Hammerson (HMSO) Investor presentation summary

Strategic progress and capital deployment

• Increased economic interest in Brent Cross to 97% through a £186m acquisition at a 16% discount to book value, with an 8.6% net initial yield and £14m annualised EBITDA benefit at full ownership.

• £321m of Value Retail proceeds redeployed at an average yield of 8.5%, adding £25m annualised EBITDA.

• Sold Leeds development land for £26m, a 23% premium to book value.

• Pro forma LTV at 34% and net debt/EBITDA at 7.2x, with £1.2bn liquidity and 4.7-year average debt maturity.

• Ongoing share buyback of up to £140m and £95m net debt reduction.

Operational performance and leasing

• 93 leases exchanged YTD, £15.5m headline rent, 59% ahead of previous passing, and 12% above net effective ERV.

• 91% of new lease value is long-term, with a WAULB of 5.4 years and £76m rent contracted to first break.

• Footfall robust with over 50m visitors YTD; Q1 like-for-like sales up 1%, UK up 2%.

• Flagship Q1 occupancy up 70bps YoY to 94%; new anchor openings at key centres.

• Placemaking and events driving double-digit footfall growth and high social media engagement.

Portfolio, platform, and structural drivers

• Portfolio realigned to 10 landmark destinations, managing £4bn AUM and 70 acres of strategic land.

• Top 20 retail venues, with 40m customers within 60 minutes and 40% of catchment under 35 years old.

• Over 80% of retail transactions involve physical stores; prime space is scarce with no new supply.

• 19,000 retail units repurposed in 2024, highlighting flight to quality.