// Hammerson records strong demand for retail space as adjusted earnings rise in first half results
// Hammerson also completed £194m of disposals, reducing net debt by 6%
Hammerson has reported strong demand for retail space as it posts an increase of 154% year-on-year for adjusted earnings in its first-half results.
The shopping centre operator said adjusted earnings were £51 million during the period, compared to £20 million in the same period last year.
This reflected a 48% rise in like-for-like net rental income, lower administration and finance costs, and a strong contribution from value retail.
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Gross administration costs reduced 20%, the company said, and it delivered its 2023 cost reduction target (versus 2019) 18 months early. Net finance costs were 25% lower year-on-year.
Hammerson also completed £194 million of disposals, reducing net debt by 6% to £1.7 billion at 30 June, compared with £1.8 billion last year.
The company said portfolio values were broadly stable in the half and that its balance sheet was solid – total liquidity reached £1.2 billion including undrawn committed facilities, and £500 million of cash
Meanwhile, footfall, sales, occupancy and collections are recovering and are now close to 2019 levels, according to Hammerson CEO, Rita-Rose Gagné.
Gagné said: “We saw a good leasing performance now ahead of previous passing rent and marginally ahead of ERV. We have strengthened our tenant profile, we have a strong and diversified leasing pipeline for the second half, and robust occupancy levels across our destinations.”
Hammerson concluded £10.5 million of leasing deals in H1 22, with headline leasing 31% above previous passing, net effective rent +1% vs ERV.
“We are a better, more resilient, and financially secure business as a result of the actions taken since the beginning of 2021. We are conscious of the potentially volatile environment ahead and remain focussed on delivering our strategy. We have identified a number of levers within our control to continue to create value. We see more opportunities ahead,” Gagné added.
