Last checked at 8 Nov 2022 07:00
Hammerson plc ("Hammerson" or the "Group")
8 November 2022
Q3 trading, operational and rent collection update
Adjusted earnings
· Hammerson now expects FY22 adjusted earnings to be not less than £100m.
· Year-to-date, like-for-like gross rental income increased by 11%; net rental income continues to benefit from strong leasing performance, improved collections and resulting lower bad debt charges.
· Earnings also benefited from lower administration and net finance costs, and a better than expected performance from Value Retail.
Footfall
· UK and Ireland footfall has continued to show an improving trend to currently c.90% of 2019 levels, with France at c.95%.
· Footfall consistently exceeds national indices.
Sales
· Sales continue to be above 2019 levels with UK Q3 sales +4%; France +3%; and Ireland +2%.
· Footfall at Value Retail in Q3 was around 90% of 2019 levels, with brand sales approaching 93%, while spend per visit is around 4% ahead of 2019.
Leasing
· 221 leases have been signed year-to-date, representing £17m of headline rent, 43% ahead of previous passing rent and 2% ahead of ERV on a net effective basis.
· More than half of leasing has been to non-fashion categories, including F&B, leisure and services, although best-in-class fashion brands and new concepts remain core to our offer.
· Demand for prime space remains high, with Group occupancy at 95% including the Cergy extension. Our pipeline for Q4 is strong.
Rent Collections
· Group Q3 22 rent collections to date are at 93%.
· We expect collection rates to continue to improve further by the full year.
Valuations
· Yields remained stable in aggregate at Q3 with only marginal adjustments to ERVs.
Debt and disposals
· Value Retail completed the refinancing of Bicester Village in September.
· The Group announced on 3 November 2022 that it intends to exercise the par call option on the remaining €235.5m of 2023 eurobonds with existing cash on balance sheet.
· No further Group unsecured debt maturities not covered by existing cash until 2025.
· Hammerson delivered £194m in disposals in H1. Discussions are ongoing with a range of interested parties on a further c.£300m of non-core disposals, and we remain confident of completion of these disposals by the end of 2023 as previously guided.
Investor Enquiries:
Josh Warren, Director of Strategy and Investor Relations
Tel: +44 (0)20 7887 1109 Email: josh.warren@hammerson.com
Media Enquiries:
Dido Laurimore, FTI Consulting
Tel: + 44 (0)7801 654424 Email: dido.laurimore@fticonsulting.com
Natalie Gunson, Communications Director, Hammerson
Tel: +44 (0)20 7887 1063 Email: natalie.gunson@hammerson.com
ENDS
This announcement has also been released on the SENS system of the Johannesburg Stock Exchange and on Euronext Dublin.