Hammerson cuts losses after record year of lease activity

By Staff

Losses at property development and investment group Hammerson have fallen as the company welcomed a record year of lease activity.

The listed group posted a pre-tax loss of £50.7 million in its full-year results for 2023, a significant drop from a £164 million loss in the previous year.

Revenue was stable, climbing slightly from £131.4 million to £134.3 million while gross rental income fell from £215 million in 2022 to £208 million.

London-based Hammerson owns and operates well-known retail hubs such as Birmingham’s Bullring and Grand Central, Cabot Circus in Bristol and Brent Cross in the capital.

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It also leads developments such as the long-running plans for the mixed-use Martineau Galleries scheme in central Birmingham.

In a statement to the London Stock Exchange today, Hammerson said it had secured a record 306 lease deals which represented £46 million of headline rent while footfall was up by three per cent and dwell time five per cent.

Chief executive Rita-Rose Gagné said: “Our city centre destinations are in high demand. This year, we delivered a positive performance across our key strategic, operational and financial metrics.

“Like-for-like gross rental income was up six per cent, following another record year of leasing. Occupancy remains strong and footfall and sales were up again.

“We’ve strengthened our operational platform while reducing costs by 14 per cent. Over the last three years, we have delivered against all strategic milestones.

“We now have a core portfolio focused on urban locations which are evolving into my vision – vibrant, 24/7 multi-use estates.

“These destinations are fast growing and part of the fabric and infrastructure of the cities in which we operate.

“While our eyes are open to the current macro-economic environment, our occupiers are thriving and our visitor numbers are on the rise in our realigned portfolio.

“We are reaping the rewards of the investments we are making in our core portfolio alongside best-in-class occupiers which underpins the high levels of demand for our space. We expect this trajectory to continue in the year ahead.”

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