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Hammerson swings a loss despite rise in H1 earnings

Sophie Smith
27 July 2023

Hammerson, the property development and investment company, has reported a 15% increase in adjusted earnings to £56 million for the first half ending 30 June 2023.

The company signed 134 leasing deals during the six months, representing £18.3 million of headline rent, with a "strong" leasing pipeline for the second half.

Net debt totalled £1.3 billion, down 24% against £1.7 billion in FY22. The company completed £215 million disposals in the first half, bringing its total since start of FY22 to £410 million.

It remains on track to complete the £500 million programme by end of FY23, "further strengthening the balance sheet whilst bringing a sharper focus to investment opportunities in the core portfolio".

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

Footfall across its destinations increased 4% year-on-year and 2% in the UK, whilst like-for-like sales increased 3% in the UK.

Whilst the macroeconomic outlook remains uncertain, Hammerson said it has "strong leasing and operational momentum and are well placed to deliver another year of robust adjusted earnings and cash flow".

Rita-Rose Gagné, CEO of Hammerson, said: "Our core portfolio continues to attract the best occupiers which, combined with our emphasis on commercialisation and placemaking, is creating exceptional destinations for customers.

"At the same time, we continue to transform our operating model and platform, bringing more integrated and efficient ways of working while reducing costs.

"Our strategy is driven by the repositioning of our unique city centre destinations in some of Europe’s fastest-growing cities from traditional retail-anchored footprints to a broader mix of uses.

"Today we are a more agile, market facing, asset-centric Hammerson that continues to reshape our urban destinations to be fit for future lifestyles."

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