Shopping centre group Hammerson has reported a steep drop in profits as the value of its property portfolio divebombs.
It attributed “lower revaluation gains on the group’s shopping centres and retail parks” to a 56 per cent drop in pre-tax profit for the year to £322.8 million.
Values for its UK shopping centres also fell by £6 million, with a further £118 million drop in value at retail parks across the UK. £39 million of this was reportedly due to a rise in stamp duty.
Its adjusted profit, when taking into account valuation changes, rose by 9.4 per cent to £230.7 million for the year.
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“During the year we have significantly grown and enhanced the portfolio, adding new retail space in faster-growth markets including Dublin, Leeds and Birmingham, and extending our presence in the European outlets market,” Hammerson chief executive David Atkins stated.
“Despite some UK retail headwinds and geopolitical uncertainty, I am confident that we have a resilient and adaptable business with multiple opportunities to drive similar levels of growth and therefore continue to deliver sector-leading income-focused returns.”
Hammerson has interests in several major retail developments, including The Bullring in Birmingham, Victoria Gate in Leeds, Cabot Circus in Bristol and Brent Cross in London.