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HAMMERSON PLC - Operational and Rent Collection Update

Release Date: 19/01/2021 09:00
Code(s): HMN     PDF:  
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Operational and Rent Collection Update

Hammerson plc
(Incorporated in England and Wales)
(Company number 360632)
LSE and Euronext Dublin share code: HMSO  JSE share code: HMN
(“Hammerson” or “the Company”)

19 January 2021

Operational and rent collection update

The safety and wellbeing of our customers, colleagues, and partners, remains Hammerson’s number
one priority, and the business continues to have robust and extensive safety measures in place across
the portfolio to ensure customers can access essential retail and other services.

Market conditions have remained challenging since our last update in October, with national lockdowns
introduced in the UK, Ireland, and France in November, and significant restrictions in place across the
portfolio through December. There are currently national lockdowns in Ireland and the UK, with
significant restrictions in place across France and continental Europe.

Operational update

Q4 2020

    •   Encouraging footfall recoveries during the Christmas trading period from 30 November to 24
        December, following the easing of lockdowns at the end of the November.
    •   France and Ireland flagships benefited from seven-day average footfall of up to 90% of the prior
    •   The UK delivered a more variable footfall performance with city centre-focused flagships
        peaking at more than 60% of prior year, and 100% for retail parks.
    •   During this period, up to 75% of occupiers in the UK were open or offering Click & Collect; 95%
        in France; and 100% in Ireland.

Q1 2021 to date

    •   Since the introduction of tighter restrictions, as at 17 January, in the UK approximately a quarter
        of the Company’s occupiers are open, either offering essential retail, Click & Collect, and/or
        takeaway and delivery services.
    •   Meanwhile, Hammerson’s destinations in France are now subject to a 6pm national curfew,
        primarily impacting F&B and leisure brands.
    •   In Ireland, Hammerson’s flagships are only offering essential retail and takeaway or delivery
        services. Following the Irish Government’s temporary ban on Click & Collect for non-essential
        retail around a quarter of occupiers continue to operate.
    •    Footfall has declined in line with the introduction of new restrictions, particularly across UK
        flagships and Ireland.

Value Retail

Just over half of the Villages in the Value Retail portfolio are currently closed, following the introduction
of additional lockdowns across Europe. Performance has been robust during periods when Villages have
been open and the virtual shopping service has expanded strongly during periods of closure.

Rent collection

Despite the challenging trading environment, our leasing teams have worked hard to reach agreements
with retailers, and rent collection has increased significantly.
At a Group level, 41% of Q1 2021 rent due had been received, with the UK collecting 41% (36% flagships;
64% retail parks), France 46%, and Ireland 31%.

                 Amount           Deferred/n                                                                    Collected Collected at
    Rent                                                 Collected           Waived        Outstanding
                 payable          ot yet due                                                                     of due   15 October
    Net                                                    (£m)               (£m)            (£m)
                  (£m)               (£m)*                                                                         (%)        (%)
         Q1             67.7             -                  65.6               -               2.1                 97          97

         Q2             68.7            3.4                 41.4              14.5             9.4                 63          59

         H1            136.4            3.4                107.0              14.5            11.5                 80          79

         Q3             68.6            1.3                 48.8               0.6            17.9                 73          59

         Q4             60.2             -                  39.6               6.3            14.3                 66          41

       FY20            265.2            4.7                195.4              21.4            43.7                 75          66

       Q121             61.5           12.9                 19.8                -             28.8                 41           -

*2020 balances reflect amounts originally due in 2020 but agreed with tenants to be deferred into 2021. 2021 balance reflects amounts not
yet payable as they principally relate to monthly billings due later in Q1

Liquidity update

Following receipt of the equity issuance in September and the disposal of the majority of its share of
VIA Outlets in November (gross proceeds £829m), Hammerson has made the following repayments of
the Group’s gross debt, in accordance with its stated intentions for use of net proceeds in the Prospectus
in August 2020:

     •     Full repayment of drawings under the Group’s Revolving Credit Facilities (£568 million drawn at
           30 June 2020) completed in October
     •     Offers of prepayment at par to private placement noteholders, in accordance with the
           Amendment Agreement announced on 1 July 2020, have been made for a total of £226m, being
           30% of the total net proceeds in excess of £50m. Acceptances of this offer totalled £169m and
           prepayment was completed in December, saving £4.3m of interest cost on an annualised basis.
    •      Full repayment of the £75m maturing May 2021 issued under Hammerson’s approved £300m
           Covid Corporate Financing Facility (CCFF) was completed in December 2020.

Following these transactions Hammerson continues to maintain high levels of liquidity, having access to
its £1,245m of available undrawn Revolving Credit Facilities as well as substantial cash holdings.

Share count for per share metrics

Following the completion of the Rights Issue and the Enhanced Scrip Dividend Alternative, the total
number of issued 5 pence ordinary shares in the Company is 4,057,298,174. The weighted-average
number of shares for 2020 per share earnings calculations, taking into account the bonus factor relating
to the Rights Issue, is approximately 2.3bn. The weighted average number for 2019 is approximately

Hammerson has its primary listing on the London Stock Exchange and secondary inward listings on the
Johannesburg Stock Exchange and Euronext Dublin.

Sponsor: Investec Bank Limited

Investor Contact

Josh Warren, Hammerson, Head of Investor Relations
Tel: +44 20 7887 1053
Richard Shaw, Hammerson, Director of Finance
Tel: +44 207 887 1820

Press Contacts
Catrin Sharp, Head of Corporate Communications
Tel: +44 20 7887 1063

FTI Consulting (for Hammerson)
Dido Laurimore
Tel: +44 20 3727 1000/ 0780 1654424

Notes to editors


Hammerson create vibrant, continually evolving spaces, in and around thriving European cities, with a
focus on flagship retail destinations and Premium Outlets. As of 30 June 2020, our portfolio of high-
quality venues had a value of £7.7 billion and included 20 flagship destinations in thriving cities, and
investments in premium outlet villages through our partnership with Value Retail and the VIA Outlets
joint venture. Key retail venues include Bullring & Grand Central, Birmingham, Bicester Village,
Oxfordshire, Dundrum Town Centre, Dublin, and Les Terrasses du Port, Marseille.

Date: 19-01-2021 09:00:00
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