(Alliance News) - Hammerson PLC on Thursday restored its cash dividend following intense shareholder pressure, though the property developer reported an interim loss.
Hammerson is a London-based owner, operator and developer of urban shopping centres in the UK, Ireland and France.
It declared an interim dividend of 0.72 pence in cash, citing "our progress of the last few years". A year before it had a paid 0.2p per share in cash as a final dividend for 2021, and an enhanced scrip alternative of 2.0p.
The decision comes after Lighthouse Properties PLC, which holds nearly 23% stake in Hammerson, accused Hammerson of being "value destructive" and demanded the resumption of dividends.
Lighthouse is a Mauritius-based property investor vehicle of former Hammerson director Desmond de Beer. In May, Lighthouse failed to install its representative on the Hammerson board an an annual general meeting.
For the six months that ended June 30, Hammerson reported IFRS loss of GBP1.2 million, swung from profit of GBP50.3 million a year earlier. IFRS stands for international financial reporting standards.
The company recorded impairment of joint ventures amounting to GBP22.1 million.
At December 31, 2022, Hammerson's Highcross and O'Parinor joint ventures, in which Hammerson had 50% and 25% interests, respectively, had GBP125 million of borrowings secured against the property interests which were non-recourse to the group.
In both cases, the loans were in breach of some conditions and the group had been working constructively with the respective lenders on options to realise "best value" for all stakeholders.
Over the first half, gross rental income was GBP106.3 million, down marginally 1.0% from GBP107.4 million.
Flagship occupancy stood at 95.1% as at June 30, compared to 93.8% as at June 30, 2022.
"We are pleased to have delivered a strong first half and announce a return to a cash dividend as we look to the future with confidence," Hammerson Chief Executive Rita-Rose Gagne said.
"Our leasing momentum in 2022 has continued into the first half of 2023 and we have a strong pipeline for the second half," Gagne said.
While the macroeconomic outlook remains uncertain, the group said it has strong leasing and operational momentum and are well placed to deliver another year of robust adjusted earnings and cash flow.
Shares in Hammerson were up 1.8% to 25.86 pence in London on Thursday morning. They rose by 3.3% in Johannesburg to ZAR5.92.
By Artwell Dlamini, Alliance News reporter
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Hammerson (HMSO)