DOCSLIB.ORG

Interims 19 V05 19P Investors

Total Page：16

File Type：pdf, Size：1020Kb

Download full-text PDF Read full-text
Interims 19 V05 19P Investors Great Portland Estates plc We unlock potential, creating space for London to thrive Half Year Results 2019 Our Strategy is Clear Strategy Cycle read is key3 100% central London West End focus (67%3) Reposition properties Low rents (£56.00 psf) Flex operational risk Execution / Ready to invest 200 Low financial leverage 13.3%3 LTV 250 Disciplined capital management Raise to acquire; distribute excess Results 175 1 Superior total returns 407.7% TPR (Benchmark 332.3%) 0 Portfolio characteristics – c.£2.6 billion2 £m 150 8% -25 0 Our 8% No ho 125 Rest of West End 1% Ci ty 28% 37% Southwark -50 0 Acquisitions less sales 17% 100 71% Midtown MSCI Central London Business mix Capital Growth Index, Office qtrly (RHS) -75 0 75 Retail 30% '1 1 '1 2 '1 3 '1 4 '1 5 '1 6 '1 7 '1 8 '1 9 H1 Residential '2 0 Year to March 1. Since 30 September 2004 2. At 30 September 2019 – including share of joint ventures 3. Includes share of Joint Ventures 1 Good, Positive Results 30 September 2019 6 months 12 months Property Valuation1 +0.8% +0.4% Developments1 +6.0% +8.2% Portfolio ERV movement1 +1.0% +1.5% Total Property Return +2.7%2 +4.0% EPRA NAV per share +1.8% +2.2% Ordinary Dividend +9.3% +8.6% 1. Like-for-like, including share of joint ventures 2. 0.9% outperformance of MSCI Central London Quarterly Index 2 Strong Operational Performance Highlights 1. Income Successes 2. Good Development Progress Let £9.9m1 pa; 9.4%2 > Mar ’19 ERV 3 projects on site, 0.4m sq ft Flexible space now 213,500 sq ft3 24% pre let +35% > ERV4 Est. surplus of £123m; only 27% taken H2 has started well 10 pipeline schemes, 1.4m sq ft £2.2m signed; in line with Sept ‘19 ERV 54% sq ft uplift; aim to increase further £8.1m under offer; +5.4% > Sept ‘19 ERV 3 near term; expect planning decisions; starts from 2020 Voids down to 2.3% 13 schemes in total, 54% of portfolio 3. Rock Solid Financial Position 4. Enhancing Culture & Refining Purpose LTV only 14.8%5 Promoting from within; 94% say GPE “great place to work” Completed £200m share buyback Sustainability interwoven throughout Group’s operations £616m of surplus capital returned since 2017 Climate Change Commitment6 & net zero carbon devs 2030 >30% of current market cap Broadened: Inclusion & Diversity / Social & Community Available liquidity £434m Innovating across Group Avg interest rate low @ 2.6% Technology: App rolled out Operating structure: realigned for higher service provision Organic growth potential… … well placed to capitalise Income growth potential: +45% Balance sheet strength: capacity Significant pipeline: no need to buy Great team: creative culture London: key world city; near term resilience, long term growth 1. 100% 2. Market lettings i.e. excluding short term lets ahead of development 3. May ‘19: 87,600 sq ft 4. Rental value of space prior to conversion, now open and trading as flexible space 5. Post half year completion of Share Buyback 6. Better Buildings Partnership Climate Change Commitment 3 Agenda Introduction Toby Courtauld, Chief Executive Financial Results Nick Sanderson, Finance & Operations Director Market Toby Courtauld, Chief Executive Acquisitions & Disposals Toby Courtauld, Chief Executive Portfolio Management Steven Mew, Portfolio Director Development Update Andrew White, Development Director Outlook Toby Courtauld, Chief Executive 4 Financial Highlights Positive financial performance Organic rent roll growth Ordinary dividend growth Robust debt metrics Returned further surplus equity Significant capacity for investment Balance Sheet Sept 19 March 19 Change Portfolio value1 £2,645.0m £2,579.0m +0.8%2 EPRA NAV per share3 868p 853p +1.8% EPRA NNNAV per share3 861p 850p +1.3% Loan-to-property value 13.3% 8.7% +4.6pps Income Statement Sept 194 Sept 18 Change EPRA Earnings3 £28.1m £25.3m +11.1% EPRA EPS3 10.6p 9.0p +17.8% Dividend per share 4.7p 4.3p +9.3% Sept 194 Sept 18 Change Total Accounting Return 2.7% 1.3% +1.4pps 1. Including share of JVs 2. Like-for-like change 3. On an EPRA basis 4. Six months to 30 September 2019 5 EPRA NAV per share up 1.8%1 6 months to 30 September 2019 EPRA NAV (pence per share) 875 11 870 7 868 865 (1) 860 6 (8) 855 853 850 Office Retail Portfolio +1.8% Like-for-like +1.3% -0.6% +0.8% 845 property valuation ERV growth +1.4% -0.2% +1.0% 840 Valuation Committed Active Portfolio 835 Developments Long Dated Management Pipeline +6.0% +4.1% 830 +0.4% -2.2% 825 Mar-19 Property EPRA EPS Ordinary Share Buyback Other Sep-19 Revaluation Dividends 1. Adjusted per EPRA guidance. 6 EPRA Earnings 6 months to 30 September 2019 EPRA Earnings1 (£m) 1.2 £m 1.6 28.1 28 (0.3) 2.9 (0.9) 26 25.3 +11.1% (0.5) 24 (1.2) 22 20 Six months t o Re n ta l in c ome JV fe e s J V E PRA Pr oper ty cost s Admin c os ts Ne t in te re st Other Six months t o Sept 18 Ear nings Sept 19 EPRA EPS Cash EPS Interim Dividend 10.6p ↑17.8% 8.3p 4.7p ↑9.3% 1. Adjusted per EPRA guidance 7 Organic Rent Roll Growth Opportunity Resilient occupier base Potential Additional Rent Roll (£m)1 99% of rent collected within 7 working days 170 Oxford House, W13 £13.1m 100% Hanover Sq, W13 £6.4m The Hickman, E13 £3.8m 23.3 153.3 90% 150 Hanover Sq, W1 £7.2m 80% Sep-10 Sep-13 Sep-16 Sep-19 130 Flex & co- 7.2 working 5 partnerships 8.3 122.8 One delinquency & one CVA in period £5.1m 10 8.5 Number of Delinquencies 8 110 +45% Re ta il Media Profes sional Services 106.0 Pre Development 6 0.70%4 Pipeline 0.95%4 0.75%4 +5.6%2 4 0.06%4 0.32%4 0.15%4 0.17%4 90 2 4 Sept 2019 Investment Committed Reversion Pro forma pro pro forma 0.09% Portfolio Voids & refurbs Pre n/a - let 0 2012 2013 2014 2015 2016 2017 2018 2019 H1 20 2 0 £26m rent deposits 1. Gross contracted rent excluding impact of tenant incentives; includes share of JVs. 2. Uplift 31 March 2019 to 30 September 2019. 3. CBRE rental estimates September 2019 4. Years to March, value of delinquencies as % of Rent Roll (including 100% of JV properties). 8 5. Rent Reduction of £0.4m pa (our share) for next 3 years Enhanced Debt Profile1 Following accretive refinancing activity £m Mar ‘19 Sept ’19 WADM (years) 500 é RCF2 (Drawn) Drawn 6.4 6.4 1.7% 2 RCF (Undrawn) Committed 5.4 é5.7 JV Bank Debt 400 JV Non-Bank Debt % Unsecured Debenture Bonds Drawn 72% é84% Private Placement Notes Committed 87% é92% 300 % Interest rate3 200 2.2% 100 3.7% 2.7% 2.9% 5.6% 2.8% 0 1’19 2 3‘20 4 ‘215 6 ‘227 8 ‘239 10 ‘2411 12 13‘28 14 15‘29 16 17‘30 18 ‘3119 20 ‘3221 22 ‘3323 1. Total facilities (joint ventures at share) 2. Revolving credit facility 3. As at today 9 Rock Solid Debt Metrics Significant low cost liquidity WAIR (%, as at Sept) LTV (%, as at Sept) 4 40 % 37.7% 35 % 35.4% 3 2.6% 30 % 2.3% If fully drawn 25 % 25.0% 2 21.7% 2012 2013 2014 2015 2016 2017 2018 2019 20 % 17.9% Cash and Undrawn Facilities (£m, as at Sept) 20.2% 15 % 13.3% 60 0 10 % 8.7% £434m 5% 5.8% 40 0 0% 20 0 2012 2013 2014 2015 2016 2017 2018 Mar 2019 2019 0 Other Group Debt Metrics1 2012 2013 2014 2015 2016 2017 2018 2019 Net gearing 14.7% / Interest cover n/a 1. Measured in accordance with Group covenants 10 Financial Discipline Balance sheet efficiency; £200m share buyback completed Track record of accretively raising & returning capital (£m) £200m Share Buyback 30 0 Capital Raised - £310m – Invested within 9 months – On-market programme successfully completed – Discount to replacement cost yesterday – Maintain LTV <40% – 27.8 million shares purchased and cancelled 20 0 20 0 166 – Incl 5.2 million shares since 1 Oct ‘19 144 – Average price of 720p per share 10 0 17 5 What Next? 2017 2018 2018/19 0 15 0 – Significant financial capacity retained 2009 2012 – Continued commitment to balance sheet efficiency -100 – Any future return of surplus equity -110 – Property market outlook 12 5 – Scale and speed of investing & divesting activities -200 Capital Returned - £616m -200 – Low financial leverage strategy – Following £1.1bn profitable sales since 10 0 -300 Jan 2017 – Maintain LTV >10% -306 MSCI Central London Capital Growth Index, qtrly (RHS) -400 75 '0 9 '1 1 '1 3 '1 5 '1 7 '1 9 11 Significant Capacity for Future Investment Capital allocation discipline; investing in Sustainable Spaces Significant Financial Capacity Cumulative Pro Forma LTV1 At 30 September 2019 13.3% Forecast Capex3, £m, Years to March Recent completion of 14.8% Buyback (£40m) 10 0 Committed Capex To come £m 2 Hanover Square, W1 25.9 23.6 Oxford House, W1 60.0 50 2.0 The Hickman, E1 13.9 99.8 17.9% 49.2 47.8 Refurbishment Capex 27.6 18.7% 2.0 2.8 0 - Including Flex Space £5.8m 6 months to Mar '21 Mar '22 Mar '20 Investing in Sustainable Spaces £250m 25.5% • All committed developments targeting + Illustrative Investment Capacity £500m 31.2% BREEAM Excellent £1,000m 40.3% • Ambitious sustainability targets for future developments and broader business Capital allocation & balance sheet discipline 1.
Load more

Recommended publications
  • City Investment Watch
    UK Commercial – January 2021 MARKET IN City Investment MINUTES Savills Research Watch December records highest monthly volume of 2020 bringing the annual total to £4.48Bn. December is historically the busiest month of the year as and retail complex totals approximately 192,700 sq. ft. The investors look to close deals prior to year-end. Any concerns total rent passing is approximately £7.3 million per annum the typical flurry of activity would be impacted by the with approximately 40% of the income expiring in 2021. omnipresent political and economic disruption, principally December saw £1.18Bn focused around lengthy Brexit trade negotiations and the No new assets were marketed in December given the transact over 16 deals ever-evolving Covid-19 pandemic, were allayed swiftly. disruption associated with the November Lockdown and the The largest deal of the year exchanged early in the month Christmas / New Year break. Accordingly, with the rise in contributing to a monthly volume of £1.18Bn, a significant investment turnover there has been an expected fall in the increase on November (£404M) and the 2020 monthly average volume of stock under offer, which currently stands at £1.50Bn of £301.60M, but 31% below December 2019 (£1.69Bn). across 14 transactions. A comparatively strong December contributed to a total Q4 Unsurprisingly given the disruption across both investment volume of £2.14Bn, 34% down on Q4 2019 and 39% down on and occupational markets, investors were principally the Q4 10-year average. Total 2020 transactional volume seeking Core (54% of annual transactional volume over reached £4.48Bn, which is approximately 42.5% down on that 13 transactions) and Core Plus (29% over 29 transactions) achieved in 2019 (£8.18Bn) and 53% below the 10-year average.
    [Show full text]
  • Investor Presentation
    Investor Presentation HY 2020 Our Investment Case 1 2 3 4 Our distinctive The scale and A well-positioned Our operational business model & quality of our development expertise & clear strategy portfolio pipeline customer insight Increasing our focus 22.5m sq ft of Development pipeline Expertise in on mixed use places high quality assets aligned to strategy managing and leasing our assets based on our customer insight Growing London Underpinned by our Provides visibility campuses and resilient balance sheet on future earnings Residential and refining and financial strength Drives incremental Retail value for stakeholders 1 British Land at a glance 1FA, Broadgate £15.4bn Assets under management £11.7bn Of which we own £521m Annualised rent 22.5m sq ft Floor space 97% Occupancy Canada Water Plymouth As at September 2019 2 A diverse, high quality portfolio £11.7bn (BL share) Multi-let Retail (26%) London Campuses (45%) 72% London & South East Solus Retail (5%) Standalone offices (10%) Retail – London & SE (10%) Residential & Canada Water (4%) 3 Our unique London campuses £8.6bn Assets under management £6.4bn Of which we own 78% £205m Annualised rent 6.6m sq ft Floor space 97% Occupancy As at September 2019 4 Canada Water 53 acre mixed use opportunity in Central London 5 Why mixed use? Occupiers Employees want space which is… want space which is… Attractive to skilled Flexible Affordable Well connected Located in vibrant Well connected Safe and promotes Sustainable and employees neighbourhoods wellbeing eco friendly Tech Close to Aligned to
    [Show full text]
  • Consultation Statement Submission Version
    Consultation Statement (Submission) November 2019 2 Consultation Statement (Submission) November 2019 Table of contents 1 Introduction ............................................................................................................................... 4 2 Regulation 19 consultation process ........................................................................................... 6 2.1 Notification ................................................................................................................................ 6 Website .................................................................................................................................... 6 Emails ...................................................................................................................................... 6 Social media ............................................................................................................................ 6 Hard copies ............................................................................................................................. 7 2.2 Coverage .................................................................................................................................. 7 Media coverage ....................................................................................................................... 7 Scrutiny Committee ................................................................................................................ 8 Petitions..................................................................................................................................
    [Show full text]
  • Retail Is Not Dead and Regionally Dominant Shopping Centres Offer an Attractive Value Play
    REAL ASSETS Research & Strategy For professional clients only January 2019 Retail is not dead and regionally dominant shopping centres offer anattractive value play Executive summary: ■ The consumer has taken control of the retail relationship which is putting pressure on retailers’ margins, as they face increased competition and a need to invest in a full reconfiguration of their supply chain to offer an “Omni-channel” distribution model ■ This pressure on retailers’ margins is likely to limit rental value growth Justin Curlow prospects over the short-term, as traditional bricks and mortar retailers’ Global Head of Research & Strategy space consolidations leave more voids than online pure play retailers establishing a physical presence absorb ■ In our view, regionally dominant shopping centres and second-tier tourist- oriented city high streets represent an attractive “value play” for investors, as we feel the entire sector is being tainted by the same doomsday brush despite the fact that the operational performance of these schemes remains strong ■ The sector is not without risks, as highlighted by the continued raft of Vanessa Moleiro retailer failures and bankruptcies which could be exacerbated if an economic Research Analyst downturn materialised over the short term. In addition, for those schemes that remain viable and in demand, the retailer-landlord relationship has to respond to a shorter retail life cycle and increased ambiguity across ultimate sales channels ■ Ultimately, we do not think the developed world will stop consuming
    [Show full text]
  • PATHWAYS to PROPERTY Review 2018 Pathways to Property Annual Review 2018
    READING REAL ESTATE FOUNDATION PATHWAYS TO PROPERTY Review 2018 Pathways to Property Annual Review 2018 PROJECT BACKGROUND Launched in 2012, the Pathways to The aims of the project are: Since the launch of the The project has run six Property project aims to widen access to the real estate profession by raising • To raise awareness of and aspirations project in 2012, Pathways Summer Schools: awareness of and aspirations about the about the diverse range of careers within to Property has: the sector amongst talented students vast range of careers available within the Engaged with over from various backgrounds, increasing sector. students505 have attended the residential the link between the industry and its Led by the Reading Real Estate Pathways to Property Summer School. future talent pool. Foundation at Henley Business School, 14,000students, almost... University of Reading, the project • To increase the diversity of applications was established as a response to the for Real Estate and Planning degrees of attendees had no family experience recognised lack of diversity in the 85% at Henley Business School by of higher education. industry. With the strong support of 3000teachers and careers advisors, and... promoting a career in the property the industry, the project has been able industry and providing students from almost to raise awareness and understanding less advantaged and non-traditional of the property sector amongst of attendees were female and... backgrounds with support into the 47% students, teachers, careers advisors industry through the Pathways to 900parents. and parents. With a successful outreach programme, the project has exposure to Property programme. Attended students from less advantaged and non- 23%of summer school attendees traditional backgrounds, highlighting the have gone on to study or work careers available within the sector and 203events in the property industry.
    [Show full text]
  • Members 2019 Woods Bagot
    Members 2019 Woods Bagot Tourism, Retail and Leisure Banking & Financial Services AB Foods American Express Chelsea Football Club Aviva Investors D&D London Barclays Delfont Mackintosh Barings Edwardian Hotels London Deutsche Fortnum & Mason HSBC Global Blue Legal & General Harrods Hilton Lloyds Bank J Sainsbury Macquarie Kingfisher MasterCard Marks & Spencer Pool Reinsurance Mastercard Prudential McDonalds Restaurants Royal Bank of Scotland Merlin Entertainments State Street NBC Universal Tristan Capital Partners Phillip Morris Limited Primark Consultants and Advisors Selfridges Alchemmy Starbucks becg Tate Blue Mountain Group Tesco Cratus The Barbican Centre CIS Security The O2 Conducttr QVC Edelman Walgreens Boots Alliance Field Consulting Whitbread Hotels & Restaurants Fire Protection Association Four Communications Partnerships & Associations FTI Consulting ASIS Kanda Communications LLP British Hospitality Association London Communications Agency Federation of Small Businesses Odgers Berndtson Heart of London Optimal Risk London First PA Consulting Group New West End Company Wilson James North London Business Royal Brompton & Harefield NHS Trust Construction & Architecture South Bank Employers’ Group Aedas South London Business Assael Architecture The Security Institute West BAM Nuttall London Business Dar Al-Handasah (Shair and Partners) Farrells Gensler Professional Services Grimshaw Allen & Overy HOK Ashurst Interserve Bryan Cave Leighton Paisner LLP Kier Blick Rothenberg Mace Charles Russell Speechlys Make Clyde & Co Mulalley
    [Show full text]
  • Leisure Savills
    SAVILLS PROPERTY MANAGEMENT LEISURE savills.co.uk 3 SAVILLS PROPERTY MANAGEMENT: LEISURE INTRODUCTION We are Savills Leisure Property Management, the UK’s leading leisure property management service provider. Acting for a range of landlords, our portfolio comprises premier indoor and outdoor leisure schemes throughout the UK, including centres, parks and out of town retail. We provide leisure-specific property management services, from core functions through to consultancy and place shaping initiatives. We act as an extension to our clients’ team; onboarding objectives, addressing challenges, offering guidance and presenting solutions to compliment the overall strategy. LEISURE-SPECIFIC SERVICE DELIVERY We believe that leisure-focused property management is fundamental to the success of a scheme and its stakeholders. We have developed specialised, sector-specific capabilities such as service charge benchmarking, tenant compliance audits, footfall reporting, customer journey and tenant trade analysis, and waste management and environmental reporting. Furthermore, we understand the importance of occupier relations. We have long-term working relationships with key national leisure tenants, maintained through active relationship management and engagement. WE GO FURTHER THAN MOST Our expertise in leisure property management transcends functional service delivery. We work with the end user front of mind to ensure our clients’ spaces are best in class. We use and develop the latest technologies to understand performance metrics to aid decision-making
    [Show full text]
  • SUSTAINABILITY REPORT 2016 Progress Commitments
    SUSTAINABILITY REPORT 2016 Progress Commitments Complete Existing commitment (retained) AT A GLANCE On track Existing commitment (extended) Not on track New commitment Our Commitments and Progress to date CREATING JOBS AND OPPORTUNITIES EFFICIENT USE OF NATURAL RESOURCES COMMUNITY RENEWABLE EMPLOYMENT FAIRNESS ELECTRICITY WASTE COMMITMENT COMMITMENT COMMITMENT COMMITMENT Help a total of 1,200 Ensure the working Continue to procure 100% Send zero waste to landfill with disadvantaged people secure environments we control are renewable electricity across at least 75% recycled across all jobs by 2020 fair and ensure that everyone our portfolio our operational and construction who is working on our behalf activities by 2020 PROGRESS – within an environment we PROGRESS control – is paid at least the PROGRESS Employment secured Living Wage by 2020 As of 1 April 2016, our for 779 people from group electricity contract is Diverting 98.6% from landfill and disadvantaged backgrounds PROGRESS 100% renewable recycling 72% All tenders and contractual clauses for new developments ENERGY now stipulate Living Wage CARBON requirements COMMITMENT COMMITMENT DIVERSITY HEALTH, SAFETY AND SECURITY Reduce carbon intensity Reduce energy intensity (kWh/ 2 2 (kgCO2/m ) by 40% by 2030 m ) by 40% by 2030 compared compared to a 2013/14 to a 2013/14 baseline, for COMMITMENT COMMITMENT baseline, for property under property under our management Make measurable Maintain an exceptional our management for at least for at least two years improvements to the profile standard
    [Show full text]
  • Avoid a Void 17
    Avoid How landlords are responding to the a void serviced offices boom Glossary Cat A SMEs IFRS 16 Headline Rent A traditional landlord Small and Medium sized IASB standards with (per sq ft) finished product including: Enterprises, businesses an effective date from The rental payment paid raised floors, suspended with fewer than 250 1 January 2019. This under the terms of the ceilings (unless offering employees. requires all leases to be lease following expiry of exposed services), lighting, registered on a company’s the rent free period. fire detection services, Serviced offices balance sheet. heating, ventilation and An alternative to the Net Effective Rent air conditioning to the traditional office lease, SDLT (per sq ft) standardised building with desks/office space Stamp Duty Land Tax The average annual rental planning grid and offered by the operator on is payable on the lease payment over the term of occupancy density. licences for terms typically purchase price and on the the lease adjusted for the from 3 months to 3+ years. value of annual rent. rent free period. Cat B There are various models A usually tenant- available and they are FF&E Wayleave commissioned fit-out of sometimes also known as Loose furniture, fittings A legal agreement that office space, to meet the flexi-space or co-working and equipment. Excludes gives a utility service occupier’s requirements, and generally include a fixed office furniture provider the right to including: kitchen and range of office services included in Cat B costs and install, maintain and amenity space, meeting either included as standard IT, audio visual (AV) and recover infrastructure rooms, fixed furniture, and / or as an optional telecoms equipment.
    [Show full text]
  • Annual Report 2020 Welcome to Landsec 2020 in Numbers Here Are Some of the Our Portfolio Important Financial and Non-Financial Performance Figures for Our Year
    Annual Annual Report 2020 Landsec Annual Report 2020 Welcome to Landsec 2020 in numbers Here are some of the Our portfolio important financial and non-financial performance figures for our year. Some of these measures are impacted by Covid-19. 23.2p Dividend, down 49.1% 55.9p Adjusted diluted earnings per share (2019: 59.7p) Office Retail Specialist Our Office segment consists of Our Retail segment includes outlets, Our Specialist segment comprises high-quality, modern offices in great retail parks, large regionally dominant 17 standalone leisure parks, 23 hotels 1,192p locations in central London. Our offer shopping centres outside London and the iconic Piccadilly Lights in EPRA net tangible assets ranges from traditional long-term and shopping centres within London. central London. per share, down 11.6% leases through to shorter-term, flexible We also have great retail space within Pages 24-29 space. We also have significant our office buildings. development opportunities. Pages 24-29 Pages 24-29 -8.2% Total business return (2019: -1.1%) A £12.8bn portfolio Chart 1 10 1. West End office 26% 9 £11.7bn 2. City office 13% 8 1 Total contribution to 3. Mid-town office 11% the UK economy each 4. Southwark and other office 4% 7 year from people based 5. London retail 11% Combined at our assets 6. Regional retail 13% 7. Outlets 7% Portfolio 6 8. Retail parks 3% 2 9. Leisure and hotels 9% £(837)m 10. Other 3% 5 Loss before tax 3 4 (2019: £(123)m) Read more on pages 174-177 Comprising 24 million sq ft Chart 2 -4.5% Ungeared total property of space return (2019: 0.4%) 1 1.
    [Show full text]
  • A Social Divide in the City Mining for Impact
    Strategic Communications A SOCIAL DIVIDE IN THE CITY MINING FOR IMPACT ANNUAL FTSE 100 SOCIAL MEDIA PERFORMANCE INDEX SEVENTH EDITION All FTSE 100 companies 637 Posts analysed 2.04m Engagements reviewed across 4 platforms recorded Executive Summary RESEARCH OVERVIEW In order to evaluate the performance of FTSE 100 companies, FTI analysed the social media activity of each FTSE 100 constituent on the four social media platforms most relevant, in our view, to corporate and financial communications – Twitter, LinkedIn, The seventh edition of FTI’s Social Divide in the City report reveals new insights relating to the social media performance of YouTube and Instagram – at the time of its latest full-year and half-year results announcement. The identified results-related the UK’s FTSE 100 companies, with paid-for activity on the rise, and the mining sector in particular coming to prominence activity was measured using three metrics: volume, quality and impact. Scores were given for each component, which in turn with impactful content and a focus on engagement. generated an aggregate score. More information on the methodology can be found on page 19. We were pleased to have been joined this year in assessing 2018’s full- and half-year results reporting by Dr Pawel Bilinski of the Centre for Financial Analysis and Reporting at London’s Cass Business School. Reviewing our performance data for each constituent of the FTSE 100 alongside the share price INDEX RANKING METHODOLOGY performance and analyst ratings pre- and post-results for the last five years, Dr Bilinski argues that social media communications around results can lead to a stronger price reaction, particularly for firms with high retail ownership, while Twitter plays a role in investors reacting more strongly to news content.
    [Show full text]
  • A Social Divide in the City Mining for Impact
    Strategic Communications A SOCIAL DIVIDE IN THE CITY MINING FOR IMPACT ANNUAL FTSE 100 SOCIAL MEDIA PERFORMANCE INDEX SEVENTH EDITION All FTSE 100 companies 637 Posts analysed 2.04m Engagements reviewed across 4 platforms recorded Executive Summary RESEARCH OVERVIEW In order to evaluate the performance of FTSE 100 companies, FTI analysed the social media activity of each FTSE 100 constituent on the four social media platforms most relevant, in our view, to corporate and financial communications – Twitter, LinkedIn, The seventh edition of FTI’s Social Divide in the City report reveals new insights relating to the social media performance of YouTube and Instagram – at the time of its latest full-year and half-year results announcement. The identified results-related the UK’s FTSE 100 companies, with paid-for activity on the rise, and the mining sector in particular coming to prominence activity was measured using three metrics: volume, quality and impact. Scores were given for each component, which in turn with impactful content and a focus on engagement. generated an aggregate score. More information on the methodology can be found on page 18. We were pleased to have been joined this year in assessing 2018’s full- and half-year results reporting by Dr Pawel Bilinski of the Centre for Financial Analysis and Reporting at London’s Cass Business School. Reviewing our performance data for each constituent of the FTSE 100 alongside the share price INDEX RANKING METHODOLOGY performance and analyst ratings pre- and post-results for the last five years, Dr Bilinski argues that social media communications around results can lead to a stronger price reaction, particularly for firms with high retail ownership, while Twitter plays a role in investors reacting more strongly to news content.
    [Show full text]