REG - Hammerson PLC - Half-year Report
31/07/2025 07:01
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RNS Number : 2884T Hammerson PLC 31 July 2025
31 July 2025
PRESS RELEASE
THIS ANNOUNCEMENT CONTAINS INSIDE INFORMATION
HAMMERSON plc - HALF YEAR 2025 RESULTS
Growth in gross rental income: up 5% like-for-like, up 11% including
acquisitions
Acquisition of remaining 50% interest in Bullring and Grand Central for
£319m(1) and associated equity placing
Dividend growth of 5% and upgraded earnings outlook
Hammerson, the largest UK-listed owner and manager of prime retail and leisure
anchored city destinations in the UK, France and Ireland, today announces its
half year results for the six months ended 30 June 2025, with highlights
including:
· Like-for-like gross rental income up 5% and like-for-like net
rental income up 4%, driven by active asset management and strategic focus on
high quality landmark destinations
· Total gross rental income up 11%, net rental income up 10%,
following successful deployment of capital: £321m over nine months at average
8.5% destination yield
· EPRA earnings of £48m, 9.9p per share (HY24: £50m, 9.9p) ahead
of expectations - dividend increase of 5% to 7.94p reflects confidence in
earnings growth trajectory
· Portfolio valuation up 11% to £3.0bn - net revaluation gain of
£26m is the first portfolio gain since HY17
· Also separately announced today - unconditional agreement to buy
remaining 50% interest in Bullring and Grand Central at 7.7% blended topped-up
NIY(2) and a 4% discount to June 2025 book value, and associated equity
placing
· Opportunities to unlock further value, with disciplined capital
allocation strategy to enhance returns for shareholders
· EPRA earnings guidance for FY25 raised to c.£102m (from
c.£95m) - on track to achieve medium term financial framework
Rita-Rose Gagné, Chief Executive of Hammerson, commented:
"Demand for our space has never been stronger, reflected in high occupancy, growing footfall and sales, and another period of record leasing. I am pleased with our performance in the first half, which has been driven by our investments in recent years into repositioning and placemaking, and data and analytics which allows us to better understand and anticipate the evolving behavioural trends of consumers and occupiers.
The consumer spend where we have focused our portfolio is resilient and growing for the right product in the best destinations, as brands are shifting towards fewer, higher-performing spaces. We have quickly recycled capital in a disciplined way to focus our portfolio on the top 1% of locations where retail spend is concentrated. In just nine months we've put to work £321m to gain full control of two more of our landmark city destinations at an average yield of 8.5%, delivering a step-change in income and earnings. This morning, we also announced the £319m acquisition of our JV partner's stake in Bullring and Grand Central allowing us to take full control of this top five UK destination, further enhancing income and earnings.
The strategy we've executed has delivered a prime portfolio with high
visibility of long-term income streams and multiple paths to further value
creation. Our outlook is underpinned by positive structural societal and
demographic trends in our catchments, where we have the opportunity to capture
greater market share. Our pure play platform, team and operational grip means
that we are well placed to maximise opportunities and deliver further rental,
value, earnings, and dividend growth."
Key financial highlights
Six months ended 30 June 2025 30 June 2024 Change/LfL
Gross rental income(3) £105m £94m +11% / +5%
Net rental income(3) £80m £73m +10% / +4%
EPRA earnings £48m £50m -3%
Profit/(Loss) for the period (IFRS) £79m £(517)m n/a
EPRA earnings per share 9.9p 9.9p No change
Interim dividend per share 7.94p 7.56p +5%
As at 30 June 2025 31 December 2024
Valuation(3) £2,956m £2,659m +11%
EPRA net tangible assets per share £3.81 £3.70 +3%
Loan to value(3) 35% 30% +5%
Net debt:EBITDA (rolling 12 months) (3) 7.8x 5.8x +2.0x
1. Subject to customary adjustments, which at completion are expected to
be c.£17m, principally with respect to cash in the corporate entities being
acquired
2. NIY 6.7%, Topped-up NIY 7.7%
3. Proportionally consolidated
Successful deployment of capital enhancing top line growth
- Disciplined capital allocation strategy and execution to deliver
enhanced value and returns for shareholders
- Deployed £321m into Brent Cross and Westquay over previous nine
months at an average destination yield of 8.5%, generating c.£27m of
additional annualised net rental income
- Strong, flexible balance sheet at this point in the cycle with
LTV at 35% and net debt:EBITDA 7.8x - further options to rotate capital
- Gross rental income +11%, net rental income +10%, also
reflecting six months benefit of acquisition of Westquay
- Unconditional agreement to buy Bullring and Grand Central for
£319m, expected to close in early August
o Funded by suspension of share buyback, existing cash resources, and equity
placing of 10%
o Immediately 4% EPRA earnings per share accretive with minimal NTA per
share dilution (on HY pro forma basis) - additional annualised net rental
income of c.£22m
o Pro forma LTV of c.37%, net debt:EBITDA of c.7.9x commensurate with solid
IG credit rating
High quality of landmark city destinations and active asset management driving
rental growth
- Like-for-like gross rental income +5%, like-for-like net rental
income +4%
- We welcomed 79m visitors, 1m more than last year. Flagship
footfall was up 1% for the Group outperforming national averages, and
strengthening as the year progressed with Q2 +3%; mirrored in like-for-like
sales +1%, with Q2 +2%
- Demand for our space has never been stronger as occupiers focus
on fewer, high-performing stores in the strongest catchments:
o Like-for-like leasing volume up 13% to 152 leases exchanged, representing
£23m of headline rent at 100%, up 3% like-for-like, and £63m of rent
contracted to first break at Hammerson share
o +45% ahead of previous passing (+13% like-for-like excluding voids) and
+13% ahead of ERV on a net effective basis - our 7th consecutive half-year of
positive leasing spreads
o Robust pipeline of over £26m, with £8m in solicitors' hands and £18m in
advanced negotiations
- Ongoing repositionings at Cabot Circus and The Oracle are
replicating our success at Bullring and Dundrum
- Strong occupancy up from 94% to 95% year-on-year
- Portfolio valuation up 11% to £3.0bn, reflecting acquisition of
Brent Cross - net revaluation gain of £26m is the first portfolio gain since
HY17 - HY25 total property return of 4%. EPRA NTA per share of 381p (FY24:
370p)
Further significant opportunities to unlock value
- Conversations continue on further JV consolidation and capital
recycling opportunities
- Clear, consistent strategy to reposition and diversify income in
our flagship destinations to drive higher returns:
o The Ironworks 122-unit residential scheme to commence lease-up at Dundrum
in H2 25
o Planning permission achieved for historical Quakers Friars district at
Cabot Circus, on-site in FY26
o Launch of Cergy 3 redevelopment, majority pre-let to Primark, expected to
complete in HY27 and add c.€2.5m of annualised NRI
- Progressing planning and enabling works to unlock further value
from our c.70 acres of strategic land - Leeds Eastgate land sold for £26m in
first half at 23% premium to book value
EPRA earnings ahead of expectations - 5% dividend increase reflects confidence
in earnings growth trajectory
o EPRA earnings of £48m (HY24: £50m), -3% due to disposals and phasing of
redeployment
o EPRA earnings per share of 9.9p (HY24: 9.9p), reflecting accretive effect
of share buyback
o Interim dividend of 7.94p pence per share, up 5% year-on-year, which will
be paid as a PID
Outlook: Guidance for FY25 raised; on track for delivery of medium term
financial framework
We are raising our guidance for FY25 both from better than expected
like-for-like growth and the acquisition of Bullring and Grand Central. Total
GRI growth is now expected to be around 17% and EPRA earnings around £102m.
We are of course mindful of wider macroeconomic volatility. The consumer spend
where we have focused our portfolio is resilient and growing for the right
product in the best destinations, as brands are shifting towards fewer,
higher-performing spaces.
Looking further ahead, we have a firm operational grip and high visibility of
our long term income streams. The leasing pipeline is robust and our
acquisitions and in-flight repositioning projects underwrite further growth in
the years to come. This gives a clear growth trajectory for FY26 and FY27, and
we remain confident in delivering our medium term financial framework with
8-10% EPRA EPS CAGR.
The person responsible for making this Announcement on behalf of the Company
is Alex Dunn, General Counsel & Company Secretary.
Results presentation today
Hammerson will publish a pre-recorded webinar for analysts and investors to
present its financial results for the six months ended 30 June 2025 on its
website at approximately 07.05am BST, to be followed by a Q&A session at
08.00am BST.
Date & time: Recording published to Group website on Thursday 31 July at approximately
07.05am BST, Q&A session at 08.00am BST to joined via the telephone
numbers below.
Webcast link: https://www.hammerson.com/investors/reports-results-presentations/2025-half-year-results
(https://www.hammerson.com/investors/reports-results-presentations/2025-half-year-results)
Conference call: Quote Hammerson when prompted by the operator, access code 779897
Please join the call five minutes before the booked start time to allow the
operator to transfer you into the call by the scheduled start time
France: +33 9 7073 3958
Ireland: +353 1 691 7842
Netherlands: +31 85 888 7233
South Africa: +27 87 550 8441
UK: +44 20 3936 2999
USA: +1 646 233 4753
The presentation and press release will be available at:
https://www.hammerson.com/investors/reports-results- presentations on the
morning of results.
Enquiries
Rita-Rose Gagné, Chief Executive Officer Tel: +44 (0)20 7887 1000
Himanshu Raja, Chief Financial Officer Tel: +44 (0)20 7887 1000
Investors:
Josh Warren, Director of Group Performance and IR Tel: +44 (0)20 7887 1053 josh.warren@hammerson.com (mailto:josh.warren@hammerson.com)
Media:
Oliver Hughes, Ollie Hoare and Charles Hirst, MHP Tel: +44 (0)20 3128 8100 Hammerson@mhpgroup.com (mailto:Hammerson@mhpgroup.com)
Tom Gough, Communications Consultant Tel: +44 (0)20 7887 1092 Tom.gough@hammerson.com
Disclaimer
Certain statements made in this document are forward looking and are based on
current expectations concerning future events which are subject to a number of
assumptions, risks and uncertainties. Many of these assumptions, risks and
uncertainties relate to factors that are beyond the Group's control and which
could cause actual results to differ materially from any expected future
events or results referred to or implied by these forward-looking statements.
Any forward-looking statements made are based on the knowledge and information
available to Directors on the date of publication of this announcement. Unless
otherwise required by applicable laws, regulations or accounting standards,
the Group does not undertake any obligation to update or revise any
forward-looking statements, whether as a result of new information, future
developments or otherwise. Accordingly, no assurance can be given that any
particular expectation will be met, and reliance should not be placed on any
forward-looking statement. Nothing in this announcement should be regarded as
a profit estimate or forecast.
This announcement does not constitute or form part of any offer or invitation
to sell, or any solicitation of any offer to subscribe for or purchase any
shares or other securities in the Company or any of its group members, nor
shall it or any part of it or the fact of its distribution form the basis of,
or be relied on in connection with, any contract or commitment or investment
decisions relating thereto, nor does it constitute a recommendation regarding
the shares or other securities of the Company or any of its group members.
Statements in this announcement reflect the knowledge and information
available at the time of its preparation. Liability arising from anything in
this announcement shall be governed by English law. Nothing in this
announcement shall exclude any liability under applicable laws that cannot be
excluded in accordance with such laws.
Index to key data
Six months ended 30 June 2025 30 June 2024 Note/Ref(1)
Income
Gross rental income(2) £105m £94m 2
Net rental income(2) £80m £73m 2
EPRA earnings(3 4) £48m £50m 2
Net revaluation gains/(losses)(2) £26m £(48)m 2
Profit/(Loss) for the period (IFRS) (5) £79m £(517)m 2
EPRA earnings per share(3 4 6) 9.9p 9.9p 11B
Basic earnings/(loss) per share(6) 16.2p (103.8)p 11B
Interim dividend per share (cash)(6) 7.94p 7.56p 17
Operational
Like-for-like gross rental income change(2) 4.6% 2.1% Table 3
Like-for-like net rental income change(2) 4.0% 1.7% Table 4
GRI:NRI ratio - flagships(2) 79% 80% Financial Review
Occupancy - flagships(2) 94.6% 94.3% Table 6
Leasing value (@100%)(2) £23m £23m CEO review
Like-for-like leasing value change (@100%)(2) +3% +35% CEO review
Leasing v ERV (principal leases) (2) +13% +10% CEO review
Leasing v Passing rent (principal leases) (2) +45% +61% CEO review
Like-for-like passing rent change - flagships(2) 2.4% 0.7% Financial Review
As at 30 June 2025 31 December 2024
Capital and financing
Valuation(2) £2,956m £2,659m 3B
ERV - flagships(2) £203m £180m Table 5
Like-for-like ERV change - flagships(2) 1.2% 1.8% Financial Review
Total accounting return(3) 5.1% (24.2)% Table 21
Total property return(2) 4.0% 2.1% Table 9
Capital return(2) 1.1% (3.4)% Table 9
Net debt(2) £1,024m £799m Table 12
Liquidity(2) £1,239m £1,417m Financial Review
Net debt:EBITDA (rolling 12 months)(2) 7.8x 5.8x Table 14
Interest cover(2) 6.29x 5.03x Table 15
Gearing(2) 56% 45% Table 16
Loan to value(2) 35% 30% Table 17
Net assets(5) £1,848m £1,821m Balance sheet
EPRA net tangible assets (NTA) per share(3) £3.81 £3.70 11C
1 Note/Ref refers to notes in the interim financial statements, tables
in Additional Information or other sections of this release.
2 Figures presented on a proportionally consolidated basis. See
'Presentation of financial information' section of the Financial Review for
explanation.
3 These results include discussion of alternative performance measures
(APMs) which include those described as EPRA and Headline. These are described
on page 11 of the Financial Review and reconciliations for earnings and net
assets measures to their IFRS equivalents are set out in note 10 to the
interim financial statements.
4 2024 EPRA earnings and EPS have been restated to reflect inclusion of
'non-operating and exceptional items' as per updated EPRA earnings guidelines
published in September 2024. The restatement means previously reported EPRA
earnings are the same as the Group's previously published Adjusted earnings,
and hence the latter measure will no longer be used. See page 11 of the
Financial Review and notes 2 and 10A to the interim financial statements for
further details.
5 Attributable to equity shareholders.
6 2024 figure restated to reflect the 1 for 10 share consolidation
undertaken in 2024 as explained in note 11 to the interim financial
statements.
Chief Executive's REVIEW
Delivering our strategy
Hammerson is the largest UK-listed, pure-play owner and manager of prime
retail and leisure-anchored city destinations and 70 acres of strategic land
across the UK, France and Ireland. Our ten flagship destinations all rank in
the top 20 of all retail venues in their respective geographies and in the top
1% where retail spend is concentrated. They are located in affluent and
growing catchments and attract 170m visitors a year. Our five locations in the
UK reach over 30% of the population. Our assets in Paris and Marseille reach
20% of France, whilst we reach 80% of Ireland's population from our three
destinations in Dublin.
Our aim is simple - to deliver sustainable growth and value creation in our
destinations by active repositioning and asset enhancement. Combined with our
specialist platform, tight cost control and operational grip, we will deliver
growth in income, earnings and dividends. We are investing to drive. organic
growth and value creation in our flagship destinations, so they constantly
adapt to evolving trends to remain relevant to customers and occupiers. We
create option value from our strategic land, and supplement this with
acquisitions in line with our strategy.
We have unique expertise in operating retail-anchored city destinations. We
have also developed a proprietary data platform, accelerating our investment
in AI technology, which gives us a differentiated capability to curate the
right mix and product offering in our destinations. Our platform also provides
an opportunity to enhance existing advertising, media and marketing income
streams and to generate new revenue streams with both existing occupiers and
new customers.
After four years of significant transformation, we are a more agile,
collaborative, data-driven and market-facing organisation. We seek to
continually anticipate and respond to global and local customer and brand
partners' demands. Our platform is now future-fit, lean and scalable, which
will enable us to drive further operating leverage with only inflationary
gross administration cost increases as we grow AUM and income, and therefore
growing earnings and dividends. This is underpinned by Hammerson's strong
capital structure and by our commitment to ESG.
Our active asset management is all driving tangible benefits with leasing
spreads consistently above valuers ERV and previous passing rent, higher
occupancy, footfall and sales above national benchmarks. Rents are affordable
with OCRs in the mid teens, whilst our occupiers capture the halo effect of
online transactions generated by flagship stores.
We are growing our market share of our catchments. Rental tension is
ultimately growing rental income and value as we move from leasing up to
growing rent per square foot. Our flagship portfolio is reversionary; values
are starting to follow with ERVs growing across the portfolio, and whilst
yields are broadly flat for now, we anticipate compression in years to come as
investment markets normalise and borrowing costs continue to stabilise.
EPRA earnings were £48m (HY24: £50m), while EPRA earnings per share were in
line with HY24 at 9.9p. The 5% increase in the interim dividend announced
today reflects the Board's confidence in the future EPRA earnings growth
prospects of the business.
With the benefit of like-for-like growth, acquisitions (including today's
announced acquisition of the remaining 50% interest in Bullring and Grand
Central), tight cost control and the share buyback, the Group will have more
than replaced the loss of earnings contribution from the Union Square and
Value Retail disposals in 2024.
We have a clear medium term financial framework to deliver CAGRs: 4-6% gross
rental income growth; 6-8% earnings and dividends per share growth; and c.10%
TAR (assuming stable yields).
Successful deployment of capital enhancing top line growth
We are committed to being disciplined in our capital allocation strategy and
execution to deliver enhanced value and risk-adjusted returns for
shareholders. Successful deployment of capital grows our rental income, scale
and valuations, and creates further options for the rotation of assets and
recycling of capital. Growing income means growing earnings and dividends, and
enhancing returns to shareholders, including where appropriate the return of
excess capital.
As a publicly-traded REIT, we are able to draw on three main sources of
capital depending on market conditions: recycling from our own portfolio;
raising debt; and equity. We remain committed to maintaining a strong and
sustainable balance sheet through the cycle, commensurate with maintaining an
investment grade credit rating and therefore access to capital.
Our guiderails are an LTV of around 35% and net debt:EBITDA of 6-8x. With LTV
at 35% at 30 June 2025, and net debt:EBITDA at 7.8x, our balance sheet remains
strong and flexible at this low point in the cycle, with a variety of options
to further increase capacity including the monetisation of strategic land as
we achieve key planning goals, or further asset rotation. Pro forma for the
acquisition of Bullring and Grand Central and the associated equity placing,
LTV would stand at around 37% and net debt:EBITDA at around 7.9x, commensurate
with the Group's solid IG credit rating.
We have been disciplined and efficient allocators of capital. With £126m of
core capex deployed since FY20 on repositioning and asset enhancement
projects, we are delivering high double digit IRRs and high single to low
double digit yields on costs.
Where we have recycled capital from non-core destinations, we have done so in
a disciplined manner. Our c.£985m of non-core sales since FY20 achieved at an
average discount to book of 2%, whilst Value Retail was exited for £595m at a
24x EBITDA multiple and a 3.4% exit cash yield. Our acquisitions have been
achieved at an average prime destination yield of 8.5%, whilst we have
realised capital at attractive prices from our strategic land, most recently
at Leeds, but also at Croydon in 2023.
Acquisition of JV partners' interests at attractive yields
We continue to allocate capital to acquiring the interests of our JV partners'
where we see the opportunity for strong returns with entry yields at all-time
highs for irreplaceable best-in-class assets in unique high-growth urban
catchments.
In the first half, we successfully deployed £186m into acquiring 96% of the
units in the abrdn UK Shopping Centre Trust ("SCUT"), which holds the 59% of
Brent Cross not already held by Hammerson. This gives Hammerson effective
control of 98% of the scheme including adjacent development land. The price
represented a 16% discount to book value as at 31 December 2024 for the
destination, a net initial yield of 8.6%. This will provide an annualised net
rental income benefit of around £15m and we expect to acquire the remaining
units in SCUT shortly.
Brent Cross is a top 15 UK retail destination asset, 97% occupied with high
sales densities of around £600/ft(2). It sits at the heart of a loyal and
affluent catchment with 11m visitors a year, of which 69% are in the top three
ACORN categories. Key occupiers include in-demand brands like M&S, an
upsized JD Sports, Apple and Zara, and a growing range of new uses including
Moorfields Eye Hospital and the recently opened District street food market
hall. There are immediate opportunities to further enhance the mix, activate
the adjacent lands and underutilised car parks to attract new occupiers and
customers whilst generating incremental income. In the medium and longer term,
there are potential opportunities to reposition certain areas of the scheme,
and the full scale development of the 24 acres of adjacent land.
Together with the acquisition of Westquay in November 2024, this transaction
means we have allocated £321m into consolidating control of our assets over
the previous nine months, at an average prime destination yield of 8.5%, and
adding c.£27m of annualised net rental income. This is driving growth in
rental income and earnings. Total gross rental income grew 11%, while net
rental income was up 10% overall.
Acquisition of Bullring and Grand Central
As announced today, the Group has exchanged contracts to acquire the 50% of
Bullring and Grand Central owned by its JV partner for a cash consideration of
£319m to be funded through the suspension of the share buyback programme,
existing cash resources and an equity placing of up to 10% of total
outstanding shares. This represents a 4% discount to 30 June 2025 book value,
a blended net initial yield of 6.7%, a topped-up net initial yield of 7.7%,
and additional annualised net rental income of c.£22m. On a pro forma basis,
LTV would stand at around 37% and net debt:EBITDA at around 7.9x, commensurate
with the Group's solid IG credit rating.
Bullring
Bullring is one of the UK's best-performing and highly regarded
retail-anchored destinations, recognised by Green Street as one of only five
A++ rated assets in the UK. It continues to benefit from over £30m of
landlord investment and significant occupier investment since 2021 to
reposition the former Debenhams unit and bring in new retail concepts, upsizes
and offers from M&S, Inditex, Sephora and JD Sports among others,
alongside new leisure provision including TOCA Social and Lane7. In aggregate,
these investments secured approaching £130m of rent contracted to first break
and delivered an IRR in excess of 40%.
Our investment has seen Bullring deliver a standout operational performance in
recent years. In 2024, footfall was up 3% as we welcomed 33m visitors, and
total sales up 11%, making it the strongest performer in its peer group
according to Lloyds Bank data. In HY25, footfall was up 5% and Q2 was
exceptionally strong, up 8%, with June up 12% year-on-year. Like-for-like
sales have followed a similar trend, up 4%, with Q2 up 5%. Total sales were up
6% in HY25.
Strong sales support some of the highest Zone-A rents across the portfolio,
but rents remain affordable with OCRs in the mid teens. Occupancy is tight
and tension high as brands pursue more of the best space in the
highest-performing locations. In aggregate, HY25 principal deals at Bullring
were signed 25% ahead of previous passing rent and 22% ahead of ERV on a net
effective basis.
Bullring delivered strong like-for-like gross rental income growth of 12% in
HY25 and we anticipate continued strong rental growth in the second half and
beyond. There remains incremental asset management opportunities to improve
the mix, create greater exposure to the night time economy, and grow income
and value.
Bullring also contains the opportunity to redevelop the underutilised
Edgbaston Street car park, a two-acre freehold site with the potential to
significantly enhance the public realm and deliver more than 700 new homes
with a GDV of c.£300m at 100%. We continue to engage closely with Birmingham
City Council to advance planning for this compelling opportunity, with the
estimated earliest start on site being H2 27.
Grand Central
Demand at Grand Central is growing for the limited available space with
occupancy up 3% year-on-year, also reflecting 'spillover' demand from Bullring
where space is at a premium. Food and beverage is a particular feature, due to
its location above Birmingham New Street station where we have actively
managed and improved the offer with sales densities in this category amongst
the highest in the portfolio at around £560/ft(2) with affordable rents at an
average £50/ft(2), also reflecting high footfall with over 14m visitors in
2024 and 7m in HY25.
Grand Central, located above Birmingham New Street station, also represents a
compelling redevelopment opportunity. Around 50% of the space, representing a
former John Lewis & Partners store, is currently vacant, although
strip-out was completed in 2023 and planning is in place for our Drum concept
- an office-led mixed-use redevelopment of the space with a GDV in the region
of c.£100m at 100%. We continue to engage with stakeholders to de-risk and
unlock the next phases of delivery of this scheme.
Birmingham Estate
Alongside the immediate and medium term income and value growth opportunities
at Bullring and Grand Central, Hammerson's wider Birmingham Estate also
contains Martineau Galleries, a 7-acre mixed use regeneration site already
owned 100% by Hammerson, representing the gateway to the city adjacent to
Curzon Street HS2 Station. The site has outline planning consent for c.1,100
homes and up to 1.3m ft(2) of commercial space. With vacant possession secured
in HY25, initial demolition and enabling works are anticipated to be able to
start by early 2026, with potential for further investment from 2027. There
is high optionality for delivery and funding.
High quality of landmark city destinations and active asset management driving
rental growth
Consistently growing like-for-like rental income is essential to our business,
which when combined with operating leverage ultimately grows sustainable cash
earnings and dividend streams. Like-for-like gross rental income growth was
5%, reflecting our positive recent leasing performance and the progress on
repositioning projects, whilst like-for-like net rental income was up 4%.
Sales and footfall continue to grow
The quality of our portfolio and the exceptional environments we create for
our occupiers and visitors continues to be reflected in strong operational
fundamentals, which underpin the high demand for our destinations. Flagship
footfall was up 1% for the Group, with the UK up 1%, France up 3%, both ahead
of national benchmarks, with the UK benchmark negative year-on-year, whilst
Ireland was in line. Q2 was notably stronger across the Group at +3%
year-on-year, and included exceptional performances at some assets, with
Bullring +8%, Les 3 Fontaines +6% and The Oracle +4%, the latter two in
particular benefitting from the recent openings.
Like-for-like sales broadly mirrored the footfall performance: Group up 1%;
the UK up 2% including particularly strong performances from Bullring and
Westquay, up 4% and 3% respectively; and France and Ireland each up 1%. As
with footfall, performance strengthened in Q2, with Group like-for-like sales
up 2%, the UK and Ireland up 3%, and France up 1%.
Strong leasing performance
We continue to invest in our assets to improve the mix of brands and uses to
both acknowledge global market trends and cater to the specific needs of the
communities and catchments in which we operate. We achieve this either through
targeted leasing to trusted partners with the same high level of commitment
and/or through asset enhancement and repositioning. Our investments have
attracted leading global and local brand partners, brought a mix of new
retail, food and beverage and experiential propositions, driving higher
occupancy, higher quality footfall, greater sales density, and ultimately
creating tangible rental tension and increasing the value of our space.
We've delivered another record half of leasing, signing 152 leases on 570k
ft(2) of space, up 13% like-for-like, and generating annual headline rent of
£23m (at 100%), up 3% like-for-like. Principal deals were signed 45% ahead of
previous passing (+13% like-for-like excluding voids) and 13% ahead of ERV on
a net effective basis. These long-term deals represent secure and visible
cashflows of £63m of rent contracted to first break at our share. They
provide an incremental passing rent of £3.5m to our flagship rent roll in the
first half, up 2% like-for-like to £200m.
In terms of key deals, in Ireland, we signed a 38,000 ft flagship store upsize
with Zara at Dundrum. Also in Dundrum, we signed a renewal with Hollister to
bring its latest concept to the scheme, which is strongly outperforming
globally on sales, and exchanged with Wagamama to bring a new F&B offer to
the mix. All these deals were concluded comfortably ahead of previous
passing rent and in line or ahead of ERV on a net effective basis. The strong
performance and ongoing high demand at Dundrum was reflected in 2% ERV growth
in the first half, whilst in Ilac, we signed Normal into the former
over-rented River Island unit in a first for Ireland. Overall, we anticipate a
stronger like-for-like net rental income performance in Ireland in the second
half.
In France, new food offers were secured at Les 3 Fontaines with Piadineria,
and at Les Terrasses du Port with Chikin Bang, already a strong performer in
operation at the former. Les 3 Fontaines also saw important renewals with
major fashion brands Maison 123 and Etam.
In the UK, we signed key renewals at Bullring with Next and Dyson, and new
deals with Moss Bros, Hawes & Curtis, Miniso and Procook. At Westquay, we
also signed significant renewals with Watches of Switzerland and Three. With
only frictional vacancy at Brent Cross, leasing tension is high and the most
notable activity was the completion of the lease up of our new District street
food hall, a successful concept from our French portfolio. This was alongside
renewals with Reiss, and a new deal with Premium Car Parks to occupy 396
unused car park spaces for vehicle storage.
Across the portfolio, placemaking and commercialisation not only serve to
enliven space and enhance the experience and environment for customers and
brand partners, but also contributes meaningfully in its own right in terms of
incremental footfall, income, and engagement across all channels. In the first
half, we delivered 292 brand promotions, including 110 high quality short-term
specialty leasing deals to further elevate the mix and generate incremental
income. We continue to focus on quality and have made significant strides in
selling our 'domination' and launch products as part of our brand partnership
offer.
Asset repositioning delivering strong operational and financial contribution
The first half saw strong further progress in our repositionings at The Oracle
and Cabot Circus. At The Oracle, TK Maxx opened in May and Hollywood Bowl in
early July, the latter experiencing its most successful opening ever in terms
of sales and footfall. The final letting to complete the repurposing of the
former House of Fraser unit was exchanged in June with Inditex for a 40,000
ft(2) flagship Zara unit. This project in isolation will deliver an outturn
IRR in excess of 20%.
These and other new openings including Cosy Club have seen a notable step up
in operational performance at The Oracle with footfall up 4% year-on-year in
Q2, having been 7% down in Q1, whilst occupancy has improved from 94% to 98%,
increasing tension for the few remaining units. Importantly, like-for-like net
rental income was up 6% in HY25, with further growth to come as the outcome of
the repositioning works is fully realised.
As with our previous experience at Dundrum, Bullring and Cabot Circus, this
investment attracts additional leading brands.
At Cabot Circus, the repositioning works to bring M&S into the former
House of Fraser space and a new premium offer from Odeon are progressing.
M&S is handed over and expected to open in Q4, whilst we anticipate
handover on the cinema in Q3 with an opening in early 2026. These lettings
led to renewed interest from two leading global brands where we have
established strong existing relationships across the portfolio, both signing
leases which in aggregate were over 100% ahead of previous passing rent (+24%
excluding one unit being vacant), and around 70% ahead of ERV on a net
effective basis. The extensive works at Cabot Circus undertaken over the last
year are flowing through into financials with double digit like-for-like net
rental income growth in HY25.
With our leasing performance and the successful execution of our ongoing
repositioning projects, we increased flagship occupancy from 94% to 95%
year-on-year. Six of our ten flagship locations, including all those in
Ireland have occupancy at or above 95%. Among flagships, Les 3 Fontaines has
lower occupancy at 87%, although we anticipate a ramp up following the launch
of the Cergy 3 redevelopment, already majority pre-let to Primark.
We've made a strong start to the second half of the year, with a further 18
deals representing £3.5m of headline rent (at 100%) already signed, 34% ahead
of previous passing and 14% ahead of ERV on a net effective basis. We have a
robust pipeline of over £26m, with 8m in solicitors' hands and £18m in
advanced negotiations
Successful execution of strategy reflected in valuation growth
Strong leasing and rental growth was again recognised in valuations, whilst
yields were broadly flat. UK like-for-like values were up 1% and Ireland up
2%, both driven by ERV growth of 1% and 3% respectively. France values were
incrementally up with ERV growth of 1%. Overall, the portfolio value was up
11% to £3.0bn, also reflecting the acquisition of Brent Cross. The net
revaluation gain of £26m is the first portfolio gain since HY17.
Further significant opportunities to unlock value
We have a substantial future opportunity for redevelopment and development
across the portfolio and 70 acres of strategic land, with value capable of
being unlocked without the deployment of substantial capital. We continue to
advance capital light development milestones, such as planning consents and
land assembly to create land value, whilst retaining optionality for further
capital sourcing and/or investment to exceed our return targets.
We continue to analyse potential alternatives for delivery across all
projects, depending on market circumstances, physical situation and the
context and scale of each opportunity. This could include developing
ourselves, as is the case with The Ironworks at Dundrum, working with
specialist residential developer and/or operating partners which can add
value, or potential site sales in cases where we have added value and have
liquidity at the right price. This has been the case at Croydon in 2023 and
Eastgate Leeds, where we sold our standalone land for £26m in April 2025,
which represented a 23% premium to book value.
Near term - completion of the Ironworks and next phases of development and
repositioning
We remain focused on completing the repositioning of our core assets - Cabot
Circus including Quakers Friars, The Oracle, Cergy 3 - and the priority
redevelopments at our assets, such as The Ironworks in Dundrum.
These projects are strategically located on existing assets. They introduce
new uses including residential to the mix and densify our destinations whilst
offering attractive risk-adjusted returns and new and more diverse income
streams.
On lease up, we expect The Ironworks will become Dundrum's largest "occupier",
contributing a growing net rental income stream of around €3m per annum.
Recent reform of policy in Ireland also suggests a fairer balance of being
able to achieve future inflationary rental growth without an artificial cap.
At The Oracle, in the medium term, we await final planning for a c.220 unit
residential scheme in the former Debenhams unit, which would bring a new use
and customer and densify the estate. Against this development potential, we
continue to review other options including retail, depending on the
risk-return characteristics. There also remain additional residential
opportunities, including the Riverside cinema block in time.
In Bristol, it was pleasing to secure the planning consent for the
repositioning of the historical Quakers Friars district at Cabot Circus.
Leasing conversations are ongoing, the preparation for commencement of works
is underway and we now expect detailed design to be largely complete by the
end of the year. We currently anticipate the project to generate a high single
digit yield on cost.
In France, we achieved planning permission for our Cergy 3 redevelopment at
Les 3 Fontaines. The majority of this project is already pre-let to a
flagship offering from Primark, while negotiations are at an advanced stage
with another global marquee brand for the remaining space. A major new Apple
re-seller, Interactif, has also been secured as part of a new phase of
openings in the adjacent area of the existing asset. Alongside Primark, Apple
has been the brand most requested by our customers. The retail units are
expected to open in HY27. The project will add c.€2.5m of annualised net
rental income, representing a yield of cost of around 7% and deliver a high
teens ungeared IRR.
Our in-flight and near-term repositioning projects represent around £265m of
GDV at our share, assuming the successful completion of the acquisition of
Bullring and Grand Central announced today, with estimated fully-funded capex
spend of c.£40m over the next two years.
Significant untapped medium and long term potential
We have potential medium term opportunities including further residential,
student housing and workspace projects at The Oracle, at Dundrum, in Bristol
and in Birmingham, which today comprise around £470m of potential GDV at our
share, reflecting the completion of the acquisition of Bullring and Grand
Central announced today. These projects are at various stages of planning and
preparation and are expected to be deliverable from 2027. In the longer-term,
there is around £4.8bn of potential GDV at our share from both projects on
existing assets such as Brent Cross Southern lands, and standalone
opportunities such as Martineau Galleries in Birmingham. This is a significant
opportunity within our portfolio and within our grasp to create optionality
including capital recycling.
Environmental, Social and Governance
In the first half of 2025 we continue to deliver against our ESG strategy and
Net Zero by 2030 across our destinations, with a 13% reduction in
like-for-like emissions, now 47% down vs our 2019 Baseline.
Other key highlights were our annual Giving Back Day where Hammerson
colleagues supported social initiatives across our communities, further
implementation of innovative solutions across our infrastructure, including
upgrading lighting and HVAC systems to improve energy consumption under our
NZAP program and the completion of a Double Materiality Assessment to ensure
we remain focused on the key activities our stakeholders deem important to our
business.
Additionally, we have signed a Corporate Purchase Power Agreement to provide
new renewable electricity for our UK destinations and which is aligned to our
2025 Sustainability Linked Bond targets, furthering our commitment to our
sustainable built environment.
Outlook: Guidance for FY25 significantly raised; on track for delivery of
medium term financial framework
We are raising our guidance for FY25 both from better than expected
like-for-like growth and the acquisition of Bullring and Grand Central. Total
GRI growth is now expected to be around 17% and EPRA earnings around £102m.
We are of course mindful of wider macroeconomic volatility. The consumer spend
where we have focused our portfolio is resilient and growing for the right
product in the best destinations, as brands are shifting towards fewer,
higher-performing spaces.
Looking further ahead, we have a firm operational grip and high visibility of
our long term income streams. The leasing pipeline is robust and our
acquisitions and in-flight repositioning projects underwrite further growth in
the years to come. This gives a clear growth trajectory for FY26 and FY27, and
we remain confident in delivering our medium term financial framework with
8-10% EPRA EPS CAGR.
FINANCIAL REVIEW
Period ended 30 June 30 June
2025
2024
Gross rental income(1) £105m £94m
Net rental income(1) £80m £73m
EPRA earnings £48m £50m
IFRS profit/(loss)(2) £79m £(517)m
Interim dividend per share, pence 7.94p 7.56p
As at 30 June 31 December 2024
2025
Net assets(2) £1,848m £1,821m
EPRA NTA per share £3.81 £3.70
Net debt(1) £1,024m £799m
Net debt:EBITDA(1) 7.8x 5.8x
Loan to value(1) 35% 30%
1 Proportionally consolidated
2 Attributable to equity shareholders.
Overview
The Group has seen the benefit of its investment in asset repositioning, with
like-for-like gross rental income and net rental income up 5% and 4%
respectively. Together with the acquisition of Westquay in November 2024 and
Brent Cross in May 2025, gross rental income was 11% higher at £105m. This
redeployment has been at an average prime destination yield of 8.5%, compared
with the 3.4% yield from the Group's investment in Value Retail which was sold
for £595m in September 2024.
We have announced today the £319m acquisition of the 50% joint venture
interest in Bullring and Grand Central at a 7.7% net initial yield
(topped-up), reflecting a 4% discount to 30 June 2025 book value. The
acquisition of this super prime destination will add additional annualised net
rental income of c. £22m and is to be part funded by an equity placing of up
to 10% of the Group's outstanding shares.
For the first half of 2025, EPRA earnings were £48m (HY24: £50m). Together
with the like-for-like growth and acquisitions, including today's announced
acquisition of the remaining 50% interest in Bullring and Grand Central, the
Group will have more than replaced the loss of the earnings contribution from
the prior year sales of Union Square in March and Value Retail in September.
EPRA earnings per share were 9.9p, the same as the prior period reflecting the
accretive impact of the Group's share buyback programme which commenced in
October 2024.
The Group reported an IFRS profit (attributable to equity shareholders) of
£79m (HY24: £517m loss), including a £26m net revaluation gain, this is the
first gain since HY17. The prior year loss included a £483m impairment charge
relating to the disposal of Value Retail and a £73m net revaluation loss.
Net assets (attributable to equity shareholders) at 30 June 2025 were £1,848m
(FY24: £1,821m).
EPRA NTA per share was up 3% at £3.81 (FY24: £3.70), and the Group generated
a total accounting return of 5.1% in the first half of the year.
At 30 June 2025, net debt was £1,024m, £225m higher than at the start of the
year principally reflecting the acquisition of Brent Cross. The Group's credit
metrics were strong with net debt:EBITDA of 7.8x (FY24: 5.8x) and LTV of 35%
(FY24: 30%). Pro forma for the acquisition of Bullring and Grand Central and
the associated equity placing, LTV would stand at around 37% and net
debt:EBITDA at around 7.9x, commensurate with the Group's solid IG credit
rating.
The Directors have recommended an interim dividend of 7.94p per share,
reflecting a 5% year-on-year increase and the Board's confidence in delivering
future income and earnings growth.
Presentation of financial information
IFRS vs Management reporting
The Group's property portfolio comprises properties that are either wholly
owned or co-owned with third parties. While the Group prepares its financial
statements under IFRS, the Group evaluates the performance of its business for
internal management reporting on a 'proportionally consolidated' basis which
aggregates the following:
- properties, or entities, which are wholly owned or its share of those
held in joint operations (see note 12C to the interim financial statements for
details) and hence where the results and net assets are directly included, on
a line-by-line basis, in the IFRS financial statements. These are labelled as
'Reported Group'.
- the Group's share of properties, or entities, which are co-owned
within joint ventures. Under IFRS, these are equity accounted, with the
Group's 'Share of results of joint ventures' reported in the Consolidated
income statement and the 'Investment in joint ventures' reported in the
Consolidated balance sheet. For management reporting purposes the Group's
share of results and net assets are labelled 'Share of Joint ventures'.
The combination of results, net assets or properties within the Reported Group
and Share of Joint ventures is labelled as the 'Group' or 'Group portfolio'.
Prior to its disposal in September 2024, management did not proportionally
consolidate the Group's investment in Value Retail. While the Group exercised
significant influence, and accounted for the investment as an associated
undertaking, Value Retail was not under the Group's management, was
independently financed and had differing operating metrics to the Group's
property portfolio. Accordingly, for both IFRS and management accounting
purposes the results and financial assets and liabilities were accounted for
separately, and it was excluded from the Group's proportionally consolidated
key metrics such as net debt or like-for-like rental income growth.
If, in addition to IFRS figures, information is disclosed under management's
reporting basis in the Group's financial statements it is clearly labelled as
being 'proportionally consolidated'. Further supporting analysis and
reconciliations between management and IFRS bases are also included in this
Financial Review and in the Additional Information section.
Alternative performance measures ('APMs')
The Group uses a number of APMs, being financial measures not specified under
IFRS, to monitor the performance of the business. Many of these measures are
based on the EPRA Best Practice Recommendations ('BPR') reporting framework
which aims to improve the transparency, comparability and relevance of the
published results of listed European real estate companies. Details on the
EPRA BPR can be found on www.epra.com and the Group's EPRA metrics are shown
in Table 1 of the Additional Information.
In September 2024, EPRA issued updated EPRA earnings guidelines within its
BPR. These included the addition of two new adjustment categories relating to
funding structures and non-operating and exceptional items. As explained in
the FY24 release, the Group has adopted these new guidelines effective from 1
January 2025, and restated prior period measures such that they are the same
as the previously reported Adjusted earnings.
EPRA earnings, is derived from IFRS profit, but excludes capital and
non-recurring items such as revaluation movements, gains or losses on the
disposal of properties or investments which are not deemed relevant to the
underlying performance of the business. We believe that disclosing such
non-IFRS measures enables evaluation of the impact of such items on results to
facilitate a fuller understanding of performance from period to period. A
reconciliation from profit/(loss) for the period under IFRS to EPRA earnings
is set out in note 10A to the interim financial statements.
Other APMs used by the Group cover key operational, balance sheet and credit
related metrics, including like-for-like analysis, cost ratios, total
accounting return, net debt and associated credit metrics: net debt:EBITDA,
gearing, loan to value and interest cover. Reconciliations of these APMs to
the IFRS figures in the financial statements are included in the Additional
Information section.
Value Retail impairment and disposal - six months ended 30 June 2024
On 18 September 2024, the Group completed the disposal of its entire interests
in Value Retail to L Catterton for cash proceeds of €705m (£595m), or
£584m after transaction costs. This was a transformational sale for the
Group, completed at an attractive price, representing a 3.4% exit cash yield
and an EBITDA multiple of 24x.
At the 30 June 2024 interim balance sheet date the Directors concluded that,
given the significant progress made towards agreeing and signing the sale
agreement, that a sale was 'highly probable' and hence the Group's interests
were judged to have met the criteria outlined in IFRS 5 to be reclassified to
being 'held for sale' within current assets.
On reclassification to 'held for sale', in accordance with IFRS 5, the Group's
interests were remeasured to the lower of the carrying amount and estimated
fair value less sale costs at completion. The fair value was based on the
contracted sale proceeds, less estimated transaction costs, and the
remeasurement resulted in a £483m impairment loss being recognised in HY24.
Also, upon reclassification, equity accounting ceased. Further details on the
sale are in note 9 to the interim financial statements.
In addition, the operations of Value Retail represented a separate major line
of the business and therefore were treated as a discontinued operation and
separately disclosed from the continuing segments of the business.
Income statement
Analysis of EPRA earnings and IFRS profit/(loss) for the period
Proportionally consolidated, including continuing and discontinued operations Note(1) Reported Group Share of Joint ventures 30 June 2025 Reported Group Share of Joint ventures 30 June 2024 Change
£m £m Total £m £m Total £m
£m £m
EPRA earnings analysis:
Gross rental income 4 57.2 47.4 104.6 40.1 54.3 94.4 10.2
Net service charge expenses and cost of sales 5 (14.5) (10.2) (24.7) (10.0) (11.7) (21.7) (3.0)
Net rental income 42.7 37.2 79.9 30.1 42.6 72.7 7.2
Gross administration costs 5 (21.8) (0.2) (22.0) (21.5) - (21.5) (0.5)
Other income 4 5.0 - 5.0 5.3 0.1 5.4 (0.4)
Profit from operating activities 25.9 37.0 62.9 13.9 42.7 56.6 6.3
Value Retail earnings (discontinued) 9 - - - 11.7 - 11.7 (11.7)
Operating profit 25.9 37.0 62.9 25.6 42.7 68.3 (5.4)
Net finance costs 6 (11.0) (3.3) (14.3) (17.6) (1.1) (18.7) 4.4
Tax 7 (0.2) - (0.2) (0.1) - (0.1) (0.1)
Non-controlling interests 21 (0.2) - (0.2) - - - (0.2)
EPRA earnings 14.5 33.7 48.2 7.9 41.6 49.5 (1.3)
Reconciliation to IFRS profit/(loss) for the period:
Net revaluation gains/(losses) - Group portfolio 12 20.6 5.7 26.3 (16.8) (31.0) (47.8) 74.1
Revaluation losses - Value Retail 9 - - - (24.9) - (24.9) 24.9
Impairment of Value Retail 9 - - - (483.0) - (483.0) 483.0
Profit/(Loss) on sale of properties/joint ventures 8 4.0 - 4.0 (10.8) - (10.8) 14.8
Business transformation costs 5A (1.1) - (1.1) (2.7) - (2.7) 1.6
Other 10A 1.4 (0.1) 1.3 4.0 (1.0) 3.0 (1.7)
Profit/(Loss) attributable to equity shareholders 39.4 39.3 78.7 (526.3) 9.6 (516.7) 595.4
Earnings/(loss) per share pence pence pence
Basic 11B 16.2 (103.8) 120.0
EPRA 11B 9.9 9.9 -
1 Note references are to notes to the interim financial statements.
The table above sets out the reconciliation of the Group's EPRA earnings of
£48.2m (HY24: £49.5m) to the IFRS profit/(loss) attributable to equity
shareholders for the period of £78.7m (HY24: £516.7m loss).
In the first half of 2025, the Group's IFRS profit of £78.7m was £595m
higher than for the prior period. The two most significant factors were the
£483m impairment of the Group's investment in Value Retail associated with
its disposal recognised in the prior period and a £74m year-on-year
improvement in the revaluation of the Group's property portfolio.
On an EPRA basis, earnings decreased by £1.3m to £48.2m (HY24: £49.5m). The
key factors were £10.2m higher gross rental income, reflecting the strong
underlying like-for-like growth and contribution from the acquisitions of
former joint venture stakes in Westquay in November 2024 and Brent Cross in
May 2025. This was offset by the loss of the Group's share of earnings from
Value Retail in the prior period of £11.7m. Reflecting the accretive benefit
of the Group's ongoing share buyback programme, EPRA EPS was unchanged at
9.9p.
Further analysis of the Group's results is set out in note 2A to the financial
statements and details on reconciling items between EPRA earnings and IFRS
profit are in note 10A to the interim financial statements.
Rental income
Analysis of rental income
Gross rental income Net rental income
Proportionally consolidated Six months ended Six months ended Variance Change Six months ended Six months ended Variance Change
£m %
£m %
30 June 2025 30 June 2024 30 June 2025 30 June 2024
£m
£m
£m £m
Like-for-like
UK 39.4 36.3 3.1 8.6% 30.1 27.7 2.4 8.4%
France 27.5 26.5 1.0 4.1% 21.8 21.2 0.6 3.0%
Ireland 18.8 19.2 (0.4) (2.1)% 16.5 16.9 (0.4) (2.0)%
Flagship destinations 85.7 82.0 3.7 4.6% 68.4 65.8 2.6 4.0%
Disposals 0.1 3.2 (3.1) 0.1 2.8 (2.7)
Acquisitions 11.5 - 11.5 9.1 - 9.1
Developments and other 7.3 8.5 (1.2) 2.3 3.6 (1.3)
Foreign exchange - 0.7 (0.7) - 0.5 (0.5)
Total 104.6 94.4 10.2 79.9 72.7 7.2
Gross rental income totalled £104.6m in the first half of the year, a
year-on-year increase of £10.2m, or 10.8%, driven by three key factors:
· An increase in like-for-like gross rental income of £3.7m, or
4.6% in the first half of 2025. UK flagships produced the strongest growth of
8.6%, reflecting the benefits of strong leasing over the past 18 months and
the significant repositioning works ongoing at Cabot Circus and The Oracle. In
France, GRI was £1.0m, or 4.1% higher, with growth from indexation, leasing
and increased turnover rent at Les 3 Fontaines. In Ireland, GRI was 2.1%
lower, due to the 2025 effect of a single over-rented anchor unit at Ilac
which has recently been relet to Normal.
· Acquisitions added £11.5m to GRI, reflecting the JV
consolidation of Westquay in November 2024 and Brent Cross in May 2025.
· Disposals reduced income by £3.1m, principally due to Union
Square which was sold in March 2024.
Net rental income was £7.2m, or 9.9%, higher than in 2024 driven by the same
factors as gross rental income.
For the first half of the year, the flagship NRI:GRI ratio was 79% (HY24:
80%), with UK at 77%, France at 79% and Ireland, the highest, at 86%. This
ratio will improve as repositioning works are completed and leasing increases
occupancy.
Further analysis of gross and net rental income by segment is provided in note
3 to the interim financial statements and Tables 3 and 4 of the Additional
Information.
Passing rent
At 30 June 2025, the Group's passing rent totalled £206.1m (FY24: £182.4m),
the increase due principally to the acquisition of the joint venture interest
in Brent Cross in the period.
On a like-for-like basis, flagship passing rent was up 2.4% reflecting the
strong leasing performance and benefits of recent and ongoing repositioning
activities. Rents grew in all three countries, with the strongest performance
in the UK of 3.0%. In France, passing rent was up 2.2% and in Ireland, passing
rents were 1.1% higher.
Administration expenses
In line with expectations, in the first half of 2025 gross administration
costs, excluding business transformation costs, were £22.0m, an increase of
£0.5m, or 2%.
Other income of £5.0m, being fee income from property management and joint
venture fees, fell by £0.4m principally reflecting the loss of JV management
fees following the acquisition of the JV stake in Westquay in November 2024.
Business transformation costs of £1.1m in the first half of the year reflect
the finalisation of the Group's transformation programme which was one of the
key workstreams of the Group's strategic and operational review undertaken in
2021. As in previous periods, these activities do not reflect underlying
trading and have been excluded from the Group's EPRA earnings.
Share of results of joint ventures
A listing of our interests in joint ventures is included in note 13A to the
interim financial statements. On an IFRS basis, the Group's share of results
in the first half of 2025 was £39.3m (HY24: £9.6m).
Excluding EPRA earnings adjustments, our share of results from joint ventures
was £33.7m (HY24: £41.6m). The £7.9m year-on-year reduction was principally
due to the impact of the JV buyouts of Westquay and Brent Cross.
Net finance costs
Six months ended 30 June 2025 Six months ended 30 June 2024
Proportionally consolidated Reported Group Share of Joint ventures Total Reported Group Share of Joint ventures Total
£m
£m
£m
£m
£m £m
Finance income 20.3 1.2 21.5 18.2 2.8 21.0
Finance costs (31.3) (4.5) (35.8) (35.8) (3.9) (39.7)
Net finance costs (11.0) (3.3) (14.3) (17.6) (1.1) (18.7)
Debt and loan facility cancellation costs (0.2) - (0.2) - - -
Change in fair value of derivatives 1.9 (0.1) 1.8 0.4 (1.0) (0.6)
IFRS net finance costs (9.3) (3.4) (12.7) (17.2) (2.2) (19.3)
Net finance costs were £14.3m, a year-on-year decrease of £4.4m, or 24%. The
reduction reflects lower finance costs associated with the successful bond
refinancing completed in October 2024 which resulted in a net interest saving
of £3.6m p.a. and the benefit from the repayment of £109m of senior notes at
the beginning of 2024.
Dividends
Following the disposal of Value Retail in H2 24, the Board announced a new
policy to increase the Group's payout ratio for EPRA earnings from 60-70% to a
new sustainable dividend policy of 80-85%.
The Board has declared an interim cash dividend of 7.94p per share, payable as
a PID on 16 October 2025 to shareholders on the register on 5 September
2025. This represents a 5% increase on the 2024 interim dividend of 7.56p
per share.
Share buyback
Following the sale of Value Retail, the Company announced the commencement, on
16 October 2024, of a share buyback programme of up to £140m.
Under the programme, by 30 June 2025, a total of 15.2m shares had been
repurchased and cancelled for total consideration of £43.0m. Of this total,
8.2m shares for consideration of £22.1m were repurchased in the first half of
2025.
Following today's announcement of the joint venture acquisition of Bullring
and Grand Central, the buyback programme is to be suspended.
Balance sheet
A detailed analysis of the balance sheet on a proportionally consolidated
basis is set out in note 2B to the interim financial statements with a summary
reconciling to EPRA NTA set out in the table below:
30 June 2025 31 December 2024
Proportionally consolidated Reported Group Share of Joint ventures EPRA EPRA NTA Reported Group Share of Joint ventures EPRA EPRA NTA
£m
£m
adjustments
£m
£m
£m adjustments
£m
£m £m
Investment properties 1,905 1,051 - 2,956 1,487 1,172 - 2,659
Investment in joint ventures 956 (956) - - 1,088 (1,088) - -
Trade receivables (note 14) 35 10 - 45 33 18 - 51
Net debt(1) (949) (75) 2 (1,022) (734) (65) 4 (795)
Other net liabilities (85) (30) - (115) (53) (37) - (90)
Non-controlling interests (14) - - (14) - - - -
Equity shareholders' funds 1,848 - 2 1,850 1,821 - 4 1,825
EPRA NTA per share £3.81 £3.70
1 See Table 12 in Additional Information for further details. The EPRA
adjustment reflects the difference between the carrying and fair value of
borrowings as per EPRA NTA guidelines, see note 10B to the interim financial
statements.
During the first half of 2025, equity shareholders' funds increased by £27m,
or 1.5% to £1,848m (FY24: £1,821m). Net assets, calculated on an EPRA Net
Tangible Assets (NTA) basis, were £1,850m, or £3.81 per share, an increase
of £0.11 compared to
31 December 2024. The increase is equivalent to a total accounting return of
5.1% (see Table 21 in Additional Information) and the key components of the
movement in IFRS net assets and EPRA NTA are shown in the table below:
Movement in net assets(1)
Proportionally consolidated IFRS EPRA EPRA NTA EPRA NTA per share
net assets
adjustments £m £
£m
£m
1 January 2025 1,821 4 1,825 3.70
Net property revaluation gain 26 - 26 0.05
EPRA earnings 48 - 48 0.10
Profit on sale of properties 4 - 4 0.01
Final 2024 dividend (40) - (40) (0.08)
Share buyback (22) - (22) 0.01(2)( )
Foreign exchange and other movements 11 (2) 9 0.02
30 June 2025 1,848 2 1,850 3.81
1 Attributable to equity shareholders
2 Reflects accretion associated with the Group's share buyback programme
launched in October 2024.
Property portfolio analysis
Movements in property valuation
Proportionally consolidated UK France Ireland Flagships destinations Developments and other Group portfolio
£m
£m £m £m £m £m
At 1 January 2025 915 964 522 2,401 258 2,659
Foreign exchange movement - 35 19 54 3 57
Acquisitions 168 - - 168 39 207
Disposals - - - - (21) (21)
Yield 2 - - 2 - 2
Income 1 1 7 9 - 9
Development and other 17 (3) - 14 1 15
Net revaluation gains/(losses) 20 (2) 7 25 1 26
Capital expenditure 10 4 1 15 13 28
At 30 June 2025 1,113 1,001 549 2,663 293 2,956
At 30 June 2025, the Group's portfolio was valued at £2,956m (FY24:
£2,659m), an increase of £297m, or 11%. The key factors were the acquisition
of Brent Cross for £207m, including costs, a net revaluation gain of £26m
and favourable foreign exchange translation gains of £57m.
On a like-for-like basis, portfolio values were 1.2% higher (UK flagships
1.3%, France flagships 0.2%, Ireland flagships 1.6%, Developments and other
3.6%). Further valuation analysis is included in Table 9 of the Additional
Information.
Net revaluation gains/(losses)
The portfolio recorded a net revaluation gain of £26m in the first half of
2025, this is the first net gain since HY17.
UK flagships reported a £20m gain. Yields were broadly flat, with Bullring
and The Oracle seeing inward yield movements of 6bp and 16bp respectively
reflecting the benefit of repositioning works at both assets. Income growth,
after taking account of capital expenditure, produced a £1m gain, with the
other gain of £17m reflecting the JV acquisition of Brent Cross destination
which was completed at a discount to the December 2024 book value.
French flagships reported a revaluation loss of £2m reflecting £3m
allowances for higher transfer taxes, partly offset by £1m gain from income
growth, while in Ireland the flagship portfolio reported a £7m revaluation
gain, all relating to improvements in income in the period.
Capital expenditure
Capital expenditure totalled £28m in the first half of the year. £15m was
spent on the Flagship portfolio, principally on repositioning and
reconfiguration works, particularly at Cabot Circus and The Oracle, with the
remainder spent supporting the strong leasing performance and ESG projects.
We invested £13m in our Developments and other portfolio, half of this was
spent on The Ironworks residential scheme at Dundrum which is due to complete
in Q425 and recently had its official sales launch. The remaining expenditure
was focused on initiatives to progress schemes integral to our assets in Les 3
Fontaines and Birmingham. Table 10 in Additional information analyses the
spend between the creation of additional area and that relating to the
enhancement of existing space.
Like-for-like ERV
Flagship destinations Six months ended Year ended Six months ended 30 June 2024
%
30 June 2025 31 December 2024
%
%
UK 0.9 2.3 1.5
France 0.9 1.9 0.6
Ireland 2.5 0.8 0.5
1.2 1.8 0.9
Like-for-like ERVs grew by 1.2% in the first six months of 2025, with growth
across all three countries driven by leasing performance and the benefits of
recent or ongoing repurposing and repositioning. The Irish portfolio
achieved the highest level of growth of 2.5%, with Pavilions, Swords seeing
the most significant uplifts and occupancy in Ireland is now 98%.
Property returns analysis
In the first six months of 2025, the Group portfolio generated a total
property return of 4.0%, comprising an income return of 2.9% and a capital
return of 1.1%. The split by portfolio is shown in the table below.
30 June 2025
Proportionally consolidated UK France Ireland Flagship Developments and other Group portfolio
%
%
%
destinations
%
%
%
Income return 4.0 2.2 3.1 3.1 0.8 2.9
Capital return 2.0 (0.2) 1.4 1.0 1.9 1.1
Total return 6.1 2.0 4.6 4.2 2.8 4.0
Investment in joint ventures
Details of the Group's joint ventures are shown in note 13 to the interim
financial statements.
During 2025, our investment in joint ventures decreased by £132m to £956m
(FY24: £1,088m). The Group's acquisition of the Brent Cross joint venture
stake reduced the investment by £161m with a further reduction of £19m due
to cash distributions to the Group. This was partly offset by the Group's
share of EPRA earnings of £34m and property net revaluation gains of £6m.
Trade receivables
Collection rates remained high in the first half of the year such that 97% of
the rental income due for the first half of 2025 (as at
25 July 2025) has been collected.
On a proportionally consolidated basis, net trade receivables at 30 June 2025
were £45m (FY24: £51m), reflecting gross trade receivables of £60m (FY24:
£67m) against which a provision of £15m (FY24: £16m) has been applied.
Financing overview
Financing and cash flow
Key financial metrics
Proportionally consolidated Calculation 30 June 2025 31 December 2024
(References to Additional Information)
Net debt Table 12 £1,024m £799m
Liquidity £1,239m £1,417m
Weighted average interest rate - net debt 1.7% 2.0%
Weighted average interest rate - gross debt 3.5% 3.5%
Weighted average maturity of debt 4.2 years 4.7 years
FX hedging 88% 90%
Net debt:EBITDA Table 14 7.8x 5.8x
Loan to value Table 17 35% 30%
Fixed rate debt as a proportion of total debt 100% 100%
Metrics with associated financial covenants Covenant
Interest cover ≥ 1.25x Table 15 6.29x 5.03x
Gearing - Bonds maturing in 2025, 2027 and 2036 ≤ 175% Table 16 56% 45%
- Bonds maturing in 2026 and 2028, senior notes and revolving credit facilities ≤ 150% Table 16 56% 45%
Unencumbered asset ratio - Senior notes only ≥ 1.5x Table 19 2.77x 3.23x
Secured debt/equity shareholders' funds - All bonds, senior notes and ≤50% 8% 8%
revolving credit facilities
In the first six months of 2025, net debt increased by £225m to £1,024m. The
key factors were the acquisition of Brent Cross for £186m and adverse foreign
exchange movements of £53m due to the strengthening of the euro relative to
sterling.
The Group's financial position remains strong with net debt:EBITDA of 7.8x
(FY24: 5.8x) and LTV was 35% (FY24: 30%).
At 30 June 2025 cash was £626m, of which £554m is held by the Reported
Group. The cash balance is sufficient to cover the £338m 3.5% bond maturing
in the October 2025 and also, taking account of the planned equity placing,
fund the acquisition of the remaining 50% of Bullring and Grand Central.
On a pro forma basis, the acquisition of Bullring and Grand Central and the
associated equity placing increases the Group's net debt:EBITDA to around 7.9x
and LTV to around 37%.
Liquidity at 30 June 2025 totalled £1,239m (FY24: £1,417m) comprising cash
and unutilised committed credit facilities. In April, we cancelled two
revolving credit facilities totalling £139m with maturities in 2026 and
replaced with two new three-year facilities totalling £150m which expire in
2028. The new facilities contain two one-year extension options, which are
subject to lender consent.
Managing foreign exchange exposure
The Group's exposure to foreign exchange translation differences on
euro-denominated assets is managed through a combination of euro borrowings
and derivatives. At 30 June 2025, the value of euro-denominated liabilities as
a proportion of the value of euro-denominated assets was 88% (FY24: 90%).
Interest on euro-denominated debt also acts as a partial hedge against
exchange differences arising on net income from our overseas operations. The
sterling:euro exchange rate was £1:€1.168 at 30 June 2025 (FY24:
£1:€1.21).
Borrowings and covenants
The terms of the Group's unsecured borrowings contain a number of covenants
which provide protection to the lenders and bondholders as set out in the Key
financial metrics table above. At 30 June 2025, the Group had significant
headroom against these metrics.
In addition, Dundrum's secured debt facility contains specific covenants on
loan to value and interest cover. Again, at 30 June 2025, there was
significant headroom and there is no recourse to the Group.
Credit ratings
The Group is committed to maintaining a sustainable and resilient capital
structure with an Investment Grade credit rating. The Group's credit ratings
were unchanged in 2025 such that the Group's investment grade long-term debt
rating from Moody's is Baa2. Fitch have a BBB issuer default rating (senior
unsecured debt rating at BBB+) with a positive outlook.
Cash flow and net debt
Proportionally consolidated net debt
Movement in proportionally consolidated net debt, £m
http://www.rns-pdf.londonstockexchange.com/rns/2884T_1-2025-7-30.pdf
(http://www.rns-pdf.londonstockexchange.com/rns/2884T_1-2025-7-30.pdf)
On a proportionally consolidated basis, net debt increased by £225m to
£1,024m (FY24: £799m) with the key factors being the acquisition of Brent
Cross for £186m, adverse foreign exchange translation movements of £53m due
to the weakening of sterling in the period and the final 2024 dividend of
£40m. These were partly offset by cash from operations of £82m and £25m
from the sale of Leeds Eastgate land, net of costs.
Debt and facility profile
Maturity profile of loans and facilities
Proportionally consolidated at 30 June 2025, £m
http://www.rns-pdf.londonstockexchange.com/rns/2884T_2-2025-7-30.pdf
(http://www.rns-pdf.londonstockexchange.com/rns/2884T_2-2025-7-30.pdf)
At 30 June 2025, the Group's weighted average maturity of debt was 4.2 years
(FY24: 4.7 years) with the constituent elements shown in the table below.
Maturity analysis of loans and reconciliation to net debt
Maturity(1) 30 June 2025 31 December 2024
£m
£m
£338.3m 3.5% sterling bonds 2025 338.1 337.8
Senior notes 2026 59.9 57.9
£43.2m 6% sterling bonds 2026 43.1 43.1
€700m 1.75% euro bonds 2027 595.7 574.1
£56.8m 7.25% sterling bonds 2028 55.8 55.7
Senior notes 2028 10.9 10.5
Senior notes 2031 5.0 4.8
£400m 5.875% sterling bonds 2036 392.4 392.1
Unamortised facility fees 2027-2028 (2.1) (1.8)
Total loans - Reported Group 1,498.8 1,474.2
Secured borrowing(2) 2031 146.6 141.2
Total loans - proportionally consolidated 1,645.4 1,615.4
Cash and cash equivalents (625.8) (814.2)
Fair value of currency swaps 4.0 (2.2)
Net debt - proportionally consolidated 1,023.6 799.0
1 Maturity for loans at 30 June 2025.
2 Secured loan held by Dundrum joint venture.
Risks and uncertainties
The Board continually reviews and monitors the principal risks and
uncertainties which could have a material effect on the Group's results. The
Directors have considered the principal risks and uncertainties disclosed in
the Annual Report for the year ended 31 December 2024, which are summarised
below, and do not consider these to have materially changed. Full disclosure
of these risks, including the factors which mitigate them, are set out within
the Risk and uncertainties section of the Annual Report 2024.
Principal risk Residual Explanation
risk level
Macroeconomic and geopolitical High Adverse changes to the geopolitical landscape and macroeconomic environment in
which the Group operates have the potential to hinder the ability to deliver
the strategy and financial performance.
Occupational markets Medium The Group fails to anticipate and address structural market changes and target
optimal property sectors. This could impair leasing performance, result in a
sub-optimal occupier mix and thus impact the ability to attract customers, and
grow footfall, spend and income at the Group's destinations.
Investment market, valuations and capital allocation Medium Investor demand in our property markets is reduced due to macroeconomic and/or
property market factors including increased borrowing costs, economic
downturn, and consumer and occupier confidence. This could adversely impact
property valuations and risk hindering the liquidity of the Group's portfolio
which in turn would reduce the availability of funds for reinvestment in core
assets and/or refinancing of debt. There is also a risk that the Group
allocate capital sub-optimally, including in JV partnerships that are not
fully aligned with our strategy, resulting in reduced returns, weaker investor
sentiment and capital performance.
Climate change Medium Climate risks, particularly the reduction in carbon emissions and compliance
with ESG regulations, are not appropriately managed and communicated. This is
likely to adversely impact valuations and investor sentiment and may result in
an increased final year bond coupon if the Group's sustainability linked bond
targets are not met. Also, extreme weather events may impact our properties.
Legal, regulatory and tax Medium The failure to comply with laws and regulations applicable to the Group and/or
increased tax levies. These laws and regulations, including tax, cover the
Group's role as a multi-jurisdiction listed company; an owner and operator of
property; an employer; and as a developer. Failure to comply could result in
the Group suffering reputational damage, financial penalties/loss and/or other
sanctions. Changes or new requirements may place administrative and cost
burdens on the Group and divert resources away from strategic objectives.
Operational resilience Medium The Group's ability to protect its reputation, income and capital values could
be damaged by a failure to manage several key operational risks including but
not limited to: poor performance of key suppliers or third parties, health and
safety issues including a pandemic, civil unrest including acts of terrorism,
cyber-attack or other IT disruption.
Capital structure Medium Lack of access to capital on attractive terms could lead to the Group having
insufficient capital or liquidity to enable the delivery of the Group's
strategic objectives.
Property development and repurposing Medium Property development and the repurposing of our assets are inherently risky
due to the complexity, management intensity and uncertain outcomes, and
exposure to the volatile costs of materials and labour and sub-contractor
resilience, particularly for major schemes with multiple phases and long
delivery timescales. Unsuccessful projects can result in adverse financial and
reputational outcomes.
People Medium A failure to retain or recruit key management and other colleagues to build
skilled, high performing, and diverse teams could adversely impact operational
and corporate performance, culture and ultimately the delivery of the Group's
strategy. As the Group evolves its strategy it must continue to motivate and
retain people, ensure it offers the right colleague proposition and attract
new skills in an ever-changing market.
Independent review report to Hammerson plc
Report on the condensed consolidated interim financial statements
Our conclusion
We have reviewed Hammerson plc's condensed consolidated interim financial
statements (the "interim financial statements") in the Half Year 2025 Results
of Hammerson plc for the six month period ended 30 June 2025 (the "period").
Based on our review, nothing has come to our attention that causes us to
believe that the interim financial statements are not prepared, in all
material respects, in accordance with UK adopted International Accounting
Standard 34, 'Interim Financial Reporting', International Accounting Standard
34, 'Interim Financial Reporting' as adopted by the European Union and the
Disclosure Guidance and Transparency Rules sourcebook of the United Kingdom's
Financial Conduct Authority.
The interim financial statements comprise:
· the Consolidated balance sheet as at 30 June 2025;
· the Consolidated income statement, Consolidated statement of
comprehensive income, Consolidated statement of changes in equity and
Consolidated cash flow statement for the period then ended; and
· the explanatory notes to the interim financial statements.
The interim financial statements included in the Half Year 2025 Results of
Hammerson plc have been prepared in accordance with UK adopted International
Accounting Standard 34, 'Interim Financial Reporting', International
Accounting Standard 34, 'Interim Financial Reporting' as adopted by the
European Union and the Disclosure Guidance and Transparency Rules sourcebook
of the United Kingdom's Financial Conduct Authority.
Basis for conclusion
We conducted our review in accordance with International Standard on Review
Engagements (UK) 2410, 'Review of Interim Financial Information Performed by
the Independent Auditor of the Entity' issued by the Financial Reporting
Council for use in the United Kingdom ("ISRE (UK) 2410"). A review of interim
financial information consists of making enquiries, primarily of persons
responsible for financial and accounting matters, and applying analytical and
other review procedures.
A review is substantially less in scope than an audit conducted in accordance
with International Standards on Auditing (UK) and, consequently, does not
enable us to obtain assurance that we would become aware of all significant
matters that might be identified in an audit. Accordingly, we do not express
an audit opinion.
We have read the other information contained in the Half Year 2025 Results and
considered whether it contains any apparent misstatements or material
inconsistencies with the information in the interim financial statements.
Conclusions relating to going concern
Based on our review procedures, which are less extensive than those performed
in an audit as described in the Basis for conclusion section of this report,
nothing has come to our attention to suggest that the directors have
inappropriately adopted the going concern basis of accounting or that the
directors have identified material uncertainties relating to going concern
that are not appropriately disclosed. This conclusion is based on the review
procedures performed in accordance with ISRE (UK) 2410. However, future events
or conditions may cause the group to cease to continue as a going concern.
Responsibilities for the interim financial statements and the review
Our responsibilities and those of the directors
The Half Year 2025 Results, including the interim financial statements, is the
responsibility of, and has been approved by the directors. The directors are
responsible for preparing the Half Year 2025 Results in accordance with the
Disclosure Guidance and Transparency Rules sourcebook of the United Kingdom's
Financial Conduct Authority. In preparing the Half Year 2025 Results,
including the interim financial statements, the directors are responsible for
assessing the group's ability to continue as a going concern, disclosing, as
applicable, matters related to going concern and using the going concern basis
of accounting unless the directors either intend to liquidate the group or to
cease operations, or have no realistic alternative but to do so.
Our responsibility is to express a conclusion on the interim financial
statements in the Half Year 2025 Results based on our review. Our conclusion,
including our Conclusions relating to going concern, is based on procedures
that are less extensive than audit procedures, as described in the Basis for
conclusion paragraph of this report. This report, including the conclusion,
has been prepared for and only for the company for the purpose of complying
with the Disclosure Guidance and Transparency Rules sourcebook of the United
Kingdom's Financial Conduct Authority and for no other purpose. We do not, in
giving this conclusion, accept or assume responsibility for any other purpose
or to any other person to whom this report is shown or into whose hands it may
come save where expressly agreed by our prior consent in writing.
PricewaterhouseCoopers LLP
Chartered Accountants
London
31 July 2025
statement OF DIRECTORS' RESPONSIBILITIES
The Directors' confirm that, to the best of their knowledge, the condensed
consolidated interim financial statements (the 'interim financial statements')
in the Half Year 2025 Results have been prepared in accordance with UK adopted
International Accounting Standard 34 (IAS 34), IAS 34 as adopted by the
European Union, the SAICA Financial Reporting Guides as issued by the
Accounting Practices Committee and that the Half Year 2025 Results includes a
fair review of the information required by the Disclosure Guidance and
Transparency Rules (DTR) 4.2.7R and DTR 4.2.8R, namely:
The interim financial statements comprise:
· An indication of important events that have occurred during the first
six months of the financial year and their impact on the condensed set of
financial statements, and a description of the principal risks and
uncertainties for the remaining six months of the financial year; and
· Any material related party transactions that have taken place in the
first six months of the financial year and any material changes in the related
party transactions described in the Company's last Annual Report.
A list of the current Directors is maintained on the Hammerson plc website:
www.hammerson.com. The maintenance and integrity of the Hammerson plc website
is the responsibility of the Directors. The work carried out by the auditors
does not involve consideration of these matters and, accordingly, the auditors
accept no responsibility for any changes that might have occurred to the
interim financial statements since they were initially presented on the
website.
Legislation in the United Kingdom governing the preparation and dissemination
of financial statements may differ from legislation in other jurisdictions.
Signed on behalf of the Board on 30 July 2025
Rita-Rose Gagné Himanshu Raja
Director Director
Consolidated income statement
Six months ended 30 June 2025
Notes Six months ended Six months ended
30 June 2025 30 June 2024
Unaudited Unaudited
£m £m
Revenue 2,4 80.8 59.4
Profit from operating activities(1) 2 24.8 11.2
Net revaluation gains/(losses) on properties 2 20.6 (16.8)
Other net gains/(losses) 2 3.7 (10.8)
Share of results of joint ventures 13C 39.3 9.6
Operating profit/(loss) 88.4 (6.8)
Finance income 6 20.3 18.2
Finance costs 6 (29.6) (35.4)
Profit/(Loss) before tax 79.1 (24.0)
Tax charge 7 (0.2) (0.1)
Profit/(Loss) from continuing operations 78.9 (24.1)
Loss from discontinued operations 9B - (492.6)
Profit/(Loss) for the period 78.9 (516.7)
Attributable to:
Equity shareholders 78.7 (516.7)
Non-controlling interests(2) 21 0.2 -
78.9 (516.7)
Basic earnings/(loss) per share attributable to equity shareholders(3)
Continuing operations 16.2p (4.8)p
Discontinued operations - (99.0)p
Total 11B 16.2p (103.8)p
Diluted earnings/(loss) per share attributable to equity shareholders(3)
Continuing operations 16.1p (4.8)p
Discontinued operations - (99.0)p
Total 11B 16.1p (103.8)p
1 Includes a net charge of £1.9m (30 June 2024: net charge of £1.8m)
relating to provisions for impairment of trade (tenant) receivables as set out
in note 14.
2 Non-controlling interests relate to continuing operations. See note 21
for further details.
3 Earnings/(Loss) per share figures for the six months ended 30 June
2024 have been restated to reflect the 1 for 10 share consolidation completed
in September 2024. See note 11 for further details.
Consolidated statement of comprehensive income
Six months ended 30 June 2025
Six months ended Six months ended
30 June 2025 30 June 2024
Unaudited Unaudited
£m £m
Profit/(Loss) for the period 78.9 (516.7)
Other comprehensive income/(expenses):
Items that may subsequently be recycled through profit or loss
Foreign exchange translation differences 54.4 (30.6)
Foreign exchange translation differences of discontinued operations - 0.2
(Loss)/Gain on net investment hedge (46.8) 37.0
Share of other comprehensive losses of discontinued operations - (4.4)
7.6 2.2
Items that will not subsequently be recycled through profit or loss
Net actuarial gains on pension schemes - 0.1
Other comprehensive income for the period 7.6 2.3
Total comprehensive income/(loss) from continuing operations 86.5 (17.6)
Total comprehensive loss from discontinued operations - (496.8)
Total comprehensive income/(loss) for the period 86.5 (514.4)
Attributable to:
Equity shareholders 86.3 (514.4)
Non-controlling interests(1) 0.2 -
Total comprehensive income/(loss) for the period 86.5 (514.4)
1 Non-controlling interests relate to continuing operations. See note 21
for further details.
Consolidated balance sheet
As at 30 June 2025
Note 30 June 2025 31 December 2024
Unaudited Audited
£m £m
Non-current assets
Investment properties 12 1,905.1 1,487.0
Interests in leasehold properties 48.3 34.8
Right-of-use assets 7.1 7.5
Plant and equipment 0.4 0.4
Investment in joint ventures 13D 955.8 1,088.2
Other investments 8.8 9.2
Trade and other receivables 1.5 0.2
Restricted monetary assets 21.4 21.4
2,948.4 2,648.7
Current assets
Trade and other receivables 14 87.7 87.6
Derivative financial instruments 1.5 2.2
Cash and cash equivalents 554.4 737.9
643.6 827.7
Total assets 3,592.0 3,476.4
Current liabilities
Trade and other payables (138.6) (109.3)
Obligations under head leases (0.1) (0.1)
Loans 15A (338.1) (337.8)
Tax (1.7) (2.8)
Derivative financial instruments (4.9) (0.1)
(483.4) (450.1)
Non-current liabilities
Trade and other payables (32.5) (28.7)
Obligations under head leases (53.6) (39.7)
Loans 15A (1,160.7) (1,136.4)
Deferred tax (0.4) (0.4)
(1,247.2) (1,205.2)
Total liabilities (1,730.6) (1,655.3)
Net assets 1,861.4 1,821.1
Equity
Share capital 24.2 24.6
Capital redemption reserve 225.9 225.5
Other reserves 18 99.4 91.8
Retained earnings 1,503.4 1,486.9
Investment in own shares (5.0) (7.7)
Equity shareholders' funds 1,847.9 1,821.1
Equity attributable to non-controlling interests 21 13.5 -
Total equity 1,861.4 1,821.1
EPRA net tangible assets value per share 11C £3.81 £3.70
Consolidated statement of changes in equity
Six months ended 30 June 2025 - unaudited
Share capital(1) Capital redemption reserve(2) Other reserves(3) Retained earnings Investment in own shares(1) Equity shareholders' funds Non-controlling interests(4) Total equity
£m £m £m £m £m £m £m £m
At 1 January 2025 24.6 225.5 91.8 1,486.9 (7.7) 1,821.1 - 1,821.1
Foreign exchange translation differences - - 54.4 - - 54.4 - 54.4
Loss on net investment hedge - - (46.8) - - (46.8) - (46.8)
Profit for the period - - - 78.7 - 78.7 0.2 78.9
Total comprehensive income - - 7.6 78.7 - 86.3 0.2 86.5
Initial recognition of non-controlling interest on acquisition of Brent - - - - - - 43.0 43.0
Cross(4)
Subsequent acquisition of non-controlling interest in Brent Cross(4) - - - - - - (29.7) (29.7)
Share buyback and cancellation(5) (0.4) 0.4 - (22.1) - (22.1) - (22.1)
Share-based employee remuneration - - - 2.2 - 2.2 - 2.2
Cost of shares awarded to employees - - - (2.7) 2.7 - - -
Dividends - - - (39.6) - (39.6) - (39.6)
At 30 June 2025 24.2 225.9 99.4 1,503.4 (5.0) 1,847.9 13.5 1,861.4
Six months ended 30 June 2024 - unaudited
Share capital(1) Share premium Other reserves(3) Retained earnings Investment in own shares(1) Equity shareholders' funds
£m £m £m £m £m £m
At 1 January 2024 250.1 1,563.7 105.5 549.7 (6.4) 2,462.6
Foreign exchange translation differences(6) - - (30.4) - - (30.4)
Gain on net investment hedge - - 37.0 - - 37.0
Loss on cash flow hedge - - (0.2) - - (0.2)
Loss on cash flow hedge recycled to net finance costs - - 0.2 - - 0.2
Share of other comprehensive loss of associates(7) - - - (4.4) - (4.4)
Net actuarial gains on pension schemes - - - 0.1 - 0.1
Loss for the period(6) - - - (516.7) - (516.7)
Total comprehensive income/(loss) - - 6.6 (521.0) - (514.4)
Share-based employee remuneration - - - 1.9 - 1.9
Purchase of own shares - - - - (3.4) (3.4)
Cost of shares awarded to employees - - - (1.5) 1.5 -
Dividends - - - (39.0) - (39.0)
At 30 June 2024 250.1 1,563.7 112.1 (9.9) (8.3) 1,907.7
For notes see page 28.
Consolidated statement of Changes in equity - continued
Year ended 31 December 2024 - audited
Share capital(1) Share premium Capital redemption reserve(2) Other reserves(3) Retained earnings Investment in own shares(1) Equity shareholders' funds
£m £m £m £m £m £m £m
At 1 January 2024 250.1 1,563.7 - 105.5 549.7 (6.4) 2,462.6
Recycled exchange gains on disposal of overseas associate - - - (9.9) - - (9.9)
Foreign exchange translation differences(6) - - - (74.5) - - (74.5)
Gain on net investment hedge - - - 70.7 - - 70.7
Gain on cash flow hedge - - - 2.2 - - 2.2
Gain on cash flow hedge recycled to net finance costs - - - (2.2) - - (2.2)
Share of other comprehensive loss of associates(7) - - - - (4.4) - (4.4)
Net actuarial losses on pension schemes - - - - (0.5) - (0.5)
Loss for the period(6) - - - - (526.3) - (526.3)
Total comprehensive loss - - - (13.7) (531.2) - (544.9)
Share capital consolidation(8) (225.1) - 225.1 - - - -
Share premium cancellation(9) - (1,563.7) - - 1,563.7 - -
Share buyback and cancellation(5) (0.4) - 0.4 - (20.9) - (20.9)
Share-based employee remuneration - - - - 4.3 - 4.3
Purchase of own shares - - - - - (3.4) (3.4)
Cost of shares awarded to employees - - - - (2.1) 2.1 -
Dividends - - - - (76.6) - (76.6)
At 31 December 2024 24.6 - 225.5 91.8 1,486.9 (7.7) 1,821.1
1 Share capital includes shares held in treasury and shares held in an
employee share trust, which are held at cost and excluded from equity
shareholders' funds through 'Investment in own shares'.
2 The capital redemption reserve comprises the nominal value of shares
cancelled by way of the Company's 1 for 10 share consolidation on 30 September
2024 (see note 11) and shares purchased and cancelled under the Group's share
buyback programme which commenced in October 2024 (see footnote 9). This
reserve is non-distributable.
3 Other reserves comprise Translation, Net investment hedge and, during
2024, Cash flow hedge reserves as set out in note 18.
4 Reflects non-controlling interest in Brent Cross, initially on 9 May
2025 when the Group obtained control, and the subsequent movement over the
period to 30 June 2025, and relates to continuing operations. See notes 13B
and 21 for further details.
5 On 16 October 2024, the Company announced the commencement of a share
buyback program of up to £140m. In 2025, 8.2m shares were repurchased and
cancelled under the programme for total consideration of £22.1m. When
aggregated with the 7.0m shares repurchased and cancelled for total
consideration of £20.9m in 2024, at 30 June 2025 the Group has repurchased
and cancelled a total of 15.2m shares for total consideration of £43.0m.
6 Relates to continuing and discontinued operations.
7 Relates to discontinued operations.
8 Following shareholder approval at a General meeting on 12 September
2024, the Company completed a 1 for 10 share consolidation on
30 September 2024 whereby each of its ordinary shares were subdivided into 9
deferred shares and one ordinary share, following which the deferred shares
were cancelled.
9 Following shareholder approval at a General meeting on 12 September
2024 and subsequent sanctioning by the High Court of England and Wales on 8
October 2024, the Company cancelled its share premium account. The effect of
this Capital Reduction was to increase the distributable reserves of the
Company through a transfer to retained earnings.
Consolidated cash flow statement
Six months ended 30 June 2025
Note Six months ended Six months ended
30 June 2025 30 June 2024
Unaudited Unaudited
£m £m
Profit from operating activities 24.8 11.2
Net movements in working capital and restricted monetary assets 19A 16.3 (17.3)
Non-cash items 19A 2.3 3.0
Cash generated from/(utilised in) operations 43.4 (3.1)
Interest received 21.1 20.3
Interest paid (27.0) (53.6)
Loan facility early repayment costs (0.2) -
Debt and loan facility issuance and extension fees (1.0) (0.8)
Tax paid (1.3) -
Distributions and other receivables from joint ventures 21.1 23.9
Cash flows from operating activities 56.1 (13.3)
Investing activities
Property acquisition, net of cash acquired 13B (166.6) -
Capital expenditure (11.2) (8.0)
Sale of properties 24.7 116.3
Advances to joint ventures (0.5) (4.4)
Distributions and capital returns received from associates (Value Retail) - 12.3
Cash flows from investing activities (153.6) 116.2
Financing activities
Acquisition of non-controlling interests, net of cash acquired 13B (19.5) -
Purchase of own shares - (3.4)
Share buyback and cancellation (22.1) -
Repayment of borrowings (5.6) (91.9)
Equity dividends paid 17 (39.6) (45.0)
Cash flows from financing activities (86.8) (140.3)
Decrease in cash and cash equivalents (184.3) (37.4)
Opening cash and cash equivalents 19B 737.9 472.3
Exchange translation movement 19B 0.8 (1.0)
Closing cash and cash equivalents 19B 554.4 433.9
For 2024, the cash flows above relate to continuing and discontinued
operations. For 2025, the cash flows above all relate to continuing
operations. See note 9 for further information on discontinued operations.
Notes to the condensed consolidated interim financial statements
For the six months ended 30 June 2025
1. BASIS OF PREPARATION, CONSOLIDATION AND MATERIAL ACCOUNTING POLICIES
A. GENERAL INFORMATION
The condensed set of interim financial statements for the six months ended 30
June 2025 were approved by the Board of Directors on
30 July 2025.
The condensed consolidated interim financial statements for the six months
ended 30 June 2025 are unaudited and do not constitute statutory accounts
within the meaning of section 434 of the Companies Act 2006, but have been
reviewed by the auditor. Statutory accounts for the year ended 31 December
2024, which were prepared in accordance with both UK adopted International
Accounting Standards and International Financial Reporting Standards (IFRS)
adopted pursuant to Regulation (EC) No 1606/2002 as it applies in the European
Union, were approved by the Directors on 25 February 2025 and have been
delivered to the Registrar of Companies. The report of the auditor on those
accounts was unqualified, did not draw attention to any matters by way of
emphasis and did not contain any statement under section 498(2) or (3) of the
Companies Act 2006.
B. BASIS OF PREPARATION
These condensed consolidated interim financial statements for the six months
ended 30 June 2025 have been prepared on a going concern basis and in
accordance with International Accounting Standards 34, 'Interim Financial
Reporting' (IAS 34) contained in UK and EU adopted IFRS and the Disclosure
Guidance and Transparency Rules of the UK Financial Conduct Authority as well
as SAICA Financial Reporting Guides as issued by the Accounting Practices
Committee.
With the exception of IFRS 18 - Presentation and Disclosure in Financial
Statements, new accounting standards, amendments to standards and IFRIC
interpretations which became applicable during the period or have been
published but are not yet effective, were either not relevant or had no, or
are not expected to have a material impact on the Group's results or net
assets. IFRS 18 applies for accounting periods beginning on, or after, 1
January 2027 and will apply to comparative information. Management is
currently assessing the detailed implications of applying the new standard on
the Group's consolidated financial statements.
The interim financial statements have been prepared on the basis of the
accounting policies as set out in the Group's audited financial statements for
the year ended 31 December 2024. These were prepared in accordance with both
UK adopted international accounting standards and International Financial
Reporting Standards adopted pursuant to Regulation (EC) No 1606/2002 as it
applies in the EU (IFRS adopted by the EU as at 31 December 2020), as well as
SAICA Financial Reporting Guides as issued by the Accounting Practices
committee and those parts of the Companies Act 2006 as applicable to companies
reporting under IFRS and have been applied consistently year-on-year. The only
exception to this relates to the recognition and measurement of
non-controlling interests associated with the Group's acquisition in the
period of the entity which held the 59.4% joint venture stake in Brent Cross.
The Group's accounting policy for non-controlling interests is to recognise,
and subsequently hold, the interests at their proportionate share of the
underlying net assets and recognise their share of profits or losses for the
period, the latter being separately presented in the consolidated income
statement. Further information on this acquisition and the associated
non-controlling interests is given in notes 13B and 21.
In addition, the Group's significant accounting judgements are also consistent
with those disclosed in the Group's audited financial statements for the year
ended 31 December 2024.
The principal foreign currency denominated balances are in euro where the
translation exchange rates used are:
Consolidated income statement (average rate): Six months ended Six months ended
30 June 2025 30 June 2024
Quarter 1 €1.197 €1.168
Quarter 2 €1.178 €1.172
Consolidated balance sheet (closing rate): 30 June 2025 31 December 2024
Period end rate €1.168 €1.210
C. GOING CONCERN
Introduction
In order to prepare the interim financial statements for the period ended 30
June 2025 on a going concern basis the Directors have undertaken a detailed
assessment of the Group's principal risks and current and projected financial
position over the period to
31 December 2026 ('the going concern period'). This period has been selected
as it coincides with the first six monthly covenant test date for the Group's
unsecured debt facilities, falling due after the minimum 12 months going
concern period.
Financial position
The financial position of the Group, including details of its financing and
capital structure, is set out in the Financial Review on pages 17 to 19. At 30
June 2025, the Group's position remained robust with net debt of £1,024m, net
debt:EBITDA of 7.8x and loan to value of 35%. Liquidity was £1,239m compared
to £441m of debt maturing over the going concern period.
At 30 June 2025, the Group's key unsecured debt covenants had significant
headroom. Gearing and the Unencumbered asset ratio had headroom to valuation
falls of 39% and 46% respectively, while the Interest cover ratio had headroom
to NRI reductions of 80%.
1. BASIS OF PREPARATION, CONSOLIDATION AND MATERIAL ACCOUNTING POLICIES
C. GOING CONCERN
Assessment
In making the going concern assessment, the Directors have considered the
Group's principal risks (see page 20), including climate change, and their
impact on financial performance.
The Directors have assessed a Base going concern scenario ('Base scenario')
derived from a reforecast of the Group's 2025 Business Plan incorporating the
contracted acquisition of Bullring and Grand Central, the results of which
were reviewed by the Board and included earnings, balance sheet, cash flow,
liquidity and credit metric projections. The Board also reviewed reverse
stress tests ('stress tests') to the Base scenario to assess the Group's
ability to cope with adverse changes to key variables in the forecasts
impacting covenant metrics.
Acknowledging the three macroeconomies that the Group operates in, each with
their own distinct risks, the Base scenario projections assume continued
improvements in the Group's operating performance in the near term, reflecting
enduring demand from customers and brand partners for the best destinations as
evidenced by growing footfall and strong leasing in the first half of 2025.
Consistent with the Group's strong financial position and operating
performance, the Base scenario forecasts that the Group will maintain
significant covenant headroom and liquidity over the going concern period.
The stress tests were undertaken on the Base scenario to assess the maximum
level that valuations and net rental income could fall over the going concern
period before the Group reaches its key unsecured debt covenant thresholds.
The stress test calculations adopted valuation yields and ERVs as at 30 June
2025 and also factored in:
- the secured loan at Dundrum (Group's 50% share £147m), which matures
in 2031, is non-recourse to the Group and has its own debt covenants; and
- £76m of senior notes which mature over the period to 2031, with £60m
maturing in 2026, and which are subject to an additional unencumbered asset
ratio covenant.
Conclusion
Having reviewed the Base scenario projections, the results of the stress
tests, current external forecasts, recent precedents and plausible future
adverse impacts to valuations and net rental income, the Directors are
satisfied that the Group has sufficient covenant headroom and significant
liquidity over the going concern period. Based on these considerations,
together with available market information and the Directors' experience of
the Group's portfolio and markets, the Directors have therefore concluded that
it is appropriate to prepare the financial statements on a going concern
basis.
2. PROPORTIONALLY CONSOLIDATED INFORMATION
As described in the Financial Review and note 3, for management reporting
purposes the Group evaluates the performance of its business on a
proportionally consolidated basis by aggregating its properties or entities
which are wholly owned or its share of those in joint operations ('Reported
Group') with the Group's proportionate share of joint ventures (see note 13).
A. PROFIT/(LOSS) FOR THE PERIOD
In September 2024, EPRA published updated guidelines for the calculation of
EPRA earnings which allowed the inclusion of one-off "non-operating and
exceptional items". These items had previously been reconciling items between
EPRA earnings and the Group's Adjusting earnings. As explained in the
Financial Review in the 2024 Annual Report, the Group has adopted the updated
EPRA guidelines with effect from 1 January 2025 and restated prior period EPRA
earnings such that they are the same as previously reported Adjusted earnings.
EPRA earnings is therefore now the Group's primary profit measure and is the
basis of information which is reported to the Board and Adjusted earnings will
no longer be reported. See page 11 of the Financial Review and note 10A to the
interim financial statements for further details.
The following tables set out a reconciliation from the Group's profit/(loss)
for the current and prior periods under IFRS to EPRA earnings.
Six months ended 30 June 2025
Proportionally consolidated
Note Reported Group Share of Joint ventures Sub-total before adjustments Capital and other adjustments(1)£m EPRA
£m
£m
£m
Earnings
£m
Revenue 4 80.8 54.7 135.5 - 135.5
Gross rental income(2) 3A, 4 57.2 47.4 104.6 - 104.6
Service charge income 4 18.6 7.3 25.9 - 25.9
75.8 54.7 130.5 - 130.5
Service charge expenses (20.3) (7.7) (28.0) - (28.0)
Cost of sales 5 (12.8) (9.8) (22.6) - (22.6)
Net rental income 42.7 37.2 79.9 - 79.9
Gross administration costs 5 (22.9) (0.2) (23.1) 1.1 (22.0)
Other income 4 5.0 - 5.0 - 5.0
Net administration expenses (17.9) (0.2) (18.1) 1.1 (17.0)
Profit from operating activities 24.8 37.0 61.8 1.1 62.9
Net revaluation gains on properties 12 20.6 5.7 26.3 (26.3) -
Profit on sale of properties 8 4.0 - 4.0 (4.0) -
Change in fair value of other investments (0.3) - (0.3) 0.3 -
Other net gains 3.7 - 3.7 (3.7) -
Share of results of joint ventures 13C 39.3 (39.3) - - -
Operating profit 88.4 3.4 91.8 (28.9) 62.9
Net finance costs 6 (9.3) (3.4) (12.7) (1.6) (14.3)
Profit before tax 79.1 - 79.1 (30.5) 48.6
Tax charge 7 (0.2) - (0.2) - (0.2)
Profit for the period 78.9 - 78.9 (30.5) 48.4
Less profit attributable to non-controlling interests(3) 21 (0.2) - (0.2) - (0.2)
Profit for the period attributable to equity shareholders 78.7 - 78.7 (30.5) 48.2
1 Adjusting items between IFRS profit and EPRA earnings, described above
as 'Capital and other adjustments', are set out in note 10A.
2 Proportionally consolidated figure includes £6.1m of variable rents
calculated by reference to occupiers' turnover.
3 Reflects the proportion of profit in the period which is due to
minority owners of Brent Cross. See notes 13B and 21 for further details.
2. PROPORTIONALLY CONSOLIDATED INFORMATION
A. PROFIT/(LOSS) FOR THE PERIOD
Six months ended 30 June 2024
Proportionally consolidated
Note Reported Group Share of Joint ventures Sub-total before adjustments Capital and other adjustments(1)£m EPRA
£m
£m
£m
earnings
(restated)(4
) £m
Revenue 4 59.4 63.5 122.9 - 122.9
Gross rental income(2) 3A, 4 40.1 54.3 94.4 - 94.4
Service charge income 4 14.0 9.2 23.2 - 23.2
54.1 63.5 117.6 - 117.6
Service charge expenses (16.2) (10.7) (26.9) - (26.9)
Cost of sales 5 (7.8) (10.2) (18.0) - (18.0)
Net rental income 30.1 42.6 72.7 - 72.7
Gross administration costs 5 (24.2) - (24.2) 2.7 (21.5)
Other income 4 5.3 0.1 5.4 - 5.4
Net administration expenses (18.9) 0.1 (18.8) 2.7 (16.1)
Profit from operating activities 11.2 42.7 53.9 2.7 56.6
Net revaluation losses on properties (16.8) (31.0) (47.8) 47.8 -
(Loss)/Profit on sale of properties 8 (11.0) 0.2 (10.8) 10.8 -
Costs associated with pension scheme wind-up (0.5) - (0.5) 0.5 -
Change in fair value of other investments 0.5 - 0.5 (0.5) -
Profit on sale of joint ventures and associates 0.2 (0.2) - - -
Other net gains (10.8) - (10.8) 10.8 -
Share of results of joint ventures 13C 9.6 (9.6) - - -
Operating (loss)/profit (6.8) 2.1 (4.7) 61.3 56.6
Net finance costs 6 (17.2) (2.1) (19.3) 0.6 (18.7)
(Loss)/Profit before tax (24.0) - (24.0) 61.9 37.9
Tax charge 7 (0.1) - (0.1) - (0.1)
(Loss)/Profit from continuing operations (24.1) - (24.1) 61.9 37.8
Profit from discontinued operations(3) (492.6) - (492.6) 504.3 11.7
(Loss)/Profit for the period (516.7) - (516.7) 566.2 49.5
1 Adjusting items between IFRS loss and EPRA earnings, described above
as 'Capital and other adjustments', are set out in note 10A.
2 Proportionally consolidated figure includes £5.5m of variable rents
calculated by reference to occupiers' turnover.
3 Discontinued operations reflect Value Retail, see note 9 for further
details.
4 Previously disclosed as Adjusted earnings and restated to reflect the
Group's adoption of the updated EPRA earnings guidelines as explained in note
10.
B. BALANCE SHEET
The following table sets out the Group's proportionally consolidated balance
sheet, showing the aggregation of the assets and liabilities of entities which
are wholly owned or its share of those in joint operations ('Reported Group')
with the Group's ownership share of those in joint ventures.
30 June 2025 31 December 2024
Note Reported Share of Proportionally Reported Share of Proportionally
Group
Joint ventures
consolidated
Group
Joint ventures
consolidated
£m
£m
£m
£m
£m
£m
Non-current assets
Investment properties 12 1,905.1 1,050.9 2,956.0 1,487.0 1,172.0 2,659.0
Interests in leasehold properties 48.3 8.1 56.4 34.8 13.3 48.1
Right-of-use assets 7.1 - 7.1 7.5 - 7.5
Plant and equipment 0.4 - 0.4 0.4 - 0.4
Investment in joint ventures 13D 955.8 (955.8) - 1,088.2 (1,088.2) -
Other investments 8.8 - 8.8 9.2 - 9.2
Trade and other receivables 14 1.5 1.7 3.2 0.2 1.2 1.4
Restricted monetary assets 21.4 - 21.4 21.4 - 21.4
2,948.4 104.9 3,053.3 2,648.7 98.3 2,747.0
Current assets
Trade and other receivables 14 87.7 13.3 101.0 87.6 22.9 110.5
Derivative financial instruments 1.5 - 1.5 2.2 - 2.2
Cash and cash equivalents 554.4 71.4 625.8 737.9 76.3 814.2
643.6 84.7 728.3 827.7 99.2 926.9
Total assets 3,592.0 189.6 3,781.6 3,476.4 197.5 3,673.9
Current liabilities
Trade and other payables (138.6) (32.3) (170.9) (109.3) (39.7) (149.0)
Obligations under head leases (0.1) - (0.1) (0.1) - (0.1)
Loans 15 (338.1) - (338.1) (337.8) - (337.8)
Tax (1.7) - (1.7) (2.8) - (2.8)
Derivative financial instruments (4.9) - (4.9) (0.1) - (0.1)
(483.4) (32.3) (515.7) (450.1) (39.7) (489.8)
Non-current liabilities
Trade and other payables (32.5) (1.0) (33.5) (28.7) (1.9) (30.6)
Obligations under head leases (53.6) (8.5) (62.1) (39.7) (13.7) (53.4)
Loans 15 (1,160.7) (146.6) (1,307.3) (1,136.4) (141.2) (1,277.6)
Deferred tax (0.4) (0.1) (0.5) (0.4) (0.1) (0.5)
Derivative financial instruments - (1.1) (1.1) - (0.9) (0.9)
(1,247.2) (157.3) (1,404.5) (1,205.2) (157.8) (1,363.0)
Total liabilities (1,730.6) (189.6) (1,920.2) (1,655.3) (197.5) (1,852.8)
Net assets 1,861.4 - 1,861.4 1,821.1 - 1,821.1
Less non-controlling interests (13.5) - (13.5) - - -
Equity shareholders' funds 1,847.9 - 1,847.9 1,821.1 - 1,821.1
EPRA NTA adjustments 10B 2.0 4.3
EPRA NTA 11C 1,849.9 1,825.4
EPRA NTA per share 11C £3.81 £3.70
3. SEGMENTAL ANALYSIS
The Group's reportable segments are determined by the internal performance
reported to the Chief Operating Decision Makers which has been determined to
be the Group Executive Committee. Such reporting is both by sector and
geographic location as these demonstrate different characteristics and risks,
are managed by separate teams and are the basis on which resources are
allocated.
As described in the Financial Review, the Group evaluates the performance of
its portfolio by aggregating its wholly owned properties and its share of
those in joint operations in the 'Reported Group' with its ownership share of
joint ventures presented on a proportionally consolidated line-by-line basis
and labelled 'Share of Joint ventures'.
The Group's activities presented on a proportionally consolidated basis
including the Share of Joint ventures are split between 'Flagship
destinations' in the three countries in which the Group operates and the
Group's 'Developments and other' portfolio and relate to continuing
operations.
Prior to its disposal in September 2024, the Group did not proportionally
consolidate the Group's investment in Value Retail as it was not under the
Group's management, and instead monitored the performance of the investment
separately. As explained in note 9, the results from Value Retail in 2024
were presented as discontinued operations.
Total assets are not monitored by segment and resource allocation is based on
the distribution of property assets between segments.
A. Income and profit by segment
Gross rental income Net rental income
Proportionally consolidated Six months ended Six months ended Six months ended Six months ended
30 June 2025 30 June 2024 30 June 2025 30 June 2024
£m
£m
£m
£m
Flagship destinations
UK 51.0 39.4 39.3 30.4
France 27.5 27.0 21.8 21.6
Ireland 18.8 19.5 16.2 17.1
97.3 85.9 77.3 69.1
Developments and other 7.3 8.5 2.6 3.6
Group portfolio - proportionally consolidated 104.6 94.4 79.9 72.7
Less Share of Joint ventures (47.4) (54.3) (37.2) (42.6)
Reported Group 57.2 40.1 42.7 30.1
B. Investment properties assets by segment
30 June 2025 31 December 2024
Proportionally consolidated Property valuation Capital expenditure Net Property valuation Capital expenditure Net revaluation
£m
£m
£m
£m
revaluation gains/(losses) gains/(losses)£m
£m
Flagship destinations
UK 1,113.0 10.7 19.7 915.3 15.9 16.8
France 1,000.9 4.0 (1.9) 964.1 10.1 4.5
Ireland 549.6 1.3 7.4 522.0 2.3 (82.6)
2,663.5 16.0 25.2 2,401.4 28.3 (61.3)
Developments and other 292.5 11.9 1.1 257.6 11.7 (30.1)
Group portfolio - proportionally consolidated 2,956.0 27.9 26.3 2,659.0 40.0 (91.4)
Less Share of Joint ventures(1) (1,050.9) (15.1) (5.7) (1,172.0) (24.9) 70.8
Reported Group 1,905.1 12.8 20.6 1,487.0 15.1 (20.6)
1 The property valuation of Joint ventures comprises UK Flagship
destinations: £514.7m (31 December 2024: £630.1m); Ireland flagship
destinations: £420.0m (31 December 2024: £412.7m) and Developments and other
£116.2m (31 December 2024: £129.2m).
4. REVENUE
Six months ended Six months ended
30 June 2025 30 June 2024
Note £m £m
Base rent 42.6 31.7
Turnover rent 3.1 1.1
Car park income(1) 6.7 4.5
Lease incentive recognition 1.1 1.4
Other rental income 3.7 1.4
Gross rental income 2 57.2 40.1
Service charge income(1) 2 18.6 14.0
Other income
- Property fee income(1) 3.0 2.9
- Joint venture management fees(1) 2.0 2.4
5.0 5.3
Total - continuing operations 80.8 59.4
1 Revenue for these categories amounted to £30.3m (six months ended 30
June 2024: £23.8m) and is recognised under IFRS 15 'Revenue from Contracts
with Customers'. All other revenue is recognised in accordance with IFRS 16
'Leases'.
5. COSTS
Six months ended Six months ended
30 June 2025 30 June 2024
Note £m £m
Cost of sales
Ground rents payable 0.8 0.5
Inclusive lease costs recovered through rent 1.8 0.7
Other property outgoings(1) 10.2 6.6
12.8 7.8
Gross administration costs
Employee costs 14.0 13.9
Depreciation 0.6 0.8
Other administration costs 7.2 6.8
21.8 21.5
Business transformation costs - excluded from EPRA earnings 10A 1.1 2.7
22.9 24.2
Total - continuing operations 35.7 32.0
1 Includes charges and credits in respect of expected credit losses as
set out in note 14.
6. NET FINANCE COSTS
Six months ended Six months ended
30 June 2025 30 June 2024
£m £m
Finance income
Interest receivable on derivatives 4.7 5.8
Bank and other interest receivable 15.6 12.4
20.3 18.2
Finance costs
Interest on bank loans and overdrafts (1.7) (2.2)
Interest on bonds and related charges (27.7) (30.3)
Interest on senior notes and related charges (0.6) (2.0)
Interest on obligations under head leases and other lease obligations (1.3) (1.1)
Other interest payable - (0.2)
Gross interest costs (31.3) (35.8)
Debt and loan facility cancellation costs - excluded from EPRA earnings 10A (0.2) -
Fair value gains on derivatives - excluded from EPRA earnings 10A 1.9 0.4
(29.6) (35.4)
Net finance costs - continuing operations (9.3) (17.2)
7. TAX CHARGE
Six months ended Six months ended
30 June 2025 30 June 2024
£m £m
Foreign current tax 0.2 0.1
Tax charge - continuing operations 0.2 0.1
The Group's tax charge on its underlying property rental business remains low
because it has tax exempt status in its principal operating countries.
The Group has been a REIT in the UK since 2007 and a SIIC in France since
2004. These tax regimes exempt the Group's property income and gains from
corporate taxes, provided a number of conditions in relation to the Group's
activities are met. These conditions include, but are not limited to,
distributing at least 90% of the Group's UK tax exempt profits as property
income distributions (PID) with equivalent tests of 95% on French tax exempt
property profits and 70% of tax exempt property gains.
The residual profit in the UK and France, which is not exempt under the REIT
and SIIC rules respectively, is subject to corporation tax as normal. The
Irish assets are held in a QIAIF which provides similar tax benefits to those
of a UK REIT but which subjects dividends and certain excessive interest
payments to a 20% withholding tax. The Group is committed to remaining in
these tax exempt regimes for the foreseeable future.
The Group operates in a number of jurisdictions and is subject to periodic
reviews and challenges by local tax authorities on a range of tax matters
during its normal course of business. Tax impacts can be uncertain until a
conclusion is reached with the relevant tax authority or through a legal
process. The Group uses in-house expertise when assessing uncertain tax
positions and seeks the advice of external professional advisors where
appropriate. The Group believes that its tax liability accruals are adequate
for all open tax years based on its assessment of many factors, including tax
laws and prior experience.
8. PROPERTY DISPOSALS
Six months ended 30 June 2025
In April 2025, the Group completed the disposal of the majority of its
development land at Leeds Eastgate for proceeds of £26m, this was 23% above
the 31 December 2024 book value.
Taking into account selling costs, the Group recognised a total net profit on
disposal of £4.0m in the first half of the year.
Six months ended 30 June 2024
On 15 March 2024, the Group raised gross proceeds of £111m from the disposal
of its 100% interest in Union Square, Aberdeen, which was 8% below its 31
December 2023 book value. Also, in March 2024, the Group completed the sale of
the ancillary wholly owned property at O'Parinor for £6m, in line with the 31
December 2023 book value.
After reflecting selling costs, the Group recognised a total net loss on
disposal of £10.8m in the period, reflecting a loss of £11.0m in the
Reported Group and a credit of £0.2m from the Share of Joint ventures.
9. DISCONTINUED OPERATIONS AND ASSETS AND LIABILITIES CLASSIFIED AS HELD FOR
SALE
A. VALUE RETAIL DISPOSAL
On 22 July 2024, the Group announced it had entered into a binding sale
agreement for the disposal of its entire interests in Value Retail. The
disposal completed on 18 September 2024 for cash proceeds of €705m (£595m).
The Group had historically accounted for its Value Retail interests as an
associated undertaking. However, at the time of preparing the 2024 condensed
interim financial statements, the Directors concluded that at 30 June 2024,
given the significant progress made towards agreeing and signing a sale
agreement, that a sale was "highly probable" and hence the Group's interests
were judged to have met the criteria outlined in IFRS 5 to be reclassified to
being "held for sale" within current assets.
On reclassification to an asset "held for sale" at 30 June 2024, in accordance
with IFRS 5, the Group's interests which had a net asset value of £1,066.0m
were re-measured to the lower of the carrying amount and estimated fair value
less sale costs at completion. The fair value was based on the contracted sale
proceeds less estimated transaction costs, including tax, of £15m, and the
remeasurement resulted in the recognition of a £483.0m impairment loss in the
period to 30 June 2024.
In addition, the sale of Value Retail represented a separate major line of the
business and hence was treated as a discontinued operation and were separately
disclosed from the continuing segments of the business.
B. LOSS/(PROFIT) FROM DISCONTINUED OPERATIONS (VALUE RETAIL)
Six months ended Six months ended
30 June 2025 30 June 2024(1)
£m £m
Gross rental income - 80.8
Net rental income - 58.2
Administration expenses - (28.1)
Profit from operating activities - 30.1
Net revaluation losses on properties - (24.9)
Impairment recognised on reclassification to held for sale - (483.0)
Operating loss - (477.8)
Interest costs - (19.4)
Fair value losses on derivatives - (2.4)
Fair value gains on participative loans - other movement - 2.4
Fair value gains on participative loans - revaluation movement - 2.2
Net finance costs - (17.2)
Loss before tax - (495.0)
Current tax charge - (1.7)
Deferred tax credit - 4.1
Loss for the period - (492.6)
Adjustments for EPRA earnings (note 10A) - 504.3
EPRA earnings for the period - 11.7
1 Figures for the six months ended 30 June 2024 reflect the Group's
share of Value Retail's results, except the impairment recognised on
reclassification to held for sale which relates to the Reported Group. The
figures above reflect the first half of 2024 during which the Group's
investment in Value Retail was classified as an associate but on 30 June 2024
was reclassified as an asset held for sale and equity accounting ceased.
Following the completion of the disposal in September 2024, the cumulative
other comprehensive income in relation to foreign exchange and hedge reserve
movements relating to the Group's investment in Value Retail were recycled to
the consolidated income statement on completion of the disposal.
C. CASH FLOWS
Six months ended Six months ended
30 June 2025 30 June 2024
£m £m
Distributions and capital returns received from associates - 12.3
Cash inflows from investing activities - 12.3
There were no cash flows from operating or financing activities in current or
prior periods.
10. PERFORMANCE MEASURES - EARNINGS/(LOSS) AND NET ASSETS
As explained on page 11 of the Financial Review, the Group uses a number of
alternative performance measures ('APMs'), being financial measures not
specified under IFRS, to monitor the performance of the business. In
addition to the IFRS figures, we present EPRA and Headline earnings and three
EPRA net asset measures. The reconciliation of each of these measures to
IFRS is presented in the tables below.
In the prior period the Group also presented an Adjusted earnings measure.
This measure is no longer applicable following the publication by EPRA in
September 2024 of updated guidelines for the calculation of EPRA earnings.
Under the updated guidelines, the one-off items which had previously been
reconciling items between EPRA and Adjusted earnings now meet the definition
of the new "non-operating and exceptional items" category in calculating EPRA
earnings. As explained in the Financial Review in the 2024 Annual Report, the
Group has adopted the updated EPRA guidelines with effect from 1 January 2025
and restated prior period EPRA earnings such that they are the same as
previously reported Adjusted earnings. These restated items are shown in 10A
below.
A. Alternative earnings measures
Six months ended Six months ended
30 June 2025 30 June 2024
Restated(1)
£m £m
Profit/(Loss) for the period 78.9 (516.7)
Profit attributable to non-controlling interests (0.2) ‒
Profit/(Loss) for the period attributable to equity shareholders A 78.7 (516.7)
Adjustments:
Net revaluation (gains)/ losses on property portfolio (excluding Value Retail) (26.3) 47.8
(Profit)/Loss on sale of properties(2) (4.0) 10.8
Value Retail related (discontinued operations):
- Net revaluation losses - 24.9
- Deferred tax - (4.1)
- Impairment charge on reclassification to an asset held for sale(3) - 483.0
Sub-total: Adjustments for Headline earnings B (30.3) 562.4
Value Retail related (discontinued operations):
- Change in fair value of derivatives(4) - 2.4
- Change in fair value of participative loans(4) - (2.2)
- Change in fair value of financial asset - 0.3
Included in financing:
- Debt and loan facility cancellation costs 0.2 ‒
- Change in fair value of derivatives(4) (1.8) 0.6
Change in fair value of other investments(5) 0.3 (0.5)
Adjustments related to non-operating and exceptional items:
- Costs associated with pension scheme wind-up(6) - 0.5
- Business transformation costs(7) 1.1 2.7
Total: Adjustments for EPRA earnings C (30.5) 566.2
Headline earnings A+B 48.4 45.7
EPRA earnings(1) A+C 48.2 49.5
1 EPRA earnings for the six months ended 30 June 2024 restated to
exclude 'Adjustments related to non-operating and exceptional items' totalling
£3.2m in accordance with EPRA's new earnings guidelines as explained above.
These items had previously been treated as Company specific adjustments when
calculating the Group's Adjusted earnings.
2 As shown in note 2, includes gain on sale of properties of £4.0m
(HY24: £11.0m loss) and profit on sale of joint ventures and associates of
£nil (HY24: £0.2m profit). See note 8 for further details.
3 Impairment charge on reclassification of Group's interests in Value
Retail at 30 June 2024, see note 9 for details.
4 The change in fair value of derivatives and participative loans are
excluded from EPRA earnings as the gains and losses are unrealised and reflect
mark-to-market movements in the year which will unwind assuming the
instruments are held to maturity. For the six months ending 30 June 2025, the
movement above includes a loss of £0.1m (HY24: £1.0m) relating to the Share
of Joint ventures.
5 Relates to the fair value movement based on the fair value of the
underlying net assets of the Group's 7.3% investment in VIA Outlets
Zweibrücken B.V.
6 Fees incurred in the first half of 2024 associated with the Group
winding up its principal defined benefit pension scheme. This was a one-off
activity which the Directors determined did not represent the underlying
activities of the Group.
7 Business transformation costs relate to the strategic and operational
review undertaken following the change in management and which was an integral
part of the Group's strategy announced during 2021 and for the current and
prior periods related primarily to system related costs. The costs are
incremental and in the opinion of the Directors do not form part of underlying
operations. These costs have been incurred since the announcement of the
strategy but ceased with effect from 30 June 2025.
10. KEY ALTERNATIVE PERFORMANCE MEASURES
B. Net Asset measures
The Group uses the EPRA best practice guidelines incorporating three measures
of net asset value: EPRA Net Tangible Assets (NTA), Net Reinstatement Value
(NRV) and Net Disposal Value (NDV). EPRA NTA is considered to be the most
relevant measure for the Group.
A reconciliation between IFRS net assets (attributable to equity shareholders)
and the three EPRA net asset valuation metrics is set out below.
30 June 2025
Reported Share of Total
Group
Joint ventures £m
£m
£m
Equity shareholders' funds 1,847.9 - 1,847.9
Change in fair value of borrowings(1) - (3.2) (3.2)
EPRA NDV 1,844.7
Deduct change in fair value of borrowings(1) - 3.2 3.2
Deferred tax - 50% share(2) 0.2 0.1 0.3
Fair value of currency swaps as a result of interest rates(3) 1.2 - 1.2
Fair value of interest rate swaps (0.6) 1.1 0.5
EPRA NTA 1,849.9
Deferred tax - remaining 50% share(2) 0.2 - 0.2
Purchasers' costs(4) 184.4 - 184.4
EPRA NRV 2,034.5
31 December 2024
Reported Share of Total
Group
Joint ventures £m
£m
£m
Equity shareholders' funds 1,821.1 - 1,821.1
Change in fair value of borrowings(1) 22.8 (3.4) 19.4
EPRA NDV 1,840.5
Deduct change in fair value of borrowings(1) (22.8) 3.4 (19.4)
Deferred tax - 50% share(2) 0.2 0.1 0.3
Fair value of currency swaps as a result of interest rates(3) 3.0 - 3.0
Fair value of interest rate swaps 0.1 0.9 1.0
EPRA NTA 1,825.4
Deferred tax - remaining 50% share(2) 0.2 - 0.2
Purchasers' costs(4) 165.6 - 165.6
EPRA NRV 1,991.2
1 Applicable for EPRA NDV calculation only and hence the adjustment is
reversed for EPRA NTA and EPRA NRV.
2 As per the EPRA guidance we have chosen to exclude 50% of deferred tax
for EPRA NTA purposes .
3 Excludes impact of foreign exchange .
4 Represents property transfer taxes and fees payable should the Group's
property portfolio be acquired at period end market rates.
11. EARNINGS/(LOSS) PER SHARE AND NET ASSET VALUE PER SHARE
The calculations of the earnings/(loss) per share (EPS) measures set out below
are based on profit/(loss) for the period calculated on IFRS, Headline and
EPRA bases as shown in note 10A and the weighted average number of shares in
issue during the period. Headline and EPRA earnings per share and EPRA net
assets per share measures are all Alternative Performance Measures ('APMs').
See page 11 of the Financial Review for more details on the Group's approach
to APMs.
Headline EPS has been calculated in accordance with the requirements of the
Johannesburg Stock Exchange listing requirements. EPRA has issued recommended
bases for the calculation of certain per share information which includes net
asset value per share as well as EPS. As explained in note 10 and 10A, with
effect from 1 January 2025 the Group has adopted the updated EPRA earnings
guidelines which were issued in September 2024 and restated prior period EPRA
earnings (from £46.3m to £49.5m) and EPRA EPS (from 9.3p per share to 9.9p
per share, both figures adjusted for the 1 for 10 share consolidation).
Basic EPS measures are calculated by dividing the earnings attributable to the
equity shareholders of the Company by the weighted average number of shares
outstanding during the period. Diluted EPS measures are calculated on the same
basis as basic EPS but with a further adjustment to the weighted average
number of shares outstanding to assume conversion of all potentially dilutive
ordinary shares. Such potentially dilutive ordinary shares comprise share
options and awards granted to colleagues where the exercise price is less than
the average market price of the Company's ordinary shares during the period
and any unvested shares which have met, or are expected to meet, the
performance conditions at the end of the period. To the extent that there is
no dilution, this arises due to the anti-dilutive effect of all such shares,
or under IFRS if the Group records a loss for the period.
Net assets per share comprise net assets (attributable to equity shareholders)
calculated in accordance with EPRA guidelines, as set out in note 10B, divided
by the number of shares in issue at the period end.
On 30 September 2024, the Company completed a 1 for 10 share consolidation
whereby each ordinary share was subdivided into 1 ordinary share and 9
deferred shares following which the deferred shares were cancelled. As a
result the nominal value of ordinary share capital reduced by £225.1m and
this amount was transferred to the capital redemption reserve. This event
meant that the Group's previously reported per share metrics were restated as
shown below.
A. Number of ordinary shares for per share calculations
Six months ended Six months ended
30 June 2024(1)
30 June 2025
million million
Weighted average number of shares 497.6
For purposes of basic and diluted IFRS EPS and EPRA EPS(2) 487.0
Effect of potentially dilutive shares (share awards) 2.0 1.1
For purposes of diluted EPRA and Headline EPS 489.0 498.7
31 December 2024
30 June 2025
million million
Shares in issue (for purposes of net asset per share calculations) 485.4 493.2
1 Restated to reflect the 1 for 10 share consolidation as explained
above.
2 As the Group reported an IFRS loss for the six months ended 30 June
2024, dilutive shares are excluded in calculating diluted IFRS EPS .
B. Earnings/(Loss) per share
Earnings/(Loss) Earnings/(Loss) per share
Basic Diluted
Six months ended Six months ended Six months Six months ended Six months ended Six months ended
ended
30 June 2025 30 June 2024
30 June 2024(1) pence 30 June 2025 30 June 2024(1) pence
30 June 2025
£m £m
pence
pence
Continuing operations 78.7 (24.1) 16.2p (4.8)p 16.1p (4.8)p
Discontinued operations - (492.6) - (99.0)p - (99.0)p
IFRS 78.7 (516.7) 16.2p (103.8)p 16.1p (103.8)p
Headline 48.4 45.7 9.9p 9.2p 9.9p 9.2p
EPRA(2) 48.2 49.5 9.9p 9.9p 9.9p 9.9p
1 Restated to reflect the 1 for 10 share consolidation as explained
above.
2 EPRA earnings and EPS have been restated to reflect updated EPRA
earnings guidelines as explained in note 10. In the 2024 interim financial
statements these were disclosed as £46.3m and 9.3p (after adjusting for 1 for
10 share consolidation) respectively.
C. Net Asset Value per share
Net asset value Net asset value per share
30 June 2025 31 December 2024 30 June 2025 31 December 2024
£m £m £ £
EPRA NDV 1,844.7 1,840.5 3.80 3.73
EPRA NTA 1,849.9 1,825.4 3.81 3.70
EPRA NRV 2,034.5 1,991.2 4.19 4.04
12. INVESTMENT PROPERTIES
A. Valuations ‒ Movement in period
30 June 2025 31 December 2024
£m £m
At beginning of period 1,487.0 1,396.2
Net revaluation gains/(losses) 20.6 (20.6)
Transfer from investment in joint ventures(1) 157.2 140.9
Acquisitions(1) 207.1 140.1
Capital expenditure 12.9 15.1
Disposals (see note 8) (21.1) (127.8)
Exchange adjustment 41.4 (56.9)
At end of period 1,905.1 1,487.0
1 For 2025, the transfer from investment in joint ventures and
acquisitions relates to the Group's acquisition of Brent Cross and for 2024,
it relates to the acquisition of Westquay. See note 13 for further details.
Properties are stated at fair value, valued by professionally qualified
external valuers in accordance with RICS Valuation - Global Standards as
follows:
CBRE UK flagships, Developments and other properties
Jones Lang LaSalle UK flagships, French flagships, Developments and other properties
Cushman and Wakefield Brent Cross, Irish flagships, Development and other
Due to the estimation and judgement required in the valuations which are
derived from data that is not publicly available, these valuations are
classified as Level 3 in the IFRS 13 fair value hierarchy. A reconciliation of
the Group portfolio valuation to Reported Group is shown in note 3B. A listing
of the Group's properties is on page 59.
B. Valuations ‒ Sensitivity analysis
Valuation Nominal equivalent yield Estimated rental value (ERV)
Proportionally consolidated £m -100bp +100bp +10% -10%
£m £m £m £m
Flagship destinations
UK 1,113.0 178.6 (138.1) 122.2 (122.2)
France 1,000.9 279.7 (188.0) 114.8 (114.8)
Ireland 549.6 99.8 (73.8) 56.8 (56.8)
2,663.5 558.1 (399.9) 293.8 (293.8)
Developments and other 292.5 n/a n/a n/a n/a
Group portfolio 2,956.0 n/a n/a n/a n/a
C. Joint operations
Investment properties include a 50% interest in Ilac and a 50% interest in
Pavilions, where the Group's share of the combined property value at 30 June
2025 was £129.5m (31 December 2024: £120.7m). These properties are jointly
controlled in co-ownership with Irish Life Assurance plc.
13. INVESTMENT IN JOINT VENTURES
The Group has a number of investments in joint ventures which hold both
flagship destinations and development and other properties as outlined
below. As explained on page 10 of the Financial Review, for management
reporting purposes the Group evaluates the performance of the business on a
proportionally consolidated basis, by aggregating its properties or entities
which are wholly owned or its share of those in joint operations ('Reported
Group') with the Group's proportionate share of joint ventures ('Share of
Joint ventures').
The Group and its partners invest principally by way of equity investment.
However, where applicable, non-equity (loan) balances are included within
non-current other payables as a liability of the joint venture.
A. Investments at 30 June 2025
Joint venture Partner Principal property Share
United Kingdom
Bishopsgate Goodsyard Regeneration Limited Ballymore Properties The Goodsyard 50%
Bristol Alliance Limited Partnership AXA Real Estate Cabot Circus 50%
Grand Central Limited Partnership CPP Investments Grand Central 50%
The Bull Ring Limited Partnership CPP Investments Bullring 50%
The Oracle Limited Partnership ADIA The Oracle 50%
Ireland
Dundrum Retail Limited Partnership/Dundrum Car Park Limited Partnership PIMCO Dundrum 50%
Dundrum Village Limited Partnership PIMCO Dundrum Phase II 50%
B. Changes in investments
Six months ended 30 June 2025
On 9 May 2025, the Group obtained control of abrdn UK Shopping Centre Trust
('the Trust') which held the 59.4% joint venture stake in Brent Cross, London
for consideration (net of cash acquired) of £166.6m. Alongside the Group's
existing 40.6% interest, this meant the Group fully controlled Brent Cross.
From this date, the Group's joint venture investment in the Brent Cross
Partnership and the associated entities ceased to be equity accounted and was
derecognised, with the assets and liabilities consolidated in the Reported
Group. Under IFRS 3 the acquisition was treated as an asset acquisition rather
than a business combination, as the acquired entities were not deemed to be a
'business'.
Subsequent to 9 May 2025, the Group continued to acquire further units in the
Trust, for consideration (net of cash acquired) of £19.5m. In total, at 30
June 2025, the Group's holding was 95.5% for consideration (net of cash
acquired) of £186.1m, which when combined with its existing 40.6% interest
means the Group has a total economic interest in Brent Cross of 97.3%. A
non-controlling interest of £13.5m representing the 4.5% of the Trust which
the Group does not own has been recognised in the consolidated balance sheet
at 30 June 2025.
Year ended 31 December 2024
On 7 November 2024 the Group acquired the remaining 50% interest in the West
Quay Limited Partnership from its partner GIC, and ceased equity accounting
from that date. Again, as the property was the predominant asset in The West
Quay Limited Partnership, and relied on the Group for asset management
services, as per IFRS 3 the acquisition was deemed to be an asset acquisition
rather than a business combination.
C. Results
Group proportionate share Six months ended Six months ended
30 June 2025 30 June 2024
£m £m
Gross rental income 47.4 54.3
Net rental income 37.2 42.6
Administration (expenses)/income (0.2) 0.1
Profit from operating activities 37.0 42.7
Net revaluation gains/(losses) on properties 5.7 (31.0)
Operating profit 42.7 11.7
Finance income 1.2 2.8
Finance costs (4.6) (4.9)
Profit for the period - continuing operations 39.3 9.6
The results of interests in joint ventures are included up to the point of a
change in joint control, either through acquisition or disposal.
D. Net assets
Group proportionate share 30 June 2025 31 December 2024
£m
£m
Non-current assets
Investment properties 1,050.9 1,172.0
Other non-current assets 9.8 14.5
1,060.7 1,186.5
Current assets
Other current assets 13.3 22.9
Cash and cash equivalents 71.4 76.3
84.7 99.2
Current liabilities
Other payables (32.3) (39.7)
(32.3) (39.7)
Non-current liabilities
Other payables (2.2) (2.9)
Obligations under head leases (8.5) (13.7)
Loans - secured (146.6) (141.2)
(157.3) (157.8)
Net assets 955.8 1,088.2
E. Reconciliation of movements in investment in joint ventures
30 June 2025 31 December 2024
£m £m
At beginning of period 1,088.2 1,193.2
Share of results of joint ventures 39.3 8.8
Additional capital investment(1) - 85.1
Advances 0.5 6.9
Cash distributions (including interest)(2) (18.9) (37.5)
Other receivables (2.9) (12.5)
Derecognition of joint venture(3) (160.7) (142.4)
Exchange and other movements 10.3 (13.4)
At end of period 955.8 1,088.2
1 Reflects capital investment to Dundrum joint venture associated with
refinancing of secured loan signed in 2024.
2 Comprises distributions of £18.9m (2024: £28.6m) and interest of
£nil (2024: £8.9m).
3 Reflects Brent Cross acquisition in 2025 and Westquay acquisition in
2024 as explained in note 13B.
14. TRADE AND OTHER RECEIVABLES
Included in the current trade and other receivables balance of £87.7m (31
December 2024: £87.6m) are the following amounts in respect of trade (tenant)
receivables, together with the respective provisions calculated in accordance
with the expected credit loss methodology set out in IFRS 9:
Trade (tenant) receivables analysis
30 June 2025 31 December 2024
Gross trade receivables Provision Net trade receivables Gross trade receivables Provision Net trade receivables
Proportionally consolidated £m £m £m £m £m £m
UK 26.9 (5.8) 21.1 32.1 (5.6) 26.5
France 30.3 (9.1) 21.2 29.9 (9.0) 20.9
Ireland 3.3 (0.5) 2.8 5.0 (1.0) 4.0
Group portfolio 60.5 (15.4) 45.1 67.0 (15.6) 51.4
Less: Share of Joint ventures (11.6) 1.6 (10.0) (20.3) 2.3 (18.0)
Reported Group 48.9 (13.8) 35.1 46.7 (13.3) 33.4
Net trade receivables as presented do not include deposits, which are included
in trade and other payables, but taken together with VAT, do form part of the
assessment of the required provision.
15. LOANS
A. Loan profile(1)
Maturity 30 June 2025 31 December 2024 £m
£m
£338.3m 3.5% sterling bonds 2025 338.1 337.8
Total (shown in current liabilities) 338.1 337.8
Senior notes 2026 59.9 57.9
£43.2m 6% sterling bonds 2026 43.1 43.1
€700.0m 1.75% euro bonds(2) 2027 595.7 574.1
£56.8m 7.25% sterling bonds 2028 55.8 55.7
Senior notes 2028 10.9 10.5
Senior notes 2031 5.0 4.8
£400m 5.875% sterling bonds 2036 392.4 392.1
Unamortised facility fees 2027-28 (2.1) (1.8)
Total (shown in non-current liabilities) 1,160.7 1,136.4
1,498.8 1,474.2
1 All loans are unsecured.
2 The coupon is linked to two sustainability performance targets, both
of which will be tested in December 2025 against a 2019 benchmark. If the
targets are not met, a total of 37.5 basis points per annum, or €2.625m
(£2.2m) per target, will be payable in addition to the final year's coupon.
The Group has made certain assumptions which support not increasing the
effective interest rate, as a result of the possibility of failing to meet the
targets. Planned initiatives which will assist the Group in achieving the
targets include the introduction of energy efficient projects, the generation
of additional on or offsite energy and driving compliance with relevant energy
performance legislation. While the Group continues to expect to meet both
targets the additional coupon has been treated as a contingent liability.
B. Undrawn committed facilities
The Group has the following revolving credit facilities (RCF), which are in
sterling unless otherwise indicated, expiring as follows:
Expiry 30 June 2025 31 December 2024
£m £m
RCF signed June 2021(1, 2) 2026 - 39.4
RCF signed June 2021(2) 2026 - 100.0
RCF signed April 2022 2027 463.0 463.0
RCF signed April 2025(2) 2028 100.0 ‒
RCF signed April 2025(2) 2028 50.0 ‒
Total(2) 613.0 602.4
1 RCF facility denominated in JPY
2 In April 2025, the two RCFs expiring in 2026 were cancelled and
replaced with two new three year RCFs expiring in 2028, with each containing
two one-year extension options.
16. FINANCIAL INSTRUMENTS AND RISK MANAGEMENT
A. Financial risk management and strategy
The Group's financial risk management strategy seeks to set financial limits
for treasury activity to ensure they are in line with the risk appetite of the
Group. The Group's activities expose it to certain financial risks comprising
liquidity risk, market risk (comprising interest rate and foreign currency
risk), credit risk and capital risk.
The Group's treasury function, which operates under treasury policies approved
by the Board, maintains internal guidelines for interest cover, gearing,
unencumbered assets and other credit ratios and both the current and projected
financial position against these guidelines are monitored regularly.
To manage the risks set out above, the Group uses certain derivative financial
instruments to mitigate potentially adverse effects on the Group's financial
performance. Derivative financial instruments are used to manage exposure to
fluctuations in foreign currency exchange rates and interest rates but are not
employed for speculative purposes.
B. Financial instruments held at fair value
Definitions
The Group's financial instruments are categorised by level of fair value
hierarchy prescribed by accounting standards. The different levels are defined
as follows:
· Level 1: quoted prices (unadjusted) in active markets for identical
assets or liabilities.
· Level 2: inputs other than quoted prices included within Level 1 that
are observable for the asset or liability, either directly (actual prices) or
indirectly (derived from actual prices).
· Level 3: inputs for the asset or liability that are not based on
observable market data (from unobservable inputs).
Fair value valuation technique
Financial instrument Valuation technique for determining fair value
Bonds Quoted market prices
Senior notes Present value of cash flows discounted using prevailing market interest rates
Bank loans and overdrafts Present value of cash flows discounted using prevailing market interest rates
Fair value of currency swaps and interest rate swaps Present value of cash flows discounted using prevailing market interest rates
Other investments Underlying net asset values of the investments
Fair value hierarchy analysis
30 June 2025 31 December 2024
Hierarchy Carrying amount Fair value £m Carrying amount Fair value £m
£m £m
Bonds Level 1 1,425.1 1,424.7 1,402.8 1,380.2
Senior notes Level 2 75.8 74.1 73.2 71.2
Unamortised facility fees Level 2 (2.1) - (1.8) -
Fair value of currency swaps Level 2 4.0 4.0 (2.2) (2.2)
Borrowings 1,502.8 1,502.8 1,472.0 1,449.2
Fair value of interest rate swaps Level 2 0.6 0.6 0.1 0.1
Fair value of other investments Level 3 8.8 8.8 9.2 9.2
17. DIVIDENDS
The Directors have declared an interim dividend of 7.94 pence per share. The
dividend is payable on 16 October 2025 to shareholders on the register at the
close of business on 5 September 2025 and represents a 5% increase to the 2024
interim dividend of 7.56 pence per share. The dividend will be paid entirely
as a cash PID, net of withholding tax where appropriate.
Cash Six months ended 30 June 2025 Six months ended 30 June 2024
dividend per share £m £m
Prior period dividends
2023 final dividend 7.80p - 39.0
2024 final dividend 8.07p 39.6 -
Cash flow analysis:
Dividends paid(1) 39.6 39.0
Withholding tax - 2023 interim dividend - 6.0
39.6 45.0
1 Comprises cash payments after deduction of withholding tax, where
applicable.
18. OTHER RESERVES
30 June 2025 31 December 2024 £m
£m
Translation reserve 382.5 328.1
Net investment hedge reserve (283.1) (236.3)
99.4 91.8
19. NOTES TO THE CASH FLOW STATEMENT
A. Analysis of items included in operating cash flows
Six months ended 30 June 2025 Six months ended 30 June 2024
£m £m
Net movements in working capital and restricted monetary assets
Movements in working capital:
- Decrease in receivables 6.6 1.4
- Increase/(Decrease) in payables 9.7 (20.9)
16.3 (19.5)
Decrease in restricted monetary assets - 2.2
Total - continuing operations 16.3 (17.3)
Non-cash items
Increase in accrued rents receivable (1.1) (1.4)
Decrease in loss allowance provisions(1) 1.9 1.6
Amortisation of lease incentives and other costs 0.2 0.3
Depreciation 0.6 0.8
Other non-cash items including share-based payment charge 0.7 1.7
2.3 3.0
1 Comprises movement in provisions against trade (tenant) receivables
and unamortised tenant incentives.
B. Analysis of movements in net debt
30 June 2025 31 December 2024
Cash and cash equivalents £m Borrowings £m Net debt Cash and cash equivalents Borrowings Net debt
£m £m £m £m
At 1 January 737.9 (1,472.0) (734.1) 472.3 (1,635.9) (1,163.6)
Cash flow (184.3) 5.6 (178.7) 267.7 104.9 372.6
Change in fair value of currency swaps - 1.7 1.7 - (2.1) (2.1)
Exchange and other non-cash movements 0.8 (38.1) (37.3) (2.1) 61.1 59.0
At end of period 554.4 (1,502.8) (948.4) 737.9 (1,472.0) (734.1)
20. CONTINGENT LIABILITIES AND COMMITMENTS
A. Contingent liabilities
30 June 2025 31 December 2024
£m £m
Reported Group:
- guarantees given 0.1 3.7
- claims arising in the normal course of business 16.0 15.7
16.1 19.4
Share of Joint ventures - claims arising in the normal course of business 9.3 5.8
Total - proportionally consolidated 25.4 25.2
In addition, the Group operates in a number of jurisdictions and is subject to
periodic challenges by local tax authorities on a range of tax matters during
the normal course of business. The tax impact can be uncertain until a
conclusion is reached with the relevant tax authority or through a legal
process. The Group addresses this by closely monitoring these potential
instances, seeking independent advice and maintaining transparency with the
authorities it deals with as and when any enquiries are made. As a result, the
Group has identified a potential tax exposure attributable to the ongoing
applicability of tax treatments adopted in respect of certain tax structures
within the Group, and is in correspondence with the relevant authorities. The
range of potential outcomes is a possible outflow of minimum £nil and maximum
£139m (31 December 2024: minimum £nil and maximum £131m). The Directors
have not provided for this amount because they do not believe an outflow is
probable.
B. Capital commitments on investment properties
30 June 2025 31 December 2024
£m £m
Reported Group 4.6 1.9
Share of Joint ventures 44.2 43.8
Total - proportionally consolidated 48.8 45.7
21. NON-CONTROLLING INTERESTS
As explained in note 13B, during the first half of 2025, the Group acquired
95.5% of the units in abrdn UK Shopping Centre Trust ('the Trust'), which had
a 59.4% joint venture interest in Brent Cross. The Group gained control of
Brent Cross with effect from 9 May 2025, equity accounting ceased and the
Group's investment in Brent Cross was consolidated. At 30 June 2025, the
remaining 4.5% of the Trust is owned by a number of third-party investors and
has been accounted for as a non-controlling interest. When combined with the
Group's existing 40.6% investment, at 30 June 2025, the Group has an overall
economic interest in Brent Cross of 97.3%.
During the first half of 2025, the share of profit attributable to
non-controlling interests was £0.2m, principally reflecting the share of net
rental income from Brent Cross. At 30 June 2025, the share of net assets
attributable to non-controlling interests was £13.5m, principally reflecting
the share of the Brent Cross investment property. The balances and movements
during the period associated with the non-controlling interest are shown on
the Consolidated Statement of Changes in Equity.
22. POST BALANCE SHEET EVENTS
On 30 July 2025, the Group exchanged contracts to acquire the 50% of Bullring
and Grand Central owned by its JV partner for cash consideration of £319m to
be funded through the suspension of the share buyback programme, existing cash
resources and an equity placing of up to 10% of total outstanding shares.
This represents a 4% discount to 30 June 2025 book value and additional
annualised net rental income of c.£22m.
ADDITIONAL INFORMATION
Unaudited - not part of condensed consolidated interim financial statements
Table Table
Summary EPRA performance measures 1 Financial analysis
Net debt 12
Portfolio analysis Movement in net debt 13
Rental income 2 Net debt:EBITDA 14
Gross rental income 3 Interest cover 15
Net rental income 4 Gearing 16
Other rental data 5 Loan to value 17
Vacancy 6 EPRA loan to value 18
Lease expires and breaks 7 Unencumbered asset ratio 19
Top ten occupiers 8
Valuation analysis 9 Other key metrics
Capital expenditure (including acquisitions) 10 Cost ratio 20
Net initial yield 11 Total accounting return 21
Hammerson is a member of the European Public Real Estate Association (EPRA)
and has representatives who actively participate in a number of EPRA
committees and initiatives. This includes working with peer group companies,
real estate investors and analysts and the large audit firms, to improve the
transparency, comparability and relevance of the published results of listed
real estate companies in Europe.
As with other real estate companies, we have adopted the EPRA Best Practice
Recommendations ('EPRA BPR') and were again awarded a Gold Award for
compliance with the EPRA BPR for our 2023 Annual Report. Further information
on EPRA and the EPRA BPR can be found on their website www.epra.com. Details
of our key EPRA metrics are shown in Table 1.
Summary EPRA performance measures
Table 1
Note /Table(1)
Performance measure Six months ended Six months ended
30 June 2024
30 June 2025
Earnings(2) 10A £48.2m £49.5m
Earnings per share (EPS)(2 3) 11B 9.9p 9.9p
Cost ratio (including vacancy costs) Table 20 38.3% 41.1%
30 June 2025 31 December 2024
Net disposal value (NDV) per share 11C £3.80 £3.73
Net tangible assets value (NTA) per share 11C £3.81 £3.70
Net reinstatement value (NRV) per share 11C £4.19 £4.04
Net initial yield (NIY) Table 11 6.0% 5.9%
Topped-up net initial yield Table 11 6.2% 6.2%
Vacancy rate ‒ Flagship destinations Table 6 5.4% 4.9%
Vacancy rate ‒ Group Table 6 5.6% 5.3%
Loan to value Table 18 37.6% 31.9%
1 Note references are to notes in the interim financial statements and
Table references are to tables in the Additional Information section.
2 EPRA earnings and EPS for the six months ended 30 June 2024 have been
restated to reflect the inclusion of 'non-operating and exceptional items' as
per the updated EPRA earnings guidelines published in September 2024. The
restatement means previously reported EPRA earnings are the same as the
Group's previously published Adjusted earnings, and hence the latter measure
will no longer be used. See page 11 of the Financial Review and notes 2 and
10A to the interim financial statements for further details.
3 2024 per share figures have been restated to reflect the 1 for 10
share consolidation undertaken in September 2024.
PORTFOLIO ANALYSIS
The information presented in this section is on a management reporting basis
i.e. proportionally consolidated.
Where applicable, the information presented within the 'Development and other'
segment only reflects available data in relation to the investment properties
within this segment. See the Key Properties section for the principal
properties in this segment.
Rental income
Table 2
Proportionally consolidated Reported Share of Joint ventures Six months ended Reported Share of Joint ventures Six months ended
30 June 2024
Group £m 30 June 2025 Group £m
£m
£m
£m £m
Base rent 42.6 32.9 75.5 31.7 38.4 70.1
Turnover rent 3.1 3.0 6.1 1.1 4.4 5.5
Car park income 6.7 6.5 13.2 4.5 7.7 12.2
Commercialisation income 1.4 1.8 3.2 1.0 2.1 3.1
Surrender premiums 2.0 0.7 2.7 0.1 1.6 1.7
Lease incentive recognition 1.1 2.0 3.1 1.4 (0.2) 1.2
Other rental income 0.3 0.5 0.8 0.3 0.3 0.6
Gross rental income 57.2 47.4 104.6 40.1 54.3 94.4
Net service charge expense (1.7) (0.4) (2.1) (2.2) (1.5) (3.7)
Ground rents payable (0.8) (0.1) (0.9) (0.5) (0.3) (0.8)
Inclusive lease costs recovered through rent (1.8) (1.7) (3.5) (0.7) (1.4) (2.1)
Car park costs (1.8) (2.2) (4.0) (0.1) (2.6) (2.7)
Other property outgoings (8.4) (5.8) (14.2) (6.5) (5.9) (12.4)
Cost of sales (12.8) (9.8) (22.6) (7.8) (10.2) (18.0)
Net rental income 42.7 37.2 79.9 30.1 42.6 72.7
Gross rental income
Table 3
Six months ended 30 June 2025
Proportionally consolidated Properties Change in Disposals Acquisitions Developments Total
owned throughout 2024/25
like-for-like GRI
£m
£m
and other
%
£m £m
£m
UK 39.4 8.6 0.1 11.5 - 51.0
France 27.5 4.1 - - - 27.5
Ireland 18.8 (2.1) - - - 18.8
Flagship destinations 85.7 4.6 0.1 11.5 - 97.3
Developments and other - n/a - - 7.3 7.3
Group portfolio 85.7 4.6 0.1 11.5 7.3 104.6
Six months ended 30 June 2024
Proportionally consolidated Properties Exchange Disposals Acquisitions Developments Total
owned throughout 2024/25
£m
£m
and other
£m
£m £m
£m
UK 36.3 - 3.1 - - 39.4
France 26.5 0.4 0.1 - - 27.0
Ireland 19.2 0.3 - - - 19.5
Flagship destinations 82.0 0.7 3.2 - - 85.9
Developments and other - - - - 8.5 8.5
Group portfolio 82.0 0.7 3.2 - 8.5 94.4
Net rental income
Table 4
Six months ended 30 June 2025
Proportionally consolidated Properties Change in Disposals Acquisitions Developments Total
owned throughout 2024/25
like-for-like NRI
£m
£m
and other
%
£m £m
£m
UK 30.1 8.4 0.1 9.1 - 39.3
France 21.8 3.0 - - - 21.8
Ireland 16.5 (2.0) - - (0.3) 16.2
Flagship destinations 68.4 4.0 0.1 9.1 (0.3) 77.3
Developments and other - n/a - - 2.6 2.6
Group portfolio 68.4 4.0 0.1 9.1 2.3 79.9
Six months ended 30 June 2024
Proportionally consolidated Properties Exchange Disposals Acquisitions Developments Total
owned throughout 2024/25
£m
£m
and other
£m
£m £m
£m
UK 27.7 - 2.7 - - 30.4
France 21.2 0.3 0.1 - - 21.6
Ireland 16.9 0.2 - - - 17.1
Flagship destinations 65.8 0.5 2.8 - - 69.1
Developments and other - - - - 3.6 3.6
Group portfolio 65.8 0.5 2.8 - 3.6 72.7
The portfolio value on which like-for-like growth is based was £2,477m at 30
June 2025.
Other rental data
Table 5
Six months ended 30 June 2025 At 30 June 2025
Proportionally consolidated Gross rental Net rental Average Passing Estimated rental value(4) Passing rent for reversion(5) Reversion/
income
income
passing
rent(3) ( )
£m
£m
(over-rented)(6)
£m
£m Vacancy
rent(2)
£m
%
rate(1)
£/m(2)
%
UK 51.0 39.3 5.3 435 106.6 101.2 94.7 6.8
France 27.5 21.8 7.8 490 54.9 61.6 56.2 9.7
Ireland 18.8 16.2 1.8 465 38.3 40.0 36.6 9.1
Flagship destinations 97.3 77.3 5.4 455 199.8 202.8 187.5 8.1
Developments and other 7.3 2.6 11.8 280 6.3 6.8 6.5 5.0
Group portfolio 104.6 79.9 5.6 440 206.1 209.6 194.0 8.0
Six months ended 30 June 2024 At 31 December 2024
UK 39.4 30.4 4.3 420 85.7 83.0 78.8 5.4
France 27.0 21.6 6.8 455 51.8 58.9 53.0 11.1
Ireland 19.5 17.1 2.7 470 36.6 37.7 34.9 8.0
Flagship destinations 85.9 69.1 4.9 440 174.1 179.6 166.7 7.8
Developments and other 8.5 3.6 13.1 185 8.3 9.4 8.8 7.2
Group portfolio 94.4 72.7 5.3 405 182.4 189.0 175.5 7.7
1 See Table 6 for analysis of vacancy.
2 Average passing rent at the period end before deducting head rents and
excluding passing rent from anchor units, car parks and commercialisation.
3 Passing rent is the annual rental income receivable at the period end
from an investment property, after any rent-free periods and after deducting
head rents and car parking and commercialisation running costs totalling
£15.5m (2024: £13.9m).
4 The estimated rental value (ERV) at the period end calculated by the
Group's valuers and included within the unobservable inputs to the portfolio
valuations as defined by IFRS 13. At 30 June 2025, includes ERV for vacant
space of £10.6m (2024: £8.9m) as per Table 6 and ERV for space undergoing
reconfiguration of £2.8m - UK £1.9m, Ireland £0.9m (2024: £2.7m - UK
£1.9m, Ireland £0.8m).
5 To provide a better comparison to ERV, which the valuers provide on a
net effective basis, passing rent for reversion is passing rent adjusted for
tenant incentives and inclusive costs. For this reporting period it also
excludes variable income based on occupier sales in excess of base rent, and
31 December 2024 figures and the associated reversion have been restated
accordingly.
6 The reversion/(over-rented) figures show a direct comparison between
the valuers' ERV and passing rent for reversion, with both sets of figures
being on a net effective basis. The reversion/(over-rented) figures therefore
show the future change in the Group's rental income from the settlement of
review rents or a combination of letting:
- units at prevailing ERVs at the next lease event i.e. break or expiry (see
Table 7)
- vacant units (see Table 6)
- units undergoing reconfiguration (see note 4 above).
Vacancy
Table 6
30 June 2025 31 December 2024
Proportionally consolidated ERV of vacant space Total ERV for vacancy(1) Vacancy ERV of vacant space Total ERV for vacancy(1) Vacancy
£m
£m
rate
£m
£m
rate
%
%
UK 4.5 85.8 5.3 2.9 67.5 4.3
France 4.8 60.7 7.8 4.0 58.2 6.8
Ireland 0.6 35.2 1.8 0.9 33.0 2.7
Flagship destinations 9.9 181.7 5.4 7.8 158.7 4.9
Developments and other 0.7 5.9 11.8 1.1 8.5 13.1
Group portfolio 10.6 187.6 5.6 8.9 167.2 5.3
1 Total ERV for vacancy shown above differs from Table 5 due to the
exclusion of car park ERV and head rents payable which distort the vacancy
metric.
Lease expiries and breaks at 30 June 2025
Table 7
Rental income based on passing rent of ERV of leases that expire/break in Weighted average unexpired
leases that expire/break in
lease term
Proportionally consolidated Holding over 2025 2026 2027 Total Holding over 2025 2026 2027 Total to break years to expiry years
£m
£m
£m
£m
£m
£m
£m
£m
£m
£m
UK 3.6 5.7 13.5 12.9 35.7 4.4 6.6 14.2 13.0 38.2 4.9 6.4
France 2.5 2.0 1.4 1.3 7.2 2.5 2.1 1.5 1.4 7.5 2.5 6.2
Ireland 3.6 0.4 1.5 1.3 6.8 5.8 0.5 1.7 1.3 9.3 4.6 5.6
Flagship destinations 9.7 8.1 16.4 15.5 49.7 12.7 9.2 17.4 15.7 55.0 4.1 6.2
Developments and other 0.2 2.0 0.7 0.5 3.4 0.4 2.2 0.7 0.5 3.8 3.4 4.9
Group portfolio 9.9 10.1 17.1 16.0 53.1 13.1 11.4 18.1 16.2 58.8 4.1 6.2
The table above compares passing rent (as per Table 5) on a headline basis for
those units with leases expiring, or subject to an occupier break, in each
year compared to the ERV of those units determined by the Group's valuers on a
net effective basis (as per Table 5). For France, the analysis is based on the
date of lease expiry.
Top ten occupiers at 30 June 2025 (ranked by passing rent)
Table 8
Proportionally consolidated Passing rent % of total
£m
passing rent
Inditex 13.4 6.5
JD Sports 5.0 2.4
H&M 4.0 1.9
Marks & Spencer 4.0 1.9
Next 3.3 1.6
Watches of Switzerland 3.0 1.5
CK Hutchison (Superdrug) 3.0 1.5
Boots 2.5 1.2
Footlocker 2.4 1.2
Apple 2.1 1.0
42.7 20.7
Valuation analysis
Table 9
30 June 2025
Proportionally consolidated Properties Net revaluation gains/(losses) in the period Income Capital Total Net initial Nominal
at valuation £m return return return yield equivalent
£m % % % % yield(1)
%
UK 1,113.1 19.7 4.0 2.0 6.1 7.3 7.9
France 1,000.9 (1.9) 2.2 (0.2) 2.0 4.3 5.1
Ireland 549.5 7.4 3.1 1.4 4.6 6.4 6.7
Flagship destinations 2,663.5 25.2 3.1 1.0 4.2 6.0 6.6
Developments and other 292.5 1.1 0.8 1.9 2.8 8.9 9.3
Group portfolio 2,956.0 26.3 2.9 1.1 4.0 6.0 6.6
31 December 2024
Proportionally consolidated Properties Net revaluation gains/(losses) Income Capital Total Net initial Nominal
at valuation in the year return return return yield equivalent
£m £m % % % % yield(1)
%
UK 915.3 16.8 7.9 0.8 8.7 7.2 7.8
France 964.1 4.5 4.5 0.5 5.1 4.3 5.1
Ireland 522.0 (82.6) 6.0 (13.4) (8.1) 6.2 6.7
Flagship destinations 2,401.4 (61.3) 6.0 (3.0) 2.9 5.9 6.5
Developments and other 257.6 (30.1) 2.9 (7.0) (4.3) 8.7 9.7
Group portfolio 2,659.0 (91.4) 5.7 (3.4) 2.1 5.9 6.6
1 Nominal equivalent yields are included within the unobservable inputs
to the portfolio valuations as defined by IFRS 13. The nominal equivalent
yield for the Reported Group was 6.2% (31 December 2024: 5.9%).
Capital expenditure
Table 10
Six months ended 30 June 2025 Six months ended 30 June 2024
Proportionally consolidated Note Reported Share of Proportionally Reported Share of Proportionally
Group
Joint ventures
consolidated
Group
Joint ventures
consolidated
£m
£m
£m
£m
£m
£m
Acquisitions 207 - 207 - - -
Developments 4 7 11 1 2 3
Capital expenditure - creating area - - - - - -
Capital expenditure - no additional area 7 7 14 5 3 8
Occupier incentives 2 1 3 2 3 5
Capital expenditure 3B 13 15 28 8 8 16
Total 220 15 235 8 8 16
Less non-controlling interests relating to acquisitions (14) - (14) - - -
Conversion from accruals to cash basis (9) (1) (10) - 4 4
Total on cash basis 197 14 211 8 12 20
Net initial yield
Table 11
Proportionally consolidated Note/ 30 June 2025 31 December 2024
£m
Table £m
Reported Group (wholly owned and joint operations) 3B 1,905.1 1,487.0
Share of Joint ventures 3B 1,050.9 1,172.0
Group portfolio valuation 3B 2,956.0 2,659.0
Less: Developments(1) (251.2) (188.4)
Completed investment portfolio 2,704.8 2,470.6
Purchasers' costs(2) 179.7 161.5
Grossed up completed investment portfolio A 2,884.5 2,632.1
Annualised cash passing rental income 203.5 179.3
Non-recoverable costs (26.1) (18.6)
Rents payable (3.7) (4.4)
Annualised net rent B 173.7 156.3
Add:
Notional rent on expiration of rent-free periods and other lease incentives(3) 5.0 5.5
Future rent on signed leases 1.3 2.0
Topped-up annualised net rent C 180.0 163.8
Add back: Non-recoverable costs 26.1 18.6
Passing rent Table 5 206.1 182.4
EPRA Net initial yield B/A Table 9 6.0% 5.9%
EPRA 'Topped-up' net initial yield C/A 6.2% 6.2%
1 Included within the Developments and other portfolio.
2 Purchasers' costs equate to 6.6% (31 December 2024: 6.5%) of the value
of the completed investment portfolio.
3 Weighted average remaining rent-free period is 0.5 years (31 December
2024: 0.4 years).
FINANCING ANALYSIS
Net debt
Table 12
30 June 2025 31 December 2024
Proportionally consolidated Reported Share of Total Reported Share of Total
Group
Joint ventures
£m
Group
Joint ventures
£m
£m
£m
£m
£m
Cash and cash equivalents ( ) ( ) 554.4 71.4 625.8 737.9 76.3 814.2
Loans (1,498.8) (146.6) (1,645.4) (1,474.2) (141.2) (1,615.4)
Fair value of currency swaps (4.0) - (4.0) 2.2 - 2.2
Net debt (948.4) (75.2) (1,023.6) (734.1) (64.9) (799.0)
Movement in net debt
Table 13
Proportionally consolidated, including discontinued operations Six months ended Year ended Six months ended
30 June 2025 31 December 2024 30 June 2024
£m
£m
£m
Opening net debt (799.0) (1,326.3) (1,326.3)
Profit from operating activities 61.8 108.6 53.9
Decrease/(Increase) in receivables and restricted monetary assets 14.9 (12.6) (1.6)
Increase/(Decrease) in payables 2.1 4.2 (15.0)
Adjustment for non-cash items 3.1 2.1 3.4
Cash generated from operations 81.9 102.3 40.7
Interest received 22.3 53.6 23.5
Interest paid (26.9) (93.0) (57.9)
Distributions from Value Retail - 19.4 12.3
Tax (paid)/received (1.3) 0.1 ‒
Cash flows from operating activities 76.0 82.4 18.6
Property acquisitions, net of cash acquired(1) (186.1) (140.8) ‒
Capital expenditure (24.7) (47.0) (20.1)
Distribution from other investment - 1.1 ‒
Sale of Value Retail - 583.6 ‒
Sale of properties 24.5 117.4 116.3
Cash flows from investing activities (186.3) 514.3 96.2
Premium on redemption of bonds - (25.5) -
Purchase of own shares - (3.4) (3.4)
Shares buyback programme (22.1) (20.9) -
Equity dividends paid (39.6) (82.6) (44.9)
Cash flows from financing activities (61.7) (132.4) (48.3)
Exchange translation movement (52.6) 63.0 39.8
Closing net debt (1,023.6) (799.0) (1,220.0)
1 For six months ended 30 June 2025, property acquisitions relates to
the acquisition of Brent Cross, for the year ended 31 December 2024 it relates
to Westquay. See note 13B for further details.
Net debt:EBITDA
Table 14
Proportionally consolidated, including discontinued operations Note/ 30 June 2025 31 December 2024
£m
£m
Table
Net debt A Table 12 1,023.6 799.0
Operating profit (calculated on EPRA earnings basis) 2 128.4 133.8
Amortisation of tenant incentives and other items within net rental income (3.2) (2.6)
Share-based remuneration 4.6 4.3
Depreciation 1.2 1.4
EBITDA ‒ rolling 12 month basis B 131.0 136.9
Net debt:EBITDA A/B 7.8x 5.8x
Interest cover
Table 15
Note/ Six months ended Year ended
Proportionally consolidated Table 30 June 2025 31 December 2024
£m
£m
Net rental income A 2 79.9 146.0
Net finance costs 2 14.3 32.3
Less interest on lease obligations and pensions (1.6) (3.3)
B 12.7 29.0
Interest cover A/B 6.29x 5.03x
Gearing
Table 16
Proportionally consolidated Note/ 30 June 2025 31 December 2024
£m
£m
Table
Net debt Table 12 1,023.6 799.0
Unamortised borrowing costs -- 17.8 19.1
Net debt for gearing A 1,041.4 818.1
Equity shareholders' funds - 'Consolidated net tangible worth' B 1,847.9 1,821.1
Gearing A/B 56.4% 44.9%
Loan to value
Table 17
Proportionally consolidated Note/ 30 June 2025 31 December 2024
£m
£m
Table
Net debt - 'Loan' A Table 12 1,023.6 799.0
Group property portfolio valuation 3B 2,956.0 2,659.0
Less non-controlling interests ‒ share of Brent Cross 21 (10.3) ‒
'Value' B 2,945.7 2,659.0
Loan to value A/B 34.7% 30.0%
Net payables C 79.4 48.0
Non-controlling interests ‒ share of cash D 21 3.5 ‒
EPRA Loan to value (A+C+D)/(B) Table 18 37.6% 31.9%
EPRA Loan to value
Table 18
30 June 2025
Proportionally consolidated Reported Share of Share of associates Non-controlling interests Total
Group
Joint ventures
£m
£m
£m £m £m
Include: ( ) ( )
Loans ( ) ( ) 1,498.8 146.6 - - 1,645.4
Foreign currency derivatives 4.0 - - - 4.0
Net payables(1) 59.9 19.8 - (0.3) 79.4
Exclude:
Cash and cash equivalents (554.4) (71.4) - 3.5 (622.3)
'Loan' A 1,008.3 95.0 - 3.2 1,106.5
Include:
Investment properties at fair value 1,905.1 1,050.9 - (10.3) 2,945.7
'Value' B 1,905.1 1,050.9 - (10.3) 2,945.7
EPRA Loan to value A/B 37.6%
31 December 2024
Proportionally consolidated Reported Share of Share of associates Non-controlling interests Total
Group
Joint ventures
£m
£m
£m £m £m
Include: ( ) ( )
Loans ( ) ( ) 1,474.2 141.2 - - 1,615.4
Foreign currency derivatives (2.2) - - - (2.2)
Net payables(1) 29.2 18.8 - - 48.0
Exclude:
Cash and cash equivalents (737.9) (76.3) - - (814.2)
'Loan' A 763.3 83.7 - - 847.0
Include:
Investment properties at fair value 1,487.0 1,172.0 - - 2,659.0
'Value' B 1,487.0 1,172.0 - - 2,659.0
EPRA Loan to value A/B 31.9%
Rows with zero balances have intentionally been excluded from the EPRA
specified format in the above table.
1 Net payables includes the following balance sheet accounts for both
current and non-current balances: interests in leasehold properties,
right-of-use assets, trade and other receivables, restricted monetary assets,
trade and other payables, obligations under head leases, tax (excluding
deferred tax) and the fair value of interest rate swaps.
Unencumbered asset ratio
Table 19
Proportionally consolidated Note/ 30 June 2025 31 December 2024
£m
£m
Table
Group property portfolio valuation 3B 2,956.0 2,659.0
Less encumbered assets(1) (432.2) (406.0)
Total unencumbered assets A 2,523.8 2,253.0
Net debt Table 12 1,023.6 799.0
Adjustments: 17.8 19.1
‒ Unamortised borrowing costs
‒ Cash held within investments in encumbered entities(1) 18.8 24.6
‒ Encumbered loans(1) (149.8) (144.6)
Total unsecured debt B 910.4 698.1
Unencumbered asset ratio A/B 2.77x 3.23x
1 At 30 June 2025 and 31 December 2024 encumbered assets, cash and debt
relate to Dundrum.
OTHER KEY METRICS
Cost ratio
Table 20
Proportionally consolidated Six months ended Six months ended
30 June 2025 30 June 2024
£m
£m
Gross administration costs, excluding business transformation costs 22.0 21.5
Business transformation costs (see note 10A) A 1.1 2.7
Gross administration costs 23.1 24.2
Property fee income (3.0) (2.9)
Management fees receivable (2.0) (2.5)
Property outgoings 23.8 20.9
Less inclusive lease costs recovered through rent (3.5) (2.1)
Total operating costs for cost ratio B 38.4 37.6
Less vacancy costs (3.7) (5.8)
Total operating costs excluding vacancy costs for cost ratio C 34.7 31.8
Gross rental income 104.6 94.4
Ground rents payable (0.9) (0.8)
Less inclusive lease costs recovered through rent (3.5) (2.1)
Gross rental income for cost ratio D 100.2 91.5
Cost ratio including vacancy costs (excluding business transformation costs) (B-A)/D 37.2% 38.1%
EPRA Cost ratio including vacancy costs B/D 38.3% 41.1%
EPRA Cost ratio excluding vacancy costs C/D 34.6% 34.8%
The Group's business model for developments is to use a combination of
in-house resource and external advisors. The cost of external advisors is
capitalised to the cost of developments. The cost of employees working on
developments is generally expensed, but for wholly owned properties is
capitalised subject to meeting certain criteria related to the degree of time
spent on specific projects. Employee costs of £0.2m (HY24: £0.2m) were
capitalised as development costs in the period and are not included within
'Gross administration costs' above.
Accounting return
Table 21
30 June 2025 31 December 2024
NTA NTA per share NTA NTA per share(1)
£m £ £m £
EPRA NTA at 1 January A 1,825.4 3.70 2,542.0 5.08
EPRA NTA at period end 1,849.9 3.81 1,825.4 3.70
Movement in NTA(2) 24.5 0.11 (716.6) (1.38)
Dividends in the period 39.6 0.08 76.6 0.15
B 64.1 0.19 (640.0) (1.23)
Total accounting return B/A 5.1% (24.2)%
1 1 January 2024 NTA per share metrics have been restated to reflect the
1 for 10 share consolidation undertaken in September 2024.
2 Movement in NTA on a per share basis includes the accreditive impact
of the Group's share buyback programme
KEY PROPERTIES
Unaudited - not part of condensed consolidated interim financial statements
Key property listing at 30 June 2025
Passing rent
Location Accounting classification where not wholly owned Ownership interest Net lettable area, m(2) No. of tenants 31 December 2024(1)
30 June 2025 £m
£m
Flagship destinations
UK
Brent Cross London 97% 105,500 117 30.8 12.8
Bullring(2) Birmingham Joint venture 50% 122,400 148 25.4 25.2
Cabot Circus(3) Bristol Joint venture 50% 106,000 102 11.6 10.9
The Oracle Reading Joint venture 50% 59,500 101 11.4 10.0
Westquay Southampton Joint venture 100% 94,400 107 27.4 26.8
487,800 575 106.6 85.7
France
Les 3 Fontaines(4) Cergy 100% 70,800 171 24.3 22.7
Les Terrasses du Port Marseille 100% 62,800 160 30.6 29.1
133,600 331 54.9 51.8
Ireland
Dundrum Dublin Joint venture 50% 128,800 173 27.4 26.2
Ilac Dublin Joint operation 50% 28,200 54 3.3 3.3
Pavilions Swords Joint operation 50% 44,400 84 7.6 7.1
201,400 311 38.3 36.6
Total flagships 822,800 1,217 199.8 174.1
Developments and other properties
Bristol Broadmead(3) Bristol Joint venture 50% 33,700 67 2.7 2.4
Dublin Central(5) Dublin 100% n/a n/a n/a n/a
Dundrum Phase II(5) Dublin Joint venture 50% n/a n/a n/a n/a
Grand Central(2) Birmingham Joint venture 50% 42,200 54 3.6 4.1
Eastgate(5) Leeds 100% n/a n/a n/a n/a
Martineau Galleries(2 5) Birmingham 100% n/a n/a n/a 1.8
Pavilions land(5) Swords 100% n/a n/a n/a n/a
The Goodsyard(5) London Joint venture 50% n/a n/a n/a n/a
1 31 December 2024 passing rent reflects Brent Cross ownership at 40.6%
and 2024 year end exchange rate of £1:€1.21.
2 Collectively known as the Birmingham Estate.
3 Collectively known as the Bristol Estate.
4 Includes areas held under co-ownership, figures above reflect
Hammerson's ownership interests only.
5 Reclassified as development property in 2025.
Glossary
2024 share consolidation The 10:1 share consolidation and re-designation of the Company's ordinary
shares that took effect on 30 September 2024, further information on which
was set out in the Company's Circular to Shareholders and Notice of Meeting
dated 8 August 2024.
AUM (Assets under management) The 100% value of the Group's properties under management.
Average cost of debt or weighted average interest rate (WAIR) The cost of finance expressed as a percentage of the weighted average debt
(can be calculated on both a net and gross debt basis) during the period.
Borrowings The aggregate of loans and the fair value of currency swaps but excluding the
fair value of the interest rate swaps, as this crystallises over the life of
the instruments rather than at maturity.
Capital return The change in property value during the period after taking account of capital
expenditure, calculated on a monthly time-weighted and constant currency
basis.
Contracted rent The total cash rent due on the period to the earliest occupier break date,
plus any break penalties.
Corporate Power Purchase Agreement (CPPA) A long-term contract to buy electricity directly from a renewable energy
generator, like a wind or solar farm, rather than through a traditional
electricity supplier. This arrangement provides benefits to both the
corporate buyer and the generator, helping to finance new renewable energy
projects and offering price certainty for the buyer.
EBITDA Earnings before interest, tax, depreciation and amortisation.
EPRA The European Public Real Estate Association, a real estate industry body, of
which the Company is a member. EPRA has issued Best Practice Recommendations
to improve the transparency, comparability and relevance of the published
results of listed real estate companies in Europe.
Equivalent yield (true and nominal) The capitalisation rate applied to future cash flows to calculate the gross
property value. The cash flows reflect future rents resulting from lettings,
lease renewals and rent reviews based on current ERVs. The true equivalent
yield (TEY) assumes rents are received quarterly in advance, while the nominal
equivalent yield (NEY) assumes rents are received annually in arrears. These
yields are determined by the Group's external valuers.
ERV The estimated market rental value of the total lettable space in a property
calculated by the Group's external valuers on a net effective basis.
ESG (Environmental, Social and Governance) A framework that helps stakeholders understand how an organisation is managing
risks and opportunities related to environmental, social, and governance
criteria. ESG takes the holistic view that sustainability extends beyond just
environmental issues.
F&B Food and beverage.
Gearing Net debt expressed as a percentage of equity shareholders' funds calculated as
per the covenant definition in the Group's unsecured revolving credit and
facilities and private placement senior notes.
Gross development value (GDV) The estimated completed market value of a development or other major project.
Gross property value or Gross asset value (GAV) Property value before deduction of purchasers' costs, as determined by the
Group's external valuers.
Gross rental income (GRI) Income from leases, car parks and commercialisation, after amortising lease
incentives.
Headline rent The annual rental income due from a lease, including base and turnover rent
and after rent-free periods.
Inclusive lease A lease, often for a short period, under which the rent includes costs such as
service charge, rates and utilities. Instead, the landlord incurs these costs
as part of the overall commercial arrangement.
Income return Income derived from property taken as a percentage of the property value on a
time-weighted and constant currency basis after taking account of capital
expenditure.
Interest cover Net rental income divided by net finance costs before capitalised interest and
interest charges on lease obligations and pensions. All figures exclude
associates.
Leasing Comprises new lettings and renewals. For temporary leases (period of less than
one year), leasing value reflects the rent secured for the period of the
lease, not an annualised figure.
Leasing vs Passing rent A comparison of Headline rent from new leases and renewals to the Passing rent
at the most recent balance sheet date.
Like-for-like (LfL) A methodology for comparing key metrics, calculated to reflect properties
owned throughout both current and prior periods, and where applicable
calculated on a constant currency basis.
Like-for-like (LfL) GRI/NRI The percentage change in GRI/NRI for flagship properties owned throughout both
current and prior periods, calculated on a constant currency basis. Properties
undergoing a significant extension project are excluded from this calculation
during the period of the works. For interim reporting periods properties sold
between the balance sheet date and the date of the announcement are also
excluded from this metric.
Loan to value (LTV) Net debt expressed as a percentage of property portfolio value, calculated on
a proportionally consolidated basis. In addition, EPRA has a 'EPRA LTV'
measure which adds net payables to net debt.
Net effective rent (NER) Annual rent from a unit calculated by taking the total rent payable over the
term of the lease to the earliest termination date and deducting all lease
incentives.
Net initial yield (NIY) (or Initial yield) Annualised rents receivable (net of head rents and the cost of vacancy, and,
in the case of France, net of an allowance for costs of approximately 5%,
primarily for management fees) on a cash basis, as a percentage of gross
property value, as provided by the Group's external valuers.
Net rental income (NRI) GRI less net service charge expenses and cost of sales. Additionally, the
change in provision for amounts not yet recognised in the income statement is
also excluded to calculate NRI.
NTA (EPRA) EPRA Net Tangible Assets: An EPRA net asset per share measure calculated as
equity shareholders' funds with adjustments made for the fair values of
certain financial derivatives, deferred tax and any goodwill balances.
Occupancy rate The ERV of the area in a property or portfolio, excluding developments, which
is let, expressed as a percentage of the total ERV, excluding the ERV for car
parks, of that property or portfolio.
Occupational cost ratio (OCR) The proportion of an occupier's sales compared with the total cost of
occupation, including rent, local taxes (i.e. business rates) and service
charge. Calculated excluding department stores.
Over-rented The amount, or percentage, by which the ERV falls short of rent passing for
reversion.
Passing rents (or rents passing) The annual rental income receivable from an investment property after
rent-free periods, head rents, car park costs and commercialisation costs.
Passing rent for reversion Passing rent adjusted for lease incentives and inclusive costs to be on a net
effective basis. This will increase or decrease due to changes to rents
passing at rent review or the next lease event (i.e. expiry or break), or by
leasing vacant space or space undergoing reconfiguration.
Principal lease A lease signed with an occupier with a secure term of greater than one year.
Property fee income Amounts recharged to tenants or co-owners for property management services
including, but not limited to service charge management and rent collection
fees.
Property Income Distribution (PID) A dividend, generally subject to withholding tax, that a UK REIT is required
to pay from its tax-exempt property rental business and which is taxable for
UK-resident shareholders at their marginal tax rate.
Property outgoings The direct operational costs incurred by a landlord relating to property
ownership and management. This typically comprises void costs, net service
charge expenses, letting related costs, marketing expenditure, repairs and
maintenance, tenant incentive impairment, bad debt expense relating to items
recognised in the income statement and other direct irrecoverable property
expenses. These costs are included within the Group's calculation of
like-for-like NRI and the EPRA Cost ratio.
Proportional consolidation The aggregation of the financial results of the Reported Group and the Group's
Share of Joint ventures as set out in note 2 to the financial statements.
QIAIF Qualifying Investor Alternative Investment Fund. A regulated tax regime in the
Republic of Ireland which exempts participants from Irish tax on property
income and chargeable gains subject to certain requirements.
REIT Real Estate Investment Trust. A tax regime which in the UK exempts
participants from corporation tax both on UK rental income and gains arising
on UK investment property sales, subject to certain requirements.
Rent collection Rent collected as a percentage of rent due for a particular period
Reported Group The financial results as presented under IFRS.
Reversionary or under‑rented The amount, or percentage, by which the ERV exceeds the rent passing for
reversion.
SAICA South African Institute of Chartered Accountants.
SIIC Sociétés d'Investissements Immobiliers Côtées. A tax regime in France
which exempts participants from the French tax on property income and gains
subject to certain requirements.
SONIA Sterling Overnight Index Average.
Temporary lease A lease with a period of one year or less, measured to the earlier of lease
expiry or occupier break.
Topped-up net initial yield The net initial yield increased to reflect the value of unexpired lease
incentives (i.e. rent free periods).
Total accounting return (TAR) The growth in EPRA NTA per share plus dividends paid, expressed as a
percentage of EPRA NTA per share at the beginning of the period. The return
excludes the dilution impact from scrip dividends.
Total property return (TPR) (or total return) NRI, excluding the change in provision for amounts not yet recognised in the
income statement, and capital growth expressed as a percentage of the opening
book value of property adjusted for capital expenditure, calculated on a
monthly time-weighted and constant currency basis.
Turnover rent Rental income which is linked to an occupier's revenues.
Vacancy rate The ERV of the area in a property, or portfolio, excluding developments, which
is currently available for letting, expressed as a percentage of the ERV of
that property or portfolio.
WAULB/WAULT Weighted average unexpired lease to break/term.
Yield on cost Passing rents expressed as a percentage of the total development cost of a
project or property.
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