Hammerson : Insights into UK retail October 2018

Insights into UKretail

19thOctober 2018

Victoria, Leeds

Today's presentation

01	Introduction and strategy update
	David Atkins-CEO
02	Meeting the challenge in UK retail
	Mark Bourgeois-MD UK and Ireland
03	Continued demand for the right retail space
	Iain Mitchell-UK Commercial Director
04	It's more than just shopping
	Mark Bourgeois-MD UK and Ireland
05	Bullring estate: a flagship destination
	Mark Bourgeois-MD UK and Ireland
06	Questions

Current backdrop is tough but we have a clear strategy

Tough market backdrop in the UK

Footfall -2.1%

High street fashion sales -7% CVAs, 2018 NRI impact -£7 millionDepartment stores: House of Fraser CVA

Positive UK shopping centre leasing volumes£11.4m, +23% YoY

Proactively enhancing retailer line-upReconfiguration of former House of Fraser store at Highcross complete

Delivering revised strategy announced in JulyHighcross 50% disposal: £236 millionTotal +£530 million disposals achieved YTD Share buyback ongoing: £80 million

Confidence for future of winning destinations

UK portfolio ranked A-/A/A+ grade quality

In July we set out our agenda to boost returns

Focus on flagship retaildestinations and Premium

Outlets

Exit retail parks

Accelerate disposals: £1.1bn over two years

Step change retailer line-upIncreased geographical diversificationDevoting more resource to experience-enhancing events and digitalImplement £300m share buybackDeleverage to mid-30s % LTV

We are delivering on our strategy

Disposal of 50% Highcross£236m

YTD disposals of +£530m

Increased geographicaldiversification 45% non-UK assets(1)

• 1 Reflects sales of Imperial and Fife Central retail parks and 50% of Highcross

• 2 Reflects payment of share buyback and interim dividend, and sales of Imperial and Fife Central retail parks and 50% of Highcross