Land Securities Group Plc · LSE:LAND
Land Securities — Landsec — Investor Day (June 2023)
34 slides from Land Securities's investor day presentation, Jun 21, 2023
Slide 1: Capital Markets Day
Capital Markets Day 21 June 2023 @LandsecGroup Landsec.com
Slide 2: Welcome
Landsec — Welcome Mark Allan CHIEF EXECUTIVE OFFICER
Slide 3: Agenda
Landsec — Capital Markets Day 2023 3 Agenda Introduction Mark Allan Market context Remco Simon Retail update Bruce Findlay Hosted by Panel session and Q&A Nik Porter Gunwharf Quays: A growth story Pablo Sueiras GUNWHARF QUAYS TOUR Gunwharf Quays Portsmouth
Slide 4: Market context
Landsec — Market context Remco Simon CHIEF STRATEGY AND INVESTMENT OFFICER
Slide 5: Best-in-class locations attracting higher sales growth
Landsec — Capital Markets Day 2023 5 Best-in-class locations attracting higher sales growth Well-positioned in ongoing flight to prime Fewer, bigger, better stores… …as Landsec destinations outperform for brands… …driving operational growth Change in brands’ stores since 2018 Growth in brands’ overa
Slide 6: Increased relevance and profitability of physical stores
Landsec — Capital Markets Day 2023 6 What has changed in last 5+ years Increased relevance and profitability of physical stores Online market share of UK clothing sales before/after start of pandemic Brands focused on omni-channel vs online/offline % 80 70 Online non-food sales down for each of last
Slide 7: A better, more sustainable brand line-up
Landsec — Capital Markets Day 2023 7 What has changed in last 5+ years A better, more sustainable brand line-up Pandemic accelerated shake-out of weaker brands -0.5m sq ft Reduced higher-risk, weaker brands by 0.5m sq ft, since 2018 or 8% of total retail space Weaker brands with Re-let 0.5m sq ft to
Slide 8: Repurposing of space is reducing supply
Landsec — Capital Markets Day 2023 8 What has changed in last 5+ years Repurposing of space is reducing supply At start of 2018 still c. 3m sq ft of new shopping centre space under construction No new development in last few years Cardiff Oxford Leeds Current values roughly half of replacement cost,
Slide 9: High income yields with rents set to return to growth
Landsec — Capital Markets Day 2023 9 Attractive future return potential High income yields with rents set to return to growth Movement in shopping centre sales, valuation and rents — March 2017 = 100 c. 7-8% income return based of sustainable rents 110 Net rental income Asset values Total sales 100
Slide 10: Retail update
Landsec — Retail update Bruce Findlay MANAGING DIRECTOR, RETAIL
Slide 11: Customer centric property management
Landsec — Capital Markets Day 2023 11 What has changed in Landsec Retail Customer centric property management Our Retail Operating Model was developed with three goals in mind: IMPROVE OUR PERFORMANCE POSITION OURSELVES TO DRIVE GROWTH RESTORE AND CREATE VALUE Move from generalists to specialist fun
Slide 12: A modern omni-channel retail place
Landsec — Capital Markets Day 2023 12 What does good look like A modern omni-channel retail place Improving performance through experience-led places Driving growth by attracting and retaining the best brands We welcome a degree of brand churn – it drives a virtuous cycle Gunwharf Quays Portsmouth
Slide 13: Improving performance through experience-led places
Landsec — Capital Markets Day 2023 13 Improving performance Through experience-led places Opening of Gravity Leisure concept at Southside BEFORE Impact on Southside FY23 performance — Footfall 8.5m +11% vs last year — Total Net Sales £64m +15% vs last year Gravity Leisure – Southside, SW8 — Occupanc
Slide 14: Attract and retain the best brands
Landsec — Capital Markets Day 2023 14 Drive growth Attract and retain the best brands Opening of M&S flagship store concept at White Rose BEFORE Impact on performance — M&S had 96,000 visitors — M&S total net sales ahead of target M&S store – White Rose, Leeds White Rose opening week’s footfall was
Slide 15: Accretive capex: strategic investment that delivers returns
Landsec — Capital Markets Day 2023 15 Accretive capex Strategic investment that delivers returns Four categories for space optimisation Capex spend — FY24-FY28 Introducing Enhance Evolving the alternative Differentiate placemaking brand mix uses e.g. the F&B offer and the guest leisure experience 7%
Slide 16: Strategic investments: St. David's Debenhams
Landsec — Capital Markets Day 2023 16 Strategic investments Accretive capex St. David’s Debenhams | REIMAGINE PLAN Deliver a placemaking initiative that will enhance guest experience and increase dwell time Introduce Removing 10,000 sq ft Create a 160,000 sq ft of new F&B space new city square of va
Slide 17: Strategic investments: Trinity
Landsec — Capital Markets Day 2023 17 Strategic investments Accretive capex Trinity | REIMAGINE PLAN Building on the success of Trinity Kitchen Re-purposing 40,000 sq ft vacant retail space in Trinity northwest Delivering new 70,000 sq ft hospitality destination CGI, Trinity shopping centre Leeds
Slide 18: Retail platform: more than a portfolio of assets
Landsec — Capital Markets Day 2023 18 Retail platform More than a portfolio of assets Building on our competitive advantages — Continue to drive performance — Platform to support growth — Create value for our business, our stakeholder and our Brand Partners Landsec’s three key competitive advantages
Slide 19: Panel session
Panel Will Smith Harvey Jenkinson CEO session PROPERTY DIRECTOR Ruth McFetridge Peter Harris BRAND DIRECTOR CO-FOUNDER Hosted by Nik Porter HEAD OF BRAND ACCOUNT Ilana Sarner Nick Tite BRAND DIRECTOR VP COMMERCIAL MANAGEMENT
Slide 20: Q&A
Landsec — Q& A
Slide 21: Gunwharf Quays: A growth story
Landsec — GUNWHARF QUAYS A growth story Pablo Sueiras HEAD OF RETAIL ASSET MANAGEMENT
Slide 22: Gunwharf Quays: A growth story
Landsec — Capital Markets Day 2023 22 Gunwharf Quays A growth story Top 3 UK outlet (CACI) 6.4m footfall, £205m total sales (FY23) 95 off-price retail units (210k sq ft) £17m invested (FY15-18) 42% growth in Retail Sales Density to £732 (FY15-20) 21% growth in Net Rental Income (FY15-20) Successful
Slide 23: Portsmouth and Gunwharf Quays
Landsec — Capital Markets Day 2023 23 Portsmouth and Gunwharf Quays Maritime heritage and a collection of world-class attractions and buildings
Slide 24: Living history
Landsec — Capital Markets Day 2023 24 Living history Home to numerous listed buildings and naval memorabilia
Slide 25: Catchment and dominant Acorn group
Landsec — Capital Markets Day 2023 25 Catchment and dominant Acorn group Gunwharf Quay’s catchment (90-minute drivetime) extends northwest to Oxfordshire and northeast to south and west London.
Slide 26: Our mission
Landsec — Capital Markets Day 2023 26 Our mission Create a leading European lifestyle waterfront destination
Slide 27: Transformation plan
Landsec — Capital Markets Day 2023 27 Transformation plan Being executed across all areas Asset Brand Consumer Development Targeted marketing Curation of zones Elevate the brand mix Unique character strategy Realise greater value Enhance the guest Increase retail space Four key projects from the pub
Slide 28: Four key projects: Marlborough Square
Landsec — Capital Markets Day 2023 28 Four key projects Marlborough Square
Slide 29: Four key projects: Central Square
Landsec — Capital Markets Day 2023 29 Four key projects Central Square
Slide 30: Four key projects: The Avenues
Landsec — Capital Markets Day 2023 30 Four key projects The Avenues
Slide 31: Four key projects: The Waterfront
Landsec — Capital Markets Day 2023 31 Four key projects The Waterfront
Slide 32: Design intent
Landsec — Capital Markets Day 2023 32 Design intent
Slide 33: Transformation plan: key metrics
Landsec — Capital Markets Day 2023 33 Transformation plan Key metrics c.£45m +18% 68% £1,011 Development Additional retail Premium retail Retail sales density, capex to deliver space (+32k sq ft) space mix, vs £750 today the projects +27ppts vs today £290m +22% c.£4m 8%+ Total centre sales, Net Rent
Slide 34: Capital Markets Day
Landsec — Capital Markets Day 21 June 2023 @LandsecGroup Landsec.com