Hammerson, the UK - and JSE-listed owner of premium retail centres in the UK said yesterday that it had successfully focused on executing its strategy in the first three months to March 31.
Rita-Rose Gagne, Hammerson’s CEO, said in a trading statement ahead of its planned annual general meeting (AGM) on May 4, that “we have a strong operational grip that 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.”
The meeting may be lively - shareholder advisers have told Hammerson’s investors to vote against resolutions tabled by Lighthouse Properties, to install two new board members, according to the EG News online publication yesterday.
Lighthouse, which owns nearly 23% of Hammerson, intended to vote against two of Hammerson’s board members and also wanted dividends to be reinstated, Sky News reported.
Meanwhile, Gagne said as part of their strategy in the first three months, minority stakes had been exited in France and other non-core interests, bringing disposals since the start of 2021 to more than £840 million (R19 billion). In addition there was now a sharper focus on the core portfolio of city centre assets and land.
“We have strengthened the balance sheet and maintained a disciplined approach to capital allocation…we have strong momentum and remain on track to return to cash dividends as previously guided,” she said.
Like-for-like gross rental income grew 5% in the first quarter reflecting good leasing, car parking and commercialisation performance.
Like-for-like net rental income was up 5% benefiting from solid collections, lower bad debt charges and tenant incentive impairments.
Administration costs fell 13% in line with a plan to reduce these by 20% by the end of 2024.
Footfall in the UK and France was up 6% year-on-year and by 13% in Ireland.
There had been continued momentum on leasing with 61 leases signed year-to-date, representing £9m of rent on a 100% basis. Occupancy was at 95%. Portfolio valuations remained flat on December 31, 2022.
Since full year 2022 results in March, disposals completed included Hammerson’s share of Italie Deux and Italik, delivering £410m of the £500m disposals target for 2023, and the group said it was confident of completing the programme on schedule.
BUSINESS REPORT