(Alliance News) - Hammerson PLC said on Thursday it expected rent collections to improve after falling in 2021 as lockdown measures hit footfall.
The London-based real estate investment trust focused on shopping centres said rent collections slipped to 88% in 2021, down from 97% in 2020.
In the first quarter, it said 22 collections to date stood at 74% of billable rent. As with the last two quarters, the UK remains the strongest performer with 78% of rent collected, Ireland stands at 75%, and France at 66%.
"We expect collection rates to continue to improve as we go through the quarter," Hammerson said.
The real estate firm said it expected its 2021 adjusted earnings will be in the range of GBP75 million and GBP80 million, ahead of the minimum of GBP60 million previously indicated.
Gross rental income was ahead of expectations across the group's managed portfolio, while value retail delivered a stronger-than-expected fourth-quarter performance.
In the group's managed portfolio, as government restrictions were reintroduced during the key Christmas trading period, footfall in the UK and Ireland softened marginally, while France remained resilient.
Overall, footfall recovered strongly during the year, particularly when restrictions were eased, with some destinations exceeding 2019 levels and consistently exceeding national indices.
"This trend has continued in 2022 to date," Hammerson said.
Hammerson shares rallied 4.0% to ZAR7.89 in Johannesburg, and gained 2.4% to 38.47 pence in London.
By Artwell Dlamini; artwelldlamini@alliancenews.com
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Hammerson (HMSO)