Hammerson reports high occupancies across its portfolio

Hammerson, UK-based landlord and owner of premium retail assets, says demand for space is high, with group occupancies reaching 95%, including the Cergy extension.

In the trading update for the third quarter of this year, Hammerson said rent collections to date are at 93% and are expected to improve further for the full year.

“Year to date, 221 leases have been signed, and this represents £17m of headline rent, 43% ahead of previous passing rent and 2% ahead of estimated rental value (ERV) on a net effective basis,” the company said in a statement,

Of these leases, more than half have been to non-fashion categories, including food and beverages, and leisure and services, though top-end fashion brands and new concepts remain core to the offer.

Hammerson has a primary listing on the London Stock Exchange and a secondary inward listing on the JSE. It owns a portfolio of assets in Europe with flagship retail destinations and venues.

The company said it expects adjusted earnings for the 2023 financial year to be not less than £100m.

Year-to-date, like-for-like gross rental income increased by 11%, while net rental income continues to benefit from the strong leasing performance and improved collections due to lower bad debt charges.

“Earnings also benefited from lower administration and net finance costs, and a better-thanexpected performance from value retail.”

Hammerson said footfall and sales in the UK, Ireland and France continue to improve to 2019 levels, with footfall in these markets consistently exceeding national indices.

“Footfall at value retail was about 90% of 2019 levels, with brand sales approaching 93%, while spend per visit is around 4% ahead of 2019,” it said.

Value retail completed the refinancing of Bicester Village in September.

During the first half of 2022, Hammerson achieved £194m in disposals with a further £300m of noncore disposals expected by the end of 2023.

In Tuesday afternoon trade, Hammerson’s share price rose by 8.33% to R4.68.

NET RENTAL INCOME BENEFITS FROM STRONG LEASING PERFORMANCE AND BETTER COLLECTIONS