Wrap Text
Unaudited 2019 half-year results
Hammerson plc
(Incorporated in England and Wales)
(Company number 360632)
LSE share code: HMSO JSE share code: HMN
ISIN: GB0004065016
(“Hammerson” or “the Company”)
Monday 29 July 2019
HAMMERSON PLC - UNAUDITED 2019 HALF-YEAR RESULTS
90% OF 2019 DISPOSAL TARGET MET WITH MAJOR FRENCH SALE
Disposal Programme and Portfolio Optimisation
• Disposal update: Total disposals of £456 million; 90% of £500 million target for 2019 achieved
o Contracts exchanged for sale of 75% of Italie Deux and Italik extension for £423 million,
representing a net initial yield of 4.1%
o Progressing additional transactions on asset sales across the portfolio
o Committed to the sale of UK retail parks over the medium term; disposals of £33m in H1 2019
• Debt reduction: Pro forma net debt reduced to £3.1bn, gearing 61%, headline LTV 37%
• City Quarters: Planning application submitted for Martineau Galleries, Birmingham, the first major
City Quarters scheme; revised mixed-use application submitted for The Goodsyard, Shoreditch,
London
Key Financials
• EPS & dividend: Adjusted EPS of 14.0p (-7.3%) impacted by the on-going disposal programme;
interim dividend of 11.1p unchanged
• Lfl NRI: Group -0.1%; UK flagship destinations -6.8% impacted by CVAs and administrations; premium
outlets +11.1%
• NAVPS & portfolio valuations: H1 NAVPS of £6.85 (-7.2%); Low transaction volumes and a weak UK
retail market impacted portfolio valuations. The Group produced a capital return of -4.4%; UK
flagships -9.1%; Premium outlets +4.5%; French flagships -3.9%; Ireland flagships -3.2% and retail parks
-10.9%
Operational Update
• Repurposing of space: 92% of new UK flagship leases signed to non-fashion and F&B brands
• Occupancy: High level of Group occupancy maintained at 96.7%. UK flagship occupancy 96.4%;
Ireland 99.5%; France 97.0% and retail parks 96.7%
• Tenant restructuring: UK flagship LFL NRI impact -1.8% in H1 2019 (H1 2018 -0.9%)
o 45 units across UK flagships affected by tenant restructuring in H1 2019, 84% still trading and
annualised rent loss of £1.5m
o Over the past 18 months, 49% of UK & Ireland stores impacted by CVAs have been
Category A (no reduction to rent), compared to 37% for the wider market
• Leasing: Total UK rent from flagship leasing -1% vs previous passing rent: high street fashion -25%;
consumer brands, aspirational fashion and F&B +27%
• Footfall: Positive footfall growth across all territories with outperformance of the national footfall
index for both
UK and French flagships
o UK flagship footfall +0.5%; French flagships +0.5%; and Ireland flagships +0.6%
• Premium outlets: Sustained exceptional performance with premium outlets now accounting for 27%
of the Group’s property portfolio
o Continued uplift in brand sales: Value Retail +11% and VIA Outlets +10% vs H1 2018
o Accelerated footfall growth: Value Retail +7% and VIA Outlets +8% against H1 2018
• City Quarters: Planning application submitted for Martineau Galleries, Birmingham, the first major
City Quarters scheme; revised mixed-use application submitted for The Goodsyard, Shoreditch,
London
• Net Positive: Further progress towards 2030 target: Energy usage fell by14% following investment in
energy efficient technology, delivering a 13% reduction in carbon emissions across the portfolio
David Atkins, Chief Executive of Hammerson, said: “The UK retail landscape is undoubtedly challenging and
traditional high street fashion is under pressure. However, our focus on shifting our line-up towards
categories with greater customer appeal and rental growth potential has resulted in over 90% of new
leasing to leading consumer and F&B brands. We’ve seen a stronger performance in Ireland and France,
alongside continued exceptional results from premium outlets which demonstrates the benefits of our
diversified portfolio.
“Our absolute priority remains to reduce debt. We stated our intention to achieve over £500m of disposals in
2019 and even in this tough environment where deals are taking longer to transact, we are now most of the
way there. We will continue to pursue additional sales throughout 2019 and into 2020 to further strengthen
our balance sheet.”
Half-year 2019 results at a glance
30 June 30 June
Six months ended: 2019 2018 Change
Net rental income (1) £156.6m £178.5m ?12.3%
Adjusted profit (2) £107.4m £120.0m ?10.5%
Adjusted earnings per share (2) 14.0p 15.1p ?7.3%
Headline earnings £101.2m £102.5m ?1.3%
Headline earnings per share 13.2p 12.9p 2.3%
IFRS (loss)/profit (including non-cash valuation changes)
(3) £(319.8)m £55.7m
Basic (loss)/earnings per share (3) (41.8)p 7.0p
Interim dividend per share 11.1p 11.1p
30 June 31 December
As at: 2019 2018
Portfolio value (4) £9,542m £9,938m ?4.0%
Equity shareholders’ funds £4,994m £5,433m ?8.1%
EPRA net asset value per share (2) £6.85 £7.38 ?7.2%
Gearing (5) 69% 63% +6p.p.
Loan to value - headline (5) 40% 38% +2p.p.
Loan to value - fully proportionally consolidated (5) 46% 43% +3p.p.
(1) Proportionally consolidated basis, excluding premium outlets. See page 18 of the Financial review for a description of the presentation of financial information.
(2) Calculations for adjusted and EPRA figures are shown in note 8 to the financial statements on pages 43 and 46.
(3) Attributable to equity shareholders, includes portfolio non-cash revaluation losses of £423 million, including premium outlets (30 June 2018: £40 million).
(4) Proportionally consolidated, including premium outlets. See page 18 of the Financial Review for a description of the presentation of financial information.
(5) See Table 18 on page 64 for supporting calculations for gearing and loan to value.
Results presentation today:
The results presentation is being held today at 9.00 a.m. at FTI Consulting, 200 Aldersgate, Aldersgate Street, London EC1A 4HD. A live
webcast of Hammerson’s results presentation will be broadcast today at 9.00 a.m. via the Company’s website, www.hammerson.com.
At the end of the presentation you will be able to participate in a question and answer session by dialling: +44 (0) 207 192 8000 (UK),
+353 (0) 14319615 (Ireland) +27 10500 7996 (South Africa), +33 (0) 17670 07 94 (France), +31 (0) 207143545 (Netherlands) and
+16315107495 (USA). Please quote confirmation code 3878546. A playback of the webcast will be available at www.hammerson.com.
Financial calendar:
Ex-dividend date (SA) 28 August 2019
Ex-dividend date (UK) 29 August 2019
Record date (UK and SA) 30 August 2019
Interim dividend payable (UK and 7 October 2019
SA)
Enquiries:
David Atkins, Chief Executive Officer Tel: +44 (0)20 7887 1000
Timon Drakesmith, Chief Financial Officer and MD, Tel: +44 (0)20 7887 1000
premium outlets
Richard Shaw, Director of Finance Tel: +44 (0)20 7887 1820 richard.shaw@hammerson.com
Josh Warren, Head of Investor Relations Tel: +44 (0)20 7887 1109 josh.warren@hammerson.com
Catrin Sharp, Head of Corporate Communications Tel: +44 (0)20 7887 1063 catrin.sharp@hammerson.com
John Waples, Dido Laurimore, FTI Consulting Tel: +44 (0)20 3727 1000
Extract from the unaudited 2019 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
2019 half-year results announcement should be considered for any investment decisions. The full unaudited 2019 half-
year results announcement for Hammerson plc is available for viewing at
https://senspdf.jse.co.za/documents/2019/jse/isse/HMNE/HY2019.pdf and on the Company's website at
www.hammerson.com/investors. The full unaudited 2019 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 a secondary inward listing on the Johannesburg
Stock Exchange.
Sponsor:
Investec Bank Limited
Date: 29/07/2019 08:00:00
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