Hammerson posts drop in annual profit

In 2019, adjusted EPS at Hammerson plc decreased by 2.6 pence or 8.5 percent to 28 p, which the company said was driven by the reduction in NRI associated with disposals in 2018 and 2019 and a weaker performance across the UK like-for-like portfolio. The group’s adjusted profit was 214 million pounds (277 million dollars), 26.3 million pounds or 10.9 percent lower than in 2018. Net rental income was down 11.2 percent to 308.5 million pounds (399.8 million dollars), while the company added, total disposals of 975 million pounds (1,263 million dollars), including 542 million pounds generated in 2019 were ahead of 500 million pounds target.

Commenting on the company’s annual trading, David Atkins, Chief Executive of Hammerson, said in a statement: “Against a challenged retail and investment backdrop, we have exceeded our 2019 disposal target, exited the retail parks sector as we said we would and reduced debt by a third. With the outlook for the UK retail market remaining uncertain, we believe we should maintain our focus on reducing debt during 2020.”

“The magnitude of the challenge facing UK retail is significant. However, as brands look to optimise their store estates and strike the right balance between online and physical retail, the best destinations continue to be highly relevant - this is highlighted by the rise in visitor numbers across all our regions. We will build a stronger business for the future with our focus on this, alongside improved performances in France and Ireland, the extensive opportunity offered by City Quarters and the outstanding contribution from premium outlets,” Atkins added.

During 2019, the group’s properties produced a total return of negative 5.6 percent. For flagship assets, the total returns were negative 15.8 percent in the UK, negative 6.5 percent in France and negative 3.6 percent in Ireland, while premium outlets produced the group's highest return of 13.6 percent. Like-for-like NRI declined by 4.2 percent during 2019. Hammerson said, negative movements of 6.7 percent and 5 percent respectively at its UK and Ireland flagships were partially offset by an increase of 2.1 percent in France.

Picture: Birmingham Bullring, courtesy of Hammerson