Hammerson PLC Pre AGM trading update (2932X)
25 April 2023 - 4:00PM
UK Regulatory
TIDMHMSO
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
GBP840m, 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 GBP9m 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 GBP16m 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.GBP410m of our GBP500m 2023 target; the
Group remains confident of completing the programme on schedule
Balance sheet and liquidity
-- GBP22m 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 GBP613m extended to April 2026
with pro forma liquidity of GBP1.2bn
-- 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
Media Enquiries :
Natalie Gunson, Communications Director, Hammerson
Tel: +44 (0)20 7887 4672 Email: 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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END
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