Portfolio Our diverse asset mix Chart 14 11 1 review 1. City of London 11% 10 2. Mid-town 10% 3. West End 24% 9 4. Inner London 3% 2 5. Central London retail 10% 6. London shopping centres 4% 8 7. Regional shopping centres 17% 8. Retail parks 5% 9. Outlets 7% Combined 10. Leisure 6% Portfolio We have a diverse 11. Hotels 3% portfolio of assets 7 located in vibrant 65% 3 locations across of our assets by value are located in London London and the UK. 6 Here’s an update on Our opportunity, approach 5 4 and capital allocation varies how we bought, by sub-sector managed, developed and sold this year. Our top ten assets by value New Street Square, EC4 Cardinal Place, SW1 One New Change, EC4 Bluewater, Kent Gunwharf Quays, Contemporary offices, retail Landmark site, part of our Office and leisure destination The dominant shopping Portsmouth and restaurant campus. Victoria cluster, home to blue- in an iconic building. and leisure destination in Outlet shopping, leisure and Annualised net rent £37.7m chip businesses and retailers. Annualised net rent £29.9m the south east of England. entertainment destination Annualised net rent £29.1m Annualised net rent £28.6m on a waterfront location. (Landsec share) Annualised net rent £29.0m 1&2 New Ludgate, EC4 Queen Anne’s Gate,SW1 Trinity Leeds Nova, SW1 62 Buckingham Gate, SW1 Contemporary office, Landmark office building Retail and leisure destination A stunning new mixed use Office and retail space with restaurant and retail space. comprehensively refurbished forming the heart of Leeds destination within our Victoria a cinema in the basement. Annualised net rent £22.3m in 2008. Annualised net rent city centre. Annualised net cluster. Annualised net rent Annualised net rent £23.1m £33.2m rent £26.5m £8.6m (Landsec share) 24 Landsec Annual Report 2019 Strategic ReportStrategic Key 2019 figures Actions and outcomes Portfolio Focus for 2018/19 Progress in 2018/19 Focus for 2019/20 — Growing like-for-like net — Like-for-like net rental income — Maintaining like-for-like net 1 rental income in the growth of £20m achieved rental income -4.1% £23m London Portfolio — Providing property as a service, harnessing data and Valuation deficit of investment lettings — Diversify income streams — A number of new diversified technology, to improve through innovation in retail income streams developed, customer experiences including Black Box Revolution at Trinity Leeds — Researching and trialling £9m ways to build better, faster of development — Progress on time and budget — Deutsche Bank confirmed and for less at 21 Moorfields, EC2 they are taking the entire lettings — Expanding customer offerings 564,000 sq ft building of Myo, Landsec Fitted and — Completed piling six weeks Landsec Lounges early, with main contractor London Portfolio — Progress on time and on on site as of 1 April 2019 budget at 21 Moorfields, 1 — On track to deliver on One Sherwood Street, Nova -0.5% £7m programme and to budget East and 105 Sumner Street — Progress plans for the future Valuation deficit of investment lettings — Progress plans for all of the — One Sherwood Street, W1, development opportunities Nova East, SW1 and 105 Sumner development pipeline of in central London Street, SE1 commencing in 2019 2.6 million sq ft in the existing portfolio and seek to grow the — Progress feasibility on — Planning applications being pipeline through acquisitions 3.5% £8m London shopping centres prepared at Shepherd’s Bush, and partnerships Ungeared total of development — Seek to grow the pipeline W12 and Finchley Road, NW3 — Delivery of key strategic MSUs property return lettings through acquisitions and and master planning under at our major shopping centres partnerships way at Lewisham — Acquired 1.6 acre site at — Generating £4m of social Lavington Street, SE1 value across our community 4.8% 1.7% programmes, in support of The portfolio Like-for-like voids — Progress planning — Planning consent received our £25m corporate target underperformed the (2018: 1.8%) applications for physical for improvement plans at all by 2025 MSCI Quarterly improvement plans at our three outlets — Improving energy management Universe recently acquired outlets in support of 2030 energy — Understanding the changing — Worked closely with our management corporate needs of our customers and customers, launching new commitments Retail Portfolio ensuring our portfolio initiatives to better meet their responds accordingly needs – Myo, Landsec Fitted 1 and Landsec Lounges -8.4% £16m — Securing employment for — Secured employment for Valuation deficit of investment lettings a further 160 candidates via 187 candidates our Community Employment Programme -3.4% £1m — Improving energy — 19 energy management Ungeared total of development management in support of initiatives approved, across 2030 corporate commitments 15 sites, of which ten projects property return lettings have already been completed -6.8% -2.4% The portfolio Footfall in our regional outperformed the shopping centres and MSCI Quarterly outlets (ShopperTrak Universe UK national benchmark down 2.8%) 3.7% -0.9% Like-for-like voids Same centre sales, (2018: 2.7%) taking into account new lettings and occupier changes 0.8% (BRC national benchmark for Units in administration physical stores (2018: 0.7%) down 2.1%; including online, flat) 1. On a proportionate basis. Landsec Annual Report 2019 25 In Southwark, at 105 Sumner Street we have Portfolio review consent for two buildings totalling 131,000 sq ft continued Develop and will start on site in October with completion We have a 3.6 million sq ft near-term pipeline in early 2022. We will be implementing offsite of opportunities in the capital. This includes manufacturing and automated on site 2.2 million sq ft of office-led schemes and assembly techniques here to reduce time, cost Our assets and operations continue to be 1.4 million sq ft of residential-led mixed use and environmental impact. Meanwhile, we are focused on maximising financial, physical opportunities with further schemes being working up our plans for 324,000 sq ft of offices and social value by providing the right space explored. and new public riverside space at Red Lion for businesses and people to thrive. As the Court. In addition, our recent acquisition on Work at 21 Moorfields, EC2 is progressing on population grows and ages, and the boundaries Lavington Street provides us with redevelopment time and to budget and Deutsche Bank has between work, living and leisure time become and refurbishment opportunities for a range of confirmed they want to lease the entire more blurred, it is increasingly important to workspaces. This will grow our presence in this building. Work below ground has now provide a broader mix of products and services increasingly popular part of London. completed and installation of the steel frame to meet future demand. is under way. We’re procuring products and Outside central London, we’ve concluded a In London, we have a portfolio of first-class services on this scheme in a different way. For feasibility exercise on the opportunity to create office-led assets with supporting retail, leisure example, we worked with four sub-contractors residential-focused, mixed use developments and amenity space, shopping centres with for 24 months to develop the design of the in two well-connected vibrant locations in excellent development potential and hotels building, using a more collaborative approach Shepherd’s Bush, W12 and Finchley Road, NW3 with longer term redevelopment opportunity. to build an accurate forecast of costs earlier comprising around 1,700 new homes in total, Strategically, London will become a larger in the build process. This is enhanced by our use much of which we intend to retain as homes for proportion of our business and this year we’ve of building information modelling (BIM), which rent. We aim to submit planning applications grown and progressed our development creates a 3D model of the whole building down during the course of this financial year. In pipeline. We’ve also broadened our customer to the very last detail. This means we’re more Lewisham, we’ve started master planning our offer, including launching a flexible office likely to get construction and fit-out right first town centre asset which extends to around product. time while avoiding potential delays. We’re eight acres and provides the potential for a already seeing significant benefits from BIM at new residential-led, mixed use destination. Outside London, we’re focused on shopping 21 Moorfields and are applying it on all projects. and leisure destinations where people can Development expenditure Chart 15 At One Sherwood Street, W1, we started shop, eat and socialise. In what remains a very Estimated future spend challenging time for retailers, we’re constantly demolition in April. Completion is scheduled for enhancing the brand mix and reshaping space June 2022. This 144,000 sq ft mixed use scheme £m to provide the best experience. We also have behind Piccadilly Lights will comprise offices, 600 a number of retail parks, a sector where retail units and a roof-top restaurant together we’ve significantly reduced our exposure over with a Landsec Lounge at this iconic location. recent years. 500 At Nova East, SW1, we’ve improved the scheme by simplifying the design and structure, increasing the consented floor area by 19%. 400 We’ve recently submitted a revised planning Buy application and gained possession of the 300 We are actively tracking a high volume of both site back from TfL. Enabling works have development and investment opportunities commenced and piling is expected to start across London and are looking to buy in both in July. 200 well-established and emerging locations. We At Portland House, SW1, we’ve moved away regard London as our core market. It is a huge, from a complete redevelopment and are increasingly polycentric city with a world class 100 planning a 401,000 sq ft comprehensive public transport system.