MAXIMISING INCOME THROUGH ACTIVE MANAGEMENT
Growth of 2.1% in like-for-like net rental income demonstrating continued tenant demand for our properties and the success of asset management initiatives
Strong demand for high-quality retail property, with new rents secured of £24m (2012: £19m) for 154,000m² (2012: 123,000m²)
Occupancy of 97.7% reflecting attractive venues. Occupancy exceeds our benchmark of 97% and is up since the half year
Leases signed overall at 2% above ERV, providing confidence in future income growth
Final dividend increased by 8%.Total dividend for the year of 19.1 pence per share (2012: 17.7 pence)
CREATING HIGH-QUALITY RETAIL DESTINATIONS
Les Terrasses du Port, Marseille now 93% let and on schedule to open May 3rd
Construction started at Le Jeu de Paume, Beauvais; Silverburn extension, Glasgow; and Cyfarftha, Merthyr Tydfil
Commenced enabling works at Victoria Gate, Leeds. Main contract scheduled to start on site this spring
Planning approval received for major retail developments at Croydon and Brent Cross in London
Investments in Bullring, Saint Sébastien and Value Retail improve quality of portfolio and provide opportunities to create value
ENHANCING CAPITAL STRENGTH
Reduction in cost:income ratio of 240 basis points
Liability management initiatives reduced weighted average interest rate to 4.8%
Year end loan to value of 38% and liquidity of £716 million provide flexibility for future investment
David Atkins, Chief Executive of Hammerson, said: “We have reported a good set of results in a year when we saw the beginning of economic and consumer recovery in the UK. In France the economic picture is less clear cut, although personal debt levels remain low, providing the opportunity for a rebound in consumer spending when growth returns.
We are seeing improving demand from retailers, and Hammerson is creating the right product to meet their future requirements, which provides the conditions for selected growth in rental values. We have clear visibility on a number of major development projects which will create the destination venues of the future, and drive returns to our shareholders. The first of these, Les Terrasses du Port in Marseille, will open in May this year. We remain on course to deliver strong growth in earnings and dividends over the medium term.”
2. Today’s presentation
Section
1
Introduction and market overview
David Atkins, CEO
Financial results
Timon Drakesmith, CFO
Performance drivers
David Atkins, CEO
Conclusion
David Atkins, CEO
Section
2
Section
3
Section
4
2013 half year results
2013 Full-year results
2
3. Vision
Our vision is to be the best owner-manager and developer
of retail property within Europe
By capitalising on our strengths we aim to provide
industry-leading shareholder returns
EPS
+10.5%
2013 half year results
2013 Full-year results
Dividend
+7.9%
LfL NRI
+2.1%
NAV/share
+5.7%
3
3
4. 2013 highlights
Best in class retail portfolio
Occupancy
97.7%
Leasing +2% vs ERV
7% tenant rotation
rate
Active financial management
WAIR reduced to
4.8%
Reduction in cost
ratio of 240bps
Over £700m liquidity
2013 Half-year results
2013 half year results
2013 Full-year results
Advancing developments
Les Terrasses du
Port 93% let
Commenced on
site at Leeds and
Beauvais
Planning consent
at Croydon and
Brent Cross
Capital recycling to enhance growth
Queensgate disposal
Leisure extensions
on site
Acquisition of Value
Retail stakes,
Bullring and Nancy
44
5. Securing retail demand in France despite cyclical weakness
Market indicators
Structural attractiveness of indexation
Index
105
105
French business confidence (Source: INSEE, France)
100
100
95
95
Low personal debt levels
90
90
Business confidence steady throughout 2013
85
85
Household disposable income increased
throughout 2013
Portfolio initiatives
80
80
Jul 12
€bn
34
Jan 13
Jul 13
Jan 14
Total disposable income (Source: INSEE, France)
340000
Leasing progress at Les Terrasses du Port,
Marseille and Jeu de Paume, Beauvais
335000
Repositioning existing assets through
extensions and refurbishments
325000
Selective acquisitions
315000
33
330000
32
320000
31
310000
Jan 08
2013 half year results
2013 Full-year results
Jan 10
Jan 14
Jan 12
5
6. Stronger Christmas trading in the UK
Morrison
Tesco
Sainsbury
M&S Food
Waitrose
Foodstores
Dunelm
Maplin
Dixons
Halfords
Topps Tiles
OOT retailers
WH Smith
Mothercare
Superdrug
Ryman
Greggs
Thorntons
Argos
Carphone Warehouse
Robert Dyas
Fragrance Shop
The Works
Lush
Non fashion
retailers
New Look
Blue Inc
Bon Marche
JD Sports
White Stuff
Ted Baker
Next
Karen Millen
Jaeger
Mountain Warehouse
Moss Bross
Moss Bros
Boux Avenue
Boux Avenue
Fashion
retailers
Debenhams
M&S Gen merch
House of Fraser
John Lewis
Liberty
Selfridges
Department
stores
-10
Source: PMA (from company statements)
2013 half year results
2013 Full-year results
-5
0
5
10
15
20
25
% p.a. like-for-like sales change, Christmas trading period 2013 vs 2012
6
8. Deep investor demand and firming yields
Shopping centre investment in Europe (Source: DTZ research)
€bn
Volume
LHS
20
Number
of deals
Number of deals
RHS
300
250
Net initial yield (Source: PMA)
%
6.5
Prime Shopping centres
Prime shopping centres
Retail warehousing
Retail Warehousing
6.0
15
200
10
5.5
150
5.0
100
2013 half year results
2013 Full-year results
2014
2013
4.0
2012
2013
2011
2009
2007
2005
2003
2001
0
1999
0
4.5
2011
50
2010
5
8
9. Combined with limited supply
Retail completions expected to remain modest (Source: PMA)
Mil ft2 p.a. net
25
Shopping centres
ShoppingCentre / Unit Shop
20
Retail Warehouse
Retail warehouses
15
10
5
2013 half year results
2013 Full-year results
9
2018
2016
2014
2012
2010
2008
2006
2004
2002
2000
1998
1996
1994
1992
1990
1988
0
10. Increased space requirements in selected locations
International Fashion
retailers
multiples
Leisure and
catering
Aspirational
brands
Homeware and Discounters
furnishings
London
Regional shopping centres
Out of town retail parks
Prime towns
Secondary towns
Tertiary
2013 half year results
2013 Full-year results
10
11. Leading to market ERV growth
Forecast UK retail ERV growth per annum (Source: PMA)
%
3.0
Prime shopping centres
Retail warehouses
2.9
2.5
2.5
2.0
2.0
1.9
1.5
1.8
1.6
1.3
1.0
1.1
0.8
0.5
0.0
-0.1
-0.2
-0.5
-0.2
-0.8
-0.9
-1.0
-0.1
-1.2
-1.5
2010
2013 half year results
2013 Full-year results
2011
2012
2013
2014
2015
2016
2017
11
12. Hammerson positioned to support multichannel retail
Reported sales do not capture the
whole picture
Hammerson
2013 tenants’
sales
UK
France
-0.4%
-2.7%
Click and collect sales not recorded
Adjusted sales capture underlying picture
Adjusted sales
Reported store sales
Retailer 1
+1.7%
-0.7%
Retailer 2
+5.7%
+4.7%
Online purchases returned to store
reduce recorded sales
Overall estimated benefit to reported sales of 1-2% increase
2013 half year results
2013 Full-year results
12
13. Leasing ahead of both ERV and previous rents
12 months to 31 December 2013
vs ERV
vs previous rents
UK retail
+4%
+1%
France
+0%
+6%
Group
+2%
+2%
UK shopping centres
Five Guys at The Oracle,
Reading
2013 half year results
2013 Full-year results
2013 Half-year results
UK retail parks
Homebase at Battery Retail Park,
Selly Oak
French retail
Eram at Place des Halles,
Strasbourg
13
16. Finance agenda and progress
Focus area
Drive top line growth
Control operating costs
Manage interest expense
Optimise capital
structure
2013 half year results
2013 Full-year results
Half-year results
Progress in 2013
Growth in NRI of 2.1%
Marseille opening May 2014
On track to meet our £320m NRI forecast for 2015
Cost income ratio declined by 240 bps to 24.6%
Operating costs reduced by 1.5% in 2013
Further actions announced today to reduce cost income ratio
WAIR falls by 20bps to 4.8%
Increased % of fixed debt for protection as rates rise
Over £500m of new debt financing
LTV below 40% target
Well funded to support development schemes
16
16
17. Headline results
Income statement
2013
% change
2012
Net rental income(1) (£m)
290.2
282.9
+2.1%(2)
Adjusted profit before tax(3) (£m)
168.9
152.5
+10.8%
EPRA EPS (p)
23.1
20.9
+10.5%
Final dividend (p)
10.8
10.0
+8.0%
Balance sheet
31 Dec 2013
Portfolio value (£m)
EPRA NAV (pence per share)
LTV (%)
(1)
(2)
(3)
(4)
(5)
5,931
% change
31 Dec 2012
5,653(4)
573
542
38
+2.0%(5)
+5.7%
36
-
Continuing and discontinued operations
On a like-for-like basis for continuing operations
Continuing and discontinued operations
Includes £195m for discontinued operations
Underlying capital growth for total portfolio excluding Value Retail
2013 Full-year results
2013 half year results
2013 Half-year results
17
17
18. YoY change (LfL)
Solid uplifts in like-for-like NRI
Key drivers
2013 total(2)
3.2%
2.6%
2.1%(1)
0.2%
UK retail parks
France retail
£82.1m
£62.7m
Union Square
Cleveland
Cergy
Brent Cross
Thanet
O’Parinor
Silverburn
2012
administrations
Indexation
UK shopping centres
£124.7m
GRI up 2.2% LfL
Total
£282.8m(3)
In line with
previous
guidance
(1) Includes other interests LfL of £7.2m which declined YoY by 4.0%
(2) Total NRI for continuing portfolio (not LfL)
(3) Continuing operations, including other interests total of £13.3m
2013 Half-year results
2013 Full-year results
2013 Half-year results
18
18
19. EPRA EPS vs 2012
+10.5%
Net
investment
LfL NRI
Value Retail
Administration Net financing
costs
Exchange and
other
24.0
0.2
0.6
22.5
(0.5)
0.2
23.1
0.7
1.0
21.0
20.9
2013
2012
19.5
18.0
EPRA EPS (pence)
Earnings +20% since 2011
2013 half year results
2013 Full-year results
2013 Half-year results
19
21. New resource management measures
Additional investments to grow business
Efficiency improvements
Expected incremental costs - £5m p.a. from 2015
Target savings - £6m p.a. from 2016
Expanded development programme
Senior management reorganisation
-
Headcount increases
London office relocation in 2015
-
Mobilisation of project teams
Share incentive plans and pension benefits
Digital marketing and multichannel
London/Paris integration
Implementation costs of £5m in 2014
Resources redeployed to growth areas
Expense reductions push cost income ratio down to 21-22%
2013 half year results
2013 Full-year results
21
22. Portfolio valuation change
FY 2013
%
H2 2013
%
H1 2013
%
Value at 31 Dec 2013
(£m)
UK shopping centres
+2.4
+1.7
+0.7
2,524
UK retail parks
+1.7
+3.2
-1.5
1,471
France retail
-0.3
+0.8
-1.1
1,240
+10.4
+6.8
+3.4
497
Other UK interests(1)
-6.5
-1.6
-5.0
199
Discontinued operations
+3.7
-1.2
+5.0
-
Total
+2.0
+2.2
-0.2
5,931
Value Retail(2)
+12.6
+6.8
+5.4
788(3)
Current developments
(1) Principally assets held for redevelopment
(2) Underlying overall portfolio valuation change for Hammerson interests
(3) Hammerson’s share of portfolio valuation at 31 Dec 2013
Full-year results
2013 half year results
2013 Full-year results
2013 Half-year results
22
23. EPRA NAV per share vs 2012
+5.7%
Investment
portfolio
revaluation
590
Profit on
disposals
Value Retail
revaluation
Adjusted
profit
Dividends
23
Developments
revaluation
(18)
580
570
573
573
2
11
560
4
550
2013
530
542
2012
540
9
520
EPRA NAV per share (pence)
2013 Half-year results
2013 half year results
2013 Full-year results
23
24. Healthy financing ratios
Financing
policies
31 Dec 2013
31 Dec 2012
-
£2,252m
£2,036m
Gearing
<85%
56%
53%
Loan to value
<40%
38%
36%
Cash/undrawn facilities
-
£716m
£696m
Weighted average cost of finance
-
4.8%
5.0%
>2.0x
2.8x
2.8x
Net debt/EBITDA
<10x
8.2x
7.9x
Fixed rate debt
>50%
82%(1)
80%
Net debt
Interest cover
(1) Fixed rate debt percentage at 31 December 2013 was 70% but is shown on a pro forma basis for £275m US private placement issue arranged in November 2013
2013 half year results
2013 Full-year results
2013 Half-year results
24
24
25. Maturity profile of debt
Bank drawn debt
£m
Secured debt
Euro bonds
500
Sterling bonds
USPP(1)
Credit markets attractive
450
Weighted average coupon of 2015/2016 bonds 5.0%
400
USPP will refinance 2014 bank debt
350
300
250
200
150
100
50
0
2014
2015
2016
2017
2018
2019
2020
2021
2022
2023
2024
2025
2026
2027
(1) Undrawn committed US private placement due to fund February and June 14
2013 half year results
2013 Full-year results
2013 Half-year results
25
25
2028
26. Forecast development expenditure
£m
On site developments
300
Les Terrasses du Port, Marseille
250
Victoria Gate, Leeds
Jeu de Paume, Beauvais
200
Other on site developments
150
Future developments
New extensions/redevelopments
100
Whitgift, Croydon
Brent Cross extension
50
0
2013
2014
2015
2016
2017
2018
Note: Croydon expenditure in 2013 and 2014 reflects property acquisitions
Other on site developments: Abbotsinch Retail Park, Paisley; Cyfarthfa Retail Park, Merthyr Tydfil; Silverburn, Glasgow; O’Parinor, Paris
New extensions/redevelopments: Elliott’s Field Retail Park, Rugby; Watermark WestQuay, Southampton; Brent Cross leisure extension
2013 half year results
2013 Full-year results
26
27. Focus on Value Retail
Value Retail Villages
Future growth drivers
2013
YoY change
Brand sales
€1.9bn
+13%
Forecast 72% growth in Chinese visits to Europe by 2018(2)
EBITDA
€111m
+12%
Village remerchandising with more premium brand stores
Total portfolio value
€3.1bn
+12%
More flagship stores
Extensions at Barcelona and Dublin
Hammerson share of(1)
EPRA net income
£19m
+51%
EPRA net assets
£634m
Hammerson investment plans
+29%
(1) Including benefit of new investments, interest receivable and loans
(2) Source: European Travel Commission
2013 half year results
2013 Full-year results
27
29. Performance drivers
Value Retail
Growth from existing
portfolio
Major developments
Contribution from
extensions and
refurbishments
Selected examples
2013 half year results
2013 Full-year results
2013 Half-year results
29
30. Capital deployment
Prime Shopping
Centres
Extension and
refurbishment
Premium
Designer Outlets
Convenient
Retail Parks
Silverburn
Silverburn
Abbotsinch
Retail Park
La Roca Village
Kildare Village
Development
Les Terrasses
du Port
Cyfarthfa
Retail Park
Kildare Village
Bullring
Junction Fund
La Vallée
Village
Acquisition
2013 Half-year results
2013 Full-year results
30
31. Acquisition of a further stake in Bullring
Acquired additional 33% stake in 2013 in 50/50 JV with CPPIB, taking
ownership to 50%
9% total property return
Recent lease renewals +10% above previous rent
Continues to attract new brands
2003
2011
2013
2014
2015
Bullring opens, with
1.5 million visitors
in first week
Spiceal Street opens, a
1,900m2 leisure and
catering development
Bullring
celebrates 10
years of trading
Explore opportunity to
increase leisure offering
and add a cinema
New £100 million John
Lewis store opens for
trade in city
2013 Half-year results
2013 Full-year results
31
33. Nearing completion at Les Terrasses du Port
Countdown to launch
Opening 3 May 2014
93% pre-let and 95% construction complete
£28 million annual rents
£460 million total development cost
7.3% yield on cost
Anchor store Printemps and MSUs have commenced
fitting out of units
2013 Half-year results
2013 Full-year results
33
34. Transforming Marseille’s retail offer
190 units
1
81
22
53
43
22
30
brands new to
the portfolio
catering units
fashion brands
international
brands
brands taking 1st
store in a French
shopping centre
brands new to
Marseille
Brands recently signed include
2013 Half-year results
2013 Full-year results
34
35. Construction commenced at Leeds and Beauvais
Victoria Gate, Leeds
34,300m2 luxury retail
venue
John Lewis anchor store
23,800m2 retail and leisure
venue
Out-turn financials
Total development
cost
Annual income
28% pre-let
Jeu de Paume, Beauvais
Yield on cost
£150m
£10m
6.7%
80km north west of Paris
Large catchment and poor
retail provision
Out-turn financials
Total development
cost
Annual income
£5m
Yield on cost
7.1%
Completion Q3 2016
42% pre-let
Completion Q3 2015
2013 Half-year results
2013 Full-year results
£70m
35
36. Advancing the development pipeline
Silverburn, Glasgow
O’Parinor, Paris
Cyfarthfa Retail Park,
Merthyr Tydfil
Abbotsinch Retail
Park, Paisley
10,900m2 extension
7,200m2 extension
14,500m2 extension
5,000m2 extension
14 screen cinema
14 screen cinema
4,300m2 Marks and Spencer
anchor store
5 retail units in adjacent
existing retail park
84% pre-let
100% pre-let
46% pre-let
87% pre-let
Total development cost £13m
Total development cost £4m
Total development cost £23m
Total development cost £9m
Completion Q1 2015
Completion Q2 2014
Yield on cost 10%
Yield on cost 13%
Completion Q1 2015
Completion Q4 2014
Yield on cost 7%
Yield on cost 5%
2013 Half-year results
2013 Full-year results
36
38. Attractive future pipeline: The Goodsyard
Total development area 260,000m2
50/50
10 acre
joint venture with site in heart of
Shoreditch
Ballymore Properties
2013 Half-year results
2013 Full-year results
£6m
per acre
valuation
Spring 2014 19,000m2
Planning submission
Retail space
(90 shops)
60,000m2
1,400
office space
residential
units
38
39. Additional income from developments
£56m
£63m
£m annual rents
120
90
£15m
60
£11m
£30m
30
2014
2014
2015
2015
2016
2016
2017-2019
2017-2019
Notes: Annualised passing rents assuming 100% occupancy in year of project completion, post any rent free periods
Assumes completion of all medium-term developments and extensions
2014 Les Terrasses du Port, O’Parinor, Abbotsinch Retail Park; 2015 Silverburn, Jeu de Paume Beauvais, Elliott’s Field Rugby, Cyfarthfa Retail Park Merthyr Tydfil
2016 Watermark WestQuay, Victoria Gate
2017-2019 Croydon, Brent Cross Leisure, Brent Cross extension
2013 Full-year results
2013 Half-year results
2013 half year results
39
41. Key messages
ERV growth returning to our
markets
2013 half year results
Major development activity
amplifies returns
On track with previous
income growth guidance
41
42. Conclusion
ERV growth from existing portfolio
Contribution from extensions and
refurbishments
Overhead cost control
Strong returns
Confident outlook
Major developments
Liability management
Value Retail
2013 half year results
2013 Full-year results
2013 Half-year results
42
42
44. Disclaimer
This presentation contains certain statements that are neither financial results nor other historical information.
These statements are forward-looking in nature and are subject to risks and uncertainties. Actual future results
may differ materially from those expressed in or implied by these statements.
Many of these risks and uncertainties relate to factors that are beyond Hammerson’s ability to control or estimate
precisely, such as future market conditions, currency fluctuations, the behaviour of other market participants, the
actions of governmental regulators and other risk factors such as the Company’s ability to continue to obtain
financing to meet its liquidity needs, changes in the political, social and regulatory framework in which the
Company operates or in economic or technological trends or conditions, including inflation and consumer
confidence, on a global, regional or national basis.
Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of
the date of this document. Hammerson does not undertake any obligation to publicly release any revision to
these forward-looking statements to reflect events or circumstances after the date of these materials. Information
contained in this presentation relating to the company or its share price, or the yield on its shares, should not be
relied upon as a guide to future performance.
2013 half year results
2013 Half-year results
44
46. Our assets
£5.9bn property portfolio
Assets in UK and France
21 shopping centres
22 retail parks
Investment in Value Retail
250m annual visitors
2013 half year results
2013 Full-year results
2013 Half-year results
46
46
47. Developments and extensions
Ownership
%
Lettable area
m2
Earliest start
Potential
completion
Value at
31/12/13
£m
Estimated cost to
complete (1)
£m
Estimated annual
income (2)
£m
Let (3)
%
Les Terrasses du Port, Marseille
100%
61,000
Commenced
Q2 2014
386
80
28
93
Abbotsinch, Paisley
100%
5,000
Commenced
Q2 2014
n/a
7
1
87
O’Parinor, Aulnay-sous-bois
25%
7,200
Commenced
Q4 2014
n/a
2
1
100
Cyfarthfa, Merthyr Tydfil
100%
14,500
Commenced
Q1 2015
n/a
19
2
46
Silverburn extension, Glasgow
50%
10,900
Commenced
Q1 2015
n/a
8
1
84
Jeu de Paume, Beauvais
100%
23,800
Commenced
Q3 2015
9
60
5
42
Victoria Gate, Leeds (Phase 1)
100%
34,300
Commenced
Q3 2016
10
135
10
28
311
48
Scheme
ON SITE
TOTAL
156,700
MAJOR DEVELOPMENTS (>30,000M2)
Croydon Town Centre
The Goodsyard, London E1
50%
2015
2018
500
35
260,000
2016
Phased
140
-
41%
Brent Cross Extension, London
200,000
50%
(4)
90,000
2016
2019
350
26
990
61
TOTAL
550,000
EXTENSIONS/REDEVELOPMENTS (<30,000M2)
Elliott’s Field, Rugby
100%
16,000
2014
2015
36
3
13
Watermark WestQuay, Southampton
100%
18,000
2014
2016
70
5
29
Brent Cross Leisure
41%
9,000
2016
2018
20
2
126
10
TOTAL
43,000
PIPELINE
SQY Ouest, Saint Quentin-en-Yvelines
50%
31,700
2014
2015
11
2
Halle en Ville, Mantes
100%
32,000
2015
2017
120
9
Italie Deux, Paris
100%
4,800
2015
2017
25
2
Victoria Gate, Leeds (Phase 2)
100%
73,000
2018
2021
480
40
141,500
636
53
891,200
2,063
172
TOTAL
(1)
(2)
(3)
(4)
(5)
Incremental capital cost including capitalised interest
Incremental income net of head rents and after expiry rent-free periods
Let or in solicitors’ hands by income at 31 January 2014
Area and cost reflects phase 1 of the scheme only. Income not applicable due to residential component of the scheme
€ converted at £1 = €1.202
2013 half year results
2013 Half-year results
47
47
30
48. Hammerson’s investment in Value Retail
Hammerson
€58m
shareholder
loan
Holding Companies
22% equity
Bicester
Village
La Roca
Village
Las Rozas
Village
La Vallée
Village
Maasmechelen
Village
Fidenza
Village
Wertheim
Village
Ingolstadt
Village
Kildare
Village
Village Ownership
via LP’s (%)
33
23
19
11
13
20
31
0
3
Total Village
ownership (%)
45
35
31
22
24
32
43
11
14
Note: Hammerson also provided a €25million loan to Fidenza Village in July 2013
2013 Half-year results
2013 Full-year results
2013 Half-year results
48
49. Value Retail share of results
Year ended 31
December 2013
£m
101.5
Year ended 31
December 2012
£m
47.5
Less: EPRA adjustments
(88.1)
(43.2)
EPRA adjusted earnings of associate
13.4
4.3
-
4.9
5.6
3.4
19.0
12.6
31 Dec 2013
31 Dec 2012
Investment in associate
545.4
428.4
Add: EPRA adjustments
19.7
16.2
EPRA adjusted investment in associate
565.1
444.6
Loan to Value Retail
68.7
47.0
633.8
491.6
Income statement
Share of results of associate
Distributions received
Interest receivable
Total impact of Value Retail on income statement – EPRA basis
Balance sheet
Total impact of VR on balance sheet – ERPA basis
2013 Half-year results
2013 Full-year results
2013 Half-year results
49
50. Lease expiries and breaks as at 31 December 2013
Rents passing that
expire/break in
ERV of leases that
expire/break in
Weighted average
unexpired lease term
2014
2015
2016
2014
2015
2016
£m
£m
£m
£m
£m
£m
(1)
(1)
(1)
(2)
(2)
(2)
17.9
12.4
8.5
23.6
12.6
8.0
4.7
2.3
9.2
25.9
17.1
10.8
3.5
2.7
Total United Kingdom
29.4
France retail
Notes
to break
years
to expiry
years
8.2
6.6
8.2
4.4
2.2
8.9
9.8
32.8
17.0
10.4
7.6
8.9
0.7
3.7
3.3
0.6
7.2
8.9
19.8
11.5
36.5
20.3
11.0
7.5
8.9
16.4
3.6
3.9
17.4
3.8
4.0
1.3
5.0
42.3
20.7
14.7
50.2
20.8
14.4
6.0
7.9
3.5
2.7
0.7
3.7
3.3
0.6
7.2
8.9
45.8
23.4
15.4
53.9
24.1
15.0
6.1
8.0
United Kingdom
Retail
Shopping Centres
Retail Parks
Other UK
Group
Retail
Other UK
Total Group
(1) The amount by which rental income, based on rents passing at 31 December 2013, could fall in the event that occupational leases due to expire are not renewed or replaced
by new leases. For the UK, it includes tenants’ break options. For France, it is based on the date of lease expiry.
(2) The ERV at 31 December 2013 for leases that expire or break in each year and ignoring the impact of rental growth and any rent-free periods.
2013 Half-year results
2013 Half-year results
50
50
51. Rent reviews as at 31 December 2013
Projected rents at current ERV of leases
subject to review in
Rents passing subject to review in
Outstanding
2014
2015
2016
Outstanding
2014
2015
2016
£m
£m
£m
£m
£m
£m
£m
£m
1
1
1
1
2
2
2
2
Shopping
Centres
40.8
15.8
9.3
9.9
43.7
17.1
10.4
10.8
Retail Parks
19.5
9.4
24.5
15.9
20.2
9.8
25.1
16.2
60.3
25.2
33.8
25.8
63.9
26.9
35.5
27.0
4.1
1.9
3.3
0.9
4.2
2.1
3.7
0.9
64.4
27.1
37.1
26.7
68.1
29.0
39.2
27.9
Notes
United Kingdom
Retail
Other UK
Total United Kingdom
(1) Rents passing at 31 December 2013, after deducting head and equity rents, which are subject to review in each year.
(2) Projected rents for space that are subject to review in each year, based on the higher of the current rental income and the ERV as at 31 December 2013 and ignoring the impact of changes in rental values
before the review date.
2013 Half-year results
2013 Full-year results
2013 Half-year results
51
51
52. 2013 components of valuation change
Yield
Income
Development and other
Total
£m
100
92.0
88.7
80
60
54.5
52.0
40
34.0
32.8
26.0
21.2
20
11.3
8.5
13.1
12.4
0
(2.7) (9.1)
(8.8)
(1.3)
(0.5)
-20
(23.9) (25.7)
(24.4)
-40
UK Shopping centres
2013 Half-year results
2013 Full-year results
2013 Half-year results
France retail
UK retail parks
UK other
Total continuing
portfolio
52
52
53. Valuation data
UK Shopping
centres
France retail
UK Retail parks
Other UK
Total continuing
portfolio
31 December 2013
5.8
5.5
6.1
7.4
5.9
31 December 2012
6.0
5.6
6.3
6.6
6.0
Change (bps)
-20
-10
-20
+80
-10
31 December 2013
152.9
75.1
89.5
15.8
333.3
31 December 2012
150.4
73.4
88.7
12.6
325.1
+1.7
+2.3
+0.9
+25.4
+2.5
True equivalent yield (%)
ERV (£m)(1)
Change (%)
(1) Total ERV for continuing portfolio on a non LfL basis
2013 Half-year results
2013 Full-year results
2013 Half-year results
53
54. 2013 leasing activity
Area of new lettings (000m2)
New rent from units leased (£m)
25
2012
180
2013
2013
2012
23.9
20
153.9
18.7
120
123.3
15
10
10.1
60
8.2
8.1
8.3
52.0
5
42.8
43.3
4.9
30.5
48.7
36.2
2.1
0
0
UK shopping
centres
UK retail parks
2013 Half-year results
2013 Full-year results
2013 Half-year results
France retail
Group
UK shopping
centres
UK retail parks
France retail
Group
54
54
55. Tenants in administration as at 31 December 2013
31 December 2013
70 units in administration (1.2% passing rents)
22 units unoccupied (0.5% passing rents)
30 June 2013
63 units in administration (1.6% passing rents)
25 units unoccupied (0.6% passing rents)
31 Dec 2012
63 units in administration (1.2% passing rents)
25 units unoccupied (0.5% passing rents)
2013 Half-year results
2013 Full-year results
2013 Half-year results
55
55