Hammerson, the leading UK-based commercial property giant, has experienced a remarkable rebound after a year filled with significant changes. As COVID-19 restrictions eased, the company reported a strong resurgence in footfall across all territories. Moreover, occupier sales surpassed footfall, indicating a high demand for prime retail spaces. Flagship leases alone reached a value of £25 million, reflecting a significant increase of 150% compared to the previous year. Additionally, flagship occupancy improved to 96%, a notable climb from 93% in the preceding year.
These positive developments, however, do not mean that the work is complete, as stated by Hammerson’s CEO, Rita-Rose Gagné. While reflecting on the accomplishments during the 12 months ending in December 2021, Gagné highlighted the smart decision to dispose of non-core operations worth a staggering £623 million. This strategic move allowed Hammerson to direct its focus on prime urban estates while reinforcing its balance sheet.
Furthermore, Hammerson reported an impressive 122% boost in earnings, reaching £81 million compared to the previous year’s £37 million. Despite this, the company experienced a decline in gross rental income from £287 million to £241.6 million due to various disposals throughout the year. Nonetheless, net debt decreased by 19% to £1.8 billion, and Hammerson maintains substantial liquidity with £1.5 billion in undrawn committed facilities and cash.
Gagné underlined that the COVID-19 pandemic has hastened changes in the company’s operating environment, with people engaging with physical spaces in innovative ways. In response to this shift, Hammerson is dedicated to constructing and curating pertinent, attractive, and sustainable spaces for the future. The company is now prioritizing new modes of operating, agility, innovation, and driving performance.
Overall, Hammerson’s strong recovery and strategic initiatives have positioned the company favorably for future success in the fiercely competitive commercial property market. With its renewed emphasis on prime urban estates and a fortified balance sheet, Hammerson is prepared to adapt and thrive in the evolving retail landscape.
Useful Links:
1. Hammerson Official Website
2. Property Week Magazine
