FULL YEAR RESULTS TO 30TH NOVEMBER 2013 PRESENTATION Disclaimer This presentation does not contain or constitute an invitation or inducement to any person to underwrite, subscribe for, or otherwise acquire or dispose of any shares in St. Modwen Properties PLC or other securities and should not be relied on for such purposes. This presentation may contain certain ‘forward-looking’ statements. By their nature, forward-looking statements involve risk and uncertainty because they relate to future events and circumstances. Actual outcomes and results may differ materially from any outcomes or results expressed or implied by such forward-looking statements. Any forward-looking statements made by or on behalf of St. Modwen Properties PLC speak only as of the date they are made and no representation or warranty is given in relation to them, including as to their completeness or accuracy or the basis on which they were prepared. St. Modwen Properties PLC does not undertake to update forward-looking statements to reflect any changes in St. Modwen Properties PLC's expectations with regard thereto or any changes in events, conditions or circumstances on which any such statement is based. Statements are made in this presentation about the price and past performance of shares in St. Modwen Properties PLC. Past performance cannot be relied upon as a guide to future performance. 2 Agenda 1. Highlights 2. About St. Modwen 3. Financial Results 4. Operational Review 3 Highlights Financial Operational • 56% increase in profit before all tax to £82.2m • Elephant & Castle Shopping Centre sold for £80m (2012: £52.8m) compared to £52.5m book value at start of the • 11% increase in NAV per share to 279p (2012: year (SMP 50%) 251p per share) and EPRA NAV up 10% to 298p • Significant milestones completed across major (2012: 272p per share) projects: • Realised property profits of £40m (2012: £29m) − Longbridge - 150,000 sq ft full offer store pre-let to Marks & Spencer • Net valuation increase of £42m (2012: £28m) − Swansea University, Bay Campus – first • Successful £49m equity raise completed in March phase of works on schedule with student 2013 accommodation now underway • 10% increase in total dividend for the year to 4.0p − NCGM – expect to secure planning per share (2012: 3.63p) approval in 2015 • Residential market continues to improve across the country • Improving commercial market Another strong set of full year results with continued improvement in commercial and residential markets across the UK 4 About St. Modwen Properties PLC • The UK’s leading regeneration specialist: • Residential development: Residential income Wholly focused upon regeneration stream experiencing strong growth via three routes – residential land sales, Persimmon Joint • An established business: A FTSE 250 company with a 25 year track record Venture and St. Modwen Homes • Consistent long- • Experienced management team: Extensive Commercial development: operational expertise in regeneration and term, high-value commercial redevelopment brownfield renewal activity. A strong pipeline of development opportunities • A stable and growing business with a solid • balance sheet: A property portfolio of £1.1bn with Diverse UK-wide portfolio and long-term a see-through loan-to-value ratio of 33% development: Land bank of over 5,900 acres. No over-exposure to any single scheme, tenant • Running costs underpinned by recurring or sector revenue streams from a £514m portfolio of • income producing assets: Net rental income has Active management to increase portfolio grown steadily since 2009 and typically covers the value and to reduce development risk: running costs of the business Through planning gains, pre-let and pre-sold opportunities and increasing the number of design and build projects An established, stable business and the leader in its field 5 How we generate value Ratio of rental and other income to Property valuation increases through Continuous delivery of property operating costs including interest active management profits £m £m % 40 40 100 60 35 102 97 50 30 80 89 92 86 48 25 29 40 60 24 20 22 30 33 40 15 20 27 28 10 20 18 10 5 8 0 0 0 2009 2010 2011 2012 2013 2009 2010 2011 2012 2013 2009 2010 2011 2012 2013 Strong recurring income complemented by active asset management and property profits 6 St. Modwen’s business model Invest Dividend Assets St. Modwen payment Income Commercial Receive cash producing Residential land and 45% 42% development 13% JV, Scheme either pre-sold or Generate marketed income and cover costs Remediate land sales Regenerate Regenerate Persimmon St. St. Modwen Homes, Construction expertise Planning and change of use expertise Development Finished scheme - add value through the planning process schemes Business model generates regular income and drives portfolio value 7 FINANCIAL RESULTS 8 Financial highlights • Post dividend, shareholders’ equity NAV up 11% to 279p (2012: 251p per share) • EPRA NAV up 10% to 298p (2012: 272p) • 56% increase in profit before all tax to £82.2m (2012: £52.8m) • Trading profit up 31% to £33.3m (2012: £25.5m) • Property profits of £39.8m (2012: £29.0m) • Gearing now 54% (2012: 71%) and LTV at 33% (2012: 41%) • Added value gains of £28m (2012: £48m), coupled with £14m market driven valuation gain (2012: £20m loss). Net valuation increase of £42m (2012: £28m) • Total dividend up 10% to 4.00p per share (2012: 3.63p per share) • Successful £49m equity raise will further support redevelopment of NCGM and give substantial headroom in facilities An excellent platform for further growth across the business 9 Profit and loss 30 November 2013 30 November 2012 Total £m Total £m Net Rental Income 36.3 36.2 Property Profits 39.8 29.0 Other Income 2.9 2.8 Overheads (20.2) (18.6) Operating Profit 58.8 (+18%) 49.4 (+8%) Interest (25.5) (23.9) Trading Profit 33.3 (+31%) 25.5 (+12%) Added Value Property Valuation Gains 28.1 47.6 Market Property Valuation Movement 13.9 (19.6) Other Finance Gains/(Charges) 6.9 (0.7) Profit Before All Tax 82.2 (+56%) 52.8 (+2%) Continued focus on generating value across the land bank while working our income producing assets hard 10 Income producing portfolio • A £514m portfolio of income producing assets (45% of Stable net rental income total portfolio): £m • affordable rents on flexible leases 40 35.5 36.2 36.3 • diversified rent roll and tenant base 35 33.5 33.7 30 • Expertise in managing sites to generate income that 25 typically covers the running costs of the business 20 15 • Reduced level of churn and good level of occupancy 10 17.1 17.4 17.8 18.3 18.2 (88%) maintained through to development 5 0 2009 2010 2011 2012 2013 • Average rental lease length of 5.0 years (2012: 5.0 years) Occupancy rates HY FY % • Voids deliberately maintained on properties being 100 prepared for redevelopment as vacant possession is 80 88 88 87 88 required 83 60 • Investment properties at high yields with an equivalent yield of 9.2% on income producing properties 40 20 • Elephant & Castle sale for £80m at 4.25% yield 0 2009 FY 2010 FY 2011 FY 2012 FY 2013 FY Gross rent roll maintained 11 Rental income and recurring costs 30 November 2013 30 November 2012 £m £m Rent Roll at Start of Period / Year 45.6 46.4 Acquisitions / (Disposals) (4.7) (2.8) 40.9 43.6 Tenant Vacations (5.4) (6.9) £m Coverage of business running costs Tenant Administrations (0.1) (1.4) 50 45.7 Rent Reviews 0.3 0.6 41.2 42.5 38.7 39.7 39.0 39.2 36.8 New Lettings 9.0 9.7 35.3 34.5 Closing Rent Roll 44.7 45.6 Void Percentage 12% 13% 0 Net Rental Income 36.3 36.2 2009 FY 2010 FY 2011 FY 2012 FY 2013 FY Other Rental Style Income 2.9 2.8 Income Producing Portfolio Business Running Costs 39.2 39.0 Overheads and Interest 45.7 42.5 % Coverage 86% 92% Annualised rent roll stable with little impact from £80m disposal of Elephant & Castle Shopping Centre 12 Valuation movements £m +40 Asset mgt. of income Active Management Valuation Increases producing property £6m (2012: £12m) £m 60 Planning & +30 structural 55 value added to 50 residential land £22m 45 (2012: £36m) 40 35 +20 30 36 25 Positive 20 market 26 22 +10 value increase 15 8 on residential 10 land £21m (2012: £8m) 5 10 12 7 6 0 0 Income producing property & 2010 FY 2011 FY 2012 FY 2013 FY commercial land (£7m) (2012 (£28m)) Commercial active management Residential active management -10 Valuation increase driven by active management, increased residential focus and improvement in both commercial and residential markets 13 Strong balance sheet Full Year to 30 November Full Year to 30 November 2013 2012 £m £m Property assets 1,019 946 Investments in JVs and other 102 82 assets Debtors 77 68 Pensions - - Gross assets 1,198 1,096 Net debt (341) (366) Trade payable etc. (230) (216) Gross liabilities (571) (582) Net assets 627 514 Non-controlling interests (13) (11) Shareholders’ funds 614 503 NAV per share 279p (+11%) 251p (+8%) EPRA NAV per share 298p (+10%) 272p (+9%) A successful business with a robust balance sheet 14 NAV movements £m 650 14 (8) (4) 614 28 600 39 (46) 40 48 550 503 500 At Nov 2012 Equity placing Net rents & other Overheads & Development Value added Underlying Dividend Tax / other At Nov 2013 income interest profit valuation movements movement Valuation gains reflect active management and overall improvement in property market 15 Net debt movements £m 540 (177) 172 490 440 70 390 (366) 48 (341) 340 (11) 1 (40) (318) 32 290 240 At Nov 2012 Equity Placing Equivalent Net Rents & Overheads & Tax & Working Acquisitions & Disposals At Nov 2013 Nov 2012 Other Income Interest Dividends Paid Capital Capex Debt levels continue to decrease 16 Facilities Equity placing and facilities • Successful £49m equity placing completed in March 2013 providing opportunity to maximise potential of development at New Covent Garden Market without increasing leverage • Substantial facility headroom and flexibility to use existing resources to fund other developments and major projects • Sale of Elephant & Castle reduces KPI debt (St.