capital markets day · 02 redefine international p.l.c. capital markets day note: webcast listeners...
TRANSCRIPT
Capital Markets DayBecoming the UK’s leading
income focused REIT6 February 2017
Introduction and Strategic Overview
01Redefine International P.L.C.
Capital Markets Day
Mike Watters Chief Executive Officer
02Redefine International P.L.C.
Capital Markets Day
Note: Webcast listeners please email all questions to [email protected]
Asset showcase videos and an introduction to key members of our management team will be shown throughout the presentation
Agenda
Introduction and Strategic Overview Mike Watters (CEO)
Income Focused Portfolio Adrian Horsburgh (Property Director)
Break
Efficient Capital Structure Stephen Oakenfull (Deputy CEO)
Financial Discipline Donald Grant (CFO)
Conclusion and Outlook Mike Watters (CEO)
Q&A
03Redefi ne International P.L.C.
Capital Markets Day
Introduction to Redefi ne International P.L.C.Who we are and what we do
• Income focused UK‑REIT
• Superior, sustainable and growing shareholder distributions
• £1.53bn portfolio
– Retail (55%), Offi ces (19%), Distribution (11%) and Hotels (15%)
• Secure income:
– Diversifi ed portfolio and tenant base
– 7.8 years WAULT with over 30% indexed leases
– 6.9 years debt maturity with over 95% of interest costs fi xed or capped
– Industry leading cost ratios
A FTSE 250Company
Europe’s two largest real estate markets:
Top 20 assets by market value
UK
ManchesterLeeds
EdinburghLondonLondon
Bristol
Germany
Berlin
Hamburg
77%UK
23%Germany
04Redefi ne International P.L.C.
Capital Markets Day
10 year evolution to an established FTSE 250 UK REIT
UK-REIT conversion
>£700m market cap
Market value of portfolio £1.53bn£490m AUK deal
Internalisation of management>£700m market cap
Internalisation of management>£700m market capEPRA
EPRAEPRA
Internalisation of managementEPRA
Internalisation of management
EPRA
EPRAMarket value of portfolio £1.53bn
EPRAMarket value of portfolio £1.53bn
£490m AUK dealEPRA
£490m AUK dealMain board listed
Main board listed
Main board listed
Main board listed Dual listed JSE
Dual listed JSE
Dual listed JSE
Dual listed JSE
Dual listed JSE
Internalisation of management
Internalisation of managementInternalisation of management
Internalisation of management
Internalisation of management
Internalisation of managementInternalisation of management
Internalisation of managementInternalisation of management
Internalisation of managementFTSE250
FTSE250Market value of portfolio £1.53bn
FTSE250Market value of portfolio £1.53bn
FTSE250
FTSE250
FTSE250
FTSE250
GPR Index
GPR Index
GPR Index
Internalisation of managementGPR Index
Internalisation of managementInternalisation of managementEPRA
Internalisation of managementGPR Index
Internalisation of managementEPRA
Internalisation of management
GPR Index
RBDL hotel managementRBDL hotel managementEPRARBDL hotel managementEPRA >£700m market capRBDL hotel management
>£700m market capInternalisation of management
RBDL hotel management
Internalisation of management>£700m market cap
Internalisation of management>£700m market cap
RBDL hotel management>£700m market cap
Internalisation of management>£700m market cap
RBDL hotel management
RBDL hotel management
Incentives aligned to shareholder returnsInternalisation of management
Incentives aligned to shareholder returnsInternalisation of management
Incentives aligned to shareholder returns
Corporate Governance
Corporate Governance
Corporate Governance
>£700m market capCorporate Governance
>£700m market capInternalisation of management
Corporate Governance
Internalisation of management>£700m market cap
Internalisation of management>£700m market cap
Corporate Governance>£700m market cap
Internalisation of management>£700m market cap
Strengthened Board
Market value of portfolio £1.53bnStrengthened Board
Market value of portfolio £1.53bn
Strengthened Board
Strengthened BoardMarket value of portfolio £1.53bn
Strengthened BoardMarket value of portfolio £1.53bn
Strengthened Board
SustainabilityGPR Index
SustainabilityGPR Index
Sustainability>£700m market cap
Sustainability>£700m market cap
Sustainability
Sustainability
Sustainability
Sustainability
SustainabilityMarket value of portfolio £1.53bn
SustainabilityMarket value of portfolio £1.53bnGRESB
GRESB
UK-REIT conversionGRESB
UK-REIT conversion
GRESB
GRESBMarket value of portfolio £1.53bn
GRESBMarket value of portfolio £1.53bn
GRESB
FTSE4GoodMarket value of portfolio £1.53bn
FTSE4GoodMarket value of portfolio £1.53bn
FTSE4Good FTSE4GoodDual listed JSE
FTSE4GoodDual listed JSE
Green Fest
Green Fest
Green Fest
Green Fest
Foundation
UK-REIT conversionFoundation
UK-REIT conversionInternalisation of management
FoundationInternalisation of management
Foundation
UK-REIT conversionFoundation
UK-REIT conversion
UK-REIT conversion
UK-REIT conversion
UK-REIT conversion
UK-REIT conversion
>£700m market capUK-REIT conversion
>£700m market cap
The foundations have been laid to support future income and value growth
05Redefine International P.L.C.
Capital Markets Day
Introducing the management team
• Lean but intensive management
– Broad experience base
– Allows flexible, fast and efficient decision making
• Incentives aligned to shareholder returns
• Specialists in our various markets and functions
• Entrepreneurial approach balanced with disciplined asset management and capital recycling
• 36 permanent employees at the centre, 32 in the UK and 4 in Germany
• 6 shopping centre managers and 184 staff employed by Redefine Retail Management(1)
• All low margin activities are outsourced
Skill set to deliver end-to-end value(1) Cost included in service charge
06Redefi ne International P.L.C.
Capital Markets Day
Recurring and predictable income returns are increasingly highly valued in a low economic growth and low interest rate environment
Why income – the case for our business model
• 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 infl uence income returns
• Short term capital returns are volatile and affected by external factors
• Increasing income returns will drive sustainable capital growth
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
07Redefi ne International P.L.C.
Capital Markets Day
The role of REITs in an income deprived environment
• Superior vehicle to traditional property funds
• Well placed to provide investors with access to commercial
real estate returns, with a corporate wrapper which provides:
– Corporate governance and transparency
– Scale and liquidity
– Asset backed income
– Regular, sustainable and growing income‑led total returns
– Effi cient gearing
– Optimal overhead structure
– Transparent tax structure
• Alignment to global REIT capital requirements
REITs provide institutional and retail investors with access to transparent and liquid commercial real estate returns
Retail fund flows
2007(3)
Source: Lazarus analysis
Net retail sales, property funds (12 month rolling, £bn, LHS)Sector NAV premium/discount (%, RHS)
(2)
(1)
0
1
2
3
4
(50)
(40)
(30)
(20)
(10)
0
10
20
20132012201120102009 2014 20152008 2016
08Redefine International P.L.C.
Capital Markets Day
• Efficient at converting gross income to shareholder returns
• Active at generating marginal income
• Effective at income-led asset management
• Solid allocation of capital
• Diversification benefits
• Proven track record
We are well placed to take the lead on income
Income is part of our DNA and an essential part of our investment strategy
09Redefi ne International P.L.C.
Capital Markets Day
Income focused – Strategy
• Sustainable long term income – infl ation linked
• Secure and growing distributions
• Sensible debt levels
• Limited volatility through the property cycle
Our business model is designed to continue provide superior, sustainable and growing shareholder returns
10Redefi ne International P.L.C.
Capital Markets Day
A strategy suitable for interesting times
Deliberate decision to be more conservative to protect long term shareholder interests and reposition for attractive growth
• Decision to be more fi scally conservative
• Move to EPRA distribution metric
• Dividend to be rebased
• Strong push to sell properties that have reached the “sell by” date for us
• Higher growth rates going forward
I think you will agree that we are living in most interesting times.J Chamberlain, 1898
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Capital Markets Day
Strategic Priority: Become the UK’s leading income focused REIT
Superior, sustainable and growing shareholder returns
Scaleable Business
Efficient Capital Structure
Income Focused Portfolio
Financial Discipline
• High quality portfolio
• Limited volatility through the cycle
• Invest in opportunities across sectors
• Sufficient scale
• Cost efficient portfolio
• Efficient conversion of rental income into profit
• EPRA cost ratio (excl direct vacancies) <15%
• Covered dividend
• >£1bn market cap
• Improved liquidity
• Recycle capital
• Limit volatility
• Multiple sources of capital
• Strong balance sheet
• Operational flexibility
• Competitive cost of capital
• Committed to deliver upper quartile income yield
• Secure income
• Total returns driven by “real” income growth
• Capital appreciation
12Redefi ne International P.L.C.
Capital Markets Day
Strategic Priority: Become the UK’s leading income focused REIT
Superior, sustainable and growing shareholder returns
Scaleable Business
Effi cient Capital Structure
Income Focused Portfolio
Financial Discipline
• High quality portfolio
• Limited volatility through the cycle
• Invest in opportunities across sectors
• Suffi cient scale
• Cost effi cient portfolio
• Effi cient conversion of rental income into profi t
• EPRA cost ratio (excl direct vacancies) <15%
• Covered dividend
• >£1bn market cap
• Improved liquidity
• Recycle capital
• Limit volatility
• Multiple sources of capital
• Strong balance sheet
• Operational fl exibility
• Competitive cost of capital
• Committed to deliver upper quartile income yield
• Secure income
• Total returns driven by “real” income growth
• Capital appreciation
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Capital Markets Day
Income Focused Portfolio
Adrian Horsburgh Property Director
14Redefi ne International P.L.C.
Capital Markets Day
Strategic Priority: Income Focused Portfolio
Income Focused Portfolio
Superior, sustainable and growing shareholder returns
Scaleable Business
Effi cient Capital Structure
Income Focused Portfolio
Financial Discipline
• High quality portfolio
• Limited volatility through the cycle
• Invest in opportunities across sectors
• Suffi cient scale
• Cost effi cient portfolio
• Effi cient conversion of rental income into profi t
• EPRA cost ratio (excl direct vacancies) <15%
• Covered dividend
• >£1bn market cap
• Improved liquidity
• Recycle capital
• Limit volatility
• Multiple sources of capital
• Strong balance sheet
• Operational fl exibility
• Competitive cost of capital
• Committed to deliver upper quartile income yield
• Secure income
• Total returns driven by “real” income growth
• Capital appreciation
15Redefine International P.L.C.
Capital Markets Day
Portfolio last reported
Market value £1.5bn as at 31 August 2016
Completed and integrated the transformational £490m AUK acquisition; ongoing steps to significantly improve the quality of the portfolio
Retail: 55% Commercial: 30%Hotels: 15%
UK shopping centres: 22% German retail: 20% UK retail parks: 13%
Logistics: 11%Offices: 19%
5.8%EPRA NIY
7.8yrsWAULT
97.7%Occupancy
77%UK
23%Germany
Sector specialism across Retail, Office, Logistics and Hotels
Income Focused Portfolio
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Capital Markets Day
Income-led property philosophy and strategyPrimary focus on acquiring and owning assets underpinned by occupier demand
• Invest in property fundamentals rather than being sector specific
• Understand occupier demand and economic rents:
– Each asset has an income-led business plan with clearly identified opportunities to add value
– Ongoing investment in our assets
– Recycle capital from assets once value has been maximised
Owners of strong property fundamentals with clearly identified value-add opportunities to support future income security
and delivery of market beating growth
Distribution and Industrial
Retail Parks
Current targeted sectors:
Areas undergoing structural change
Income Focused Portfolio
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Capital Markets Day
Continuously improving quality of portfolio
• Economic growth locations
• Positive structural change
• Long WAULTS (8.2 years)
• Indexed rents (53% indexed)
• High cash on cash returns
• Continued void reduction (void 7.2%)
• Commercialisation
• Expansion capex focused on high yielding opportunities
• Reconfiguration of existing space
• Since 31 August 2016 disposed of £98.9m assets
41% Core secure
income
32% Growth income
20% Income-led asset
management opportunities
7% Mature assets
All values as reported for 31 August 2016
We aim to have approximately 70% of total returns driven by secure and growing income; remainder through active asset management
% portfolio by market value
Income Focused Portfolio
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Capital Markets Day
Resilient income profile with 80% of gross rental income beyond 5 years to first break option
Income securityClear income visibility with WAULT of 7.8 years supported by diversified portfolio
FY2017 FY2018 FY2019 FY2020 FY2021 FY2026+FY2025FY2024FY2023FY2022
UK Retail UK Hotels EuropeUK Commercial
5.03.1
1.6
6.84.1
10.4 9.77.5 7.1
44.7
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 31 August 2016 rental income Units
UK Government 5.4 10
B&Q 3.9 5
VBG(1) 3.5 4
Tesco 3.5 1
Edeka 3.3 34
Royal Mail 2.2 2
Primark 1.9 1
OBI 1.8 3
Debenhams 1.6 2
Wilko 1.6 4
(1) German government‑backed social insurance body (Note: sold post year end)All values as reported for 31 August 2016
Lease expiries to first break by gross rental income (%)
Income Focused Portfolio
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Capital Markets Day
Actively drive income growthCase study: £490m transformational AUK acquisition completed in March 2016
• Income yield (1) on purchase increased by 40 bps to 5.8%(2)
• Lettings – regional offices’ voids reduced from 20% to 3%(2)
• Distribution – rental growth +14% and WAULT +30%
• Retail Parks – 100% let and strong demand from F&B and leisure occupants
• Disposals – Grosvenor Street and Manchester, 14.6% premium to book value
210 Deansgate, Manchester
(1) EPRA topped up yield(2) Pro‑forma including 201 Deansgate, Manchester disposal and City Point, Leeds letting post 31 August 2016 Income
Focused Portfolio
20Redefine International P.L.C.
Capital Markets Day
Delivering on business plansCase study: Camino Park, Crawley
Business Plan assumption
Exit price
IRR
Geared IRR
£46.8m
7.6%
11.8%
Revised targets
Exit price
IRR
Geared IRR
£55m (+17.5%)
11.5% (+390bps)
18.4% (+660 bps)
At acquisition
Price
Income
ERV
Vacancy
£42m
£2.4m(1)
£3.0m
4.1%(1)
Only 11 months later
Price
Income
ERV
Vacancy
£45m (+7.1%)
£2.7m (12.5%)
£3.2m (6.7%)
100% let
Every property has a business plan, each varies in its complexity, risk and return
(1) Following expiry of Northern Foods in December 2015 Income Focused Portfolio
21Redefi ne International P.L.C.
Capital Markets Day
Further asset management opportunities identifi ed
Clear pipeline of further income-led asset management opportunities
Short term1 – 2 years
Long term5+ years
Medium term3‑5 years
Leasing activity
Reconfi guration/expansions/development
Rental income opportunity pipeline
Income Focused Portfolio
Camino Park, Crawley
Charing Cross Road
Charing Cross RoadAlbion Street, Derby
Bahnhoff Center, Hamburg
Omnibus, Reigate
Crescent Centre, Bristol
Priory Retail Park, Merton
Banbury CrossRetail Park
The Arches Retail Park, Watford
City Arcaden, Ingolstadt
Charing Cross Road
Continued indexation
of circa 30% of portfolio
22Redefine International P.L.C.
Capital Markets Day
Market outlook supports our asset allocation decisionsLargely insulated from potential Brexit volatility
UK Commercial: Offices
• Limited supply and speculative development
• Secondary space lost to residential and student accommodation
• Resilient take up in West End (London) and Southbank
UK Retail
• Not all retail is bad
– Convenience and value growing
– “Right” retail parks show strong demand from leisure, F&B and commercialisation
• Residential development
• Inflation impact on retailers
UK Hotels
• London limited service hotels showing resilient trading performance
UK Commercial: Logistics
• Focused on mid box and last mile distribution
• Positive impact from online retailing
Germany
• Berlin and Hamburg Europe’s top two investment cities (source: ULI)
• Largely index linked (98%)
• Historically low interest rates
• Return of inflation and higher interest rates
• Growing urbanisation
• Expand within sphere of influence where metrics support the case
We will continue to invest capital where we see the ability to deliver the best risk-adjusted returns Income
Focused Portfolio
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Capital Markets Day
Disposal strategyAUK adds additional scale allowing a more active approach to repositioning our portfolio for growth
Strategic disposals
Low growth assets with potential long term structural income risks
VBG portfolio
• Acquired in JV in 2012
• Gross acquisition cost of €84.9m
• Yield on equity of c. 19%
• Sold in 2017 for €106.0m
• Geared IRR of 27%
Realising value following active asset management
Once income is maximised, through reconfiguration, refurbishment or lease activity, the asset is considered for potential disposal
Delta 900, Swindon
• Inherited through Wichford reverse take‑over
• Government tenant vacated in March 2014
• 15 year lease agreed with Oxford Brookes University at 20.8% above ERV
• Sale exchanged at £3.6m, a 31% premium to book value
Opportunistic disposals
Realise attractive prices are considered on a risk‑adjusted basis taking into consideration future capital commitments, planning and letting risk
201 Deansgate, Manchester
• Acquired as part of AUK transaction
• Purchase price of £25.8m
• Low initial yield
• Sold for £29.2m, 14% above book value
Higher quality portfolio to support longer term holds and lower transaction costs Income
Focused Portfolio
Conclusion: Income Focused Portfolio
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Capital Markets Day
Income Focused Portfolio
Sector/geographic agnostic
Property fundamentals
Leading income focused REIT
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Capital Markets Day
Efficient Capital Structure
Stephen Oakenfull Deputy Chief Executive
26Redefi ne International P.L.C.
Capital Markets Day
Strategic Priority: Effi cient Capital Structure
Superior, sustainable and growing shareholder returns
Scaleable Business
Effi cient Capital Structure
Income Focused Portfolio
Financial Discipline
• High quality portfolio
• Limited volatility through the cycle
• Invest in opportunities across sectors
• Suffi cient scale
• Cost effi cient portfolio
• Effi cient conversion of rental income into profi t
• EPRA cost ratio (excl direct vacancies) <15%
• Covered dividend
• >£1bn market cap
• Improved liquidity
• Recycle capital
• Limit volatility
• Multiple sources of capital
• Strong balance sheet
• Operational fl exibility
• Competitive cost of capital
• Committed to deliver upper quartile income yield
• Secure income
• Total returns driven by “real” income growth
• Capital appreciation
Effi cientCapital
Structure
27Redefine International P.L.C.
Capital Markets Day
• Weighted average debt maturity of 6.9 years
• No material maturities until 2020
• Weighted average cost of debt 3.4%
• Over 95% of debt at fixed or capped rates
• £303 million AUK facility provides flexible capital structure and cost of debt efficiencies
• Non‑recourse debt funding
• German assets funded with Euro debt providing natural FX hedge
• Net Euro exposure:(2)
– 21% of NAV
– 27% of EPS
Current capital structure last reported
(1) Net of £34.3m of cash(2) At 31 August 2016, prior to sale of VBG portfolio(3) Refinancing terms agreed to reduce LTV to 61.6% with LTV covenant of 85%
Proportionate borrowings (as at 31 August 2016)
LTV: 50.2%
LTV covenant ave: 68.9%
Weighted average maturity: 4.3 years
LTV: 70.2%(3)
LTV covenant ave: n/a
Weighted average maturity: 17.8 years
LTV: 59.7%
LTV covenant ave: 72.4%
Weighted average maturity: 3.1 years
LTV: 53.4%(1)
LTV covenant ave: 69.9%
UK bank debt £466.5m (55%)
Group £850.6m
UK-non bank (fixed rate) borrowings
£178.2m (21%)
Europe £205.9m (24%)
Well structured debt profile with covenant headroom
Efficient Capital
Structure
28Redefi ne International P.L.C.
Capital Markets Day
Progress since 31 August 2016
• Pro‑forma leverage reduced to 49.6%(1) from 53.4%
• £107.8m of sales completed at an average net initial yield of 6.2%
• Debt reduced by £55.4m at average cost of debt of 4.2%
Au
g 1
7
GBP
Euro
Refi/Sold/Repaid
Aggregation of UK facilities to support ambition to move to unsecured debt financing
New
Au
g 1
8
Au
g 1
9
Au
g 2
0
Au
g 2
1
Au
g 2
2
Au
g 2
3
Au
g 2
4
Au
g 2
5
Au
g 2
6
Au
g 2
7
Au
g 2
8
Au
g 2
9
Au
g 3
0
Au
g 3
1
Au
g 3
2
Au
g 3
3
Au
g 3
4
Au
g 3
5
Au
g 3
6
Au
g 3
7
Au
g 3
8
Au
g 3
9
Au
g 4
0
Au
g 4
1
Au
g 4
2
12.8
40.9
22.7
103.5
9.0 10.2
89.5
28.5
50.0
151.4373.1
121.5
Debt maturity profi le (£m)
All data stated on a pro‑forma basis [refl ecting disposals of and debt reduction of £55.4m since 31 August 2016](1) Prior to any potential reinvestment of disposal proceeds
Limited refi nancing risk
Effi cientCapital
Structure
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Capital Markets Day
Capital allocation
Target highest LTV facilities
• Increase covenant headroom on more highly geared facilities
• Greatest re-pricing benefit
• Typically removing amortisation and enhancing cash flow
UK non-bank debt(1) 31 August 2016 Pro-forma
Debt
Cost of debt
LTV
Share of net income(3)
£170.0m
5.8%
70.9%
50%
£146.0m
c. 5.6%(2)
61.6%
100%
Euro debt facility(1) 31 August 2016 Pro-forma
Debt
Cost of debt
Amortisation
LTV
£44.2m
3.68%
2.0% p/a
67.9%
£38.2m
c. 2.70%(2)
none
58.7%
Effective balance between leverage and reinvestment
Achieving marginal returns on equity in excess of our cost of debt
Yield on equity: c. 10.0%
Yield on equity: c. 9.8%
(1) Terms agreed, completion anticipated prior to 28 February 2017(2) Rates indicative and subject to completion(3) Restructuring terms include the “release” of a 50% income share (c. £1.5m pa) at a cost of c. £6.5m
Reducing leverage effectively whilst limiting impact on income
Efficient Capital
Structure
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Capital Markets Day
• Disposals programme based on outlook for individual assets and independent of decision to reduce leverage
• Immediate focus on disposals of:
– Assets where business plans have been successfully executed and value creation maximised
– Assets with bottom quartile IRRs, and often with negative rental and/or capital growth expectations
• Continued capital recycling will be driven by:
– Commitment to improve the quality and growth profile of the portfolio
– Reduction in exposure to assets which are expected to deliver IRRs below our cost of capital
– Opportunistic sales where offer prices are above our view of asset value/worth
Capital recycling & disposals
Disposals Reversionary Net rental since 31 August 2016 NIY on yield on income Proportionate (£m) Completion Book value Sales price sales price sales price impact
Watford, Exchange House October 2016 11.8 13.3 6.9% 5.8% (1.0)
VBG portfolio January 2017 40.6 44.1 6.5% 4.9% (3.0)
Manchester, Deansgate January 2017 25.5 29.2 3.6% 7.0%(1) (1.1)
Other smaller sales Q2/Q3 FY2017 21.0 21.2 9.0% 7.4% (2.0)
Total 98.9 107.8 6.2% 6.0% (7.1)
(1) Reversionary yield assumes 16,643 sqft of vacant space fully let(2) 31 August 2016 FX rates assumed Efficient
Capital Structure
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Capital Markets Day
Achieving a lower leverage model
• Refi nancing or extending facilities at lower leverage and a reduced margin
• Revised dividend policy and pay‑out ratio to provide recurring improvement in cashfl ow and net debt
• Capital recycling and investment to be undertaken at lower marginal leverage
• Resulting in a lower cost of capital to be used to support growth and investment
• Deleveraged balance sheet to support medium term target of moving toward a partially unsecured debt structure
Effi cientCapital
Structure
32Redefine International P.L.C.
Capital Markets Day
• Continued incremental gains anticipated on cost of debt
• Over 95% of debt fixed or capped rates
• Ratcheted margin structure of £303m AUK facility
• Targeting average cost of debt of 3.3% in the short term
Cost of debtTrack record of reducing leverage effectively
Strategic target to strengthen our balance sheet by incrementally reducing LTV to 45% – 50%
FY201140%
FY17 targetLTV (%)Weighted cost of debt (%)
60%
55%
50%
45%
65%
70%
75%
80%
85%
LTV (%)
75.4%
53.4%
3.3%
45–50%
5.0%
Cost of debt (%)
5.5%
3.0%
3.5%
4.0%
4.5%
5.0%
FY2013 FY2014 FY2016FY2015 FY2017FY2012
Historic weighted average cost of debt and LTV
Efficient Capital
Structure
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Capital Markets Day
Conclusion: 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
• Effective de‑leveraging
• Investment in growth assets
• Headroom and liquidity to capitalise on opportunities
Efficient Capital
Structure
34Redefine International P.L.C.
Capital Markets Day
Financial discipline
Donald Grant Chief Financial Officer
35Redefi ne International P.L.C.
Capital Markets Day
Strategic Priority: Financial Discipline
Superior, sustainable and growing shareholder returns
Scaleable Business
Effi cient Capital Structure
Income Focused Portfolio
Financial Discipline
• High quality portfolio
• Limited volatility through the cycle
• Invest in opportunities across sectors
• Suffi cient scale
• Cost effi cient portfolio
• Effi cient conversion of rental income into profi t
• EPRA cost ratio (excl direct vacancies) <15%
• Covered dividend
• >£1bn market cap
• Improved liquidity
• Recycle capital
• Limit volatility
• Multiple sources of capital
• Strong balance sheet
• Operational fl exibility
• Competitive cost of capital
• Committed to deliver upper quartile income yield
• Secure income
• Total returns driven by “real” income growth
• Capital appreciation
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Capital Markets Day
Financial DisciplineYesterday, today and tomorrow
Historic August 2016 Medium term target
Rent collection 75% – 85% within 7 days Typically 90% within 7 days >95% within 7 days
Cost control (EPRA cost ratio) Typically < 20% 14.9% Target 15% or less
Interest cover 1.6x 2.7x >3x
LTV > 80% in 2012 53.4% 45% – 50%
Cashflow Distributable earnings 100%(102% FY15)
Distributable earnings 100% EPRA based dividend with 90% – 95% payout ratio
Liquidity
• No RCF
• Asset specific debt
• Minimal cash reserves
• Improved financial flexibility
– £34m cash
– £23m undrawn facilities
– £155m RCF
• Increase committed facilities
• Hold minimal cash at hand to avoid drag on earnings
• Unsecured debt model with limited amortisation
Financial Discipline
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Capital Markets Day
Efficient conversion of rental income into profit
Managing an efficient cost base is one of our core competencies
• Focused on all items within the income statement
– Growing rental income;
– Managing and securing our cost of debt; and
– Driving efficiency from overheads
• Lean but extremely engaged management team and work force
• Close management of both administrative overheads and non‑recoverable costs (voids)
• Continuing to capitalise on low interest rate environment in both the UK and Germany
How do we do it?
• Cost conscious culture throughout the organisation
• Profitabillity focused performance management
• Competitive tendering, coupled with strong partnerships with advisers and service providers
• Create scale where possible to leverage volume discounts
• Flat internal structure, continued simplification of both Group structure and administrative processes
Financial Discipline
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Capital Markets Day
One of the lowest EPRA cost ratios in the industry14.9% at FY16
UK
REIT
1
UK
REIT
2
Red
efin
eIn
tern
atio
na
l
UK
REIT
4
UK
REIT
5
UK
REIT
6
UK
REIT
7
UK
REIT
8
UK
REIT
9
UK
REIT
10
UK
REIT
11
UK
REIT
12
UK
REIT
13
UK
REIT
14
UK
REIT
15
0
10
20
30
40
EPRA cost ratio excluding vacancy
Market capitalisation>£3.5 billion
Source: Company reports and broker estimates Financial Discipline
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Capital Markets Day
EPRA Based Dividend policy: Rebasing 2016Providing greater financial flexibility in support of repositioning and leverage reduction
FY16 FY16 Underlying earnings Reported Rebased [including share of joint venture] £m £m
Net rental income 89.3
Investment and other income 3.6
Administrative costs (11.4)
Net finance expense (33.1)
Wigan profit share (1.5) Profit share to be bought out from February 2017
Other items (2.8) Primarily minority interest
EPRA earnings 44.1 44.1
Company adjustments:
Reverse debt accretion charges (non‑cash) 3.1 3.1 Unwinding IFRS debt fair valuation
FX gains and losses (0.9) (0.9) Arising in the income statement on monetary items
Other items 3.1 — Discontinued Company adjustments
Underlying earnings 49.4 46.3
Profit on disposal of 16 Grosvenor Street (non‑recurring) 2.8 2.8 Included to normalise FY16 distributable earnings
Distributable earnings 52.2 49.1
Financial Discipline
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Capital Markets Day
Impact of H1 2017 disposals and debt prepayments
(1) Full year impact of AUK acquisition expected to add £2.5 million in net rent during 2017
(2) Disposals of £99 million at an average NIY of 6.2% completed or targeted to complete since August 2016
– Annualised net rental impact of £7.1 million (c. £4.1 million in 2017)
(3) Debt prepayments of £55.4 million at an average cost of 4.2% since August 2016
– Annualised finance cost saving of £4.0 million (c. £2.2 million in 2017)
(4) Profit share buy‑out achieved following debt prepayment £1.5 million per annum (c. £0.7 million in 2017)
3.1 0.3
4.1 2.2 0.7
2016 Distributableearnings
DiscontinuedCompany
adjustments(cash retained)
2016 Rebased (1)Additional AUK
rent net ofGrosvenor Street gain
(£2.5m-£2.8m)
(2)Net rental
impactof disposals(£7.1m p.a.)
(3)Finance
cost savingfollowing disposals
(£4.0m p.a.)
(4)Profit share
buy-out(£1.5m p.a)
Adjusted 2016applying growthand reinvestment
assumptions
£52.2m £49.1m £47.6m(2.6pps)
c. 2.7 – 2.8pps
c. £48m – £52m
• Weighted average shares on issue 31 August 2016: 1,637.2m
• Shares on issue at 31 January 2017: 1,811.7m
Earnings £m
Financial Discipline
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Medium term guidance
• Future dividends derived from EPRA based earnings with alignment to operating cashflow
• Pro‑forma weighted average cost of debt expected to fall to 3.3%
• Pro‑forma LTV down to 50%
Medium term target
Net rental income growth 2% – 5%
Administrative overheads 15% EPRA cost ratio
Cost of debt 3.2% – 3.4%
LTV 45% – 50%
EPS basis Underlying earnings, an EPRA based measure
Pay‑out ratio 90% – 95%
EPS growth 3% – 5%, achieving “real” inflation adjusted growth
Financial Discipline
Committed to continue delivering upper quartile distributions for our shareholders
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Outlook & Conclusion
Mike Watters Chief Executive Officer
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Capital Markets Day
Commitment to become the UK’s leading income-focused REITOutlook and conclusion
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
44Redefi ne International P.L.C.
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Appendices
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Capital Markets Day
Mike WattersCEOe: [email protected]
Stephen OakenfullDeputy CEOe: [email protected]
Donald GrantCFOe: [email protected]
Adrian HorsburghProperty Directore: [email protected]
Janine AckermannHead of Investor Relations e: [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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Capital Markets Day
Balanced exposure to retail, commercial and hotel sectors, supported by sector specialist asset managers
Where we operateGeographical focus in Europe’s two largest and most liquid property markets
Germany
Europe
UK Retail
15%
22%
36%
27%
UK Commercial
Market value£1.5bn
UK Hotels
UK
London
Jersey
Key UK Commercial UK Retail Hotels AUK German assets
All data as reported for 31 August 2016
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AUK acquisition consistent with investment philosophy to invest in assets with resilient and growing income returns
• Portfolio value increased by c.50%
• Transaction completed in two tranches:
– Tranche I: 10 assets, completed in September and October 2015 for £256m
– Tranche II: 9 assets, completed in March 2016 for £205m
• High quality institutional assets, 75% located in economic growth areas
• Pre‑completion disposal of Grosvenor Street, London realising £2.8m net profit
Transformational milestone achieved with AUK in 2016
AUK Retail valued at £200m(1)
(8 properties)AUK Offices valued at £132m(1)
(6 properties)AUK Distribution & Other valued at £125m(1) (5 properties)
All data as reported for 31 August 2016
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£1.5bn portfolio enhances ability to allocate & recycle capital into new opportunities to deliver the best risk adjusted returns
Portfolio repositioned for further income growthAUK improves portfolio exposure to sub-sectors with good income and value growth prospects
• Exposure to assets with stronger fundamentals providing income‑led asset management opportunities
• More active capital recycling
• Investment market remains strong for secure income
• Disposals to focus on mature and underperforming assets
98%
inde
xed le
ases &
slow
eco
nom
ic recovery
Ass
et m
an
agement and
recy
cling
o
pportunities
Modes
t ren
tal g
row
th
and o
ptim
ising
spa
ce
Modest renta
l gro
wth
and optimisin
g spac
e
50% in high dema
nd se
cto
rs with positive outlook
59% growth in loca
tions with econom
ic growth outlook
Greater London
Big 6 UK cities
Big 5 German cities
UK South
Dominant regionalshopping centres
Other
UK Retail Parks
UK Regional Offices
UK Hotels
UK London Offices
Germany
Other
UK Distribution & Industrial
UK Automotive
UK Shopping Centres
15%29%
10%
11%9%
17%
24%
12%
10%22%
22%
6%
4%2%
7%
Market value by geography Market value by sector
All data as reported for 31 August 2016
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Our strategy remains clearly focused on income-led total returns
Repositioning the portfolio for continued growthActively increasing our exposure to targeted sectors with positive growth expectations
Reported Reported Sector exposure Pro‑forma 2016(1) 2015 (1) by market value % % %
UK Shopping centres 23 22 33
UK Retail parks & other 14 13 —
UK Offices 13 16 12
UK Distribution & industrial 7 7 —
UK Automotive 5 4 4
UK Hotels 16 15 22
Germany 22 23 29
Overall 100 100 100 Camino Park, Crawley
(1) As reported at 31 August 2016
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Strategically targeted sectors
UK Retail – Market value £537m
UK Commercial – Market value £418m
UK Hotels – Market value £229m
Europe – Market value £345m
• 6 wholly‑owned regionally dominant shopping centres, tenanted by leading retailers including Tesco, Debenhams, Wilkos, Boots, H&M and TK Maxx
• 5 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 and DoubleTree by Hilton
• 25.3% holding in RedefineBDL, the UK’s largest independent hotel manager
• 15.5% holding in IHL, a hotel and leisure focused listed entity
• 4 Greater London offices some of which present alternate uses
• 20 regional offices, 5 AUK assets with high vacancies
• 2 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
• 87 properties in Germany
• Almost 50% by value contributed by 3 well located shopping centres in Berlin, Hamburg and Ingolstadt
• Other assets include retail parks, small discount supermarkets and government‑let offices
• Tenants are weighted to non‑discretionary food stores and discounters
Occupancy (%) 98.7
Lettable area (m2) 237,694
Annualised gross rental income (£m) 40.6
EPRA net initial yield (%) 6.3
# properties 14
WAULT (years) 8.8
Occupancy (%) 94.6
Lettable area (m2) 216,829
Annualised gross rental income (£m) 27.5
EPRA net initial yield (%) 5.4
# properties 64
WAULT (years) 6.1
Occupancy (%) 100.0
Lettable area (m2) 41,323
Annualised gross rental income (£m) 15.0
EPRA net initial yield (%) 6.1
# properties 9
WAULT (years) 10.3
Occupancy (%) 98.5
Lettable area (m2) 186,061
Annualised gross rental income (£m) 22.8
EPRA net initial yield (%) 5.6
# properties 87
WAULT (years) 6.5
All data as reported for 31 August 2016
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Portfolio analysis – reportedPortfolio summary
Annualised EPRA Weighted Values as at % of portfolio by Market gross rental topped Reversionary average EPRA voids 31 August 2016 market value value (£m) Properties Area (m2) income (£m) ERV (£m) EPRA NIY up yield yield lease length (by ERV) Indexed
UK Shopping Centres 22% 337.2 6 157,175 26.4 27.3 6.3% 6.5% 7.6% 8.4 1.9% 21.9%UK Retail Parks 12% 168.5 5 50,971 11.7 10.7 6.2% 6.5% 5.9% 8.1 — 2.1%UK Retail – other 2% 31.4 3 29,548 2.5 2.3 7.2% 7.2% 6.8% 16.7 1.0% —UK Retail 36% 537.1 14 237,694 40.6 40.3 6.3% 6.5% 7.0% 8.8 1.3% 14.8%UK Offices – Greater London 6% 91.4 4 15,706 4.3 5.0 3.8% 4.3% 5.1% 6.3 — 36.6%UK Offices – Regional 10% 158.5 20 79,433 12.7 13.2 6.1% 7.0% 7.8% 4.2 9.5% 25.3%UK Distribution and Industrial 7% 100.3 4 98,991 6.2 7.0 5.5% 5.8% 6.5% 6.0 4.0% —UK Automotive 4% 67.3 36 22,699 4.3 3.4 5.9% 5.9% 4.8% 11.8 — 67.2%UK Commercial 27% 417.5 64 216,829 27.5 28.6 5.4% 5.9% 6.4% 6.1 5.4% 27.8%Greater London & RBDL portfolio 12% 183.9 7 29,426 12.3 12.0 6.2% 6.2% 6.1% 9.3 — —Edinburgh, DoubleTree by Hilton 2% 31.1 1 7,250 2.0 2.5 6.0% 6.0% 7.4% 9.5 — 4.4%London, Enfield Travelodge 1% 14.2 1 4,647 0.7 0.7 4.8% 4.8% 4.8% 30.9 — 100.0%UK Hotels 15% 229.2 9 41,323 15.0 15.2 6.1% 6.1% 6.2% 10.3 — 5.3%Total UK 78% 1,183.8 87 495,846 83.1 84.1 5.9% 6.2% 6.6% 8.2 2.5% 17.4%German Shopping Centres 10% 160.2 3 34,903 8.7 9.9 4.5% 4.5% 5.8% 5.0 0.6% 98.1%German Supermarkets and Retail Parks 9% 144.4 80 129,037 10.7 10.6 6.2% 6.2% 6.9% 7.5 2.1% 97.0%German Offices 3% 40.6 4 22,121 3.4 2.2 7.4% 7.4% 5.1% 6.9 2.7% 99.9%Europe 22% 345.2 87 186,061 22.8 22.7 5.6% 5.6% 6.2% 6.5 1.5% 97.9%Total 100% 1,529.0 174 681,907 105.9 106.8 5.8% 6.1% 6.5% 7.8 2.3% 34.7%
Wholly owned 91% 1,388.1 98 575,898 94.8 97.2 5.8% 6.0% 6.6% 7.8 2.4% 28.1%Held in joint ventures (proportionate) 9% 140.9 76 106,009 11.1 9.6 6.7% 7.7% 6.6% 8.0 1.3% 91.8%Portfolio (excl AUK) 70% 1,072.4 155 464,727 77.2 76.7 6.1% 6.2% 6.7% 7.9 1.3% 46.2%AUK portfolio 30% 456.6 19 217,180 28.7 30.1 5.1% 5.7% 6.2% 7.6 4.6% 4.0%
All data as reported for 31 August 2016
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Portfolio analysis – pro-formaPortfolio summary
% of Annualised EPRA Weighted portfolio by Market gross rental topped Reversionary average EPRA voids Total portfolio – Pro–forma(1) market value value (£m) income (£m) ERV (£m) EPRA NIY up yield yield lease length (by ERV) % Indexed
UK Shopping Centres 23% 337.2 26.4 27.3 6.3% 6.5% 7.6% 8.4 1.9% 21.9%UK Retail Parks 12% 168.5 11.7 10.7 6.2% 6.5% 5.9% 8.1 — 2.1%UK Other Retail 2% 31.4 2.5 2.3 7.2% 7.2% 6.8% 16.7 1.0% —UK Retail 37% 537.1 40.6 40.3 6.3% 6.5% 7.0% 8.8 1.3% 14.8%UK Offices – Greater London 6% 79.6 3.3 4.2 3.2% 3.8% 4.9% 7.7 — 17.7%UK Offices – Regions 8% 110.5 7.9 8.3 5.3% 6.4% 7.0% 4.7 6.6% 16.0%UK Distribution and Industrial 7% 100.3 6.2 7.0 5.5% 5.8% 6.5% 6.0 4.0% —UK Automotive 5% 67.3 4.3 3.4 5.9% 5.9% 4.8% 11.8 — 67.2%UK Commercial 26% 357.7 21.7 22.9 5.0% 5.6% 6.0% 6.9 3.6% 21.8%Greater London & UK South portfolio 13% 183.9 12.3 12.0 6.2% 6.2% 6.1% 9.3 — —Edinburgh 2% 31.1 2.0 2.5 6.0% 6.0% 7.4% 9.5 — 4.4%Enfield Travelodge 1% 14.2 0.7 0.7 4.8% 4.8% 4.8% 30.9 — 100.0%UK Hotels 16% 229.2 15.0 15.2 6.1% 6.1% 6.2% 10.3 — 5.3%Total UK 79% 1,124.0 77.3 78.4 5.8% 6.1% 6.5% 8.6 1.7% 14.9%German Shopping Centres 11% 160.2 8.7 9.9 4.5% 4.5% 5.8% 5.0 0.6% 98.1%German Supermarkets and Retail Parks 10% 144.4 10.7 10.6 6.2% 6.2% 6.9% 7.5 2.1% 97.0%German Offices — — — — — — — — — —Europe 21% 304.6 19.4 20.5 5.3% 5.3% 6.3% 6.4 1.4% 97.5%Total 100% 1,428.6 96.7 98.9 5.7% 5.9% 6.5% 8.1 1.6% 31.5%
(1) Pro‑forma including all disposals and City Point, Leeds letting post 31 August 2016
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AUK portfolio – reported
% of portfolio Annualised EPRA Weighted AUK portfolio as at by market Market value gross rental Gross EPRA topped Reversionary average Voids (by 31 August 2016 value (£m) Properties Area (m2) income (£m) ERV (£m) NIY up yield yield lease length gross ERV) Indexed
Retail Parks 36.9% 168.5 5 50,971 11.7 10.7 6.2% 6.5% 5.9% 8.1 — 2.1%Retail – Other 6.9% 31.4 3 29,548 2.5 2.3 7.2% 7.2% 6.8% 16.7 1.0% —Retail Portfolio 43.8% 199.9 8 80,519 14.2 13.0 6.3% 6.6% 6.1% 9.6 0.2% 1.7%Offices – Greater London 10.7% 49.0 1 3,776 1.8 2.3 2.6% 3.4% 4.4% 5.2 — 32.3%Offices – Regional 18.1% 82.7 5 27,866 5.2 6.7 3.9% 5.2% 7.6% 4.3 16.2% 6.2%Offices – Total 28.8% 131.7 6 31,642 7.0 9.0 3.4% 4.5% 6.4% 4.5 12.1% 12.9%Distribution and Industrial 22.0% 100.3 4 98,991 6.2 7.0 5.5% 5.8% 6.5% 6.0 4.0% —Automotive 5.4% 24.7 1 6,028 1.3 1.1 5.2% 5.2% 4.2% 8.6 — —Other – Total 27.4% 125.0 5 105,019 7.5 8.1 5.4% 5.7% 6.1% 6.5 3.5% —Commercial Portfolio 56.2% 256.7 11 136,661 14.5 17.1 4.4% 5.1% 6.3% 5.6 8.0% 6.1%Total Portfolio 100.0% 456.6 19 217,180 28.7 30.1 5.1% 5.7% 6.2% 7.6 4.6% 4.0%
Tranche I 53.8% 245.7 10 154,431 17.2 16.8 6.2% 6.5% 6.4% 8.1 1.8% 1.4%Tranche II 46.2% 210.9 9 62,749 11.5 13.3 4.1% 4.9% 5.9% 6.8 8.2% 7.8%
Figures as at 31 August 2016
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AUK portfolio – pro forma
% of Annualised EPRA Weighted portfolio by Market gross rental topped Reversionary average EPRA voids AUK portfolio – Pro–forma(1) market value value (£m) income (£m) ERV (£m) EPRA NIY up yield yield lease length (by ERV) % Indexed
Retail Parks 39.1% 168.5 11.7 10.7 6.2% 6.5% 5.9% 8.1 — 2.1%Retail – other 7.3% 31.4 2.5 2.3 7.2% 7.2% 6.8% 16.7 1.0% —Retail Portfolio 46.4% 199.9 14.2 13.0 6.3% 6.6% 6.1% 9.6 0.2% 1.7%Offices – Greater London 11.4% 49.0 1.8 2.3 2.6% 3.4% 4.4% 5.2 — 32.3%Offices – Regional 13.3% 57.2 4.0 4.5 4.5% 6.4% 7.4% 4.7 8.5% 7.9%Offices – Total 24.7% 106.2 5.8 6.8 3.6% 5.0% 6.0% 4.9 5.6% 15.5%Distribution and Industrial 23.3% 100.3 6.2 7.0 5.5% 5.8% 6.5% 6.0 4.0% —Automotive 5.7% 24.7 1.3 1.1 5.2% 5.2% 4.2% 8.6 — —Other – Total 29.0% 125.0 7.5 8.1 5.4% 5.7% 6.0% 6.5 3.5% —Commercial Portfolio 53.7% 231.2 13.3 14.9 4.6% 5.4% 6.1% 5.9 4.4% 6.6%Total Portfolio 100.1% 431.1 27.5 27.9 5.3% 5.9% 6.1% 7.8 2.4% 4.1%
(1) Pro‑forma including all disposals and City Point, Leeds letting post 31 August 2016
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Committed to delivering superior distributions to shareholders
Delivered value throughout a five year transformation
(1) Market cap as at 21 October 2016
Significant efforts over the last 5 years have transformed both the corporate structure and asset base
• Reverse takeover of Wichford P.L.C.
• Admitted to Premium listing
• UK‑REIT conversion Internalisation of management
• JSE secondary listing
• Acquisition of Weston Favell Shopping Centre for £84m
• Repayment of over £250m of legacy financing facilities
• £127m equity raise
• German shopping centre acquisition €189m
• Included in the FTSE 250 and EPRA indices
• £55m equity raise
• Acquisition of German Retail Portfolio €157m
• Sold non‑core assets, including Cromwell and Swiss portfolio
• £70m equity raise • £115m equity raise
• £490m AUK acquisition
2011 2012 2013 2014 2015 2016
31 August 2011
Market Cap (£m) 227
Portfolio Value (£m) 1,077
Underlying distributable earnings (£m) 20.3
LTV (%) 75.4
31 August 2016
Market Cap(1) (£m) 789
Portfolio Value (£m) 1,529
Underlying distributable earnings (£m) 52.2
LTV (%) 53.4
56Redefine International P.L.C.
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Forward looking statements
This presentation does not and is not intended to constitute, and should not be construed as, an offer, inducement, invitation or commitment to purchase, subscribe to, provide or sell any securities of Redefine International P.L.C. (the “Company”) in any jurisdiction, or any part of any solicitation of any such offer, inducement, invitation or commitment, or to provide any recommendations for financial, securities, investment or other advice or to take any decision.
Neither the Company nor any of its members, directors, officers, employees, agents, affiliates, representatives, advisers or any other person (together, its “Related Persons”) makes any representation or warranty, express or implied, as to the accuracy or completeness of the information or opinions contained in this presentation. Nothing contained herein should be relied upon as a promise or representation as to the future. Neither the Company nor any of its Related Persons accepts any obligation or responsibility to advise any person of changes in the information set forth herein after the date hereof.
To the fullest extent permitted by law, none of the Company or any of its Related Persons accepts any liability whatsoever for any errors, omissions or inaccuracies in such information or opinions or for any loss, cost or damage suffered or incurred howsoever arising, directly or indirectly, from any use of this presentation or its contents or otherwise in connection with the subject matter of this presentation or any transaction. The information contained in this presentation is not to be relied upon for any purpose whatsoever.
Certain statements in this presentation may be forward looking statements. By their nature, forward looking statements involve a number of risks, uncertainties and assumptions about the Company and its subsidiaries and investments that could cause actual results or events to differ materially from 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, neither the Company nor its Related Persons 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.
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Notes