Half-Yearly Results 2019 Presentation

Introduction Robert Noel Chief Executive Landsec ─ Half-yearly results 2019/20 3 H1 2019/20 Balance of business shifting more to London

Portfolio split by segment Portfolio split by geography

West End West End

Office City City

Mid-town Mid-town Regional Retail Southwark and other Southwark and other Office 38% 33% London London retail 50% London retail 67%

Specialist Retail Regional retail 12% Regional retail

Outlets Outlets

Retail parks Retail parks

Leisure and hotels Leisure and hotels Specialist Other Other Landsec ─ Half-yearly results 2019/20 4 H1 2019/20 Resilient results in mixed markets

Office Specialist Retail

Healthy market conditions Leisure and hotels virtually full Nuanced markets

Portfolio virtually full Good demand from consumers Outlets and London steady and operators despite headwinds Myo and Fitted going well in F&B market Regional retail and retail parks impacted by declining values and Demonstrable progress on Cinema attendance up 9% poor investor sentiment development plan: Hotel revenues flat Same centre sales up 0.7% 1.4m sq ft planned to be on site down 0.7% excluding automotive next six months (40% pre-let) Piccadilly Lights ahead Benchmark down 3.8% TDC £1.5bn ERV £96m of expectations Landsec ─ Half-yearly results 2019/20 5 H1 2019/20 Progress on sustainability

Ranked #1 in UK and Europe for mixed office and retail space

European real estate leader

Science based carbon reduction targets being raised for 1.5°C of warming

Commitment to be a net zero carbon business by 2030

First net zero carbon building at Sumner Street

Sumner Street, SE1 Landsec 6 Agenda for the day

Financial results Martin Greenslade

Portfolio review Colette O’Shea

Outlook Robert Noel

Q&A Financial results Martin Greenslade Chief Financial Officer Landsec ─ Half-yearly results 2019/20 8 Financial summary Resilient performance in a challenging market

30 Sept 2018 30 Sept 2019 Change

(1) Shaded rows for highlighting figs→ £224m Revenue profit £225m 0.4 ← Shaded rows for highlighting figs.

£(188)m Valuation deficit(1) £(368)m -2.8(2)

£42m Profit / (loss) before tax £(147)m

30.3p Adjusted diluted earnings per share(1) 30.4p 0.3

1,339p(3) EPRA net assets per share 1,296p -3.2

22.6p Dividend per share 23.2p 2.7

(1) Including our proportionate share of subsidiaries and joint ventures (2) The percentage change for the valuation deficit represents the fall in value of the Combined Portfolio over the period, adjusted for net investment (3) As at 31 March 2019 Landsec ─ Half-yearly results 2019/20 9 Revenue profit

£m

– –

224 225 Landsec ─ Half-yearly results 2019/20 10 Net rental income analysis Maintaining net rental income

£m Like-for-like net rental income

308 309

Six months Office Retail Specialist Developments Acquisitions Other Six months ended and sales ended 30 Sept 2018 30 Sept 2019 Landsec ─ Half-yearly results 2019/20 11 Like-for-like net rental income analysis Office

£m Like-for-like net rental income £m

2 1

308 125 309 122

Six months Office Retail Specialist Developments Acquisitions Other Six months ended and sales ended 30 Sept 2018 30 Sept 2019 Landsec ─ Half-yearly results 2019/20 12 Like-for-like net rental income analysis Retail

£m Like-for-like net rental income

308 309

Six months Office Retail Specialist Developments Acquisitions Other Six months ended and sales ended 30 Sept 2018 30 Sept 2019 Landsec ─ Half-yearly results 2019/20 13 Like-for-like net rental income analysis Retail

£m Like-for-like net rental income £m

1 - (3)

130 308 128309

Six months Office Retail Specialist Developments Acquisitions Other Six months ended and sales ended 30 Sept 2018 30 Sept 2019 Landsec ─ Half-yearly results 2019/20 14 Like-for-like net rental income analysis Specialist

£m Like-for-like net rental income

308 309

Six months Office Retail Specialist Developments Acquisitions Other Six months ended and sales ended 30 Sept 2018 30 Sept 2019 Landsec ─ Half-yearly results 2019/20 15 Like-for-like net rental income analysis Specialist

£m Like-for-like net rental income £m

2 1

42 308 39 309

Six months Office Retail Specialist Developments Acquisitions Other Six months ended and sales ended 30 Sept 2018 30 Sept 2019 Landsec ─ Half-yearly results 2019/20 16 Net rental income analysis Maintaining net rental income

£m

308 309

Six months Office Retail Specialist Developments Acquisitions Other Six months ended and sales ended 30 Sept 2018 30 Sept 2019 Landsec ─ Half-yearly results 2019/20 17 Combined Portfolio valuation

Other 0.4% Leisure and hotels -3.0% £13.4bn portfolio Retail parks -11.1%

Outlets Valuation declined 2.8% 0.6%

Office 0.0% Regional retail -9.4%

London retail -3.5%

Chart segments represent portfolio valuation. Segment labels indicate valuation surplus/(deficit) in the period. For further information on segment definitions, please refer to the appendices. Landsec ─ Half-yearly results 2019/20 18 Combined Portfolio valuation Office

Other 0.4% Leisure and hotels -3.0% Like-for-like rental values up 1.9% Retail parks -11.1% +5bps like-for-like equivalent yield shift Outlets to 4.6% 0.6% Office Like-for-like assets up 0.3% 0.0% Regional retail Development programme increased -9.4% by 3.8% London retail Proposed developments declined -3.5% by 8.1% Landsec ─ Half-yearly results 2019/20 19 Combined Portfolio valuation London retail

Other 0.4% Leisure and hotels -3.0% Like-for-like rental values down 2.7% Retail parks -11.1% +4bps like-for-like equivalent yield shift Outlets to 4.3% 0.6% London

retail Office 0.0% Regional -3.5% retail -9.4% Landsec ─ Half-yearly results 2019/20 20 Combined Portfolio valuation Regional retail

Other 0.4% Leisure and hotels -3.0% Like-for-like rental values down 3.7% Retail parks -11.1% +36bps like-for-like equivalent yield shift Outlets to 5.5% 0.6% Regional

Office retail 0.0% -9.4%

London retail -3.5% Landsec ─ Half-yearly results 2019/20 21 Combined Portfolio valuation Outlets

Other 0.4% Leisure and hotels -3.0% Like-for-like rental values up 1.0% Retail parks -11.1% +2bps like-for-like equivalent yield shift to 5.4% Outlets Office 0.6% 0.0% Regional retail -9.4%

London retail -3.5% Landsec ─ Half-yearly results 2019/20 22 Combined Portfolio valuation Retail parks

Other 0.4% Leisure and hotels Like-for-like rental values down 2.0% -3.0%

+58bps like-for-like equivalent yield shift Outlets to 6.7% 0.6% Retail

parks Office 0.0% Regional -11.1% retail -9.4%

London retail -3.5% Landsec ─ Half-yearly results 2019/20 23 Combined Portfolio valuation Leisure and hotels

Other 0.4%

Hotel values unchanged Retail parks -11.1% Casual dining sector impacted Outlets leisure assets 0.6% Leisure and hotels Office +9bps like-for-like equivalent yield shift 0.0% Regional -3.0% retail to 5.6% -9.4%

London retail -3.5% Landsec ─ Half-yearly results 2019/20 24 Combined Portfolio valuation Other

Leisure and hotels -3.0% Retail Piccadilly Lights rental values parks unchanged -11.1%

Outlets 0.6% Other Office 0.4% 0.0% Regional retail -9.4%

London retail -3.5% Landsec ─ Half-yearly results 2019/20 25 Development expenditure

Estimated future spend Potential cash spend Impact on Sept 19 £m Group LTV(2) 600

Development programme £520m 30.7% 500

400 Proposed developments £290m 32.1%

300

In feasibility – office-led £440m 34.2% 200

100 In feasibility – mixed use(1) £800m 37.6%

0 2019/20 2020/21 2021/22 2022/23 2023/24 2024/25+

Development programme Proposed developments (Landsec share) TOTAL £2,050m In feasibility – office-led In feasibility – mixed use(1)

(1) Comprises O2, Finchley Road and W12, Shepherd’s Bush (2) Cumulative impact of capital expenditure on the current Group LTV of 28.1% assuming no profit realised on this spend and all other values remain the same Landsec ─ Half-yearly results 2019 26 Strong financing position

Adjusted net debt (LHS) Group LTV(1) (RHS) WACD (LHS) ICR (RHS) Adjusted net debt to EBITDA (RHS) £bn % % Multiple 5.0 45 10 10 £3,798m 9 9 4.5 40 8 6.9x 8 28.1% 4.0 7 7 35 6 6 3.5 5 5 30 4 4.9x 4 3.0 3 3 25 2.5 2 2 1 2.6% 1 2.0 20 0 0 Mar Sep Mar Sep Mar Sep Mar Sep Mar Sep Mar Sep Mar Sep Mar Sep Mar Sep Mar Sep Mar Sep Mar Sep Mar Sep Mar Sep Mar Sep Mar Sep 2012 2012 2013 2013 2014 2014 2015 2015 2016 2016 2017 2017 2018 2018 2019 2019 2012 2012 2013 2013 2014 2014 2015 2015 2016 2016 2017 2017 2018 2018 2019 2019

Years Weighted average maturity of debt £bn Cash and available facilities 16 2.0 £1.6bn 15 1.8 14 11.8 1.6 13 years 1.4 12 1.2 11 1.0 10 0.8 9 0.6 8 0.4 7 0.2 6 0.0 Mar Sep Mar Sep Mar Sep Mar Sep Mar Sep Mar Sep Mar Sep Mar Sep Mar Sep Mar Sep Mar Sep Mar Sep Mar Sep Mar Sep Mar Sep Mar Sep 2012 2012 2013 2013 2014 2014 2015 2015 2016 2016 2017 2017 2018 2018 2019 2019 2012 2012 2013 2013 2014 2014 2015 2015 2016 2016 2017 2017 2018 2018 2019 2019

(1) On a proportionate basis Landsec ─ Half-yearly results 2019/20 27 Financial summary

Resilient income

Strong balance sheet

Significant firepower for development expenditure and other opportunities Portfolio review Colette O’Shea Managing Director Landsec ─ Half-yearly results 20192019/20 29 Strengthening portfolio

Portfolio split by segment

West End

Office Introducing new products City

Mid-town Retail Southwark and other Office 38% Keeping ahead of market trends London retail 50%

Specialist Retail Regional retail 12% New and better ways of working Outlets

Retail parks

Leisure and hotels Specialist Other Landsec ─ Half-yearly results 2019/20 30 A resilient performance across the portfolio

£13.4bn portfolio

98% occupancy

£14m of investment lettings with £17m in solicitors’ hands

£16m of office rent reviews at 10% ahead of previous passing rent

Office WAULT 8.7 years

Retail net rental income down £2m, only 1.5% (like-for-like)

London development pipeline of 3.5m sq ft to be delivered from late 2021 onwards 123 Victoria Street, SW1 Landsec ─ Half-yearly results 2019/20 31 Office ─ London continues to be a highly desirable location

Take-up up 11% on last quarter Central London vacancy rate down to 4.0% m sq ft Vacancy rate 4 10-year quarterly average 4.6% 3 4.4%

4.2% 2 10-year quarterly average 3.1 3.4 4.0% 1 3.8%

0 3.6% Q2 2019 Q3 2019 Q1 Q2 Q3 Q4 Q1 Q2 Q3 2018 2018 2018 2018 2019 2019 2019

Speculative pipeline is approximately 18 months demand 6-month investment volumes down 59% on 2018 m sq ft London office 9 investment vols (£bn) 12 8 7 10 6 8 5 4 8.0 6 59% 9.8 3 5.5 4 2 1 2 4.0 0 0 Demand Supply 6 m/e Sep-18 6 m/e Sep-19 (Avg. take-up new space last 3 years) (Speculative space under contruction)

Additional disclosure can be found in the appendices Landsec ─ Half-yearly results 2019/20 32 Office ─ A robust performance across all three products

HQ Fitted Myo

99% occupied Launched with 2 floors 17,200 sq ft Launched 36,000 sq ft in May 2019 in May 2019 £16m of rent reviews, 10% ahead Now 61% occupied, ahead of of previous passing rent Now fully let, achieved c.20% business plan premium to net effective rent HQ lettings £2m after costs On target to achieve c.20% average premium to net effective rent WAULT 8.7 years Targeting 5-15% premium to net after costs effective rent after costs 30% existing HQ customers 20% connected to HQ customers Landsec ─ Half-yearly results 2019/20 33 Specialist ─ Leisure Popular destinations through the cycle

17 leisure parks offering range of activities

97% occupancy

Cinemas are 26% of leisure rent; cinema admissions up 9% nationally

Casual dining is 17% of leisure rent; challenges in this sector continue

Xscape, Milton Keynes Landsec ─ Half-yearly results 2019/20 34 Specialist ─ Hotels Great opportunity

23 standalone hotels

27% income growth over 10 years

Potential in the underlying site values well ahead of book values

Novotel, Greenwich Landsec ─ Half-yearly results 2019/20 35 Specialist ─ Piccadilly Lights Activity is gaining momentum

Short term leasing activity ahead of expectations

Leasing strategy taking advantage of the flexibility offered by the new digital screen

To date over 90% of the yearly target income secured

Recent brands include:

Piccadilly Lights, W1 Landsec ─ Half-yearly results 2019/20 36 Retail Tackling the retail reality

Like-for-like retail net rental income down £2m; — 2% of Retail — Less than 1% of Group

Occupancy rate unchanged since March 2019 at 97%

Same centre sales up 0.7%, down 0.7% excluding automotive sales. Considerably ahead of BRC benchmark down 3.8%

Footfall down 1.8% but ahead of benchmark down 4.2%

Braintree Village, Essex Landsec ─ Half-yearly results 2019/20 37 Retail Tackling the retail reality

Only 14% of units affected by CVAs have closed

53% of units closed due to administrations and CVAs now re-let

The Ivy Victoria, SW1 Note: Numbers refer to both Retail and Specialist segments. Landsec ─ Half-yearly results 2019/20 38 Retail Tackling the retail reality

Short term

Activity in the last six months

Medium term Maximising our performance in the medium term

Long term Longer term trends and how we are staying ahead of the curve Landsec ─ Half-yearly results 2019/20 39 Short term activity Retail parks

Occupancy at 96%

Valuation down 11%, driven by 58bps outward yield movement

Sold Poole Retail Park for £45m, around 12% below March 2019 book value – in line with subsequent market declines

The Bishop Centre, Taplow Landsec ─ Half-yearly results 2019/20 40 Short term activity Outlets – effective tenant mix

£2m of lettings, 20 new target brands across the outlets

70% of consumers give retail mix as a top reason to visit

Gunwharf Quays, Portsmouth Landsec ─ Half-yearly results 2019/20 41 Short term activity Outlets – attracting new brands

Since Polo Ralph Lauren opened in Braintree Village last November

— Footfall up 6% in three months after opening

— Total sales up 15% in the same period

— Total sales up 3.7% in the last six months

— Magnet for other brands

Braintree Village, Essex Landsec ─ Half-yearly results 2019/20 42 Short term Retail ─ compelling retail mix

Regional shopping destinations challenged

Working to attract brands that resonate with changing consumer demands

Bluewater, Kent Westgate, Oxford Helping brands establish a physical presence

Westgate, Oxford Bluewater, Kent Landsec ─ Half-yearly results 2019/20 43 Short term Retail ─ supported by great events

The Beach at Bluewater, Kent Summer Vibes at Westgate, Oxford

Dinosaur Trail at Trinity, Leeds Student Night at St David’s, Cardiff Landsec ─ Half-yearly results 2019/20 44 Short term – last six months Regional retail – maintained occupancy levels and rental income

Working to secure the best retail mix at the right size

Bluewater:

— Footfall up 2.5% year-on-year

— Same store sales up 1.2% year-on-year (excluding automotive)

Customers drawn by Apple and Tesla product launches and opening of Primark

Bluewater, Kent Landsec ─ Half-yearly results 2019/20 45 Retail Medium term ─ proactively addressing the challenges

Short term

Medium term Convenience + great destinations = Outperformance in retail

Long term Landsec ─ Half-yearly results 2019/20 46 Medium term Retail ─ compelling retail mix

Key anchors drawing shoppers and driving spend

Upsizing Zara at Bluewater from 19,000 sq ft to 37,000 sq ft

Bringing Zara into 36,000 sq ft at St. David’s

Upsizing H&M at Trinity Leeds from 25,000 sq ft to 39,000 sq ft Landsec ─ Half-yearly results 2019/20 47 Medium term Retail ─ a partnership approach

Working closely with customers to keep businesses sustainable

Reducing service charges to protect rental income

Improving affordability

Looking at innovative new ways of partnering with brands

Westgate Oxford Landsec ─ Half-yearly results 2019/20 48 Retail Long term – addressing the challenges of an over supplied market

Short term

Medium term

Long term Re-imagining retail space Landsec ─ Half-yearly results 2019/20 49 Retail Long term – re-imagining destinations

O2, Finchley Road

W12, Shepherd’s Bush

Lewisham shopping centre Southside, Wandsworth Landsec ─ Half-yearly results 2019/20 50 Retail Long term – re-imagining destinations

O2, Finchley Road and W12, Shepherd’s Bush — Anticipating a shift from 100% retail and leisure to only 11% retail

— Opportunity for 1,700 homes Proposed development, O2, Finchley Road helping to underpin values

Lewisham shopping centre and Southside Wandsworth — Started master planning — Opportunity for over 2,000 homes

Proposed development, W12, Shepherd’s Bush Landsec ─ Half-yearly results 2019/20 51 Further progress on our London-centric opportunities 1.4m sq ft on site by April 2020 Oct 2021 Shepherd’s Bush Shepherd’s Bush, W12 ~696k sq ft Total Oct 2021 Finchley Road ~3.5m sq ft Finchley Road, NW3 ~681k sq ft

July 2022 Sept 2025 Red Lion Court Red Lion Court, SE1 ~240k sq ft

Jul 2020 Jan 2023 Lavington Street Lavington Street, SE1 ~370k sq ft

Apr 2020 Oct 2022 Portland House Portland House, SW1 ~394k sq ft

On site Jan 2022 105 Sumner Street 105 Sumner Street, SE1 ~136k sq ft

On site Apr 2022 Oct 2022 Nova East & Nova Place FinishedNova East,piling SW1 Nova Place, SW1 206k sq ft TDC £576m 12%On siteof the steel frame complete Jun 2022 Lucent ERV £38m Lucent, W1 (formerly One Sherwood Street) ~£3bn TDC 144k sq ft On site Nov 2021 21 Moorfields 21 Moorfields, EC2 ~£140m ERV 564k sq ft

July 2022 Sept 2025 Red Lion Court Red Lion Court, SE1 ~240k sq ft

Jul 2020 Jan 2023 Lavington Street Lavington Street, SE1 ~370k sq ft

Apr 2020 Oct 2022 Portland House Portland House, SW1 ~394k sq ft

On site Jan 2022 105 Sumner Street Demolition105 Sumner work Street, 90% complete SE1 ~136k sq ft TDC £221m 70%On site of concrete piles installed Apr 2022 Oct 2022 Nova East ERV £14m & Nova Place Nova East, SW1 Nova Place, SW1 206k sq ft

On site Jun 2022 Lucent Lucent, W1 (formerly One Sherwood Street) ~£3bn TDC 144k sq ft On site Nov 2021 21 Moorfields 21 Moorfields, EC2 ~£140m ERV 564k sq ft

July 2022 Sept 2025 Red Lion Court Red Lion Court, SE1 ~240k sq ft

Jul 2020 Jan 2023 Lavington Street Lavington Street, SE1 ~370k sq ft Piling hasApr begun 2020 Oct 2022 Portland House Portland House, SW1 ~394k sq ft TDC £96m CompletesOn site all our pedestrianJan routes 2022 105 Sumner Street through Nova to Cardinal Place ERV £6m 105 Sumner Street, SE1 ~136k sq ft

On site Apr 2022 Oct 2022 Nova East & Nova Place Nova East, SW1 Nova Place, SW1 206k sq ft

On site Jun 2022 Lucent Lucent, W1 (formerly One Sherwood Street) ~£3bn TDC 144k sq ft On site Nov 2021 21 Moorfields 21 Moorfields, EC2 ~£140m ERV 564k sq ft

Note: Earliest start on site dates. 2020 2021 2022 2023 2024 2025 2026 Total of development pipeline of 3.5m sq ft includes 49k sq ft of schemes not shown above Landsec ─ Half-yearly results 2019/20 54 Further progress on our London-centric opportunities 1.4m sq ft on site by April 2020 Oct 2021 Shepherd’s Bush Submitted revised planning Shepherd’s Bush, W12 ~696k sq ft Total application Oct 2021 Finchley Road ~3.5m sq ft Finchley Road, NW3 ~681k sq ft Demolition started July 2022 Sept 2025 Red Lion Court Automated methods of Red Lion Court, SE1 ~240k sq ft construction and technology to reduce time,Jul 2020 cost and waste Jan 2023 Lavington Street Lavington Street, SE1 ~370k sq ft Our first net zero carbon TDC £124m Apr 2020 Oct 2022 Portland House development ERV £9m Portland House, SW1 ~394k sq ft

On site Jan 2022 105 Sumner Street 105 Sumner Street, SE1 ~136k sq ft

On site Apr 2022 Oct 2022 Nova East & Nova Place Nova East, SW1 Nova Place, SW1 206k sq ft

On site Jun 2022 Lucent Lucent, W1 (formerly One Sherwood Street) ~£3bn TDC 144k sq ft On site Nov 2021 21 Moorfields 21 Moorfields, EC2 ~£140m ERV 564k sq ft

July 2022 Sept 2025 Red Lion Court Red Lion Court, SE1 ~240k sq ft

Jul 2020 Jan 2023 Lavington Street Lavington Street, SE1 ~370k sq ft

Apr 2020 Oct 2022 Portland House Portland House, SW1 ~394k sq ft

On site Jan 2022 105 Sumner Street Resolution to grant planning 105 Sumner Street, SE1 ~136k sq ft approval On site Apr 2022 Oct 2022 Nova East 14-storey extension, giving 394k & Nova Place Nova East, SW1 Nova Place, SW1 206k sq ft sq ft of new and refurbished space On site Jun 2022 Lucent Lucent,Incorporates W1 (formerly One SherwoodHQ, Fitted Street) and Myo 144k sq ft TDC £440m ~£3bn TDC On site Vacant possessionNov 2021planned 21 Moorfields ERV £30m 21 Moorfields,March 2020 EC2 ~£140m ERV 564k sq ft

Jul 2020 Jan 2023 Lavington Street TDC £253m Lavington Street, SE1 ~370k sq ft

Apr 2020 Oct 2022 ERV £17m Portland House TDC £326m Portland House, SW1 ~394k sq ft

On site ERV £23m Jan 2022 105 Sumner Street 105 Sumner Street, SE1 ~136k sq ft

On site Apr 2022 Oct 2022 Nova East & Nova Place Nova East, SW1 Nova Place, SW1 206k sq ft

On site Jun 2022 Lucent Lucent, W1 (formerly One Sherwood Street) ~£3bn TDC 144k sq ft On site Nov 2021 21 Moorfields 21 Moorfields, EC2 ~£140m ERV 564k sq ft

Office portfolio is full

Fitted and Myo ahead of business plans

Piccadilly Lights exceeding expectations

Retail is challenged, but we are outperforming on sales and footfall

Using customer data to inform our decisions

Building better, more efficiently in sustainable and responsible way

Gearing up our development programme ─ aiming for 1.4m sq ft on site by April 2020

Piccadilly Lights, W1 Outlook Robert Noel Chief Executive Landsec ─ Half-yearly results 2019/20 59 Looking ahead Strong position Direction of travel clear

Market dynamics in London remain healthy — Entire development pipeline located in London — Excellent track record in delivery — Sustainability leader

Retail outlook remains mixed — Outlets continue to grow — Regional retail and retail parks remain tough

Specialist solid — Continued demand in our leisure parks — Hotels more than underwritten by site value

Shape of portfolio increasingly balanced towards London — Up from 67% today — £2bn of potential capex in development — Continued work-out of retail parks