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Hammerson delivers solid H1 performance
In it's H1 statement today, Hammerson Plc reprted that it had swung to a pre-tax profit of £335.6 million compared to a loss of £818.5 million for the same period last year. The REIT has a reputation for engineering complex urban regeneration schemes both in the UK and France.
The UK portfolio produced a rental income of £114.2 million, of which £91 million was from retail and £23.2 million from offices, whilst the vacancy rate overall was 4.5%, down roughly 1% on last year. The UK portfolio was revalued at June 30th at £3.655 billion, a 6.89% increase, and is producing a return on capital of 7.5%, and a total return of 10.5%.
The REIT has increased it's debt to £2.323 billion from £2.294 billion last year, with cash and deposits of £158 million it had a net debt of £2.1 billion. Gearing reduced from 72% last year to 67%.
Despit the fact that the company prefers France for current investment, Hammerson has a substantial UK pipeline of development schemes ahead of it having been given the green light on the £4.5 billion Brent Cross Cricklewood regeneration scheme, and it's Norman Foster designed Bishop's Place mixed use scheme in EC2, whilst in Southampton the Watermark WestQuay scheme has outline consent, the Sheffield Sevenstone development, and the Leeds Eastgate scheme are both at a similar stage.
John Nelson, Chairman of Hammerson, said:
"Although our markets have continued to recover from recession over the first half of 2010, the outlook remains uncertain. Against this background we are maintaining a clear focus on improving our portfolio, maximising the income from each of our assets and sound financial management.
We have made good progress this year in each of these areas. The underlying quality of our portfolio has been demonstrated in our results, with lower vacancy and growing income in a challenging environment. Over the period we have executed a number of transactions which will improve the future growth prospects of our business whilst releasing capital for potential reinvestment. We have advanced our valuable development pipeline in the UK and France which will provide a basis for additional future growth."
The adjusted NAV per share has increased from £4.21 at Dec 31 2009 to £4.54, largely due to the revaluation gain. An interim dividend of 7.15p per share has been declared, compared to 6.95p for the same period last year.
The UK portfolio produced a rental income of £114.2 million, of which £91 million was from retail and £23.2 million from offices, whilst the vacancy rate overall was 4.5%, down roughly 1% on last year. The UK portfolio was revalued at June 30th at £3.655 billion, a 6.89% increase, and is producing a return on capital of 7.5%, and a total return of 10.5%.
The REIT has increased it's debt to £2.323 billion from £2.294 billion last year, with cash and deposits of £158 million it had a net debt of £2.1 billion. Gearing reduced from 72% last year to 67%.
Despit the fact that the company prefers France for current investment, Hammerson has a substantial UK pipeline of development schemes ahead of it having been given the green light on the £4.5 billion Brent Cross Cricklewood regeneration scheme, and it's Norman Foster designed Bishop's Place mixed use scheme in EC2, whilst in Southampton the Watermark WestQuay scheme has outline consent, the Sheffield Sevenstone development, and the Leeds Eastgate scheme are both at a similar stage.
John Nelson, Chairman of Hammerson, said:
"Although our markets have continued to recover from recession over the first half of 2010, the outlook remains uncertain. Against this background we are maintaining a clear focus on improving our portfolio, maximising the income from each of our assets and sound financial management.
We have made good progress this year in each of these areas. The underlying quality of our portfolio has been demonstrated in our results, with lower vacancy and growing income in a challenging environment. Over the period we have executed a number of transactions which will improve the future growth prospects of our business whilst releasing capital for potential reinvestment. We have advanced our valuable development pipeline in the UK and France which will provide a basis for additional future growth."
The adjusted NAV per share has increased from £4.21 at Dec 31 2009 to £4.54, largely due to the revaluation gain. An interim dividend of 7.15p per share has been declared, compared to 6.95p for the same period last year.
Mon, 2nd Aug 2010