Pre AGM trading update

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: [phone]    Email: [e-mail]

Media Enquiries:

Natalie Gunson, Communications Director, Hammerson                  

Tel: [phone]    Email: [e-mail]

MHP for Hammerson

Oliver Hughes

T: [phone]  E: [e-mail]

Ollie Hoare

T: [phone]   E: [e-mail]

ENDS

This announcement has also been released on the SENS system of the Johannesburg Stock Exchange and on Euronext Dublin.

 

END