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Victoria, Leeds

2018 Full-year results 25 February 2019

Agenda

01

2018 overview and 2019 priorities

02

2018 financial results

03

Actively managing the changing shape of retail

04

Conclusion and Q+A

David Atkins – CEO

Timon Drakesmith – CFO

David Atkins – CEO

2

2018 overview

Progress in a challenging market Challenges

2018 performance

Structural shift in retail

Continued demand for our space

UK online penetration 18%

Total leasing £27.7m rent

(1)

Significant increase in tenant failures

6% above ERV, 5% above previous passing rent

Winning and losing brands

Occupancy 97.2%

Tough UK market

Diversified portfolio supports performance

Prevailing economic uncertainty impacting consumer confidence

48% portfolio non-UK LfL NRI: Ireland +1.6%; premium outlets +5.2%

Declining sales and footfall

Weak investment markets resulting in

£570m disposals achieved

valuation decline

Disposals include 50% Highcross and four retail parks

Transaction volumes down 41% in 2018

1 2 3

(2)

Global Data 2019 online penetration See slide 4 Dividends and share buyback

Net debt reduced by £95m, LTV 38% £331m returned to shareholders

(3)

3

2018 overview

Weakening investment market impacting our valuations Market investment volumes (£bn)

2018 valuation change (%) (2)

(1)

12

10

H1

2

£9.7bn

H2

0

-2

8

£6.7bn

-4

6

£4.0bn

-6

4 -8 2

-10

0 2016

2017

2018

UK shopping centres

UK retail parks

France shopping centres

Ireland shopping centres

-12 UK flagships

UK retail parks

France flagships

Ireland flagships

Premium outlets

Group

Outlets 1 2

Source: UK volumes: PropertyData; Other sectors: Cushman & Wakefield Valuation change reflects capital return. UK Other and Development portfolios not shown

4

2019 priorities

Structural retail shift and increasingly challenging markets driving our priorities

Capital efficiency

Optimised portfolio

Exiting retail parks Reducing debt

Pursuing portfolio-wide disposals

Operational excellence

Managing structural shift in retail

5

2019 priorities

Number one priority for 2019 is reducing debt Cash proceeds/uses (£m) 600

Future share buybacks on hold until we achieve our enhanced portfolio disposal goal and see greater market certainty

£95m reduction in debt

500

£179m debt reduction in H2 18 400

300

£570m disposals completed (1)

£339m capex and premium outlet (2) acquisitions

200

100

£127m share buyback (3) Other

0

Reducing debt

Target net debt c.£3.0bn by December 2019

>£500m target disposals

£140m forecast capex

(4)

2018

2019 forecast 1 2 3 4

Shown gross of selling costs. Net proceeds £553 million See slide 14 for capex details. Premium outlets acquisitions of £109m relate to additional Value Retail investor stakes acquired during 2018 Reflects cash flow in year, additional £2 million settled in 2019 See slide 13 for details

6

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

400

2014 – 2018 average £395m p.a.

2019+ disposals >£500m target Exit retail parks

300

Pursuing disposals from across the portfolio; discussions under way for over £900m

200

100

0

2014 UK flagships

2015 UK retail parks

2016 UK other

2017 UK office

2018 France

2019 target Ireland

7

2018 financial results Timon Drakesmith – CFO and MD, Premium Outlets

8

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) EPRA NAVPS (p) Net debt LTV – headline (%) 1 2

(2)

Capital return Proportionally consolidated LTV 43% (2017: 40%)

9,938

10,560

(4.3%)(1)

738

776

(4.9%)

3,406

3,501

(2.1%)

38%

36%

+2pp 9

Portfolio valuation summary

Sector

FY 2018 H2 2018 capital return (1) capital return (1)

Value at 31 Dec 18 (2)

Portfolio weighting (2)

%

%

£m

%

(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

648

6

UK other

4.5

(5.5)

173

2

(13.2)

(9.9)

873

9

(4.3)

(4.0)

9,938

100

Flagship destinations UK

UK retail parks Total

1 2

At constant exchange rates Figures on a proportionally consolidated basis

10

Valuation drivers: yield and ERV movements

Sector

NEY 31 Dec 2018

NEY increase/ (decrease) in 2018

%

bps

%

UK

5.3

+37

−2.0

Yields underpinned by transactions (Highcross, Clapham) and Dec 18 RICS guidance

France

4.2

−6

+0.5

ERVs driven by leasing at Les Terrasses du Port

Ireland

4.4

+4

+2.8

ERV progression at Dundrum and Pavilions

5.7

−9

+1.7

Driven by sales growth and remerchandising

6.5

+53

−2.7

Weakening transactional evidence and CVA impact

(1)

ERV Commentary increase/ (decrease) in 2018

Flagship destinations

Premium outlets

(2)

UK retail parks

1 2

Figures on a proportionally consolidated basis and exclude UK Other and Developments Premium outlets NEY is based on Cushman & Wakefield exit yields

11

Credit ratios

Internal guidelines

31 Dec 2018

31 Dec 2017

-

£3,406m

£3,501m

<85%

63%

58%

<40%

38%

36%

<45%

43%

40%

Cash and undrawn facilities

-

£729m

£958m

Debt maturing in <2 years

-

nil

£491m

Weighted average cost of debt

-

2.7%

2.9%

>2.0x

3.4x

3.4x

<10x

9.5x

9.3x

>50%

74%

78%

70% - 90%

79%

78%

Net debt Gearing LTV – headline

(1)

LTV – fully proportionally consolidated

Interest cover Net debt/EBITDA Fixed rate debt GBP/EUR FX balance sheet hedging 1 2

(2)

Net debt excludes premium outlets and value includes premium outlet net assets Includes VIA Outlets and Value Retail net debt and property values

12

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

Net operating cashflow

Dividend

2800 2700 2600 Dec 2017

Disposal (2) proceeds

1 2 3 4

Share buyback

Capex

(3)

Outlet acquisitions and (4) other

Dec 2018

2019 target

On a proportionally consolidated basis, excluding premium outlets Excludes selling costs of £17 million which are included in ‘outlets acquisitions and other’ Includes £31 million held in escrow for future Croydon land acquisitions and a £16 million movement in capex receivables and payables Includes outlet acquisitions of £109 million, selling costs, foreign exchange, outlet distributions, debt and loan cancellation costs, acquisition-related costs and dividends paid to non-controlling interests

13

Flexibility over future capital expenditure

Capex 2018-2020 Committed

2018

2019

2020

Actual

Forecast

Forecast

£m

£m

£m

95

70

80

74

25

-

169

95

80

43

38

40

2

7

20

45

45

60

214

140

140

On-site developments Other committed capex

(1)

Discretionary Flagship destination investment City Quarters

Total

1

2018 includes £31 million held in escrow for future Croydon land acquisitions

14

LfL NRI movements

LfL NRI movements across the portfolio (%)

UK Retail Parks

Key drivers

CVAs (-4.7%)

(4.3)

UK Flagships

CVAs (-2.1%), Westquay and Grand Central

(1.3)

France Flagships

Lower occupancy and backdated turnover rent in 2017

(0.9)

Ireland Flagships

Rent reviews and leasing Growth at all centres

1.6

Value Retail

Fidenza, Kildare, La Vallée

4.1

VIA Outlets

Landquart, Lisbon, Mallorca

10.4

0.3

Group

-6

-4

-2

0

2

4

6

8

10

12

15

Stand out growth rates from premium outlets

Premium outlets financial summary 2014-2018

(1)

2014

2015

2016

2017

2018

£m

£m

£m

£m

£m

GRI

72

87

101

139

160

22.4%

NRI

52

66

68

98

113

21.3%

13

14

23

27

34

26.5%

18%

16%

23%

19%

21%

32

37

43

59

68

44%

43%

43%

42%

43%

17

23

30

38

41

24.8%

1,028

1,244

1,689

2,234

2,459

24.4%

769

921

1,288

1,575

1,754

22.9%

Marketing expenditure

(3)

Marketing:GRI ratio EBIT EBIT margin EPRA earnings

Property valuations EPRA net assets

1 2 3

All figures at Hammerson share. Source: 2014-2018 Company Annual Reports and Accounts. 4 year CAGR 2014-2018 Marketing expenditure derived from Value Retail and VIA Outlets annual reporting packs

CAGR

(2)

21.1%

16

Premium outlet valuations are driven by sales density levels

Yields on premium outlets Sales densities illustrate appeal to consumers, brands and investors Very high

2

Sales density (€000/m2)

€8,000-39,000/m

(1)

2018 weighted average sales density was €9,800/m2, up +5% YoY Weighted average NIY 4.7%

High

2

€5,000-8,000/m

Medium

2

€3,000-5,000/m

2%

Comparable to European prime shopping centres

(2)

3%

4%

5%

(3)

6%

7%

8%

Dec 2018 NIY (%) 1 2 3

‘Very high’ includes Bicester Village, Fidenza Village, Ingolstadt Village, Kildare Village, La Roca Village, Las Rozas Village, La Vallée Village and Wertheim Village ‘High’ includes Batavia Stad Fashion Outlet, Maasmechelen Village, Mallorca Fashion Outlet, Vila do Conde Porto Fashion Outlet and Zweibrücken Fashion Outlet ‘Medium’ includes Fashion Arena Prague Outlet, Freeport Lisboa Fashion Outlet, Hede Fashion Outlet, Landquart Fashion Outlet, Oslo Fashion Outlet, Sevilla Fashion Outlet and Wroclaw Fashion Outlet

17

2018 earnings and future guidance

2018 EPS walk (pence per share) 2017

Debt reduction phase 2019-2020

Future 2021+

31.1

Net disposals

(3.5) 27.6

Negative

Neutral

LfL NRI

27.1 (0.5)

Negative

Positive

Neutral

Positive

2.1

Positive

Positive

0.4

Positive

Positive

EPS: Negative

EPS: Positive

Development and other Interest, net admin and other Premium Outlets

2018

27.1

1.0

28.1

30.2

30.6

18

Rooftop at Les Terrasses du Port, Marseille

Actively managing the changing shape of retail David Atkins - CEO

19

Hammerson’s geographic diversification mitigates risk

UK

France

Ireland

Premium outlets

2019 online penetration (1)

18%

11%

10%

10%

Consumer spending growth 2019

1.1%

1.3%

2.2%

3-5%

-1.6%

1.1%

4.7%

6.2%

Hammerson portfolio split by value

8%

9%

29%

25% 19%

(4)

(5)

(2)

10% Rental income growth 20192020 (3)

48% non-UK UK flagships

Premium outlets

France flagships

UK retail parks

Ireland flagships

Developments and UK other 1 2 3 4 5 6

Sources: Global Data, CRR Retailmenot Source: Oxford Economics 2019 forecast. Real prices Source: PMA 2019-2020 mall rental growth per annum Source: Bain 2018 Luxury Goods Worldwide Market Study online penetration reflects global luxury sales Source: Bain 2018 Luxury Goods Worldwide Market Study based on spending on personal luxury goods 2019-25 Source: Bain 2018 Luxury Goods Worldwide Market Study. Growth in luxury off-price sales used as proxy for rental income growth as brand sales drive turnover rent

(5)

20

Responding to our changing markets

Structural shift in retail

Elevating experience

Our response: Leasing strategy

Our response: Leisure & super events

Luxury sales outperform

Our response: Premium outlets platform

Thriving cities

Our response: City Quarters

21

Structural shift in retail

Online growth a key factor in declining store numbers

Channel shift has been fast in the UK UK retail online penetration %

Those slow to adapt are failing UK net store openings & closures by category

(1)

22

(2)

2,000

20

1,000

18 0 2012

16

2013

2014

2015

2016

2017

2018

(1,000)

14 (2,000)

12

(3,000)

10

1 2

Global Data LDC

2023

2022

2021

2020

2019

2018

2017

2016

2015

(5,000)

2014

6 2013

(4,000)

2012

8

Non-Food

Grocery

Leisure

Service

22

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% Index -3.5%

45%

(1)

35%

2018 sales Hammerson -2.9%

25%

Index -2.7% (2) 2018 price deflation

(3)

Non-food -1.5% Clothing -7%

15% 14.2%

5%

7.7%

0.1%

-5%

-2.2%

-2.7%

Health & beauty

F&B

-3.0%

-3.3%

-3.5%

-4.8%

-5.4%

-9.4%

-15%

Selected winning brands

-25% -35% -45% Dept. stores (aspirational)

1 2 3

Leisure

Source: Tyco Source: BDO BRC Nielsen shop price index

Sportswear

Jewellery High Fashion Home, Dept. & street (aspirational) consumer stores personal fashion brands (mainstream) luxuries (contemporary) & gifts

High street fashion (traditional)

23

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 2017

(1)

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 High street fashion (traditional)

F&B

Department stores Home, consumer (mainstream) brands and gifts

1

Health & beauty

Includes UK flagship destinations, UK retail parks and UK other portfolios

Jewellery & personal luxuries

24

Structural shift in retail

Successful brands want the right physical presence +11% brands taking space

(vs. 2013)

(1)

The role of physical space is evolving

Brand awareness

Online catchment sales

Service

Fulfilment

Returns

Morphe, Bullring

1

Source: LDC growth in brands with at least five UK stores, 2013-2019

25

Structural shift in retail

Strong leasing volumes in our flagship destinations Flagship destinations leasing (£m) 5.0

25.0

Flagship leasing volumes

2018 £m

2017 £m

14.4

13.4

France

7.3

9.8

Ireland

2.6

1.9

24.3

25.1

UK

4.5 4.0

20.0

3.5 3.0

15.0

2.5 2.0

Total

10.0

1.5

Group leasing key facts

1.0

5.0

Leasing vs. Dec 17 ERV +6%

0.5

Monthly leasing 2018 (LHS)

Cumulative leasing activity 2017 (RHS)

1

December

November

October

September

August

July

June

May

April

March

February

0.0 January

0.0

Leasing vs. previous passing +5% Average lease term: 11 years Average incentive: 6 months

(1)

(1)

Cumulative leasing activity 2018 (RHS)

New lettings across UK, France and Ireland flagship destinations. 2017: group average lease term 11 years; group average incentive 6 months

26

Structural shift in retail

Actively managing the mix, leasing to winners Category

Current mix

Future mix

Rent/sq ft

New leasing (1)

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%

8%

c.12%

c.£30/sq ft

24%

18%

c.20%

>£50/sq ft

31%

Leisure/events

6%

c.10%

c.£15/sq ft

14%

Fashion (aspirational)

4%

c.8%

>£30/sq ft

7%

100%

100%

High street fashion (contemporary) Non-fashion and consumer brands

1

UK flagship destinations 2018 new lettings

Near-term rental levels

100%

27

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%

28

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

2016/17

2006/7

0

20

1

40

60

80

100

YouTube vlogger James Charles at Bullring

Department for Digital, Culture, Media and Sport. Proportion of adults who participated in specific free time activities in the 12 months prior to interview, 2006/07 to 2016/17, England

29

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 Beef House Little Shop

Herman Ze German

30

Elevating experience

Creating a buzz: events people want to experience +£2m investment in experiential events in 2019

£10m online sales - 2019

Festival of Light at Westquay, Southampton

Transactional websites at Bullring and Westquay

1

Transactional websites allow shoppers to purchase online from tenants within our flagship destinations with access through the venue’s website

(1)

31

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 Bicester Village

0 2018

2025F

1

Source: 2018 Bain luxury goods study

32

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

Income £183.5m (2)

La Roca Village, Barcelona Las Rozas Village, Madrid Freeport Lisboa Fashion Outlet Mallorca Fashion Outlet Other

1 2

Top four Value Retail Villages and top two VIA Outlets based on brand mix Source: Cushman and Wakefield. Figures represent annualised base and turnover rent at 31 December 2018 at Hammerson’s ownership share

33

Thriving cities

We are in thriving cities Consumer spending and population growth forecast in Hammerson flagship locations

(1)

6%

London

Forecast population growth (2018-23), %

5%

Birmingham Ireland

4%

Leicester

3%

Southampton

Bristol

Dublin

Reading

Croydon

UK 2%

1%

France 0.7%

0% £10k

£15.1k

Leeds Glasgow

Marseille Paris

Nice £12k

£14k

£16k

£18k

£20k

£22k

£24k

£26k

Aberdeen

-1%

European average Country Benchmarks

-2%

Total consumer spending per capita (2018) 1

Source: Oxford Economics

34

Thriving cities

Development expertise in action: on-site at two French flagship destinations On-site schemes

Major developments Les 3 Fontaines, Cergy

Start on site Opening Cost to complete Pre-let

Les 3 Fontaines, Cergy

Italik, Paris

Jan 18

Jun 18

Q2 2021

Q2 2020

£145m

£22m

23%

34%

Italik, Paris

2018 progress Brent Cross Ongoing discussions with key stakeholders Reviewing optimum mix of uses Croydon CPO powers granted H2 2018

Future outlook Reviewing schemes to ensure they respond to changing retailer requirements and are appropriate for the future

35

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

Thriving cities

City Quarters: creating value today and tomorrow Short term opportunities

Residential building, Dundrum

Hotel, Victoria Leeds

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

Martineau Galleries, Birmingham

Key schemes include: Martineau Galleries, Birmingham Broadmead, Bristol Dublin Central Dundrum Phase 2

Victoria Phase 2, Leeds Existing land value £360m Current NRI £10m 37

Conclusion

38

A clear plan to create value

Build balance sheet strength

Continually evolve our spaces

Beyond retail

Shareholder returns

Reducing debt Exiting retail parks and pursuing portfolio-wide disposals

Repurposing retail space Enhancing experience with F&B, super events and digital

City Quarters beyond flagship destinations Vibrant neighbourhoods in thriving cities

39

Questions

40

Victoria, Leeds

Supplementary Appendices

41

Contents

01 02 03 04 05 06

Group UK flagship destinations France flagship destinations Ireland flagship destinations

Premium outlets UK retail parks 42

Westquay, Southampton

01

Group

43

£9.9 billion leading pan-European retail platform

54

European flagship destinations

14

countries

8% 9%

29%

Top 3

market position in all chosen sectors 25% 19% 10%

UK flagship destinations - £2.9bn France flagship destinations - £1.9bn Ireland flagship destinations - £1.0bn Premium outlets - £2.5bn UK retail parks - £0.9bn Development & UK other - £0.7bn

48%

non-UK assets

2.3m

m2 retail space

430m visitors

4,800 tenants

11 - UK flagship destinations 7 - France flagship destinations 3 - Ireland flagship destinations 13 - UK retail parks 20 - Premium Outlets

44

Appendices: Group

2018 Group leasing performance 2018 leasing and cumulative vs. 2017 and 2016 (£m) 5.0

35

4.5

30

4.0 25

3.5

3.0

20

2.5 15

2.0 1.5

10

1.0 5

0.5

Monthly leasing 2018 (LHS)

Cumulative leasing activity 2016 (RHS)

Cumulative leasing activity 2017 (RHS)

December

November

October

September

August

July

June

May

April

March

February

0 January

0.0

Cumulative leasing activity 2018 (RHS)

45

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

UK flagship destinations

France flagship destinations

Ireland flagship destinations

UK retail parks

December

November

October

September

August

July

June

May

April

March

February

January

0.0

UK other

46

Appendices: Group

2018 portfolio leasing overview Leasing vs previous passing (%)

Leasing vs ERV (%)

Like-for-like ERV growth (%)

New rent secured 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 retail parks

+19

+11

–2.7

2.4

+5

+6

–0.9

Group

1

Including UK Other properties (principally assets held for development and non-core)

27.7

(1)

47

Appendices: Group

2018 administrations and CVAs UK France Ireland UK flagship flagship flagship retail parks destinations destinations destinations

UK other interests

Group

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 total units occupied

40

23

-

12

6

81

1.8%

0.7%

-

0.5%

0.2%

3.2%

3.0

1.0

0.2

2.8

0.1

7.1

0.9%

0.3%

-

0.8%

-

2.0%

Admin/CVA % of Group passing rent at Dec 18 NRI impact – FY 2018 (£m) FY 2018 impact (% passing rent)

Note: 50 units in administration at 31 December 2017 (0.9% group passing rent). 41 of these units were occupied (0.8% group passing rent)

48

Appendices: Group

2018 operational statistics UK flagship destinations

Sales

(1)

Footfall

(2)

Rent:sales OCR

(3)

(3)

Sales densities

France flagship destinations

UK £/ft2

(4)

France (5) £/ft2

–2.9%

+2.2%

2018

235 – 496

356– 490

–1.8%

+2.5%

2017

240 – 490

402 – 500

13.3%

10.7%

2016

250 – 515

350 – 562

22.6%

13.7%

Occupancy (%)

UK flagship destinations

France flagship destinations

Ireland flagship destinations

UK retail parks

Group

31 December 2018

97.6

97.1

99.0

96.9

97.2

30 June 2018

97.2

97.1

98.9

94.5

96.6

31 December 2017

98.1

97.9

99.7

99.4

98.3

1 2 3 4 5

Sales: 2018 UK benchmark –2.7% (Source: BDO); 2018 France benchmark -1.8% (Source: CNCC, as at Dec 2018) Retail sales on same-centre basis Footfall: 2018 UK benchmark -3.5% (Source: Tyco Shoppertrak); 2018 France benchmark -1.7% (Source: CNCC) Excludes anchor stores. French data includes VAT (rent:sales and OCR), excludes Les 3 Fontaines, Cergy Excludes anchor stores. French data includes VAT French data restated to exclude Les 3 Fontaines, Cergy, due to redevelpment

49

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

Innovative retail technology

Engaging events

Enhanced services

Flexible construction

Operational efficiency

Surprise & delight

Sensory experience

Positive for the environment | Positive for the community 50

Appendices: Group

2018 components of valuation change Components of valuation change in 2018, total portfolio (£m) 100 5

19

2

0 -8

-8

-14

9

16

40

56 2

-10

-26

-73

-100

39

34 30

-2

-6 -46

-98 -126

-200

-300

-279 -347

-400

-385

-392

-500 UK flagship destinations

Yield

Income

France flagship destinations

Ireland flagship destinations

Development and other (1) 1

Premium outlets

UK retail parks

Developments and other

Group

Total

Development and other includes the movement in the UK Other interests portfolio where valuations increased by a total of £7m and Developments which increased by £23m during 2018. Other capital movements reflect the impact of changes in purchasers’ costs, development surpluses and capital expenditure

51

Appendices: Group

2018 valuation data UK flagship destinations

France flagship destinations

Ireland flagship destinations

UK retail parks

UK other interests

Total portfolio

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

+80

+30

31 Dec 2018

169.3

89.3

45.3

59.7

13.3

376.9

31 Dec 2017

186.7

91.7

43.3

75.4

14.1

411.2

–2.0

0.5

2.8

–2.7

0.3

–0.9

ERV (£m)

LfL change (%)

52

Appendices: Group

Key disposals achieved 2016 - 2018 2016 : average -2% below book value

Proceeds (1) £m

Monument Mall, Newcastle

75

Buyer

Standard Life

Villebon 2, Villebon-sur-Yvette

132

French Institution

Thurrock Shopping Park

100

TH Real Estate

Manor Walks shopping centre, Cramlington

78

Arch (local authority)

Westmoreland retail park, Cramlington

36

Arch (local authority)

Grand Central, Birmingham (50%)

175

Westquay South, Southampton (50%)

47

CPPIB GIC

2017: average -3% below book value Westwood and Westwood Gateway Retail Parks, Thanet

80

BMO (private equity)

Saint Sébastien, Nancy(2)

140

AEW (private equity)

Place des Halles, Strasbourg

167

Greenstone Oxford Limited

2018: average -7% below BV Battery Retail Park, Selly Oak

58

NFU Mutual

Wrekin Retail Park, Telford

35

Ediston/Europa

Imperial Retail Park, Bristol/Fife Central Retail Park, Kirkcaldy

164

Capreon (private equity)

Highcross, Leicester (50%)

236

Asian investor, introduced by M&G Real Estate

Total 2016 – 2018

£1.6bn

(2)

1 2

Gross proceeds Total annual gross proceeds: 2016 - £651m; 2017 - £402m; 2018 - £570m

53

Appendices: Group

On-site and recently completed developments On-site developments

Italik, Italie Deux extension, Paris Les 3 Fontaines extension, Paris

Total

Lettable area m2

Expected completion

Value 31 Dec 2018 £m

Estimated cost to complete (2) £m

Estimated annual income (3) £m

6,400

Q2 2020

22

22

2

34

44,300

Q2 2021

194

145

16

23

216

167

18

50,700

Recently completed developments Parc Tawe redevelopment, Swansea Orchard centre extension, Didcot

Total

1 2 3 4 5

Total development cost (2) £m

21,400

Feb 2018

16

2

67

8,700

Mar 2018

44

3

76

60

5

Group ownership 100% for all on-site schemes Incremental capital cost including capitalised interest Incremental income net of head rents and after expiry of rent-free periods Estimated rental value as per the Group’s valuers at 31 December 2018 Let or in solicitors' hands by income at 22 February 2019

Let

%

Completed

(4)

£m

(5)

Lettable area m2

30,100

ERV

Let

(5)

%

54

Appendices: Group

Debt maturity profile Debt maturity profile 31 December 2018 (£m) 900 800 700 600

Revolving credit facilities

Private placement Sterling bonds Euro bonds

500

400 300

Secured debt 200 100

0 2019

2020

2021

2022

Note: Proportionally consolidated, excluding premium outlets

2023

2024

2025

2026

2027

2028

2029

2030

2031

55

Appendices: Group

LTV methodology 31 December 2018 Headline (£m)

Fully proportionally consolidated (£m)

3,406

3,406

VIA Outlets

-

242

Value Retail

-

658

3,406

4,306

7,480

7,480

VIA Outlets

-

636

Value Retail

-

1,823

326

-

Value Retail net assets

1,211

-

Value

9,017

9,939

38%

43%

Net debt Group

Loan Property values Group

VIA Outlets net assets

LTV

56

Appendices: Group

Gearing sensitivity

Disposals (£m)

Reduction in Group values (1)

0

100

200

300

400

(2)

500

600

700

800

900

1000

0%

63%

61%

59%

57%

55%

54%

52%

50%

48%

46%

44%

5%

69%

67%

65%

63%

61%

59%

57%

55%

53%

51%

49%

10%

77%

74%

72%

70%

68%

65%

63%

61%

59%

56%

54%

15%

86%

84%

81%

79%

76%

74%

71%

69%

66%

64%

61%

20%

99%

96%

93%

90%

87%

84%

81%

79%

76%

73%

70%

25%

116%

112%

109%

105%

102%

99%

95%

92%

88%

85%

82%

Gearing covenant 150%

1 2 3

(3)

Gearing sensitivity on changes in December 2018 values and future disposal proceeds. Values on a proportionally consolidated basis including premium outlets Calculations assume disposals are achieved at December 2018 book values Group’s tightest gearing covenant on unsecured bank facilities and private placement senior notes

57

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

£5.7m p.a. of cost savings delivered in 2018

Operational £2.7m

Board and management £2.7m

£4m p.a. Technology and innovation £2m

Super events £2m

58

Our Sustainability Vision: To create retail destinations that deliver positive impacts economically, socially and environmentally

Positive Places is our strategy for making that happen

2018 Materiality Review We regularly review our sustainability strategy with key stakeholders to ensure we stay focused on the most relevant issues for our business and stakeholders. Following our 2018 review, our material sustainability issues and response to them are as follows:

Material Issues

Our Response

Governance and Reporting

Comprehensive, sector leading sustainability reporting

Energy demand and security of supply Materials use and waste management Climate risk Sustainability of our product Community engagement Building certifications Placemaking

Clear focus on energy demand management Net Positive targets for carbon emissions, water and resource use Portfolio wide climate risk review completed Driving operational excellence in the environmental performance of our assets Extensive, locally focused community engagement programme Positive Places thinking underpinning our City Quarters concept to deliver best in class placemaking

59

Our achievements in 2018 11% reduction in energy demand £790k energy costs savings for retailers and JV

Delivering against our Positive Places Strategy

partners 11% reduction in carbon emissions across UK,

Ire and France portfolios Completed climate risk study for the managed retail portfolio using 2030 & 2050 scenarios Generated 450mWh clean electricity

Installed smart metering at nine sites to enable daily energy monitoring Recycled of 75% of operational waste across the portfolio 100% diversion of waste from landfill at 18 of 25 directly managed centres. £1.7 million+ invested in work with 452 community groups and organisations. Supporting 150+ business start-ups with PopUp Business and Initiative France

Our plans for 2019 Reducing energy demand across the managed retail portfolio by a further 11% Installing additional renewable electricity capacity at three sites Reviewing our energy procurement model to leverage additional renewable capacity and offer grid balancing Working with retailers to support efficiency improvements through fit out Embedding Positive Places within City Quarters concept

Working with our design teams to deliver best in class sustainability in our Dublin developments Working with regional water companies to support water reduction initiatives Working with re-use partners to reduce waste Continuing our programme of portfolio-wide, locally focused community engagement initiatives 60

Hammerson has set a target to be Net Positive for carbon, water, resource use and socio-economic impacts by 2030

“Hammerson was the first real estate company globally to set such comprehensive, challenging Net Positive targets and we are making good progress. Creating Positive Places underpins our delivery of best in class retail assets that respond to the major challenge presented by climate change.” David Atkins, CEO

Carbon

Resource Use

Net Positive for carbon means carbon emissions avoided exceed emissions generated.

Net Positive for resource use means waste avoided, recycled or re-used exceeds materials used that are neither recycled, renewable nor sent to landfill.

Water

Resource Use

Net Positive for water means water replenished by external projects exceeds water consumed from mains supply.

Net Positive for socio-economic impacts means making a measurable positive impact on socio-economic issues relevant to our local communities beyond a measured baseline. 61

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 539,082

m3

2016

water

18,243 tonnes waste not recycled or reused

24,000 tonnes CO2e 511,888

m3

2017

water

17,293 tonnes waste not recycled or reused

Delivered carbon neutral development at Rugby

40,000 FTE jobs supported Installed 3 further solar PV across our assets arrays

2018 32% reduction in phase 1 NP Carbon footprint

Reduce energy demand by 23 tonnes CO2e savings further 8% v 2015 baseline from EV charging Achieved 73% recycling rate and reduced net operational resource use from 3,000 tonnes to1,200 tonnes

Generated 450mWh clean power

4 additional PV arrays installed

2019-2021 Landlord CO2 e reductions optimised and offset opportunities in place for remainder Energy procurement model

16% reduction in phase 1 driving additional NP water demand renewable capacity 34% reduction in Phase 1 Net positive approach NP resource use footprint 150+ business start ups supported

embedded City Quarters Increase onsite renewable and EV capacity Improve energy efficiency of retail units

62

Westquay, Southampton

02

UK flagship destinations

63

Appendices: UK flagship destinations

2018 operational update

UK flagship destinations

UK flagship destinations

2018

2017

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

−2.9

−2.7

−1.8

+0.4

In-store retail sales (%) Footfall (%)

(1)

(2)

1 2

Sales: 2018 UK benchmark –2.7% (Source: BDO) Retail sales on same-centre basis Footfall: 2018 UK benchmark -3.5% (Source: Tyco Shoppertrak)

11

64

Appendices: UK flagship destinations

2018 UK flagship leasing performance 2018 leasing and cumulative vs. 2017 and 2016 (£m) 3.5

16

3.0

14 12

2.5

10 2.0

8

2018 leasing £m Principal leasing

8.6

Reconfigurations

3.7

Temporary and other

2.1

Total

14.4

1.5 6

UK flagship leasing key facts

1.0

4

Leasing vs. Dec 17 ERV +5%

0.5

2

Monthly leasing 2018 (LHS) Cumulative leasing activity 2017 (RHS)

1

December

November

October

September

August

July

June

May

April

March

February

0 January

0.0

Leasing vs. previous passing +1% Average lease term: 11 years Average incentive: 7 months

(1)

(1)

Cumulative leasing activity 2016 (RHS) Cumulative leasing activity 2018 (RHS)

New permanent lettings only. 2017: average lease term 11 years; average incentive 8 months

65

Appendices: UK flagship destinations

Profile of leasing at UK flagships 60% of total leasing to principal lettings Principal lettings vs ERV (%) 100%

26% to reconfigured space Drives income Rebases value Next, Oracle

80% 60% 40% 20% 0% -20%

14% to short term/pop ups Trial new concepts Enliven space Contribute to NRI but rents below ERV Mercedes, Highcross

-40% -60%

66

Appendices: UK flagship destinations

UK flagship destinations leasing vs. previous passing rent Principal lettings vs previous passing rent (%) 120%

100%

71% leases at or above previous passing

80%

60%

40%

20%

0%

-20%

-40%

-60%

67

Appendices: UK flagship destinations

Leasing to quality operators in 2018 Digital brands and direct to consumer

Personal luxuries

Fashion – aspirational

F&B and leisure

68

Appendices: UK flagship destinations

Continued leasing demand in F&B Key leasing deals

2018 F&B leasing (£000) 2017

1000

2018

Coffee and Grab & Go

Fast Casual

Oracle

Dundrum

Renewal +11% uplift

New unit +104% vs ERV

Mid Market

Other

Highcross

Union Square

Former House of Fraser

Former Byron unit

Rent +630%

-28% below previous rent

900

+38% YoY 800 700

600 500 400

300 200 100

0 Coffee and Grab & Go

Fast casual

Mid market

1

Other

(1)

Other includes bars and restaurants, and premium dining categories

69

Appendices: UK flagship destinations

Exposure to department stores Hammerson exposure to department stores in UK Number of stores

(‘000 sq ft)

Harvey Nichols

2

85

Selfridges

1

260

John Lewis

5

1,230

Marks & Spencer

4

305

Fenwick

1

175

Debenhams

5

805

House of Fraser

3

490

21

3,350

Total

Floorspace

John Lewis, Grand Central, Birmingham

Hammerson sales growth

+ve

-ve

70

Proactively reconfiguring department store space

Upsized Zara store now trading

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 parking Advanced negotiations underway with F&B operator Additional £1.5m of rental income £17m project cost 71

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

Les Terrasses du Port, Marseille

03

France flagship destinations

73

Appendices: France flagship destinations

2018 operational update

France flagship destinations 2018

2017

−0.9

+2.6

97.1

97.9

Leasing activity (£m)

7.3

9.8

Leasing vs. ERV (%)

+5

+5

Leasing vs. previous passing (%)

+5

+8

+2.2

+0.1

+2.5

+1.6

LfL NRI (%) Occupancy (%)

In-store retail sales (%) Footfall (%)

(1)

(2)

France flagship destinations

7

1 2

Sales: 2018 France benchmark -1.8% (Source: CNCC, as at Dec 2018)Retail sales on same-centre basis Footfall: 2018 France benchmark -1.7% (Source: CNCC)

74

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 Les Terrasses du Port Italie Deux

Transforming the centre into a cultural destination

Les 3 Fontaines

Italik extension launched in Jun-18

Other

Largest three assets 89% of portfolio

(1)

Les 3 Fontaines, Cergy Major 44,300m2 extension started in Jan-18 23% pre-let

1

Les Terrasses du Port, Les 3 Fontaines, Italie Deux; by value at 31 December 2018

75

Appendices: France flagship destinations

Differentiation between categories and brands in France Sales 2018

Hammerson +2.2% Index -1.8% (1) Footfall 2018

Hammerson flagship destination category sales and range, France 45% 35% 25%

Hammerson +2.5% Index -1.7% (2)

15% 5%

5.0%

2.7%

0.6%

0.5% -0.6%

-5%

-1.0%

-1.5%

-2.1%

-2.4%

Jewellery & personal luxuries

Dept. store (mainstream)

Leisure

-2.7%

-3.3%

-15% -25% -35% -45% Sportswear

1 2

Fashion Health (aspirational) & beauty

Dept. store (aspirational)

Home, consumer brands & gifts

F&B

Sales: 2018 France benchmark -1.8% (Source: CNCC, as at Dec 2018) Retail sales on same-centre basis Footfall: 2018 France benchmark -1.7% (Source: CNCC)

High High street street fashion fashion (contemporary) (traditional)

76

Appendices: France flagship destinations

2018 leasing performance

2018 leasing and cumulative vs. 2017 and 2016 (£m) 2.5

2018 leasing £m

12

10

2.0

8 1.5

6

Principal leasing

5.5

Reconfigurations

1.4

Temporary and other

0.4

Total

7.3

1.0

0.5

France flagship leasing key facts

2

Leasing vs. Dec 17 ERV +5%

Monthly leasing 2018 (LHS) Cumulative leasing activity 2017 (RHS)

1

December

November

October

September

August

July

June

May

April

March

February

0 January

0.0

4

Leasing vs. previous passing +5% Average lease term: 10 years Average incentive: 3 months

(1)

(1)

Cumulative leasing activity 2016 (RHS) Cumulative leasing activity 2018 (RHS)

New permanent leasing only. 2017: average lease term 10 years; average incentive 3 months

77

Dundrum, Dublin

04

Ireland flagship destinations

78

Appendices: Ireland flagship destinations

2018 operational update

Dundrum: repurposing retail space to F&B

Ireland flagship destinations 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 former Hamleys store Extended and repurposed into 5,220 sq m of catering and leisure space

Rental uplift from €20/sq ft to €37/sq ft Cost €14.8m Value uplift €21.1m YOC 7.9% 79

Appendices: Ireland flagship destinations

2.2m sq ft of prime space and sustainable development opportunities Contracted rent 11%

Hammerson portfolio

(2)

Hammerson / Allianz 50:50 JV

5%

18% 66%

Dundrum Town Centre

Dundrum Phase 2 Development Site

Dundrum

Swords Pavilions Ilac Shopping Centre Other (inc. Dublin Central)

Total rent: €51m (£45m)

(1)

The Pavilions, Swords 1 2 3 4

(3)

The Ilac Centre

(4)

Hammerson share at 31 December 2018 Hammerson portfolio participation under 50:50 Allianz joint venture structure 50% co-ownership with IPUT (25%) and Irish Life (25%). Development site 100% Hammerson 50% co-ownership with Irish Life (50%)

Dublin Central Development Site (100%) 80

Appendices: Ireland flagship destinations

Platform encompasses key retail centres in Dublin

81

Appendices: Ireland flagship destinations

Progress with ERV uplift at Dundrum Uplift in Dundrum ERV since ownership

Dundrum, Dublin

(1)

c.€90m

+17% €11m €65m

Acquisition ERV July 2016

Uplift at Dec 2018

Expected growth 2019-2021

Forecast 2021 ERV

On track with targeted 4-5% ERV CAGR 1

Dundrum ERV 100%

82

Bicester Village, Oxfordshire

05

Premium outlets

83

Appendices: Premium outlets

2018 operational update Value Retail (1)

Brand sales (€m)

(2)

Brand sales growth (%) Footfall (m)

(3)

(2)

Average spend per visit (€)

(2)

Average sales density growth (%)

(3)

Like-for-like net rental income growth (%) Occupancy (%)

(5)

1 2 3 4 5

(4)

VIA Outlets

(1)

2018

2017

2018

2017

2,903

2,693

1,071

930

8

8

9

13

36.8

35.4

30.3

28.3

79

76

35

33

4

5

5

10

4

14

10

5

97

95

92

91

With the exception of LfL net rental income growth, figures reflect overall portfolio performance, not Hammerson’s ownership share. 2017 figures have been restated at 31 December 2018 exchange rates Figures include acquired assets from the acquisition date. 2017 VIA Outlets figures have been restated to reflect more accurate footfall data and include Zweibrücken Fashion Outlet from the acquisition date Figures include assets owned for 24 months LfL NRI growth now excludes the impact of extensions and re-modellings. VIA Outlets 2017 LfL NRI has been restated for a foreign exchange correction (-4% impact to 2017 LfL NRI) 2017 VIA Outlets figures have been restated to reflect spot occupancy rather than assets owned for 12 months

84

Appendices: Premium outlets

Expanding outlets through extensions and remodelling Hede Fashion Outlet, Gothenburg

La Roca Village, Barcelona

Kildare Village, 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 (total development cost) at 100%

85

Premium outlets portfolio Value Retail Villages

VIA Outlets centres

Bicester Village, Oxford GLA: 28,000m2 Boutiques: 161

Batavia Stad Amsterdam Fashion Outlet GLA: 30,900m2 Units: 130

La Roca Village, Barcelona GLA: 23,400m2 Boutiques: 135 Las Rozas Village, Madrid GLA: 16,500m2 Boutiques: 98 La Vallée Village, Paris GLA: 21,900m2 Boutiques: 106 Maasmechelen Village, Brussels GLA: 19,800m2 Boutiques: 97 Fidenza Village, Milan GLA: 20,900m2 Boutiques: 120 Wertheim Village, Frankfurt GLA: 21,200m2 Boutiques: 113 Ingolstadt Village, Munich GLA: 21,100m2 Boutiques: 113 Kildare Village, Dublin GLA: 16,700m2 Boutiques: 98

Fashion Arena Prague Outlet GLA: 24,100m2 Units: 99 Landquart Fashion Outlet, Zürich GLA: 21,100m2 Units: 79 Freeport Lisboa Fashion Outlet GLA: 36,500m2 Units: 119 Hede Fashion Outlet, Gothenburg GLA: 16,100m2 Units: 52 Mallorca Fashion Outlet GLA: 30,500m2 Units: 78 Wroclaw Fashion Outlet, Poland GLA: 13,700m2 Units: 88 Seville Fashion Outlet GLA: 15,800m2 Units: 64 Zweibrücken Fashion Outlet, Germany GLA: 29,100m2 Units: 114 Vila do Conde Porto Fashion Outlet GLA: 27,800m2 Units: 117 Norwegian Outlet, Oslo GLA: 13,300m2 Units: 96

86

Appendices: Premium outlets

Hammerson’s total investment in Value Retail

Holding companies 25% equity Bicester Village

La Roca Village

Las Rozas Village

La Vallée Village

Maasmechelen Village

Fidenza Village

Wertheim Village

Ingolstadt Village

Kildare Village

37

29

25

14

14

22

33

2

28

50

41

37

26

27

34

45

15

41

Village ownership via LPs (%) Total Village ownership (%) (1)

1

Total Village ownership calculated as economic entitlement of directly held and indirectly held interests

87

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 (%) (1)

CAGR 20142018

+3%

+13%

South and East Asia

+15%

+15%

Gulf/Middle East

+10%

+8%

-5%

-8%

India

+18%

+33%

USA

+32%

+27%

+10%

+11%

+7%

+12%

Greater China 19.8%

1.8% 3.5%

45.9%

4.4% 10.2% 14.5%

Russia

Other

(2)

Total European benchmark

(1)

-4%

Outperformance due to enhanced international marketing strategy, an appealing and comprehensive brand offer and a best-in-class hospitality management

1 2

Source: Global Blue, (Value Retail Villages and European Snapshot December 2018) Other includes countries which are not in the top 15

88

Birmingham City Centre

06

City Quarters

89

Appendices: City Quarters

Short to medium term concepts Ladywood House Birmingham

Victoria hotel Leeds

Dundrum residential Dublin

9,400m2 vacant office

Under offer with international hotel operator

Opportunity to develop 100 unit residential scheme adjacent to Dundrum

Opportunity to develop 200 bed hotel

Strong local PRS market

Adjacent to Victoria Gate, Leeds

Target planning permission Q4 2019

Will complement existing offer and drive evening economy

Phase one of 600 unit opportunity at Dundrum

c.£28m development cost

Will drive additional retail and leisure spend at Dundrum

Opportunity to upgrade to modern workspace City centre hub with leading retail and leisure adjacencies Will drive footfall and spend into the Bullring Estate Forecast development cost £24m

(1)

Forecast development cost £17.5m (1)

Target YOC 5-6% 1

At Hammerson share

90

Appendices: City Quarters

The City Quarters opportunity

Major

Strategic

Near term

Key schemes

Area

Next Start on planning site submission

Retail

F&B

Residential

Workspace

Leisure





Les 3 Fontaines, Cergy

8,500m2

n/a

On site

Citywall House, Southampton

2,800m2

2019

Q2 2020

10,000m2

2019

Q2 2020

Victoria Hotel, Leeds

8,400m2

2019

Q2 2020

Ladywood House, Birmingham

9,400m2

2019

Q2 2020

Martineau Galleries, Birmingham

7 acres

2019







Dundrum Phase 2

5 acres

2020







Broadmead, Bristol

9 acres

2020









Dublin Central

6 acres

2021









Pavilions Phase 3, Swords

13 acres

2021







Victoria Phase 2, Leeds

10 acres

2021











Brent Cross

15 acres

n/a











Croydon

22 acres

n/a







Bishopsgate Goodsyard, London

10 acres

2019







Dundrum Building 5, Dublin

TOTAL



Education

Culture

Hotel

Public spaces

  

 



























 





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





 



 

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

97 acres

91

Elliott’s Field Shopping Park, Rugby

07

UK retail parks

92

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

−1.3

−0.4

Footfall (%)

(1)

1

Footfall: 2018 UK benchmark -0.5% (Source: Springboard Retail Parks index)

93

Appendices: UK retail parks

UK retail parks market split and Hammerson ownership Shopping parks

Hybrid parks

Key homeware goods parks

Standard homeware parks

Solus units

Higher rental growth segments

Higher rental growth

UK retail parks market

Hammerson portfolio

(1)

Shopping parks Hybrid parks

58%

92%

Key homeware goods Standard homeware Solus 1

Source: MSCI. Market and portfolio split by number of parks

94

Appendices: UK retail parks

Retail park disposals 2016 to 2018 2016: average 7% below BV

Proceeds (1) £m

Thurrock Shopping Park, Thurrock Fir Lane, Folkestone

100 7

(2)

Buyer TH Real Estate The Drapers Company

Cramlington Retail Park, Cramlington

78

Arch (local authority)

Westmorland Retail Park, Cramlington

36

Arch (local authority)

80

BMO (private equity)

2017:

average -3% below BV

Thanet Retail Parks, Kent Avenue Retail Park, Cardiff

6

(2)

Greenstone Oxford Limited

2018: average -7% below BV Battery Retail Park, Selly Oak

58

NFU Mutual

Wrekin Retail Park, Telford

35

Ediston/Europa

Imperial Retail Park, Bristol/Fife Central Retail Park, Kirkcaldy

Total 2016 – 2018

164

Capreon (private equity)

£564m

1

Gross proceeds

95