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Hammerson has reported a 6% increase in like-for-like gross rental income following a record year of leasing with 306 deals.
As a result, Hammerson also saw a 11% increase in its adjusted earnings growth to £116m.
Footfall across its retail locations was also up 3% with LFL sales in the UK up 1% and 3% in France.
However, its gross rental income slightly dipped from £215m to £208m. Its flagship portfolio occupancy also remained strong but broadly flat at 95% year on year.
Additionally, the group’s Value Retail division recorded a 10% increase year-on-year and were 5% above 2019 levels. Footfall across the Villages such as Bicester and La Vallée also saw a 9% increase year-on-year but remained below 2019 levels.
Looking ahead, the group expects consumer spending to be resilient, with an improving outlook for 2024.
Rita-Rose Gagné, chief executive of Hammerson, said: “Our city centre destinations are in high demand. This year we delivered a positive performance across our key strategic, operational and financial metrics. Like-for-like gross rental income was up 6%, following another record year of leasing. Occupancy remained strong and footfall and sales were up again. We’ve strengthened our operational platform, whilst reducing costs by 14%. As a result, adjusted earnings rose 11% to £116m, whilst net debt was down 23%, with ample liquidity.
“Over the last three years, we have delivered against all strategic milestones. We now have a core portfolio focused on urban locations which are evolving into my vision: vibrant, 24/7 multi-use estates. These destinations are fast growing, and part of the fabric and infrastructure of the cities in which we operate. Whilst our eyes are open to the current macroeconomic environment, our occupiers are thriving and our visitor numbers are on the rise in our realigned portfolio.”
She added: “We are reaping the rewards of the investments we are making in our core portfolio alongside best-in class occupiers, which underpins the high levels of demand for our space. We expect this trajectory to continue in the year ahead. We have a strong pipeline of leasing and repurposing opportunities. There is still more for us to do, but we are now entering a time where having the capability to invest and operate with discipline and conviction will be rewarded.”
