Hammerson: Shopping centre champ fails to reassure investors on retail outlook as shares fall
Shopping centre giant Hammerson has failed to reassure investors on the outlook for retail, with shares dropping 11 per cent after the firm said its portfolio value had fallen.
The group, which owns Brent Cross shopping centre, increased its adjusted earnings by 60 per cent for the year to hit £105m, up from £66m the prior year, thanks to consumers returning to shopping malls.
Hammerson, which owns a range of shopping centres across the UK, also said it had shrunk its net debt by four per cent to £1.73bn compared to £1.79bn in 2021 and was positive looking ahead.
However, Hammerson reported that its group portfolio value was down five per cent to £5.1bn from £5.4bn due to revaluation deficit and a disposal of assets.
The group’s optimistic outlook failed to reassure investors, with Hammerson’s share price closing down 11 per cent after the update.
Last year the group disposed of its Leeds Victoria Gate and Victoria Quarter shopping centres in Leeds for £120m and its 50 per cent share of Silverburn in Glasgow for £70m .
Hammerson said it is looking to dispose of a further £300m worth of assets by December 2023.
Despite consumers remaining cautious about spending due to a rise in the cost of living, Hammerson said it saw footfall improve 11 per cent from from January to December 2022, ending the year at 90 per cent of 2019 levels.
The group has been struggling to regain its market value since the pandemic, when its sites were forced to cease trading due to social distancing measures.
Rita-Rose Gagné, chief executive of Hammerson, said: “Today, Hammerson is a better, more agile, and resilient business. Our results are evidence of another year of significant strategic, operational and financial progress, against a volatile macroeconomic and market backdrop.
“We have set ourselves more to do and continue to be focused on disciplined execution of our strategy. Looking forward, we have strong momentum and are well placed to deliver another year of robust adjusted earnings and cashflow in 2023 and anticipate a return to cash dividends.”