Wrap Text
Half Year 2025 Results
Hammerson plc
(Incorporated in England and Wales)
(Company number 360632)
LSE and Euronext Dublin share code: HMSO JSE share code: HMN
ISIN: GB00BRJQ8J25
("Hammerson" or "the Company" or "the Group")
HAMMERSON plc – HALF YEAR 2025 RESULTS
Growth in gross rental income: up 5% like-for-like, up 11% including acquisitions
Acquisition of remaining 50% interest in Bullring and Grand Central for £319m1 and associated equity placing
Dividend growth of 5% and upgraded earnings outlook
Hammerson, the largest UK-listed owner and manager of prime retail and leisure anchored city destinations in the UK, France and
Ireland, today announces its half year results for the six months ended 30 June 2025, with highlights including:
• Like-for-like gross rental income up 5% and like-for-like net rental income up 4%, driven by active asset management
and strategic focus on high quality landmark destinations
• Total gross rental income up 11%, net rental income up 10%, following successful deployment of capital: £321m over
nine months at average 8.5% destination yield
• EPRA earnings of £48m, 9.9p per share (HY24: £50m, 9.9p) ahead of expectations - dividend increase of 5% to 7.94p
reflects confidence in earnings growth trajectory
• Portfolio valuation up 11% to £3.0bn – net revaluation gain of £26m is the first portfolio gain since HY17
• Also separately announced today – unconditional agreement to buy remaining 50% interest in Bullring and Grand
Central at 7.7% blended topped-up NIY2 and a 4% discount to June 2025 book value, and associated equity placing
• Opportunities to unlock further value, with disciplined capital allocation strategy to enhance returns for shareholders
• EPRA earnings guidance for FY25 raised to c.£102m (from c.£95m) - on track to achieve medium term financial
framework
Rita-Rose Gagné, Chief Executive of Hammerson, commented:
"Demand for our space has never been stronger, reflected in high occupancy, growing footfall and sales, and another period of
record leasing. I am pleased with our performance in the first half, which has been driven by our investments in recent years into
repositioning and placemaking, and data and analytics which allows us to better understand and anticipate the evolving
behavioural trends of consumers and occupiers.
The consumer spend where we have focused our portfolio is resilient and growing for the right product in the best destinations, as
brands are shifting towards fewer, higher-performing spaces. We have quickly recycled capital in a disciplined way to focus our
portfolio on the top 1% of locations where retail spend is concentrated. In just nine months we've put to work £321m to gain full
control of two more of our landmark city destinations at an average yield of 8.5%, delivering a step-change in income and
earnings. This morning, we also announced the £319m acquisition of our JV partner's stake in Bullring and Grand Central allowing
us to take full control of this top five UK destination, further enhancing income and earnings.
The strategy we've executed has delivered a prime portfolio with high visibility of long-term income streams and multiple paths to
further value creation. Our outlook is underpinned by positive structural societal and demographic trends in our catchments, where
we have the opportunity to capture greater market share. Our pure play platform, team and operational grip means that we are
well placed to maximise opportunities and deliver further rental, value, earnings, and dividend growth."
Key financial highlights
Six months ended 30 June 2025 30 June 2024 Change/LfL
Gross rental income3 £105m £94m +11% / +5%
Net rental income3 £80m £73m +10% / +4%
EPRA earnings £48m £50m -3%
Profit/(Loss) for the period (IFRS) £79m £(517)m n/a
EPRA earnings per share 9.9p 9.9p No change
Interim dividend per share 7.94p 7.56p +5%
As at 30 June 2025 31 December 2024
Valuation3 £2,956m £2,659m +11%
EPRA net tangible assets per share £3.81 £3.70 +3%
Loan to value3 35% 30% +5%
Net debt:EBITDA (rolling 12 months) 3 7.8x 5.8x +2.0x
1. Subject to customary adjustments, which at completion are expected to be c.£17m, principally with respect to cash in the corporate entities being acquired
2. NIY 6.7%, Topped-up NIY 7.7%
3. Proportionally consolidated
Successful deployment of capital enhancing top line growth
- Disciplined capital allocation strategy and execution to deliver enhanced value and returns for shareholders
- Deployed £321m into Brent Cross and Westquay over previous nine months at an average destination yield of
8.5%, generating c.£27m of additional annualised net rental income
- Strong, flexible balance sheet at this point in the cycle with LTV at 35% and net debt:EBITDA 7.8x – further
options to rotate capital
- Gross rental income +11%, net rental income +10%, also reflecting six months benefit of acquisition of Westquay
- Unconditional agreement to buy Bullring and Grand Central for £319m, expected to close in early August
o Funded by suspension of share buyback, existing cash resources, and equity placing of 10%
o Immediately 4% EPRA earnings per share accretive with minimal NTA per share dilution (on HY pro
forma basis) - additional annualised net rental income of c.£22m
o Pro forma LTV of c.37%, net debt:EBITDA of c.7.9x commensurate with solid IG credit rating
High quality of landmark city destinations and active asset management driving rental growth
- Like-for-like gross rental income +5%, like-for-like net rental income +4%
- We welcomed 79m visitors, 1m more than last year. Flagship footfall was up 1% for the Group outperforming
national averages, and strengthening as the year progressed with Q2 +3%; mirrored in like-for-like sales +1%,
with Q2 +2%
- Demand for our space has never been stronger as occupiers focus on fewer, high-performing stores in the
strongest catchments:
o Like-for-like leasing volume up 13% to 152 leases exchanged, representing £23m of headline rent at
100%, up 3% like-for-like, and £63m of rent contracted to first break at Hammerson share
o +45% ahead of previous passing (+13% like-for-like excluding voids) and +13% ahead of ERV on a net
effective basis – our 7th consecutive half-year of positive leasing spreads
o Robust pipeline of over £26m, with £8m in solicitors' hands and £18m in advanced negotiations
- Ongoing repositionings at Cabot Circus and The Oracle are replicating our success at Bullring and Dundrum
- Strong occupancy up from 94% to 95% year-on-year
- Portfolio valuation up 11% to £3.0bn, reflecting acquisition of Brent Cross – net revaluation gain of £26m is the
first portfolio gain since HY17 – HY25 total property return of 4%. EPRA NTA per share of 381p (FY24: 370p)
Further significant opportunities to unlock value
- Conversations continue on further JV consolidation and capital recycling opportunities
- Clear, consistent strategy to reposition and diversify income in our flagship destinations to drive higher returns:
o The Ironworks 122-unit residential scheme to commence lease-up at Dundrum in H2 25
o Planning permission achieved for historical Quakers Friars district at Cabot Circus, on-site in FY26
o Launch of Cergy 3 redevelopment, majority pre-let to Primark, expected to complete in HY27 and add
c.€2.5m of annualised NRI
- Progressing planning and enabling works to unlock further value from our c.70 acres of strategic land - Leeds
Eastgate land sold for £26m in first half at 23% premium to book value
EPRA earnings ahead of expectations – 5% dividend increase reflects confidence in earnings growth trajectory
o EPRA earnings of £48m (HY24: £50m), -3% due to disposals and phasing of redeployment
o EPRA earnings per share of 9.9p (HY24: 9.9p), reflecting accretive effect of share buyback
o Interim dividend of 7.94p pence per share, up 5% year-on-year, which will be paid as a PID
Outlook: Guidance for FY25 raised; on track for delivery of medium term financial framework
We are raising our guidance for FY25 both from better than expected like-for-like growth and the acquisition of Bullring and
Grand Central. Total GRI growth is now expected to be around 17% and EPRA earnings around £102m.
We are of course mindful of wider macroeconomic volatility. The consumer spend where we have focused our portfolio is
resilient and growing for the right product in the best destinations, as brands are shifting towards fewer, higher-performing
spaces.
Looking further ahead, we have a firm operational grip and high visibility of our long term income streams. The leasing
pipeline is robust and our acquisitions and in-flight repositioning projects underwrite further growth in the years to come.
This gives a clear growth trajectory for FY26 and FY27, and we remain confident in delivering our medium term financial
framework with 8-10% EPRA EPS CAGR. The person responsible for making this Announcement on behalf of the Company is Alex
Dunn, General Counsel & Company Secretary.
Results presentation today
Hammerson will publish a pre-recorded webinar for analysts and investors to present its financial results for the six months ended 30
June 2025 on its website at approximately 07.05am BST, to be followed by a Q&A session at 08.00am BST.
Date & time: Recording published to Group website on Thursday 31 July at approximately 07.05am BST, Q&A session at 08.00am BST
to joined via the telephone numbers below.
Webcast link: https://www.hammerson.com/investors/reports-results-presentations/2025-half-year-results
Conference call: Quote Hammerson when prompted by the operator, access code 779897
Please join the call five minutes before the booked start time to allow the operator to transfer you into the call by the scheduled start
time
France: +33 9 7073 3958
Ireland: +353 1 691 7842
Netherlands: +31 85 888 7233
South Africa: +27 87 550 8441
UK: +44 20 3936 2999
USA: +1 646 233 4753
The presentation and press release will be available at: https://www.hammerson.com/investors/reports-results- presentations 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
Investors:
Josh Warren, Director of Group Performance and IR Tel: +44 (0)20 7887 1053 josh.warren@hammerson.com
Media:
Oliver Hughes, Ollie Hoare and Charles Hirst, MHP Tel: +44 (0)20 3128 8100 Hammerson@mhpgroup.com
Tom Gough, Communications Consultant Tel: +44 (0)20 7887 1092 Tom.gough@hammerson.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
Six months ended 30 June 2025 30 June 2024 Note/Ref1
Income
Gross rental income2 £105m £94m 2
Net rental income2 £80m £73m 2
EPRA earnings3 4 £48m £50m 2
Net revaluation gains/(losses)2 £26m £(48)m 2
Profit/(Loss) for the period (IFRS) 5 £79m £(517)m 2
EPRA earnings per share3 4 6 9.9p 9.9p 11B
Basic earnings/(loss) per share6 16.2p (103.8)p 11B
Interim dividend per share (cash)6 7.94p 7.56p 17
Operational
Like-for-like gross rental income change2 4.6% 2.1% Table 3
Like-for-like net rental income change2 4.0% 1.7% Table 4
GRI:NRI ratio – flagships2 79% 80% Financial Review
Occupancy – flagships2 94.6% 94.3% Table 6
Leasing value (@100%)2 £23m £23m CEO review
Like-for-like leasing value change (@100%)2 +3% +35% CEO review
Leasing v ERV (principal leases) 2 +13% +10% CEO review
Leasing v Passing rent (principal leases) 2 +45% +61% CEO review
Like-for-like passing rent change – flagships2 2.4% 0.7% Financial Review
As at 30 June 2025 31 December 2024
Capital and financing
Valuation2 £2,956m £2,659m 3B
ERV - flagships2 £203m £180m Table 5
Like-for-like ERV change – flagships2 1.2% 1.8% Financial Review
Total accounting return3 5.1% (24.2)% Table 21
Total property return2 4.0% 2.1% Table 9
Capital return2 1.1% (3.4)% Table 9
Net debt2 £1,024m £799m Table 12
Liquidity2 £1,239m £1,417m Financial Review
Net debt:EBITDA (rolling 12 months)2 7.8x 5.8x Table 14
Interest cover2 6.29x 5.03x Table 15
Gearing2 56% 45% Table 16
Loan to value2 35% 30% Table 17
Net assets5 £1,848m £1,821m Balance sheet
EPRA net tangible assets (NTA) per share3 £3.81 £3.70 11C
1 Note/Ref refers to notes in the interim financial statements, tables in Additional Information or other sections of this release.
2 Figures presented on a proportionally consolidated basis. See 'Presentation of financial information' section of the Financial Review
for explanation.
3 These results include discussion of alternative performance measures (APMs) which include those described as EPRA and Headline.
These are described on page 11 of the Financial Review and reconciliations for earnings and net assets measures to their IFRS
equivalents are set out in note 10 to the interim financial statements.
4 2024 EPRA earnings and EPS have been restated to reflect inclusion of 'non-operating and exceptional items' as per updated EPRA
earnings guidelines published in September 2024. The restatement means previously reported EPRA earnings are the same as the
Group's previously published Adjusted earnings, and hence the latter measure will no longer be used. See page 11 of the Financial
Review and notes 2 and 10A to the interim financial statements for further details.
5 Attributable to equity shareholders.
6 2024 figure restated to reflect the 1 for 10 share consolidation undertaken in 2024 as explained in note 11 to the interim financial
statements.
Extract from the unaudited 2025 half year results:
This short form announcement is the responsibility of the Directors of the Company and has not been audited or
reviewed by the Company's auditors. 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 2025 half year results announcement
should be considered for any investment decisions. The full unaudited 2025 half year results announcement for
Hammerson plc is available for viewing at https://senspdf.jse.co.za/documents/2025/jse/isse/HMNE/HY2025.pdf and
on the Company's website at www.hammerson.com/investors. 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.
31 July 2025
Sponsor: Investec Bank Limited
Date: 31-07-2025 08:00:00
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