THE TRAFFORD CENTRE LIMITED QUARTERLY REPORT CASHFLOW STATEMENT AND MANAGEMENT COMMENTARY FOR THE PERIOD ENDING 31 December 2017 340,000,000 Class A2 6.50 per cent. Secured Notes due 2033 120,000,000 Class B 7.03 per cent. Secured Notes due 2029 50,000,000 Class D2 8.28 per cent. Secured Notes due 2022 NOTES ISSUED 28 th FEBRUARY 2000 108,000,000 Class A3 Floating Rate Secured Notes Due 2038 NOTES ISSUED 27 th JUNE 2005 80,500,000 Class A3 Floating Rate Secured Notes Due 2038 20,000,000 Class B2 Floating Rate Secured Notes Due 2038 69,550,000 Class D1 (N) Floating Rate Secured Notes Due 2035 RESERVE NOTES ISSUED 30 TH JANUARY 2006 20,000,000 Class A4 Fixed Rate Bonds Due 2024 20,000,000 Class B3 Fixed Rate Bonds Due 2029 70,000,000 Class D3 Fixed Rate Bonds Due 2029 NOTES ISSUED 4 TH MARCH 2014 Note this Report may be accessed via the Intu Properties website as follows:
Website: http://www.intugroup.co.uk/investors/shareholders-bondholders/bondsdebentures/the-trafford-centre-securities/ And then click on the Quarterly Report to Noteholders on the right hand side The Trafford Centre Limited issues its Quarterly Management Report for the period 1 January 2017 to 31 December 2017 The Report Contents Include: o Cashflow Statement for The Trafford Centre Limited o Debt Service Cover Ratio o Analysis of Lease Expiration o Concentration of Lease Size o Lease Information on Major Tenants o Tenant Mix in the Centre and Analysis by Category o Report on Occupational Tenants
Class Original Face Value Opening Balance Amortisation Interest Closing Balance Class A2 due 2033 340,000,000.00 298,157,560.00 2,769,980.00 4,845,060.35 295,387,580.00 Class B due 2029 120,000,000.00 71,831,040.00 1,056,960.00 1,262,430.53 70,774,080.00 Class D2 due 2022 50,000,000.00 50,000,000.00 615,000.00 1,035,000.00 49,385,000.00 Class A1(N) due 2015 * 76,500,000.00 - - - - Class A3 due 2038 * 108,000,000.00 108,000,000.00-311,819.55 108,000,000.00 Sub Totals 694,500,000.00 527,988,600.00 4,441,940.00 7,454,310.43 523,546,660.00 * issued on 27th June 2005, Class A1 (N) now fully redeemed. QUARTERLY PAYMENT SCHEDULE Payment period 30 October 2017 to 29 January 2018 Payment Date 29 January 2018 The following notes were issued on 30th January 2006: Class Original Face Value Opening Balance Amortisation Interest Closing Balance Class A3 due 2038 80,500,000.00 80,500,000.00-232,421.06 80,500,000.00 - - Class B2 due 2038 20,000,000.00 20,000,000.00-62,730.66 20,000,000.00 - - Class D1(N) due 2035 69,550,000.00 29,054,025.65-176,241.29 29,054,025.65 Sub Totals 170,050,000.00 129,554,025.65-471,393.01 129,554,025.65 The following notes were issued on 4th March 2014: Class Original Face Value Opening Balance Amortisation Interest Closing Balance Class A4 due 2024 20,000,000.00 20,000,000.00-143,750.00 20,000,000.00 Class B3 due 2029 20,000,000.00 20,000,000.00-212,500.00 20,000,000.00 Class D3 due 2029 70,000,000.00 70,000,000.00-831,250.00 70,000,000.00 Sub Totals 110,000,000.00 110,000,000.00-1,187,500.00 110,000,000.00 Grand Totals 974,550,000.00 767,542,625.65 4,441,940.00 9,113,203.44 763,100,685.65
CASHFLOW STATEMENT - THE TRAFFORD CENTRE LIMITED PERIOD : 1st January 2017 to 31st December 2017 Quarter ended Quarter ended Quarter ended Quarter ended Total 31/03/2017 30/06/2017 30/09/2017 31/12/2017 INCOME '000 '000 '000 '000 '000 Rents 22,303 22,990 21,277 23,642 90,212 Turnover Rents (inc On Accounts) 1,201 571 947 526 3,245 Service Charge Income 5,162 4,354 4,056 4,503 18,075 Advertising Income - - - - - Interest Received - - - - - Premiums Received 33 - - - 33 Miscellaneous - 48-20 68 28,699 27,963 26,280 28,691 111,633 EXPENDITURE Interest & Bank Charges (11,770) (11,526) (11,584) (12,008) (46,888) Payroll - - - - - Service Charge Costs (4,327) (4,053) (4,054) (5,068) (17,502) Property Overheads (883) (808) (877) (1,111) (3,679) Corporation Tax/REIT Entry fee - - - - - Premiums Paid - - - - - Miscellaneous - - - - - Amortisation of notes (3,588) (3,827) (3,827) (3,827) (15,069) VAT 430 91 (386) 1 136 Capital Expenditure (829) (39) (131) (310) (1,309) (20,967) (20,162) (20,859) (22,323) (84,311) AMOUNTS FROM OPERATIONS 7,732 7,801 5,421 6,368 27,322 Dividends - Intergroup Transfer (13,000) - - (22,243) (35,243) NET INFLOW/(OUTFLOW) (5,268) 7,801 5,421 (15,875) (7,921)
THE TRAFFORD CENTRE LIMITED - DSCR for the period ending 31 December 2017 Debt Service = any relevant 12 month period, aggregate of all interest charges..and principal repayments DSCR = for the relevant 12 calendar months of Rental Income and Advertising Income and earnings accrued on borrower accounts less any costs incurred in respect of the operation of the Property and not reimbursed by payment of Service Charges and tax Quarter ended Quarter ended Quarter ended Quarter ended Total 31/03/2017 30/06/2017 30/09/2017 31/12/2017 '000 '000 '000 '000 '000 Rents 22,303 22,990 21,277 23,642 90,212 Turnover Rents (inc On Accounts) 1,201 571 947 526 3,245 Advertising Income 0 0 0 0 0 Costs not recovered via Service Charge Serice Charge under recovery 835 301 2 (565) 573 Other Costs Net Miscellanous income against cost 0 48 0 20 68 Property Overheads (883) (808) (877) (1,111) (3,679) 23,456 23,102 21,349 22,512 90,419 Interest & Bank Charges 11,770 11,526 11,584 12,008 46,888 Amortisation of notes 3,588 3,827 3,827 3,827 15,069 Interest Received 0 0 0-0 15,358 15,353 15,411 15,835 61,957 DSCR 1.46:1
Percentages Percentage ANALYSIS OF LEASE EXPIRATION (YEARS) Break not exercised Years 0-5 5-10 10-15 15-20 20-25 weighted by rent 28.77% 47.55% 14.71% 7.93% 1.04% weighted by space 17.48% 38.41% 18.12% 25.28% 0.71% 50% 45% 40% 35% 30% 25% 20% 15% 10% 5% 0% 0-5 5-10 10-15 15-20 20-25 Years weighted by rent weighted by space Break exercised Years 0-5 5-10 10-15 15-20 20-25 weighted by rent 46.90% 36.09% 10.74% 6.27% 0.00% weighted by space 27.98% 31.97% 28.17% 11.88% 0.00% 50% 45% 40% 35% 30% 25% 20% 15% 10% 5% 0% 0-5 5-10 10-15 15-20 20-25 Years weighted by rent weighted by space
CONCENTRATION OF LEASE SIZE (SQM) 200-400 - 600-800 - 1000-5000 - 0-50 50-200 400 600 800 1000 5000 10000 10000 + weighted by rent 5.42% 16.58% 23.47% 9.43% 6.71% 3.01% 16.61% 11.22% 7.55% weighted by space 0.86% 6.06% 10.72% 7.32% 4.69% 2.66% 19.64% 16.25% 31.80% LEASE INFORMATION ON MAJOR TENANTS Tenant Gross Lease Expiry Term Break Next Rent (trading name) Internal Option Review Area(m) Debenhams MSU 1 12,393 23rd June, 2033 35yrs N/A 24-Jun-18 Topshop / Topman MSU 2 5,589 23rd June, 2033 35yrs N/A 24-Jun-18 Selfridges MSU 3 18,294 24th Dec, 2032 35yrs N/A 25-Dec-17 Boots MSU 4 5,075 10th March, 2023 25yrs N/A 11-Mar-18 Marks & Spencer MSU 5 7,678 25th February 2026 25yrs N/A 26-Feb-16 John Lewis Partnership MSU6 20,671 25th July 2034 30yrs N/A 21-Feb-20 Next MSU8 3,521 25 November 2022 10 yrs N/A 26-Nov-17 W H Smith plc LSU 3 725 8th January 2022 10yrs N/A 09-Jan-17 Redcastle Ltd t/a Dorothy Perkins LSU 16 1,174 23rd June, 2023 25yrs N/A 24-Jun-13 Currys Digital LSU 18 931 6th May, 2023 25yrs N/A 07-May-18 Victoria's Secrets Ltd LSU 14 1,063 7th March 2028 15yrs N/A 08-Mar-18 MSU = Major space user LSU = Large space user
TENANT MIX IN THE CENTRE AND ANALYSIS BY CATEGORY Category of Tenant Floor Space occupied Number of Leases in each Category Percentage of Total Rent Anchor Tenant 46.38% 10 20.09% Banks 0.14% 1 0.36% Books/Cards 1.36% 4 2.88% Childrenswear 0.28% 1 0.00% Confectionery 0.23% 6 1.10% Electrical Computer retailers 1.49% 5 3.08% Gifts/Soft furnishing/furniture 0.23% 4 0.44% Health & Beauty 1.19% 11 3.98% Jewellers 1.63% 16 5.20% Ladieswear 4.01% 16 8.53% Menswear 1.97% 9 4.45% Mixed: Ladies & Menswear 10.03% 27 18.64% Opticians 0.28% 2 0.88% Outdoor Clothing/Equipment 0.19% 1 0.37% Phone retailers inc Mobiles 0.94% 8 3.12% Music Retailers 0.23% 1 0.40% Footwear 1.93% 12 4.86% Sportswear 0.91% 2 1.98% Toys 1.16% 2 0.55% Travel Agents 0.35% 4 1.09% Voids 3.88% 22 0.00% Kiosk (Food) 0.62% 14 2.99% Leisure 7.22% 5 2.78% Mall café 0.82% 9 1.54% Office 1.36% 5 0.48% Other 1.51% 61 1.58% Other Void 0.29% 16 0.13% Restaurant 9.37% 31 8.50% TOTALS 100.00% 305 100.00% Floor Space occupied, Number of Leases and Percentage of Total Rent are now based upon the Centre as a whole.
intu Trafford Centre Quarterly Report December 2017 Report on Occupational Tenants 1.0 New Lettings The Centre continues to thrive through active management, securing new high profile tenants and providing right size solutions for existing retailers. Exchanged U53: Argento. Exchanged on new 10 year lease with Argento with three months RF period and tenant only break on 6 months notice and three month equivalent rent penalty. Solicitors Instructed U9: Solicitors instructed on new lease on 10 year term with 5 month s rent free U10 Solicitors instructed on new lease on 10 year term with 5 month s rent free U26/27: Solicitors instructed on new lease on 10 year term with 5 month s rent free U27A Solicitors instructed on a new five year lease on newly created unit to be constructed by infill of existing fire escape. L36: Solicitors instructed on a new 10 year lease and surrender of tenant s existing lease for relocation with 3 month s rent free 2.0 Surrender & Relets. Exchanged Solicitors instructed L9/10 Solicitors instructed for surrender of existing lease following tenant s relocation to new unit at L36 to secure vacant possession of L9/10 for future letting. 3.0 Lease Renewals & Reversionary Leases Exchanged R7B: Exchanged on reversionary lease with Barburrito for an extended ten year term with 3 month s rent free. K11: Exchanged on reversionary lease with Barburrito or an extended ten year term with 3 month s rent free following completion of tenants shopfit. Solicitors instructed U54/55 Solicitors instructed on 10 year lease renewal with 3 months rent credit to be applied following completion of tenant s shopfit. 4.0 Voids L28 L29A U52 The unit is being marketed for a suitable tenant. Temporary tenant in occupation until February 2019 The unit is being marketed for a suitable tenant. Temporary tenant in occupation until The unit is being marketed for a suitable tenant. Temporary tenant in occupation until August 2018. December 2017
L83/84 The unit is being marketed for a suitable tenant. Currently shell unit L58A The unit is being marketed for a suitable tenant. Currently shell unit 5.0 Assignments & Sublets U71B- ITGK1 Dr Martens: Exchanged on assignment of Phase Eight Lease with Dr Martens for remainder of the lease term Oh you Pretty Things: Exchanged on assignment of Mixed Blessings lease following tenant entering administration. 6.0 Administration & Liquidation LSU2 USC: tenant entered administration. 180k received as first and final dividend. Awaiting liquidation of the company. 7.0 Rent Reviews 2011 18 agreed rent reviews 2012 15 agreed rent reviews.2 notices served, total 17. 2013 44 agreed rent reviews, 2 notices served, total 46. 2014 16 agreed rent reviews, 2015 16 agreed rent reviews, 5 notices served, total 21. 2016 24 agreed rent reviews. 8 notices served, total 32. 2017 8 agreed rent reviews. 21 notices served, total 29. 8.0 Miscellaneous The ongoing management of peripheral property including smaller units, remote storage areas for tenants, ATMs and telecoms equipment continues with various new leases and renewals December 2017