REG - Hammerson PLC - Pre AGM trading update

HammersonAnnouncement

25/04/2023 07:00

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RNS Number : 2932X  Hammerson PLC  25 April 2023

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

25 April 2023

Pre AGM trading update

Hammerson plc today announces a trading update for the three months ended 31
March 2023 which is being issued ahead of the Company's Annual General Meeting
to be held at 0900 BST on 4 May 2023 at Marble Arch House, London.

Rita-Rose Gagné, Chief Executive of Hammerson, said:

"We have maintained our focus on execution during the first few months of the
year.  We have a strong operational grip which is delivering top line growth,
with continued momentum in leasing and a strong pipeline.  We have further
reduced costs, with more to come as we create a sustainable and agile
platform.

We have exited minority stakes in France and other non-core interests,
bringing total disposals since the start of 2021 to over £840m, and a sharper
focus on our core portfolio of city centre assets and land.  We have further
strengthened the balance sheet and maintain a disciplined approach to capital
allocation.  Looking forward, we have strong momentum and remain on track to
return to cash dividends as previously guided."

 

Strong Q1 reflecting consistent execution.

·    Like-for-like gross rental income growth of +5% reflecting robust
leasing, car parking and commercialisation performance

·    Like-for-like net rental income was up +5% benefiting from solid
collections (FY 22 96%;

Q1 23 92%), lower bad debt charges and tenant incentive impairments

·    Gross administration costs decreased 13% year-on-year in line with
our commitment to reduce these by 20% by the end of 2024

·    Value Retail has seen a strong start to the year with spend per visit
up +3%

 

Footfall and sales

·   Footfall in the UK and France up +6% year-on-year; Ireland +13%

·   Sales in the UK up +6% year-on-year; France +11%; Ireland +7%

·   Value Retail footfall up +14% year-on-year; sales +17%

 

Leasing and occupancy

·   Continued momentum on leasing with 61 leases signed year-to-date,
representing £9m of rent on a 100% basis

·   Headline rent +18% ahead of previous passing rent, and +5% ahead of ERV
on a net effective basis

·   Diverse leasing mix including non-fashion, restaurant, leisure, and
services

·   Continued demand with a further £16m in solicitors' hands

·   Occupancy up year-on-year to 95%

Valuations

·   Q1 managed portfolio valuations flat on 31 December 2022; slight
increase to ERVs offset by marginal adjustment to yields

 

 

Disposals

·   The Group remains disciplined in its disposal programme

·   Since full year 2022 results in March, we have completed disposals
including Hammerson's share of Italie Deux and Italik, delivering a cumulative
c.£410m of our £500m 2023 target; the Group remains confident of completing
the programme on schedule

 

Balance sheet and liquidity

·   £22m of cash distributions received from Value Retail

·   Including disposals to date and debt written down, the Group's credit
metrics have further improved:

                           Pro-forma  31 December 2022
 ·    Headline LTV         35%        39%
 ·    FPC LTV              44%        47%
 ·    Net debt/EBITDA      9x         10.4x

·   The Group's RCF facility of £613m extended to April 2026 with pro
forma liquidity of £1.2bn

·   No further Group unsecured debt maturities not covered by existing cash
until 2026

 

Investor Enquiries:

Josh Warren, Director of Strategy, Commercial Finance, and Investor
Relations

Tel: +44 (0)20 7887 1053    Email: josh.warren@hammerson.com
(mailto:josh.warren@hammerson.com)

Media Enquiries:

Natalie Gunson, Communications Director,
Hammerson

Tel: +44 (0)20 7887 4672    Email: natalie.gunson@hammerson.com
(mailto:natalie.gunson@hammerson.com)

MHP for Hammerson

Oliver Hughes

T: +44 7885 224532  E: Hammerson@mhpgroup.com

Ollie Hoare

T: +44 7817 458804   E: Hammerson@mhpgroup.com

 

ENDS

 

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