Last checked at 15 Oct 2020 07:00
Hammerson plc (the Company)
15 October 2020
Update on rent collection rates and disposal of VIA
Hammerson continues to prioritise the well-being of its customers, colleagues, and partners, and ensuring its destinations remain attractive and safe spaces for consumers to visit and brands to trade. As at 14 October, all of the Group's destinations are open, with 94% of the flagship tenants permitted to trade by the relevant local governments in UK and Ireland open, and over 99% in France.
Rent collection
Since the onset of the pandemic, Hammerson has recognised the need to support brands, particularly while destinations were closed. We have worked hard to reach agreements on rent during the closure period that are fair and reasonable. This has involved a combination of rent deferrals, moving to monthly payments, and in some cases waivers, particularly for smaller and independent brands.
At a Group level, 41% of the Q4 rent has been received, with the UK collecting 38%, Ireland 33%, and France 51%. The level of Q4 collections is higher than at the same point following the June quarter date across all of the Group's territories.
With most destinations having fully reopened in June and July, despite the extension of the rent moratorium in the UK, Hammerson expects Q3 and Q4 rent collection rates to continue to improve, and for occupiers to pay the agreed rent for these periods, even if discussions regarding Q2 are ongoing.
Rent Net | Amount payable (£m) | Not yet due (£m) | Deferred (£m) | Collected (£m) | Outstanding (£m) | Collected of due (%) | Collected at 31 July (%) |
Q1 | 67.8 | - | - | 65.5 | 2.3 | 97 | 96 |
Q2 | 69.7 | - | 7.4 | 36.7 | 25.6 | 59 | 46 |
H1 | 137.5 | - | 7.4 | 102.2 | 27.9 | 79 | 72 |
Q3 | 68.8 | - | 1.2 | 39.6 | 28.0 | 59 | 34 |
Q4 | 61.7 | 11.4 | - | 20.8 | 29.5 | 41 |
|
YTD | 268.0 | 11.4 | 8.6 | 162.6 | 85.4* | 66 |
|
*Of the outstanding balance of £85.4m, we have waived £11.9m, principally relating to Q2 rents
VIA Disposal
Hammerson today confirms that the necessary clearances from the relevant competition authorities for the c.€301m (c.£274m) disposal of VIA Outlets to APG have been received. No further clearances or approvals are required and as a result the transaction is on track to complete in Q4 of this year.
CEO Update
Following the announcement on the 30 September of the appointment of Rita-Rose Gagné as Chief Executive Officer and Executive Director, Hammerson can confirm that she will join the Company and Board on the 2 November 2020 and David Atkins will step down as Chief Executive Officer and Executive Director on this date.
The announcement above has also been released on the SENS system of the Johannesburg Stock Exchange.
ENDS
Investor Contact
Josh Warren, Hammerson, Head of Investor Relations
Tel: +44 20 7887 1053
josh.warren@hammerson.com
Richard Shaw, Hammerson, Director of Finance, Group Finance & Reporting
Tel: +44 207 887 1820
richard.shaw@hammerson.com
Press Contacts
Hammerson
Catrin Sharp, Head of Corporate Communications
Tel: +44 20 7887 1063
catrin.sharp@hammerson.com
Bryn Woodward, Media Relations Manager
Tel: +44 207 887 1083
bryn.woodward@hammerson.com
FTI Consulting (for Hammerson)
Dido Laurimore
Tel: +44 20 3727 1000/ 0780 1654424
dido.laurimore@fticonsulting.com
Notes to editors
Hammerson
Hammerson create vibrant, continually evolving spaces, in and around thriving European cities, with a focus on flagship retail destinations and Premium Outlets. As of 30 June 2020, our portfolio of high-quality venues had a value of £7.7 billion and included 21 flagship destinations in thriving cities, and investments in premium outlet villages through our partnership with Value Retail and the VIA Outlets joint venture. Key retail venues include Bullring & Grand Central, Birmingham, Bicester Village, Oxfordshire, Dundrum Town Centre, Dublin, and Les Terrasses du Port, Marseille.