Pre AGM trading update

Hammerson PLC
25 April 2023
 

Hammerson plc ("Hammerson" or the "Group")

25 April 2023

Pre AGM trading update

Hammerson plc today announces a trading update for the three months ended 31 March 2023 which is being issued ahead of the Company's Annual General Meeting to be held at 0900 BST on 4 May 2023 at Marble Arch House, London.

Rita-Rose Gagné, Chief Executive of Hammerson, said:

"We have maintained our focus on execution during the first few months of the year.  We have a strong operational grip which is delivering top line growth, with continued momentum in leasing and a strong pipeline.  We have further reduced costs, with more to come as we create a sustainable and agile platform. 

We have exited minority stakes in France and other non-core interests, bringing total disposals since the start of 2021 to over £840m, and a sharper focus on our core portfolio of city centre assets and land.  We have further strengthened the balance sheet and maintain a disciplined approach to capital allocation.  Looking forward, we have strong momentum and remain on track to return to cash dividends as previously guided."

 

Strong Q1 reflecting consistent execution.

·    Like-for-like gross rental income growth of +5% reflecting robust leasing, car parking and commercialisation performance

·    Like-for-like net rental income was up +5% benefiting from solid collections (FY 22 96%;

Q1 23 92%), lower bad debt charges and tenant incentive impairments

·    Gross administration costs decreased 13% year-on-year in line with our commitment to reduce these by 20% by the end of 2024

·    Value Retail has seen a strong start to the year with spend per visit up +3%

 

Footfall and sales

·   Footfall in the UK and France up +6% year-on-year; Ireland +13%

·   Sales in the UK up +6% year-on-year; France +11%; Ireland +7%

·   Value Retail footfall up +14% year-on-year; sales +17%

 

Leasing and occupancy

·   Continued momentum on leasing with 61 leases signed year-to-date, representing £9m of rent on a 100% basis

·   Headline rent +18% ahead of previous passing rent, and +5% ahead of ERV on a net effective basis

·   Diverse leasing mix including non-fashion, restaurant, leisure, and services

·   Continued demand with a further £16m in solicitors' hands

·   Occupancy up year-on-year to 95%

Valuations

·   Q1 managed portfolio valuations flat on 31 December 2022; slight increase to ERVs offset by marginal adjustment to yields

 

 

Disposals

·   The Group remains disciplined in its disposal programme

·   Since full year 2022 results in March, we have completed disposals including Hammerson's share of Italie Deux and Italik, delivering a cumulative c.£410m of our £500m 2023 target; the Group remains confident of completing the programme on schedule

 

Balance sheet and liquidity

·   £22m of cash distributions received from Value Retail

·   Including disposals to date and debt written down, the Group's credit metrics have further improved:


Pro-forma

31 December 2022

·    Headline LTV

35%

39%

·    FPC LTV

44%

47%

·    Net debt/EBITDA

9x

10.4x

 

·   The Group's RCF facility of £613m extended to April 2026 with pro forma liquidity of £1.2bn

·   No further Group unsecured debt maturities not covered by existing cash until 2026

 

Investor Enquiries:

Josh Warren, Director of Strategy, Commercial Finance, and Investor Relations 

Tel: +44 (0)20 7887 1053    Email: josh.warren@hammerson.com

Media Enquiries:

Natalie Gunson, Communications Director, Hammerson                  

Tel: +44 (0)20 7887 4672    Email: natalie.gunson@hammerson.com

MHP for Hammerson

Oliver Hughes

T: +44 7885 224532  E: Hammerson@mhpgroup.com


Ollie Hoare

T: +44 7817 458804   E: Hammerson@mhpgroup.com

 

ENDS

 

This announcement has also been released on the SENS system of the Johannesburg Stock Exchange and on Euronext Dublin.

This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact rns@lseg.com or visit www.rns.com.

RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our Privacy Policy.
 
END
 
 

Companies

Hammerson (HMSO)
UK 100

Latest directors dealings