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 Supported by Has a range of workspace Close to retail, enabled complementary their brand excellent facilities including collaborative leisure and businesses and services and quiet dining options World class, sustainable and smart buildings + Attractive, vibrant and safe public space 6 We have created a distinctive advantage in mixed use • Mixed use campus development – 1 Broadgate, 2-3 Finsbury Avenue, 5 Kingdom Street near & medium term – 1.3m sq ft committed developments – Further opportunities Norton Folgate, Ealing, Kingston, Woolwich, Canada Water • Scale – Control of groundscape eg. Eataly, Exchange Park • Operational platform – Expertise across development, planning, marketing, data and tech, sustainability – Combined asset management team with dedicated retail and offices function • Natural partner for complex schemes Broadgate – SWFs, property specialists, Government 7 De-risked development pipeline focused on campuses Meadowhall Leisure 333,000 sq ft 2-3 Finsbury Avenue 563,000 sq ft 135 Bishopsgate 1 Triton Square Aldgate Place, Gateway Building 335,000 sq ft 366,000 sq ft Phase 2 Norton Folgate 105,000 sq ft Completion Q1 2020 Completion Q4 2020 146,000 sq ft 335,000 sq ft 5 Kingdom Street 429,000 sq ft 1 Finsbury Avenue 100 Liverpool Street 287,000 sq ft 520,000 sq ft Eden Walk, Kingston 1 Broadgate 533,000 sq ft PC’d Q1 2019 Completion Q1 2020 532,000 sq ft Recently Completed & Near term pipeline Medium term pipeline Committed Developments excl. Canada Water • ERV of £48m • ERV of £63m • All schemes consented • 87% pre-let or under offer 8 De-risked developments 87% Pre-let or under offer providing future income across committed schemes Pence per share 4.6p annual EPS accretion once £m ERV committed developments fully let 5.0 70 4.5 4.0 60 To let 3.5 50 3.0 40 2.5 2.0 30 Pre-let or under offer 1.5 20 1.0 10 0.5 0.0 0 FY20 FY21 FY22 FY23 Committed Near term Committed figures include 1 Finsbury Avenue which recently completed 9 Storey roll out Current Locations New & Forthcoming Locations 10 Building out Storey How British Land supports Storey’s operating platform • Operational Stats Landlord • c.30% premium to traditional Services Leasing and Asset Management lettings Fit out and Channel and Furnish pricing strategy • Stabilised portfolio 81% let or under offer Development Select and Marketing • 24 months average lease plan space & leasing length Finance and Legal Proposition & Operating Model Technology Technology installation • Good progress since 2017 launch • 297,000 sq ft operational Account Customer Group Technology management onboarding • Open on all 3 campuses Storey and Personalisation • Further 91,700 sq ft identified FM services HR and Other Support Services 11 Our Retail portfolio is well positioned to meet both consumer and retailer demands BL centres Potential to reach Average rent BL asset catchments to sales ratio c.50% of the population 9% Annual footfall of Occupancy cost ratio 302m Source: CACI Retail Footprint 2019, BL Insight team 14% Note that population reach includes Broadgate 12 Retail sales focused on assets that do not meet our criteria The right characteristics to drive Population Large population in catchment, with Rental growth income from rents and trends growth potential potential commercialisation Quality of The right number of the right type of Potential to grow and/or Development demographics demographic groups reconfigure the asset to meet potential future requirements Economic Above average income and health employment levels in the catchment Potential to create a true mixed- Mixed-use use community including retail, potential leisure, office and residential uses Quantum of retail space in the local Competition area; strong competitive position relative to potential competitors Potential to become a last-mile Fulfilment fulfilment hub, considering Right size scheme – large enough potential potential to develop and quality of Critical Mass for draw, but small enough to drive local infrastructure demand:supply tension 13 Significant medium-term opportunities Canada Water - Resolution to grant outline planning received September 2019 - £347m book value - £8m current rent roll Located at mixed use assets: - 2-3 Finsbury Avenue, 5 Kingdom Street, m sq ft Gateway Building, Ealing, Eden Walk 7.3 - £260m book value Medium term pipeline - £6m current rent roll opportunities - c.£80m potential ERV - 3 out of 5 schemes already consented Standalone: - Meadowhall Leisure - Flexibility over progression options - Consented scheme 14 Building a London focused, increasingly mixed use business March 2010 Current Indicative business split 5+ years 10% 33% 66% 55% 41% 30-35% 5% 50-55% • London focused: over 70% of group • Smaller, more focused Retail • Meaningful Residential exposure Retail Campus-focused Storey Residential • Right balance of flexible and core workspace Offices 15 Key messages from HY results 1 Continued operational resilience 2 Good progress on strategy - 1.3m sq ft leasing activity - Resolution to grant planning at - Portfolio 97% full Canada Water - Developments 87% pre let or - £236m retail sales under offer 3 Managing capital well 4 Pipeline of attractive opportunities - £125m buyback completed - 1m sq ft near term pipeline including Norton Folgate and 1 Broadgate - Well positioned with debt low - 7.3m sq ft medium term pipeline, principally Canada Water 16 Outlook • Retail – Occupational market to remain challenging – Investment market will be tough, but growing evidence that buyers returning to the market • London – Optimistic that current momentum will continue; function of supply as well as quality and location of our space – Benefitting from our 7.3m sq ft medium term pipeline – Investment market would benefit from greater macro stability 100 Liverpool Street, Broadgate 17 Half year results 6 months ended September ‘19 18 Results Overview 16.1p 856p £11.7bn Underlying earnings EPRA Net Asset Value Portfolio valuation per share per share -4.3% vs March 19 -6.4% vs H1 19 -5.4% vs March 19 (Retail -10.7%, Offices +0.4%) 30.8% 87% 4.6p Committed developments Loan to value let or under offer Committed developments EPS accretion Incl: +120bps val’n declines, 120,000 sq ft lettings in +110bps development spend period Primarily FY21 & FY22 19 Underlying earnings per share (1.6) 0.5 (0.5) 0.4 0.1 17.2 16.1 16.1 HY 2019 Net divestment Share Excl. impact of Retail like-for- Offices like-for- Financing HY 2020 and buybacks capital activity like income like income activities and developments other 20 Net rental income £m Like for like 1 Like for like 1 (20) -3.2% +1.1% 2 (5) 1 (2) 267 243 HY 2019 Sales Acquisitions Retail like-for- Offices like-for- Developments HY 2020 like income like income 1 Like for like rental growth is stated excluding the impact of surrender premia 21 CVAs & Admins Annualised contracted rent impact by Quarter (£’m) 12 mths: £14m 12 mths: £8m 7.0 6.0 Admins - stores closing 5.0 CVAs - stores closing 4.0 CVAs - reduced rents 3.0 Incl. Debenhams and 2.0 Arcadia 1.0 0.0 Q1 FY18 Q2 FY18 Q3 FY18 Q4 FY18 Q1 FY19 Q2 FY19 Q3 FY19 Q4 FY19 Q1 FY20 Q2 FY20 Two thirds of store closures since April 2017 are either re-let, under offer or in negotiation 22 Income statement 6 months to 30 September H1 2019 H1 2020 Change % Net rental income (£m) 267 243 (9.0%) Fees & other income (£m) 6 7 16.7% Administrative expenses (£m) (42) (41) (2.4%) Net finance costs (£m) (62) (57) (8.1%) Underlying Profit (£m) 169 152 (10.1%) Underlying earnings per share (p) 17.2 16.1 (6.4%) Dividend per share (p) 15.50 15.97 3.0% 23 Valuation performance Valuation Valuation Yield ERV £m movement movement movement Total 11,723 (4.3%) +17bps -2.3% Offices 6,439 0.4% +0bps +0.9% Retail 4,790 (10.7%) +37bps -4.8% Residential 147 (2.1%) Canada Water 347 12.4%x 24 Office valuation performance +0.4% Offices H1 valuation movement Standing Portfolio Developments £5.4bn (-0.4%) £1.0bn (+4.9%) 0bps yield shift £48m valuation uplift +0.9% ERV growth £125m spend in period Lower investment volumes recently; significant capital waiting on the sidelines pending further clarity on Brexit process Occupational demand remains strong; prime rents at c.£70psf in the City and c.£110psf in the West End1 Continued strong leasing performance across newly developed and existing space 1 As published by Cushman & Wakefield 25 Retail Valuation Movements -10.7% Retail H1 valuation September ’19 movement Valuations (£’m) 3,500 3,000 2,500 Incl.