Pre AGM trading update

Hammerson plc today announces a trading update for the three months ended 31 March 2023 which is being issued ahead of the Company's Annual General Meeting to be held at 0900 BST on 4 May 2023 at Marble Arch House, London.

Rita-Rose Gagné, Chief Executive of Hammerson, said:"We have maintained our focus on execution during the first few months of the year.  We have a strong operational grip which 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. 

We have exited minority stakes in France and other non-core interests, bringing total disposals since the start of 2021 to over £840m, and a sharper focus on our core portfolio of city centre assets and land.  We have further strengthened the balance sheet and maintain a disciplined approach to capital allocation.  Looking forward, we have strong momentum and remain on track to return to cash dividends as previously guided."
 
Strong Q1 reflecting consistent execution.

• Like-for-like gross rental income growth of +5% reflecting robust leasing, car parking and commercialisation performance
• Like-for-like net rental income was up +5% benefiting from solid collections (FY 22 96%;
• Q1 23 92%), lower bad debt charges and tenant incentive impairments
• Gross administration costs decreased 13% year-on-year in line with our commitment to reduce these by 20% by the end of 2024
• Value Retail has seen a strong start to the year with spend per visit up +3%

Footfall and sales

• Footfall in the UK and France up +6% year-on-year; Ireland +13%
• Sales in the UK up +6% year-on-year; France +11%; Ireland +7%
• Value Retail footfall up +14% year-on-year; sales +17%

Leasing and occupancy

• Continued momentum on leasing with 61 leases signed year-to-date, representing £9m of rent on a 100% basis
• Headline rent +18% ahead of previous passing rent, and +5% ahead of ERV on a net effective basis
• Diverse leasing mix including non-fashion, restaurant, leisure, and services
• Continued demand with a further £16m in solicitors' hands
• Occupancy up year-on-year to 95%

Valuations

• Q1 managed portfolio valuations flat on 31 December 2022; slight increase to ERVs offset by marginal adjustment to yields

Disposals

• The Group remains disciplined in its disposal programme
• Since full year 2022 results in March, we have completed disposals including Hammerson's share of Italie Deux and Italik, delivering a cumulative c.£410m of our £500m 2023 target; the Group remains confident of completing the programme on schedule

Balance sheet and liquidity

• £22m of cash distributions received from Value Retail
• Including disposals to date and debt written down, the Group's credit metrics have further improved:

• The Group's RCF facility of £613m extended to April 2026 with pro forma liquidity of £1.2bn
• No further Group unsecured debt maturities not covered by existing cash until 2026

ENDS