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Hammerson plc – Results for the year ended 31 December 2021
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”)
THIS ANNOUNCEMENT CONTAINS INSIDE INFORMATION FOR THE PURPOSES OF ARTICLE 7 OF THE MARKET ABUSE REGULATION (EC NO. 596/2014) ("MAR")
HAMMERSON Plc – RESULTS FOR THE YEAR ENDED 31 DECEMBER 2021
Rebuilding a strong business
Rita-Rose Gagné, Chief Executive of Hammerson, said:
“Since the beginning of 2021, we have made fundamental changes in our business, realigning our
portfolio with £623m 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.”
Summary financial and operating performance:
- Adjusted earnings up 122% to £81m (FY20: £37m), benefiting from increased net rental income, a
strong recovery in Value Retail earnings, and lower finance costs. 2021 earnings benefit from a
£17m year-on-year increase in surrender premiums and a £12m net rental income contribution
from in year disposals
- Adjusted earnings per share up 38% to 1.8p (FY20: 1.3p – restated1)
- IFRS loss of £429m (FY20: £1,735m loss) largely due to £470m Group portfolio revaluation deficit
(H1 £361m, H2 £109m). Basic loss per share of (9.8)p (2020: (62.4)p – restated1)
- Group portfolio value of £5.4bn, with capital returns beginning to stabilise in the second half: FY -
7.9%, H2 -1.7%
- EPRA net tangible assets (NTA) per share reduced to 64p from 69p at 30 June and 82p at FY20
Strengthened balance sheet
- £503m of disposals contracted in 2021, including £70m from Silverburn due to complete in March
2022
- Net debt down 19% to £1.8bn at 31 December 2021
- Ample liquidity of £1.5bn in undrawn committed facilities and cash at 31 December 2021
- Headline LTV 39% (FY20: 40%), fully proportionally consolidated (FPC) LTV 47% (FY20: 46%)
- Further £120m disposal of Victoria, Leeds completed in 2022 bringing total disposals to £623m since
the beginning of 2021
- pro forma net debt down 27% to £1.6bn, liquidity £1.7bn
- pro forma headline LTV 37%, FPC LTV 45%
- Investment grade credit rating re-affirmed by Moody’s in February 2022; outlook changed from
negative to stable
Strong operational trends
- Strong footfall recovery in all territories when restrictions relaxed; occupier sales ahead of footfall
- Strong demand for prime space: flagship leasing volume of £25m, up 150% on 2020; flagship
occupancy improved to 96% from 93% at half year
- Headline leasing broadly in line with previous passing rent, net effective rent -11% vs ERV (H1 -
18%, H2 -5%)
- Strong momentum on leasing into 2022, with YTD deals above previous passing rent and in line
with ERV
- Maintained focus on rent and arrears collection: FY20 now at 99%; FY21 90%; FY22 YTD 83%
- Strong recovery in footfall, brand sales and leasing in Value Retail
Dividend
- Subject to shareholder approval, the Board is proposing a final dividend of 0.2 pence per share
in cash with an enhanced scrip dividend alternative of 2.0 pence per share. Both the Final 2021
Dividend and the Enhanced Scrip Dividend Alternative will be paid as a Property Income
Distribution ("PID"), net of withholding tax where appropriate.
Results presentation today:
Hammerson will hold a presentation for analysts and investors to present its full year financial results for the 12 months
ended 31 December 2021, followed by a Q&A session.
Date & time: Friday, 4 March 2022 at 09:00 am (GMT)
Webcast link: https://kvgo.com/IJLO/hammerson_2021_full_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) 1 7037 7166
Ireland: +353 (0) 1 436 0959
Netherlands: +31 (0) 20 708 5073
South Africa: +27 (0) 11 589 8302
UK: +44 (0) 33 0551 0200
USA: +1 212 999 6659
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 and Investor Tel: +44 (0)20 7887 1109 josh.warren@hammerson.com
Relations
Natalie Gunson, Communications Director Tel: +44 (0)20 7887 4672 natalie.gunson@hammerson.com
John Waples, Dido Laurimore and Richard Gotla, FTI Tel: +44 (0)20 3727 1000
Consulting
Timetable of events
Ex dividend date (SA) 30 March 2022
Ex-dividend date (UK & Ireland) 31 March 2022
Record date 1 April 2022
Final dividend payable 10 May 2022
Shareholders will be provided with further details in relation to the final cash dividend and enhanced scrip dividend
alternative in due course. The dates above are subject to change and any changes made will be communicated as
soon as practicably possible.
1. Adjusted and basic loss per share for 2020 have been restated from 1.6p and (76.9)p respectively as a result of the application of IAS33
‘Earnings per share’ in respect of the bonus element of scrip dividends declared by the Company.
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 2021 year
end results announcement should be considered for any investment decisions. The 2021 full year results announcement
for Hammerson plc is available for viewing at https://senspdf.jse.co.za/documents/2022/jse/isse/HMNE/FY2021.pdf and
on the Company's website at https://www.hammerson.com/investors/reports-results-presentations. The full 2021 final
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 InvestorRelations@hammerson.com
Hammerson has its primary listing on the London Stock Exchange and secondary inward listings on the Johannesburg
Stock Exchange and Euronext Dublin.
4 March 2022
Sponsor:
Investec Bank Limited
Date: 04-03-2022 09:00:00
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