Land Securities : Annual results 2021 appendices

Appendices

as at 31 March 2021

Landsec ─ Appendices

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Contents

		Page
Sustainability
Sustainability leadership	2
Our sustainability programme	3
Our portfolio - sustainability performance of our assets	4
Progressing our net zero strategy	5
Asset performance
Top 10 assets by value - as at 31 March 2021	6
Valuation movements - as at 31 March 2021	7
Yield - like-for-like portfolio	8
Rental and capital value trends - like-for-like portfolio	9
Rental and capital value trends - Central London	10
like-for-like portfolio
Rental and capital value trends - Regional retail	11
and Urban opportunities like-for-like portfolios
Rental and lease analysis expiries and breaks
Reversionary potential - like-for-like portfolio	12
Net rental income	13
Central London portfolio	14
Regional retail portfolio	15

		Page
Urban opportunities portfolio	16
Subscale sectors portfolio	17
Reconciliation of cash rents and P&L rents to ERV	18
Combined Portfolio	19
Retail analysis
Retail sales and footfall	20
Top retail and leisure occupiers by percentage	21
of Group rent
Company voluntary arrangements (CVA)	22
CVA/administration exposure by occupier	23
Summary of retail and leisure units in CVA/administration	24
Voids and units in administration - like-for-like portfolio	25
Financial data and performance
Financial history - adjusted diluted earnings per share	26
and dividend per share
Cash flow and adjusted net debt	27
Financial history - EPRA net tangible assets per share	28
and Group LTV
Expected debt maturities (nominal)	29

		Page
Financing	30
The Security Group - summary	31
The Security Group - portfolio concentration limits	32
Development and market analysis
Office-led development programme returns	33
Pipeline of office-led development opportunities	34
Pipeline of Urban opportunities	35
Committed capital expenditure	36
Property/gilt yield spread	37
Central London investment market	38
Central London quarterly take-up	39
Central London rolling 12-monthtake-up	40
Central London availability and vacancy rate	41
Central London second hand supply	42
vs rental value growth
London Office market availability	43
- grade-A vs second hand space
Central London supply as at 31 March 2021	44-45
Central London office market	46
Portfolio segmental split aligned to strategic priorities	47

Landsec ─ Appendices

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Sustainability leadership

Demonstrated by our performance across all key ESG benchmarks

Benchmark	Latest performance

GRESB 2020

Real Estate Sector leader - 5-star rated entity

Regional Listed Sector Leader for Europe within

Diversified - Office/Retail (score 85%)

Global Listed Development Sector Leader for Office (score 94%)

CDP 2020

A-list (top 2.8%) for the fourth consecutive year

Inclusion on the 2020 Supplier Engagement Leaderboard (top 7%)

DJSI 2020

Score 85/top 99th percentile

European Real Estate leader, ranking 4th globally

Silver Class distinction in the S&P Global Sustainability

Awards

Benchmark	Latest performance

Ecoact 2020

Ranked 3rd amongst FTSE 100 companies

for our sustainability reporting and climate-related strategy (ranked 5th in 2019)

EPRA 2020

Received our 7th Gold Award for best practice sustainability reporting

FTSE4Good 2020

94th percentile. We continue to retain our established position in the FTSE4Good Index

ISS ESG 2020

Prime status. Rating C+.

Decile rank 1/transparency level: very high

MSCI ESG Rating 2020

A rating

Sustainalytics ESG Risk Rating 2020

10.9 (low risk)/ranking 32 out of 951 companies in the real estate industry

Workforce Disclosure Initiative 2020

WDI Award for most complete disclosure

Landsec ─ Appendices

Our sustainability programme

Ambitious commitments split into three core areas

4

Achieved

On track

Not achieved

Creating jobs and opportunities

Create £25m of social value through our community programmes by 2025

This year we've created over £6.5m of social value. Over £11m of social value created since commitment set in 2019/20

By 2020, ensure everyone working on our behalf, in an environment we control, is given equal opportunities, protected from discrimination and paid at least the Real Living Wage

We continue to pay the Real Living Wage to all our direct employees and partners across our offices portfolio but, as a result of Covid-19 impact to retail sector, we have

not met our commitment across our retail portfolio

Efficient use of natural resources

Reduce carbon emissions by 70% by 2030 compared with a 2013/14 baseline, for property under our management for at least two years

Reduced carbon emissions by 55%(1) since 2013/14

Ensure 100% of our electricity supplies through our corporate contract are from REGO-backed renewable sources and achieve 3MW of renewable electricity capacity by 2030

We continue to procure		Our on-site renewable
100% renewable across		electricity capacity
our portfolio		is 1.4 MW

Sustainable design and innovation

Assess and mitigate physical and financial climate change adaptation risks that are material across our portfolio

Continue to assess climate risks to inform our approach to managing these risks across our portfolio, including new developments

Source core construction products and materials from ethical and sustainable sources

All our developments are targeting 100% of our core construction materials with responsible sourcing certification and from the UK and Europe

Make measurable improvements to the profile

- in terms of gender, ethnicity and disability - of our employee mix

52% of our employees are female and ethnic minority representation is 17%, exceeding our targets of 50% and

14% respectively. Our female representation is 31% at leader level and 38% at senior leader level. Our ethnic minority representation is 8% at leader and 6% at senior leader level

Reduce energy intensity by 40% by 2030 compared with a 2013/14 baseline, for property under our management for at least two years

We have reduced energy intensity by 43%(1) compared with 2013/14

Maximise the biodiversity potential of all our development sites and achieve a 25% biodiversity net gain across our five sites with the greatest potential by 2030

Continue to enhance biodiversity net gain at our five operational sites and on track to deliver significant net gain on our developments

Maintain an exceptional standard of health, safety and security in all the working environments we control

To establish and maintain Covid-secure destinations and workplaces we launched a taskforce to assess the impact of the virus on our operations, to interpret government guidance, and co-ordinate the rollout of new ways of working. We continue to enhance fire safety across the business and ensure we meet new government initiatives and legislation

Send zero waste to landfill and at least 75% waste recycled across all our operational activities by 2020

We continue to divert		Recycled 65%(1)
100% from landfill		of operational waste
across our operational
activities

Ensure our buildings are designed and managed to maximise wellbeing and productivity

Pursuing the WELL Portfolio Programme across our offices portfolio and all developments are pre-assessed against WELL Core rating

(1) Energy, carbon and waste management performance have been significantly impacted by Covid-19

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Our portfolio

Sustainability performance of our assets

• 55% reduction in carbon emissions (tCO2e) compared with 2013/14 baseline
• 43% reduction in energy intensity (kWh/m2) compared with 2013/14 baseline
• Zero waste sent to landfill with 65% of waste recycled
• 44% BREEAM certified by portfolio floor area

Outstanding

Excellent

Very good

Good/pass

0.5%

41.3%

52.6%

5.6%

• In 2020/21, created over £6.5m social value by creating opportunities and engaging with local communities across our assets, supporting over 120 people into work.
• New developments to be net zero: The Forge, SE1, Timber Square, SE1 and Portland House, SW1

The Forge, SE1