Presentation to UKSA 19 January 2005

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Presentation to UKSA 19 January 2005

• Francis Salway
• Group Chief Executive

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Focused business model
Retail
Property outsourcing
Urban community development
London offices
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Three core businesses
Retail4.8bn assets 257m net income
London offices3.3bn assets 200m net income
Property outsourcing1.9bn operating
properties 196m operating profit(1)
(1) Six months to 30 September 2004 annualised,
excluding profit on sales of properties
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Strategic focus on value creation
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Effective recycling of capital
Active management of balance sheet
m
m
2004
2003
2002
2001
2000
1999
1998
Telereal disposals
Property investment expenditure
Capital returns
Disposals
LS Trillium acquisitions
Corporate acquisitions
Recycling capital to achieve higher returns
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Experienced management team
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The last 12 months

• 2004
• Organisational restructuring
• Exit from industrial
• Debt restructuring
• Innovative financing solution
• Retail
• Scottish Real Estate Limited Partnership joint
  venture with British Land
• Metro Shopping Fund Limited joint venture with
  Delancey
• Asset swap with Slough Estates
• Successful anchor tenant lettings for shopping
  centre developments in Exeter and Cardiff

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The last 12 months

• 2004
• London office
• Let, disposed or agreed terms for letting for
  over 145,000m2 of our London office development
  programme
• Landflex roll-out
• LS Trillium
• 3 new contract wins Employment Services,
  Norwich Union and Barlcays Bank
• Strong profit and loss contribution

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Financial highlights6 months to 30 September 2004
Key statistics Key statistics Key statistics Key statistics
Pre-tax profit 196.6m 8.2
Revenue profit (pre-tax) (1) 189.3m 13.4
Adjusted diluted earnings per share (2) 28.56p 11.8
Dividend per share 10.40p 5.1
Property investment business valuation change 445.7m 5.3
Adjusted diluted NAV per share(3)(4) 1443p 8.4

1. Excludes FRS3 profits and exceptional items.
2. Based on revenue profits. Excludes deferred tax
   on investment properties.
3. Adds back deferred tax on investment properties
   and Telereal deficit
4. Compared to 31 March 2004

Strong growth in adjusted EPS and NAV
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Retail
Retail

• Investment
• Active management creating value
• Shopping centres 6.2(1)
• Retail warehouses 7.3(1)
• Innovative asset acquisitions
• 18 shopping centres, 25 retail parks
• Over one million m2 of retail accommodation
• Nearly 300 million shopper visits per year
• Development
• Meeting targets on development lettings
• Planning consent for over 100,000m2 of retail
  development(2)
• Estimated future development spend of
  c.531m(2)(3)

1. Valuation change for six months to 30 September
   2004
2. LS share
3. Excludes land costs and capitalised interest

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Scottish Retail Property Limited Partnership

• Joint venture with British Land created in March
  2004
• Over 130,000m2 of retail space, valued at circa
  500m
• Assets
• Aberdeen - Bon Accord Centre and St Nicholas
  Centre
• East Kilbride Princes Mall, Olympia, Plaza
  Centre and Centre West
• Roles
• Land Securities asset and property management
• British Land administration
• Rationale
• Coordinated asset management and tenant mix
  strategies
• Future development opportunities

Centre West, East Kilbride
Maximise long-term value of centres
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Assets acquired through Slough Estates swap
Asset management and development opportunities
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Retail developments
One of the largest development pipelines
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Retail
Central London office

• Investment
• Disposal of ex-growth assets
• Valuation increase(1) 4.4
• Like-for-like portfolio(2)
• Average passing rent 358 per m2
• Average estimated rental value 321 per m2
• Current income yield 7.1
• Over 810,000m2 of office accommodation
• More than 50,000 people work in offices owned by
  us
• Development
• Strong progress on development lettings
• Potential to develop 500,000m2 of commercial and
  residential space over next 10 years
• Estimated future development spend of c.581m(3)

1. for six months to 30 September 2004
2. As at 30 September 2004
3. Excludes land costs and capitalised interest

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London investment portfolio opportunities
Property A long lease
Property B short leases
London offices (like-for-like portfolio) as at 30
September 2004

• Current income yield 7.1
• Gross nominal equivalent yield 7.1
• Average passing rent per m2 358
• Average ERV per m2 321

• Mean lease length 9.0years
• Gross reversionary potential 7.8
• Over-rented income (14.3)

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Office developments
Eastbourne Terrace, W2
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Landflex
Client
Land Securities
Higher earnings from capital invested Increased
renewal rates Improved IRRs
Menu of lease lengths Indexed rent
increases Inclusive charges No dilapidations Addit
ional services Budget certainty
Building Office space Status
7 Soho Square, W1 41,000m2 Let
Empress State, SW6 5,720m2 Let
Eastbourne Terrace, W2 7,640m2 Under development
Product innovation matched to market trends
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Property outsourcing
Property outsourcing risk transfer, price
certainty, customer service
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Property outsourcing
6 months to 6 months to 6 months to
30/09/03m 31/03/04m 30/09/04m
Segment profit including profit on sales
PRIME (including amortisation of goodwill) 27.6 29.6 29.1
ES (1.8) (4.4) 17.2
BBC (3.4) 10.0 10.5
Norwich Union - - 2.9
Bid costs (1.7) (4.5) (0.7)
Central costs (3.2) (4.1) (1.9)
Segment profit 17.5 26.6 57.1

Telereal profit before tax 16.4 13.9 37.7

Net assets(1) 746.7 889.6 960.0
Investment in Telereal joint venture 89.0 (47.9) (52.6)

1. Including 36m Norwich Union assets defined as
   finance leases

Strong growth from new contracts
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LS Trillium - new business pipeline
Drivers
Balance sheet Consolidation Government efficiency review
Flexibility Cost reduction 30 billion asset disposals
Corporates
Public Sector
Marketing and pre-proposal
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Outline proposal
2
1
Final proposal
1
2
Final close
1
0
Mobilisation
Growing private sector interest within pipeline
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Urban community development
Kent Thameside, south-east England

• (1) Eastern Quarry
• 79 ownership
• Outline planning application submitted
• 7,250 homes, 267,250m2 commercial and
  community accommodation
• (2) Ebbsfleet
• 42.5 ownership
• Outline planning consent obtained
• 789,500m2 commercial and residential floorspace
• (3) Springhead, Ebbsfleet phase I
• 42.5 ownership
• Quarter Master approval secured
• 600 homes and 50,000m2 offices
• (4) Swanscombe Peninsula
• Development management role
• Outline planning application to be submitted
• 1,700 residential units, 25,000m2 offices and
  6,000m2 retail and community accommodation

Brentwood
London
Thurrock
Kent Thameside
Bexley
Sevenoaks
Maidstone
Exciting opportunity delivering profits over 20
years
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Effect of debt refinancingBased on final pricing
Before After
1.80bn debentures and bonds 2.30bn secured bonds
weighted average interest rate 8.51 weighted average interest rate 5.35
A/A- rating (bonds only) AA/AA rating
1.55bn committed unsecured facilities expiring 2005 2006. New 1.5bn committed bank facility expiring late 2009. Bank debt has migrated
At 30 September 2004 At 30 September 2004 pro-forma for transaction(1)
Gearing (net debt/equity) 40.7 Gearing 54.7
Adjusted diluted NAV 1443p Adjusted diluted NAV 1342p
NNNAV 1228p NNNAV 1223p
Group weighted average cost of debt 7.64 Group weighted average cost of debt 5.52

1. As if refinancing had happened at 30 September
   2004 but based on final prices

Improved flexibility with lower future funding
costs
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Summary

• Sharper focus to range of activities
• More efficient debt structure earnings
  enhancing
• London portfolio well positioned for recovery
  phase
• short average lease lengths
• development pipeline
• Retail portfolio strengthened through organic
  growth
• Increasing interest in property outsourcing from
  private sector

A strategy delivering growing returns
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Contacts
Emma Denne Jennifer van der Eem Director of
Corporate Communication Investor Relations
Manager Tel [phone] Tel 44 (0) 20
7024 5185 Fax [phone] Fax 44 (0)
20 7024 5011 Email emma.denne_at_landsecurities.com
Email jennifer.vandereem_at_landsecurities.com ww
w.landsecurities.com Land Securities Group
PLC, 5 Strand, London, WC2N 5AF
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• Robert Heskett
• Head of Asset Management, Central London portfolio

UKSA Central London Tour 19 January 2005
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One New Change, EC4

• Description
• The building comprises 385,000ft2 of offices and
  26,000ft2 of retail held on a long lease from the
  Corporation of London. The majority of the
  office building is let to Allen Overy, who will
  occupy the premises until 2006. The retail
  accommodation is let to a mixture of tenants,
  including Lloyds Bank and Boots.
• Comment
• Land Securities purchased New Change from the
  Bank of England during 2000 and provides the
  opportunity to develop a substantial landmark
  building adjacent to St Pauls, with the ability
  to create the first major shopping complex on the
  Citys most prime retail frontage.

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30 Gresham Street, EC2

• Description
• Gresham Street is one of the Citys largest
  buildings providing approximately 390,000ft2 net
  of offices with floor plates up to 49,220ft2,
  offering exceptional levels of flexibility to
  high density occupiers. In addition, the scheme
  will provide approximately 14,000ft2 net of
  retail accommodation.
• Comment
• The scheme was completed in December 2003. The
  property stands on an island site providing a
  high profile frontage onto Gresham Street. The
  building was recently let in its entirety to
  DrKW, thus releasing their Fenchurch Street site
  to Land Securities.

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Red Lion Court, SE1

• Description
• This is a 128,325ft2 building of high quality
  specification with full air-conditioning and
  raised floors. The building is wholly let to
  Lloyds TSB Bank PLC for a term of 25 years from
  June 1990, expiring June 2015, on FRI terms and
  five yearly rent reviews.
• Comment
• Land Securities purchased the property in
  December 2004. The building is let off a rent of
  35ft2 and rental growth prospects are good,
  bearing in mind the improvements in the South
  Bank area. The value is underpinned by the
  possibility of a residential development in a
  popular riverside location.

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Bankside 123, SE1

• Description
• A mixed use development providing approximately
  750,000ft2 net of offices, 110,000ft2 net retail
  and health and fitness, arranged over 3
  buildings. Bankside neighbours the Tate Modern
  and is well connected to a number of transport
  hubs providing access to the City, West End and
  Docklands.
• Comment
• The building has been demolished and, as a
  result of the early pre-letting campaign,
  Bankside 1 has been pre-sold to IPC. Tenants are
  being sought for the remainder of the space
  before construction starts.

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Hill House, 1 Little New Street, EC4

• Description
• This is a building comprising 133,260ft2 plus
  car parking let in its entirety to Deloittes.
  The terms of the lease is 35 years from 1983,
  expiring in 2018 at a rent of c. 38ft2 per annum
  exclusive.
• Comment
• Land Securities purchased the freehold interest
  in this building in July 2004. The attractive
  running yield of 6.5 made this an attractive
  acquisition adjacent to the companys existing
  holdings in New Street Square and based on a
  first class covenant.

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New Street Square, EC4

• Description
• Planning permission for a 700,000ft2 scheme on
  the site of New Fetter Lane was submitted in
  2004.
• Comment
• After carefully considering current market
  trends, Land Securities has now made a planning
  application for the site which will involve 3-4
  buildings of between 150,000ft2 and 400,000ft2
  each. A pre-letting marketing campaign is
  underway and Heads of Terms have been agreed with
  Deloittes to take over 200,000ft2, although it is
  not yet documented.

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Greater London House, NW1

• Description
• This is a landmark 335,000ft2 building between
  Camden and the West End. Major occupiers include
  Book Club Associates, Young Rubicam and TUI.
  The building is fully occupied with most leases
  expiring in 2013.
• Comment
• Land Securities purchased the freehold interest
  in this building in July 2004. Average rents are
  c. 23ft2 and the rental growth prospects are
  strong for this popular building.

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6-17 Tottenham Court Road, W1

• Description
• A development completed in 1999 and comprising
  56,500ft2 of retail space currently divided into
  six large units let to a variety of tenants,
  including Sainsburys, Boots the Chemist and
  Specsavers. There is also a restaurant and some
  offices.
• Comment
• A new development providing good quality retail
  space, which is in short supply generally in the
  West End. The parade shows good rental growth
  prospects which should be reflected in the rent
  reviews in 2004, which are being progressed at
  present.

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Piccadilly Circus, W1

• Description
• Seven advertising screens let to international
  brands, such as Coca-Cola, McDonalds and TDK.
  Two large ground floor retail/restaurant units
  let to Boots the Chemist and Burger King.
• Comment
• A multi-let building in the heart of the West
  End. The signs have attracted household names
  for almost a century and the block continues to
  be popular with retailers and advertisers.