2019 full-year results
25 February 2020
Village Noël, Les Terrasses du Port, Marseille
Agenda
01 | 2019 full-year overview |
02 | 2019 full-year financial results |
03 | Strategic and operational review |
04 | Conclusion |
Additional disclosure |
2
Full-year overview
Delivering strategic progress in a challenging environment
Debt reduction target surpassed, retail parks exited
Gross proceeds of £975m since January 2019 12 Retail Parks and 75% of Italie Deux
Pro forma(1) net debt at £2.4bn (vs target 2019 <£3bn), Gearing 55%, LTV 35%, LTV 42% fully proportionally consolidated
Earnings reducing due to disposals
EPS 28.0p (-8.5%), DPS 25.9p (no change)
FY20 dividend to be rebased to 14.0p
Decline in flagship valuations; premium outlets growth
Group capital return -9.8%, flagships -14.8%, premium outlets +8.2% NAVPS 601p (-18.6%)
Diverse portfolio dilutes UK income weakness
Group LfL NRI +0.5%, UK flagships -6.7%, premium outlets +10.8% Weak UK leasing metrics, stronger in France and Ireland
Proactive management vital in polarising market
100% of new UK flagship leasing to target categories Repurposing department stores in Dundrum and The Oracle Footfall up in all regions, outperforming benchmarks
Summer fest, Dundrum, Dublin | Freeport Lisboa, Lisbon | |
Les Terrasses du Port, | Westquay, Southampton | |
Marseille | ||
1 | Reflects net proceeds of £428m from disposal announced on 21 February 2020 of seven retail park portfolio and Abbey Retail Park, Belfast | 3 |
Full-year financial results
£1bn transacted in the last 12 months
Hammerson annual disposal proceeds (£m)
700
600
500
400
300
200
100
0
2015
See slide 69
2016 | 2017 | 2018 | 2019 (1) | 2020 YTD(2) | ||||||
UK flagships | UK retail parks | UK other | France | Ireland | ||||||
1 | Key disposals: Italie Deux (75%), Dallow Road, Abbotsinch, St Oswald's and Parc Tawe | 4 | ||||||||
2 | Eight retail parks: Abbey, Central, Cleveland, Cyfarthfa, Elliott's Field, Telford Forge, Ravenhead and The Orchard Centre |
Full-year overview
Delivering against strategy in polarising retail market
July 2018 | ||||
Strategic Agenda | ||||
Capital Efficiency | • Delever to mid 30%s LTV | |||
• | £300m share buybacks | |||
• | Defer Brent Cross | |||
Optimised Portfolio | • | Exit Retail Parks | ||
• £1.1bn of disposals targeted | ||||
• Focus on flagships and premium outlets | ||||
• | Progress City Quarters | |||
Operational | ||||
Excellence | • Step change retailer line-up | |||
• | Reducing costs | |||
Progress to date
- Net debt reduced by a third to £2.4bn
- Buybacks programme ended July 2019
- Brent Cross and Croydon on hold
- Retail Parks exit achieved
- Total disposals of £1.4bn
- Portfolio - flagships now 57%, premium outlets 34%
- VIA Outlets 50/50 JV
- Planning for three City Quarters schemes
- Significant repurposing underway
- 100% of new leasing to target categories(1)
- Strong leasing in France and Ireland
- £7m annualised cost savings
1 | UK Flagships, FY19 only | 5 |
Full-year overview
Priorities remain: reduce debt; maintain vibrancy; City Quarters
Key priorities | ||||||
Capital Efficiency | • Further cross-portfolio disposals to strengthen balance sheet | |||||
• | Disciplined capital expenditure | |||||
• | Cost control | |||||
Optimised Portfolio | • Diverse portfolio: Flagships; Premium Outlets; City Quarters | |||||
• VIA Outlets: organic growth and acquisitions | ||||||
• | Progress City Quarters | |||||
Operational | • | Repurposing department stores | ||||
Excellence | ||||||
• Shift tenant line-up to target categories | ||||||
• Enhance visitor experience and drive footfall | ||||||
• | Net Positive | |||||
6
Full-year overview
Our Net Positive commitments
Hammerson set a target in 2015 to be Net Positive for carbon, water, resource-use and socio-economic impacts by 2030
2016 - 2020 | 2021 - 2025 | 2026 - 2030 |
Phase One | Phase Two | Phase Three |
Hammerson | Hammerson | Hammerson, | ||||
controlled impacts | controlled & | tenant | ||||
development | & development | |||||
impacts | impacts | |||||
7
See slides
76-78
Full-year overview
Significant progress against ambitious targets
FY19 achievements towards Net Positive
-12% | -12% | -7% | £900k | £1.4m |
carbon(1) | electricity(1) | water(1) | energy cost savings(2) | community investment spend(3) |
Thassalia project, Les Terrasses du Port | PV array, Silverburn | |||
1 | EPRA LfL | 8 |
2 | Service charge and car park savings from at directly managed assets at 100% | |
3 | Source: London Benchmark Group at 100% |
2019 full-year financial results
Victoria Leeds, Leeds
Full-year financial results
FY headline results
31 December 2019 | 31 December 2018 | Change | ||||||
Income statement | Net rental income (£m) | 308.5 | 347.5 | (11.2%) | ||||
Adjusted profit (£m) | 214.0 | 240.3 | (10.9%) | |||||
Adjusted EPS (p) | 28.0 | 30.6 | (8.5%) | |||||
Total dividend (p) | 25.9 | 25.9 | − | |||||
Balance sheet | Portfolio value (£m)(1) | 8,327 | 9,938 | (9.8%)(2) | ||||
EPRA NAVPS (p) | 601 | 738 | (18.6%) | |||||
Net debt (£m) | 2,843 | 3,406 | (16.5%) | |||||
Gearing | 65% | 63% | +2pp | |||||
LTV - headline | 38% | 38% | − | |||||
LTV - full proportionally | 45% | 43% | +2pp | |||||
consolidated |
1 | Figures on a proportionally consolidated basis including premium outlets and assets held for sale | 10 |
2 | Portfolio value change reflects capital return |
Full-year financial results
EPS walk - disposals remain key driver of EPS decline
2019 EPS walk (pence per share)
30.0 | ||
3.1 | ||
28.0 | 0.4 | |
1.5 | 1.5 | |
26.0 | 0.5 | 0.6 |
30.6 | ||
24.0 | 28.0 | |
22.0 | ||
20.0 |
Dec 2018 | Net disposals | LfL NRI | Net admin | Premium outlets | Interest | FX, tax and other (1) Dec 2019 |
1 Other includes change in NRI due to developments (-0.3p) and impact of share buyback (+0.8p) | 11 |
Full-year financial results
LfL NRI movements
LfL NRI movements across the portfolio (%)
UK Flagships | -6.7 | FY19 | ||||||||||||||||||
-6.8 | H1 | |||||||||||||||||||
-6.6 | H2 | |||||||||||||||||||
FY19 | 2.1 | |||||||||||||||||||
France Flagships | H1 | |||||||||||||||||||
0.1 | ||||||||||||||||||||
H2 | 4.2 | |||||||||||||||||||
Ireland Flagships | -5.0 | FY19 | ||||||||||||||||||
-7.4 | H1 | |||||||||||||||||||
-2.6 | H2 | |||||||||||||||||||
-1.4 | FY19 | |||||||||||||||||||
UK Retail Parks | H1 | |||||||||||||||||||
1.0 | ||||||||||||||||||||
-5.5 | H2 | |||||||||||||||||||
Premium Outlets | (1) | FY19 | 10.8 | |||||||||||||||||
H1 | 11.1 | |||||||||||||||||||
H2 | 10.6 | |||||||||||||||||||
Group | 0.5 | FY19 | ||||||||||||||||||
-0.1 | H1 | |||||||||||||||||||
1.0 | H2 | |||||||||||||||||||
-8 | -6 | -4 | -2 | 0 | 2 | 4 | 6 | 8 | 10 | 12 | ||||||||||
1 | Value Retail 12.5%, | VIA 6.2% | 12 |
Full-year financial results
Flagships LfL NRI analysis
2019 FY LfL NRI analysis
Tenant restructuring
Leasing(1)
Void costs
Surrender premiums
Marketing
Car park, commercialisation and other
UK flagships | France flagships | Ireland flagships | ||||
-2.9% | -0.5% | -3.8% | ||||
-1.6% | 0.4% | |||||
4.3% | ||||||
-1.9% | -1.3% | -0.5% | ||||
-0.2% | -1.4% | |||||
0.2% | ||||||
-0.4% | 0.0% | 0.0% | ||||
-0.1% | -0.2% | |||||
0.3% | ||||||
Total | -6.7% | 2.1% | -5.0% | |
1 | Includes rent reviews, indexation and turnover | 13 |
See slide 54
Full-year financial results
Portfolio valuation summary
Sector | FY 2019 | H2 2019 | Value at | Portfolio | ||||
capital return(1) | capital return(1) | 31 Dec 19(2) | weighting(2) | |||||
% | % | £m | % | |||||
Flagship destinations |
UK
France
Ireland
Premium outlets
-19.9 | -11.9 | 2,351 | 28 | |||
-10.2 | -6.6 | 1,270 | 15 | |||
-7.5 | -4.5 | 860 | 10 | |||
Value Retail
VIA
Developments
UK other
UK retail parks(3)
Total
+9.5 | +4.0 | 1,966 | 24 | ||||
+4.5 | +2.1 | 693 | 8 | ||||
-10.7 | -3.2 | 599 | 7 | ||||
-23.6 | -13.1 | 135 | 2 | ||||
-19.5 | -9.6 | 545 | 6 | ||||
-9.8 | -5.3 | 8,419 | 100 | ||||
1 | At constant exchange rates | 14 | |
See slides | 2 | Figures on a proportionally consolidated basis | |
3 | Excludes impact of impairment recognised on reclassification to assets held for sale on 31 December 2019 | ||
64-67 |
Full-year financial results
NAVPS walk
2019 EPRA NAV movement (pence per share)
850 | |||
800 | 12 | ||
26 | |||
19 | |||
750 | 28 | 26 | |
738 | |||
700 | |||
650 | 134 | ||
600 | 601 | ||
550 | |||
500 |
Dec 2018 | Adjusted profit | Premium outlets | Retail parks | Fx & other (incl. (1) Dividend | Reval deficit | Dec 2019 | |
reval | impairment | loss on disposal) | (ex outlets) | ||||
1 | Includes loss on sales of properties of £92m (12p) and foreign exchange of £73m (10p) | 15 |
See slide 68
Full-year financial results
Components of valuation change
Components of capital return for FY19, total portfolio (%)(1)
8%
3%
-2%
-7%
-12%
-17%
-22%
7.8% 8.2%
0.6% | 0.4% | ||||||||||||||||
-0.5% | -0.3% | -1.6%-0.9% | |||||||||||||||
-2.2% | -1.4% | -2.6% | |||||||||||||||
-6.7% | -5.5% | -5.3% | -5.9% | ||||||||||||||
-7.5% | -7.3% | ||||||||||||||||
-8.1% | -7.7% | ||||||||||||||||
-10.2% | -9.8% | ||||||||||||||||
-11.3% | |||||||||||||||||
-13.4%-13.6% |
-19.9% | -19.5% | ||||||||||||||
UK retail parks(3) | |||||||||||||||
UK flagships | France flagships | Ireland flagships | Premium outlets | Developments and UK | Group | ||||||||||
other (2) | |||||||||||||||
Yield | Income | Development and other (4) | Total | ||||||||||||
1 | On a proportionally consolidated basis | 16 |
2 | Capital return of UK other -23.6%, Developments -10.7% | |
3 | Excludes impact of impairment recognised on reclassification to assets held for sale on 31 December 2019 | |
4 | Developments and other capital movements reflects the impact of changes in purchasers' costs, development surpluses/(deficits) and capital expenditure |
Full-year financial results
ERVs reflective of underlying leasing markets since December 2017
Two year change in ERVs Dec 2017 - Dec 2019, by unit type(1) (%)
UK | France | Ireland |
-9.8% | -1.2% | +4.3% |
10%
- ERVs derived by external valuers to reflect leasing and market evidence
- Largest ERV declines from department store and fashion space
• UK anchor ERV: £6/sq ft | ||||||||
5% | • UK MSU ERV: £24/sq ft | |||||||
• French & Irish ERVs: stronger trading | ||||||||
0% | Valuation appointment tendered in 2019: | |||||||
• New valuation panel includes JLL | ||||||||
-5% | and CBRE alongside C&W | |||||||
• Effective from Q2 2020 | ||||||||
-10% | ||||||||
-15% | ||||||||
Anchor | MSU | Smaller | Anchor | MSU | Smaller | Anchor | MSU | Smaller |
units | units | units |
1 | Unit types: Anchor >50,000 sq ft, MSU 10-50,000 sq ft, Smaller units <10,000 sq ft | 17 |
Full-year financial results
Net debt analysis
Net debt analysis (£m)(1)
3,400 | |||||||||||||||||||||||||
3,200 | |||||||||||||||||||||||||
536 | |||||||||||||||||||||||||
3,000 | |||||||||||||||||||||||||
2,800 | 3,406 | ||||||||||||||||||||||||
174 | |||||||||||||||||||||||||
199 | |||||||||||||||||||||||||
428 | |||||||||||||||||||||||||
2,600 | 172 | ||||||||||||||||||||||||
110 | |||||||||||||||||||||||||
2,843 | |||||||||||||||||||||||||
2,400 | 27 | 37 | 2,415 | ||||||||||||||||||||||
2,200 | |||||||||||||||||||||||||
Net debt | Disposals, net of | Net cash inflow | Exchange and | Value Retail | VIA Outlets acqn | Capital | Dividends | Net debt | Retail park | Pro forma | |||||||||||||||
1 Jan 2019 | selling costs(2) | from operations | other flows | distribution | and capex | expenditure | 31 Dec 2019 | proceeds | net debt(3) |
1 | On a proportionally consolidated basis, excluding premium outlets | 18 |
2 | Principally reflects proceeds from the sale of Italie Deux (75%), Abbotsinch RP, St Oswald's RP, Parc Tawe and Dallow Road RP, excluding forward sale of Italik. | |
3 | Reflects net proceeds of £428m from disposal announced on 21 February 2020 of seven retail park portfolio and Abbey Retail Park, Belfast |
Full-year financial results
Credit ratios
31 Dec 2019 | 31 Dec 2019 31 Dec 2018 |
(pro forma)(1) |
Net debt
Cash and undrawn facilities
£2,415m £2,843m £3,406m
£1,638m £1,210m £729m
Group debt | Internal | 31 Dec 2019 | 31 Dec 2019 | 31 Dec 2018 | |||||||||||||
covenants | guidelines | (pro forma)(1) | |||||||||||||||
Gearing(2) | <150%/175% | <85% | 55% | 65% | 63% | ||||||||||||
Unencumbered Asset Ratio(3) | >1.50x | >1.75x | 2.08x | 1.89x | 2.13x | ||||||||||||
Interest cover(4) | >1.25x | >2.0x | n/a | 3.3x | 3.4x | ||||||||||||
LTV - headline(5) | no covenants | <40% | 35% | 38% | 38% | ||||||||||||
LTV - fully proportionally consolidated(6) | no covenants | <45% | 42% | 45% | 43% | ||||||||||||
Net debt/EBITDA | no covenants | <10x | 8.5x | 8.9x | 9.5x | ||||||||||||
See slides
70-71
1 | Reflects net proceeds of £428m from disposal announced on 21 February 2020 of seven retail park portfolio and Abbey Retail Park, Belfast | 19 |
2 | Covenant within the Group's unsecured bank facilities, bonds and private placement senior notes |
- Covenant within the Group's unsecured private placement senior notes only
- Covenant within the Group's unsecured bank facilities and private placement senior notes
- Loan excludes premium outlets net debt and value includes premium outlet net assets
- Includes VIA Outlets and Value Retail net debt and property values
Full-year financial results
Debt maturity profile
Debt maturity profile at 31 December 2019 (£m)(1)
Revolving credit facilities
floating linked to IBOR
Sterling bonds
4.7% wav coupon
Private placement
2.5% wav coupon
Euro bonds
2.0% wav coupon
Secured debt
2.1% wav coupon
900
800
700
600
500
400
300
200
100
0
2020 | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | 2027 | 2028 | 2029 | 2030 | 2031 |
1 | Group proportionally consolidated debt, excluding premium outlets. Interest rates are on a weighted average basis, post hedging | 20 |
derivatives
Full-year financial results
FY20 modelling assumptions
Planning for a challenging but transitional year
FY20 NRI:
- UK negative, weaker first half
- Ireland positive
- France positive
-
Premium outlets positive
Disposals: - -2pfrom Italie Deux
- -5pRetail Parks
Capex:
- £140m
Weighted average cost of borrowing:
- 2.6% (no change)
Admin costs:
- flat
Indicative 2020 EPS sensitivity to disposals, assuming
completion at 30 June, proceeds held as cash:
Disposals (£m) | ||||||
200 | 400 | 600 | 800 | 1000 | ||
Yield | 2% | 0.3 | 0.5 | 0.8 | 1.0 | 1.3 |
4% | 0.5 | 1.0 | 1.6 | 2.1 | 2.6 | |
6% | 0.8 | 1.6 | 2.3 | 3.1 | 3.9 | |
8% | 1.0 | 2.1 | 3.1 | 4.2 | 5.2 | |
p (EPS) |
21
See slides
72-74
Full-year financial results
Dividend to be rebased in 2020
2019 final dividend of 14.8p (no change), full year dividend of 25.9p (no change) due to:
- Confidence in debt reduction
- REIT & SIIC tax obligations - therefore 100% PID
2020 dividend to be rebased to a sustainable level
- Board adopting prudent approach
- Meet tax obligations
Board therefore expects to recommend 2020 full year dividend of 14p
- A clear departure from recent earnings linkage
- Usual H1/H2 phasing anticipated
- Cash savings: pay down debt; invest in the business
From 2021, growth from this minimum will be dependent on:
- Further disposals
- Rental income
- Strength of balance sheet
- Capital requirements for investment in the business
- Macro-economicfactors
- Health of the real estate sector
22
Strategic and operational review
Bullring and Grand Central, Birmingham
Strategic and operational review
Agenda
01 Diversity of portfolio
02 Flagships
03 Premium outlets
04 City Quarters
Pavilions, Swords
24
Diversity of portfolio
Diverse portfolio of leading pan-European destinations
Portfolio by value(1)
Developments
-
UK other(2) (9%)
9%
25%
Premium Outlets (34%)
Value Retail
VIA Outlets
9%
30%
16%
11%
Flagships (57%)
UK flagships
France flagships
Ireland flagships
FY19 operational statistics
15.0%
10.0%
5.0%
0.0%
-5.0%
-10.0%
-15.0%
UK flagships | France | Ireland | Value Retail VIA Outlets | ||||
flagships | flagships | ||||||
LFL NRI | Footfall | Leasing vs ERV | Leasing vs previous passing | ||||
See slides
52-53
1 | On a pro forma basis, reflects net proceeds of £428m from disposal announced on 21 February 2020 of seven retail park portfolio and Abbey Retail Park, Belfast | 25 |
2 | UK other includes Brent South retail park held for sale |
Diversity of portfolio
Diverse tenant base(1)
Hammerson and peers(2) : % of retail rent accounted for by top 10 tenants
100%
90%
80%
70%
60%
50%
40%
30%
20%
10%
0%
UK Peer
See slides
60-61
UK Peer | UK Peer | UK Peer | Hammerson | Euro Peer (3) | Euro Peer(3) | ||
1 | As at 31 December 2019, excluding Retail Parks | 26 | |||||
2 | Peers include: British Land, Capital & Regional, intu, Klepierre, Land Securities and URW. Data reflects most recently reported figures as at 24 February 2020. | ||||||
3 | Breakdown data of top 10 tenants unavailable for Klepierre and URW |
Flagships
Skate Southampton, Westquay
Flagships
Tenant restructuring: managing the challenge since December 2017
Restructuring impact on rent: Dec17 - Dec19(1) (£m)
149
units
14 | ||
12 | ||
10 | ||
8 | 44 | |
6 | ||
units | ||
4 | 38 | |
units | ||
£m | ||
2 | 3 | |
units | ||
0 | ||
-2 | ||
-4 | ||
-6 | ||
-8 |
UK flagships | UK Retail Parks/Other | France | Ireland | |||||
Post restructuring passing rent + | Annualised rent lost | |||||||
= | Pre restructuring passing rent | |||||||
Key flagships restructuring stats (two years to December 19):
-
234 units affected by restructuring
(149 units in UK flagships) - 9% of 2,700 units across group
- 11% of 1,400 units in UK flagships
- £14.5m run rate of group rent lost (4.5% of passing rent)(2)
- 48% of Hammerson UK flagship units subject to CVA in "no rent change" category vs 37% of market(3)
- Impacted UK flagships units: 91% trading, 70% with original occupier
1 | As at 31 December 2019. Includes all units affected by restructuring since 31 December 2017 | 28 | |
See slides | 2 | Run rate of passing rent lost reflects difference between pre-restructuring rent and rent at 31 December 2019 from units affected | |
3 | Analysis based on Hammerson leases impacted by CVAs between 31 December 2017 and 31 December 2019, weighted by Hammerson's share of passing rent pre-CVA | ||
58-59 |
Flagships
Leasing: 70% of flagship leasing at or above previous passing
Group, UK, France and Ireland flagship destinations FY19 leasing vs previous passing rent(1)
Group
UK
France
Ireland
0% | 10% | 20% | 30% | 40% | 50% | 60% | 70% | 80% | 90% | 100% | ||||
Leases below previous passing | Leases in line with previous passing | Leases above previous passing | ||||||||||||
1 | Reflects all leasing by income | 29 |
See slide 57
Flagships
Leasing: high street fashion remains most challenged category
UK flagship destinations leasing(1) vs previous passing rent by category - FY19 (£'000s)
200
150
100
50
-50
-100
-150
-200
-250
-300
-350
See slide 57
Type | £'000s | No. | % vs | |||||||||||||
previous | ||||||||||||||||
passing | ||||||||||||||||
High street fashion | 3,652 | 34 | -36% | |||||||||||||
Non-fashion consumer brands | 4,238 | 56 | +9% | |||||||||||||
F&B | 1,053 | 23 | +8% | |||||||||||||
Aspirational fashion | 1,444 | 18 | +8% | |||||||||||||
Leisure | 120 | 3 | +118% | |||||||||||||
Total | 10,507 134 | -13% | ||||||||||||||
% of flexible leases in portfolio(2) | ||||||||||||||||
Flagships: | % flexible | by passing rent | by ERV | |||||||||||||
leasing in 2019 | ||||||||||||||||
UK | 23% | 2.1% | 9.1% | |||||||||||||
France | 11% | 0.9% | 2.9% | |||||||||||||
Ireland | 28% | 2.1% | 6.9% | |||||||||||||
Total | 20% | 1.8% | 7.1% | |||||||||||||
1 All leasing, new and renewal, excluding storage and nine reconfigurations | 30 | |||||||||||||||
2 Lease term < 3 years |
Flagships
Shifting the occupier mix - UK
Mix | 2019 leasing | ERV | Rent | ||||||||||||||||||||
Category | Current | Current | Future | New | Renewals | Average | Average | Average of | |||||||||||||||
mix | mix | mix | leasing | by area | across | across | 2019 | ||||||||||||||||
by income | by area(1) | by area | by area | portfolio | portfolio | leasing | |||||||||||||||||
£/sq ft | £/sq ft | £/sq ft | |||||||||||||||||||||
Department stores | 6% | 38% | c.28% | nil | nil | 6 | 4 | n/a | |||||||||||||||
High street fashion | 16% | 15% | c.10% | Nil | 58% | 31 | 29 | 21 | |||||||||||||||
(traditional) | |||||||||||||||||||||||
F&B | 15% | 9% | c.12% | 27% | 2% | 43 | 40 | 59 | |||||||||||||||
High street fashion | 14% | 8% | c.12% | nil | 9% | 47 | 46 | 48 | |||||||||||||||
(contemporary) | |||||||||||||||||||||||
Non-fashion and | 36% | 17% | c.20% | 53% | 22% | 54 | 53 | 62 | |||||||||||||||
consumer brands | |||||||||||||||||||||||
Leisure/events | 5% | 7% | c.10% | 1% | 3% | 17 | 16 | 21 | |||||||||||||||
Fashion (aspirational) | 8% | 3% | c.8% | 19% | 6% | 63 | 57 | 57 | |||||||||||||||
1 | Excludes 3% vacant space | 31 |
Flagships
Proactive portfolio management: repurposing department stores
House of Fraser
Dundrum, Dublin
13,200m2
House of Fraser
The Oracle Reading
13,300m2
Dundrum
Ireland's leading luxury retail store, Brown Thomas, is to open a flagship store
£14m | >12% |
project | forecast |
cost(1) | YOC |
The Oracle
innovative leisure,
F&B and flagship retail
£13m | >7% |
project | forecast |
cost(1) | YOC |
1 | At Hammerson's 50% ownership share | 32 |
See slide 82
Flagships
Footfall compares favourably with national indices(1)
UK- strong polarisation | |||||
4% | |||||
2% | |||||
0% | |||||
-2% | |||||
-4% | |||||
-6% | |||||
-8% | |||||
Jan | Feb Mar Apr May Jun Jul | Aug Sep Oct Nov Dec Jan Feb Mar Apr May | Jun Jul | Aug Sep Oct Nov Dec | |
2018 | 2019 | ||||
Hammerson | UK National Index | Cabot Circus Christmas lights switch on | |||
France & Ireland - tracking broadly in line with more stable markets
4% | ||||||
3% | ||||||
2% | ||||||
1% | ||||||
0% | ||||||
-1% | ||||||
-2% | ||||||
-3% | ||||||
-4% | ||||||
-5% | ||||||
Jan | Feb Mar Apr May Jun Jul | Aug Sep Oct Nov Dec Jan | Feb Mar Apr May Jun | Jul | Aug Sep Oct Nov Dec | |
2018 | 2019 | |||||
Hammerson | France National Index |
8% | ||||
6% | ||||
4% | ||||
2% | ||||
0% | ||||
-2% | ||||
-4% | ||||
-6% | ||||
Jan Feb Mar Apr May Jun | Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun | Jul Aug Sep Oct Nov Dec | ||
2018 | 2019 | 33 | ||
Hammerson | Ireland National Index |
1 | Hammerson flagships footfall vs national index three month moving average. Index source: Shoppertrak (index data restated since HY19 results) |
Flagships
Customer experience and innovation are driving commercial benefits
Super Events
Village Noël, Les Terrasses du Port | Festival of Light, Dundrum | The Maze & Urban Treehouse, | ||
Westquay | ||||
+11.1% footfall | +8.7% footfall | +2.7% footfall | |||
+13% social media engagement | +169% social media engagement | +156% social media engagement | |||
Year on year footfall changes. Source: ShopperTrak | 34 |
Social Media Engagement is defined in 'Impressions'; the number of times that any content associated with the event page was displayed to a user during the reporting period. This includes both organic and paid activity. Source: Sprout Social
Flagships
Customer experience and innovation are driving commercial benefits
Frictionless parking
Last mile fulfilment
rooms Family
labour Flexible
35
Flagships
Physical space is key to success of retail brands
Higher | Drives web |
conversion | traffic and |
rates than | engagement |
online
Cheaper for
online fulfilment
and returns
36
Flagships
Physical retail offers competitive acquisition and distribution cost
Operational Acquisition
Cost per visitor | 50p - 170p | 9p - 95p |
occupancy costs(1) | visitor costs(2) | |
In-store conversion rate | c.25-50%(3) | c.2-4%(4) |
Acquisition cost per sale(5) | £1.00+ | £2.25+ |
Merchant payment cost(2) | 1.2% | 1.7 - 2.5% |
Logistics costs(6) | 2-5% | 5-15% |
Returns rate(6) | 5-10% | 15-40% |
Cost per return(6) | 70p - £1 | £2 - £3 |
Based on fashion sector. Sources:
- Hammerson footfall by unit trial (Sept-Dec 2019 data annualised) and annual occupancy costs by unit
- Practicology
- Hammerson exit surveys
- Practicology / IRP
5 | Calculation based on lower end of cost per store visitor range and higher end of in-store | 37 |
conversion range to create a minimum implied acquisition cost per sale | ||
6 | Accenture |
Flagships
The path towards stabilisation of UK rents
Upward pressures on rents
Online rent increasing
Physical retail proven to drive awareness and reduce costs
Polarisation of footfall and vibrancy
Retailers making progress on right-sizing of portfolios
Increasing consumer confidence, employment, wages
Downward pressures on rents
Uncertain macroeconomic backdrop
Cyclical increase in costs
Structural pressure from online
Leasing structure
Excess retail space
Tenant restructuring
38
Premium outlets
Hede Fashion Outlet, Gothenburg
Premium outlets
2019 operational update
Value | VIA | |||
Retail(1) | Outlets(1) | |||
Gross Asset Value (£m) | 1,966 | 693 | ||
Net Asset Value (£m) | 1,506 | 445 | ||
Brand sales growth (%) | 9 | 8 | ||
Footfall growth (%) | 5 | 6 | ||
Average sales density | 9 | 2 | ||
growth (%) | ||||
Like-for-like NRI growth (%) | 13 | 6 | ||
Occupancy (%) | 97 | 93 | ||
Premium outlets value creation (£m)
8 year IRR - 22% | |||||
1,800 | |||||
1,600 | |||||
1,400 | |||||
1,200 | |||||
1,000 | 1,276 | ||||
800 | (149) | 1,711 | |||
600 | 683 | (313) | |||
400 | |||||
200 | |||||
214 | |||||
0 | NAV Dec-19(2) | ||||
NAV Jan-12 | Capital | Distributions - Distributions - | Valuation | ||
invested | operating | refinancing | uplift |
1 | With the exception of property valuations and like-for-like net rental income growth, figures reflect overall portfolio performance, not Hammerson's ownership share | 40 | |
See slides | 2 | Premium outlets IFRS NAV as at 31 December 2019 includes liabilities in respect of distributions received in advance of £24m which will be repayable upon disposal of stakes in Value Retail | |
91-97 |
Premium outlets
Diverse customer base underpins progressive sales growth
2019 tax free sales (TFS) as a proportion of total sales(1)
Value Retail: TFS customers 26% of total sales
China
S. Korea
9%Russia
2%
1%
Other 14%
Domestic and
European sales
74%(2)
VIA Outlets: TFS customers 4% of total sales
Brazil China
Angola
0.6% 0.5%
0.4%
Other 2.5%
Domestic and
European sales
96%(2)
1 | Portion of total TFS as at 31 December 2019. Source: Global Blue and Premier Vision | 41 |
2 | Including non tax-free overseas sales |
Premium outlets
Diverse customer base underpins progressive sales growth
Premium outlets sales (€m)(1)(2)
3,500 | ||||
3,000 | ||||
2,500 | ||||
Bird flu | ||||
2,000 | ||||
1,500 | MERs | |||
1,000 | Swine flu | |||
GFC | ||||
500 | ||||
SARS | ||||
0 | ||||
1998 | 2003 | 2008 | 2013 | 2018 |
Value Retail | VIA Outlets |
1 | The sales figures have been restated at constant FX rates | 42 |
2 | The sales figures show absolute reported sales figures, which includes acquisitions and developments |
City Quarters
Dublin Central
City Quarters
Beyond retail
>100 acres of City Quarters potential
See slide 99
6,600
residential units
1,600
Dundrum Phase 2, Dublin
hotel rooms | Callowhill Court, Bristol |
9
parks and public spaces
300,000m2
work space
The Goodsyard, London | Dublin Central | |||
44
City Quarters
2019 progress
Martineau Galleries, Birmingham | The Podium at Dundrum, Dublin | Leeds Hotel, Victoria | ||
Planning committee approval | Planning committee approval | Planning committee approval | ||||||
7.5 acres 1,300 residential units | 107 apartments | 205 rooms | ||||||
130,000m2 of workspace | Gym, lounge and terrace and co-working space | In discussions with major international hotel operator | ||||||
400 hotel rooms | On-siteH2 2020 | Planned start H2 2020 | ||||||
Next planning submission H2 2021 | ||||||||
45
Conclusion
Festival of Light, Bullring & Grand Central, Birmingham
Conclusion
Near-term will remain challenging but confident in long-term value creation
Balance sheet strength | Evolve our spaces | Beyond retail | |||
Reducing debt, repurposing and recycling capital
into more diverse prime portfolio
Disposals will impact | Strong pipeline of |
Flagships | Premium Outlets | City Quarters | ||||
47
Questions
Highcross, Leicester
Additional disclosure
Festival of light, Westquay, Southampton
Contents
01 | Group |
02 | Net Positive |
03 | UK flagship destinations |
04 | France flagship destinations |
05 | Ireland flagship destinations |
06 | Premium outlets |
07 | City Quarters |
50
01 Group
Bullring & Grand Central, Birmingham
Additional disclosure: Group
Distinctive market characteristics help explain variation in performance
UK | France | Ireland | ||||
Macro backdrop | ▲ Low unemployment and | ▲ Stable consumer outlook | ▲ Strong economic growth | |||
increasing wages | ▼ Occasional political unrest | ▼ Near-term uncertainty over | ||||
▼ Low consumer confidence | Brexit and general election | |||||
▼ Cyclical cost pressures |
Premium Outlets
- Diverse exposure to highly affluent European and Global customer base
- Near-termrisk from Coronavirus
Leasing structures | ▼ Legacy of longer-terms and | ▲ Indexation and three-year | ||
upward only rent reviews | break clauses | |||
Geography | ► High population density | ► Lower population density | ||
▼ Pure play online more | ▲ Lower online penetration | |||
disruptive | ▲ Footfall only high in primary | |||
▲ High footfall in urban | urban locations | |||
locations | ||||
Culture | ► Enthusiastic adopters of | ▲ More leisure time | ||
omnichannel | ▲ Daily visit to supermarket | |||
▼ Less leisure time | anchor common | |||
▲ Increasing focus on big day | ||||
out | ||||
Online penetration(1) | c.17% - growth slowing | c.11% |
- Upward only rent reviews banned for new leases
- Low population density ▲ Lower online penetration
- Dublin only urban location of scale
- Lack of postcodes until 2015 means greater focus on click & collect
c.10%
- Highly flexible model
- Risk-sharingfrom turnover component
- Located near affluent conurbations
- Best locations able to attract high tourist traffic
- Strong growth in Global demand for luxury goods
12% - very limited appetite from luxury brands for online discounting
Retail sales growth | 3.3% | 3.1% | 5.0% | 8.8% |
(5yr CAGR)(2)(3)
1 | Source: GlobalData | 52 |
2 | Source: Oxford economics. National sales growth 2014-2019. | |
3 | Premium outlet figure represents Value Retail sales growth due to lack of publicly available data. |
Additional disclosure: Group
Group statistics
2019 | UK | Ireland | France | Retail | Premium | ||||||
parks | outlets | ||||||||||
Occupancy (%) | 97 | 100 | 97 | 97 | 95 | ||||||
Leasing activity (£m) | 11 | 2 | 6 | 3 | n/a | ||||||
Leasing vs. ERV (%)(1) | -8 | -2 | +5 | +1 | n/a | ||||||
Leasing vs. previous passing (%)(1) | -11 | +9 | +9 | -10 | n/a | ||||||
In-store retail sales (%)(2) | -2 | n/a | +3 | n/a | +9 | ||||||
Footfall (%)(3) | +1 | +2 | +2 | +1 | +5 | ||||||
2018 | |||||||||||
Occupancy (%) | 98 | 99 | 97 | 97 | 94 | ||||||
Leasing activity (£m) | 14 | 3 | 7 | 2 | n/a | ||||||
Leasing vs. ERV (%)(1) | +5 | +8 | +5 | +11 | n/a | ||||||
Leasing vs. previous passing (%)(1) | +1 | +28 | +5 | +19 | n/a | ||||||
In-store retail sales (%)(2) | -3 | n/a | +2 | n/a | +8 | ||||||
Footfall (%)(3) | -2 | -2 | +3 | -1 | +4 |
1 | Principal leases only | 53 |
2 | Sales: UK benchmark -2.2% (Source: Visa) premium outlets YoY. Retail sales on same-centre basis. | |
3 | Footfall: UK benchmark -4.6%, Ireland: -0.2% (source: Shoppertrak), France: +0.3% (source: CNCC), Retail parks +0.1% (source: Springboard), premium outlets YoY |
Additional disclosure: Group
H1 flagships LfL NRI analysis
H1 2019 LfL NRI analysis
Tenant restructuring
Leasing(1)
Void costs
Surrender premiums
Marketing
Car park, commercialisation and other
UK flagships
-1.8%
-0.6%
-1.4%
-0.2%
-0.6%
-2.1%
France flagships
-1.3%
2.2%
-0.7%
0.1%
-0.2%
Ireland flagships
-4.1%
1.0%
-0.5%
-2.1%
-1.7%
Total | -6.8% | 0.1% | -7.4% |
1 | Includes rent reviews and indexation | 54 |
Additional disclosure: Group
2019 Group leasing performance cumulative
2019 leasing and cumulative vs 2018(1) (£m)
4.0 | 30 | |
3.5
25
3.0
20
2.5
2.0 | 15 |
1.5
10
1.0
0.5 | 5 | |||||||||||||||||||||||||||||||||
0.0 | 0 | |||||||||||||||||||||||||||||||||
January | February | March | April | May | June | July | August | September | October | November | December | |||||||||||||||||||||||
Monthly leasing 2019 (LHS) | Cumulative leasing activity 2018 (RHS) | Cumulative leasing activity 2019 (RHS) | ||||||||||||||||||||||||||||||||
Flagship leasing | Dec 19 | Dec 18 | |||
volumes | £m | £m | |||
UK | 11.2 | 14.4 | |||
France | 6.0 | 7.3 | |||
Ireland | 2.1 | 2.6 | |||
Total | 19.3 | 24.3 | |||
1 | Includes retail parks and other | 55 |
Additional disclosure: Group
2019 portfolio leasing key metrics
Leasing vs previous | Leasing vs ERV | Like-for-like ERV | New rent secured | |||||
passing (%)(1) | (%)(1) | growth | from leasing | |||||
(%) | (£m)(2) | |||||||
UK flagships | -11.1 | -8.1 | -8.6 | 11.2 | ||||
France flagships | 8.3 | 5.0 | -1.9 | 6.0 | ||||
Ireland flagships | 9.5 | -1.5 | 1.2 | 2.1 | ||||
UK retail parks | -10.3 | 0.9 | -6.7 | 2.6 | ||||
Group | -4.1 | -2.8 | -5.9 | 22.6 |
1 | Principal leases only | 56 |
2 | Total group leasing includes UK Other £0.7m |
Additional disclosure: Group
Leasing: UK remains most challenging
UK, France and Ireland flagship destinations FY19 leasing vs previous passing rent and ERV
UK | France | Ireland | ||||||||||
Type | £'000s % vs previous | % vs ERV | £'000s | % vs previous | % vs ERV | £'000s | % vs previous | % vs ERV | ||||
passing | passing | passing | ||||||||||
Principal | 6,167 | -11% | -4% | 3,659 | 8% | 6% | 834 | 9% | 7% | |||
Flexible | 2,441 | -38% | -57% | 516 | -70% | -75% | 490 | 23% | -7% | |||
Flexible/ | 1,899 | 60% | -18% | 422 | 240% | -3% | 419 | 103% | -16% | |||
vacant to principal | ||||||||||||
Total(2) | 10,507 | -13% | -28% | 4,597 | -8% | -19% | 1,743 | 27% | -3% |
Leasing performance varies by type
- Broad range of leasing performance in all markets
- UK suffering from lack of rental tension and highest proportion of flexible leasing
- Stronger rental tension in France and Ireland underpins ability to convert flexible/vacant units back to principal leases on attractive terms
1 | Based on passing rent, as at 31 December 2019 | 57 |
2 | Excludes storage and reconfigurations |
Additional disclosure: Group
Run rate of tenant restructuring in the UK & Ireland
Units in CVA or administration by month since January 2018
25
20
15
10
5
0
(1)
1 | Passing rent of Jan 2020 tenant restructuring £0.4m | 58 |
Additional disclosure: Group
Tenant restructuring: 31 December 2017 - 31 December 2019
UK | France | Ireland | UK | UK | Group | |||||||||||
flagships | flagships | flagship | retail parks | other | ||||||||||||
Number of units impacted | 149 | 38 | 3 | 27 | 17 | 234 | ||||||||||
Passing rent pre restructuring (£m) | 21.6 | 2.7 | 1.9 | 6.3 | 2.4 | 34.9 | ||||||||||
Current passing rent lost - 31 December 2019 (£m) | 7.5 | 1.4 | 1.7 | 2.5 | 1.4 | 14.5 | ||||||||||
% of Group passing rent - 31 December 2019(1) | 2.5% | 0.5% | 0.5% | 0.8% | 0.5% | 4.8% | ||||||||||
1 | Group passing rent £300.8m | 59 |
Additional disclosure: Group
Top 20 tenants exposure(1)
Retailer
H&M
Inditex
Next
River Island
Boots
John Lewis PLC
Debenhams
JD Sports
CK Hutchison Holdings
Superdry
Rental
Exposure (£m)
8.7
8.4
4.7
4.1
3.9
3.7
3.1
3.0
2.9
2.9
% of
passing % of NIA rent
3.4% 1.8%
3.3% 1.7%
1.8% 1.9%
1.6% 1.4%
1.5% 0.7%
1.5% 1.0%
1.2% 6.3%
1.2% 0.5%
1.1% 4.0%
1.1% 0.5%
Retailer | Rental | |
Exposure (£m) | ||
TK Maxx | 2.4 | |
Printemps | 2.4 | |
Signet | 2.3 | |
SportsDirect | 2.3 | |
Arcadia | 2.1 | |
Natl Amusements | 1.9 | |
Mulliez | 1.8 | |
Watches of | 1.7 | |
Switzerland | ||
Apple | 1.7 |
% of
passing % of NIA rent
0.9% 0.9%
0.9% 1.2%
0.9% 0.2%
0.9% 3.6%
0.8% 0.2%
0.7% 0.4%
0.7% 0.8%
0.7% 1.2%
0.7% 0.2%
New Look
2.5
1.0% 0.5%
TOTAL | 66 | 26% | 29% |
1 | Ranked by passing rent as at 31 December 2019, excludes retail parks | 60 |
Additional disclosure: Group
Only one occupier accounts for >2% of group rent from any region(1)
UK
Rental | % of | % of | |||||
Retailer | exposure | passing | |||||
(£m) | rent | NIA | |||||
H&M | 5.3 | 2.06% | 1.40% | ||||
Inditex | 4.8 | 1.87% | 1.20% | ||||
Next | 3.8 | 1.47% | 1.62% | ||||
John Lewis PLC | 3.7 | 1.46% | 6.30% | ||||
Boots | 3.1 | 1.23% | 0.88% | ||||
Debenhams | 3.1 | 1.22% | 3.97% | ||||
River Island | 2.4 | 0.92% | 0.56% | ||||
Superdry | 2.1 | 0.82% | 0.38% | ||||
JD Sports | 2.1 | 0.80% | 0.40% | ||||
CK Hutchison | 2.0 | 0.77% | 0.40% | ||||
Holdings | |||||||
Total | 32 | 13% | 17% | ||||
France
Rental | % of | % of | ||||
Retailer | exposure | passing | ||||
(£m) | rent | NIA | ||||
Printemps | 2.4 | 0.93% | 1.41% | |||
Mulliez | 1.8 | 0.70% | 0.37% | |||
H&M | 1.7 | 0.67% | 0.32% | |||
Groupe Etam | 1.7 | 0.65% | 0.21% | |||
Groupe Inditex | 1.6 | 0.64% | 0.50% | |||
Armand Thiery | 1.4 | 0.55% | 0.20% | |||
Vivarte | 1.4 | 0.55% | 0.19% | |||
UGC | 1.2 | 0.47% | 0.94% | |||
Rallye | 1.0 | 0.41% | 0.42% | |||
Punto Fa | 0.8 | 0.32% | 0.11% | |||
Total | 15 | 6% | 5% | |||
Ireland
Rental | % of | % of | ||||||
Retailer | exposure | passing | ||||||
(£m) | rent | NIA | ||||||
SportsDirect | 2.3 | 0.90% | 0.70% | |||||
Inditex | 2.0 | 0.77% | 0.30% | |||||
River Island | 1.7 | 0.66% | 0.18% | |||||
H&M | 1.7 | 0.65% | 0.30% | |||||
Marks & Spencer | 1.2 | 0.45% | 0.63% | |||||
Primark | 0.9 | 0.36% | 0.27% | |||||
Next | 0.9 | 0.36% | 0.26% | |||||
TK Maxx | 0.8 | 0.32% | 0.40% | |||||
RSA | 0.8 | 0.31% | 0.33% | |||||
Boots | 0.8 | 0.30% | 0.14% | |||||
Total | 13 | 5% | 4% | |||||
1 | As at 31 December 2019, excluding retail parks | 61 |
Additional disclosure: Group
OCRs do not reflect store value and are not comparable between sector, peer or country
Do not reflect value
- A store's value is not only till sales, but click & collect, returns and driving online sales
- OCRs ignore margin and staff costs which can vary widely by retailer
Average hides wide
variance
Not comparable between peers
Not comparable
between countries
Low | High street fashion avg: 27% | High |
10% | 52% | |
- Hammerson OCRs only represent flagships. OCRs for retail parks and premium outlets are significantly lower
- Our peers present their OCRs as a blended average of all assets
- Hammerson UK blended flagships and retail parks OCR is 17.3%
- Same retailer in France and the UK will have very different costs beyond occupancy e.g. hourly staff costs 30% higher in France(1), distribution costs 50% higher in France(2)
- Also rate of channel shift is very different; UK c.17% and France c.11% distorting OCRs(3)
1 | Source: Eurostat | 62 |
2 | Source: Javelin Group | |
3 | Source: Global Data |
Additional disclosure: Group
OCRs do not reflect store value and are not comparable between sector, peer or country
OCRs remain consistent across both markets
2018 | 2019 | ||||||||
UK | France | UK | France | ||||||
flagships | flagships | flagships | flagships | ||||||
Rent: sales | 13.3% | 10.7% | 12.7% | 10.4% | |||||
OCR | 22.6% | 13.7% | 22.2% | 13.4% | |||||
- OCRs in UK and France not comparable due to differing costs structures for retailers in UK and France. Higher staff and distribution costs in France impact rental affordability
- Also rate of channel shift is very different UK c.17% and France c.11% distorting OCRs
% Fashion sales P&L(1) | UK retail | French retail | ||||
Business rates | 6-7% | 1-2% | ||||
Staff costs | 8% | 15% | ||||
Distribution costs | 1.5% | 2% | ||||
1 | Source: Javelin Group | 63 |
Additional disclosure: Group
2019 valuation data (NIY)
UK | France | Ireland | UK retail | UK other | Total |
flagships | flagships | flagships | parks | portfolio |
NIY (%)
31 Dec 2019
30 Jun 2019
31 Dec 2018
Change 6m (pp)
Change 12m (pp)
5.5 | 4.1 | 4.1 | 7.3 | 7.4 | 5.1 | |||||||||
5.2 | 3.8 | 4.0 | 6.8 | 6.0 | 4.8 | |||||||||
4.8 | 3.7 | 3.9 | 6.0 | 5.7 | 4.6 | |||||||||
0.3 | 0.3 | 0.1 | 0.5 | 1.4 | 0.3 | |||||||||
0.7 | 0.4 | 0.2 | 1.3 | 1.7 | 0.5 |
64
Additional disclosure: Group
2019 valuation data (ERV)
UK | France | Ireland | UK retail | UK other | Total |
flagships | flagships | flagships | parks | portfolio |
ERV (£m)
31 Dec 2019
30 Jun 2019
31 Dec 2018
LfL change
6 months (%)
LfL change
12 months (%)
154.5 | 65.1 | 42.2 | 42.5 | 12.0 | 316.3 | |||||||||
164.0 | 89.9 | 45.3 | 53.9 | 12.9 | 366.0 | |||||||||
169.3 | 89.3 | 45.3 | 59.7 | 13.3 | 376.9 | |||||||||
-6.1 | -3.0 | 1.6 | -1.3 | -8.6 | -3.9 | |||||||||
-8.6 | -1.9 | 1.2 | -6.7 | -11.4 | -5.9 |
65
Additional disclosure: Group
2019 valuation data (TEY)
UK | France | Ireland | UK retail | UK other | Total |
flagships | flagships | flagships | parks | portfolio |
True equivalent yield
(%)
31 Dec 2019
30 Jun 2019
31 Dec 2018
Change 6m (pp)
Change 12m (pp)
6.2 | 4.7 | 4.7 | 7.6 | 9.4 | 5.8 | |||||||||
5.9 | 4.5 | 4.6 | 7.2 | 8.7 | 5.5 | |||||||||
5.5 | 4.3 | 4.5 | 6.8 | 8.0 | 5.3 | |||||||||
0.3 | 0.2 | 0.1 | 0.4 | 0.7 | 0.3 | |||||||||
0.7 | 0.4 | 0.2 | 0.8 | 1.4 | 0.5 |
66
Additional disclosure: Group
Widening spreads underpin institutional interest in prime assets
Historical NIYs, Hammerson flagships vs 10year gilt/bund
7.00%
6.00%
5.00%
4.00%
3.00%
2.00%
1.00%
0.00%
-1.00%
Dec-05 | Dec-06 | Dec-07 | Dec-08 | Dec-09 | Dec-10 | Dec-11 | Dec-12 | Dec-13 | Dec-14 | Dec-15 | Dec-16 | Dec-17 | Dec-18 | Dec-19 |
Hammerson UK | Hammerson France | Hammerson Ireland | 10 year gilt | 10 year bund | ||||||||||
67
Additional disclosure: Group
Reconciliation to new EPRA measures as at 31 December 2019
(£ million) | Old metrics | Old metrics | New metrics(1) | |||||||||||||||
NAV | NNNAV | NRV | NTA | NTV | ||||||||||||||
IFRS NAV | 4,377.0 | 4,377.0 | 4,377.0 | 4,377.0 | 4,377.0 | |||||||||||||
Dilutive share schemes | 1.6 | 1.6 | 1.6 | 1.6 | 1.6 | |||||||||||||
Diluted NAV | 4,378.6 | 4,378.6 | 4,378.6 | 4,378.6 | 4,378.6 | |||||||||||||
Exclude: deferred tax | 270.7 | 270.7 | 270.7 | 270.7 | − | |||||||||||||
Exclude: fair value of interest rate swaps | 19.9 | 19.9 | 19.9 | 19.9 | − | |||||||||||||
Exclude: goodwill as a result of deferred tax | (70.6) | (70.6) | (70.6) | (70.6) | − | |||||||||||||
Include: property transfer taxes | − | − | 522.2 | − | − | |||||||||||||
Include: fair value of currency swaps as a | − | − | 17.0 | 17.0 | − | |||||||||||||
result of changes in interest rates | ||||||||||||||||||
Include: goodwill per IFRS balance sheet | − | − | − | (27.6) | (98.2) | |||||||||||||
Include: fair value of borrowings | − | (183.3) | − | − | (183.3) | |||||||||||||
Total | 4,598.6 | 4,415.3 | 5,137.8 | 4,588.0 | 4,097.1 | |||||||||||||
Per share (p) | 601 | 577 | 671 | 599 | 535 | |||||||||||||
1 | Unaudited | 68 |
Additional disclosure: Group
Key disposals achieved 2018 - 2020
NIY | Proceeds(1) | Buyer | ||||
(%) | £m | |||||
2018: | ||||||
Battery Retail Park, Selly Oak | 6.0 | 58 | NFU Mutual | |||
Wrekin Retail Park, Telford | 7.4 | 35 | Ediston/Europa | |||
Imperial Retail Park, Bristol/Fife Central Retail Park, Kirkcaldy | 7.4 | 164 | Capreon (private equity) | |||
Highcross, Leicester (50%) | 5.5 | 236 | Asian investor, introduced by | |||
M&G Real Estate | ||||||
2019: | ||||||
Dallow Road, Luton | 7.6 | 24 | Private equity | |||
Italie Deux, Paris (75%) | 4.1 | 363 | AXA | |||
Abbotsinch, Paisley | 7.8 | 67 | Ashby Capital | |||
St Oswald's Retail Park, Gloucester | 8.5 | 54 | Local authority | |||
Parc Tawe, Swansea | 4.7 | 22 | Private investor | |||
2020: | ||||||
Abbey, Belfast | 8.4 | 33 | Slate Asset Management | |||
Portfolio of seven retail parks(3) | 8.9 | 400 | Orion European Real Estate Fund V | |||
Total 2018 - 2020 YTD(2) | 1,456 |
1 | Gross proceeds | 69 |
2 | Total annual gross proceeds (includes ancillary disposals): 2018 - £570m , 2019 - £542m, 2020 - £433m (YTD) | |
3 | Central, Cleveland, Cyfarthfa, Elliott's Field, Telford Forge, Ravenhead, The Orchard Centre (Didcot) |
Additional disclosure: Group
Gearing sensitivity(1)
Reduction in Group values(2)
Disposals (£m)(3) | |||||||||||
0 | 100 | 200 | 300 | 400 | 500 | 600 | 700 | 800 | 900 | 1000 | |
0% | 55% | 53% | 51% | 48% | 46% | 44% | 41% | 39% | 37% | 35% | 32% |
5% | 61% | 58% | 56% | 53% | 51% | 48% | 46% | 43% | 41% | 38% | 36% |
10% | 67% | 64% | 62% | 59% | 56% | 53% | 51% | 48% | 45% | 42% | 39% |
15% | 76% | 72% | 69% | 66% | 63% | 60% | 57% | 54% | 51% | 47% | 44% |
20% | 86% | 83% | 79% | 76% | 72% | 68% | 65% | 61% | 58% | 54% | 51% |
25% | 100% | 96% | 92% | 88% | 84% | 80% | 75% | 71% | 67% | 63% | 59% |
1 | Reflects net proceeds of £428m from disposal announced on 21 February 2020 of seven retail park portfolio and Abbey Retail Park, Belfast | 70 |
2 | Gearing sensitivity on changes in pro-forma 31 December 2019 values and future disposal proceeds | |
3 | Calculations assume disposals are achieved at 31 December 2019 book values |
Additional disclosure: Group
LTV methodology
31 December 2019 | 31 December 2019 | 31 December 2018 | |||||||||||
(pro forma)(1) | |||||||||||||
Headline | Fully proportionally | Headline | Fully proportionally | Headline | Fully proportionally | ||||||||
Net debt | (£m) | consolidated (£m) | (£m) | consolidated (£m) | (£m) | consolidated (£m) | |||||||
Group | 2,415 | 2,415 | 2,843 | 2,843 | 3,406 | 3,406 | |||||||
VIA Outlets | - | 238 | - | 238 | - | 242 | |||||||
Value Retail | - | 658 | - | 658 | - | 658 | |||||||
Loan | 2,415 | 3,311 | 2,843 | 3,739 | 3,406 | 4,306 | |||||||
Property values | |||||||||||||
Group
VIA Outlets
Value Retail
VIA Outlets net assets
Value Retail net assets
5,245 | 5,245 | 5,668 | 5,668 | 7,480 | 7,480 | ||||||
- | 693 | - | 693 | - | 636 | ||||||
- | 1,966 | - | 1,966 | - | 1,823 | ||||||
379 | - | 379 | - | 326 | - | ||||||
1,355 | - | 1,355 | - | 1,211 | - |
Value | 6,979 | 7,904 | 7,402 | 8,327 | 9,017 | 9,939 | |
LTV | 35% | 42% | 38% | 45% | 38% | 43% | |
1 Reflects net proceeds of £428m from disposal announced on 21 February 2020 of seven retail park portfolio and Abbey Retail Park, Belfast | 71 | ||||||
Additional disclosure: Group
Capex and guidance
Capex 2019-2021 | |||||||||
Committed | 2019 | 2020 | 2021 | ||||||
Actual | Forecast | Forecast | |||||||
£m | £m | £m | |||||||
On-site developments(1) | |||||||||
58 | 63 | 35 | |||||||
Other committed capex(2) | 7 | 15 | 15 | ||||||
Discretionary | |||||||||
Flagship destination investment | 31 | 42 | 60 | ||||||
City Quarters | 6 | 20 | 20 | ||||||
Total | 102 | (3) | 140 | 130 | |||||
1 | Completion of Les 3 Fontaines and Italik extensions | 72 |
2 | Other committed caoex reflects land assembly related costs at Croydon and The Goodsyard | |
3 | Excludes amortisation of tenant incentives. 2019: -£5m |
Additional disclosure: Group
Maintenance capex - FY 2019
Service charge (maintenance)
UK | France | Ireland | Total |
flagships | flagships | flagships |
Service charge income (£m) | 34 | 22 | 13 | 69 | ||||
Maintenance expenditure within service charge (£m) | 8 | 4 | 1 | 13 | ||||
Examples: | ||||||||
Painting, flooring upkeep, M&E: CCTV, wifi , IT systems maintenance |
Capital expenditure
Gross rental income (£m) | 158 | 82 | 42 | 282 |
Capital expenditure - no additional area (£m) | 10 | 8 | 1 | 19 | ||||
Yield on cost from capital expenditure - no additional area (%) | 4% | 3% | 1% | 3% | ||||
Capital expenditure - no additional area: gross rental income (%) | 7% | 9% | 3% | 7% | ||||
Examples: | ||||||||
Income accretive: Repurposing and reconfiguration, capital contributions, digital screens |
Other (partly recoverable from tenants): Wayfinding projects, WC upgrades, LED relamping, seating upgrades, family rooms, smart metering
73
Additional disclosure: Group
Maintenance capex - FY 2018
Service charge (maintenance)
UK | France | Ireland | Total |
flagships | flagships | flagships |
Service charge income (£m) | 36 | 25 | 12 | 73 | ||||
Maintenance expenditure within service charge (£m) | 7 | 4 | 2 | 13 | ||||
Examples: | ||||||||
Painting, flooring upkeep, M&E: CCTV, wifi , IT systems maintenance |
Capital expenditure
Gross rental income (£m) | 178 | 84 | 44 | 306 |
Capital expenditure - no additional area (£m) | 28 | 25 | - | 53 | ||||
Yield on cost from capital expenditure - no additional area (%) | 8% | 4% | n/a | 6% | ||||
Capital expenditure - no additional area: gross rental income (%) | 16% | 30% | n/a | 17% | ||||
Examples: | ||||||||
Income accretive: Repurposing and reconfiguration, capital contributions, digital screens |
Other (partly recoverable from tenants): Wayfinding projects, WC upgrades, LED relamping, seating upgrades, family rooms, smart metering
74
02 Net Positive
Declutter to refresh, Cabot Circus, Bristol
Additional disclosure: Group
FY20 a pivotal year for Net Positive
Net Positive carbon emissions (tonnes CO2e) | 2015 | 2019 | 2020 | |
baseline(1) | outcome | Forecast | (2) |
35,000
30,500
30,000
27,500
25,400
25,000
20,000 | 17,900 |
15,000 | 12,200 |
10,000 | 8,600 |
5,000
0
2015 | 2016 | 2017 | 2018 | 2019 | 2020 |
Carbon
tonnes CO2e
Water
M3 (3)
Resource use
tonnes(4)
30,500 12,241 8,600
336,000 196,000 152,000
8,539 3,414 2,820
Beehives at The Oracle rooftop, Reading
1 | Net Positive Phase One (2016-2020) figures are calculated for the group on proportionate ownership basis | 76 |
2 | Offsets will be required to reach Net Positive | |
3 | Landlord only | |
4 | Net of recycling |
Delivering against our Positive Places Strategy
Our progress against 2019 plans
2019 Target | Progress |
Reducing energy demand across the managed retail portfolio by | 12% reduction achieved |
a further 11% | |
Installing additional renewable electricity capacity at three sites | 2 completed 2019, 1 completed |
Jan 2020 | |
Reviewing our energy procurement model to leverage additional | Market review completed and |
renewable capacity and offer grid balancing | new strategy in progress |
Working with retailers to support efficiency improvements | Worked with 200+ retailers to |
through fit out | improve fit out standards |
Embedding Positive Places within City Quarters concept | Sustainability a key USP for our |
City Quarters concept | |
Working with our design teams to deliver best in class | The Podium at Dundrum on track |
sustainability in our Dublin developments | to achieve BREEAM Excellent |
and NZEB requirements | |
Working with regional water companies to support water | Relationship with Thames Water |
reduction initiatives | delivering significant water |
savings at Oracle | |
Working with re-use partners to reduce waste | Partnership with Globechain |
delivering re-use opportunities | |
Continuing our programme of portfolio-wide, locally focused | Supported 400+ local |
community engagement initiatives | community organisations |
77 |
Hammerson has set a target to be Net Positive for carbon, water, resource use and socioeconomic impacts by 2030
"Hammerson was the first real estate company globally to set such comprehensive, challenging Net Positive targets and we are making good progress. Creating Positive Places underpins our delivery of best in class retail assets that respond to the major challenge presented
by climate change."
David Atkins, CEO
Carbon
Net Positive for carbon means carbon emissions avoided exceed emissions generated.
Water
Net Positive for water means water replenished by external projects exceeds water consumed from mains supply.
Resource use
Net Positive for resource use means waste avoided, recycled or re-used exceeds materials used that are neither recycled, renewable nor sent to landfill.
Socio-economic
Net Positive for socio-economic impacts means making a measurable positive impact on socio-economic issues relevant to our local communities beyond a
measured baseline. | 78 |
03 UK flagship destinations
Sensory Gardens, Westquay, Southampton
Additional disclosure: UK flagship destinations
2019 UK flagship leasing performance
2019 UK flagship destinations leasing (£m)
5.0 | 16 | ||||||||||||||||
4.5 | 14 | ||||||||||||||||
4.0 | 12 | ||||||||||||||||
3.5 | |||||||||||||||||
3.0 | 10 | ||||||||||||||||
2.5 | 8 | ||||||||||||||||
2.0 | 6 | ||||||||||||||||
1.5 | 4 | ||||||||||||||||
1.0 | |||||||||||||||||
0.5 | 2 | ||||||||||||||||
0.0 | 0 | ||||||||||||||||
January | February | March | May | June | July | August | October | November | |||||||||
April | September | December | |||||||||||||||
Monthly leasing 2019 (LHS) | Cumulative leasing activity 2018 (RHS) | ||||||||||||||||
Cumulative leasing activity 2019 (RHS) | |||||||||||||||||
2019 leasing | |||
£m | |||
Principal leasing | 8.1 | ||
Reconfigurations | 0.6 | ||
Flexible and other | 2.5 | ||
Total | 11.2 |
UK flagship leasing key facts
Leasing vs. Dec 19 ERV -8%(1) Leasing vs. previous passing -11%(1) Average lease term: 8 years(2) Average incentive: 3 months(2)
1 | Principal leases only | 80 |
2 | Excludes flexible leases (FY2018: average lease term 11 years, average incentive 7 months) |
Additional disclosure: UK flagship destinations
Differentiation between categories and brands in our UK portfolio
2019 Sales
Hammerson -1.8%
Index -2.2%(1)
2019 Footfall
Hammerson +0.6%
Index -4.6%(2)
2019 price deflation(3)
Non-food-0.9%
Clothing -8.0%
Hammerson UK flagship destinations category sales and range
50%
40%
30%
20%
10%
3.0% | 2.3% | 1.9% | 1.9% | 1.8% | 1.8% |
0% |
-1.0%-3.5%-5.1%-5.5%-7.6%
-10%
-20%
-30%
-40%
Jewellery & | F&B | Sportswear | Dept Store - | Fashion - | Leisure | Health & | Fashion - | Home, | Dept Store - | Fashion - | |
Personal | Aspirational | Aspirational | Beauty | Modern | Consumer | Mainstream | Traditional | ||||
Luxuries | Brands & Gifts | ||||||||||
1 | Source: Visa F2F Index | 81 | |||||||||
2 | Source: Shoppertrak | ||||||||||
3 | BRC Nielsen shop price index |
Additional disclosure: UK flagship destinations
Exposure to department stores
Hammerson exposure to department stores in UK
Number of | Floorspace | |||
stores | ('000 m2) | |||
Harvey Nichols | 2 | 8 | ||
Selfridges | 1 | 24 | ||
John Lewis | 5 | 114 | ||
Marks & Spencer | 4 | 28 | ||
Fenwick | 1 | 16 | ||
Debenhams(1) | 5 | 74 | ||
House of Fraser(1) | 3 | 45 | ||
Total | 21 | 309 |
Hammerson sales growth
+ve
-ve
Highcross, Leicester | |||
1 | Includes Debenhams and House of Fraser stores at Centrale which is classified in the UK other portfolio | 82 | |
04 France flagship destinations
Village Noël, Les Terrasses du Port, Marseille
Additional disclosure: France flagship destinations
Portfolio remains weighted towards flagship assets
Focus on flagship destinations
88%
Les Terrasses du Port Italie Deux (25%) Les 3 Fontaines Other
Portfolio value: £1.4bn
Largest three assets: 88% of portfolio(1) | 7 France flagship destinations |
1 | By value at 31 December 2019 including developments | 84 |
Additional disclosure: France flagship destinations
2019 leasing performance
2019 leasing and cumulative vs. 2018 (£m)
5.0
4.5
4.0
3.5
3.0
2.5
2.0
1.5
1.0
0.5
0.0
January | February | March | April | May | June | July | August | September | October | November | December |
Monthly leasing 2019 (LHS) | Cumulative leasing activity 2018 (RHS) | ||||||||||
Cumulative leasing activity 2019 (RHS) | |||||||||||
2019 | ||||
leasing | ||||
8.0 | £m | |||
7.0 | Principal leasing | 4.1 | ||
6.0 | ||||
Reconfigurations | 1.3 | |||
5.0 | ||||
Flexible and other | 0.6 | |||
4.0 | ||||
Total | 6.0 | |||
3.0 | ||||
2.0
1.0France flagship leasing key facts
0.0 | Leasing vs. Dec 19 ERV +5%(1) |
Leasing vs. previous passing +8%(1) |
Average lease term: 10 years(2)
Average incentive: 0 months(2)
1 | Principal leases only | 85 |
2 | Excludes flexible leases (FY2018: average lease term 10 years, average incentive 3 months) |
Additional disclosure: France flagship destinations
Differentiation between categories and brands in France
2019 Sales
Hammerson +2.6%
Index +0.9%(1)
2019 Footfall
Hammerson +1.9%
Index +0.3%(1)
Hammerson UK flagship destinations category sales and range
50%
40%
30%
20%
10% | |||||||||
7.9% | 6.4% | 5.5% | 4.7% | 4.5% | 3.9% | 1.2% | 1.2% | 0.5% | |
0% | |||||||||
-0.5% | -0.4% |
-10%
-20%
-30%
-40%
Sportswear | Fashion - | Fashion - | Dept Store - | Jewellery & | Health & | Dept Store - | Fashion - | Leisure | Home, | F&B | ||
Aspirational | Modern | Mainstream | Personal | Beauty | Aspirational | Traditional | Consumer | |||||
Luxuries | Brands & Gifts | |||||||||||
1 | Source: CNCC | 86 |
05 Ireland flagship destinations
The Ilac Centre, Dublin
Additional disclosure: Ireland flagship destinations
200,000m2 of prime space plus sustainable development opportunities
Focus on flagship destinations
Dundrum | Pavilions | Ilac | Developments | |||
Portfolio value: £1.0bn
Dundrum 65% of portfolio(1)
1 | By value at 31 December 2019 including developments | 88 |
Additional disclosure: Ireland flagship destinations
Key retail centres map
89
06 Premium outlets
Mallorca Fashion Outlet, Mallorca
Additional disclosure: Premium outlets
Tiered European outlet market
Sales densities €/m2
€30,000+ | International fashion and |
luxury brands | |
€2,000-€10,000
Mainstream fashion brand outlets
<€2,000 | Low-end discount outlets |
91
Premium outlets portfolio
Value Retail Villages | VIA Outlets centres | |
Bicester Village, Oxford | Batavia Stad Amsterdam Fashion Outlet | |
GLA: 28,300m2 | GLA: 31,000m2 | |
Boutiques: 161 | Units: 135 | |
La Roca Village, Barcelona | Fashion Arena Prague Outlet | |
GLA: 22,800m2 | GLA: 25,600m2 | |
Boutiques: 131 | Units: 102 | |
Las Rozas Village, Madrid | Freeport Lisboa Fashion Outlet | |
GLA: 16,600m2 | GLA: 36,600m2 | |
Boutiques: 95 | Units: 132 | |
La Vallée Village, Paris | Hede Fashion Outlet, Gothenburg | |
GLA: 22,400m2 | GLA: 18,500m2 | |
Boutiques: 104 | Units: 59 | |
Maasmechelen Village, Brussels | Landquart Fashion Outlet, Zürich | |
GLA: 20,000m2 | GLA: 21,300m2 | |
Boutiques: 102 | Units: 82 | |
Fidenza Village, Milan | Mallorca Fashion Outlet | |
GLA: 21,200m2 | GLA: 32,700m2 | |
Boutiques: 121 | Units: 79 | |
Wertheim Village, Frankfurt | Wroclaw Fashion Outlet, Poland | |
GLA: 21,200m2 | GLA: 13,700m2 | |
Boutiques: 116 | Units: 87 | |
Ingolstadt Village, Munich | Sevilla Fashion Outlet | |
GLA: 21,100m2 | GLA: 16,000m2 | |
Boutiques: 112 | Units: 61 | |
Kildare Village, Dublin | Zweibrücken Fashion Outlet, Germany | |
GLA: 16,700m2 | GLA: 30,100m2 | |
Boutiques: 97 | Units: 118 |
Vila do Conde Porto Fashion Outlet | |
GLA: 27,600m2 | |
Units: 112 | |
Oslo Fashion Outlet | |
GLA: 13,500m2 | 92 |
Units: 93 | |
Additional disclosure: Premium outlets
Hammerson's total investment in Value Retail
Holding companies 25%
equity
Bicester Village | La Roca Village | Las Rozas | La Vallée |
Village | Village | ||
Maasmechelen |
Village |
Fidenza Village |
Wertheim |
Village |
Ingolstadt |
Village |
Kildare |
Village |
37 | 29 | 25 | 14 | 14 | 22 | 33 | 2 | 29 |
50 | 41 | 38 | 26 | 27 | 34 | 45 | 15 | 41 |
Village ownership
via LPs (%)
Total Village
ownership (%) (1)
1 | Total Village ownership calculated as economic entitlement of directly held and indirectly held interests | 93 |
Additional disclosure: Premium outlets
Absolute sales growth delivered through active management, acquisitions and extensions
VR and VIA Sales and Sales Growth 2012 - 2019 (€m)(1)
3,500 | ||||||
13% | 13% | |||||
3,000 | 12% | |||||
11% | 12% | |||||
2,500 | 10% | |||||
10% | 9% | |||||
8% | ||||||
2,000 | 8% | 8% | ||||
8% | ||||||
7% | ||||||
1,500 |
1,000
500
0
2012 | 2013 | 2014 | 2015 | 2016 | 2017 | 2018 | 2019 | |
VR Sales (LHS) | VIA Sales (LHS) | VIA Sales Growth (RHS) | VR Sales Growth (RHS) | |||||
14%
12%
10%
8%
6%
4%
2%
0%
1 | Figures have been restated at constant FX rates | 94 |
Sales growth include assets owned for 24 months
Sales include assets acquired from the date of acquisition
Additional disclosure: Premium outlets
Luxury outlets incur higher costs to generate outperformance
Value Retail - 2019 earnings walk (£m)
GRI | 135.7 | ||
Property outgoings | (40.6) | ||
NRI95.1
Administration costs | (44.4) | ||||||||||||||||||||||||
EBIT | 50.7 | 37.4% | EBIT margin | ||||||||||||||||||||||
(7) | |||||||||||||||||||||||||
Interest & other | (16.2) | ||||||||||||||||||||||||
Tax | (3.3) | (2) | |||||||||||||||||||||||
EPRA Earnings | 31.2 | 15 | 23.0% | EPRA Earnings margin | |||||||||||||||||||||
- | 20 | 40 | 60 | 80 | 100 | 120 | 140 | ||||||||||||||||||
£m |
GRI: 62% fixed, remainder turnover; includes brand inducement amortisation
Property outgoings: includes significant marketing costs, as well as other property outgoings, e.g. leasing and car park costs, net of service charge income
Administration costs: roughly one-third local; two-
thirds group
Interest & other: secured debt structure; weighted average cost of debt of 2.7%; net of participative loan earnings from investments in LP stakes in the Spanish villages
Tax: corporation tax ranges from 19% in the UK to 32% in France
1 | All figures at Hammerson share | 95 |
Additional disclosure: Premium outlets
Lower cost model operated below luxury end of premium outlets market
VIA Outlets - 2019 earnings walk (£m)
GRI | 45.6 | ||||||||||||||||||||||||||||||||
Property outgoings | (13.8) | ||||||||||||||||||||||||||||||||
NRI | 31.8 | 32 | |||||||||||||||||||||||||||||||
(7) | |||||||||||||||||||||||||||||||||
Administration costs | (6.5) | ||||||||||||||||||||||||||||||||
EBIT | 25.3 | 55.5% EBIT margin | |||||||||||||||||||||||||||||||
Interest | (8.2) | ||||||||||||||||||||||||||||||||
Tax | (2.5) | ||||||||||||||||||||||||||||||||
EPRA Earnings | 14.6 | 15 | 32.0% EPRA Earnings margin | ||||||||||||||||||||||||||||||
- | 5 | 10 | 15 | 20 | 25 | 30 | 35 | 40 | 45 | 50 | |||||||||||||||||||||||
£m |
GRI: 74% fixed, remainder turnover; includes car park income and inducement amortisation
Property outgoings: includes local marketing costs and leasing costs, net of service charge
Administration costs: include Value Retail advisory fees, internal staff costs and group marketing costs
Interest: secured debt structure; weighted average cost of debt of 2.4%
Tax: corporation tax ranges from 16% in Germany to 25% in Spain and the Netherlands
1 | All figures at Hammerson share | 96 |
Additional disclosure: Premium outlets
Multi-phase extensions - a source of significant growth
Completed/Onsite
Value Retail: La Roca Village, Barcelona
VIA: Hede Fashion Outlet, Gothenburg
2,600m2
21 units
TDC
€50m
Opening Q4 2020
2,400m2
15 units
TDC
€10m
YOC
+10%
Q4 2019
Pipeline
5,500m2 | |||||||||
c.27 units | |||||||||
TDC | |||||||||
€60-65m | |||||||||
Opening | |||||||||
Q2 2021 | |||||||||
Value Retail: Kildare Village, Dublin | |||||||||
VIA - future schemes | Units | Launch | |||||||
Sevilla Fashion Outlet | 15-20 | 2022 | |||||||
Mallorca Fashion Outlet | 30-35(1) | 2023 | |||||||
Zweibrücken Fashion Outlet | 30-35(1) | 2024 | |||||||
1 | Development to be delivered in phases | 97 |
07 City Quarters
Martineau Galleries, Birmingham
Additional disclosure: City Quarters
The City Quarters opportunity
Next | Retail | F&B | Residential | Workspace | Leisure | Education | Culture | Hotel | Public spaces | ||||
Start on | |||||||||||||
Key schemes | Area | planning | |||||||||||
site | |||||||||||||
submission | |||||||||||||
term | Les 3 Fontaines, Cergy | 8,400m2 | n/a | On site | | | | ||||||
The Podium at Dundrum, Dublin | 10,000m2 | n/a | H2 2020 | | | ||||||||
Near | |||||||||||||
Victoria Hotel, Leeds | 8,400m2 | n/a | H2 2020 | | |||||||||
Victoria Phase 2, Leeds | 10 acres | 2020 | | | | | | | | | | ||
Martineau Galleries, Birmingham | 7 acres | 2021 | | | | | | | |||||
Strategic | |||||||||||||
Callowhill Court, Bristol | 9 acres | 2021 | | | | | | | | | | ||
Dublin Central | 6 acres | 2021 | | | | | | | | ||||
Dundrum Phase 2, Dublin | 6 acres | 2021 | | | | | |||||||
Pavilions Phase 3, Swords | 18 acres | 2023 | | | | | | ||||||
Major | Brent Cross | 15 acres | n/a | | | | | | | | | ||
Croydon | 22 acres | n/a | | | | | | | | ||||
The Goodsyard, London | 10 acres | In Planning | | | | | | | | ||||
TOTAL | 103 acres | ||||||||||||
99
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Hammerson plc published this content on 25 February 2020 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 25 February 2020 14:54:01 UTC