Hammerson, a prominent commercial property group in the UK known for its portfolio of shopping centers and outlets, has reported positive results for the third quarter of 2022, indicating a strong recovery from the impact of the pandemic. The company’s rental income and sales have shown growth, signaling an upward trend that is expected to be reflected in its full-year adjusted earnings.
The year-to-date gross rental income has increased by 11% on a like-for-like basis. This growth can be attributed to a strong leasing performance, improved collections, and lower bad debt charges. These factors have also contributed to the increase in net rental income.
Hammerson expects its adjusted earnings for 2022 to be at least £100 million, compared to £80.9 million in the same period last year. This increase in earnings is attributed to lower administration and net finance costs, as well as a better-than-expected performance from Value Retail.
Additionally, Hammerson has seen improvements in footfall, with levels reaching around 90% of pre-pandemic levels in the UK and Ireland. In France, footfall has recovered even further, reaching around 95% of pre-pandemic levels. Sales have also exceeded 2019 levels, with a 4% increase in UK sales and a 2% increase in Ireland sales in the third quarter.
The company has signed 221 leases so far this year, representing £17 million of headline rent. This is a significant increase compared to the previous passing rent and the estimated rental value.
In its trading statement, Hammerson mentioned that demand remains high and the fourth-quarter pipeline is strong. Although specific details or comments were not provided, this statement implies positive prospects for the company in the upcoming months.
Overall, Hammerson’s strong performance in the third quarter and its optimistic outlook for the future demonstrate its resilience and ability to adapt to the challenges posed by the pandemic. With its diverse portfolio of high-quality properties, the company is well-positioned to take advantage of the recovery in the retail sector.
Useful links:
1. Hammerson official website
2. Retail Gazette (source for industry news and updates)
