Hammerson plc – Unaudited results for the six months ended 30 June 2008
Financial Highlights
| Six months to: | 30 June 2008 | 30 June 2007 | Change |
|---|---|---|---|
| Net rental income | £145.8m | £138.3m | +5.4% |
| (Loss)/Profit before tax | £(417.1)m | £367.8m | |
| Adjusted profit before tax(1) | £60.5m | ££54.8mm | +10.4% |
| Basic (loss)/earnings per share(1) | (145.6)p | 128.6 p | |
| Adjusted earnings per share(1) | 20.3 p | 18.4p | +10.3% |
| Interim dividend per share(2) | 12.6p | 12.0 p | +5.0% |
| Return on shareholders’ equity(3) | (8.8)% | 10.5% | |
| 30 June 2008 | 31 Dec2007 | ||
| Total property assets | £7,093m | £7,275m | |
| Equity shareholders’ funds | £3,920m | £4,335m | -10.0% |
| Adjusted net asset value per share, EPRA basis(1) | £13.92 | £15.45 | -9.9% |
| Gearing | 77% | 57% |
Key Points
- The Group’s high quality portfolio continues to generate a robust income stream with like-for-like rental income growth of 4.4%.
- The occupancy level remained high at 97.7% at 30 June 2008, whilst the average unexpired lease term was ten years.
- In the UK, the Group’s portfolio showed a negative total return of 7.2%, whilst in France there was a positive total return of 1.5%.
- Capital expenditure amounted to £314 million, whilst £73 million was raised from disposals.
- In France, values increased throughout the year, giving rise to a capital return for 2007 of 16.5%.
- Capital expenditure amounted to £824 million, whilst £537 million was raised from disposals.
- Current development programme nearing completion, with the major retail schemes in Bristol, Leicester and Paris in aggregate 87% let or in solicitors’ hands by income.
- The Group has a strong balance sheet and raised £750 million of additional committed debt finance in the first six months of 2008.
- Interim dividend increased by 5%.
Notes
- The calculations for basic and adjusted figures are shown on pages 7 and 8 and in note 7 on page 26.
- Interim dividend of 12.6 pence per share (2007: 12p) will be paid as a PID, net of withholding tax where appropriate.
- Excluding deferred tax.
John Nelson, Chairman of Hammerson, said:
“Hammerson reported another good operating performance in the first six months of the year with an increase in adjusted earnings per share of 10.3% to 20.3 pence.
The fundamentals of the Company’s business remain very sound. Our portfolio is of the highest quality, is focused on prime retail and office assets in the UK and France, and generates a robust and growing income stream. Our income will increase significantly over the next few years following the completion of five major developments this year and one in 2009. Our balance sheet is strong and we are well-financed.
The conditions in the international debt markets are the most difficult to have been experienced for many years. This has led to falls in real estate values in a number of markets and it is difficult to predict when conditions will improve. However, given the strength of our business and our experienced management team, I believe we are in a good position to exploit these more difficult market conditions.”
Enquiries:
John Richards, Chief Executive
Tel: 020 7887 1000
Simon Melliss, Group Finance Director
Tel: 020 7887 1000
Christopher Smith, Director of Corporate Affairs
Tel: 020 7887 1019
christopher.smith@hammerson.com
Results presentation today:
| Time | 9.30 a.m. |
| Venue | City Conference Centre, |
| 80 Coleman Street, | |
| London EC2R 5BJ. |
Webcast:
There will be a webcast of Hammerson’s results presentation broadcast live today at
9.30 a.m. via the Company’s website at www.hammerson.com
Financial Calendar:
| Ex-dividend date | 13 August 2008 |
| Record date for the dividend | 15 August 2008 |
| Interim dividend payable | 30 September 2008 |
Copies of the Chairman’s statement, preliminary results statement, income statement, balance sheet, statement of recognised income and expense, reconciliation of equity, cash flow statement, analysis of movement in net debt and notes are attached. The terms in this document are defined in the glossary on pages 33 and 34.