Hammerson doubles profit on bullish UK demand
Developer Hammerson has announced this morning that growing demand from UK retailers saw profit before tax up 140 per cent to £341.2m in 2013, from £142.2m a year earlier.
The shopping mall operator saw growth of 2.1 per cent in like-for-like net rental income, and said that occupancy levels are past its benchmark, at 97.7 per cent.
On the back of the positive results, the group has upped its final dividend by eight per cent, taking its total dividend for the year to 19.1p.
The strong demand for retail property means Hammerson’s seen leases signed at two per cent above estimate rental value.
While the UK’s strengthening economic position has buoyed the company, it said the picture in France is “less clear cut”.
Chief executive David Atkins said, though, that personal debt levels remain low, meaning that, when growth does return, there’s a good opportunity for consumer spending to pick up pace.
We have clear visibility on a number of major development projects which will create the destination venues of the future, and drive returns to our shareholders. The first of these, Les Terrasses du Port in Marseille, will open in May this year. We remain on course to deliver strong growth in earnings and dividends over the medium term.