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Shopping centre owner Hammerson has revealed that its FY22 adjusted earnings increased 60% to £105m, boosted by a positive income rental performance.
It confirmed that its net rental income increased 29% as it said “occupiers pivot to best-in-class destinations”.
This comes despite group portfolio value falling 5% to £5.1bn (2021 £5.4bn) due to revaluation deficit and disposals.
Over the year, Hammerson added that footfall improved 11% points from January to December 2022, ending the year at 90% of 2019 levels – with sales remaining ahead of 2019 levels. Positive footfall and sales trends have continued into the first few months of the year.
It also agreed 317 leasing deals in 2022 (+2% excluding disposals), representing £45m of headline rent.
Rita-Rose Gagné, chief executive of Hammerson, said: “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 – delivering a significant increase in adjusted earnings. Notwithstanding downward revaluations at the end of the year, we have maintained a stable balance sheet.
“In the last two years, we have simplified and focused the core portfolio on city centres, delivering £628m of gross proceeds, strengthened the balance sheet, recycled capital for investment in our core assets and developments, and have made rapid progress on the transformation of our operating model and platform, resulting in a significantly reduced and reducing cost structure.”
She added: “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.
“We have set ourselves more to do and continue to be focused on disciplined execution of our strategy. 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.”
