Hammerson cuts losses as it heads towards recovery
Shopping centres group Hammerson has posted smaller losses and reported a 122 per cent rise in earnings as it recovers from a collapse in retail rent during the pandemic.
The group, which owns the Bullring and Grand Central in Birmingham, has reported adjusted earnings hit £81 million in 2021, up from £37 million in 2020, as it felt the lift of raised rental income and a recovery in value retail.
Losses tightened to £429 million, down from £1.73 billion in 2020, which the firm said was largely due to a portfolio revaluation.
Hammerson said it was now beginning to see the lift of a footfall recovery across and a rising demand for prime retail space, but chief executive Rita-Rose Gagné said there was still more work to be done.
“Since the beginning of 2021, we have made fundamental changes in our business, realigning our portfolio with £623 million of disposals, significantly strengthening the balance sheet, re-setting our organisation and putting in place a clear strategy for value creation focused on our prime urban estates.
"The pandemic has accelerated trends in our operating environment, with people engaging with physical space in new ways. Our role is to create and curate relevant, appealing and sustainable spaces for the future.
"We are already seeing the tangible results from our strategy with strong occupier leasing demand, reduced vacancies, improved collections, a lower cost base and clear path to value creation from our land bank.
"We have more to do. Today we are a forward-looking organisation with our assets at the heart of driving value creation."
Hammerson said it was experiencing a strong rebound in footfall, with flagship occupancy up to 96 per cent, from 93 per cent half-way through 2021.
It expected “strong momentum” to carry it into 2022 as Covid restrictions fully relax.
