INVESTOR PRESENTATION

OCTOBER 2010 www britishland comOCTOBER 2010 www.britishland.com

British Land At A Glance

• One of Europe’s leading REITs• One of Europe’s leading REITs

• High quality £8.7bn prime UK retail and London office portfolio

• Secure income flows underpinned by long leases and quality occupiers

• Well positioned to deliver growth and value from existing portfolio

• Strong balance sheet and access to debt finance

• Opportunities to create further value through acquisitions and development

Generating Superior Total Shareholder Returns

2

Key Financials

Including share of Funds & JVs Strong recovery in valuation and NAVIncluding share of Funds & JVs

FY 2009/10 Q1 2010/11

Gross rental income £561m £135m 40

change (%)

Strong recovery in valuation and NAV

Underlying Profit  £249m £64m

Underlying EPS 28.4p 7.1p

Dividend per share 26 0p 6 5p25

30

35

Dividend per share  26.0p 6.5p

Total properties £8,539m £8,682m 10

15

20

Net assets £4,407m £4,561m

NAV per share 504p 515p

Total return 33.5% 3.5% ‐5

0

5

H1 09/10 H2 09/10 FY 09/10 Q1 10/11

Total return 33.5% 3.5%‐10

Portfolio valuation NAV per share1

31 Valuation movement (net of capital expenditure) of properties held at the balance sheet date

Our Strategy

• High quality income stream to support strong dividend• High quality income stream to support strong dividend

• Optimal asset allocation to deliver future capital value growth

• Optimal financial structure to drive total returns

Our objective is to be the premier UK commercial real estate company

4

High Quality Portfolio 

5

High Quality £8.7bn Prime Real Estate Portfolio 

• £13.7bn owned or under management (BL Share £8.7bn)

• Over 33m sq ft of prime retail and London office properties 

Retail Warehouses 28% City Offices 20%

West End Offices12%

Superstores 15%Other 3%

%

Europe 4%

Department Stores 5%

Shopping Centres 13%

Europe 4%

6

Prime Retail and London Offices: Top 10 Properties

As at 30 June 2010 S ft BL R t O LAs at 30 June 2010 Sq ft’000

BL Share

Rent£m pa1

Occupancyrate %2

Lease length, yrs3

1 Broadgate  4,400 50% 184 96.1 8.1

2 Meadowhall Shopping Centre 1,400 50% 77 98.5 10.9

3 Regent’s Place4 1,210 100% 40 97.2 9.4

4 Ropemaker Place 590 100% 25 94.6 16.2p %

5 Fort Kinnaird Shopping Park 510 18% 17 100.0 9.1

6 New Mersey Shopping Park 470 18% 16 100.0 10.3

7 Glasgow Fort Shopping Park 390 36% 16 100.0 8.0

8 Teesside Shopping Park 410 100% 13 99.9 9.9

9 Bon Accord Shopping Centre 490 50% 15 97 7 7 79 Bon Accord Shopping Centre 490 50% 15 97.7 7.7

10 Parkgate Shopping Park 560 36% 12 99.5 9.3

7

1 Annualised contracted rent (100% basis)2 Including accommodation subject to asset management and under offer3 To first break 4 Excluding NEQ (development)

Property With Enduring Occupier Appeal: Retail

Glasgow Fort Shopping Park, Glasgow Meadowhall Shopping Centre, Sheffield

• One of 6 super regional shopping centres in the UK• Dominant out of town retail destination• Attracts more than 24m visitors each years• Over 280 retail national and international brands 

• Premier 390,000 sq ft Open A1 fashion park • Convenient out of town location• Annual footfall of c.13m• 175,000 sq ft consented extensions, 80,000 sq ft 

8

pre‐let to M&S

Property With Enduring Occupier Appeal: Offices

Broadgate, City of London Regent’s Place, West End of London

• 1.2 m sq ft of mixed office and retail• Further 500,000 sq ft: starting soon• Good infrastructure (national rail/6 tube lines)• Broad mix of quality tenants  

• 4.4m sq ft premier City of London office estate• Built around Liverpool Street station• Agreement for leases with UBS to develop a new 

700,000 sq ft building on site of 4 & 6 Broadgate

9

Secure Income Flows

10

Longevity and Security Of Income Flows

• High quality occupiers across a diverse  • High occupancy and long leasesrange of industries • Occupiers in administration 0.1% of rent

• 99% of current rent contracted in 3 years time

Top 10 Customers

Income Profile (as at 30 June 2010)

As at 30 June 2010 Retail Offices Total IPD

p

% of total rent

Tesco 8

Sainsbury’s 7

Underlying Occupancy Rate(%)1

98.6 96.6 97.8 n/a

Sainsbury s 7

Debenhams 4

UBS 4

HM Government 2Occupancy Rate (%) 97.9 91.6 95.6 91.9

Lease length to 1st

break13.9  9.3 12.5 9.8

HM Government 2

Homebase 2

B&Q 2

k f k b h break

Rent Subject to Expiry over 3 years (%)

5% 13%  8% 21%

Bank of Tokyo‐Mitsubishi 2

RBS 2

Next 2

111 Including accommodation subject to asset management and under offer

High Occupancy & Long Leases

Income ProfileIncome Profile

As at 30 June 2010 Annualised Rent £m1

Net Reversion          (5 years) £m2

Occupancy Rate (%)3

Lease Length Years4

Retail Warehouses 159 15 98.8 11.2

Superstores 72 1 100.0 17.8

Shopping Centres 78 9 96.9 10.8

Department Stores2 27 4 98.7 26.6

All Retail 336 29 98.6 13.9

City 87 21 96.0 9.6

West End 45 12 97.7 8.5

All Offices 132 33 96.6 9.3

Oth 16 3 93 2 20 6Other 16 3 93.2 20.6

Total 484 65 97.8 12.5

1 Gross rent receivable plus any increases to current ERV from outstanding rent reviews (net of ground rents payable)

12

Gross rent receivable plus any increases to current ERV from outstanding rent reviews (net of ground rents payable) 2 Within 5 years ‐ includes rent reviews, lease break/expiry, and letting of vacant space at current ERV (as determined by external valuers), plus expiry of rent free periods and contracted fixed/minimum uplifts

3 Including accommodation subject to asset management and under offer4 To first break

Well Positioned to Deliver Growth

13

Capital Recycling To Strengthen The Portfolio

R d d t th hi h t tPortfolio Weighting by Value • Reduced exposure to the high street 

• Sold low growth, mature properties

Portfolio Weighting by Value

2005 2010

High Street Shops 10% 5%

• Reduced exposure to large assets through joint ventures

F d tf li ti t lik l

Retail Warehouses 13% 31%

Superstores 13% 15%

• Focused portfolio on properties most likely to deliver future income and capital growth

Shopping Centres 19% 14%

Retail 55% 65%

City Offices 31% 20%City Offices 31% 20%

West End Offices 5% 12%

Other Offices 3% 0%

Offices 39% 32%

Other 6% 3%

14

Portfolio Well Positioned For Growth

BL Sector Weightings Relative to IPDERV Growth Forecasts by Sector1 BL Sector Weightings Relative to IPD

Retail Parks

ERV Growth Forecasts by Sector1

S t

Retail Parks

Sh

Shopping Centres

Superstores

Shops

Shopping Centres

Superstores

West End offices

City offices

Shops

West End offices

City offices

Shops

Industrial

Provincial offices

Industrial

Provincial offices

‐15 ‐10 ‐5 0 5 10 15 20‐2 0 2 4 6 8

YOY Change (%) ‐ next 5 years

151 PMA Autumn 2010 forecast

Retail: Strong Demand For Large Flexible Formats

L il i ifi l i k C i f l i f l f• Large retailers significantly increase market share

• Increased competition and margin pressure

• Concentration of sales in fewer larger formats

• 50% of retail sales in 200 locations in 1971 vs 90 locations in 20082

P l i ti f f b t• Polarisation of performance between different formats and locations

Share of all UK Retail Sales1

% All Retail Sales

IPD income growth – last 5 years3 % pa

Retail Warehouses +3.8%35%

40%

45%Large Food Retailers

Superstores +4.3%

Shopping Centres +1.6%25%

30%

35%Large 

Non‐Food Retailers

High Street shops +0.9%

All Retail +2.6%15%

20%

88 90 92 94 96 98 00 02 04 06 08

Small Retailers

16

1 ONS2 CBRE3 IPD Quarterly Index

Retail: Continued Polarisation Between Key Locations And The RestAnd The Rest

• Weak consumer demand – impact of fiscal measures 

O ll t il t t d t160

Growth in UK Retail Sales2

Retail Warehouses

1999 = 100

• Overall retail rents expected to 

− decline in 2010

− grow by 2 1% pa1 between 2011 and 130

140

150

grow by 2.1% pa between 2011 and 2015 

• Continued demand for key locations110

120

130

Town Centres

• British Land portfolio well positioned to deliver rental and value growth

1001999 2001 2003 2005 2007 2009

171 PMA Autumn 2010 forecast2 ONS

Retail: Prime Locations Outperforming Secondary

IPD Capital Return1 IPD ERV Growth1IPD Capital Return1

2000 = 100

IPD ERV Growth1

2000 = 100

250Prime Shopping Centres Prime Retail Warehouses

175Prime Shopping Centres Prime Retail Warehouses

200

Prime Retail Warehouses Secondary Shopping CentresSecondary Retail Warehouses

150

Prime Retail Warehouses Secondary Shopping CentresSecondary Retail Warehouses

150 125

100 100

50

00 01 02 03 04 05 06 07 08 09

75

00 01 02 03 04 05 06 07 08 09

1 IPD Quarterly Index 18

Retail: Mixed LFL Sales Performance But Margins Ahead

Like‐for‐like Sales Change%

Operating Margins1%%

DFSCarpetright

FocusWH Smith

MothercareB&QArgos

MaplinBlacksHMV

High Street retailers

Bulky goods retailers

%

PoundlandHomebase

DixonsJohn Lewis

WaterstonesCometBlacksFCUK

2009/10

2008/9

D b hHomebase

WickesH Samuel

Topps TilesNext

Clinton GroupDunelmHalfords

WaterstonesDFS

DreamsCarpetrightMothercare

WickesSports Direct

B&M BargainsB&QHMV

M&Coou d a d

Di UK t ilJD Sports

CometDreams

Carphone W'hseM&SBoots

MatalanErnest Jones

ArcadiaDebenhams

M lPets

PrimarkNext

DebenhamsNew Look

BootsWH Smith

M&SDreams

‐10% ‐5% 0% 5% 10% 15%

JJB SportsHobbycraft

Furniture VillageJohn Lewis

Pets at HomeDixons UK retail

‐15% ‐10% ‐5% 0% 5% 10% 15% 20%

MaplinDunelmHalfordsArcadiaMatalan

• Weak comparables• Loss of competitors• VAT rise• World Cup effect!

• Squeezed suppliers at time of weak Global demand• Reduced stock volumes• … resulting in less discounting and improved gross margins• Lower shipping/distribution costs• Other operating efficiencies, including staffing• Negotiating rent reductions with landlords 

1 PMA 19

g g

Retail: Shortage of New Prime Retail Locations

Retail Development Starts1

16

18Supermarkets Town Centre  Retail Warehouses

Retail Development Starts1

m sq ft

12

14

16

8

10

2

4

6

0

2

1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 to datedate

1 PMA 20

Offices: Demand For Modern Working Environments

Average City Development Size1 City & West End Take up1Average City Development Size1

175

City & West End Take‐up1

12’000 sq ft m sq ft

125

150

9

Other

Grade A

75

1006

50

75

3

0

25

82 85 88 91 94 97 00 03 06 09

0

FY 05 FY 06 FY 07 FY 08 FY 09 Q1 10

21

82 85 88 91 94 97 00 03 06 09 FY 05 FY 06 FY 07 FY 08 FY 09 Q1 10

1 Jones Lang LaSalle

Offices: Significant Central London Lease Expiries

City & West End Lease Expiries1 Known City & West End Requirements

6W t E d Cit

m sq ft

City & West End Lease Expiries1 Known City & West End Requirements

Sq ft

CityWest End City

y

Bloomberg 500,000

Schroders 250,000

Bank of America 200,0004 Aon 130,000 – 180,000

Trowers & Hamlins 110,000

2

West End

Google 150,000

Ogilvy & Mather 120,000 ‐ 150,000

C i l 100 000 12 000

02010 2011 2012 2013 2014 2015

NBC Universal 100,000 – 125,000

National Magazines 80,000 – 120,000

Yahoo 80,000 – 115,000

22

2010 2011 2012 2013 2014 2015

1 Drivers Jonas Deloitte

Offices: Shortage Of Prime London Space

Central London Development1 Major London Offices Under Construction

16Available (under construction) Completed

m sq ft

Central London Development1 Major London Offices Under Construction

‘000 Sq ft

St Botolphs 523

12

14

Available (under construction) Completed p

Heron Tower  440

Cannon Place  389

Central Saint Giles  375

8

10 NEQ, Regent’s Place 380

200 Aldersgate   370

One New Change  340

4

6

g

Riverbank House  292

62 Buckingham Gate 269

Angel Building  258

0

2

85 87 89 91 93 95 97 99 01 03 05 07 09 11 13

g g

Quadrant 3, Regent’s Street  200

Plus 5 Broadgate (700,000 sq ft) with 18 year pre‐let to UBS at £54.50 psf with annual RPI increases2

23

85 87 89 91 93 95 97 99 01 03 05 07 09 11 13

1 Drivers Jonas Deloitte2 Subject to planning approval

p

Offices: Future Potential London Developments

Potential West End Office DevelopmentsPotential City Office Developments Potential West End Office Developments

‘000 Sq ft

Victoria Transport Interchange 911

Potential City Office Developments

‘000 Sq ft

100 Bishopsgate  770 p g

Noho Square, Mortimer Street 345

10‐11 Babmaes Street 152

1‐7 Howick Place 135

p g

20 Fenchurch Street  687

122 Leadenhall Street  610

Walbrook Square  400

84‐90 Regent’s Street 134

79‐97 Wigmore Street 109

q

Fore Street Site  220

International House  200

71 Queen Victoria Street  190Q

12 Finsbury Circus  170

70 Mark Lane  165

6 Bevis Marks  160

8‐10 Moorgate  125

24

Offices: Capturing Demand for Prime Property

• 800,000 sq ft of London office lettings in first 6 months of 2010

• 500,000 sq ft of new lettings and lease renewals across the retail portfolio

• Like‐for‐like income up 1.9% year‐on‐year compared with June 2009 

100British Land IPD

Occupancy Rate (%)

British Land (underlying1)

94

97

88

91

85

88

Q1 09 Q2 09 Q3 09 Q4 09 Q1 10

25

Q1 09 Q2 09 Q3 09 Q4 09 Q1 10

1 Including accommodation subject to asset management and under offer

Offices: Prime London Rents Growing Strongly

£psf

100

120

City West End  Docklands

80

60

20

40

0

86 88 90 92 94 96 98 00 02 04 06 08 10 12 14

1 PMA Autumn 2010 Forecasts 26

Opportunity for Further Value Creation

27

Strong Balance Sheet And Access To Capital

Financing statistics L d b iFinancing statistics

As at 30 June 20101

Portfolio valuation £8.7bn

• Long average debt maturity 

• Broad sources of existing drawn debt

EPRA Net debt £4.1bn

LTV 46%

• Substantial committed undrawn facilities

• Improving trend for lending markets for high lit dit

LTV ‐ Group 24%

Average debt maturity 11.0 years

quality credit

• Gearing policy adapted to market cycles –maximum 55% LTV

Average interest rate 5.2%

Group debt maturing ‐ next 3 years £427mGroup debt maturing  next 3 years £427m

Committed undrawn facilities – Group  £2.9bn

281 With proportional consolidation of Funds & JVs (unless stated as Group)

Substantial Committed Undrawn Facilities

Maturity Profile of Committed Undrawn Facilities £2 9b f i d d

£m (as at 30 June 2010)

Maturity Profile of Committed Undrawn Facilities 

3,000

• £2.9bn of committed undrawn facilities

• £1.6bn with a maturity of more 

2,500

ythan 3 years

• Average margin of 47 bps over LIBOR

1,500

2,000 LIBOR

1,000

0

500

2010 2011 2012 2013 201 201 2016

29

2010 2011 2012 2013 2014 2015 2016

New Office Developments Create Further Value

Regent’s Place (NEQ) 2 14 Baker Street 5 BroadgateRegent s Place (NEQ)• 500,000 sq ft1

• £232m development cost2

• Completion 2013

2‐14 Baker Street• 139,000 sq ft• £79m development cost2

• Completion 2013

5 Broadgate• c.700,000 sq ft• c.£175m development cost2,3

• Target completion 2014

30

1 Includes 120,000 sq ft of residential2 Cost to complete (excluding land and notional interest)3 BL Share – detailed cost, areas and planning subject to agreement and planning

New Development For UBS: 5 Broadgate 

• Proposed 700,000 sq ft building

• Agreement for leases with UBS to occupy entire building 

• Average lease length 18.2 years

• Initial rent of £54.50 psf with annual RPI linked increases (0‐4% pa)

• Initial development yield of 7%   

31

Future Office Development Potential: Leadenhall

• Planning consent for a 47 storey building

• 610,000 sq ft

• Floor plates range from 20,000 sq ft at the bottom to 6,000 sq ft at the topp

• Demolition and the preliminary basement works are completed

• Development under consideration and exploring interest from potential partnerspotential partners 

32

Creating Value Through Office Development

• Largest office developer in Central London over the past five years

l d f i• Completed 3.8m sq ft since 2004

• 54% of schemes were pre‐let with typical lease terms of around 20 years

• Over 95% of developments let or sold 

Willis Building( ld)

201 Bishopsgate & Broadgate Tower (85% let)

RopemakerPlantation Place (sold)

Plantation Place South (sold) York House

(100% l t)

(sold)

35 BasinghallStreet (sold)

1 Coleman

Ludgate West (sold)

pPlace (95% let)

10 & 20 Triton Street (95% let)(100% let) 1 Coleman

Street (sold)(95% let)

20040.9m sq ft

20060.1m sq ft

20071.0m sq ft

20080.8m sq ft

20091.0m sq ft

33

201 Bishopsgate & Broadgate Tower

• Completed in 2008

• 35 storey tower and 13 storey building

• 822,000 sq ft

• 58% pre‐let to Henderson Global investors, Mayer Brown and Reed Smith

201 Bi h t 97% l t d• 201 Bishopsgate 97% let and Broadgate Tower 73% let 

• Contracted annual income £33mContracted annual income £33m 

• Average lease 14 years

34

Ropemaker Place

• New office development completed in May 2009

• 594,000 sq ft building over 20 floors

Cl M d Li l• Close to Moorgate and Liverpool Street transport hubs

• 95% occupied: average lease 16 years

• Contracted annual income £25m

• Occupiers include major financial i i i l diservices companies, including 

– The Bank of Tokyo‐Mitsubishi, Macquarie Group and Markit

35

10 & 20 Triton Street, Regent’s Place

• Second phase of development of Regent’s Place completed end‐2009

• Two buildings totalling 376,000 sq ft of officesof offices

• 110,000 sq ft of residential pre‐sold ahead of expectations

• 10 Triton Street offices fully let to Aegis

• Contracted annual income £16mContracted annual income £16m

• 20 Triton Street  93% let with range of quality occupiers, including

– Gazprom, Lend Lease, Ricoh Europe and Dimensional Fund Advisors

36

Future Potential From Retail Developments

Potential Retail Extensions Glasgow Fort Shopping ParkPotential Retail Extensions 

Sq ft (’000)

BLShare

Whiteley Village 322  50%

Glasgow Fort Shopping Park 

y g

Glasgow Fort 175 36%

Broughton Park 140 36%

Fort Kinnaird 110 16%Fort Kinnaird 110 16%

Total 747

37

Market Outlook: Investment Opportunities

• Shortage of prime with significant IPD Equivalent Yields (Lowest vs Highest)1• Shortage of prime with significant investor demand

• Distressed assets beginning to come to 

IPD Equivalent Yields (Lowest vs. Highest)1

16

Low yield High yield

Yield (%)

Distressed assets beginning to come to market but generally poor quality

• Secondary values set to move out10

12

14

• Continuing to screen significant number of opportunities

6

8

10

• Better value where assets require repositioning

2

4

6

0

2

Shops ShoppingCentres

RetailParks

LondonOffices

ProvincialOffices

Industrial

381 IPD Quarterly Index (June 2010)

APPENDIX

39

Dividends

ll 20 0/ di id d f 26 fl i FY 2010 Dividend Cover• Full year 2010/11 dividend of 26p reflecting

− Strong income profile from prime portfolio 

− Embedded growth potential from lettings and asset

FY 2010 Dividend Cover 

On Earnings 1.1xEmbedded growth potential from lettings and asset management

− Future earnings growth from capital recycling and investments

On cash profits2 0.9x

investments 

• Approach remains to pass income through to investors consistent with sustainable rental growth

Cash dividend (i.e. exc. scrip) on cash profits2,3

1.4x

40

1 Property Income Distribution (PID) of the cash dividend is nil2 Underlying EPS less spreading of tenant incentives & guaranteed rent increases, and non‐cash administrative expenses3 40% scrip take up for last 4 quarters

Yield Profile

As at 30 June 2010 Net Gross Gross Gross NetAs at 30 June 2010

Excluding developments (%)NetInitialYield1

GrossInitial Yield2

GrossTop‐up 

Initial Yield2,3

GrossReversionary 

Yield2

NetEquivalent Yield1

Retail Warehouses 5.6 6.1 6.3 6.5 6.0

Superstores 5.1 5.4 5.4 5.5 5.2

Shopping Centres 5.8 6.5 6.7 7.3 6.2

Department Stores4 5.7 6.1 6.9 7.0 6.7

All Retail 5.5 6.0 6.2 6.5 5.9

City 4.6 5.0 7.1 6.3 6.0y

West End 4.4 4.7 5.9 5.9 5.7

All Offices 4.5 4.9 6.7 6.1 5.9

Other 8.2 8.4 9.5 9.9 9.7

Total 5.3 5.7 6.4 6.5 6.0

41

1 After purchaser’s costs2 Without notional purchaser’s costs3 Adding back rent frees and contracted rental uplifts 4 Including High Street

Average Rent psf

As at 30 June 2010 Rent ERVAs at 30 June 2010

Excluding developments 

Rent

£psf1ERV

£psf2

Retail Warehouses 22 24

S t 21 21Superstores 21 21

Shopping Centres 27 29

Department Stores3 11 13

All Retail 21 22

City 46 41

West End 42 41West End 42 41

All Offices 44 41

Other 16 18

Total 25 26

42

1 Average contracted passing rent (post expiry of rent free periods) 2 Average Headline ERV3 Including High Street

Future Rent Profile

A li d R t C h Fl B iAnnualised Rent – Cash Flow Basis

As at 30 June 2010

Excluding developmentsRetail£m pa

Office£m pa

Other£m pa

Total£m pa

Annualised rents 336 132 16 484

Contracted from fixed uplifts and expiry of rent free periods1

12 47 2 61and expiry of rent free periods1

Rent reviews & lease renewals1,2 7 (32) ‐ (25)

Letting of current vacant space3 10 18 1 29

Reversionary income  365 165 19 549

43

1 Within next 5 years2 Including future portfolio voids on break/expiry3 Includes space under offer

Annualised Rent & Gross Rental Income Profile

Y 30 J (£ ) 2011 2012 2013 2014 2015Year to 30 June (£m) 2011 2012 2013 2014 2015

Annualised rent – cash flow basis1 484 484 484 484 484

Contracted from fixed uplifts andContracted from fixed uplifts and expiry of rent free periods2

15 25 38 58 61

Total contracted 499 509 522 542 545

Gross rental income – accounting basis 526 526 526 526 526

Difference (27) (17) (4) 16 19

441 Excluding developments and future lease breaks/expiries2 Cumulative

Rental Income Subject To Lease Break Or Expiry

Year to 30 June (£m) 2011 2012 2013 2014 2015 2011 13 2011 15Year to 30 June (£m) 2011 2012 2013 2014 2015 2011‐13 2011‐15

Retail Warehouses 2 1 5 4 6 8 18

Superstores ‐ ‐ ‐ ‐ ‐ ‐ ‐

Shopping Centres 4 2 4 6 3 10 19

Department Stores1 ‐ ‐ ‐ ‐ ‐ ‐ ‐

All Retail 6 3 9 10 9 18 37All Retail 6 3 9 10 9 18 37

City 5 ‐ 3 8 10 8 26

West End 2 5 7 ‐ 4 14 18

Provincial ‐ ‐ ‐ ‐ ‐ ‐ ‐

All Offices 7 5 10 8 14 22 44

Other ‐ ‐ 1 ‐ ‐ 1 ‐Other ‐ ‐ 1 ‐ ‐ 1 ‐

Total 13 8 20 18 23 41 81

% of Total Rent 2% 2% 4% 4% 4% 8% 16%

451 Including High Street

Portfolio Valuation By Sector

As at 30 June 2010 Group Funds & Total Portfolio Change %2As at 30 June 2010 Group Funds & Total Portfolio Change %

£m JVs £m1 £m % Q1 10/11

Retail Warehouses 1,686 988 2,674 30.8 0.6

Superstores 169 1 145 1 314 15 2 0 8Superstores 169 1,145 1,314 15.2 0.8

Shopping Centres 204 1,003 1,207 13.9 1.7

Department Stores3 437 ‐ 437 5.0 0.1

All Retail 2,496 3,136 5,632 64.9 0.9

City4 508 1,272 1,780 20.5 2.2

West End4 1,030 ‐ 1,030 11.9 2.7

Provincial4 29 7 36 0.4 6.8

All Offices4 1,567 1,279 2,846 32.8 2.4

Other 191 13 204 2.3 1.4Other 191 13 204 2.3 1.4

Total 4,254 4,428 8,682 100.0 1.4

1 Group’s share of properties in Funds & Joint Ventures

46

Group s share of properties in Funds & Joint Ventures2 Valuation movement during the period (after taking account of capital expenditure) of properties held at the balance sheet date, including developments (classified by end use) and purchases3 Including High Street with a total value of £20m4 Including developments with a total value of £237m

Net Debt

As at 30 June 2010 Group Funds & JVs TotalAs at 30 June 2010 Group                                 £m

Funds & JVs                                £m

Total                                     £m

Gross debt  1,769 2,848 4,617

Market value of derivatives  48 115 163

Cash & liquid investments (266) (307) (573)

EPRA adjustments1 (50) (101) (155)j ( ) ( ) ( )

EPRA Net debt 1,501 2,551 4,052

Average interest rate 5.3% 5.1% 5.2%

Interest cover2 2.8x 1.9x 2.2x

471 Excludes mark to market on effective cash flow hedges and related debt adjustments2 Underlying profit before interest and tax (UPBIT)/net interest

Debt Maturity Profile

Funds/JV Non Recourse Finance (BL Share £2.8bn)

700700

Group Debt (£1.8bn)1

£m (as at 30 June 2010) £m (as at 30 June 2010)

500

600

500

600

300

400

300

400

200

300

200

300

0

100

2011 2016 2021 2026 2031

0

100

2011 2016 2021 2026 2031 2036

481 Group net debt is £1.5bn, including £266m of cash and liquid investments

Prospective Developments

S S f (’000) l iSector Sq ft (’000) Planning

The Leadenhall Building City Office 610 Detailed

Colmore Row Provincial Office 280 Detailed

Meadowhall Additional Land Mixed Use 2,200 Outline

New Century Park1 Mixed Use 1,000 Outline

h l 2 d l l d l l dTheale2 Residential Potential Land Sale Detailed

Euston Station3 Mixed Use Master Planning in Progress Pending

Canada Water4 Mixed Use Master Planning in Progress Outline/Detailed

49

1 Joint Venture with Goodman Real Estate (UK) Limited2 Subject to development agreement with Countryside Properties Limited3 In partnership with Network Rail4 Joint Venture with Canada Quays Limited

Disclaimer

The information contained in this presentation has been extracted largely from the First Quarter Report for the three months ended 30 June 2010.The information contained in this presentation has been extracted largely from the First Quarter Report for the three months ended 30 June 2010.

This presentation may contain certain “forward‐looking” statements. By their nature, forward‐looking statements involve risk and uncertainty because theyrelate to future events and circumstances. Actual outcomes and results may differ materially from any outcomes or results expressed or implied by suchforward‐looking statements. Any forward‐looking statements made by or on behalf of British Land speak only as of the date they are made and norepresentation or warranty is given in relation to them, including as to their completeness or accuracy or the basis on which they were prepared. British Landdoes not undertake to update forward‐looking statements to reflect any changes in British Land’s expectations with regard thereto or any changes in events,p g y g p g y g ,conditions or circumstances on which any such statement is based.

This presentation is made only to investment professionals as defined in Article 19 of the Financial Services and Markets Act 2000 (Financial Promotion) Order2005 ('the FP Order'). The content of this presentation has not been approved by a person authorised under the Financial Services and Markets Act 2000(“FSMA”). Accordingly, this presentation may only be communicated in the UK with the benefit of an exemption set out in the FP Order. An investmentprofessional includes:

(i) a person who is authorised or exempt under FSMA; and

(ii) a person who invests, or can reasonably be expected to invest, on a professional basis for the purposes of a business carried on by him; and

(iii) a government, local authority (whether in the United Kingdom or elsewhere) or an international organisation; and

(iv) any director, officer, executive or employee of any such person when acting in that capacity.

This presentation is published solely for information purposes. This presentation does not constitute an offer to sell or the solicitation of an offer to subscribe foror buy any security, nor a solicitation of any vote or approval in any jurisdiction, nor shall there be any sale, issuance or transfer of the securities referred to inthis presentation in any jurisdiction in contravention of applicable law. No representation or warranty, either express or implied, is provided in relation to theaccuracy, completeness or reliability of the information contained herein.

The distribution of this presentation in jurisdictions other than the UK may be restricted by law and therefore any persons who are subject to the laws of anyd h h h h ld f h l b d b l bl h h b d f hjurisdiction other than the UK should inform themselves about, and observe, any applicable requirements. This presentation has been prepared for the purpose

of complying with English law and the City Code and the information disclosed may not be the same as that which would have been disclosed if this presentationhad been prepared in accordance with the laws of jurisdictions outside the UK.

All opinions expressed in this presentation are subject to change without notice and may differ from opinions expressed elsewhere.

50