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IASB Accounting Interpretation and Impact on 2021 Income

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Published: 2023-02-22 10:00:41 ET
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 Hammerson plc
(Incorporated in England and Wales)
(Company number 360632)
LSE and Euronext Dublin share code: HMSO          JSE share code: HMN
ISIN: GB00BK7YQK64
(“Hammerson” or “the Group”)

IASB Accounting Interpretation and Impact on 2021 Income
22 February 2023

In October 2022, the IASB IFRS interpretations committee finalised an agenda decision in respect
of ‘Lessor forgiveness of lease payments (IFRS 9 and IFRS 16)’.

This stipulates that losses which were incurred on granting rent concessions, which for the Group
occurred during the Covid-19 pandemic, should be charged to the income statement in the
year they are granted.

In its 2021 audited financial statements, the Group’s treatment of Covid-related concessions,
consistent with certain other companies within the sector, has been to recognise these as lease
modifications such that the impact was initially held on the balance sheet and then spread
forward into the income statement over the lease term or period to first break.

The impact to be reflected in the forthcoming 2022 full year results is that 2021 figures have been
restated as set out below:


                                                     As originally
                                                        reported     Changes        Restated
                                                              £m         £m               £m



Gross rental income                                        241.6          8.8          250.4

Adjusted Net rental income                                 189.8        (15.4)         174.4

Adjusted earnings                                            80.9       (15.4)          65.5


The change of policy will also benefit 2022’s adjusted net rental income and adjusted earnings
by c.£2m. There are no other material changes to the Group’s income, net assets, or cash flows.

The Group’s earnings expectation set out in the Q3 trading, operational and rent collection
update dated 8 November 2022 remains unchanged with adjusted earnings not expected to
be less than £100m.

The Group will present 2021 and 2022 figures on this basis at the forthcoming 2022 full year results
on 9 March 2023.

ENDS

For further information contact:

Josh Warren
Director of Strategy, Commercial Finance and Investor Relations
Tel: 020 7887 1053

Natalie Gunson
Communications Director
Tel: 020 7887 4672

Hammerson has its primary listing on the London Stock Exchange and secondary
inward listings on the Johannesburg Stock Exchange and Euronext Dublin.


Sponsor: Investec Bank Limited