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2014 Half-Year Results

24.07.2014

Six months ended: 30 June
2014
30 June
2013
Increase Like-for-like
increase
Net rental income (continuing operations) (1) £146.9m £140.4m +4.6% +1.5%
Profit before tax (including valuation changes) (2) £362.9m £80.8m n/a
EPRA earnings per share (3) 11.6p 11.1p +4.5%
Interim dividend per share 8.8p 8.3p +6.0%
As at: 30 June
2014
31 December
2013
EPRA net asset value per share (3) £6.12 £5.73 +6.8%
Loan to Value (1) 38% 38%

MAXIMISING INCOME THROUGH ACTIVE MANAGEMENT

  • Strong demand for high-quality retail property, with new rents secured of £12 million (2013: £10 million) for 67,800m² (2013: 70,600m²).
  • Leases signed overall at 7% above ERV and 6% above previous passing rents, providing confidence in future income growth.
  • Improving UK shopping centre performance with tenant sales growth of 2.5% and ERVs increasing by 0.7%.
  • Group occupancy of 97.2%, again exceeding our benchmark of 97%.
  • Interim dividend increased by 6.0% to 8.8 pence per share (2013 interim: 8.3 pence).

CREATING HIGH-QUALITY RETAIL DESTINATIONS

  • Les Terrasses du Port, Marseille, opened in May. The centre is now 98% let and has produced a 23% profit on cost.
  • On site at five development schemes, with construction started at Victoria Gate, Leeds, in April.
  • Planning approval received for major retail developments at Brent Cross, London, and Watermark WestQuay, Southampton.
  • Submitted a planning application for 260,000m2 mixed-use development at The Goodsyard, London.
  • Completed 5,000m2 extension at Abbotsinch Retail Park, Paisley, and due to start the redevelopment of Elliott’s Field Retail Park, Rugby, in autumn 2014.

ENHANCING CAPITAL STRENGTH

  • Property portfolio, including the Group’s interest in Value Retail, generated revaluation gains of £289.7 million, equivalent to a 4.3% capital return.
  • €500 million 2.0% bonds maturing in 2022 issued on 1 July 2014 increasing pro-forma liquidity to £980 million.
  • Debt management initiatives reduced weighted average interest rate to 4.6%.
  • 30 June 2014 loan to value of 38% and gearing of 54%.

David Atkins, Chief Executive of Hammerson, said: “This has been an encouraging first half in which we have successfully opened Les Terrasses du Port, signed an increased value of leases at levels above ERV and previous rents, and made operational and financial improvements to our business.
The consumer backdrop is improving in the UK and stabilising in France, against which we are providing the space for successful, expanding retailers, allowing us to grow rental values in selected locations. At the same time, global investors are increasingly seeking exposure to the benefits of high-quality retail assets, which has had a beneficial impact on capital values. We remain confident in our ability to deliver strong returns for shareholders.”