HAMMERSON BEN­E­FITS FROM POS­I­TIVE ECO­NOMIC GROWTH IN EUROPE

Shopping Center News - - NEWSMAKER INTERNATIONAL -

Hammerson Reit, a lead­ing Euro­pean shop­ping cen­tre owner, per­formed well, largely due to eco­nomic growth in Europe. The com­pany’s ba­sic earn­ings a share climbed 74.9 per­cent and in­terim div­i­dend a share rose 5.9 per­cent in the re­port­ing pe­riod. Hammerson, one of the largest prop­erty stocks on the JSE, is con­sid­ered by an­a­lysts to be one of the most un­der­val­ued with sig­nif­i­cant po­ten­tial. The Euro­pean shop­ping cen­tre group, which has a mar­ket cap­i­tal­i­sa­tion of nearly R79bn, listed on the JSE in Septem­ber 2016 in a bid to ex­tend its share­holder base.

“To­day we an­nounce an­other strong set of re­sults, un­der­pinned by record leas­ing ac­tiv­ity and pos­i­tive cap­i­tal value growth right across our busi­ness, which has been boosted by our high-growth mar­kets in Ire­land and pre­mium out­lets,” said CEO David Atkins. “This per­for­mance is par­tic­u­larly pleas­ing in the con­text of a more un­cer­tain po­lit­i­cal and eco­nomic back­drop and struc­tural shifts in the re­tail sec­tor.”

Hammerson is an owner, man­ager and de­vel­oper of re­tail des­ti­na­tions in Europe. Its port­fo­lio in­cludes in­vest­ments in 23 prime shop­ping cen­tres in the UK, Ire­land and France, 17 re­tail parks in the UK and 20 pre­mium out­lets across Europe. A cap­i­tal re­turn of 2.5 per­cent in Ire­land and 6 per­cent in the com­pany’s pre­mium out­lets sup­ported an over­all re­turn of 1.8 per­cent. Hammerson’s share price has fallen 14 per­cent over the past year. But An­chor Stock­bro­kers head of re­search Craig Smith said its Euro­pean malls were tak­ing the strain off its UK malls.

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