REG - Hammerson PLC - IASB Accounting Interpretation

HammersonAnnouncement

22/02/2023 07:00

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RNS Number : 6295Q  Hammerson PLC  22 February 2023

Hammerson plc ("Hammerson" or the "Group")

IASB Accounting Interpretation and Impact on 2021 Income

22 February 2023

 

In October 2022, the IASB IFRS interpretations committee finalised an agenda
decision in respect of 'Lessor forgiveness of lease payments (IFRS 9 and IFRS
16)'.

This stipulates that losses which were incurred on granting rent concessions,
which for the Group occurred during the Covid-19 pandemic, should be charged
to the income statement in the year they are granted.

In its 2021 audited financial statements, the Group's treatment of
Covid-related concessions, consistent with certain other companies within the
sector, has been to recognise these as lease modifications such that the
impact was initially held on the balance sheet and then spread forward into
the income statement over the lease term or period to first break.

The impact to be reflected in the forthcoming 2022 full year results is that
2021 figures have been restated as set out below:

                                 As originally reported  Changes   Restated

                                 £m                      £m        £m

 Gross rental income             241.6                   8.8       250.4
 Adjusted Net rental income      189.8                    (15.4)    174.4
 Adjusted earnings               80.9                     (15.4)    65.5

 

The change of policy will also benefit 2022's adjusted net rental income and
adjusted earnings by c.£2m. There are no other material changes to the
Group's income, net assets, or cash flows.

The Group's earnings expectation set out in the Q3 trading, operational and
rent collection update dated 8 November 2022 remains unchanged with adjusted
earnings not expected to be less than £100m.

The Group will present 2021 and 2022 figures on this basis at the forthcoming
2022 full year results on 9 March 2023.

ENDS

For further information contact:

Josh Warren

Director of Strategy, Commercial Finance and Investor Relations

Tel: 020 7887 1053

Natalie Gunson

Communications Director

Tel: 020 7887 4672

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