Hammerson PLC Pre AGM trading update (2932X)

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RNS Number : 2932X

Hammerson PLC

25 April 2023

Hammerson plc ("Hammerson" or the "Group")

25 April 2023

Pre AGM trading update

Hammerson plc today announces a trading update for the three months ended 31 March 2023 which is being issued ahead of the Company's Annual General Meeting to be held at 0900 BST on 4 May 2023 at Marble Arch House, London.

Rita-Rose Gagné, Chief Executive of Hammerson, said:

"We have maintained our focus on execution during the first few months of the year. We have a strong operational grip which is delivering top line growth, with continued momentum in leasing and a strong pipeline. We have further reduced costs, with more to come as we create a sustainable and agile platform.

We have exited minority stakes in France and other non-core interests, bringing total disposals since the start of 2021 to over GBP840m, and a sharper focus on our core portfolio of city centre assets and land. We have further strengthened the balance sheet and maintain a disciplined approach to capital allocation. Looking forward, we have strong momentum and remain on track to return to cash dividends as previously guided."

Strong Q1 reflecting consistent execution.

   --    Like-for-like gross rental income growth of +5% reflecting robust leasing, car parking and commercialisation performance 
   --    Like-for-like net rental income was up +5% benefiting from solid collections (FY 22 96%; 

Q1 23 92%), lower bad debt charges and tenant incentive impairments

-- Gross administration costs decreased 13% year-on-year in line with our commitment to reduce these by 20% by the end of 2024

   --    Value Retail has seen a strong start to the year with spend per visit up +3% 

Footfall and sales

   --   Footfall in the UK and France up +6% year-on-year; Ireland +13% 
   --   Sales in the UK up +6% year-on-year; France +11%; Ireland +7% 
   --   Value Retail footfall up +14% year-on-year; sales +17% 

Leasing and occupancy

-- Continued momentum on leasing with 61 leases signed year-to-date, representing GBP9m of rent on a 100% basis

-- Headline rent +18% ahead of previous passing rent, and +5% ahead of ERV on a net effective basis

   --   Diverse leasing mix including non-fashion, restaurant, leisure, and services 
   --   Continued demand with a further GBP16m in solicitors' hands 
   --   Occupancy up year-on-year to 95% 

Valuations

-- Q1 managed portfolio valuations flat on 31 December 2022; slight increase to ERVs offset by marginal adjustment to yields

Disposals

   --   The Group remains disciplined in its disposal programme 

-- Since full year 2022 results in March, we have completed disposals including Hammerson's share of Italie Deux and Italik, delivering a cumulative c.GBP410m of our GBP500m 2023 target; the Group remains confident of completing the programme on schedule

Balance sheet and liquidity

   --   GBP22m of cash distributions received from Value Retail 

-- Including disposals to date and debt written down, the Group's credit metrics have further improved:

 
                                Pro-forma   31 December 2022 
 
        *    Headline LTV          35%            39% 
 
        *    FPC LTV               44%            47% 
 
        *    Net debt/EBITDA       9x            10.4x 
 

-- The Group's RCF facility of GBP613m extended to April 2026 with pro forma liquidity of GBP1.2bn

   --   No further Group unsecured debt maturities not covered by existing cash until 2026 

Investor Enquiries:

Josh Warren, Director of Strategy, Commercial Finance, and Investor Relations

   Tel: [phone]    Email: [e-mail] 

Media Enquiries :

Natalie Gunson, Communications Director, Hammerson

   Tel: [phone]    Email: [e-mail] 

MHP for Hammerson

Oliver Hughes

   T: [phone]   E: Hammerson @mhpgroup.com 

Ollie Hoare

   T: [phone]       E: [e-mail] 

ENDS

This announcement has also been released on the SENS system of the Johannesburg Stock Exchange and on Euronext Dublin.

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April 25, 2023 02:00 ET (06:00 GMT)