TIDMHMSO
RNS Number : 0967M
Hammerson PLC
19 January 2021
19 January 2021
Operational and rent collection update
The safety and wellbeing of our customers, colleagues, and
partners, remains Hammerson's number one priority, and the business
continues to have robust and extensive safety measures in place
across the portfolio to ensure customers can access essential
retail and other services.
Market conditions have remained challenging since our last
update in October, with national lockdowns introduced in the UK,
Ireland, and France in November, and significant restrictions in
place across the portfolio through December. There are currently
national lockdowns in Ireland and the UK, with significant
restrictions in place across France and continental Europe.
Operational update
Q4 2020
-- Encouraging footfall recoveries during the Christmas trading
period from 30 November to 24 December, following the easing of
lockdowns at the end of the November.
-- France and Ireland flagships benefited from seven-day average
footfall of up to 90% of the prior year.
-- The UK delivered a more variable footfall performance with
city centre-focused flagships peaking at more than 60% of prior
year, and 100% for retail parks.
-- During this period, up to 75% of occupiers in the UK were
open or offering Click & Collect; 95% in France; and 100% in
Ireland.
Q1 2021 to date
-- Since the introduction of tighter restrictions, as at 17
January, in the UK approximately a quarter of the Company's
occupiers are open, either offering essential retail, Click &
Collect, and/or takeaway and delivery services.
-- Meanwhile, Hammerson's destinations in France are now subject
to a 6pm national curfew, primarily impacting F&B and leisure
brands.
-- In Ireland, Hammerson's flagships are only offering essential
retail and takeaway or delivery services. Following the Irish
Government's temporary ban on Click & Collect for non-essential
retail around a quarter of occupiers continue to operate.
-- Footfall has declined in line with the introduction of new
restrictions, particularly across UK flagships and Ireland.
Value Retail
Just over half of the Villages in the Value Retail portfolio are
currently closed, following the introduction of additional
lockdowns across Europe. Performance has been robust during periods
when Villages have been open and the virtual shopping service has
expanded strongly during periods of closure.
Rent collection
Despite the challenging trading environment, our leasing teams
have worked hard to reach agreements with retailers, and rent
collection has increased significantly.
At a Group level, 41% of Q1 2021 rent due had been received,
with the UK collecting 41% (36% flagships; 64% retail parks),
France 46%, and Ireland 31%.
Rent Net Amount payable Deferred/not Collected Outstanding Collected of Collected at 15
(GBPm) yet due (GBPm) Waived (GBPm) due (%) October
(GBPm)* (GBPm) (%)
Q1 67.7 - 65.6 - 2.1 97 97
---------------- ---------------- ---------- -------- ------------ ---------------- ----------------
Q2 68.7 3.4 41.4 14.5 9.4 63 59
---------------- ---------------- ---------- -------- ------------ ---------------- ----------------
H1 136.4 3.4 107.0 14.5 11.5 80 79
---------------- ---------------- ---------- -------- ------------ ---------------- ----------------
Q3 68.6 1.3 48.8 0.6 17.9 73 59
---------------- ---------------- ---------- -------- ------------ ---------------- ----------------
Q4 60.2 - 39.6 6.3 14.3 66 41
---------------- ---------------- ---------- -------- ------------ ---------------- ----------------
FY20 265.2 4.7 195.4 21.4 43.7 75 66
---------------- ---------------- ---------- -------- ------------ ---------------- ----------------
Q121 61.5 12.9 19.8 - 28.8 41 -
---------------- ---------------- ---------- -------- ------------ ---------------- ----------------
* 2020 balances reflect amounts originally due in 2020 but
agreed with tenants to be deferred into 2021. 2021 balance reflects
amounts not yet payable as they principally relate to monthly
billings due later in Q1
Liquidity update
Following receipt of the equity issuance in September and the
disposal of the majority of its share of VIA Outlets in November
(gross proceeds GBP829m), Hammerson has made the following
repayments of the Group's gross debt, in accordance with its stated
intentions for use of net proceeds in the Prospectus in August
2020:
-- Full repayment of drawings under the Group's Revolving Credit
Facilities (GBP568 million drawn at 30 June 2020) completed in
October
-- Offers of prepayment at par to private placement noteholders,
in accordance with the Amendment Agreement announced on 1 July
2020, have been made for a total of GBP226m, being 30% of the total
net proceeds in excess of GBP50m. Acceptances of this offer
totalled GBP169m and prepayment was completed in December, saving
GBP4.3m of interest cost on an annualised basis.
-- Full repayment of the GBP75m maturing May 2021 issued under
Hammerson's approved GBP300m Covid Corporate Financing Facility
(CCFF) was completed in December 2020.
Following these transactions Hammerson continues to maintain
high levels of liquidity, having access to its GBP1,245m of
available undrawn Revolving Credit Facilities as well as
substantial cash holdings.
Share count for per share metrics
Following the completion of the Rights Issue and the Enhanced
Scrip Dividend Alternative, the total number of issued 5 pence
ordinary shares in the Company is 4,057,298,174. The
weighted-average number of shares for 2020 per share earnings
calculations, taking into account the bonus factor relating to the
Rights Issue, is approximately 2.3bn. The weighted average number
for 2019 is approximately 1.7bn.
ENDS
This announcement has also been released on the SENS system of
the Johannesburg Stock Exchange and on Euronext Dublin.
Investor Contact
Josh Warren, Hammerson, Head of Investor Relations
Tel: +44 20 7887 1053
josh.warren@hammerson.com
Richard Shaw, Hammerson, Director of Finance
Tel: +44 207 887 1820
Richard.Shaw@hammerson.com
Press Contacts
Hammerson
Catrin Sharp, Head of Corporate Communications
Tel: +44 20 7887 1063
catrin.sharp@hammerson.com
FTI Consulting (for Hammerson)
Dido Laurimore
Tel: +44 20 3727 1000/ 0780 1654424
dido.laurimore@fticonsulting.com
Notes to editors
Hammerson
Hammerson create vibrant, continually evolving spaces, in and
around thriving European cities, with a focus on flagship retail
destinations and Premium Outlets. As of 30 June 2020, our portfolio
of high-quality venues had a value of GBP7.7 billion and included
20 flagship destinations in thriving cities, and investments in
premium outlet villages through our partnership with Value Retail
and the VIA Outlets joint venture. Key retail venues include
Bullring & Grand Central, Birmingham, Bicester Village,
Oxfordshire, Dundrum Town Centre, Dublin, and Les Terrasses du
Port, Marseille.
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