Understated Hammerson ahead in Q3, next quarter pipeline 'strong'

By

Nigel TAYLOR

Published
Nov 8, 2022

Malls giant Hammerson continues to make a post-pandemic recovery with third-quarter rental income and sales rising, and it expects full-year adjusted earnings to follow suit.

The major UK commercial property group, whose portfolio includes the Bullring/Grand Central in Birmingham, Bicester Village Designer Outlet Centre in Oxfordshire and key shopping centres across Europe, said year-to-date gross rental income on a like-for-like basis rose 11%.

Net rental income also continues to benefit from a strong leasing performance, improved collections and, as a result, lower bad debt charges.

The company said it now expects 2022 adjusted earnings to be at least £100 million, up from £80.9 million in the year-ago period. It said earnings benefited from lower administration and net finance costs, and a better-than-expected performance from Value Retail.

Footfall has also continued to improve to around 90% of pre-pandemic 2019 levels in the UK and Ireland, with France around 95%. Sales continue to exceed 2019 levels with third-quarter UK sales up 4% and Ireland up 2%. Around 93% of third-quarter rent has been collected to date, it noted.

A total of 221 leases have been signed year-to-date, representing £17 million of headline rent, 43% ahead of previous passing rent and 2% ahead of estimate rental value.

Without giving much detail or comment in the trading statement, Hammerson did at least say “demand remains high and the fourth-quarter pipeline is strong”.