Hammerson Plc · LSE:HMSO
Hammerson — FY2018 Earnings Presentation
95 slides from Hammerson's earnings presentation, Feb 25, 2019
Slide 1: 2018 Full-year results
Victoria, Leeds 2018 Full-year results 25 February 2019
Slide 2: Agenda
Agenda 01 2018 overview and 2019 priorities David Atkins – CEO 02 2018 financial results Timon Drakesmith – CFO 03 Actively managing the changing shape of retail David Atkins – CEO 04 Conclusion and Q+A 2
Slide 3: Progress in a challenging market
2018 overview Progress in a challenging market Challenges 2018 performance Structural shift in retail Continued demand for our space UK online penetration 18% (1) Total leasing £27.7m rent Significant increase in tenant failures 6% above ERV, 5% above previous passing rent Winning and losing brands
Slide 4: Weakening investment market impacting our valuations
2018 overview Weakening investment market impacting our valuations Market investment volumes (£bn) (1) 2018 valuation change (%) (2) H1 H2 12 2 £9.7bn 0 10 -2 8 £6.7bn -4 6 -6 £4.0bn 4 -8 2 -10 0 -12 2016 2017 2018 UK UK retail France Ireland Premium Group flagships parks flagships flagships outlets
Slide 5: 2019 priorities driven by structural retail shift
2019 priorities Structural retail shift and increasingly challenging markets driving our priorities Capital efficiency Optimised portfolio Operational excellence Exiting retail parks Reducing debt Managing structural shift Pursuing portfolio-wide in retail disposals 5
Slide 6: Number one priority for 2019 is reducing debt
2019 priorities Number one priority for 2019 is reducing debt Cash proceeds/uses (£m) 600 Future share buybacks on hold £95m reduction in until we achieve our enhanced debt portfolio disposal goal and see 500 greater market certainty £179m debt reduction in H2 18 400 Target net debt c.£3.0bn by Dece
Slide 7: Absolute commitment to disposals
2019 priorities Absolute commitment to disposals Hammerson annual disposal proceeds (£m) 700 2018 disposals £570m achieved 600 50% Highcross and four retail parks 7% below Dec 2017 book value 500 2014 – 2018 average £395m p.a. 2019+ disposals 400 >£500m target 300 Exit retail parks Pursuing disposal
Slide 8: 2018 financial results
2018 financial results Timon Drakesmith – CFO and MD, Premium Outlets 8
Slide 9: Headline financial results
Headline financial results Income statement 31 Dec 2018 31 Dec 2017 Change Net rental income (£m) 347.5 370.4 (6.2%) Adjusted profit (£m) 240.3 246.3 (2.4%) Adjusted EPS (p) 30.6 31.1 (1.6%) Final dividend (p) 14.8 14.8 − Total dividend (p) 25.9 25.5 1.6% Balance sheet Change Portfolio value (£m) 9,
Slide 10: Portfolio valuation summary
Portfolio valuation summary Sector FY 2018 H2 2018 Value at Portfolio capital return (1) capital return (1) 31 Dec 18 (2) weighting (2) % % £m % Flagship destinations UK (10.6) (9.3) 2,921 29 France (1.7) (0.7) 1,885 19 Ireland 0.9 (1.0) 979 10 Premium outlets 2.4 1.2 2,459 25 Developments 4.1 1.2 6
Slide 11: Valuation drivers: yield and ERV movements
Valuation drivers: yield and ERV movements Sector (1) NEY NEY ERV Commentary 31 Dec 2018 increase/ increase/ (decrease) (decrease) in 2018 in 2018 % bps % Flagship destinations UK 5.3 +37 −2.0 Yields underpinned by transactions (Highcross, Clapham) and Dec 18 RICS guidance France 4.2 −6 +0.5 ERVs dr
Slide 12: Credit ratios
Credit ratios Internal guidelines 31 Dec 2018 31 Dec 2017 Net debt - £3,406m £3,501m Gearing <85% 63% 58% LTV – headline (1) <40% 38% 36% LTV – fully proportionally consolidated (2) <45% 43% 40% Cash and undrawn facilities - £729m £958m Debt maturing in <2 years - nil £491m Weighted average cost of
Slide 13: Net debt analysis
Net debt analysis Net debt analysis (£000m) (1) 3600 3500 3,501 570 3400 117 3,406 3300 230 3,406 Reduce debt 3200 3100 127 3000 c.3,000 2900 203 204 2800 2700 2600 (3) Dec 2017 Disposal Net operating Dividend Share buyback Capex Outlet Dec 2018 2019 target (2) proceeds cashflow acquisitions and (4)
Slide 14: Flexibility over future capital expenditure
Flexibility over future capital expenditure Capex 2018-2020 Committed 2018 2019 2020 Actual Forecast Forecast £m £m £m On-site developments 95 70 80 Other committed capex (1) 74 25 - 169 95 80 Discretionary Flagship destination investment 43 38 40 City Quarters 2 7 20 45 45 60 Total 214 140 140 1 20
Slide 15: LfL NRI movements
LfL NRI movements LfL NRI movements across the portfolio (%) Key drivers CVAs (-4.7%) UK Retail Parks (4.3) CVAs (-2.1%), Westquay UK Flagships (1.3) and Grand Central Lower occupancy and France Flagships (0.9) backdated turnover rent in 2017 Rent reviews and leasing Ireland Flagships 1.6 Growth at
Slide 16: Stand out growth rates from premium outlets
Stand out growth rates from premium outlets Premium outlets financial summary 2014-2018 (1) 2014 2015 2016 2017 2018 CAGR (2) £m £m £m £m £m GRI 72 87 101 139 160 22.4% NRI 52 66 68 98 113 21.3% Marketing expenditure (3) 13 14 23 27 34 26.5% Marketing:GRI ratio 18% 16% 23% 19% 21% EBIT 32 37 43 59 6
Slide 17: Premium outlet valuations driven by sales density
Premium outlet valuations are driven by sales density levels Yields on premium outlets Sales densities illustrate appeal to consumers, brands and investors 2 €8,000-39,000/m Very high (1) 2018 weighted average sales density was €9,800/m2, up +5% YoY Sales density (€000/m2) Weighted average NIY 4.7%
Slide 18: 2018 earnings and future guidance
2018 earnings and future guidance 2018 EPS walk (pence per share) Debt reduction phase Future 2021+ 2019-2020 2017 31.1 Net disposals (3.5) 27.6 Negative Neutral LfL NRI 27.1 (0.5) Negative Positive Development and other 27.1 1.0 Neutral Positive Interest, net admin and 28.1 2.1 other Positive Posit
Slide 19: Actively managing the changing shape of retail
Rooftop at Les Terrasses du Port, Marseille Actively managing the changing shape of retail David Atkins - CEO 19
Slide 20: Hammerson's geographic diversification mitigates risk
Hammerson’s geographic diversification mitigates risk Hammerson portfolio split by value UK France Ireland Premium outlets 8% 9% 29% 2019 online 18% 11% 10% 10% (4) penetration (1) 25% Consumer 1.1% 1.3% 2.2% 3-5% (5) spending 19% growth 2019 (2) 10% Rental income -1.6% 1.1% 4.7% 6.2% (5) growth 201
Slide 21: Responding to our changing markets
Responding to our changing markets Structural shift in retail Elevating experience Our response: Leasing strategy Our response: Leisure & super events Luxury sales outperform Thriving cities Our response: Premium outlets platform Our response: City Quarters 21
Slide 22: Online growth a key factor in declining store numbers
Structural shift in retail Online growth a key factor in declining store numbers Channel shift has been fast in the UK Those slow to adapt are failing UK retail online penetration % (1) UK net store openings & closures by category (2) 22 2,000 20 1,000 18 0 2012 2013 2014 2015 2016 2017 2018 16 (1,0
Slide 23: Differentiation between categories and brands in our UK portfolio
Structural shift in retail Differentiation between categories and brands in our UK portfolio 2018 footfall Hammerson UK flagship destinations category sales and range Hammerson -1.8% 45% Index -3.5% (1) 35% 2018 sales Hammerson -2.9% 25% Index -2.7% (2) 15% 2018 price deflation (3) Non-food -1.5% 14
Slide 24: Managing the significant increase in tenant failures
Structural shift in retail Managing the significant increase in tenant failures Number of units impacted by CVAs and admins in UK by category, 2017-2018 (1) 2017 2018 30 86 stores impacted; 80% of units trading 25 £6m NRI impact in 2018, 1.7% group passing rent 20 7 units impacted YTD 2019 15 10 5 0
Slide 25: Successful brands want the right physical presence
Structural shift in retail Successful brands want the right physical presence The role of physical space is +11% brands taking space (vs. 2013) (1) evolving Brand awareness Online catchment sales Service Fulfilment Returns Morphe, Bullring 1 Source: LDC growth in brands with at least five UK stores,
Slide 26: Strong leasing volumes in our flagship destinations
Structural shift in retail Strong leasing volumes in our flagship destinations Flagship destinations leasing (£m) Flagship leasing 2018 2017 volumes £m £m 5.0 25.0 UK 14.4 13.4 4.5 France 4.0 20.0 7.3 9.8 3.5 Ireland 2.6 1.9 3.0 15.0 2.5 Total 24.3 25.1 2.0 10.0 1.5 Group leasing key facts 1.0 5.0 L
Slide 27: Actively managing the mix, leasing to winners
Structural shift in retail Actively managing the mix, leasing to winners Category Current mix Future mix Rent/sq ft New Near-term leasing (1) rental levels Department stores 38% c.28% c.£10/sq ft nil High street fashion (traditional) 16% c.10% c.£30/sq ft 13% F&B 10% c.12% c.£40/sq ft 11% High stree
Slide 28: Proven success with repurposing department store space
Structural shift in retail Proven success with repurposing department store space Cabot Circus: income uplift of £1.1 million, yield on cost +9% Former BHS store TK Maxx Metro Bank Indicative plan for further repurposing Indicative financials Income uplift +50% Costs c. £20m Target yield on cost 5-8
Slide 29: Humans are social creatures
Elevating experience Humans are social creatures Participation in free time activities (%) (1) Watching TV Spending time with friends/family Shopping Eating out at restaurants Days out or visits to places Internet/emailing Going to the cinema Going to pubs/bars/clubs Theatre/music concerts 0 20 40 6
Slide 30: Bringing excitement back to F&B
Elevating experience Bringing excitement back to F&B 55% of new UK F&B lettings in 2018 were to independent, local or emerging brands Mowgli Brewdog Miami Burger Mission Burrito BH byDessert Little Beef House Shop Herman Ze German 30
Slide 31: Creating a buzz: events people want to experience
Elevating experience Creating a buzz: events people want to experience +£2m investment in £10m online sales - 2019 experiential events in 2019 Festival of Light at Westquay, Southampton Transactional websites at Bullring and Westquay (1) 1 Transactional websites allow shoppers to purchase online fro
Slide 32: Desire for off-price luxury underpins high-end spending
Luxury sales outperform A desire for off-price luxury underpins high-end spending Global personal luxury goods off-price store sales (€bn) (1) 50 45 6.2% CAGR 40 35 30 25 €47bn 20 15 €31bn 10 5 0 Bicester Village 2018 2025F 1 Source: 2018 Bain luxury goods study 32
Slide 33: Our premium outlets are differentiated
Luxury sales outperform Our premium outlets are differentiated The six most high-end outlets (1) make up more than 65% of total income Income by outlet – Hammerson share (£m) Bicester Village, London La Vallée Village, Paris La Roca Village, Barcelona Income Las Rozas Village, Madrid £183.5m (2) Fre
Slide 34: We are in thriving cities
Thriving cities We are in thriving cities Consumer spending and population growth forecast in Hammerson flagship locations (1) 6% 5% London Forecast population growth (2018-23), % Birmingham 4% Ireland Bristol Southampton Croydon Reading Dublin 3% Leicester UK 2% Leeds France Glasgow 1% 0.7% Marseil
Slide 35: Development expertise in action in France
Thriving cities Development expertise in action: on-site at two French flagship destinations On-site schemes Major developments Les 3 Fontaines, Cergy Italik, Paris 2018 progress Start on site Jan 18 Jun 18 Brent Cross Opening Ongoing discussions with key Q2 2021 Q2 2020 stakeholders Cost to complet
Slide 36: City Quarters: an opportunity beyond retail
Thriving cities City Quarters: an opportunity beyond retail Moving beyond retail to create vibrant city neighbourhoods 97 acres 6,600 residential units 1,200 hotel rooms 200,000m2 work space 9 parks and public spaces Bristol Metrics include City Quarters and major developments 36
Slide 37: City Quarters: creating value today and tomorrow
Thriving cities City Quarters: creating value today and tomorrow Residential building, Dundrum Hotel, Victoria Leeds Short term opportunities Uses to include residential, co-working, hotel Planning consent on at least two sites in 2019 Initial delivery by end of 2021 Target YOC 5-6% Strategic sites
Slide 38: Conclusion
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Slide 39: A clear plan to create value
A clear plan to create value Build Continually balance sheet evolve Beyond strength our spaces retail Shareholder returns Reducing debt Repurposing City Quarters retail space beyond flagship Exiting retail parks destinations and pursuing Enhancing portfolio-wide experience with Vibrant disposals F&B
Slide 40: Questions
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Slide 41: Supplementary Appendices
Victoria, Leeds Supplementary Appendices 41
Slide 42: Contents
Contents 01 Group 02 UK flagship destinations 03 France flagship destinations 04 Ireland flagship destinations 05 Premium outlets 06 UK retail parks 42
Slide 43: Group
Westquay, Southampton 01 Group 43
Slide 44: Group portfolio overview
£9.9 billion leading 54 European pan-European retail flagship platform destinations 14 countries 8% 9% 29% Top 3 market position in all chosen sectors 25% 19% 48% 10% non-UK assets 2.3m UK flagship destinations - £2.9bn m2 retail space France flagship destinations - £1.9bn Ireland flagship destinati
Slide 45: 2018 Group leasing performance
Appendices: Group 2018 Group leasing performance 2018 leasing and cumulative vs. 2017 and 2016 (£m) 5.0 35 4.5 30 4.0 3.5 25 3.0 20 2.5 15 2.0 1.5 10 1.0 5 0.5 0.0 0 May March April August February July January October June November September December Monthly leasing 2018 (LHS) Cumulative leasing ac
Slide 46: 2018 Group leasing performance by sector
Appendices: Group 2018 Group leasing performance by sector 2018 leasing by sector (£m) 5.0 4.5 4.0 3.5 3.0 2.5 2.0 1.5 1.0 0.5 0.0 March April May August July February June January October November September December UK flagship destinations France flagship destinations Ireland flagship destinations
Slide 47: 2018 portfolio leasing overview
Appendices: Group 2018 portfolio leasing overview Leasing vs Leasing vs Like-for-like ERV New rent secured previous passing ERV (%) growth from leasing (%) (%) (£m) UK flagship destinations +1 +5 –2.0 14.4 France flagship destinations +5 +5 +0.5 7.3 Ireland flagship destinations +28 +8 +2.8 2.6 UK r
Slide 48: 2018 administrations and CVAs
Appendices: Group 2018 administrations and CVAs UK France Ireland UK UK Group flagship flagship flagship retail parks other destinations destinations destinations interests Dec 17 total units in administration or CVA 17 27 - 3 3 50 Dec 18 total units in administration or CVA 49 23 - 12 8 92 Dec 18 t
Slide 49: 2018 operational statistics
Appendices: Group 2018 operational statistics UK flagship France flagship Sales UK France (5) destinations destinations densities (4) £/ft2 £/ft2 Sales (1) –2.9% +2.2% 2018 235 – 496 356– 490 Footfall (2) –1.8% +2.5% 2017 240 – 490 402 – 500 Rent:sales (3) 13.3% 10.7% 2016 250 – 515 350 – 562 OCR (3
Slide 50: Our Product Experience Framework
Appendices: Group Our Product Experience Framework We create desirability Iconic destinations Retail specialism Experience led Customer first Built environment Optimal retail mix Food & beverage Insight driven Placemaking Fresh concepts Leisure as anchor Frictionless experience Seamless technology I
Slide 51: 2018 components of valuation change
Appendices: Group 2018 components of valuation change Components of valuation change in 2018, total portfolio (£m) 100 56 40 34 30 39 19 16 5 2 9 2 0 -8 -8 -10 -2 -6 -14 -26 -46 -100 -73 -98 -126 -200 -300 -279 -347 -400 -385 -392 -500 UK flagship France flagship Ireland flagship Premium outlets UK
Slide 52: 2018 valuation data
Appendices: Group 2018 valuation data UK France Ireland UK UK Total flagship flagship flagship retail other portfolio destinations destinations destinations parks interests True equivalent yield (%) 31 Dec 2018 5.5 4.3 4.5 6.8 8.0 5.3 31 Dec 2017 5.1 4.4 4.4 6.2 7.2 5.0 Change (bps) +40 –10 +10 +60
Slide 53: Key disposals achieved 2016 - 2018
Appendices: Group Key disposals achieved 2016 - 2018 2016 : average -2% below book value Proceeds (1) £m Buyer Monument Mall, Newcastle 75 Standard Life Villebon 2, Villebon-sur-Yvette 132 French Institution Thurrock Shopping Park 100 TH Real Estate Manor Walks shopping centre, Cramlington 78 Arch (
Slide 54: On-site and recently completed developments
Appendices: Group On-site and recently completed developments On-site developments Lettable Expected Value Estimated Estimated Let (5) area m2 completion 31 Dec cost to annual % 2018 complete (2) income (3) £m £m £m Italik, Italie Deux extension, Paris 6,400 Q2 2020 22 22 2 34 Les 3 Fontaines extens
Slide 55: Debt maturity profile
Appendices: Group Debt maturity profile Debt maturity profile 31 December 2018 (£m) 900 800 700 600 Revolving credit facilities 500 Private placement Sterling bonds 400 Euro bonds 300 Secured debt 200 100 0 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 Note: Proportionally consoli
Slide 56: LTV methodology
Appendices: Group LTV methodology 31 December 2018 Headline (£m) Fully proportionally Net debt consolidated (£m) Group 3,406 3,406 VIA Outlets - 242 Value Retail - 658 Loan 3,406 4,306 Property values Group 7,480 7,480 VIA Outlets - 636 Value Retail - 1,823 VIA Outlets net assets 326 - Value Retail
Slide 57: Gearing sensitivity
Appendices: Group Gearing sensitivity Disposals (£m) (2) 0 100 200 300 400 500 600 700 800 900 1000 0% 63% 61% 59% 57% 55% 54% 52% 50% 48% 46% 44% Reduction in Group 5% 69% 67% 65% 63% 61% 59% 57% 55% 53% 51% 49% values (1) 10% 77% 74% 72% 70% 68% 65% 63% 61% 59% 56% 54% 15% 86% 84% 81% 79% 76% 74%
Slide 58: Cost savings delivery on track to support reinvestment
Appendices: Group Cost savings delivery on track to support reinvestment Breakdown of annual cost savings (£m) 2019 reinvestment (£m) £7m p.a. £1.3m p.a. from future disposals Disposals £0.3m £4m p.a. Operational £2.7m £5.7m p.a. of Technology and cost savings innovation delivered £2m in 2018 Board
Slide 59: Our Sustainability Vision
Our Sustainability 2018 Materiality Review Vision: We regularly review our sustainability strategy with key To create retail destinations stakeholders to ensure we stay focused on the most relevant issues for our business and stakeholders. that deliver positive impacts Following our 2018 review, our
Slide 60: Delivering against our Positive Places Strategy
Our achievements in 2018 Our plans for 2019 11% reduction in energy demand Reducing energy demand across the managed retail portfolio by a further 11% £790k energy costs savings for retailers and JV partners Installing additional renewable electricity Delivering against capacity at three sites our P
Slide 61: Target to be Net Positive for carbon, water, resource use
Hammerson has set a target to be Net Positive for carbon, water, resource use Carbon Resource Use and socio-economic impacts by 2030 Net Positive for carbon means Net Positive for resource use means waste avoided, carbon emissions recycled or re-used exceeds avoided exceed materials used that are ne
Slide 62: Steps to becoming Net Positive
Steps to becoming Net Positive Our phase one target is to be Net Positive for landlord controlled carbon emissions, water demand, resource use and socio-economic impacts by the end of 2020 2015 27,000 tonnes CO2e 2016 539,082 m3 water 18,243 tonnes waste not 24,000 tonnes CO2e 2017 recycled or reuse
Slide 63: UK flagship destinations
Westquay, Southampton 02 UK flagship destinations 63
Slide 64: 2018 operational update
Appendices: UK flagship destinations 2018 operational update UK flagship destinations UK flagship destinations 2018 2017 11 LfL NRI (%) −1.3 +1.8 Occupancy (%) 97.6 98.1 Leasing activity (£m) 14.4 13.4 Leasing vs. ERV (%) +5 +8 Leasing vs previous passing (%) +1 +6 In-store retail sales (%) (1) −2.9
Slide 65: 2018 UK flagship leasing performance
Appendices: UK flagship destinations 2018 UK flagship leasing performance 2018 leasing and cumulative vs. 2017 and 2016 (£m) 2018 leasing 3.5 16 £m Principal leasing 8.6 14 3.0 Reconfigurations 12 3.7 2.5 Temporary and 10 other 2.1 2.0 Total 8 14.4 1.5 6 1.0 UK flagship leasing key facts 4 Leasing v
Slide 66: Profile of leasing at UK flagships
Appendices: UK flagship destinations Profile of leasing at UK flagships 60% of total leasing to principal lettings 26% to reconfigured space Drives income Rebases value Principal lettings vs ERV (%) 100% Next, Oracle 80% 60% 40% 14% to short term/pop ups 20% Trial new concepts Enliven space 0% Contr
Slide 67: UK flagship leasing vs. previous passing rent
Appendices: UK flagship destinations UK flagship destinations leasing vs. previous passing rent Principal lettings vs previous passing rent (%) 120% 71% leases at or above 100% previous passing 80% 60% 40% 20% 0% -20% -40% -60% 67
Slide 68: Leasing to quality operators in 2018
Appendices: UK flagship destinations Leasing to quality operators in 2018 Digital brands and Personal luxuries Fashion – aspirational F&B and leisure direct to consumer 68
Slide 69: Continued leasing demand in F&B
Appendices: UK flagship destinations Continued leasing demand in F&B 2018 F&B leasing (£000) Key leasing deals 2017 2018 Coffee and Grab & 1000 Fast Casual Go 900 +38% YoY 800 700 Oracle Dundrum 600 Renewal +11% uplift New unit +104% vs ERV 500 400 Mid Market Other 300 200 100 Highcross Union Square
Slide 70: Exposure to department stores
Appendices: UK flagship destinations Exposure to department stores Hammerson exposure to department stores in UK John Lewis, Grand Central, Birmingham Number of Floorspace Hammerson stores sales growth (‘000 sq ft) Harvey Nichols 2 85 +ve Selfridges 1 260 John Lewis 5 1,230 Marks & Spencer 4 305 Fen
Slide 71: Proactively reconfiguring department store space
Proactively reconfiguring Upsized Zara store now trading department store space House of Fraser Highcross, Leicester Proactively took back underperforming House of Fraser unit 11,000m2 across 3 floors Replaced with upsized Zara and JD Sports flagships, Adventure Golf, restaurants and additional car
Slide 72: Repurposing retail to F&B at Grand Central
Appendices: UK flagship destinations Repurposing retail to F&B at Grand Central Comptoir Libanais Mowgli Opportunity to create vibrant 1,700m2 F&B terrace Replaced underperforming retailers with local and independent F&B operators Income uplift of £835,000 Holy Moly Macaroni 72
Slide 73: France flagship destinations
Les Terrasses du Port, Marseille 03 France flagship destinations 73
Slide 74: 2018 operational update
Appendices: France flagship destinations 2018 operational update France flagship destinations 2018 2017 LfL NRI (%) −0.9 +2.6 Occupancy (%) 97.1 97.9 Leasing activity (£m) 7.3 9.8 Leasing vs. ERV (%) +5 +5 Leasing vs. previous passing (%) +5 +8 In-store retail sales (%) (1) +2.2 +0.1 Footfall (%) (2
Slide 75: Portfolio weighted towards flagship assets
Appendices: France flagship destinations Portfolio weighted towards flagship assets Focus on flagship destinations Investing to enhance leading assets 89% Les Terrasses du Port, Marseille Consistently strong footfall growth +5% New brands including Boggi Milano, Polo Ralph Lauren Italie Deux, Paris
Slide 76: Differentiation between categories and brands in France
Appendices: France flagship destinations Differentiation between categories and brands in France Sales 2018 Hammerson flagship destination category sales and range, France 45% Hammerson +2.2% Index -1.8% (1) 35% Footfall 2018 25% Hammerson +2.5% 15% Index -1.7% (2) 5% 5.0% 2.7% 0.6% 0.5% -0.6% -1.0%
Slide 77: 2018 leasing performance
Appendices: France flagship destinations 2018 leasing performance 2018 leasing and cumulative vs. 2017 and 2016 (£m) 2018 leasing 2.5 12 £m Principal leasing 5.5 10 2.0 Reconfigurations 1.4 Temporary and 8 other 0.4 1.5 Total 6 7.3 1.0 4 France flagship leasing key facts 0.5 2 Leasing vs. Dec 17 ERV
Slide 78: Ireland flagship destinations
Dundrum, Dublin 04 Ireland flagship destinations 78
Slide 79: 2018 operational update
Appendices: Ireland flagship destinations 2018 operational update Ireland flagship destinations Dundrum: repurposing retail space to F&B 2018 2017 LfL NRI (%) +1.6 +7.4 Occupancy (%) 99.0 99.7 Leasing activity (£m) 2.6 1.9 Leasing vs. ERV (%) +8 +10 Leasing vs previous passing (% +28 +4 4,100 sq m f
Slide 80: 2.2m sq ft of prime space and development opportunities
Appendices: Ireland flagship destinations 2.2m sq ft of prime space and sustainable development opportunities Contracted rent Hammerson portfolio (2) Hammerson / Allianz 50:50 JV 5% 11% 18% 66% Dundrum Town Centre Dundrum Dundrum Phase 2 Development Site Swords Pavilions Ilac Shopping Centre Other (
Slide 81: Platform encompasses key retail centres in Dublin
Appendices: Ireland flagship destinations Platform encompasses key retail centres in Dublin 81
Slide 82: Progress with ERV uplift at Dundrum
Appendices: Ireland flagship destinations Progress with ERV uplift at Dundrum Dundrum, Dublin Uplift in Dundrum ERV since ownership (1) c.€90m +17% €11m €65m Acquisition ERV Uplift at Dec 2018 Expected growth Forecast 2021 ERV July 2016 2019-2021 On track with targeted 4-5% ERV CAGR 1 Dundrum ERV 10
Slide 83: Premium outlets
Bicester Village, Oxfordshire 05 Premium outlets 83
Slide 84: 2018 operational update
Appendices: Premium outlets 2018 operational update Value Retail (1) VIA Outlets (1) 2018 2017 2018 2017 Brand sales (€m) (2) 2,903 2,693 1,071 930 Brand sales growth (%) (3) 8 8 9 13 Footfall (m) (2) 36.8 35.4 30.3 28.3 Average spend per visit (€) (2) 79 76 35 33 Average sales density growth (%) (3
Slide 85: Expanding outlets through extensions and remodelling
Appendices: Premium outlets Expanding outlets through extensions and remodelling Hede Fashion Outlet, La Roca Village, Kildare Village, Gothenburg Barcelona Dublin 2,700m2 2,500m2 5,500m2 15 units c.25 units 29 units TDC €11m TDC €50-60m TDC €50-70m Opening Q4 2019 Opening Q4 2020 Pipeline Note: TDC
Slide 86: Premium outlets portfolio
Premium outlets portfolio Value Retail Villages VIA Outlets centres Bicester Village, Oxford Batavia Stad Amsterdam Fashion Outlet GLA: 28,000m2 GLA: 30,900m2 Boutiques: 161 Units: 130 La Roca Village, Barcelona Fashion Arena Prague Outlet GLA: 23,400m2 GLA: 24,100m2 Boutiques: 135 Units: 99 Las Roz
Slide 87: Hammerson's total investment in Value Retail
Appendices: Premium outlets Hammerson’s total investment in Value Retail Holding companies 25% equity La Roca Las Rozas La Vallée Maasmechelen Fidenza Wertheim Ingolstadt Kildare Bicester Village Village Village Village Village Village Village Village Village 37 29 25 14 14 22 33 2 28 50 41 37 26 27
Slide 88: Tax free sales in our premium outlets portfolio
Appendices: Premium outlets Tax free sales in our premium outlets portfolio have outperformed the overall European trend (1) Tax free sales by source market YoY growth CAGR 2014- (%) (1) 2018 Greater China +3% +13% 19.8% South and East Asia +15% +15% 1.8% Gulf/Middle East +10% +8% 3.5% 45.9% Russia
Slide 89: City Quarters
Birmingham City Centre 06 City Quarters 89
Slide 90: Short to medium term concepts
Appendices: City Quarters Short to medium term concepts Ladywood House Victoria hotel Dundrum residential Birmingham Leeds Dublin 9,400m2 vacant office Under offer with international hotel Opportunity to develop 100 unit operator residential scheme adjacent to Dundrum Opportunity to upgrade to moder
Slide 91: The City Quarters opportunity
Appendices: City Quarters The City Quarters opportunity Retail F&B Residential Workspace Leisure Education Culture Hotel Public spaces Next Start on Key schemes Area planning site submission Les 3 Fontaines, Cergy 8,500m2 n/a On site Citywall House, Southampton 2,800m2 2019 Q2 2020 Near term
Slide 92: UK retail parks
Elliott’s Field Shopping Park, Rugby 07 UK retail parks 92
Slide 93: 2018 operational update
Appendices: UK retail parks 2018 operational update UK retail parks 2018 2018 2017 LfL NRI (%) −4.3 −2.5 Occupancy (%) 96.9 99.4 Leasing activity (£m) 2.4 6.3 Leasing vs. ERV (%) +11 +11 Leasing vs previous passing (%) +19 +9 Footfall (%) (1) −1.3 −0.4 1 Footfall: 2018 UK benchmark -0.5% (Source: Sp
Slide 94: UK retail parks market split and Hammerson ownership
Appendices: UK retail parks UK retail parks market split and Hammerson ownership Shopping parks Hybrid parks Key homeware Standard Solus units goods parks homeware parks Higher rental growth segments UK retail parks market (1) Hammerson portfolio Higher rental Shopping parks growth Hybrid parks 58%
Slide 95: Retail park disposals 2016 to 2018
Appendices: UK retail parks Retail park disposals 2016 to 2018 2016: average 7% below BV Proceeds (1) £m Buyer Thurrock Shopping Park, Thurrock 100 TH Real Estate Fir Lane, Folkestone (2) 7 The Drapers Company Cramlington Retail Park, Cramlington 78 Arch (local authority) Westmorland Retail Park, Cr