Hammerson shares were trading up 2.14% to 35.36p on Friday morning following the announcement of their full year results.
Hammerson is in the process of recovering from the pandemic.
Hammerson’s adjusted earnings saw an increase of 122% from £37m in FY20 to £81m in FY21. The earnings managed such an increase due to better net rental revenue, lower financing costs and the recovery in profitability of their value retail segment.
Surrender premiums saw a £17m increase followed by a £12m contribution to net rental income, in 2021.
The group’s balance sheet strengthened with £503 in 2021 from disposals. Due to the significant cash from disposals, the group’s net debt reduced by 19% to £1.8bn in 2021.
“Since the beginning of 2021, we have made fundamental changes in our business, realigning our portfolio with £623m of disposals, significantly strengthening the balance sheet, re-setting our organisation and putting in place a clear strategy for value creation focused on our prime urban estates,” stated Rita-Rose Gagné, Chief Executive Officer, Hammerson.
IFRS losses induced by pandemic restrictions reduced by £1.3bn to £429m in 2021.
Good results were seen in all territories as a comeback from the pandemic. Flagship leasing value saw a rise of 150% to £25m in 2021 due to a robust demand for prime space. The occupancy rate of the flagship leasing increased to 96% by FY21 from 93% HY21. Focus remains on the rent and arrears collection, with collections of 99% in 2020, to 90% in ’21 and currently 83% YTD.
“We are already seeing the tangible results from our strategy with strong occupier leasing demand, reduced vacancies, improved collections, a lower cost base and clear path to value creation from our land bank,” commented CEO.
The proposed final dividend of 0.2p per share is still subject to shareholder approval. However, an alternative of an enhanced scrip dividend of 2p per share is also available to the shareholders. Regardless, the dividend payments will be paid out from property income distribution.
Rita said, “The pandemic has accelerated trends in our operating environment, with people engaging with physical space in new ways. Our role is to create and curate relevant, appealing and sustainable spaces for the future.”