Hammerson plc, the listed landlord which owns popular UK malls the Bullring & Grand Central in Birmingham and Brent Cross in London as well as value centre, saw its adjusted earnings rise 60% to £105m in the year to end-December 2022. This is compared with £66m in the year to end-December 2021.
The London-based property development group said its pretax loss in the year narrowed to GBP164.0m, from GBP408.0m for the year to end-December 2021.
Hammerson said the loss was attributed to a GBP281.7m revaluation deficit in the final quarter of 2022, though this was down 38% from GBP456.1 the previous year.
Revenue dropped 4.2% to £131.4m from £137.2m.
Hammerson paid 0.2 pence in cash dividends over the course of 2022, halved from 0.4p a year prior.
The firm is not recommending further dividend payments for 2022, but anticipates to reinstate cash dividends in 2023.
Its net tangible asset per share fell by 17% to 53p from 64p.
Rita-Rose Gagné, Chief Executive of Hammerson said the company had been carefully restructured in recent years post Brexit, wherein she took the helm.
“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 and market backdrop. We have focused on what we can control, sharper operations growing like-for-like gross rental income and reducing the cost base. This helped us deliver a significant increase in adjusted earnings. Notwithstanding downward revaluations at the end of the year, we have maintained a stable balance sheet,” said Gagné.
In the past two years, Hammerson has earned £628m from asset sales as it strengthened its balance sheet.
“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. We have brought a sharper focus to our development pipeline to create value and optionality,” said Gagné.
While Hammerson remained very mindful of the uncertain macroeconomic outlook, management felt it had a strong operational grip on the business and was targeting a further 20% reduction in gross administration costs by the end of 2024, and to complete its £500m disposal programme by the end of the year.
“We have strong momentum and are well placed to deliver another year of robust underlying earnings and cashflow and anticipate a return to cash dividends during the year,” said Gagné.
alistair@propertyflash.co.za