Hammerson, the owner of popular shopping centers Bullring in Birmingham and Dundrum Town Centre in Dublin, has reported a modest loss of £1.2 million in the past six months. This is a significant decline compared to the £50.3 million profit the company made during the same period last year. However, considering the current high-interest-rate environment, these results are considered strong, with revenues increasing by 8%. As a result, the company has expressed confidence in its future performance, and this positive outlook has been reflected in its shares.
The loss reported by Hammerson can be partially attributed to the disposal of its stakes in shopping center developments in Croydon and Paris. However, the company has also reported robust trading figures. Adjusted earnings have risen by 15% to £56 million, thanks to strong leasing momentum and a promising leasing pipeline for the second half of the year. Footfall (the number of people visiting a shopping center) and like-for-like sales (sales of existing stores compared to the previous year) remain strong in both the UK and Ireland. Specifically, footfall is up 4% year-on-year, and like-for-like sales have increased by 3% in the UK and 2% in Ireland.
During the period, Hammerson secured 134 leasing deals, resulting in £18.3 million of headline rent, which is a 13% increase compared to the previous year. The leasing pipeline for the second half of the year looks promising, with £15 million worth of deals currently in solicitors’ hands.
Hammerson’s flagship occupancy has increased by 1% to reach 95%, and the company has an impressive rent collection rate of 98% for the half-year. Additionally, 156 leases have been signed, and 55 new stores have opened. Compared to the previous year, footfall and sales have increased by 13% and 14% respectively.
However, the overall value of Hammerson’s portfolio has decreased from £5.1 billion to £4.7 billion in the past year, though the company notes that values have remained stable. CEO Rita-Rose Gagné remains confident in the company’s core portfolio, believing it continues to attract top-quality tenants and create exceptional destinations for customers through commercialization and placemaking efforts.
Looking ahead, Gagné acknowledges the uncertain macroeconomic outlook but remains confident in Hammerson’s strong leasing and operational momentum. The company is well-positioned to deliver robust adjusted earnings and cash flow and remains on track to achieve its cost reduction and disposal targets.
Useful links related to the article:
1. Hammerson Official Website
2. Bullring Shopping Centre Website
