Slide 1: Thriving cities. Landmark destinations. Driving growth. 2024 Full Year Results
Thriving cities. Landmark destinations. Driving growth. 2024 Full Year Results 26 February 2025 SIDEMEN LAUNCH: BULLRING
Slide 2: A transformative and successful year
A transformative and successful year Strong 2024 performance • Debt reduced by 40%; LTV 30% • Capital rapidly recycled to Westquay at attractive yield - more to come • Record leasing performance: 262 leases; £41m; +56% ahead of previous passing; +13% over ERV • Vacancy reduced to <5%, creating real
Slide 3: All our destinations are in the Top 20 retail venues
All our destinations are in the Top 20 retail venues Our footprint Portfolio and platform realigned to 10 landmark destinations • c.80 acres of strategic land; potential for c.7,000 residential units • A specialist, data and insights-driven platform with unique expertise Swords Pavilions & land Ilac
Slide 4: Outlook
Outlook 2024: Transformative and successful 2025: Strong momentum; we are well positioned to drive rental and underlying earnings growth off our new base • Entry run rate of £85m adjusted earnings adjusting for 2024 disposals and acquisitions • Anticipate growth off this base from ongoing investment
Slide 5: Transformed financial profile: 2024 Financials
Transformed financial profile 2024 Financials 5 PADDINGTON IN PERU: WESTQUAY
Slide 6: Financial highlights
Financial highlights 31 Dec 2024 31 Dec 2023 P&L Gross rental income change (like-for-like)(1) 1.6% 5.5% Net rental income change (like-for-like)(1)(2) (0.5)% 3.6% Gross to net(1) 77% 80% Adjusted earnings £99m £116m Adjusted earnings per share 19.9p 23.4p(3) IFRS loss £(526)m £(51)m Cash dividend p
Slide 7: Adjusted earnings
Adjusted earnings Westquay Gross Income 10 Outlet 2 8 (21) acquisition admin earnings Cost 4 Disposals Non-LfL (4) Property (3) (16) NRI & mgt (4) FX (3) fees (12) 14 (2) (24) (1) 10 (5) 4 116 99 85 75.0 £m FY23 Disposals Value LFL Non-LFL Net Net finance Tax FY24 FY24 Westquay FY24 earnings NRI Ret
Slide 8: NTA per share
NTA per share Impairment (111) Revaluation (5) Revaluation (18) 20 Loss on FX (3) (2) (116) disposal Share 1 buyback (20) (15) (5) (2) 508 370 Pence (1) FY23 Adjusted Disposal of Revaluation & Dividends Premium on bond FX & other FY24 earnings Value Retail disposal losses repurchase 1. FY23 restated
Slide 9: Valuations
Valuations Value Valuation ERV NEY 5 year Yield FY24 change change range % swap %(2) spread £m(1) LfL % LfL % bps UK 915 4.2 2.3 7.3 – 8.9 3.9 c.340 France 964 1.5 1.9 5.0 - 5.2 2.2 c.260 Ireland 522 (13.3) 0.8 6.6 – 7.1 2.2 c.440 Total flagships 2,401 (1.5) 1.8 n/a n/a n/a Developments and 258 (6.6
Slide 10: Improved capital structure, benefiting from proactive refinancing
Improved capital structure, benefiting from proactive refinancing January: Repaid £109m of maturing private placement senior notes FY24 FY23 March: Moody’s changed Hammerson’s outlook to positive Net debt £799m £1,326m March: Undrawn £463m RCF maturity extended to 2027 Net debt:EBITDA 5.8x 8.0x Augu
Slide 11: Group maturity extended – 2025 and 2026 covered by cash
Group maturity extended – 2025 and 2026 covered by cash FY23 Group debt maturity FY24 Group debt maturity £m £m Secured Debt Private Placements 2025 & 2026 cash Sterling Bonds covered, with Euro Bonds positive return 601 11 574 260 61 292 392 337 338 211 58 11 141 109 5 43 56 1 5 2024 2025 2026 2027
Slide 12: FY25 modelling assumptions
FY25 modelling assumptions Adjusted • 2024 adjusted earnings £99m, rebased to an exit run rate of £85m: earnings • Excluding 2024 disposals • Including full year benefit of the Westquay acquisition • Anticipate growth off this base from ongoing investments in portfolio/acquisitions Capex • Expenditu
Slide 13: Investing for growth: A new chapter
Investing for growth A new chapter TEAM GB FAN ZONE: CABOT CIRCUS
Slide 14: The next chapter
The next chapter 2024: Transformative and successful 2025: Strong momentum; we are well positioned to drive rental and underlying earnings growth off our new base 2026: Further earnings growth from full run rate of investments Strong track record gives us confidence: • Consistent strategic execution
Slide 15: Consistent track record; confidence in generating future growth
Consistent track record; confidence in generating future growth Portfolio realigned to core city destinations • £950m of asset disposal proceeds since FY20 • £595m proceeds from Value Retail: 24x EV/EBITDA; 3.4% exit cash yield • Capital rapidly recycled into Westquay at a far more attractive yield
Slide 16: Drivers of medium term earnings growth
Drivers of medium term earnings growth JV consolidation Lean and 5 scalable Acquisitions Medium Term Financial Framework platform driving 1 Asset repositioning operational gearing GRI growth: 4-6% CAGR 2 Targeted leasing 3 Placemaking & events EPS growth: 6-8% CAGR 6 Unrealised 4 New income streams
Slide 17: Asset repositioning: next phases at Dundrum and Bullring
1 Asset repositioning: next phases at Dundrum and Bullring Dundrum: reasserted as market leader Additional €45m of rent to first break contracted in 2024 of capex spend of €2.2m, totalling €115m Invested: €31m from 2019 to 2023 contracted rent off €33m of investment Generated: €70m of contracted ren
Slide 18: Asset repositioning: Cabot Circus and The Oracle underway
1 Asset repositioning: Cabot Circus and The Oracle underway Cabot Circus: exciting year ahead Attracting existing and new brand partners: £8m invested in 2024 Embedding Cabot Circus as a top tier retail, F&B, and lifestyle destination £43m of rent contracted to first break Potential to commence Quak
Slide 19: Targeted leasing to curate the mix
2 Targeted leasing to curate the mix Offering the right product to our brand partners and catering to the tastes and needs of our local communities 45% Leading global and domestic fashion 37% Non-fashion and services 15% Grocery, F&B and leisure 19
Slide 20: Placemaking and events: experience and incremental income
3 Placemaking and events: experience and incremental income Increased engagement across all The Olympic flame came to Les “Total domination” marketing package, channels Terrasses du Port with Sephora taking over Bullring for six weeks • Social media followers +16% • Boosting same day footfall by 40%
Slide 21: Investment in data unlocking new revenue streams
4 Investment in data unlocking “It’s been a long road leading up to the amazing launch event… in the Bullring. new revenue streams This event was by far the smoothest and most fun of any launch event we’ve run. Everyone was 100% on point from start to finish. Investment in data & insights: The YouTu
Slide 22: Acquisitions to supplement organic growth
5 Acquisitions to supplement organic growth 100% control of Westquay in November 2024: £135m Range of opportunities for accretive deployment of capital Key occupiers: 1. Remaining indicative opportunity set of £450-500m of JV acquisitions 2. Continue to scan the horizon for any outstanding opportuni
Slide 23: Indicative scale & impact
6 Creating optionality and flexibility on compelling pipeline GDV c.£100m GDV c.£175m GDV c.£470m GDV c.£4.4bn The Goodsyard Brent Cross regeneration (mixed use) (mixed use) Martineau Galleries (mixed use) Near term Indicative scale & impact Estimated capex committed capex Eastgate, Bristol c.£55m c
Slide 24: Our priority is growth
Our priority is growth 2024: Transformative and successful 2025: Strong momentum; we are well positioned to drive rental and underlying earnings growth off our new base 2026: Further earnings growth from full run rate investments • The right assets • The right platform & team • The right balance she
Slide 25: Q&A
IL im HAMMERSON Q&A
Slide 26: Important Notice
Important Notice The information contained in this presentation is for background purposes and does not purport to be full or complete. No reliance may or should be placed by any person for any purpose whatsoever on the information contained in this presentation or on its completeness, accuracy or f
Slide 27: Additional disclosures
Additional disclosures SEPHORA ‘DOMINATION’: BULLRING
Slide 28: ESG is core to our identity
ESG is core to our identity Environment • Progressing Net Zero Asset Plans (NZAPs) with a focus on early delivery and innovation to maximise returns -8% FY24 YoY • Reduced CO2 emissions: -43% FY24 vs FY19 • Physical Climate Risk Reviews and Nature Assets Plans (NAPs) were revised/completed in 2024 S
Slide 29: Macro-economic indicators
Macro-economic indicators Interest rate forecasts(1) CPI inflation forecasts(1) Interest rates falling but not to pre-Covid levels CPI to fall back to target levels 2022 2023 2024 2025 2026 2027 2022 2023 2024 2025 2026 2027 UK 3.50 5.25 4.75 3.75 3.00 2.50 UK 9.1 7.3 2.5 3.0 2.5 2.1 Eurozone 2.5 4.
Slide 30: FY25 modelling assumptions
FY25 modelling assumptions Adjusted earnings • 2024 adjusted earnings £99m, rebased to an exit run rate of £85m: • Excluding 2024 disposals • Including full year benefit of the Westquay acquisition • Anticipate growth off this base from ongoing investments in portfolio/acquisitions GRI • Underlying
Slide 31: Valuations
Valuations Value Total Income Capital Yield ERV Devlp & NEY 5 year FY24 £m(1) property return % return % impact % impact % other range % swap(2) return % impact % UK 915 8.6 7.9 0.8 0.2 0.5 n/a 7.3 – 8.9 3.9 France 964 4.7 4.5 0.5 0.0 0.1 n/a 5.0 - 5.2 2.2 Ireland 522 (8.1) 6.0 (13.4) (13.0) (0.4) n
Slide 32: Capex assumptions
Capex assumptions 2025 2026 2027 + Scope/examples £m £m Funding assumptions CORE CAPEX: Balance sheet - opportunity Repositioning e.g. Cabot Circus, The Oracle c.30 c.25 and return dependent e.g. Enhanced public realm, ESG, leasing, FFO Asset enhancement & placemaking maintenance of landlord areas c
Slide 33: Returns and yields by geography
Returns and yields by geography UK flagships France flagships Ireland flagships 8% 8% 8% 6% 6% 6% Yield (NEY) 4% 4% 4% 5.0% 4.3% 4.3% 2% 2% 2% 0% 0% 0% 2018 2019 2020 2021 2022 2023 2024 2018 2019 2020 2021 2022 2023 2024 2018 2019 2020 2021 2022 2023 2024 100% 100% 100% ERV (100% at peak) 90% 90% 9
Slide 34: Like-for-like GRI & NRI analysis (FY24 YoY) – Flagships only
Like-for-like GRI & NRI analysis (FY24 YoY) – Flagships only -3% -2% -1% 0% 1% 2% 3% Average occupancy Base rent Indexation Variable Other GRI GRItotal totalLfL LfL 1.6% Bad debt Void and other unrecovered costs Car park & Commercialisation costs Letting fees TI impairment Other costs NRItotal NRI t
Slide 35: Rent collection performance and top 10 occupier exposure
Rent collection performance and top 10 occupier exposure Rental Rent collection UK France Ireland Group % of passing Occupier exposure % of NIA - flagships % % % % rent (£m) FY22 100 98 100 99 Inditex 10.2 5.7 3.8 FY23 97 96 99 98 H&M 3.9 2.1 2.4 FY24 97 95 98 97 Next 3.5 1.9 2.1 JD Sports 3.3 1.8 1
Slide 36: Top ten occupiers by region
Top ten occupiers by region UK France Ireland Rental % of Rental % of Rental % of % of % of Occupier exposure passing Occupier exposure passing % of NIA Occupier exposure passing NIA NIA (£m) rent (£m) rent (£m) rent Inditex 5.1 2.8 2.1 Inditex 2.6 2.0 1.1 Inditex 1.6 0.9 0.4 Watches of 3.2 1.7 0.4
Slide 37: Credit metrics
Credit metrics 31 December 31 December 31 December 31 December 2024 2023 2024 2023 £m £m £m £m Net debt 799.0 1,326.3 Net debt 799.0 1,326.3 Adjusted operating profit 133.8 163.0 Amortisation of tenant incentives and Property portfolio 2,659.0 2,776.1 (2.6) (3.6) other items(1) Investment in Value R
Slide 38: For further enquiries please contact:
For further enquiries please contact: Josh Warren, Director of Strategy, Commercial Finance and IR Tel: +44 (0)20 7887 1053 josh.warren@hammerson.com Tom Gough, Communications Consultant Tel: +44 (0)20 7887 1092 tom.gough@hammerson.com 38