Hammerson Plc · LSE:HMSO
Hammerson — H1 2025 Earnings Presentation
37 slides from Hammerson's earnings presentation, Jul 31, 2025
Slide 1: 2025 Half Year Results
2025 Half Year Results LES TERRASSES DU PORT BRENT CROSS Growing rental income Acquisition of Bullring and Grand Central 5% dividend growth Upgraded earnings outlook 31 July 2025 BULLRING CABOT CIRCUS
Slide 2: Strong HY25 performance
Strong HY25 performance LfL and acquisitive growth driving enhanced returns DEMAND FOR OUR SPACE SIGNIFICANT STRONG FINANCIAL REDEPLOYING CAPITAL HAS NEVER BEEN OPPORTUNITIES TO GROWTH AT HIGH YIELDS STRONGER UNLOCK FURTHER VALUE LES TERRASSES DU PORT BULLRING BRENT CROSS DUNDRUM • GRI +11% • LfL re
Slide 3: Transaction overview
Transaction overview Compelling opportunity to gain full control of Bullring, a top five UK destination, and Grand Central for a cash consideration of £319m Attractive transaction terms • Net initial yield of 6.7%, a topped-up net initial yield of 7.7%1 PRO FORMA IMPACT OF ACQUISITION2: • Annualised
Slide 4: Birmingham estate opportunity – Hammerson in a nutshell
Birmingham estate opportunity – Hammerson in a nutshell Consolidated control with significant near, medium and long term opportunities GRAND CENTRAL DRUM REDEVELOPMENT c.£100M GDV MARTINEAU GALLERIES 7.5 ACRE MIXED-USE REDEVELOPMENT SITE c.£1.5BN GDV NEW STREET UK’S BUSIEST REGIONAL TRAIN STATION ED
Slide 5: Outlook upgraded
Outlook upgraded On track to deliver medium term financial framework FY25: UPGRADED GUIDANCE • Total GRI growth c.17% (from c.10% previously) • EPRA earnings upgraded to c.£102m (from c.£95m previously) FY26: FURTHER GROWTH IN GRI & NRI • Full benefit of completed repositionings and acquisitions •
Slide 6: Our strategy is driving value creation
Our strategy is driving value creation …as the UK’s largest listed, pure-play owner and manager of city centre We have a portfolio primed for growth… destinations in the UK, France and Ireland • Strong results • High visibility of long term income streams • Multiple paths to value creation • Driving
Slide 7: HY25 Financials
HY25 Financials : : : HAMMERSON
Slide 8: Financial highlights
Financial highlights 30 June 2025 30 June 2024 Change Profit & Loss Gross rental income1 £105m £94m +11% GRI change LfL1,2 4.6% 2.1% - Net rental income1 £80m £73m +10% NRI change LfL1,2 4.0% 1.7% - Gross to net2 79% 80% (100bps) EPRA earnings £48m £50m (4%) IFRS profit/(loss) £79m £(517)m - EPRA ea
Slide 9: EPRA earnings
EPRA earnings Benefitting from like-for-like growth and acquisitions Gross (0.5) admin Westquay 7 Property & (0.4) Brent Cross 2 mgt fees 3 (2) 4 (12) (1) 9 (3) 50 48 £m June-24 Value NRI NRI LFL NRI Net Net June-25 EPRA Retail disposals acquisitions NRI non-LFL admin finance EPRA earnings & FX cost
Slide 10: NTA per share
NTA per share Growth in NTA per share 2 1 1 (8) 5 10 381 370 Pence FY24 EPRA Property Profit on sale Share FX & other Final 2024 HY25 earnings revaluation of properties buyback dividend 10
Slide 11: Valuations
Valuations Like-for-like up 1.2%. Total valuation up 11% Value Valuation ERV NEY 5 year Yield HY25 change change range % swap %2 spread £m1 LfL % LfL % bps UK 1,113 1.3 0.9 7.2 – 8.8 3.7 c.420 France 1,001 0.2 0.9 5.0 - 5.2 2.3 c.280 Ireland 550 1.6 2.5 6.6 – 7.1 2.3 c.440 Total flagships 2,664 0.9
Slide 12: Debt maturity and credit metrics
Debt maturity and credit metrics Strong, flexible balance sheet at this point in the cycle HY25 Group debt maturity HY25 Pro forma2 £m Net Debt £1,024m £1,211m Euro bonds GBP bonds EBITDA (rolling 12 months)1 £131m £153m USPP 463 Secured debt Net Debt | EBITDA 7.8x 7.9x Unutilised facilities 2025 ca
Slide 13: Dividend growth of 5% and upgraded guidance outlook
Dividend growth of 5% and upgraded guidance outlook Track record of growing dividends Guidance significantly upgraded DPS Pence 15.6 15.0 FY25 EPRA earnings: c.£102m Half Year Full Year • £95-97m from LfL growth • £5m from acquisitions Capex: c.£60m 7.9 7.6 7.2 2.0 3.0 2.0 2.0 2021 2022 2023 2024 20
Slide 14: Driving Growth and Value Creation
Driving Growth and Value Creation
Slide 15: We are executing a strategy that is driving value creation
We are executing a strategy that is driving value creation We have a unique c.£3bn portfolio of …playing to strong structural themes and driven by our pure-play platform landmark city destinations primed for growth… THREE CITIES ARE DOMINANCE FLIGHT TO STRUCTURAL ENGINES OF OF UNIFIED QUALITY GROWTH
Slide 16: Active asset management driving rental growth
Active asset management driving rental growth THE ORACLE CABOT CIRCUS Regularly partnering with key trusted brand partners 2025+ +6% +24% HY25 LfL HY25 LfL NRI NRI BULLRING DUNDRUM 2021 16
Slide 17: HY25 highlights
HY25 highlights +13% +45% / +13% +2.4% LfL leasing volume vs previous passing / ERV1 LfL passing rent growth +3% LfL leasing value +12% vs previous passing LfL2 to £200m +1.2% 79m +1% LfL ERV growth Visitors YTD, +1m YoY LfL sales growth YTD YoY UK & France +1%, Ireland +3% +3% Q2 YoY: UK +3%, Franc
Slide 18: Operational strength
Operational strength High demand for prime space reflected in strong positive trends in key KPIs LEASING SPREADS TO LfL FOOTFALL1 (M) UK SALES DENSITIES2 (£/ft2) LfL LEASING VALUE2,3 (£M) PREVIOUS PASSING (%) 167 167 37 37 161 427 61 33 56 418 416 418 115 414 45 24 410 21 37 20 34 77 78 79 31 73 401
Slide 19: Financial strength
Financial strength Rewarded by the market in Strong operational trends underpin positive financial trends returns to shareholders TOTAL SHAREHOLDER LfL PASSING RENT1,2 (£M) LfL FLAGSHIP ERV1,2 (£M) LfL FLAGSHIP GRI1,2 (£M) RETURNS 200 203 164 167 180 200 155 200 160 196 198 198 194 194 197 134 140 1
Slide 20: Capital allocation
Capital allocation Clear and disciplined strategy to drive growth and enhance returns In line with Medium Term Financial Framework to shareholders Investing for Growth Risk Adjusted IRRs > WACC GRI growth: 4-6% CAGR Yield on Cost Mid- to High-Single Digit EPRA EPS growth: 6-8% CAGR Repositioning & C
Slide 21: Strong track record of capital recycling
Strong track record of capital recycling Disciplined disposals £321m redeployed at average destination yield of 8.5%1 £595m proceeds from Value Retail in FY24: 100% ownership of Westquay November 2024: £135m • Dominant asset on affluent South Coast • 24x EBITDA multiple • Hyper loyal core catchment:
Slide 22: Indicative scale & impact
Significant opportunity to generate optionality and unlock value GDV c.£265m GDV c.£470m GDV c.£4.8bn Estimated remaining capex c.£40m The Goodsyard Brent Cross regeneration (mixed use) (mixed use) Martineau Planning Sold in Galleries Indicative scale & impact to be April 2025 (mixed use) Expected a
Slide 23: Summary
Summary HAMMERSON = in
Slide 24: Strategy driving value creation and shareholder returns
Strategy driving value creation and shareholder returns 1 2 3 4 5 FURTHER CONFIDENCE IN HIGH QUALITY DISCIPLINED SIGNIFICANT DELIVERING PORTFOLIO OF ACTIVE ASSET CAPITAL OPPORTUNITES MEDIUM AND LANDMARK MANAGEMENT ALLOCATION TO UNLOCK LONG TERM DESTINATIONS VALUE GROWTH UNDERPINNED BY LEAN, SCALABLE
Slide 25: HAMMERSON
- ae in HAMMERSON
Slide 26: Additional disclosures
IL im HAMMERSON Additional disclosures
Slide 27: 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 28: Macro-economic indicators
Macro-economic indicators INTEREST RATES FALLING BUT NOT TO PRE-COVID LEVELS1 CPI TO FALL BACK TO TARGET LEVELS1 2023 2024 2025 2026 2027 2028 2023 2024 2025 2026 2027 2028 UK 7.3 2.5 3.2 2.5 2.4 2.1 UK 5.25 4.75 3.75 3.00 2.50 2.50 FR 4.9 2.0 0.9 1.8 2.1 2.0 Eurozone 4.5 3.2 1.7 1.9 2.2 2.2 IRE 6.3
Slide 29: Bullring is attractive to a large, young catchment
Bullring is attractive to a large, young catchment Large, growing and young catchment1 Age breakdown 2025: Bullring consumers 4.1m Total 21% catchment 19% 18% 16% 14% 12% 50% Under 34 years old 2 18-24 25-34 35-44 45-54 55-64 65+ 93 min c.50m 2025 dwell FY2024 time footfall 3 1. Source: CACI 2. Sour
Slide 30: Powerful, first to market AI analytics capabilities driving income growth
Powerful, first to market AI analytics capabilities driving income growth We have invested in a powerful new AI analytics SCREENSHOT OF DASHBOARD tool to drive income growth at Bullring: • First to market in UK to deploy leading AI powered customer analytics tool • Revolutionises capabilities to pro
Slide 31: Placing overview
Placing overview STRUCTURE Primary placing of ordinary shares, via an accelerated bookbuild Proceeds used to part fund the acquisition of the 50% of Bullring and Grand RATIONALE Central owned by its JV partner (CPPIB) for a net cash consideration of £319m1 SIZE OF ISSUE Up to 10% of the issued share
Slide 32: ESG is core to our identity
ESG is core to our identity Environment • Progressing Net Zero Asset Plans (NZAPs) and Nature Asset Plans (NAPs) with a focus on early delivery and innovation to maximise returns -13% HY25 YoY • Reduced CO2 emissions: -47% HY25 vs HY19 • Conducted Double Material Analysis and implementing new enviro
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% 2% 2% 2% 0% 0% 0% 2020 2021 2022 2023 2024 2025 2020 2021 2022 2023 2024 2025 2020 2021 2022 2023 2024 2025 100% 100% 100% ERV (100% at peak) 90% 90% 90% 80% 80% 80% 70% 70% 70% 60%
Slide 34: 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 7.2 3.5 2.8 Inditex 3.9 1.9 1.2 Inditex 2.3 1.1 0.7 JD Sports 3.2 1.5 0.8 P
Slide 35: Like-for-like GRI & NRI analysis (HY25 YoY) – Flagships only
Like-for-like GRI & NRI analysis (HY25 YoY) – Flagships only Leasing 3.7% Inflation 0.2% Variable 0.1% Other 0.7% GRItotal GRI total LFL LfL 4.6% Bad debt 0.1% Unrecovered costs 0.5% Car park & Commercial costs -0.4% Letting fees -0.3% TI impairment 1 -1.7% NRI NRItotal LfL total LFL 4.0% 1. Due to
Slide 36: 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, Cergy c.25 c.20 and return dependent e.g. Enhanced public realm, ESG, leasing, FFO Asset enhancement & placemaking maintenance of landlord
Slide 37: For further enquiries please contact:
For further enquiries please contact: Josh Warren, Director Group Performance and Investor Relations Tel: +44 (0)20 7887 1053 josh.warren@hammerson.com Tom Gough, Communications Consultant Tel: +44 (0)20 7887 1092 tom.gough@hammerson.com 37