Hammerson 2012 Full-Year Results
|Year ended:||31.12.12||31.12.11||Change||Like-for-like change|
|Net rental income (1)
|EPRA earnings per share (2)||20.9p||19.3p||+8.3%|
|Final dividend per share||10.0p||9.3p||+7.5%|
|EPRA net asset value per share (2)||£5.42||£5.30||+2.3%|
STRONG OPERATING RESULTS FROM HIGH-QUALITY RETAIL ASSETS
- Growth of 2.1% in group like-for-like net rental income demonstrating continued tenant demand for our properties and the success of asset management initiatives.
- Occupancy of 97.7% reflecting high-quality retail assets. Occupancy exceeds our target of 97% and is up since the half year.
- Leases signed overall at 4% above ERV, and 10% above previous passing rent, providing confidence in future income growth.
PORTFOLIO REPOSITIONED TO DELIVER SUPERIOR FUTURE RETURNS
- Portfolio repositioned to pure retail focus. Announced office asset disposals for £627 million at a 7% premium, and £541 million investments into successful retail venues: Value Retail; Victoria Quarter; Whitgift; and The Junction Fund.
- Significant development progress. Land purchase and commitment to proceed at Le Jeu de Paume, Beauvais; JV signed with Westfield to develop Centrale and Whitgift in Croydon; Les Terrasses du Port, Marseille now 83% let; and John Lewis signed to anchor Eastgate Quarters, Leeds.
FOCUSED FINANCIAL MANAGEMENT REDUCING COSTS
- Reduction in net operating expenses of 7%, and finance costs down 11% year-on-year.
- Active liability management. Seven-year €500m 2.75% bond issued, and new £175 million revolving credit facility agreed in December. Year-end liquidity of nearly £700 million and gearing of 53% provide flexibility for further investment.
INCREASED DIVIDEND REFLECTING FUTURE CONFIDENCE
- Final dividend increased by 7.5%. Total dividend for the year of 17.7 pence per share (2011: 16.6 pence).
David Atkins, Chief Executive of Hammerson, said:
“We have again proved that high-quality retail assets combined with active management can deliver good income growth even in a challenging environment. 2012 was a transformational year for Hammerson, where we successfully executed over £1 billion of investment activity to become a pure retail-focused company. Looking forward, our visibility of the future earnings profile of the business gives us confidence, and we continue to seek opportunities to enhance the scale and efficiency of our business through further acquisitions.”
John Nelson, Chairman, said:
“This is my final set of results as Hammerson Chairman. Hammerson has great assets, a dynamic management team and clear prospects for further growth. Against a difficult economic backdrop, the numbers demonstrate strong performance and validate our strategic focus and operational execution. I am proud of what the company has achieved and I wish its shareholders and staff well for the future.”
A live webcast of Hammerson’s results presentation was broadcast via the following link http://www.media-server.com/m/p/d9k7vq3o
David Atkins, Chief Executive Tel: +44 (0)20 7887 1000
Timon Drakesmith, Chief Financial Officer
Morgan Bone, Director of Corporate Communications Tel: +44 (0)20 7887 1009
- (1) Total net rental income of £282.9 million (2011: £296.0 million) consists of £258.8 million (2011: £263.8million) relating to continuing operations (note 2 on p. 47) and £24.1 million (2011: £32.2 million) relating to discontinued operations (note 6B on p. 52).
- (2) Calculations for EPRA figures are shown in note 8 on p. 54.
- (3) Profit before tax for the year ended 31 December 2012 was £142.2 million (2011: £346.3 million), consisting of £93.5 million (2011: £302.4 million) relating to continuing operations (note 2 on p. 47) and £48.7 million (2011: £43.9 million) relating to discontinued operations (note 6B on p. 52). Basic and diluted earnings per share were 19.4 pence (2011: 47.3 pence). See note 8A on p. 54.