half year results presentation - rdi reit...03 redefine international p.l.c. 2017 half year results...

Half year results presentation

April 2017

02Redefine International P.L.C.

2017 Half Year Results Presentation

Agenda

Introduction & highlights Mike Watters (CEO)

Financial results Donald Grant (CFO)

Capital structure Stephen Oakenfull (Deputy CEO)

Portfolio review Adrian Horsburgh (Property Director)

Outlook & conclusion Mike Watters (CEO)

Q&A



Operational highlights

• Disposals of £95m, at an average 12.4% premium• £42.2m investment to acquire control of

German supermarket JV post period end• Occupancy increased to 98.0% (+30bps)• 40 new leases totalling £2.2m, 2.3% above ERV• WAULT of 7.5 years

Financial highlights

• EPRA earnings of £23.8m• Re-based underlying earnings of £24.3m • Interim dividend of 1.3p per share• Portfolio valued at £1.5bn (+0.6% like-for-like)• LTV of 49.9% within target range• EPRA NAV per share 40.4p (+1.0%)

HighlightsSolid progress against strategic objectives



Commitment to being the UK’s leading income-focused REIT

Superior, sustainable and growing shareholder returns

Scaleable business

Efficient capital structure

Income-focused portfolio

Financial discipline

• Committed to deliver upper quartile income yield• Secure income

• Total returns driven by “real” income growth • Capital appreciation

St George’s Shopping Centre, Harrow



Financial results



Underlying earnings(including share of joint ventures)

Re-based Re-based Reported HY17 HY16 HY16 Change £m £m £m £m

Net rental income 46.0 41.9 4.1

Other income 2.8 1.8 1.0

Administrative costs (8.8) (5.5) (3.3)

Net finance expense (15.0) (15.4) 0.4

Other items (1.2) 0.3 (1.5)

EPRA earnings 23.8 23.1 23.1 0.7

Company adjustments: – Reverse debt accretion charges 0.5 1.1 1.1 – FX (gains)/losses — (2.7) (2.7) – Discontinued Company adjustments — — 3.9

Underlying earnings 24.3 21.5 25.4 2.8

Earnings per share 1.35p 1.4p 1.7p

Dividend per share 1.3p 1.625p

Diluted weighted average shares in issue 1,804.4m (29 February 2016: 1,494.8m)



Acquisitions Disposals

(5.4)

(3.3) (0.2)

Acquisitions Disposals Developments UK Retail

37.20.1

(0.1)

1.2

Like-for-like(1)

+3.3%

1.4 0.1

Nil

UK Commercial

UK Hotels

Gross rental income(HY17)

EuropeLike-for-like(HY16)

Like-for-like(HY17)

36.0

Gross rental income(HY16)

44.9

Developments

12.1 50.8

Gross rental income(including share of joint ventures)

Gross rental income (£m)

(1) Excludes the 2016 acquisition of the AUK Portfolio



Valuations(including share of joint ventures)

(1) Gain/(loss) includes the effect of capital expenditure, tenant incentives and FX

Market Market value value EPRA HY17 FY16 Gain/(loss)(1) Gain/(loss) NIY £m £m £m % %

UK Retail 537.0 537.1 (1.8) (0.3) 6.2

UK Commercial 386.1 374.0 10.2 2.7 5.6

UK Hotels 229.3 229.2 (2.2) (1.0) 6.2

UK total 1,152.4 1,140.3 6.2 0.5 6.0

Europe 288.0 285.7 2.3 0.8 5.3

Total like-for-like 1,440.4 1,426.0 8.5 0.6

Disposals — 84.5

Development 19.0 18.5

Total property portfolio 1,459.4 1,529.0 5.9

€+0.2%



Debt & gearing(including share of joint ventures)

Key statistics Medium term target HY17 FY16

LTV (%) 45% – 50% 49.9 53.4

Weighted average debt maturity (years) 6.8 6.9

Weighted average interest rate (%) 3.2% – 3.4% 3.3 3.4

Debt with interest rate protection (%) >75% 97.0 95.4

Interest cover (times)(1) >3 3.1 2.7

(1) Group interest cover calculated as net rental income divided by net finance costs



EPRA NAV per share

Total shares in issue 1,811.7 million (31 August 2016: 1,794.6 million)

(0.1)

Dividends

1.4

Underlying earnings

0.6 0.1

Valuation gains

Profits on disposal

(1.6)

OtherEPRA NAV (Aug 2016)

40.0

EPRA NAV (Feb 2017)

40.4

EPRA NAV per share (p)



Commitments of £13.4m and undrawn committed facilities of £36.6m

Cash flow & available facilities(including share of joint ventures)

30.5

34.3

23.0

57.3

66.2

16.8

(7.8)(52.8)

(21.6) (1.9)

Cash and available facilities

(Aug 2016)

Operatingcash flow

Disposals

Undrawn, committed facilities

Debt drawn Capital expenditure

& development

Debt repaid Dividends Other Cash and available facilities

(Feb 2017)

36.6

100.3

63.7

Cash flow (£m)



Continuing to deliver upper quartile distributions

ConclusionMedium term guidance maintained

Key statistics Medium term target HY17

Rental income growth (like-for-like) 2% – 5% 3.3%

Rent collection >95% within 7 days 94%

Administrative overheads <15% EPRA cost ratio 20.7%(1)

Cost of debt 3.2% – 3.4% 3.3%

LTV 45% – 50% 49.9%

Interest cover >3x 3.1x

Pay-out ratio 90% – 95% 96%

EPS growth 3% – 5% (4%)

• Proposed dividend of 1.3p provides c.£7m headroom to operational cash flow

• Weighted average cost of debt expected to fall further in H2

(1) 18.0% when adjusted for non-recurring items



Enfield Travelodge, London

Capital structure



Medium term target of 45% – 50% LTV

Continued balance sheet improvementLeverage reduced to within target range

HY201740%

LTV (%)Weighted average cost of debt (%)

60%

55%

50%

45%

65%

70%

75%

80%

85%

LTV (%)

75.4%

49.9%

3.3%

5.0%

Cost of debt (%)

5.5%

3.0%

3.5%

4.0%

4.5%

5.0%

FY2011 FY2012 FY2013 FY2014 FY2015 FY2016

Historic weighted average cost of debt and LTV

• LTV reduced to 49.9%

• Cost of debt reduced to 3.3%

• Further cost of debt reductions secured

• 97% of debt at fixed or capped rates



Capital structure(including share of joint ventures)

Reducing leverage efficiently

LTV: 49.1%

LTV covenant average: 69.0%

Weighted average maturity: 4.0 years

LTV: 70.5%

LTV covenant average: 85%(1)


LTV: 56.1%



LTV: 49.9%(2)



UK bank debt £442.1m (56%)

Group debt £792.3m

UK non-bank (fixed rate) debt £177.9m (22%)

Europe debt £172.3m (22%)

(1) LTV covenant of 85% agreed as part of restructuring post period end(2) Net of £63.7m cash

UK non-bank debt28 Feb

2017 Current

Debt £167.8m £146.1m

Cost of debt 5.8% 5.5%

LTV 71% 62%

Our share of Wigan net income

50% 100%

Euro debt facility

28 Feb 2017 Current

Debt £44.0m £38.4m

Cost of debt 3.7% c. 2.7%

LTV 65% 57%

Yield on equity: c. 10.0% Yield on equity: c. 9.8%

Refinancing activity (post period end)



• £268.3m(1) of debt repaid or refinanced since 31 August 2016

• Lower rates secured for an extended period

Au

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GBP

Euro

Refi/Sold/Repaid

New

Au

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8

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Au

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2.7

17.57.2

88.7

9.0

38.4

10.1

146.1

378.8

123.6

Debt maturity profile (£m)(1)

Limited refinancing risk

Securing lower long term ratesWeighted average debt maturity of 6.8 years with no material maturities until 2020

(1) Pro-forma, showing refinancing activity completed since 31 August 2016



Capital recycling & disposalsDisposals being driven by asset level strategy

Strategic disposals

VBG portfolio, Germany

• Sold for £44.4m(1)

• 8.6% premium

• 7.2% NIY

• 4.9% revisionary yield

Realising value

Delta 900, Swindon

• Sold for £3.6m

• 31.5% premium

• 7.3% NIY

• 8.0% reversionary yield

Opportunistic

• 201 Deansgate, Manchester• Exchange House, Watford• Parliament Square, Edinburgh• German supermarkets

• Combined sales price of £47.0m

• 14.1% premium

• 5.1% NIY

• 6.4% reversionary yield

• £95.0m of disposals completed at a 12.4% premium

• EPRA NIY of 6.1% on sales prices, reflecting net rental income of £6.1m

• A further £29.0m of disposals completed or under offer post period end

(1) 49% share



• Acquisition of controlling stake in joint venture

• Secure, indexed-linked cashflows

• 10.0% cash-on-cash income return

• 99.2% of rental income indexed to German CPI(1)

• Strong covenants – largely food, discount and convenience

• 86.4% located in Western Germany and Berlin

• Opportunities to extend stores and re-gear leases

Leopard portfolio acquisitionEfficient re-investment of capital

Key portfolio metrics(2)

• €175.5m, 66 assets

• €13.9m of gross rent

• 7.4% NIY

• 8.4 year WAULT

• 99.2% occupancy

(1) Indexed to 60-70% of German CPI, subject to reaching a cumulative hurdle of 10%(2) All figures reflect 100% of portfolio



Capital allocation & re-investmentEffective balance between leverage and re-investment

Disposals of £95.0m

• Average NIY of 6.1%

• WAULT of 6.4 years

• Mature assets

• 12.4% premium

Leverage reduction of £58.3m

• Targeting highest LTV facilities

Group debt (incl. share of JVs) 31 Aug 2016 28 Feb 2017

Debt

Cost of debt

LTV

£850.6m

3.4%

53.4%

£792.3m

3.3%

49.9%

Re-investment of £42.2m

Leopard portfolio

• Average NIY of 7.4%

• WAULT of 8.4 years

• Indexed rents

• Potential portfolio premium



Efficient capital structureMedium term guidance

Medium term target Strategic targets

Leverage • LTV: 45% – 50% • LTV: 40% – 50%

Sources of capital • More flexible debt facilities

• Revolving credit facilities

• Wider shareholder appeal

• Debt capital markets (unsecured)

• Investment grade credit rating

• Broad institutional shareholder base

Cost of capital • Capitalise on refinancing at historically low rates

• Enhanced equity rating

• Competitive cost of debt

• Premium equity rating

Allocation of capital • Disposal of mature assets

• Asset management capex initiatives

• Effective de-leveraging

• Investment in growth assets

• Headroom and liquidity to capitalise on opportunities



Camino Park Distribution Centre, Crawley

Portfolio review



Portfolio continues to be enhanced through the disposal of mature assets and re-investment

Portfolio overview

Retail: 58% (32% of rents indexed)

Commercial: 26% (82% London, South & ‘Big 6’)

Hotels: 16%

UK shopping centres: 23% German retail: 21% UK retail parks: 14%

Logistics:(1)

12%Offices: 14%

7.5yrsWAULT

5.9%EPRA NIY

98.0%Occupancy

21%Germany

79%UK

Sector specialism across retail, office, logistics and hotels

Market value £1.5bn as at 28 February 2017

(1) Also includes industrial and automotive



Focused on improved property fundamentals with clearly identified opportunities to support future income security

Continuously improving quality of portfolioFocus on owning assets underpinned by occupier demand

on completion

• Long WAULTs (7.5 years)

• Indexed rents (52% indexed)

• High cash-on-cash returns

• Economic growth locations

• Positive structural change

• Void reduction

• Commercialisation

• Expansion and reconfigurations

• £29m completed or under offer post period end

% portfolio by market value

44% Core secure

income

21% Income-led

asset management opportunities

31% Growth income

4% Mature assets



Capital allocation to target sectors and assets with positive rental growth outlook

Gross annualised rental income £100.1m (+0.7% on like-for-like basis)Uplift in like-for-like ERV to £101.6m (+0.6%)

Breakdown of like-for-like gross annualised rental income movement since August 2016

UK Retail EuropeUK Commercial UK Hotels

(£0.2m) (-0.5%)

£0.2m (+1.1%)

£0.6m (+2.3%)

£0.2m (+1.1%)€+0.4%



Resilient income profile with over 75% of gross rental income beyond 5 years to first break

Income securityClear income visibility with WAULT of 7.5 years supported by diversified portfolio

FY2017 FY2018 FY2019 FY2020 FY2021 FY2026+FY2025FY2024FY2023FY2022

UK Retail UK Hotels EuropeUK Commercial

4.0 3.2 2.3

6.0 5.5

9.57.7 6.8 6.6

48.4 Tenant Profile

• Diverse and high quality sources of rental income

• Over 550 tenants

• Over 30% of portfolio subject to index-linked rents

Top 10 tenantsAs at % of gross 28 February 2017 rental income Units

UK Government 4.7 16

B&Q 4.2 5

Tesco 3.7 1

Edeka 3.6 34

Royal Mail 2.4 2

Primark 2.0 1

OBI 1.9 3

Debenhams 1.8 2

Wilko 1.7 4

Sytner 1.7 1

Lease expiries to first break by gross rental income (%)



Shopping centres23% by market value

• BHS unit at Wigan now under offer• Commercialisation revenues of £1.1m secured,

+20% like-for-like• Reconfiguring and optimising space

• Actively targeting food, daily needs, value and leisure tenants

• Closely tracking retailer performance

• Re-urbanisation of town centres• Creation of larger units to meet demand

and reduce number of in-line units

High occupancy 96.6% (-150bps)

Market evolution Rebalancing supply and demand

Sector headwindsConsumer shopping patterns continue to evolve



• Vacancy across the sector remains low• Renewed investor interest

• Demand from A3 & leisure • Progress on comercialisation income streams• PureGym unit on site at Banbury Cross

• Additional income of £0.2m, 15% yield on cost

• Terms agreed on 22,000 sqft pre-let to international retailer at Derby

• Development cost of £2.2m, 9.7% yield on cost• Pre-let to drive demand for c. 16,000 sqft of

neighbouring shops

Strong supply/ demand dynamics 100% occupancy

Income-led development

Creating additional income

Retail parks and other retail14% by market value



• City Point, Leeds fully let• 10 years to Blacks Solicitors• Rent of £0.3m in line with ERV

• Remaining 28,000 sqft of vacant space under negotiation at Bristol and Reigate

• Rent reviews on £0.9m at Newington House, Southwark

• ERV of £1.2m• Potential to exceed ERV

• Ongoing discussion for a major pre-let• Planning pre-application complete • Value +31.5% since acquisition

Offices14% by market value

Strong letting progress Occupancy 96.3% (+320bps)

Charing Cross Road

London offices in performing locations



• Continuing under supply• Strongest rental growth anticipated from

‘standard’ units• Forecast rental growth of 4.9%(1)

• Vacancy of c.1.0% in Crawley market• 66% of rents subject to review in 2017• Market evidence at £13 psf vs ERV of £10 psf (ave.)

• 53,400 sqft single unit under refurbishment• Pre-let interest

Market overview

Colchester

Camino Park, Crawley Valuation +14% since acquisition

Distribution, industrial and automotive12% by market value

(1) MSCI research



• Weaker pound supporting growth in London• Forecast RevPar growth of 3.3%(1)

• Volatility and risk remains

• Underlying revenue +3.9%(2)

• Travelodge, Enfield benefitting from 30 year indexed lease

• Impact of higher rates still to be absorbed

• 12 room extension to complete in Q3• Underlying revenue growth of +1.3% YTD

despite disruptions• Extension includes major façade refurbishment

Hotels16% by market value

Improved market outlook Stronger economy and weaker pound

Southwark extension Allocation of capital to rapidly improving location

Resilient trading performance Strong recovery in Q2

(1) PWC UK Hotels forecast(2) Underlying revenue growth of RBDL managed portfolio



• Focus on extending leases and enhancing tenant mix

• Extensions to REWE and dm units at Schloss-Strassen Centre, Berlin

• Primark to add €1.5m of additional rental income• Strong investment demand for prime retail

• Investment market well supported• Lack of good quality investment stock• Interest rate outlook remains low

Europe21% by market value(1)

Shopping centres near full occupancy 99.9% (+5bps)

Market outlook remains supportive

Developments Ingolstadt handover to Primark in Q3

(1) 25% post period end



Acquire secure income streams, exposed to strong property fundamentals, with realisable income and value-add opportunities

Investment strategyEfforts focused on income-led asset management initiatives informed by occupational demand

Reduce exposure to maturing business plans

Increase investment in strong property fundamentals

VBG, Germany

Charing Cross Road, London

Exchange House, Watford

Camino Park, Crawley

Deansgate, Manchester

Banbury Cross Retail Park

Recycle

Divider page titleDivider page subhead





Charing Cross Road, London

Outlook & conclusion



• Committed to being the UK’s leading income-focused REIT

• Ongoing repositioning of the portfolio for continued income growth

• Further strengthening of the balance sheet• Long term commitment to deliver superior, sustainable

and growing income-focused total returns• Committed to deliver upper quartile income yield• Improved income security• Total returns driven by “real” income growth

• Earnings guidance unchanged at 2.7 – 2.8 pence per share

Outlook & conclusion



Queen’s Drive Retail Park, Kilmarnock



Appendices



• Income-focused UK-REIT

• Superior, sustainable and growing shareholder distributions

• £1.5bn portfolio • Retail (58%), Offices (14%), Distribution (12%)

and Hotels (16%)

• Secure income: • Diversified portfolio and tenant base• 7.5 years WAULT with over 30% indexed leases• 6.8 years debt maturity with 97% of interest

costs fixed or capped• Industry leading cost ratios

Introduction to Redefine International P.L.C.Who we are and what we do

A FTSE 250Company

UK

GermanyLeeds

Edinburgh

Berlin

HamburgLondon

Bristol

Top 20 assets by market value

Europe’s two largest real estate markets:

79%UK

21% Germany



Strategically targeted sectorsSupported by in-house specialists

UK Retail – Market value £537m

UK Commercial – Market value £386m

UK Hotels – Market value £229m

Europe – Market value £307m

• 6 wholly-owned regionally dominant shopping centres, tenanted by leading retailers including Tesco, Wilko, Boots, H&M and TK Maxx

• Well located retail parks, of which 4 assets are in London, UK South and “Big 6” UK cities

• Other assets include high street retail assets and a retail warehouse

• 8 limited service hotels in Greater London and 1 hotel in Edinburgh

• Branded Holiday Inn, Holiday Inn Express, Crowne Plaza, Travelodge and DoubleTree by Hilton

• 30.4% holding in RedefineBDL, the UK’s largest independent hotel manager

• 17.2% holding in IHL, a hotel and leisure-focused listed entity

• 3 Greater London offices some of which present alternate uses

• 17 regional offices, 4 AUK assets

• Well located distribution centres

• Vehicle dealership, service station and motor trade properties which provide defensive income on long leases, with leading brands including BP and Kwik Fit

• 81 properties in Germany

• Over 50% by value contributed by 3 well located shopping centres in Berlin, Hamburg and Ingolstadt

• Other assets include retail parks and small discount supermarkets

• Tenants are weighted to non-discretionary food stores and discounters



Portfolio analysis Annualised EPRA % of portfolio by Market gross rental topped Reversionary EPRA voids Values as at 28 February market value value (£m) Properties Area (m2) income (£m) ERV (£m) EPRA NIY up yield yield WAULT (yrs) (by ERV) Indexed

UK Shopping Centres 23% 335.0 6 155,582 26.2 27.2 6.2% 6.4% 7.6% 7.7 3.4% 22.6%UK Retail Parks 12% 169.8 5 50,972 11.7 10.8 6.2% 6.5% 6.0% 7.9 — 3.1%UK Other Retail 2% 32.2 3 29,548 2.4 2.3 6.4% 6.4% 6.7% 16.6 3.3% —UK Retail 37% 537.0 14 236,102 40.3 40.3 6.2% 6.4% 7.0% 8.3 2.5% 15.6%UK Offices – Greater London 6% 87.1 3 9,860 3.4 4.4 3.0% 3.5% 4.7% 7.1 — 19.9%UK Offices – Regions 8% 127.9 17 67,941 11.0 10.6 7.3% 7.8% 7.7% 3.7 5.2% 25.5%UK Distribution & Industrial 7% 104.1 4 98,991 6.2 7.0 5.3% 5.6% 6.3% 5.5 4.0% —UK Automotive 5% 67.0 37 22,699 4.3 3.4 6.0% 6.0% 4.7% 11.3 — 67.2%UK Commercial 26% 386.1 61 199,491 24.9 25.4 5.6% 5.9% 6.1% 5.9 3.3% 25.6%Greater London RBDL portfolio 13% 181.2 7 29,426 12.0 12.2 6.2% 6.2% 6.3% 8.8 — —Edinburgh, Doubletree by Hilton 2% 33.1 1 7,250 2.6 2.6 7.2% 7.2% 7.2% 9.0 — 3.4%London, Enfield Travelodge 1% 15.0 1 4,647 0.7 0.7 4.5% 4.5% 4.5% 30.4 — 100.0%UK Hotels 16% 229.3 9 41,323 15.3 15.5 6.2% 6.2% 6.3% 9.8 — 5.2%Total UK 79% 1,152.4 84 476,916 80.5 81.2 6.0% 6.2% 6.6% 7.8 2.3% 16.7%German Shopping Centres 11% 164.3 3 46,015 8.8 9.8 4.3% 4.5% 5.6% 4.9 0.1% 95.8%German Supermarkets and Retail Parks 10% 142.7 78 128,202 10.8 10.6 6.4% 6.4% 6.9% 7.1 1.9% 97.0%Europe 21% 307.0 81 174,217 19.6 20.4 5.3% 5.4% 6.2% 6.1 1.0% 96.5%Total 100% 1,459.4 165 651,133 100.1 101.6 5.9% 6.0% 6.5% 7.5 2.0% 32.3%Wholly owned 93% 1,359.6 95 568,091 92.4 94.2 5.8% 6.0% 6.5% 7.5 2.1% 27.7%Held in joint ventures (proportionate) 7% 99.8 70 83,042 7.7 7.4 6.6% 6.6% 6.9% 8.1 0.8% 88.2%



Top 20 assetsTop 20 assets make up >65% of total portfolio

% of Annualised EPRA Voids (by portfolio by Market gross rental topped WAULT EPRA voids lettable % Values as at 28 February market value value (£m) Area (m2) income (£m) ERV (£m) EPRA NIY up yield (yrs) (by ERV) area) Indexed

Wigan, Grand Arcade 6.6% 95.6 40,786 7.3 7.1 5.7% 6.2% 7.2 7.7% 10.2% 20.1%Northampton, Weston Favell 5.9% 86.3 30,306 6.5 7.1 6.7% 6.8% 7.3 2.3% 1.7% 48.8%Berlin, Schloss Centre 5.3% 77.7 18,868 4.3 4.3 4.9% 4.9% 5.4 — — 95.5%London, Harrow, St Georges 5.0% 73.0 19,976 4.8 5.0 5.4% 5.4% 4.7 0.8% 0.7% 20.3%Hamburg, Bahnhoff Altona 4.6% 67.7 15,074 3.9 3.8 5.1% 5.1% 4.6 0.3% 0.6% 97.7%London, Charing Cross Road 3.8% 56.0 3,776 1.9 2.4 2.4% 3.2% 4.7 — — 35.7%Banbury, Banbury Cross Retail Park 3.5% 51.0 15,845 3.7 3.5 6.0% 6.8% 6.3 — — 9.8%Crawley, Camino Park Distribution Center 3.3% 48.0 32,664 2.7 3.2 4.8% 5.3% 6.2 — — —London, Watford, The Arches Retail Park 3.1% 45.7 11,443 3.0 2.6 6.2% 6.2% 9.9 — — —Bridgwater, Express Park Distribution Center 2.9% 41.8 46,961 2.7 2.8 6.2% 6.2% 4.8 — — —Top 10 44% London, Southwark Holiday Inn Express 2.7% 39.3 3,936 2.4 2.6 5.8% 5.8% 8.8 — — —London, Merton, Priory Retail Park 2.5% 36.9 6,533 2.2 2.0 5.5% 5.5% 8.7 — 0.0% —Warrington, Birchwood 2.4% 34.5 34,583 2.8 3.0 6.5% 6.6% 14.5 4.1% 2.6% 4.4%Edinburgh, DoubleTree Hilton 2.3% 33.1 7,250 2.6 2.6 7.2% 7.2% 9.0 — — 3.4%London, Earl’s Court Holiday Inn Express 2.1% 30.5 2,781 2.0 2.0 6.1% 6.1% 8.8 — — —London, Limehouse Holiday Inn Express 1.9% 27.6 5,747 2.1 2.1 7.0% 7.0% 8.8 — — —Coventry, West Orchards 1.8% 26.2 19,213 3.2 3.5 7.1% 7.9% 7.6 1.7% 2.4% —High Wycombe, Sytner Vehicle Dealership 1.7% 24.7 6,028 1.4 1.1 5.3% 5.3% 8.1 — — —London, Royal Docks Holiday Inn Express 1.7% 24.6 4,561 1.6 1.6 6.0% 6.0% 8.8 — — —Kilmarnock, Queens Drive Retail Park 1.6% 22.8 10,596 1.8 1.7 7.2% 7.2% 6.2 — — —Top 20 65%



Debt facilities

Principal debt Principal (economic Cost of debt share) debt Group debt analysis as at 28 February 2017 Lender Currency £m £m Maturity (%)

HSBC, RBS, AUK Barclays, Santander GBP 268.2 268.2 Sep 2020 2.6%AUK facility 268.2 268.2

26 The Esplanade Lloyds Bank GBP 17.8 8.9 Dec 2022 6.1%UK Offices 17.8 8.9

Kwik Fit Portfolio Aviva GBP 10.1 10.1 Jun 2029 6.4%Petrol Filling Stations HSBC GBP 3.8 3.8 Jan 2019 4.2%UK Automotive 13.9 13.9

Grand Arcade, Wigan Aviva GBP 73.0 73.0 Apr 2032 5.7%Weston Favell, Northampton Aviva GBP 50.0 50.0 Nov 2038 5.7%Birchwood, Warrington Aviva GBP 28.4 28.4 Sep 2035 6.1%Byron Place, Seaham Aviva GBP 16.4 16.4 Sep 2031 6.4%St Georges, Harrow Berlin Hyp GBP 37.8 37.8 Apr 2021 2.9%West Orchards, Coventry Santander GBP 11.8 11.8 Nov 2021 4.1%UK Retail 217.4 217.4



Debt facilities continued

Principal debt Principal (economic Cost of debt share) debt Group debt analysis as at 28 February 2017 Lender Currency £m £m Maturity (%)

London Portfolio and Edinburgh Aareal Bank GBP 111.6 111.6 Nov 2021 2.6%UK Hotels 111.6 111.6

Europe Bahnhof Altona, Hamburg HSH Nordbank EUR 44.0 44.0 Feb 2020 3.7%Schloss Strassen Center, Berlin HSH Nordbank EUR 53.0 53.0 Mar 2021 2.0%German Shopping Centres 97.0 97.0

Premium Portfolio Munchener EUR 15.4 15.4 Feb 2020 1.3%OBI Portfolio Bayern LB EUR 12.5 12.5 Oct 2017 1.1%Bremen/Lindenhoff Bayern LB EUR 3.0 3.0 Sep 2019 2.0%Supermarkets and retail park portfolio Berlin Hyp EUR 73.6 36.8 May 2020 1.4%Waldkraiburg Bayern LB EUR 5.4 2.7 Jun 2017 2.6%Kaiserslautern Bayern LB EUR 3.4 1.7 Sep 2017 2.6%Huckelhoven Bayern LB EUR 6.3 3.2 Dec 2017 2.6%German Supermarkets & Retail Parks 119.6 75.3 Total 845.5 792.3 3.3%



• Total returns from property are largely driven by income

• Increased attraction to:

• Predictable income returns• Capital preservation with growth potential

• Trend of compounding income delivering long term returns to continue

• Management has ability to influence income returns

• Short term capital returns are volatile and affected by external factors

• Increasing income returns will drive sustainable capital growth

Recurring and predictable income returns are increasingly sought after in a low economic growth and low interest rate environment

The case for our income-focused business model

30 years 73%

20 years 74%

10 years 140%

5 years 65%

Capital returnIncome return

Source: MSCI, Lazarus

The composition of historic UK property total returns



Mike WattersCEOe: [email protected]

Stephen OakenfullDeputy CEOe: [email protected]

Donald GrantCFOe: [email protected]

Adrian HorsburghProperty Directore: [email protected]

Redefine International P.L.C.2nd Floor, 30 Charles II StreetLondon SW1Y 4AEt: +44 (0) 20 7811 0100

Visit us online www.redefineinternational.com

@RedefinePLC

Redefine International

Redefine International Team

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