To view the PDF file, sign up for a MySharenet subscription.

HAMMERSON PLC - Results for the year ended 31 December 2020

Release Date: 12/03/2021 09:00
Code(s): HMN     PDF:  
Wrap Text
Results for the year ended 31 December 2020

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”)


2020 defined by Covid-19 disruption

Rita-Rose Gagné, Chief Executive of Hammerson, said:
“By any measure, 2020 was an unprecedented year with every business and household affected by Covid-19. Our teams have worked tirelessly and shown
remarkable commitment throughout the pandemic to ensure that we continue to keep our colleagues, customers and communities safe.
“As our results show, Hammerson was hit hard. The retail sector, already in the grip of major structural change, has been significantly impacted by the
restrictions imposed to tackle the pandemic, and we’ve also seen an increasing number of retail failures. Combined, this has resulted in the largest fall in net
rental income and UK asset values in the Group’s history.
“However, if this pandemic has highlighted anything, it is how much we all crave human contact as inherently social beings. As a business, Hammerson provides
the places and social infrastructure where people want and need to be, and I am confident it will have a vital role in shaping neighbourhoods and communities in
the future.
“Our immediate focus in 2021 is leading Hammerson through Covid-19 to safety. This means further disposals to strengthen the balance sheet, managing
refinancing, and sharpening our operations to maximise income. We will then focus on realising the quality of our destinations to drive the business forward. We
are currently working on a thorough strategic and organisational review that will map out a route to future growth to transform the business in the context of
what will remain a tough economic and structural backdrop.”

Financial Overview
–    IFRS loss: £1.7bn primarily due to property revaluation deficit (2019 IFRS loss of £781m)
–    Net Rental Income: £158m (-41% on a like-for-like basis excluding premium outlets) impacted by Covid-19 closures, tenant restructuring and higher
     provisions for bad debt and tenant incentives
–    Adjusted earnings and EPS: £36.5m (2019: £214.0m); EPS: 1.6p (2019: 12.8p restated for rights issue)
–    Dividend: Final dividend proposed of 0.2p per share, with an enhanced scrip dividend alternative of 2.0p per share
–    Portfolio valuations: Portfolio value £6,338m (2019:£8,327m) Group capital return of -20.9%: UK flagships -35.8%, France flagships -15.3%, Ireland flagships
     -17.5%, retail parks -23.3%, Value Retail –6.2%
–    Net assets: EPRA Net Tangible Assets (NTA) of £3,317m (-26%) or £0.82 per share (2019: £1.16 restated for rights issue)
–    Net debt: Net debt £2,234m reduced by £609m (21%) due principally to proceeds from the rights issue and disposal of substantially all of VIA Outlets
–    Liquidity: £1,748m (2019: £1,210m), including cash of £503m
–    Credit ratios: gearing 70%, unencumbered asset ratio of 1.89x, interest cover ratio 1.81x and fully proportionally consolidated LTV 46%

Operational overview
–    Rights issue and disposals: £532m net proceeds from rights issue and net proceeds from disposals totalling £328m. In 2021, £73m from the sale of Brent
     South Shopping Park and exchange of the minority stakes in Espace Saint-Quentin and Nicetoile
–    Occupancy: Group occupancy of 94.3% (2019: 97.2%)
–    Rent collection: 76% of 2020 rent collected for the Group. During two main national lockdowns in 2020, average rental waiver of 1.4 months and deferral
     of 0.3 months
–    Leasing: Leasing impacted during the pandemic, leasing activity was down 35% vs 2019
–    Footfall: Severely impacted by Covid-19 closures and city centre locations of flagships. Delivered a measured recovery during periods of reopening
–    Positive Places: Covid-19 closure of destinations significantly reduced utility demand; energy reduction of -18% and carbon emissions of -29%

Board changes
–   Chair of the Board and CEO: Robert Noel joined as Chair of the Board in September; Rita-Rose Gagné as CEO in November
–   Non-Executive Directors: Desmond (Des) de Beer joined the Board in June; Mike Butterworth joined in January 2021
–   CFO: James Lenton announced in January 2021 he will step down as CFO and the search for his successor is ongoing
Full Year 2020 results at a glance
                                                                                                                        31 Dec                           31 Dec
 12 months ended:                                                                                                        2020                           2019(1)                     Change
 Net rental income (2)                                                                                                £157.6m                           £308.5m                    - 48.9%
 Adjusted profit                                                                                                       £36.5m                           £214.0m                    - 82.9%
 Adjusted earnings per share                                                                                             1.6p                    12.8p restated                    - 87.5%
 IFRS loss (3)                                                                                                    £(1,734.8)m                         £(781.2)m                    -122.1%
 Basic loss per share (3)                                                                                             (76.9)p                  (46.6)p restated                     -65.0%
 Final dividend per share                                                                           0.2p (2.0p enhanced scrip)                                -                       n/a
 Full year dividend per share                                                                       0.4p (4.0p enhanced scrip)                   5.1p restated                        n/a

                                                                                                                       31 Dec                            31 Dec
 As at:                                                                                                                  2020                              2019
 Portfolio value (4)                                                                                                  £6,338m                           £8,327m                    - 23.9%
 Equity shareholders’ funds                                                                                           £3,209m                           £4,377m                    - 26.7%
 EPRA net tangible assets (NTA) per share                                                                               £0.82                             £1.16                    - 29.3%
 Gearing (5)                                                                                                              70%                               71%                     -1p.p.
 Loan to value - fully proportionally consolidated (5)                                                                    46%                               45%                     +1p.p.

1.   2019 per share metrics have been restated to reflect the impact of the share consolidation and rights issue in 2020.
2.   Proportionally consolidated, excluding premium outlets. See page 16 of the Financial review for a description of the presentation of financial information.
3.   Attributable to equity shareholders, includes portfolio non-cash revaluation losses of £1,596m (2019: £828m loss).
4.   Proportionally consolidated, including premium outlets. See page 16 of the Financial review for a description of the presentation of financial information.
5.   See Tables 22 and 23 on pages 85 and 86 for supporting calculations for gearing and loan to value.

Results presentation today
Hammerson will hold a virtual presentation (Friday 12th March) at 09.30am (GMT) for analysts and investors to present its full year financial results for the year
end 31 December 2020 followed by a Q&A session. Please see the webcast link and dial-in details below:
itle:                                     Hammerson 2020 Full-year results presentation
Webcast link:                    
Dial-in details:
London                                     +44 (0) 33 0551 0211
Paris                                      +33 (0) 1 7037 7167
New York                                   +1 646 843 4609
Amsterdam                                  +31 (0) 20 708 5074
Johannesburg                               +27 (0) 11 589 8300
Dublin                                     +353 (0) 1 553 0196
Confirmation Code:                         4081358#

Please join the call five minutes before the scheduled start time as it will start promptly. There will be an opportunity to participate in the Q&A session by
submitting questions on the webcast page or via conference call. A playback of the webcast will be available after the presentation at

Financial calendar
Ex-dividend date (SA)                                                 31 March 2021
Ex-dividend date (UK & Ireland)                                        1 April 2021
Record date                                                            6 April 2021
Final dividend payable                                                  13 May 2021

Rita-Rose Gagné, Chief Executive                           Tel: +44 (0)20 7887 1000
James Lenton, Chief Financial Officer
Richard Shaw, Director of Finance
Josh Warren, Head of Investor Relations                    Tel: +44 (0)20 7887 1053
Catrin Sharp, Head of Corporate Communications             Tel: +44 (0)20 7887 1063
John Waples and Dido Laurimore, FTI Consulting             Tel: +44 (0)20 3727 1000

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 2020 year end results announcement should be
considered for any investment decisions. The 2020 full year results announcement for Hammerson plc is available for viewing at and on the Company's website at
investors. The full 2020 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

Date: 12-03-2021 09:00:00
Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE'). 
The JSE does not, whether expressly, tacitly or implicitly, represent, warrant or in any way guarantee the truth, accuracy or completeness of
 the information published on SENS. The JSE, their officers, employees and agents accept no liability for (or in respect of) any direct, 
indirect, incidental or consequential loss or damage of any kind or nature, howsoever arising, from the use of SENS or the use of, or reliance on,
 information disseminated through SENS.

Share This Story