(Alliance News) - Retail-focused property developer Hammerson PLC on Thursday said its rent collections for have continued to improve since retail spaces reopened in Europe.
"We expect all rent collections to continue to improve as remaining Covid-related restrictions are lifted," the Johannesburg and London duel-listed firm said.
Non-essential retail has resumed in the regions where Hammerson holds key venues, with shops re-opening from April 12 in the UK, and in May for Ireland and France.
The London-based company noted that, after an initial re-opening spike, average seven-day retail footfall has settled around 70% to 80% of 2019 levels. Hammerson added that retailers report higher sales and conversion rates as visitors now are more likely to "shop with purpose".
However, restrictions continue to effect hospitality, leisure and cinema operators in particular, the company noted. Hammerson said that the operational impact of additional restrictions in France from July 21 remain to be seen.
France recently announced renewed coronavirus restrictions which will come into effect on Wednesday next week.
Nevertheless, with restrictions generally easing, the firm said it has taken 89% of the rent billed in 2020, collecting GBP211 million of the total GBP264 million now owed.
In March, Hammerson said it collected net rental income of GBP157.6 million in 2020, down 49% from GBP308.5 million in 2019.
The impact of the pandemic was evident as the firm's pretax loss widened dramatically to GBP1.73 billion in 2020, from GBP779.3 million in 2019.
Since then the developer has waived, written off or delayed payment of GBP12 million of the GBP112 million due in the first half of 2021. Of the GBP100 million remaining, Hammerson has received GBP68 million, or 68%.
In comparison, by April 20 the company had collected 46% of the GBP113.6 million due in the first half.
To date, Hammerson has taken 47% of the rent due in the third quarter of 2021, or GBP18 million of the GBP42 million owed. However, the company noted that rent due in the third quarter of 2021 has been collected more quickly than the first and second quarters.
So far in 2021, Hammerson has collected 62% of rents owed, taking GBP86 million of the GBP154 million due with a further GBP15 million written off, waived or not yet due.
The company said it does not expect to grant future concessions to tenants and will continue to pursue rent owed via "all avenues" in the coming year.
Shares in Hammerson were trading down 1.6% at 35.54 pence each in London and down 3.5% at ZAR7.14 each in Johannesburg on Thursday.
By Scarlett Butler; scarlettbutler@alliancenews.com
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Hammerson (HMSO)