The team has come together to deliver strong
performance with growth in annualised rent and ERV with a strong pipeline of demand
for the second half. Despite the challenging macroeconomic backdrop, valuations are
unchanged reflecting the resilience of our exceptional portfolio.

Trading conditions across our West End locations are positive, with high footfall and
customer sales now tracking 15 per cent ahead of 2019 levels. 220 leasing
transactions completed in the first half of the year, at rents on average 5 per cent
ahead of December 2022 ERV providing confidence in the prospect of continued rental
growth from our unique portfolio. We are already seeing the benefits of the combined
platform and with our strong balance sheet, we look forward with confidence on
delivering further growth and returns in the years ahead."
Overview

• Excellent operational momentum with high footfall, positive trading activity,
strong demand for all uses, excellent leasing activity and low vacancy
• ERV growth over six months resulting in 3.3 per cent (like-for-like) increase to
£235 million and annualised gross income increased 5.6 per cent to £188 million
(pro forma: £178 million). Equivalent yield moved out 10 basis points to 4.2 per
cent (pro forma Dec 2022: 4.1 per cent)
• Valuation of wholly owned portfolio unchanged at £4.9 billion in line with pro
forma Dec 2022 £4.9 billion
• Excellent progress on integration with cost savings ahead of schedule and overall
savings now anticipated to be £13.5 million
• Strong balance sheet with access to £457 million of cash and undrawn facilities
• 5 per cent of the portfolio value anticipated to be recycled
• Despite macroeconomic uncertainty, the heart of the West End remains attractive
with competition for space in our areas anticipated to remain healthy,
underpinning rental growth prospects

Key financials
• EPRA NTA of 194 pence per share (Dec 2022 reported pre-merger and pro forma Dec
2022: 182 pence per share and 193 pence per share respectively)
• Total equity of £3.6 billion (Dec 2022 reported pre-merger: £1.6 billion)

• Net debt of £1.6 billion (pro forma Dec 2022: £1.5 billion) and EPRA loan-to-
value ratio of 31 per cent

• Underlying earnings of £27.5 million, equivalent to 1.9 pence per share
• Interim dividend of 1.5 pence per share
Strong operational momentum
• Positive trading activity for our customers, with reported sales in aggregate 15
per cent above 2019
• High footfall across the West End buoyed by increasing international visitor
numbers
• 220 leasing transactions with a rental value of £15.1 million concluded,
comprising:
- 89 commercial lettings and renewals: £10.5 million, 6 per cent ahead of 31 Dec
2022 ERV; and
- 131 residential lettings and renewals: £4.6 million, 13 per cent above previous
passing rents
• In addition, 41 commercial rent reviews were concluded, with a rental value of
£7.7 million, 7 per cent ahead of previous passing rents
• Low vacancy: 2.5 per cent of ERV available to let
• 27 new retail and hospitality brands and concepts introduced across the portfolio

• Annualised gross income up 5.6 per cent to £188 million, now ahead of pre-
pandemic levels (pro forma 2019: £187 million)

• Portfolio reversionary potential of £46.4 million, with current ERV 25 per cent
ahead of annualised gross income
• Contracted income of £20.5 million which will be realised on expiry of rent-free
periods, and contractual rent increases
• Schemes with an ERV of £6.9 million completed of which £5.5 million is let or
under offer. ERV of space under refurbishment at 30 June 2023 is £15.7 million
(6.7 per cent of portfolio ERV)
Robust balance sheet with a focus on resilience, flexibility and efficiency
• Liquidity of £457 million (cash of £157 million and £300 million undrawn
facilities)
• Modest capital commitments of £23 million

• Net debt of £1.6 billion (pro forma Dec 2022: £1.5 billion) and EPRA loan-to-
value ratio of 31 per cent

• The weighted average cost of drawn debt is 4.3 per cent (reported Dec 2022 pre
merger: 2.7 per cent). The effective running cash cost of drawn debt is 3.4 per

cent taking account of interest on cash deposits and the benefit of interest rate
hedging
• Weighted average maturity of debt of 4 years
Commitment to environment, sustainability and supporting our local communities
• Combined 2023 Net Zero Carbon Pathway will be published later this year based on
our “retrofit first” approach to the management of our heritage buildings
• Sustainable refurbishment activity continues across the portfolio enhancing the
energy performance credentials of our heritage properties; 68 per cent EPC rating
of A-C, up five percentage points during the period
• Continued support of community-led initiatives and charities which work with
organisations active in the West End
Outlook
• Strong performance demonstrates the exceptional qualities of the portfolio
delivering growth in both annualised rent and ERV
• Despite economic uncertainties, strong leasing pipeline and positive trading
conditions across our West End locations, provide us with confidence in the
growth prospects for our unique portfolio
Joint ventures
• Longmartin property value* of £159 million, a decrease of 1.1 per cent since Dec
2022. Lillie Square property value* of £72 million, a decrease of 3.1 per cent
(like-for-like) since Dec 2022
* Our 50% share
Refer to Glossary of terms on pages 56 to 60 of the full announcement.