Shopping centre operator Hammerson posts smaller annual loss

Shopping centre operator Hammerson has reported a smaller annual loss and a drop in debt levels, as the retail property sector recovers from Covid-19 shop closures in the UK and the rest of Europe.
Commercial real estate firms with non-essential retail tenants were battered by Covid-19 lockdowns and restrictions, hurting valuations of their properties amid steep fall in rental income.
Hammerson owns a 50% stake in the Dundrum, Ilac and Pavillion shopping centres in Dublin and a 40% stake in Kildare Village.
“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,” chief executive Rita-Rose Gagné said.Hammerson, which has been selling non-core assets, said its net debt fell to £1.82 billion as at December 31, £415m lower than levels at the start of 2021.

The FTSE 250-listed firm, which runs shopping centres such as the Bullring in Birmingham and Italie Deux in Paris, said annual gross rental income was £242m, down £45m year-on-year, largely due to disposals.

The owner of the Brent Cross shopping centre also said its loss for the year ended December 31, 2021 was $429.1m compared with a loss of £1.73 billion a year earlier.

On an adjusted basis, annual profit more than doubled to £81m from £37m a year earlier.