HAMMERSON plc – HALF YEAR 2025 RESULTS
Growth in gross rental income: up 5% like-for-like, up 11% including acquisitions
Acquisition of remaining 50% interest in Bullring and Grand Central for £319m1 and associated equity placing
Dividend growth of 5% and upgraded earnings outlook
Hammerson, the largest UK-listed owner and manager of prime retail and leisure anchored city destinations in the UK, France and Ireland, today announces its half year results for the six months ended 30 June 2025, with highlights including:
- Like-for-like gross rental income up 5% and like-for-like net rental income up 4%, driven by active asset management and strategic focus on high quality landmark destinations
- Total gross rental income up 11%, net rental income up 10%, following successful deployment of capital: £321m over nine months at average 8.5% destination yield
- EPRA earnings of £48m, 9.9p per share (HY24: £50m, 9.9p) ahead of expectations - dividend increase of 5% to 7.94p reflects confidence in earnings growth trajectory
- Portfolio valuation up 11% to £3.0bn – net revaluation gain of £26m is the first portfolio gain since HY17
- Also separately announced today – unconditional agreement to buy remaining 50% interest in Bullring and Grand Central at 7.7% blended topped-up NIY2 and a 4% discount to June 2025 book value, and associated equity placing
- Opportunities to unlock further value, with disciplined capital allocation strategy to enhance returns for shareholders
- EPRA earnings guidance for FY25 raised to c.£102m (from c.£95m) - on track to achieve medium term financial
Rita-Rose Gagné, Chief Executive of Hammerson, commented:
“Demand for our space has never been stronger, reflected in high occupancy, growing footfall and sales, and another period of record leasing. I am pleased with our performance in the first half, which has been driven by our investments in recent years into repositioning and placemaking, and data and analytics which allows us to better understand and anticipate the evolving behavioural trends of consumers and occupiers.
The consumer spend where we have focused our portfolio is resilient and growing for the right product in the best destinations, as brands are shifting towards fewer, higher-performing spaces. We have quickly recycled capital in a disciplined way to focus our portfolio on the top 1% of locations where retail spend is concentrated. In just nine months we’ve put to work £321m to gain full control of two more of our landmark city destinations at an average yield of 8.5%, delivering a step-change in income and earnings. This morning, we also announced the £319m acquisition of our JV partner’s stake in Bullring and Grand Central allowing us to take full control of this top five UK destination, further enhancing income and earnings.
The strategy we’ve executed has delivered a prime portfolio with high visibility of long-term income streams and multiple paths to further value creation. Our outlook is underpinned by positive structural societal and demographic trends in our catchments, where we have the opportunity to capture greater market share. Our pure play platform, team and operational grip means that we are well placed to maximise opportunities and deliver further rental, value, earnings, and dividend growth.”