Strong results driven by resilient leasing market
Hammerson’s preliminary results for the 12 months to 31 December 2017 showed the company bucking the negative trends in the retail sector.
Overall Net rental income was up +6.9 per cent to £370.4m and 2017 saw the highest ever group leasing volumes up 34% on 2016 securing income of £33.3m and delivering record occupancy of 98.3 per cent. Leases were signed at an average of 8% ahead of ERV and 7% ahead of the previous passing rent, with stable tenant incentives. Footfall outperformed the benchmarks in both the UK and France.
Adjusted profit up 6.8 per cent to £246.3m while the portfolio value rose by 5.9 per cent to £10.560bn.
Star performer was the outlet portfolio which delivered impressive sales growth of +9 per cent. A new £76m investment in Value Retail took Hammerson’s stake in Bicester Village to over 50 per cent; and VIA outlets’ Oslo acquisition took the total investment in premium outlets in 2017 to £130m.
Chief executive David Atkins said: “In recent years we have actively rebalanced the weighting of our portfolio towards high footfall destinations in major cities across the UK and Europe and this has underpinned our strong financial success at a time of on-going structural change in retail. By creating the space that today’s retailers need to showcase their brands, we achieved the highest level of lettings this year than in any other in Hammerson’s 75-year history.”