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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 Company”)
HAMMERSON plc – UNAUDITED HALF YEAR 2023 RESULTS
Strong first half, return to cash dividend, confident in the future
Rita-Rose Gagné, Chief Executive of Hammerson, said:
“We are pleased to have delivered a strong first half and announce a return to a cash dividend as we look to the future with
confidence. Our leasing momentum in 2022 has continued into the first half of 2023 and we have a strong pipeline for the second
half. Our core portfolio continues to attract the best occupiers which, combined with our emphasis on commercialisation and
placemaking, is creating exceptional destinations for customers. At the same time, we continue to transform our operating model
and platform, bringing more integrated and efficient ways of working while reducing costs.
We have further simplified our portfolio with the exit from minority stakes in France, our standalone development interests in
Croydon, and other non-core land, generating £215m in disposal proceeds, further strengthening the balance sheet whilst bringing
a sharper focus to investment opportunities in the core portfolio.
Our strategy is driven by the repositioning of our unique city centre destinations in some of Europe’s fastest-growing cities from
traditional retail-anchored footprints to a broader mix of uses. Today we are a more agile, market facing, asset-centric
Hammerson that continues to reshape our urban destinations to be fit for future lifestyles.”
Operational momentum continues
• Footfall and like-for-like sales remain strong, with the former up +4% year-on-year (UK +2%, France and Ireland +7%)
and the latter up +3% in the UK, +7% in France, and +2% in Ireland
• 134 leasing deals concluded in the period representing £18.3m of headline rent (£10.7m at our share, ) (+13% LFL)
− Principal leasing +20% ahead of previous passing rent (HY 22: +31%)
− Net effective rent +8% vs ERV (HY 22: +1%)
− WAULB 7.1 years; 9.4 years WAULT
− Strong leasing pipeline for the second half, with a further £15m deals in solicitors’ hands
• Flagship occupancy up +1% point year-on-year to 95%
• Rent collection: FY 22 now at 98%; HY 23 95%
• Value Retail GRI up +13%, 156 leases signed and 55 new openings, footfall and sales up +13% and +14% year-on-
year respectively
Robust financial performance
• Adjusted earnings up +15% to £56m (HY 22: £48m) benefitting from:
− Like-for-like GRI up +3% reflecting the continuation of strong leasing trends; like-for-like NRI up +2% YoY
− Gross administration costs down -12% year-on-year to £26m, on track to meet target of reducing costs by -20%
by FY 24, which will bring cumulative savings of 30% since FY 20
− Net finance costs -13% reflecting debt retirement and increased interest receipts from cash
• Adjusted earnings per share up 0.1p to 1.1p; basic loss per share of 0.0p (HY 22 earnings per share: 1.0p)
• Value Retail adjusted earnings of £13.4m (HY 22: £13.7m): GRI growth offset by higher finance and operational costs
• Value Retail cash distribution of £43m received
• Interim cash dividend per share of 0.72p per share, to be paid entirely as a PID, new dividend policy announced
• Group portfolio value of £4.7bn (FY 22: £5.1bn), values broadly stable, reduction principally due to disposals
− Capital return -0.3% (HY 22 -0.4%); Total return +2.5% (HY 22: 2.1%)
• IFRS loss of £1m (HY 22: £50m profit)
• EPRA NTA per share 52p (FY 22: 53p)
Stronger balance sheet
• Net debt down 24% to £1,318m (FY 22: £1,732m):
− Completed £215m disposals in the first half, bringing total since start of FY 22 to £410m. Remain on track to
complete £500m programme by end of FY 23
− Derecognition of £125m of secured debt following exit from Highcross and O’Parinor joint ventures
• Headline LTV 33% (FY 22: 39%), fully proportionally consolidated (FPC) LTV 43% (FY 22: 47%)
• Net debt to EBITDA of 7.7x (FY 22: 10.4x)
• Ample liquidity of £1.2bn (FY 22: £1.0bn), including undrawn committed facilities and £563m of cash
Outlook
Whilst the macroeconomic outlook remains uncertain, we have strong leasing and operational momentum and are well placed to
deliver another year of robust adjusted earnings and cash flow. We have maintained our strong operational grip on the business
and are on track for both our cost reduction and disposals targets. Given our progress of the last few years, we are returning to a
cash dividend.
Results presentation today:
Hammerson will hold a virtual presentation for analysts and investors to present its half year financial results for the six months
ended 30 June 2023, followed by a Q&A session.
Date & time: Thursday 27 July at 10.00 am (BST)
Webcast link: https://kvgo.com/IJLO/Hammerson_2023_Half_Year_Results
Conference call: Quote Hammerson when prompted by the operator
Please join the call 5 minutes before the booked start time to allow the operator to transfer you into the call by the scheduled start
time
France: +33 (0) 17037 7166
Ireland: +353 (0) 1 436 0959
Netherlands: +31 (0) 20 708 5073
South Africa: +27 (0) 800 980 512
UK: +44 (0) 33 0551 0200
USA: +1 786 697 3501
The presentation and press release will be available on:
www.hammerson.com/investors/reports-results-presentations/2023-half-year-results on the morning of results.
Enquiries:
Rita-Rose Gagné, Chief Executive Officer Tel: +44 (0)20 7887 1000
Himanshu Raja, Chief Financial Officer Tel: +44 (0)20 7887 1000
Josh Warren, Director of Strategy, Commercial Finance and IR Tel: +44 (0)20 7887 1053 josh.warren@hammerson.com
Natalie Gunson, Communications Director Tel: +44 (0)20 7887 4672 natalie.gunson@hammerson.com
Oliver Hughes, Ollie Hoare and Charles Hirst, MHP Tel: +44 (0)20 3128 8100 Hammerson@mhpgroup.com
Disclaimer
Certain statements made in this document are forward looking and are based on current expectations concerning future events
which are subject to a number of assumptions, risks and uncertainties. Many of these assumptions, risks and uncertainties relate
to factors that are beyond the Group’s control and which could cause actual results to differ materially from any expected future
events or results referred to or implied by these forward-looking statements. Any forward-looking statements made are based on
the knowledge and information available to Directors on the date of publication of this announcement. Unless otherwise required
by applicable laws, regulations or accounting standards, the Group does not undertake any obligation to update or revise any
forward-looking statements, whether as a result of new information, future developments or otherwise. Accordingly, no assurance
can be given that any particular expectation will be met, and reliance should not be placed on any forward-looking statement.
Nothing in this announcement should be regarded as a profit estimate or forecast.
This announcement does not constitute or form part of any offer or invitation to sell, or any solicitation of any offer to subscribe for
or purchase any shares or other securities in the Company or any of its group members, nor shall it or any part of it or the fact of its
distribution form the basis of, or be relied on in connection with, any contract or commitment or investment decisions relating
thereto, nor does it constitute a recommendation regarding the shares or other securities of the Company or any of its group
members. Statements in this announcement reflect the knowledge and information available at the time of its preparation. Liability
arising from anything in this announcement shall be governed by English law. Nothing in this announcement shall exclude any
liability under applicable laws that cannot be excluded in accordance with such laws.
Index to key data
Unless otherwise stated, figures have been prepared on a proportionally consolidated basis, excluding Value Retail as outlined in
the presentation of information section of the Financial Review.
Six months ended 30 June 2023 30 June 2022 Note/Ref
Income
Gross rental income † £106.3m £107.4m 2
Adjusted earnings – Value Retail a £13.4m £13.7m 2
Adjusted finance costs a £25.1m £29.0m 2
Adjusted earnings † a £55.9m £48.4m 2
Revaluation losses – Managed portfolio † £43.8m £40.6m 2
Revaluation losses – Group portfolio, including Value Retail † £17.8m £7.6m Table 9
(Loss)/Profit for the period (IFRS) £(1.2)m £50.3m 2
Adjusted earnings per share † a, b 1.1p 1.0p 10B
Basic (loss)/earnings per share b (0.0)p 1.0p 10B
Interim dividend per share (cash/enhanced scrip) 0.72p 0.2p/2.0p 17
Operational
Like-for-like gross rental income † 3.1% 16.2% Financial Review
Like-for-like net rental income † 2.3% 74.5% Table 6
Occupancy – flagships 95.1% 93.8% Table 4
Leasing activity £10.7m £10.5m n/a
Leasing v ERV (principal leases) +8% +1% n/a
Leasing v Passing rent (principal leases) +20% +31% n/a
Passing rent £184.5m £201.6m Table 2
Like-for-like passing rent change 4.2% 1.2% n/a
ERV £183.0m £212.7m Table 2
Like-for-like ERV change 0.1% (0.3)% Financial Review
EPRA cost ratio (including vacancy costs) † 36.6% 38.5% Table 8
Capital and financing
As at 30 June 2023 31 December 2022
Managed portfolio value £2,805m £3,220m 3B
Group portfolio value (including Value Retail) £4,694m £5,107m 3B
Total property return (including Value Retail) † 2.5% (0.7)% Table 9
Capital return (including Value Retail) † (0.3)% (5.8)% Table 9
Net debt c £1,318m £1,732m Table 13
Gearing 51.8% 67.8% Table 19
Loan to value – headline 33.1% 39.3% Table 18
Loan to value – fully proportionally consolidated 42.9% 47.1% Table 18
Liquidity £1,217m £996m Financial Review
Interest cover † 3.59x 3.24x Table 17
Net debt : EBITDA † 7.7x 10.4x Table 16
Net assets £2,569m £2,586m Balance sheet
EPRA net tangible assets (NTA) per share 52p 53p 10C
† HY 22 income statement figures have been restated to reflect the IFRIC Decision on Concessions with further information set out in notes
1B and 5 to the interim financial statements.
a These results include discussion of alternative performance measures (APMs) which include those described as Adjusted, EPRA
and Headline as well as constant currency (where current period exchange rates are applied to the prior period's results). Adjusted,
EPRA and Headline measures are described in note 1C to the interim financial statements and reconciliations for earnings and net
assets measures to their IFRS equivalents are set out in note 9 to the interim financial statements.
b Adjusted earnings per share and basic loss per share for 2022 have been restated to reflect the bonus element of scrip dividends as
set out in note 10 to the interim financial statements.
c Proportionally consolidated basis as set out in the Financial Review.
Extract from the unaudited 2023 half year results:
This short form announcement is the responsibility of the Directors of the Company. The information disclosed is only a summary of the
information in the full announcement and does not contain full or complete details. The full unaudited 2023 half year results announcement
should be considered for any investment decisions. The full unaudited 2023 half year results announcement for Hammerson plc is available
for viewing at https://senspdf.jse.co.za/documents/2023/jse/isse/HMNE/HY2023.pdf and on the Company's website at
www.hammerson.com/investors. The full unaudited 2023 half year results announcement is also available for inspection at the Company's
registered office and the offices of our sponsor during normal business hours and is available at no charge. Alternatively, copies of the full
announcement may be requested from the Company's investor relations department by emailing info@hammerson.com.
Hammerson has its primary listing on the London Stock Exchange and secondary inward listings on the Johannesburg Stock Exchange and
Euronext Dublin.
27 July 2023
Sponsor:
Investec Bank Limited
