Last checked at 25 Apr 2023 07:00
Hammerson plc ("Hammerson" or the "Group")
25 April 2023
Pre AGM trading update
Hammerson plc today announces a trading update for the three months ended 31 March 2023 which is being issued ahead of the Company's Annual General Meeting to be held at 0900 BST on 4 May 2023 at Marble Arch House, London.
Rita-Rose Gagné, Chief Executive of Hammerson, said:
"We have maintained our focus on execution during the first few months of the year. We have a strong operational grip which is delivering top line growth, with continued momentum in leasing and a strong pipeline. We have further reduced costs, with more to come as we create a sustainable and agile platform.
We have exited minority stakes in France and other non-core interests, bringing total disposals since the start of 2021 to over £840m, and a sharper focus on our core portfolio of city centre assets and land. We have further strengthened the balance sheet and maintain a disciplined approach to capital allocation. Looking forward, we have strong momentum and remain on track to return to cash dividends as previously guided."
Strong Q1 reflecting consistent execution.
· Like-for-like gross rental income growth of +5% reflecting robust leasing, car parking and commercialisation performance
· Like-for-like net rental income was up +5% benefiting from solid collections (FY 22 96%;
Q1 23 92%), lower bad debt charges and tenant incentive impairments
· Gross administration costs decreased 13% year-on-year in line with our commitment to reduce these by 20% by the end of 2024
· Value Retail has seen a strong start to the year with spend per visit up +3%
Footfall and sales
· Footfall in the UK and France up +6% year-on-year; Ireland +13%
· Sales in the UK up +6% year-on-year; France +11%; Ireland +7%
· Value Retail footfall up +14% year-on-year; sales +17%
Leasing and occupancy
· Continued momentum on leasing with 61 leases signed year-to-date, representing £9m of rent on a 100% basis
· Headline rent +18% ahead of previous passing rent, and +5% ahead of ERV on a net effective basis
· Diverse leasing mix including non-fashion, restaurant, leisure, and services
· Continued demand with a further £16m in solicitors' hands
· Occupancy up year-on-year to 95%
Valuations
· Q1 managed portfolio valuations flat on 31 December 2022; slight increase to ERVs offset by marginal adjustment to yields
Disposals
· The Group remains disciplined in its disposal programme
· Since full year 2022 results in March, we have completed disposals including Hammerson's share of Italie Deux and Italik, delivering a cumulative c.£410m of our £500m 2023 target; the Group remains confident of completing the programme on schedule
Balance sheet and liquidity
· £22m of cash distributions received from Value Retail
· Including disposals to date and debt written down, the Group's credit metrics have further improved:
Pro-forma | 31 December 2022 | |
· Headline LTV | 35% | 39% |
· FPC LTV | 44% | 47% |
· Net debt/EBITDA | 9x | 10.4x
|
· The Group's RCF facility of £613m extended to April 2026 with pro forma liquidity of £1.2bn
· No further Group unsecured debt maturities not covered by existing cash until 2026
Investor Enquiries:
Josh Warren, Director of Strategy, Commercial Finance, and Investor Relations
Tel: +44 (0)20 7887 1053 Email: josh.warren@hammerson.com
Media Enquiries:
Natalie Gunson, Communications Director, Hammerson
Tel: +44 (0)20 7887 4672 Email: natalie.gunson@hammerson.com
MHP for Hammerson
Oliver Hughes
T: +44 7885 224532 E: Hammerson@mhpgroup.com
Ollie Hoare
T: +44 7817 458804 E: Hammerson@mhpgroup.com
ENDS
This announcement has also been released on the SENS system of the Johannesburg Stock Exchange and on Euronext Dublin.