Shares in commercial property giant Hammerson climbed today after it said its adjusted profit had risen - but added it had been hit as its properties' capital values deteriorated.
When adjusted for the revaluation of its commercial properties, Hammerson profits fell 56 per cent from £727.8m for 2015 to £317.3m last year.
But adjusted profits rose 9.4 per cent from £210.9m to £230.7m. Its share price was up 4.5 per cent at 590p at the time of writing.
Hammerson increased its final dividend from 12.8p to 13.9p, a growth of 8.6 per cent. Net rental income rose 8.8 per cent for the year, up from £318.6m to £346.5m.
Why it's interesting
Non-adjusted profits at Hammerson slipped due to a fall in the capital values of its shopping centres and retail parks. The company made a revaluation loss of £118.3m on its retail parks and £5.8m on its shopping centres. Taking into account a revaluation gain of £2.2m on Hammerson's other commercial property assets, the company made a net revaluation loss of £121.9m.
What Hammerson said
David Atkins, Hammerson chief executive, said:
I am pleased to report another set of strong financial results, with sector-leading earnings and dividend growth reflecting robust operational performance across all parts of the portfolio.
Looking ahead, despite some UK retail headwinds and geopolitical uncertainty, I am confident that we have a resilient and adaptable business with multiple opportunities to drive similar levels of growth and therefore continue to deliver sector-leading income-focused returns.