Hammerson, the leading commercial property company, has announced positive updates regarding its trading and footfall at its shopping malls. The company now anticipates adjusted earnings for FY21 to be between £75 million and £80 million, surpassing the previous minimum expectation of £60 million. Additionally, the gross rental income across its managed portfolio has exceeded expectations, and Value Retail, one of its business divisions, has achieved a strong performance in Q4.
Although the reimposition of certain government restrictions during the Christmas trading period resulted in a slight decrease in footfall in the UK and Ireland, footfall has rebounded robustly throughout the year. Some of Hammerson’s locations have even surpassed footfall levels from 2019 and consistently outperformed national indices. This encouraging trend has carried over into the beginning of 2022.
Sales in the UK remained robust during the Christmas season, reaching 97% of the levels recorded in 2019 in November and 93% in December. Meanwhile, footfall at Value Retail in Q4 was just below 90% of the comparable levels in 2019, with brand sales approaching 95%. Moreover, there was a slight increase in spend per visit.
For the financial year 2020, rent collections amounted to 97% of the billable rent. However, rent collections for FY21 currently stand at 88%. Furthermore, rent collections for Q1 of FY22 have decreased to 74%. Nevertheless, Hammerson expects these collection rates to improve as the quarter progresses. The UK continues to be the strongest performer with a rent collection rate of 78%, while Ireland stands at 75%.
Links:
1. COVID-19 impact on the commercial property sector:
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2. Strategies to enhance footfall and sales in retail malls:
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