Hammerson full year earnings boosted by rental income growth

Hammerson, the property development and investment company, has reported a 60% rise in adjusted earnings to £105 million for the year ending 31 December 2022. 

The rise in earnings was benefited by a 8% rise in gross rental income, which the company said is due to occupiers pivoting "to best-in-class destinations". Like-for-like net rental income was up 29% year-on-year, whilst gross administration costs dropped 17%.

Hammerson signed 317 leasing deals in 2022, representing £45 million of headline rent. As part of this, 43% of leasing was from best-in-class fashion brands. Flagship occupancy increased 1% to 96% from half year.

Hammerson is currently the owner, operator and developer of a number shopping destinations, including the Bullring & Grand Central in Birmingham, Highcross in Leicester, Union Square in Aberdeen, and Westquay in Southampton.

Retail footfall improved 11% from January to December 2022, ending the year at 90% of 2019 levels. The company also emphasised that positive footfall and sales trends have continued into the first few months of 2023.

Rita-Rose Gagné, CEO of Hammerson, said: “Today, Hammerson is a better, more agile, and resilient business. Our results are evidence of another year of significant strategic, operational and financial progress, against a volatile macroeconomic backdrop.

"We have enlivened and reinvigorated our assets by introducing new occupiers, uses and concepts. We are actively re-purposing our destinations, with an increased emphasis on commercialisation, marketing and placemaking, in turn creating exceptional spaces for our occupiers and customers.

"Looking forward, we have strong momentum and are well placed to deliver another year of robust adjusted earnings and cashflow in 2023 and anticipate a return to cash dividends.”