shanghai China Emerging resilient 23 11 5 6

Chicago US Resilient 5 5 6 -1

Beijing China Emerging resilient 24 14 7 7

Paris France Resilient 6 6 8 -2

Shenzhen China Emerging resilient 20 13 9 4

Dallas US Resilient 10 8 10 -2

Source: Savills.


London Southbank officesDevelopment value backed by major regeneration area

Marble Arch

Liverpool StreetMoorgate

Farringdon

Bethnal Green

Shoreditch High Street

Aldgate

Tower Hill

Fenchurch StreetMonument

Bank

Mansion House

St Paul’s

Blackfriars

Southwark

Borough

Waterloo

Lambeth North

Westminster

St James’s Park

Charing Cross

Piccadilly Circus

Green Park

Hyde Park Corner

Leicester Square

Covent Garden

Goodge Street

Bond Street

Warren Street

Oxford Circus

Regent’s Park

Great Portland Street

Euston Square

Euston

Tottenham Court Road

Chancery LaneHolborn

Temple

Embankment

Barbican

London Bridge

Bermondsey

Aldgate East

Whitechapel

Cannon Street

127 Charing Cross Road

Canbury Business Park

Liverpool Street

St Paul’s

Monument

Holiday Inn Express

Waterloo

Newington HouseMarket value: >£20mOwnership: 100%Net rental income: £1.2mGross ERV: £1.5mWAULT: 3.6 years

Coburg House, Newington CausewayMarket value: >£10mOwnership: 100%Net rental income: £0.5mGross ERV: £0.7mWAULT: 4.8 years


London offices: Charing Cross Road

• Valuation +38% since acquisition in 2016• New TCR Crossrail Station bringing additional

1.5m people within 45 minute travel time• Passenger numbers anticipated to increase

30% to 70m per year• 380,000 sqft of pre-lets within area achieving

rents of c.£90 per sqft• Planning permission granted to increase

lettable area by 47%


Distribution and industrial

Camino Park, Crawley

Southwood Business Park, Farnborough

Investing in structural change

• Major rent review completed post period end (+£0.9m; +55%)

• Further £0.4m of rent subject to review and expected to deliver growth of >60%

• +76.2% (+£32m) in value since acquisition

• +3.6% (+£1.0m) in value since acquisition in September 2018

• Post period end: • Refurbishment of last vacant

unit complete • The completion of recent

regears, rent reviews and new leases has secured an additional £0.2m of rental income

• Structural changes in consumer behaviour driving demand

• Take up of space in H1 2019 of 16m sqft, 28% above long-term average

• UK national supply of c.34m sqft – approximately one year's supply

• London and South East vacancy at 3.8%

• UK-wide rental growth has averaged 3.8% over last five years

Source: Savills.


Distribution and industrial: Bicester


UK retail parks

Development of "drive-thru" units

Priory Park, MertonMore resilient to structural change

• Costa "drive-thru" pods• £2.0m development costs• 12.7% yield on cost

• Strong leasing activity• Re-let units subject to CVA• ALDI; 20 year term, index

linked• The Gym; 15 year term, fixed

uplifts• Net income +£70k

• CVA challenges but more resilient to structural change• Restrictive planning regime• Typically good access and free

parking• Better suited to 'click & collect'

• Portfolio 74% by value in London and the South East

• Approaching full occupancy• Six CVAs, all re-let• Annualised net rent +3.5%

since acquisition


UK shopping centres

• Reduced to two assets, 6% of portfolio (post Aviva)

• West Orchards, Coventry part of short-term disposal plans

• St Georges, Harrow• North London Suburb with good transport links

• Footfall +5% YOY

• Vue cinema terms agreed for 20 year lease extension

• In advanced discussions to upsize key anchor tenant

• One of the strongest performing Wilko stores in the UK

• Fully occupied and stable


Aviva shopping centre portfolio

• Facility is non-recourse to Group• Standstill Agreement reached on 23 April 2019• Income and net assets derecognised from

Standstill Agreement date• Consensual sales process underway• No equity expected to be realised on sale

28 February 2019

Underlying earnings

(6 months) (£m)

Underlying earnings

(6 months) (p)

EPRA net asset

value (£m)

EPRA net asset value

per share (p)

Loan to value

(%)

Cost of debt

(%)

UK Retail % of portfolio market value

(%)

As reported 26.4 6.94 779.7 204.4 48.5 3.5 28.2

Aviva portfolio (3.7) (0.97) (54.1) (14.2) (3.1) (0.4) (8.9)

Excluding Aviva portfolio 22.7 5.97 725.6 190.2 45.4 3.1 19.3

Note: Aviva shopping centre portfolio includes four UK shopping centres: Grand Arcade, Wigan; Birchwood, Warrington; Weston Favell, Northampton and Byron Place, Seaham.


2019 dividend position

• UK REIT's minimum distribution requirement• 90% of "UK property rental income"

• UK property rental income includes Aviva financed shopping centre income to 23 April 2019, but;

• Excludes German sourced income and 'other' income

• H1 19 dividend of 4.0p• Minimum H2 19 dividend of c.6.0p to support

REIT requirement• Covered by underlying earnings excluding

Aviva income

28 February 2019

Underlying earnings

(6 months) (p)

Underlying earnings

(annualised) (p)

Underlying earnings

(unrestricted)(1)

(p)

UK (excl. Aviva) 4.92 9.84 9.84

Aviva portfolio 0.97 1.29(2) n/a

UK property rental income 5.89 11.13 9.84

Germany 1.05 2.10 2.10

Group 6.94 13.23 11.94

UK REIT minimum distribution requirement

5.3 10.0

(1) Unrestricted i.e. excluding Aviva portfolio earnings restricted within Aviva financing facility.

(2) Income estimate to 23 April 2019.

Minimum required distribution is comfortably met


• German disposal• Subscale following disposal of Supermarket portfolio in

December 2017

• Core cost base required to maintain platform no longer meets the Group's cost ratio targets

• Overheads run at c.10% v c.7% in the UK portfolio

• Tax efficiencies being eroded by new and proposed legislation

• Removes FX risk and volatility

• UK Shopping centres • Structural changes mean operating with higher rates of

vacancy and more tenant-friendly lease arrangements

• Greater landlord voids and caps meaning less cost efficient to run

• Offshore footprint• New HMRC legislation brings non-resident landlords within

charge of UK Tax from April 2019

• As a UK REIT we remain tax efficient, but change eliminates most benefits of offshore holding structures

• In the medium term we expect this change to deliver cost efficiencies as these structures are bought on shore

• Resultant headcount reduction and associated savings

Cost efficiencies and streamlining the portfolio

Medium-term target retained: EPRA cost ratio <15%


Outlook and conclusionCommitted to deliver superior, sustainable and growing income

Focused capital allocation to preferred sectors

Accelerate reduction in leverage targeting

reduced LTV range of 30% – 40%

Covered dividend policy maintained

Lean and improving cost structure

More aggressive reduction in retail

Active asset management and market leading

operational partners

Accelerated strategic priorities aimed at maintaining sector leading income metrics through the cycle


A Appendices


Weighted % of Annualised EPRA average EPRA portfolio by Market gross rental topped Reversionary lease length occupancy % As at 28 February 2019 market value Properties Area (m2) value (£m) income (£m) ERV (£m) EPRA NIY up yield yield (years) (by ERV) Indexed

UK Commercial Offices – Serviced 10 4 15,473 163.4 10.6 10.7 5.8 5.8 5.8 n/a n/a —Offices – Greater London 7 4 14,938 113.9 5.3 6.1 4.1 4.2 4.9 3.2 99.5 12.8Offices – Regions 3 9 28,091 59.2 4.4 4.8 6.4 6.5 7.7 4.6 89.6 22.0UK Offices 20 17 58,502 336.5 20.3 21.6 5.3 5.4 5.9 3.8 95.1 8.1Distribution & Industrial 11 5 109,066 172.8 8.4 10.0 4.5 4.5 5.4 3.4 98.2 3.6Automotive 3 35 17,358 43.7 2.9 2.3 6.3 6.3 4.9 10.9 100.0 100.0UK Commercial 34 57 184,926 553.0 31.6 33.9 5.1 5.2 5.6 4.6 96.9 15.4UK Retail Shopping centres – Aviva 11 4 117,736 177.2 18.1 14.8 8.0 8.3 7.6 8.7 94.5 36.1Shopping centres – Other 6 2 40,971 91.9 8.2 7.6 7.1 7.3 7.5 4.5 98.6 9.3Shopping Centres 17 6 158,707 269.1 26.3 22.4 7.7 7.9 7.6 7.4 95.9 27.7Retail Parks 11 6 60,784 181.6 12.3 11.8 5.5 6.3 6.1 7.4 96.5 11.1Other Retail — 1 5,834 4.8 0.6 0.4 6.4 9.8 8.4 3.6 79.7 —UK Retail 28 13 225,325 455.5 39.2 34.6 6.8 7.3 7.0 7.3 95.9 22.1UK Hotels Greater London 12 7 29,426 186.7 12.3 12.3 5.5 5.5 6.2 n/a n/a —Regional 8 6 31,392 129.9 11.2 11.2 6.4 6.4 7.3 n/a n/a 0.9RBH managed portfolio 20 13 60,818 316.6 23.5 23.5 5.9 5.9 6.6 n/a n/a 0.4Travelodge 3 5 16,573 48.3 2.4 2.6 4.7 4.7 5.0 17.7 100.0 95.3UK Hotels 23 18 77,391 364.9 25.9 26.1 5.7 5.7 6.4 17.7 100.0 9.3Total UK 85 88 487,642 1,373.4 96.7 94.6 5.8 6.0 6.3 6.8 96.5 16.5Europe German Shopping Centres 11 3 45,946 182.0 10.2 9.9 4.6 4.7 5.1 5.1 99.2 95.0German Retail Parks and Other 4 10 48,331 62.2 4.3 4.3 5.8 5.8 6.5 5.1 98.3 94.7Total Europe 15 13 94,277 244.2 14.5 14.2 4.9 5.0 5.4 5.1 98.9 94.9Total 100 101 581,919 1,617.6 111.2 108.8 5.7 5.9 6.2 6.5 96.9 26.7Ownership breakdown: Wholly owned (at 100%) 64 70 446,854 1,039.0 70.8 68.0 5.6 5.9 6.1 6.5 96.7 34.4Assets with minority holdings (accounted for at 100%) 34 27 121,611 553.9 38.6 39.0 5.8 5.8 6.3 7.5 98.5 11.4Held in joint ventures (proportionate %) 2 4 13,454 24.7 1.8 1.8 6.5 6.5 6.8 5.0 99.9 51.8Total (excluding Aviva shopping centres) 97 464,183 1,440.4 93.1 94.0 5.4 5.6 6.0 5.8 97.5 24.9

Portfolio analysis

NOTE: WAULT and occupancy excludes RBH managed hotels portfolio and serviced office portfolio. Relevant operational metrics disclosed separately.


Income expiry profileEarliest of lease break/expiry

Annualised Earliest of lease break/expiry profile gross rental FY19(1) FY20 FY21 FY22 FY23 FY24 FY25 FY26 FY27 FY28+As at 28 February 2019 income (£m) (£m) (£m) (£m) (£m) (£m) (£m) (£m) (£m) (£m)

UK Commercial 21.5 1.2 3.4 3.2 2.0 4.0 2.0 0.5 1.0 0.3 3.9

UK Retail 39.2 2.4 3.1 2.4 6.3 2.7 1.8 3.1 1.6 3.9 11.9

UK Hotels 2.4 — — — — — — — — — 2.4

Total UK 63.1 3.6 6.5 5.6 8.3 6.7 3.8 3.6 2.6 4.2 18.2Germany 14.5 0.2 2.6 0.9 1.1 2.6 2.1 0.8 0.6 0.8 2.8

Total (excl. RBH managed hotels and London Serviced Offices) 77.6 3.8 9.1 6.5 9.4 9.3 5.9 4.4 3.2 5.0 21.0RBH managed hotels 23.5

London Serviced Offices(2) 10.1

Total 111.2

(1) Includes £2.0 million recurring commercialisation and car park income.(2) Excluding leases to gym operators.


Top 20 properties (by market value)Top 20 properties make up >60% of total portfolio

% of EPRA Weighted EPRA portfolio by Ownership topped Reversionary average occupancy % As at 28 February 2019 market value % Area (m2) EPRA NIY up yield yield lease length (by ERV) Indexed

Berlin, Schloss-Strassen Center 4.9 100.0 18,588 4.1 4.4 4.9 5.7 98.2 91.2Crawley, Camino Park Distribution Centre 4.6 100.0 33,171 3.6 3.6 5.1 4.1 100.0 10.5Northampton, Weston Favell 4.5 100.0 30,802 7.7 7.9 7.6 7.0 96.1 53.8Hamburg, Bahnhof Altona 4.4 100.0 15,042 4.9 4.9 5.3 3.5 100.0 97.9London, Harrow, St George's 4.2 100.0 20,332 6.2 6.2 6.2 2.9 100.0 14.8London, Monument, St Dunstan's 4.1 80.0 5,428 5.7 5.7 5.7 n/a n/a —Wigan, Grand Arcade 3.7 100.0 41,481 9.0 9.4 6.8 7.9 94.1 36.9London, Charing Cross Road 3.6 100.0 3,716 3.2 3.2 3.9 3.9 100.0 33.7London, Watford, The Arches Retail Park 3.1 100.0 11,599 5.7 6.0 5.3 8.5 100.0 —

Bridgwater, Express Park Distribution Centre 3.0 100.0 47,207 5.6 5.6 6.0 2.7 100.0 —

Top 10 40.1 London, Southwark Holiday Inn Express 3.0 82.5 3,936 5.6 5.6 6.1 n/a n/a —Banbury, Banbury Cross Retail Park 2.9 100.0 16,631 5.5 6.3 6.8 6.3 88.2 5.0Edinburgh, DoubleTree Hilton 2.7 82.5 7,250 6.2 6.2 6.9 n/a n/a 3.1London, Merton, Priory Retail Park 2.3 100.0 6,276 3.6 5.4 5.1 6.1 100.0 19.0London, Liverpool Street, New Broad Street 2.1 80.0 3,291 5.2 5.2 5.2 n/a n/a —London, St Pauls, Little Britain 2.0 80.0 3,429 5.4 5.4 5.7 n/a n/a —London, Earl's Court Holiday Inn Express 2.0 82.5 2,781 5.8 5.8 6.3 n/a n/a —London, Limehouse Holiday Inn Express 2.0 82.5 5,747 5.4 5.4 5.9 n/a n/a —Ingolstadt, City Arcaden 1.9 100.0 12,316 5.0 5.0 5.1 7.7 100.0 97.5

London, Waterloo, Boundary Row 1.9 80.0 3,326 7.1 7.1 7.1 n/a n/a —

Top 20 62.9

Aviva financed UK shopping centres


Rent subject to upcoming rent reviews (incl. serviced income)

Annualised Rent roll subject to rent gross rental FY2019 FY2020 FY2021 FY2022 FY2023 review as at 28 February 2019 income (£m) (%) (%) (%) (%) (%)

UK Commercial Offices – Serviced(1) 10.6 95.3 95.3 95.3 96.6 95.3Offices – Greater London 5.3 — 9.8 8.8 24.8 3.5Offices – Regions 4.4 48.8 8.9 7.3 22.5 23.2UK Offices 20.3 10.6 4.5 3.9 12.0 5.9Distribution & Industrial 8.4 13.6 9.4 23.4 20.7 —Automotive 2.9 43.2 25.7 8.0 — 22.5

UK Commercial 31.6 13.2 7.7 9.4 13.2 5.9UK Retail UK Shopping Centres 26.3 2.7 6.9 6.1 33.1 4.5UK Retail Parks 12.3 14.3 12.6 25.5 9.1 17.6UK Other Retail 0.6 — — — 35.5 —

UK Retail 39.2 6.3 8.6 12.1 25.6 8.6UK Hotels RBH managed portfolio(1) 23.5 100.0 100.0 100.0 100.0 100.0Travelodge 2.4 57.5 — 10.3 28.8 —

UK Hotels 25.9 100.0 100.0 100.0 100.0 100.0Total UK 96.7 32.5 30.2 32.5 39.6 29.6Germany Shopping Centres 10.2 18.3 14.8 14.6 13.9 4.6Retail Parks and Other 4.3 7.7 6.9 6.3 5.7 4.9

Germany 14.5 15.2 12.5 12.1 11.5 4.7Total 111.2 30.2 27.9 29.9 36.0 26.4

(1) Includes room rates, licence fee and adjacent services income subject to market changes each year.


Debt facilities and covenantsAs at 28 February 2019

Lender last Lender last Principal debt Cost of ICR / DSC reported LTV reported Principal debt (proportionate) debt Covenant ICR/DSC(1) Covenant LTV(1)

Lender Currency £m £m Maturity (%) (%) (%) (%) (%)

AUK HSBC, RBS, Barclays GBP 250 250 Jan-2024 3.3 175 369 70 49AUK facility 250 250 Serviced Office Portfolio Deutsche Bank GBP 48.9 48.9 Aug-2022 3.2 170 292 80 61Serviced Office Portfolio Barclays GBP 23.4 23.4 Dec-2019 2.9 387 597 55 4326 Esplanade Lloyds Bank GBP 16.8 8.4 Dec-2022 6.1 n/a n/a 75 74UK Offices 89.1 80.7 Kwik Fit portfolio Aviva GBP 9.6 9.6 Jun-2029 6.4 n/a n/a n/a n/aUK Automotive 9.6 9.6 Aviva financed UK Shopping Centres Aviva GBP 144.7 144.7 Apr-2042 5.5 120 159 85 84St George’s, Harrow Berlin Hyp GBP 37.0 37.0 Apr-2021 2.9 200 285 70 52West Orchards, Coventry Santander GBP 11.0 11.0 Nov-2021 4.2 200 446 50 37UK Retail 192.7 192.7 RBH Hotels portfolio Aareal Bank GBP 113.4 113.4 Nov-2021 3.1 175 399 67.5 53.7IHL Portfolio Santander GBP 48.3 48.3 Jul 2020-Dec 2021 3.3 150-350 315-564 57.5-65 39-50UK Hotels 161.7 161.7 Europe Bahnhof Altona, Hamburg HSH Nordbank Euro 38.6 38.6 Feb-2024 2.7 250 329 70 62Schloss-Strassen Center, Berlin HSH Nordbank Euro 53.2 53.2 Mar-2021 1.9 250 278 65 61Ludwigsstrasse, Ingolstadt Postbank Euro 16.6 16.6 Jun-2023 1.3 150 379 65 53German shopping centres 108.4 108.4 Premium Portfolio Munchener Euro 9.4 9.4 Feb-2020 1.3 150 379 n/a n/aOBI Portfolio BayernLB Euro 11.6 11.6 Dec-2022 1.6 160 577 n/a n/aBremen/Lindenhoff BayernLB Euro 3.0 3.0 Oct-2019 2.0 10 12 57.5 n/aWaldkraiburg BayernLB Euro 4.1 2.1 Jun-2024 1.7 300 660 53 49Kaiserslautern BayernLB Euro 3.2 1.7 Jun-2024 1.7 200 653 58 58Hückelhoven BayernLB Euro 5.7 3.0 Jun-2024 1.7 200 530 62 59German supermarkets and retail parks 37.0 30.8 Total 848.5 833.9

(1) Relevant financial covenants as last reported to lenders. LTV metrics may vary from those calculated with reference to the Group's reported market values.


Reconciliation of underlying earningsSix months ended 28 February 2019

Company Underlying IFRS proportionately consolidated EPRA adjustments specific adjustments earnings proportionately Group JVs Total Group JVs consolidated Group JVs consolidated

Revenue 57.1 0.9 58.0 — — 58.0 — — 58.0 Rental income 55.8 0.9 56.7 — — 56.7 — — 56.7Rental expense (6.2) — (6.2) — — (6.2) — — (6.2)Net rental income 49.6 0.9 50.5 — — 50.5 — — 50.5Other income 1.3 — 1.3 — — 1.3 — — 1.3Administrative costs and other fees (7.3) 0.1 (7.2) — — (7.2) — — (7.2)Net operating income 43.6 1.0 44.6 — — 44.6 — — 44.6 Loss on revaluation of investment property (30.4) (0.2) (30.6) 30.4 0.2 — — — — Loss on disposal of investment property (0.2) — (0.2) 0.2 — — — — — Other income and expense (0.2) — (0.2) 0.2 — — — — — Foreign exchange loss (0.2) — (0.2) — — (0.2) 0.2 — — Profit from operations 12.6 0.8 13.4 30.8 0.2 44.4 0.2 — 44.6 Finance income 0.1 — 0.1 0.1 — 0.2 — — 0.2 Joint Venture interest income/(expense) 0.2 (0.2) — — — — — — — Finance expense (16.2) (0.3) (16.5) — — (16.5) 0.4 — (16.1)Change in fair value of derivative financial instruments (2.2) 0.1 (2.1) 2.2 (0.1) — — — — (5.5) 0.4 (5.1) 33.1 0.1 28.1 0.6 — 28.7 Net impairment reversal/(impairment) of joint ventures and associate interests 0.1 (0.1) — (0.2) — (0.2) — — (0.2)Share of post-tax (loss)/profit from joint ventures 0.2 (0.2) — 0.1 (0.1) — — — — Share of post-tax profit from associate 0.5 — 0.5 — — 0.5 — — 0.5 Profit before tax (4.7) 0.1 (4.6) 33.0 — 28.4 0.6 — 29.0 Taxation 1.4 (0.1) 1.3 (1.4) — (0.1) — — (0.1)Profit for the period (3.3) — (3.3) 31.6 — 28.3 0.6 — 28.9 Profit attributable to:Non-controlling interests (1.6) — (1.6) (0.9) — (2.5) — — (2.5)Profit attributable to equity holders (4.9) — (4.9) 30.7 — 25.8 0.6 — 26.4 Weighted average number of shares (millions) 380.1 380.1 380.1 380.1Diluted weighted average number of shares (millions) 381.4 381.4 381.4 381.4 Earnings per share (pence) (1.29) (1.29) 6.77 6.94

EPRA earnings proportionately


Reconciliation of non-controlling interestSix months ended 28 February 2019

Europe (several London individually Serviced Offices IHL RHHL immaterial NCI) Total NCI

Principal place of business United Kingdom United Kingdom United Kingdom

Country of incorporation Isle of Man BVI BVI Germany

NCI % 20.0% 25.9% 17.52% Various

Summarised statement of comprehensive income £m £m £m £m £m

Rental income 1.6 1.1 1.2 0.1 4.0 Rental expense (0.6) (0.1) — — (0.7) Net rental income 1.0 1.0 1.2 0.1 3.3 Other income 0.2 — — — 0.2 Administrative expenses (0.2) — — — (0.2) Net operating income 1.0 1.0 1.2 0.1 3.3 Net finance costs (0.2) (0.2) (0.3) — (0.7) Profit before tax 0.8 0.8 0.9 0.1 2.6 Tax — (0.1) — — (0.1)Profit before and after tax 0.8 0.7 0.9 0.1 2.5 Shareholder loan interest (eliminates at RDI Group level) — — — — —Underlying earnings 0.8 0.7 0.9 0.1 2.5 Change in fair value of derivatives — — — — —Gain/(loss) on revaluation of investment property — (0.8) (0.1) — (0.9)Gain on disposal of subsidiaries — — — — —Foreign exchange loss — — — — —Deferred tax — — — — —Shareholder loan interest (eliminates at RDI Group level) — — — — —Non-underlying earnings — (0.8) (0.1) — (0.9) Total earnings 0.8 (0.1) 0.8 0.1 1.6


London serviced office Income StatementSix months ended 28 February 2019

London Serviced Offices Rest of portfolio Group total Continuing operations £m £m £m

Revenue 8.8 48.3 57.1 Rental income 7.9 47.9 55.8 Rental expense (2.9) (3.3) (6.2)Net rental income 5.0 44.6 49.6 Other income 0.9 0.4 1.3 Administrative costs and other fees (0.7) (6.6) (7.3)Net operating income(1) 5.2 38.4 43.6 Gain on revaluation of investment property — (30.4) (30.4)Other gains and losses from operations — (0.6) (0.6)Profit from operations 5.2 7.4 12.6 Net finance expense (1.2) (14.7) (15.9)Change in fair value of derivative financial instruments (0.2) (2.0) (2.2) 3.8 (9.3) (5.5)Equity accounted profits — 0.8 0.8 Profit/(loss) before tax 3.8 (8.5) (4.7)Taxation — 1.4 1.4 Profit/(loss) for the period 3.8 (7.1) (3.3)Profit/(loss) attributable to: Equity holders of the Parent 3.0 (7.9) (4.9)Non-controlling interests 0.8 0.8 1.6 3.8 (7.1) (3.3)

(1) Net operating income of Serviced Office Portfolio equates to EBITDA of the trading business.


Aviva financed UK shopping centre portfolio Income StatementSix months ended 28 February 2019

Aviva financed UK Shopping Centre portfolio Rest of portfolio Group total £m £m £m

Revenue 9.0 48.1 57.1 Rental income 9.0 46.8 55.8 Rental expense (1.1) (5.0) (6.2)Net rental income 7.9 41.7 49.6 Other income — 1.3 1.3 Administrative costs and other fees — (7.3) (7.3)Net operating income(1) 7.9 35.7 43.6 Gain on revaluation of investment property (17.9) (12.5) (30.4)Other gains and losses from operations — (0.6) (0.6)(Loss)/profit from operations (10.0) 22.6 12.6 Underlying net finance expense (4.2) (11.4) (15.6)Other net finance expense (non-cash) (0.3) — (0.3)Change in fair value of derivative financial instruments — (2.2) (2.2) (14.5) 9.0 (5.5)Equity accounted profits — 0.8 0.8 (Loss)/profit before tax (14.5) 9.8 (4.7)Taxation — 1.4 1.4 (Loss)/profit for the period (14.5) 11.2 (3.3)(Loss)/profit attributable to:Equity holders of the Parent (14.5) 9.6 (4.9)Non-controlling interests — 1.6 1.6 (14.5) 11.2 (3.3)Underlying earnings per share (contribution) 0.97 5.97 6.94


Aviva financed UK shopping centre portfolio Balance SheetAs at 28 February 2019

Aviva financed UK Shopping Centre portfolio Rest of portfolio Group total £m £m £m

Non-current assetsInvestment property 181.6 1,412.0 1,593.6

Trade and other receivables 2.2 27.9 30.1

Total non-current assets 183.8 1,439.9 1,623.7Current assetsCash (of which £11.6m is restricted by Aviva) 13.7 34.9 48.6

Trade and other receivables 0.8 8.5 9.3

Total current assets 14.5 43.4 57.9Total assets 198.3 1,483.0 1,681.6Non-current liabilities Bank loans and borrowings (131.2) (642.9) (774.1)

Other non-current liabilities (6.1) (5.3) (11.4)

Total non-current liabilities (137.3) (648.2) (785.5) Current liabilities Bank loans and borrowings (0.8) (38.9) (38.7)

Other current liabilities (6.1) (22.5) (28.6)

Total current liabilities (6.9) (61.4) (68.3)Total liabilities (144.2) (709.6) (853.8)Net assets 54.1 773.7 827.8EPRA NAV per share (pence) 14.2 190.2 204.4


Portfolio metricsexcluding Aviva financed shopping centres

London serviced offices

New Broad Street, Liverpool StreetOwnership: 80%Net rental income: £1.87mGross ERV: £2.10m

Newington House, SouthwarkOwnership: 100%Net rental income: £1.23mGross ERV: £1.45mWAULT to break: 3.6 years

St Dunstans, MonumentOwnership: 80%Net rental income: £3.99mGross ERV: £4.25m

Charing Cross Road, LondonOwnership: 100%Net rental income: £2.00mGross ERV: £2.42mWAULT to break: 3.9 years

Little Britain, St PaulsOwnership: 80%Net rental income: £1.90mGross ERV: £2.00m

Canbury Business Park, KingstonOwnership: 100%Net rental income: £1.23mGross ERV: £1.52mWAULT to break: 0.8 years

Boundary Row, WaterlooOwnership: 80%Net rental income: £2.32mGross ERV: £2.32m

Newington Causeway, SouthwarkOwnership: 100%Net rental income: £0.52mGross ERV: £0.70mWAULT to break: 4.8 years

London offices

4# of properties

11%of portfolio

£163.4mMarket value

5.8%EPRA NIY

Key statistics

4# of properties

8%of portfolio


4.1%EPRA NIY

3.2 yearsWAULT

99.5%Occupancy

Key statistics


Portfolio metrics

The Omnibus Building, ReigateOwnership: 100%Net rental income: £1.5mGross ERV: £1.47mWAULT to break: 2.4 years

The Esplanade, JerseyOwnership: 50%Net rental income: £0.86mGross ERV: £0.88mWAULT to break: 3.2 years

Exeter Street, Bretonside, PlymouthOwnership: 100%Net rental income: £0.24mGross ERV: £0.81mWAULT to break: 4.0 years

Park Place, LeedsOwnership: 100%Net rental income: £0.56mGross ERV: £0.56mWAULT to break: 9.1 years

Waterside Court, LeedsOwnership: 100%Net rental income: £0.40mGross ERV: £0.47mWAULT to break: 0.3 years

Lakeview Centre Park, Warrington Ownership: 100%Net rental income: £0.49mGross ERV: £0.39mWAULT to break: 1.6 years

Job centres (Dalkeith and Newcastle)Ownership: 100%Net rental income: £0.22mGross ERV: £0.15mWAULT to break: 3.5 years

Westwey House, WeymouthOwnership: 100%Net rental income: £0.11mGross ERV: £0.11mWAULT to break: 51.2 years

Regional offices

9# of properties

4.1%of portfolio

£59.2mMarket value

6.4%EPRA NIY

4.6 yearsWAULT

89.6%Occupancy

Key statistics


Portfolio metrics

Camino Park Distribution Centre, CrawleyOwnership: 100%Net rental income: £2.81mGross ERV: £4.01mWAULT to break: 4.1 years

Express Park Distribution Centre, Bridgwater Ownership: 100%Net rental income: £2.92mGross ERV: £3.14mWAULT to break: 2.7 years

Southwood Business Park, FarnboroughOwnership: 100%Net rental income: £1.83mGross ERV: £2.04mWAULT to break: 2.5 years

Kingsthorne Industrial Park, KetteringOwnership: 100%Net rental income: £0.78mGross ERV: £0.85mWAULT to break: 5.4 years

Distribution, industrial and automotive

Link 9, BicesterOwnership: 100%Net rental income: n/aGross ERV: n/aWAULT to break: n/a

Petrol Filling StationsNo. of properties: 4Ownership: 100%Net rental income: £0.69mGross ERV: £0.70mWAULT to break: 13.7 years

DSA portfolioNo. of properties 4 Ownership: 100%Net rental income: £1.07mGross ERV: £0.54mWAULT to break: 9.8 years

Kwik Fit PortfolioNo. of properties: 27Ownership: 100%Net rental income: £1.16mGross ERV: £1.05mWAULT to break: 10.2 years

40# of properties

15%of portfolio


4.9%EPRA NIY

5.3 yearsWAULT

98.5%Occupancy

Key statistics


Portfolio metrics

Banbury Cross Retail Park, BanburyOwnership: 100%Net rental income: £2.81mGross ERV: £3.48mWAULT to break: 6.3 years

Arches Retail Park, Watford, LondonOwnership: 100%Net rental income: £3.05mGross ERV: £2.82mWAULT to break: 8.5 years

Priory Retail Park, Merton, LondonOwnership: 100%Net rental income: £1.42mGross ERV: £2.00mWAULT to break: 6.1 years

Queens Drive Retail Park, KilmarnockOwnership: 100%Net rental income: £1.76mGross ERV: £1.80mWAULT to break: 4.2 years

Milton Road Retail Warehouse, EdinburghOwnership: 100%Net rental income: £0.81mGross ERV: £0.87mWAULT to break: 14.3 years

St Davids Retail Park, BangorOwnership: 100%Net rental income: £0.75mGross ERV: £0.81mWAULT to break: 9.5 years

Albion Street, DerbyOwnership: 100%Net rental income: £0.33mGross ERV: £0.43mWAULT to break: 3.6 years

Retail parks and other retail

7# of properties

12.9%of portfolio


5.5%EPRA NIY

7.2 yearsWAULT

95.9%Occupancy

Key statistics


Portfolio metrics

St Georges, HarrowOwnership: 100%Net rental income: £4.45mGross ERV: £4.48mWAULT to break: 2.9 years

West Orchards, CoventryOwnership: 100%Net rental income: £2.54mGross ERV: £3.05mWAULT to break: 7.1 years

Shopping centres

2# of properties

6%of portfolio

£91.9mMarket value

7.1%EPRA NIY

4.5 yearsWAULT

98.6%Occupancy

Key statistics


18# of properties

25%of portfolio


5.7%EPRA NIY

83.9%Occupancy

Key statistics

Portfolio metricsUK Hotels

Hampton by Hilton, GatwickOwnership: 74%Net rental income: £1.87mGross ERV: £2.94m

Holiday Inn Express, Southampton Ownership: 74%Net rental income: £1.43mGross ERV: £1.59m

Holiday Inn Express, EdinburghOwnership: 74%Net rental income: £1.81mGross ERV: £2.34m

Holiday Inn Express, DunstableOwnership: 74%Net rental income: £0.44mGross ERV: £0.53m

DoubleTree Hilton, EdinburghOwnership: 83%Net rental income: £2.90mGross ERV: £3.20m

Holiday Inn Express, RedditchOwnership: 74%Net rental income: £0.40mGross ERV: £0.61m

Holiday Inn Express, Earl's CourtOwnership: 83%Net rental income: £2.01mGross ERV: £2.20m

Holiday Inn Express, SouthwarkOwnership: 83%Net rental income: £2.89mGross ERV: £3.12m

Managed Hotels



Crowne Plaza, Reading Ownership: 83%Net rental income: £1.13mGross ERV: £1.38m

Holiday Inn Express, Park RoyalOwnership: 83%Net rental income: £1.02mGross ERV: £1.14m

Holiday Inn Express, LimehouseOwnership: 83%Net rental income: £1.87mGross ERV: £2.05m

Holiday Inn Express, Royal DocksOwnership: 83%Net rental income: £1.30mGross ERV: £1.45m

Holiday Inn Express, BrentfordOwnership: 83%Net rental income: £0.80mGross ERV: £0.99m

Managed Hotels continued



Travelodge, PerthOwnership: 74%Net rental income: £0.28mGross ERV: £0.30mWAULT to break: 10.5 years

Travelodge, SloughOwnership: 74%Net rental income: £0.70mGross ERV: £0.78mWAULT to break: 10.6 years

Travelodge, EnfieldOwnership: 100%Net rental income: £0.80mGross ERV: £0.80mWAULT to break: 28.4 years

Travelodge, LeatherheadOwnership: 74%Net rental income: £0.40mGross ERV: £0.44mWAULT to break: 10.6 years

Travelodge, BelvedereOwnership: 74%Net rental income: £0.25mGross ERV: £0.29mWAULT to break: 22.1 years

Leased Hotels


Portfolio metricsGermany

Schloss Centre, BerlinOwnership: 100%Net rental income: £3.49mGross ERV: £4.13mWAULT to break: 5.7 years

Bahnhof Altona, HamburgOwnership: 100%Net rental income: £3.70mGross ERV: £3.96mWAULT to break: 3.5 years

City Arcaden, IngolstadtOwnership: 100%Net rental income: £1.63mGross ERV: £1.77mWAULT to break: 7.7 years

Shopping Centres

OBI, SchwandorfOwnership: 74%Net rental income: £0.60mGross ERV: £0.65mWAULT to break: 5.2 years

OBI, HerzogenrathOwnership: 74%Net rental income: £0.75mGross ERV: £0.77mWAULT to break: 5.0 years

OBI, HucklehovenOwnership: 52%Net rental income: £0.36Gross ERV: £0.40mWAULT to break: 8.1 years

DIY Portfolio

13# of properties

17%of portfolio


4.9%EPRA NIY

5.1 yearsWAULT

98.9%Occupancy

Key statistics


Portfolio metricsGermany

FrankfurtOwnership: 94%Net rental income: £0.14mGross ERV: £0.16mWAULT to break: 4.0 years

MollnOwnership: 94%Net rental income: £0.30mGross ERV: £0.39mWAULT to break: 2.2 years

LeipzigOwnership: 94%Net rental income: £0.49mGross ERV: £0.64mWAULT to break: 3.1 years

WaldkraiburgOwnership: 52%Net rental income: £0.30mGross ERV: £0.31mWAULT to break: 4.7 years

KaiserslauternOwnership: 52%Net rental income: £0.19mGross ERV: £0.21mWAULT to break: 7.0 years

Bremen / LindenhoffOwnership: 99%Net rental income: £0.37mGross ERV: £0.42mWAULT to break: 4.4 years

MunichOwnership: 94%Net rental income: £0.33mGross ERV: £0.36mWAULT to break: 8.9 years

Other Retail

RDI REIT contact details

Mike WattersChief Executive Officere: [email protected]

Stephen OakenfullDeputy Chief Executive Officere: [email protected]

Donald GrantChief Financial Officere: [email protected]

Adrian HorsburghProperty Directore: [email protected]

RDI REIT P.L.C.33 Regent Street

London

SW1Y 4NB

t: +44 (0) 20 7811 0100

Visit us onlinewww.rdireit.com

@RDIREIT

RDI REIT

3 september 2019 instinctif property tour - rdi reit · 3 september 2019 instinctif property tour...

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