Slide 1: Our Annual Results for 31 March 2024
OUR ANNUAL RESULTS for 31 March 2024 @LandsecGroup Landsec.com
Slide 2: Annual results 2024
Annual results 2024 Mark Allan CHIEF EXECUTIVE OFFICER
Slide 3: Our strategic focus
Landsec — Our strategic focus Grow our investment in best-in-class, high-growth urban places Shaping & curating our places to drive growth Delivering attractive income-led total returns Capitalising on future growth potential Nova, Victoria Bluewater Finchley Road, London C. 80% OF OUR PORTFOLIO IS
Slide 4: Quality is key to driving income growth
Landsec — Quality is key to driving income growth Outperforming in increasingly polarised markets Central London Major retail destinations £10bn portfolio(1) % Landsec occupancy vs overall London office market - CBRE % Landsec occupancy vs overall UK retail market - LDC 100 100 95 90 9% 97.3% 90 7%
Slide 5: Investment market outlook improving
Landsec — Investment market outlook improving Substantial capacity to invest at attractive point in time Values beginning to stabilise Pro-active capital recycling Balance sheet poised for growth 62 Buckingham Gate, Victoria Novotel, Hammersmith St David’s, Cardiff c. 60% of portfolio effectively st
Slide 6: Continued strength in operational performance
Landsec — Continued strength in operational performance Occupancy, rents and lease reversions up Central London Major retail Mixed-use Piccadilly Lights White Rose, Leeds Mayfield, Manchester £35m of lettings 6% above ERV £37m of lettings 6% above ERV Planning secured at Finchley Road 15% uplift on
Slide 7: Resilience in earnings
Landsec — Resilience in earnings 2.8% LFL income growth and lower overhead offset rise in finance costs 31 March 2024 31 March 2023 % change EPRA EPS 50.1p 50.1p(1) - Dividend per share 39.6p 38.6p +2.6% EPRA NTA per share 859p 936p -8.2% Total return on equity Pro forma -4.0% -8.3% +4.3% 32.3% LTV
Slide 8: Operational review
Operational review Mark Allan CHIEF EXECUTIVE OFFICER
Slide 9: Two key principles of sustainable value creation
Landsec — Two key principles of sustainable value creation Focus on three key competitive advantages and balance sheet strength High quality portfolio Strong customer relationships Ability to unlock complex opportunities Gunwharf Quays, Portsmouth New Street Square, City n2, Victoria CLEAR FOCUS UND
Slide 10: Central London: Evolving customer demand continues to drive polarisation
Landsec — Central London Evolving customer demand continues to drive polarisation Clear bifurcation — Total London office market vacancy by number of buildings Customers focused on best-in-class space % 36% of vacancy to attract and retain key talent 40 is in 1% of buildings — Transport connectivity
Slide 11: Central London: Investing in our best places
Landsec — Central London Investing in our best places Five largest places make up 88% of London portfolio — Split by value(1) Creating places where people want to be — New openings Piccadilly New Street Square BAM Lucent rooftop restaurant Victoria Southbank One New Change Increased investment via p
Slide 12: Central London: Insight in what is driving customers' decision-making
Landsec — Central London Insight in what is driving our customers’ decision-making Utilisation continues to grow Customers planning for more space More upsizing than downsizing Unique daily turnstile tap-ins across Landsec portfolio Average sq ft / person for leases signed with Landsec Landsec leasi
Slide 13: Central London: Continued strength in operational performance
Landsec — Central London Continued strength in operational performance Two profitable developments completed in last 12 months £30m of rent signed, 5% ahead of ERV £5m of rent ISH, 9% above ERV 15% uplifts on relettings / renewals Occupancy +140bps to 97.3% vs 91.2% for market n2, Victoria Lucent, P
Slide 14: Major retail destinations: Investing in our best places
Landsec — Major retail destinations Investing in our best places Five largest places make up 75% of major retail portfolio — Split by value Creating places where people want to be — New initiatives CGI of Trinity Leeds St David’s Trinity Gunwharf Quays Bluewater White Rose CGI of St David’s Key bran
Slide 15: Major retail destinations: Insight in customer decision-making
Landsec — Major retail destinations Insight in what is driving our customers’ decision-making Landsec locations are outperforming Focus on fewer, bigger, better stores Growing demand for best space Overall sales growth vs sales growth in Landsec stores Change in brands’ stores since 2018 Landsec las
Slide 16: Major retail destinations: Inflection point in rental uplifts
Landsec — Major retail destinations Inflection point in rental uplifts on relettings / lease renewals 93.2% 91.5% Major retail destinations occupancy — Continued growth over last three years Total retail sales +4.1% YoY with LFL sales +1.5% % 100 Footfall +3.9% to c. 93% of pre-pandemic levels 90 £2
Slide 17: Investing in our key places
Landsec — Investing in our key places Responding to customer demand and driving earnings accretion 93.2% 91.5% Investing in our major retail destinations Started two London schemes for completion in H2 2025 St David’s, Cardiff CGI of Gunwharf Quays Timber Square, Southbank Thirty High, Victoria 50%
Slide 18: Further near-term potential
Landsec — Further near-term potential Pipeline to expand or create next generation of scarce urban places NATIONAL RAIL Southbank Mixed-use 4 sites 24 acres 2.5m sq ft 0.9m sq ft 1,500 homes c. £1.1bn TDC c. £0.9bn TDC Red Lion Court Mayfield, Manchester 2025-30 delivery 2027-34 delivery City / NSS
Slide 19: Capital allocation: Return prospects in higher cost of capital environment
Landsec — Capital allocation Return prospects in higher cost of capital environment 93.2% 91.5% Unlevered return expectations — Constant cap rates Improved returns for major retail and prime London reflecting attractive yields and rental growth London investment Major retail key focus for investment
Slide 20: Financial review
Landsec — Financial review Vanessa Simms CHIEF FINANCIAL OFFICER
Slide 21: Financial summary
Landsec — Financial summary Strong balance sheet underpins resilience of earnings 31 March 2024 31 March 2023 % change EPRA earnings £371 m £371 m(1) - EPRA earnings per share 50.1 p 50.1 p(1) - Dividend per share 39.6 p 38.6 p +2.6 % EPRA NTA per share 859 p 936 p -8.2 % Pro forma 32.3% Group LTV 3
Slide 22: EPRA EPS in line with guidance
Landsec — EPRA EPS in line with guidance 4.0% growth in operating profit offsets higher finance cost Gross rental income up £16m, adjusted for £22m 31 March 2024 31 March 2023(1) year-on-year increase in surrenders in prior year £m £m Gross rental income 641 625 Like-for-like gross rental income up
Slide 23: Like-for-like net rental income up 2.8%
Landsec — Like-for-like net rental income up 2.8% Growth driven by major retail Movement in net rental income (£m) Positive uplifts on relettings / renewals +£13m — Central London +17% Like-for-like growth +2.8% — Major retail +1% +0.4% +6.9% +3.1% Positive LFL growth across all segments Central Lon
Slide 24: Improving operational efficiency
Landsec — Improving operational efficiency Driving overall income and return on equity Difference in operating costs — Mature vs operational assets Administrative expenses down 9%, with further savings expected over coming years Sold Acquired – Mature offices – Major retail Investments in technology
Slide 25: Strong leasing performance drives 3.2% ERV growth
Landsec — Strong leasing performance drives 3.2% ERV growth Around 60% of portfolio broadly stable in value in second half Valuation as at LFL equivalent 31 March Surplus / Equivalent yield LFL ERV Valuation surplus / (deficit) % — H1 23/24 and H2 23/24 2024 (deficit) yield movement movement £m % %
Slide 26: Total return on equity improved to -4.0%
Landsec — Total return on equity improved to -4.0% Rise in yields offsets 9.5% ROE from income, ERV growth & development Total return on equity Movement in EPRA NTA per share (pps) March-22 March-23 March-24 50 10.5% 9.5% 8.1% (39) 5.3% 6.1% 5.0% 936 (84) (3) (1) 4.6% 3.6% 859 2.5% 1.2% 0.2% 0.2% 0.
Slide 27: Strong capital base provides capacity to invest
Landsec — Strong capital base provides capacity to invest Net debt and LTV lower than before reset in values No need to refinance any debt until 2026 — Debt maturity by calendar year(1) 31 March 31 March 2024 2023 £m Bond debt Drawn bank debt / Commercial paper Undrawn bank facilities 2,000 Adjusted
Slide 28: Capital allocation: Enhancing income and total return
Landsec — Capital allocation Enhancing income and total return whilst further improving portfolio quality Current views on sources of funding and opportunities Sold £225m during year plus £400m since year-end, on average in line with March 2023 book value Retail parks Major retail Total disposals si
Slide 29: Earnings outlook
Landsec — Earnings outlook Continued operational growth vs timing effects of investment activity EPS outlook – Impact from capital recycling Expect LFL income growth to be similar to last year EPS expectations for March 2025 and 2026 £572m net disposals since HY reduce EPS by c. 4% Exact EPS traject
Slide 30: Overview
Overview Mark Allan CHIEF EXECUTIVE OFFICER
Slide 31: Outlook
Landsec — Outlook Actively positioning portfolio for growth in polarising markets Long-term view — Property yields vs 10-year gilt yields Demand for best-in-class space remains robust % All property equivalent yield 10-year gilt yield 18 Expect low / mid-single digit ERV growth in London 12 and majo
Slide 32: Our focus for the next twelve months
Landsec — Our focus for the next twelve months Drive returns from best-in-class assets, platform and capital base Positive outlook for return on equity when yields stabilise Drive like-for-like income March-22 March-23 March-24 Outlook 10.5% Further optimise operational efficiency 9.5% 0.7% 8.1% Con
Slide 33: Thank you for attending this meeting
Thank you for attending this meeting and have a safe onward journey. @LandsecGroup Landsec.com