Investor briefing:
South Africa roadshow
March 2018 Agenda
01 2017 highlights: Not all retail is equal
Acquisition of intu: Setting the new 02 benchmark for European retail destinations 03 Our portfolio highlights 04 2017 financial performance 05 Transaction update
2 2017 highlights: Not all retail is equal Strong financial returns driven by record occupier demand in 2017
Not all retail is equal
Another year of strong growth EPS +6.5% DPS +6.3% NAVPS +5.0% Preferred position with shoppers and retailers Record volume of new leasing, +34% Bicester Village Highest occupancy for 17 years Strong footfall outperformance Positive operational results LFL NRI: Group +4.4% (1) France +2.6%; Ireland +7.4% (2) L’Occitane, Victoria Leeds Les 3 Fontaines, Cergy Consistently strong Premium outlets sales +9% Consistent capital recycling Sold £400m; diversity of buyers Further £76m investment in Premium outlets Significant acquisition aligned to strategy Advancing intu acquisition Riverside at The Oracle, Reading Dundrum, Dublin
(1) Total LfL NRI incl. Ireland and Premium outlets 4 (2) Proforma figure assuming properties owned throughout 2016 and 2017 Impressive volume of new leasing across the group with strong start in 2018
Hammerson new leasing volume 2016, 2017, 2018 (£m) (1)
Cumulative 2016 Cumulative 2017 Cumulative 2018
35 2017: +34% 30
25
20
15
10
5
0 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
(1) Portfolio leasing on a proportionally consolidated basis, excludes developments and premium outlets 5 Delivering sector leading income-focused returns
EPS (pence) DPS (pence) NAVPS (pence)
+6.5% +6.3% +5.0% 35 30 800
750 776 30 31.1 25 25.5 700 25 20 650 20 15 600 15 550 10 10 500 5 5 450
0 0 400 2012 2013 2014 2015 2016 2017 2012 2013 2014 2015 2016 2017 2012 2013 2014 2015 2016 2017
CAGR +8.3% CAGR +7.6% CAGR +7.4%
6 Market trends drive our clear, focused strategy
Focus on growing consumer Create differentiated destinations Promote financial efficiency and markets partnerships
Dundrum, Dublin Les Terrasses du Port, Marseille Bicester Village, UK
The acquisition of intu enhances strategic growth
7 Acquisition of intu: Setting the new benchmark for European retail destinations The UK is a fundamentally strong economy with a resilient consumer environment
Strong underlying fundamentals Retail and consumer resilience
Real GDP (1)
Rebased Sustainable Current retail and Brexit headlines disguise strong 125 Growth Rate 2.7% underlying fundamentals 120 1.8%
115
110 Full employment driving disposable income growth
105 (2.3%, 2017) (5)
100 2012 2013 2014 2015 2016 2017 2018 2019 2020Sustainable 2021 (2) Rate UK Selected Europe Bank of England estimates inflation to have peaked in
(6) Wealth Per Adult (3) Unemployment Rate (4) October 2017 (3.2%) USD (‘000) 278 300 263 261 17.2% 20.0% 250 224 eCommerce already well-established in the UK 204 204 15.0% 200 11.1% (7) 9.4% (UK 17.8%, Europe 8.8%, USA 14.8%) 130 150 6.7% 10.0% 4.9% 100 4.4% 3.8% 5.0% 50 Retailer administrations substantially 0 0.0% below 2012 peak (8) UK France Sweden Italy NL Germany Spain
(1) ONS historical data, Capital Economics forecasts (5) ONS (2) Includes: Germany, France, Italy, Spain, Netherlands and Sweden (6) Bank of England November 2017 Inflation Report 9 (3) Credit Suisse Global Wealth Databook 2017 (7) Centre for Retail Research, online retail sales as % of total retail sales (4) ONS (UK only), Eurostat, Istat (Italy only) (8) Centre for Retail Research Leading UK position combined with higher growth European portfolio
Ownership of 19 of the UK’s top 30 shopping centres
Rank Centre Location Ownership Rank Centre Location Ownership
1 Westfield London London 16 intu Merry Hill Merry Hill 100% 2 Bluewater Greenhithe 17 The Centre: Milton Keynes Milton Keynes 3 Westfield Stratford City London 18 intu Derby Derby 47% 4 Meadowhall Centre Sheffield 19 The Oracle Reading 50% 5 intu Trafford Centre Manchester 100% 20 Silverburn Glasgow 50% 6 St David's Centre Cardiff 50% 21 intu Braehead Glasgow 100% 7 intu Lakeside Thurrock 100% 22 intu Watford Watford 93% 6 intu Metrocentre Gateshead 90% 23 Victoria Square Belfast 9 Liverpool One Liverpool 24 Union Square Aberdeen 100% 10 Bullring Birmingham 50% 25 The Glades London 11 Brent Cross London 41% 26 Festival Place Basingstoke 12 Cabot Circus Bristol 50% 27 Cabot Place/Canada Place London 13 Manchester Arndale Manchester 48% 28 West Quay Southampton 50% The Mall at Cribbs 14 Bristol 77% Causeway 29 intu Eldon Square Newcastle upon Tyne 60% 15 Highcross Leicester 100% 30 Trinity Leeds Leeds
Hammerson intu
Source: PMA (Dec-16): ranking based on PMA retail score, Company filings 10 Combined business delivers a stronger growth profile
Standalone 2017 portfolio split 2021+ illustrative portfolio split (GAV, £bn)(1,2,3) (GAV, £bn) (2,3,4)
c. £22bn
c.£3.0bn Premium outlets (5% growth) c.£1.4bn Ireland (5% growth) c.£1.0bn c.£1.3bn c.82% higher- c.£1.8 bn growth Spain (5% growth) segments £10.6bn Developments £2.2bn c.66% higher- c.£9.4bn French flagship (3% growth) £1.0bn growth £0.6bn segments £1.6bn UK flagship (2% growth) £1.6bn
European shopping centres £3.5bn c.£4.0bn and retail parks
Combination increases exposure to flagship centres and higher growth segments through £2bn capital recycling programme
(1) GAV as of 31 December 2017 (2) UK flagship indicates top 10 largest combined group ownerships in UK shopping centres by value (3) French flagship includes Les Terrasses du Port and Les 3 Fontaines (4) Illustrative portfolio mix post £2bn disposals and £1bn reinvestment into Premium outlets, Ireland, Spain and Developments, assumes organic growth of 2% p.a. on UK flagship centres, 3% p.a. on French flagship centres, 5% on Ireland and Spain and 5% p.a. on Premium outlets 11 Source: Company filings intu acquisition increases the proportion of high-quality UK shopping centres in the combined portfolio
Proportion of UK market (grey) and combined portfolio (blue/orange) per quality banding, by floorspace (1)
45% Proportion of combined portfolio: Hammerson (blue) UK shopping centre market Hammerson UK shopping centres intu UK shopping centres
40%
35% High-quality 30% centres with further growth 25% opportunities
20%
15% and intu intu and(orange)
10% Proportion of UK shopping centre market (grey) market shopping centreUK of Proportion
5%
0% 1 / C- 2 / C 3 / C+ 4 / B- 5 / B 6 / B+ 7 / A- 8 / A 9 / A+ 10 / A++ Quality banding
(1) Source: Local Data Company data, collected and analysed by Morgan Stanley (November 2017). See slide 56 for 12 full list of quality factors Hammerson and intu’s combination will support the UK retailer community
Opportunity to drive occupier demand
Attractive combined retail footprint
Superior combined resources and expertise
improving brand mix Specialist Enhanced Procurement & in intu centers F&B team digital & events cost efficiencies
Potential enhanced consumer appeal Potential closer partnerships and footfall with retailers
Likely increased occupier demand
13 Retailer rotation provides positive opportunities
Less than 1% negative impact on income from tenants in administration, even at the peak in 2012
UK retail market administrations (no. of stores) and Hammerson impact on income (%)
4,500 10%
4,000
8% 3,500 Handmade Burger Brent Cross All 6 units re-let or reassigned Jaeger Ï All Saints / Ernest 3,000 Jones / JD Sport 6% 2,500 % of Hammerson income of% income Hammerson
2,000 4% 1,500
1,000 2%
500 UK market administrations, no of marketadministrations,of no stores UK
0 0% 2010 2011 2012 2013 2014 2015 2016 2017 Highcross Selected retail administrations 2011-13: House of Fraser Ï Zara / JD Sport
(1) Source: Centre for Retail Research 14 Our Product Experience Framework
Iconic destinations Retail specialism Our Product Experience Built environment Optimal retail mix Framework is embedded Placemaking Fresh concepts Seamless technology Innovative retail technology across everything we do Flexible construction Operational efficiency providing a unique point of differentiation and sustainability
Experience led Customer first Food & beverage Built environment Leisure as anchor Placemaking Engaging events Seamless technology Surprise & delight Flexible construction 15 Dundrum: Level 1
Superior asset management value 1 creation: Dundrum case study
1. Settled all outstanding rent reviews in 2017
2. Created more MSU space to meet demand from Dundrum: Level 2 existing retailers to upsize (e.g. Penney’s, BT2, H&M, 2 Next and River Island) 3 3. Develop tenant mix strategy for Level 2 (“international fashion”)
4. Shifted temporary lettings to permanent on Level 3 Dundrum: Level 3
5. Reconfigured food court 5
6. Secured robust evidence of rental growth by 2019 to support 2020 rent review cycle 4
16 Superior asset management value creation: Dundrum case study (cont’d)
Uplift in Dundrum ERV since ownership (EURm) (¹) Key ERV growth drivers 100 Tenant clustering ‒ Providing the right space for the right tenant
+19% ‒ Aligning F&B offering with profile of the 90 Optimising Food shopping centre c.€90m & Beverage offering ‒ Careful selection of operators with a differentiated offer 80 Centralised and ‒ Co-ordinated leasing teams providing best in +13% skilled leasing class service to help drive rents €9m Add text team 70
Breakdown of key initiatives €65m 60 Q3 2016 ‒ Increase in car park tariffs
Q4 2016 ‒ Gamestop letting 50 Q1 2017 ‒ POCO pop-up, Moss Bros letting
Q2 2017 ‒ Garden Pure Imagination, food court letting, 40 Acquisition ERV July Uplift at Dec 2017 2018E-2021E 2021E ERV Hotel Chocolat, Smiggle 2016 growth Q4 2017 ‒ Christmas Grotto On track with targeted 4-5% ERV CAGR Q1 2018 ‒ Fallon & Byrne
1 Dundrum ERV 100% 17 Focusing on experience with a dynamic programme of events
SKATE, Westquay Wimbledon screens at the Footfall +10% Esplanade, Westquay 46,000 visitors Footfall +3.5% Social media reach of Social media reach of 270,000 733,000 people
Garden of Pure Viva Las Riverside, Oracle Imagination, Dundrum Footfall +14% Footfall +8% 22,500 visitors Social media reach of 340,000
18 Commercial benefits of the merger with intu
Cost:income ratio reduced and further potential following acquisition Corporate synergies of c.£25m p.a. (5)
2017 cost:income ratios 30% 26.5% 24.2% (1) (2) 22.8% 23.1% 22.6% 21.6% (3) 19.4% (5) 11.9% 17.7% 20% 10.9% 10.0% 11.3% 10.7% 9.7% 10% 14.6% 13.3% 12.8% 11.8% 11.9% 11.9% 0% 2012 2013 2014 2015 2016Hammerson Namibia UgandaIntu ProformaProforma Corporate expenses Operational costs
intu debt refinancing opportunities Pre-merger Post-merger Selected intu near -term debt maturities Facility Maturity Facility Maturity
Convertible bonds, 2.5% coupon £160m 2018 New Hammerson RCF (6) £1,500m 2021 SGS bank loan £352m 2021 Illustrative annualised interest cost (7) £23.4m RCF £600m 2021 Convertible bonds, 2.875% coupon £375m 2022 Total £1,487m Opportunity for significant (8) Illustrative annualized interest rate £38.5m refinancing benefit
(1) Excluding car park costs (£9.3m in 2015) cost:income ratio would be 21.1% (5) Proforma cost:income ratio including £25m of synergies (2) Excluding car park costs (£9.5m in 2016) cost:income ratio would be 20.7% (6) Pretax. Expected to reach c.£25m p.a. from 2 nd year post-completion of the acquisition of intu 19 (3) Excluding car park costs (£11.3m in 2017) cost:income ratio would be 19.4% (7) Terms agreed with core Hammerson relationship banks for a new £1.5bn 3 year credit facility, subject to documentation (4) Source: intu FY17 results presentation (8) Assumed fully drawn, based on initial margin of 100bps plus 3 months LIBOR of 0.56% (9) Assumed fully drawn, based on in-place coupons and margins of intu credit facilities EPS growth track record and future trends
Drivers of EPS growth 2012-2017 Likely future trends, post intu acquisition
2012 20.9p
LfL NRI +13% Positive - Operational efficiencies
Developments +18% Positive – Pipeline projects
Premium outlets +17% Positive – Secular growth
Net acquisitions +13% Negative – Disposals
Interest/leverage (7)% Positive – Interest savings
SG+A cost/other (5)% Positive – Overhead synergies
2017 +49% 31.1p
20 Our portfolio Bullring, Birmingham
UK shopping centres Rental levels are firm and retailers are investing in their stores
UK shopping centres 2017 Retailers are investing in store fits Leasing vs. ERV (%) +8 ERV growth (%) +0.9 LfL NRI (%) +1.8 Instore retail sales (%) −2.7
Leasing activity (%) +49
(1) UK shopping centre tenant incentive packages Penhaligon’s 100%
80% Avg. 10 months Avg. 9 months Paperchase 60% 12+ months 6 - 12 months 40% 0 - 6 months 20%
0% 2016 2017 Quiz Paul Smith
(1) Distribution of 2016 and 2017 UK shopping centre tenant incentive packages on principal 10-year leases Portfolio review 23 Our insights into consumer trends drive our leasing strategy
Hammerson UK shopping centre leasing growth and instore sales growth (1) 8.0% Leisure
6.0% Ath-leisure Aspirational fashion
4.0% Consumer brands Fast fashion Personal luxuries Convenient services Gifts Menswear 2.0% Aspirational homeware Cafe Confectionary Toys Hairdresser 0.0% Casual Dept Household Health foods dining store Travel agent Accessories Stationer Books -2.0%
Cosmetics Footwear Takeaway food -4.0% Jewellers Change Change in share of leasing, ERV by (2015 -17)
-6.0% High street fashion
Lingerie -8.0% -15.0% -10.0% -5.0% 0.0% 5.0% 10.0% 15.0% 20.0%
Hammerson instore sales growth, 2017 (%)
(1) Includes leases signed across all Hammerson UK shopping centres 2015 – 2017, measuring change in proportion of new leasing signed; Portfolio review 24 Hammerson same-centre instore sales YoY Apparel is a dynamic category; we are tilting our mix towards the winning brands
Apparel is lower as a proportion of New brands are replacing old: Evolving consumer preferences total leasing inform our leasing strategy
UK shopping centre leasing (£m) (1) UK shopping centre apparel leasing (£m) 2015 2017 Apparel Non-apparel Example tenants 100%
80%
4.5
60% 4.0 3.5 3.0 40% 2.5 39% 2.0 33% 1.5 20% 1.0 0.5 0% - 2015 2017 High-streetHigh street and fashionfast-fashion AthleisureAth-leisure Aspirational fashion
(1) ‘Apparel’ includes clothing, footwear and lingerie Portfolio review 25 Healthy sales for F&B in our centres but a mixed picture for mid-market casual dining operators
‘Grab & Go’ and coffee Mid-market casual dining Aspirational dining
Performing well A mixed picture Performing well Offers value for money and efficient Important to differentiate offer in a crowded market High quality offer and strong service reputation
2017 sales performance (1) 2017 sales performance (1) 2017 sales performance (2)
c. −15%
c. +1% c. +2% c. +4%
(1) Hammerson portfolio sales Portfolio review 26 (2) No LfL Hammerson sales data available. Based on ‘D+D London’ LfL sales, December 2017 Progressing with key development projects
Brent Cross Croydon
2017 milestones 2017 milestones Detailed reserved matters planning application Resolution to grant outline planning consent approved October 2017 secured October 2017 Confirmation of CPO received December 2017 Scheme approved by GLA Agreements reached with two anchors Next steps – John Lewis and Marks & Spencer Secure remaining land interests 2018 Preferred retail contractor selected Total retail space Croydon Partnership retail Pre-letting, detailed design and construction 2 2 Next steps 175,000m tendering 200,000m (1) Infrastructure contractor appointment Spring Cost to complete (1) Cost to complete 2018 and pre-letting £475-550m £650-700m
(1) Hammerson share Portfolio review 27 Elliott’s Field, Phase 2, Rugby
Retail parks Profitable new developments and supportive leasing trends
UK retail parks 2017 Adding attractive high -yield space Leasing activity (%) +29 Total £105m 8% YoC Leasing vs. ERV (%) +11 Elliott’s Field, Phase 2, Rugby ERV growth (%) −0.1 Completed LfL NRI (%) −2.5 Fife Central, Kirkcaldy LfL NRI (adj for surrender premiums) (%) +2.4 Completed
Parc Tawe, Swansea Completed
Orchard Centre, Didcot 62% pre -let
Adding further new profitable developments to the pipeline Elliott’s Field Phase 2, Rugby
Portfolio review 29 POCO store launch, Dundrum, Dublin
Ireland Confident consumer backdrop supports continued strong ERV growth
Hammerson Ireland portfolio 2017 Uplift in Dundrum ERV since ownership (2)
Leasing vs. ERV (%) +10
ERV growth (%) +2.7 c.€90m LfL NRI (%) +7.4 +13%
Consumer confidence at record high (1) €9m
Consumer Sentiment Monthly Index 120 €65m
100
80
60 Acquisition ERV Uplift at Dec Expected growth Forecast 2021 40 July 2016 2017 2018-2021 ERV
20
On track with targeted 4-5% ERV CAGR Jan-08 Jan-09 Jan-10 Jan-11 Jan-12 Jan-13 Jan-14 Jan-15 Jan-16 Jan-17 Jan-18
(1) Source: KBC/ESRI Portfolio review 31 (2) Dundrum ERV 100% Delivering value-add asset management initiatives
On track with Ireland strategy 2. Value-add asset management initiatives
1. Short term : rent reviews, leasing and V Fallon & Byrne Food commercialisation Hall Best -practice customer experience initiatives 10,000 sq. ft. speciality New brands introduced food hall Reconfiguration of Pembroke Square 2. Medium term: value -add asset management Ongoing Signed Fallon & Byrne food hall Progressing with plans to redevelop Pavilions food court Pavilions food court
Three new restaurant 3. Long -term: development Planning units Masterplan at Dundrum phase 2. Target planning phase Improving casual dining application 2019 offer to drive dwell time Supportive Court of Appeal ruling at Dublin Central
(1) Cushman and Wakefield Portfolio review 32 Les Terrasses du Port, Marseille
Portfolio review: France Growing consumer confidence translating into sales and footfall outperformance
Consumer confidence index (1)
110
100
90
80
70 Jul-13 Jul-14 Jul-15 Jul-16 Jul-17 Jan-13 Jan-14 Jan-15 Jan-16 Jan-17 Les Terrasses du Port, Marseille
Retail leasing index (ILC) (%) Hammerson France portfolio 2017
3.5 Leasing activity (%) (2) +9 3.0 3.3 2.5 Leasing vs. ERV (%) +5 2.0 1.5 ERV growth (%) +0.9 1.0 1.4 1.5 0.5 1.0 0.0 (0.2) 0.1 LfL NRI (%) +2.6 0.0 -0.5 Instore retail sales (%) (3) 2012 2013 2014 2015 2016 2017 Q1 2018 +0.1
(1) Source: INSEE Portfolio review 34 (2) By volume (3) CNCC benchmark -1.0% Refining our portfolio into leading centres
2017 capital recycling in France: £295m Investing to enhance leading assets Largest three assets now 86% of portfolio (1) Les Terrasses du Port, Marseille
Consistently strong sales growth +9%
Growth outperformance from largest three assets New brands including Coach, Nespresso, Dim and Benetton
Total France Three largest portfolio assets Italie Deux, Paris 2017 LfL NRI (%) +2.6% +2.9% Transforming the centre into a cultural destination 2017 ERV growth (%) +0.9% +1.6% 900-seat theatre opened in 2017
Extension launching in 2018
Les 3 Fontaines, Cergy
Acquisition of adjacent Cergy 3 unlocks development potential
(1) Les Terrasses du Port, Les 3 Fontaines, Italie Deux; by value. Portfolio review 35 Progressing with key development projects
Les 3 Fontaines, Cergy Italie Deux, Paris
Co-ownership agreement, building permit and Project to enhance tenant mix and F&B offer Size Size retail consent obtained at central Paris scheme 2 2 6,400m Acquired adjacent centre, Cergy 3 33,000m Obtained planning consent and agreement with co-owners Total development cost Main contractor selected Total development cost Pre-lets include Pret A Manger and M&S £38m Good pre-letting to fashion brands and F&B £225m Simply Food (Pret A Manger, Vapiano) Target rent Target rent Start on site Spring 2018 Project commenced £16m £2m
Portfolio review 36 Bicester Village, UK
Portfolio review: Premium outlets A strong performance and profitable investments
Value Retail VIA Outlets Recent key investments Hammerson share (GAV, £ bn) 1.6 0.6
(1) Sales growth YoY (%) +8 +13 Value Retail LP acquisition £76m investment Sales density growth YoY (%) (2) +5 +9 Economic interest in Bicester Village increased to 50% Total return (%) (3) +19 +10 Increased ownership in Barcelona, Madrid and Paris Villages
VIA Outlets acquisition of Norwegian Outlet, Oslo Hammerson share £47m New brands to VIA portfolio (which include Hoyer, Tiger of Sweden, Helly Hansen and Bjorn Borg)
(1) Sales growth at VIA Outlets in 2017 includes sales at Mallorca Fashion Outlet for the second half of the year and excludes all other Portfolio review 38 assets acquired in 2016 and 2017 (2) Calculated on assets owned for 24 months (3) Hammerson share Global tourism continues as a growth driver
2017 European tax refunded sales by nationality (1)
YoY growth (%) (1)
Greater China +16 19% South and East Asia +17
1% Gulf/Middle East -2 3% 48% 5% Russia +28
India +38 10% USA +22
14% Other (2) +10
Total +14
(1) Source: Global Blue, (Value Retail Villages) Portfolio review 39 (2) Other includes countries which are not in the top 15 Premium outlets offer attractive yields and higher growth
NOI yield and ERV growth of selected premium outlets (1)
10%
9%
8%
Zürich 7% Madrid Paris Bicester 6% Frankfurt
5% Porto Amsterdam Barcelona 4%
3% Dec 2017 Dec 2017 NOI yield (%)
2%
1%
0% 0% 2% 4% 6% 8% 10% 12% 14% 16% 2017 ERV growth (%)
(1) Data as at 31 December 2017 Portfolio review 40 Source: Cushman and Wakefield Financial results Headline results
Income statement 31 December 2017 31 December 2016 Change Net rental income (£m) (1) 370.4 346.5 +6.9%
Adjusted profit (£m) 246.3 230.7 +6.8%
Adjusted EPS (p) 31.1 29.2 +6.5%
Total dividend (p) 25.5 24.0 +6.3%
Balance sheet
Portfolio value (£m) (2) 10,560 9,971 +2.2% (3)
EPRA NAVPS (p) 776 739 +5.0%
LTV (%) 36 36 n/a
(1) Does not include premium outlets. NRI including premium outlets is £468.0m Financial results 42 (2) Valuation for total portfolio including premium outlets (3) Change reflects capital return, not absolute increase of 5.9% LfL NRI growth
2017 NRI growth by sector (1) UK shopping centres LFL NRI LFL NRI growth (%) 2017 2016 UK shopping centres Net rents, commercialisation +1.8 2.3% 2.0% and other Car parks (business rates) −0.5% 0.4% UK retail parks −2.5 Total 1.8% 2.4% France +2.6
EPRA LfL NRI +1.0
UK retail parks LFL NRI Ireland (2) +7.4 2017 2016 Net rents, commercialisation LfL NRI incl. Ireland 2.4% −2.1% +1.7 and other Surrender premiums −4.9% 4.5% Premium outlets (3) +15.3 Total −2.5%+2.4% Total LfL NRI incl. Ireland +4.4 and Premium outlets
(1) Figures on a proportionally consolidated basis Financial results 43 (2) Proforma figure assuming properties owned throughout 2016 and 2017 (3) LFL NRI growth includes the impact of extensions due to multiple tenant relocations from the existing scheme into new phases. Hammerson management estimate that the extensions have contributed approximately 1-2% to LfL NRI growth Strong uplift in profit
2017 adjusted profit movement (£m) +6.8% 270
4.5 (2.0) 260 (10.9) 6.4
250 7.6
7.3 246.3 240 2.7
230 230.7
220
210
200 2016 LFL NRI Net Premium Developments Tax, MI & Net Net 2017 acquisitions (1) outlets & Other FX Admin Interest (1)
(1) Includes change in Ireland income from interest (£14.0m) to net rental income (£22.9m) Financial results 44 Income growth driving valuation
2017 Drivers of underlying valuation change Value at capital return (1) 31 December 2017 (2) (%) Yield shift (%) Income (%) Other (%) (4) (£m)
UK shopping centres +0.7 +0.2 +1.1 −0.6 3,528 UK retail parks −2.9 −2.8 −0.1 0.0 1,270 UK other (3) +3.8 +1.2 +1.3 +1.3 422 France +0.3 +0.0 +0.1 +0.2 2,011 Ireland (5) −0.3 +0.4 +3.5 −4.2 1,095 Premium outlets +11.5 +1.2 +10.1 +0.2 2,234 Total +2.2 +0.1 +2.5 −0.4 10,560
(1) At constant exchange rates. Developments included per geographical segment Financial results 45 (2) Figures on a proportionally consolidated basis. Principally assets held for development and non-core (3) Other capital movements reflects the impact of changes in purchasers’ costs, development surpluses and capital expenditure (4) Excluding stamp duty, proforma capital return 3.9% Financing ratios underpin our balance sheet strength
Financing policy 31 December 2017 31 December 2016 Net debt - £3,501m £3,413m
Gearing <85% 58 % 59%
Loan to value <40% 36% 36%
Cash and undrawn facilities - £958m £592m
Weighted average cost of debt - 2.9% 3.1%
Interest cover >2.0x 3.4x 3.5x
Net debt/EBITDA <10x 9.3x 9.5x
Fixed rate debt >50% 78 % 70%
GBP/EUR FX balance sheet hedging 70% - 90% 78% 79%
Financial results 46 Capital recycling and funding flexibility
Deleverage through disposals ahead of phased development and reinvestment (£m)
2500 Disposals Capex
2000 £2.0bn +£2.0bn Hammerson and Combined group intu total disposals disposals in short- 1500 medium term
£1.3bn 1000 Combined group medium term capex (1)
500 £660m Hammerson and intu annual run-rate £500m c.£440m of disposals Hammerson target Average run-rate disposals in 2018 capex 0 2015-2017 Short to medium term Capex 2018-2020
(1) Includes intu committed capex and Spain (Source: intu FY17 results ). Further detail on slide 62 Financial results 47 Transaction update
48 Creates a pan-European leading portfolio of high-quality retail and leisure property
Top-three pan-European retail focused REIT with total GAV of £21 billion (1) Increased exposure to higher-growth destination shopping centres A leading portfolio Better aligned to meet the needs of retailers in a multichannel world Combining Ireland and Spain, two of Europe’s fastest growing economies
Superior combined Apply best practice operating skills to unlock the performance potential of the enlarged portfolio operating platform Rigorous income-focused strategy
More differentiated Enhanced resources in events, customer service, online and brand destinations Better equipped to drive footfall and dwell time to deliver productive, attractive space for retailers
Strong development Deploy Hammerson’s expertise in delivering successful developments and extensions across the combined expertise development pipeline
Significant capital Clear rationalisation programme – at least £2 billion of disposals over the short to medium term recycling opportunities Reinvest into higher return opportunities – premium outlets, Spain, Ireland and developments
Earnings accretion expected Compelling financial Approx. £25 million p.a. cost synergies; further from operational efficiencies and refinancing benefits Strengthens Hammerson's consistent earnings and dividend profile
(1) Pro-forma GAV as at 30 Jun 2017, adjusted for Hammerson acquisition of Cergy 3, Paris and disposal of Place des Halles, Strasbourg, and Intu disposal of 50% of Madrid Xanadú and 50% 49 of intu Chapelfield, Norwich intu acquisition allows for agile capital recycling into higher-growth segments
Top-3 European retail platform 2018 combined portfolio split 2021+ illustrative portfolio split (1,2) (2,3) £21 billion GAV (1) (GAV, £bn) (£bn) £820 million NRI (2) Higher-growth Higher-growth segments segments
£2bn disposals More high-quality retail and leisure destinations 18 centres over 1 million sq ft
Combining Ireland and Spain, two of Europe’s fastest growing economies
Close to 20% higher growth Premium outlets categories of Premium outlets, Developments Spain, Ireland and Ireland (1) developments European shopping centres Spain and retail parks (2)
(1) Pro-forma GAV as at 31 December 2017 50 (2) Darker blue indicates top 10 largest combined group ownerships in UK shopping centres by value (3) Illustrative portfolio mix post disposals and reinvestment into Premium outlets, Ireland, Spain and Developments, assumes organic growth of 2% p.a. on largest 10 UK shopping centres and growth of 5% p.a. on Premium outlets, Ireland and Spain Advancing the intu acquisition
Q1 2018 Q2 2018 Q3 2018 Q4 2018
Shareholder meetings Shareholder Publish documentation and Year-end company accounts shareholder approval process documents EGM Combined accounts + shareholder docs
Preparatory merger work and planning
Competition Pre-notification engagement with CMA
CMA Review
Asset strategy planning
Integration Integration strategy planning
Pre-close integration preparation
Conclusion 51 Westquay, Southampton
Questions
52 This presentation contains certain statements that are neither financial results nor other historical information. These statements are forward-looking in nature and are subject to risks and uncertainties. Actual future results may differ materially from those expressed or implied by these statements. Disclaimer Many of these risks and uncertainties relate to factors that are beyond Hammerson’s ability to control or estimate precisely, such as future market conditions, currency fluctuations, the behaviour of other market participants, the actions of governmental regulators and other risk factors such as the Company’s ability to continue to obtain financing to meet its liquidity needs, changes in the political, social or regulatory framework in which the Company operates or in economic or technological trends or conditions, including inflation and consumer confidence, on a global, national or regional basis.
Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this document. Hammerson does not undertake any obligation to publicly release any revision to these forward-looking statements to reflect events or circumstances after the date of these materials. Information contained in this presentation relating to the company or its share price, or the yield on its shares, should not be relied upon as a guide to future performance.
53 Appendices £10.6 billion leading 57 European pan-European retail shopping platform (1) destinations 14 Countries 7%
21% 33% Top 3 Market position in all chosen sectors
12%
9% 18% 43% non-UK assets 2.3m UK shopping centres - £3.5bn sq m retail space
France - £1.9bn
Ireland - £1.0bn 440m visitors UK retail parks - £1.2bn
Premium outlets - £2.2bn 11 - UK shopping centres 4,900 8 - France shopping centres 3 - Ireland shopping centres Development & UK other - £0.8bn Tenants 15 - UK retail parks 55 20 - Premium outlets (1) As at 31 December 2017 Examples of our Product Experience Framework in action
Iconic destinations Retail specialism Experience led Customer first
Victoria Gate awarded Best Delivered 20 new brands in Christmas light switch on at Nearly 450k downloads of the Shopping Centre at the MIPIM 2017 across the portfolio (!) , Cabot drove a 10.6% increase Plus app with over 3.3m app & MAPIC Awards including the first VW brand in daily sales & reached 95k opens since launch experience Facebook users
New leisure extension & events Launch of Style Seeker AI visual Award winning Garden of Pure Over 130k click & collect space at Westquay South search tool with 90k product Imagination at Dundrum drove parcels handled across our UK attracted over 3.4m visitors impressions since November an 8% uplift in footfall & French centres in 2017 across 2017 2017
(1) UK shopping centre portfolio Appendices 56 Consistency through a framework approach
Product Experience Framework - 2017
Toilets Wayfinding Seating Handsfree Click & Play 9 Interactive Style Chatbot upgrade shopping Collect hoardings Seeker Brent Cross ò ò ò ò ò ò ò ò ò Bullring ò ò ò ò ò ò ò ò ò Cabot Circus ò ò ò ò ò ò ò ò ò Centrale ò ò ò ò ò ò ò ò ò Highcross ò ò ò ò ò ò ò ò ò Oracle ò ò ò ò ò ò ò ò ò Silverburn ò ò ò ò ò ò ò ò ò Union Square ò ò ò ò ò ò ò ò ò Victoria Leeds ò ò ò ò ò ò ò ò ò Westquay ò ò ò ò ò ò ò ò ò
Completed In progress Not yet in place Appendices 57 High-quality retail destinations are increasingly valuable in a multichannel landscape
Shoppers are shifting towards large retail destinations and online
UK catchment spend market-share split (%) (1)
2015 2017 70% -2%
60%
50%
40%
30% +2% +6% 20%
10%
0% Hammerson UK shopping Rest of Othercatchment retail retail Online spend centres locations
(1) Source: MasterCard spend data (collected and analysed by Javelin Group) Appendices 58 Store productivity is more than just in-store sales
Representation of a retailers’ store productivity 1. Click & collect and online transactions originated in -store (1)
+10−14%
2. Retail ‘halo’ effect (2) In-store sales 1 2 3 +5−7%
3. Retail logistics support (Collect+) (3)
Retailers are focused on total sales +1−2% (c.60% of retailers allocate all or a portion of online sales to stores)
(1) GlobalData, True Value of Stores analysis, 2017 Appendices 59 (2) See Appendix page 45 for more detail on ‘Retail Halo’ (3) See Appendix page 46 for data on our Collect+ in-centre services Click & collect and online transactions originated in-store account for a third of all online sales, growing rapidly
2017: Online sales generated by a store, 2020: Online sales generated by a store, add 10% to in-store sales (1) add 14% to in-store sales (1)
Store originated Store originated Online sales Online sales
Click & collect Click & collect
In-store sales In-store sales
Online transactions originated in-store Online, non-store originated Pureplay online sales
Source: GlobalData, True Value of Stores analysis, 2017 Appendices 60 (1) ‘Click & collect’ and ‘store originated’ sales as a portion of in-store sales Premium outlets portfolio
Value Retail Villages VIA Outlets centres Bicester Village, Oxford Batavia Stad Amsterdam Fashion Outlet GLA: 28,000m 2 GLA: 31,900m 2 Boutiques: 157 Units: 119 La Roca Village, Barcelona Fashion Arena Prague Outlet GLA: 23,500m 2 GLA: 24,000m 2 Boutiques: 136 Units: 99 Las Rozas Village, Madrid Freeport Lisbon Fashion Outlet GLA: 16,500m 2 GLA: 35,700m 2 Boutiques: 102 Units: 142 La Vallée Village, Paris Hede Fashion Outlet, Gothenburg GLA: 21,900m 2 GLA: 16,300m 2 Boutiques: 107 Units: 53 Maasmechelen Village, Brussels Landquart Fashion Outlet, Zürich GLA: 19,800m 2 GLA: 20,900m 2 Boutiques: 104 Units: 75 Fidenza Village, Milan Mallorca Fashion Outlet GLA: 20,900m 2 GLA: 33,200m 2 Boutiques: 117 Units: 75 Wertheim Village, Frankfurt Seville Fashion Outlet GLA: 21,200m 2 GLA: 16,400m 2 Boutiques: 117 Units: 62 Ingolstadt Village, Munich Wroclaw Fashion Outlet, Poland GLA: 21,100m 2 GLA: 13,700m 2 Boutiques: 112 Units: 89 Kildare Village, Dublin Zweibrücken Fashion Outlet, Germany GLA: 16,700m 2 GLA: 29,300m 2 Boutiques: 91 Units: 112 Vila do Conde Porto Fashion Outlet GLA: 27,800m 2 Units: 123 Norwegian Outlet, Oslo 2 GLA: 13,300m Appendices 61 Units: 77 Hammerson’s total investment in Value Retail (1)
Holding companies 25% Hammerson €2m shareholder loan equity
Las Rozas La Vallée Maasmechelen Wertheim Ingolstadt Kildare Bicester Village La Roca Village Fidenza Village Village Village Village Village Village Village
36 26 23 14 14 23 33 2 28
50 39 35 26 27 35 45 14 41
Village ownership via LPs (%)
Total Village ownership (%) (2)
(1) Pro-forma for February 2018 acquisition of LP economic interests Appendices 62 (2) Total Village ownership calculated as economic entitlement of directly held and indirectly held interests 2017 operational statistics
UK shopping France Sales UK France centres densities (4) £/ft 2 £/ft 2 Sales (1) –2.7% 0.1% 2017 240 – 490 395 – 620 Footfall (2) 0.4% 1.6% 2016 250 – 515 350 – 715 Rent:sales (3) 13.3% 11.0% 2015 250 – 520 355 – 725 OCR (3) 21.7% 13.8%
Occupancy (%) UK shopping UK retail France Ireland Group centres parks 31 December 2017 98.1 99.4 97.9 99.7 98.3 30 June 2017 97.2 99.0 96.6 99.9 97.3 31 December 2016 97.8 98.6 96.5 99.5 97.5
(1) Retail sales on same-centre basis, includes all shopping centres. 2017 UK benchmark -3.0% (Source: Visa Face to Face index); 2017 France benchmark -1.0% Appendices 63 (Source: CNCC) (2) 2017 UK benchmark -2.8% (Source: Tyco Shoppertrak); 2017 France benchmark -1.8% (Source: CNCC) (3) Excludes anchor stores. France data includes VAT (rent:sales and OCR) (4) Excludes anchor stores. France data includes VAT; Jeu de Paume, Beauvais, excluded 2017 portfolio leasing overview
Leasing vs previous Leasing vs ERV (%) ERV growth New rent secured passing (%) (%) from leasing (£m) UK shopping centres +6 +8 +0.9 13.4
UK retail parks +9 +11 –0.1 6.3
France +8 +5 +0.9 9.8
Ireland +4 +10 +2.7 1.9
Group +7 +8 +0.9 33.3 (1)
(1) Including Ireland and UK Other properties (principally assets held for development and non-core) Appendices 64 2017 valuation data
UK shopping UK retail France Ireland UK other Total centres parks interests portfolio
True equivalent yield (%)
31 Dec 2017 5.1 6.2 4.4 4.4 7.2 5.0 31 Dec 2016 5.1 6.1 4.4 4.3 7.4 5.1
ERV (£m)
31 Dec 2017 186.7 75.4 91.7 43.3 14.1 411.2 31 Dec 2016 186.8 77.1 107.9 34.8 13.4 420.0 LfL change (%) 0.9 –0.1 0.9 2.7 1.6 0.9
Appendices 65 2017 components of valuation change
Components of valuation change in 2017, total portfolio (£m)
300 282
250 246 225
198 200
150
100
50 37 36 37 24 27 24 7 6 2 6 3 4 6 3 8 0 -1 -2 -11 -20 -19 -27 -50 -32 -41 -44
-100 UK shopping UK retail parks France Ireland Developments and Premium outlets Total Portfolio centres other Yield Income Development and other (1) Total
Note: Development and other includes the movement in the UK Other interests portfolio where valuations increased by a total of £13m during 2017 Appendices 66 (1) Other capital movements reflects the impact of changes in purchasers’ costs, development surpluses and capital expenditure Local Data Company: property scoring methodology
Each location is scored according to 12 criteria:
1 Catchment size, based on drive time 2 Catchment spending power 3 Competing centres analysis 4 Department stores 5 Cinemas 6 Presence of ‘minor anchor’ retailers 7 Opening of new ‘minor anchor’ stores 8 Closure of ‘minor anchor’ stores 9 Proportion of charity shops 10 Dwell time 11 Vacancy rate 12 Persistent vacancy
Appendices 67 Successful track-record of capital recycling through varied conditions to a breadth of buyers
Hammerson annual disposal proceeds (£m) Split of Hammerson’s disposals by category of acquirer (2015 -2017) 700 £1.2bn 5% 8% 600 33% 13% 500
400
17% 300 24%
200
European institutions 100 Private equity
0 Global capital 2011 2012 2013 2014 2015 2016 2017 UK institutions 2011-2017 total £2.5bn; average £360m disposals p.a. Local Authorities £1.2bn over last 3 years, 2% below book value Other
Appendices 68 Breadth of buyers for prime European assets
Hammerson disposals 2015 – 2018 YTD Date Buyer Net proceeds £m
Drakehouse retail park, Sheffield Mar-15 90 North (private equity) 61
Bercy 2, Paris Oct-15 Tikehau (Institution) 47
Grand Maine, Angers Oct-15 French Institution 46
Monument Mall, Newcastle Jan-16 Standard Life 75
Villebon 2, Villebon-sur-Yvette Apr-16 French Institution 124
Thurrock Shopping Park Jun-16 TH Real Estate 98
Manor Walks shopping centre, Cramlington Jun-16 Arch (local authority) 77
Westmoreland retail park, Cramlington Jun-16 Arch (local authority) 36
Grand Central, Birmingham (50%) Nov-16 CPPIB 173
Westquay South, Southampton (50%) Dec-16 GIC 45
Westwood and Westwood Gateway Retail Parks, Thanet Jul-17 BMO (private equity) 78
Saint Sébastien, Nancy Dec-17 AEW (private equity) 144
Place des Halles, Strasbourg Dec-17 Fund manager 167
Battery Retail Park, Birmingham Feb-18 NFU Mutual 57
Wrekin Retail Park, Telford Mar-18 N/A 35
Total £1.3bn
Appendices 69 Hammerson and intu capex 2018-2020
Hammerson (£m) 2018 2019 2020
Major London developments (Brent Cross, Croydon) 97 104 107
France – extensions (Cergy, Italie Deux) 105 81 61
Retail parks 48 34 9
Highcross reconfiguration, Leicester 14 2 0
Total Hammerson 264 221 176
intu (£m) (1) 2018 2019 2020 intu Trafford Centre 25 47 0 intu Watford 77 3 0 intu Lakeside 52 50 0
Spain 23 157 217
Total intu 177 257 217
2018-2020 1,300
Run-rate (£m) 440
(1) Source: intu FY2017 Results Appendices 70 On-site developments
Scheme (1) Lettable Expected Value Estimated Estimated Let (5) area m2 completion 31 Dec 2017 cost to annual % £m (2) complete (3) income (4) £m £m Parc Tawe, Swansea 21,400 Q1 2018 n/a 3 2 91
Orchard Centre, Didcot 8,700 Q1 2018 29 12 3 62
Les 3 Fontaines, Paris extension 33,000 Q2 2021 n/a 201 16 22
Total 63,100 216 21
(1) Group ownership 100% for all on-site schemes Appendices 71 (2) Values are not included for extension projects which are incorporated into the value of the existing property (3) Incremental capital cost including capitalised interest (4) Incremental income net of head rents and after expiry of rent-free periods (5) Let or in solicitors' hands by income at 22 February 2018 Development pipeline opportunities
Scheme Scheme area (m 2)
• Extension and refurbishment of Brent Cross, forming part of wider Brent Cross Cricklewood regeneration plans, totalling 175,000m 2 of retail, catering and leisure. Brent Cross extension 90,000 • Reserved matters planning application approved October 2017. The compulsory purchase order was confirmed in December 2017. • Laing O'Rourke has been selected as the preferred contractor for the retail extension and leasing is progressing.
• Resolution to grant planning permission subject to conclusion of a S106 agreement, confirmed in January 2018 for a 3.5ha area of joint venture- Bristol investment properties (1) 74,000 owned properties forming part of the Broadmead estate adjoining Cabot Circus. • Masterplan includes up to 74,000m 2 retail and leisure, 380 car parking spaces, and the potential for 150 residential units and a 150 room hotel.
• Redevelopment of Whitgift Centre and refurbishment of Centrale shopping centre. Croydon Town Centre 200,000 • Resolution to grant outline planning permission confirmed in November 2017 for the redevelopment of the Whitgift Centre subject to conclusion of a S106 agreement.
• Variation to planning condition consented in 2017 to permit phased delivery of a masterplan for a future extension of existing centre. Silverburn (Phase 4), (1) Glasgow 50,000 • Masterplan includes 31,250m 2 retail, 8,500m 2 leisure, plus a hotel.
• Extension of existing shopping centre for up to 11,000m 2 of retail, 12,000m 2 of leisure and catering, plus up to 294 car parking spaces and a hotel. Union Square, Aberdeen (1) 27,800 • Planning consent subject to conclusion of a s.75 agreement anticipated H1 2018.
• Phase 1 Victoria Gate completed October 2016. Operator being sought for up to 200 bed hotel adjacent to new multi-storey car park. Victoria, Leeds 95,000 • Phase 2 master planning underway to deliver a phased retail/leisure mixed-use scheme to complement Victoria Gate. (Phase 2) (1) • Freehold control of 4.1ha Phase 2 site obtained.
• Planning consent granted in November 2017 for retail and leisure extension to Imperial Retail Park. Imperial Retail Park, Bristol (1) 7,350 • Leasing progressing ahead of potential start on site in Autumn 2018.
Oldbury, Dudley (1) 10,900 • Planning consent granted in May 2016 for new development of up to 11 retail and catering units. Leasing underway.
• 4.2ha site on edge of the City of London. • A planning application for a major mixed-use development of up to 270,000m 2 was deferred by the GLA in April 2016 to allow further consultation. The Goodsyard, London E1 270,000 This work is progressing and we are now targeting a submission of the necessary amendments to the GLA by the end of 2018 to allow the Mayor to determine the scheme.
• Opportunity to reposition existing shopping centre, creating a leisure-led destination. SQY Ouest, Saint -Quentin-en- 32,000 • Trading consent obtained. Yvelines (1) • Construction works and pre-letting on-going, Phase 1 launched to handover first units in first half of 2018.
• 2.4ha site located adjacent to Dundrum Town Centre. Dundrum Phase II, Dublin (1) 100,000 • Masterplan in preparation for a residential-led mixed-use scheme including retail.
• Extension of duration of planning consent granted until May 2022 to create a retail-led city centre scheme including 60,000m 2 of retail. Dublin Central, Dublin (1) 130,000 • The Court of Appeal in Dublin overturned the earlier ruling relating to buildings on Moore Street and their national monument status. Previously constrained by the court case, Hammerson will now engage with stakeholders on the future of the site.
Swords Pavilions Phase III, • Extension of planning consent granted to August 2021 to create a mixed-use development including 124,000m 2 of retail and commercial uses. 272,000 Dublin (1) • Loan-to-own process complete. Masterplan for extension to be reviewed in 2018.
Total 1,359,050
(1) Schemes are on Group owned land. No additional land acquisitions are required. Excludes occupational and long leaseholds. Appendices 72 UK shopping centre investment
Hammerson UK shopping centre cash flow statement 2017 2016 2015 £m £m £m Gross rental income 180.2 174.2 162.0
Service charge income 35.4 34.0 28.7
Total income 215.6 208.2 190.7 B
Service charge expenses (excl. investment) −31.5 −32.9 −25.3
Other property expenses (Hammerson NRI) 1 −25.4 −22.4 −20.6
Net cash flow before maintenance capex 158.7 153.0 144.9
Investment spend (service charge maintenance projects) 2 −5.8 −4.6 −6.1 A Investment projects (capex on maintenance or ‘value-add’ projects) 3a + 3b −15.6 −12.6 −9.6
Net cash flow from Operations 137.3 135.8 129.2
Maintenance capex: total income, % 10% 8% 8% A/B
Capitalised Recoverable Direct/indirect Selection of examples from tenant return?
11. Hammerson n/a Car park expenditure; landlord marketing; interactive hoardings, operating expenses UU upkeep collection lockers/mobile phone charge points, research and marketing costs
2.2 Service charge n/a Painting, flooring upkeep, footfall counters, CCTV, wifi upgrade, IT (maintenance) U P upgrades
3.a3a Investment Partial Direct / Indirect Wayfinding projects, WC upgrades, LED lighting, public seating projects (hygiene) P upgrades
3.B3b Investment Direct Creating new lettable space: e.g.Next reconfiguration at the Oracle, projects (value -add) P U House of Fraser reconfiguration at Highcross, car park upgrade at Bullring
Appendices 73 31 Dec 2017
Reported(£m) Fully proportionally Net debt consolidated (£m) Group 3,501 3,501 LTV VIA Outlets - 174 methodology Value Retail - 512 Loan 3,501 4,187
Property values
Group 8,326 8,326 VIA Outlets - 600 Value Retail - 1,634 Less minority interest (14) (14) VIA Outlets net assets 361 - Value Retail net assets 1,069 - Value 9,742 10,546 LTV 36% 40%
Appendices 74 Continuing to Debt maturity profile 31 December 2017 (£m) take advantage 1000 of refinancing 900 opportunities 800
700
600
500
400
Revolving credit facilities 300
Private placement 200
Sterling bonds 100 Euro bonds 0 Secured debt 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031
Appendices 75 Tenants in administration
31 December 2017 % of passing rents 50 units in administration 0.9
9 units unoccupied 0.1
30 June 2017
42 units in administration 0.8
8 units unoccupied 0.1
31 December 2016
44 units in administration 0.7
9 units unoccupied 0.1
Appendices 76 Our new Positive Places objective is for Hammerson to be Net Positive for carbon, water, resource use and Carbon Resource Use socio-economic impacts Net Positive for Net Positive for resource use carbon means means waste avoided, recycled by 2030 carbon emissions or re-used exceeds materials used avoided exceed that are neither recycled, emissions generated. renewable nor sent to landfill.
“I am proud that Hammerson has become the first real estate company globally to identify such comprehensive targets and by extending our aims to tenant impacts we will be able to directly support our retail clients and deliver best in class retail assets that are fit for the future.” Water Resource Use David Atkins, CEO, Hammerson plc Net Positive for water means Net Positive for socio-economic water replenished by external impacts means making a projects exceeds water measurable positive impact on consumed from mains supply. socio-economic issues relevant to our local communities beyond a 77 measured baseline. Steps to becoming Net Positive
2015 2016 27,000 tonnes CO 2e 539,082 m 3 water 2017 18,243 tonnes waste 24,000 tonnes CO 2e not recycled or reused 511,888 m 3 water 2018 – 2020 17,293 tonnes waste Deliver carbon neutral not recycled or reused development at Rugby 2021 40,000 FTE jobs Install 3 further solar Work with tenants to supported across our PV arrays reduce tenant on site energy demand assets Reduce energy CO 2e reduced by at demand by further 7% Major developments least 27,000 tonnes v 2015 baseline to support long term Embed net positive Achieve 85% carbon reduction into new recycling Identify local carbon developments saving projects Increase renewable capacity
Appendices 78 Our 2017 sustainability highlights
Delivered the world’s first BREEAM Outstanding, carbon neutral retail park at Elliott’s Field, Rugby
Developed the second zero energy Costa Coffee EcoPod at Parc Tawe, Swansea
Managed exposure to Mimimum Energy Efficiency Standards (MEES) risk out of the UK portfolio
Installed additional 910 kWp clean electricity capacity
Achieved 3% improvement in the carbon intensity of the business, one of our corporate KPIs
Recycled 73% of waste across our UK, France and Ireland portfolios
Supported over 100 people with skills training and into employment at our shopping centres
Supported over 70 business-start-ups in France and 400+ entrepreneurs in the UK through the Initiative France and Pop-Up Business
Appendices 79