Rental property firm Hammerson’s share price surged almost 10% yesterday after it said rental collections had increased and were expected to improve even further.
The shares traded at an intraday high of R4.87. They have decreased by 21.02% in the past six months.
In its third quarter trading, operational and rent collection update, the group said rent collections to date were at 93%.
“Year to date, 221 leases have been signed, and this represents £17 million (R347m) of headline rent, 43% ahead of previous passing rent and 2% ahead of estimated rental value on a net effective basis.”
More than half of leasing had been to non-fashion categories, including food and beverages, leisure and services. Best-in-class fashion brands and new concepts remained core to its offer, Hammerson said.
Demand for prime space remained high, with group occupancy at 95% including the Cergy extension in France. Its pipeline for the fourth quarter was strong, it said.
Hammerson said it now expected the 2022 financial year adjusted earnings to be not less than £100m. Earnings had also benefited from lower administration and net finance costs and a better-than-expected performance from Value Retail.
“United Kingdom and Ireland footfall has continued to show an improving trend to currently 90% of 2019 levels, with France at 95%. Footfall consistently exceeds national indices,” it said.
Sales continued to be above 2019 levels with UK third-quarter sales increasing by 4%, France by 3% and Ireland by 2%.
“Footfall at Value Retail in the third quarter was around 90% of 2019 levels, with brand sales approaching 93%, while spend per visit is around 4% ahead of 2019,” the group said.
Value Retail had completed the refinancing of Bicester Village, in England, in September.
The group announced on November 3 that it intended to exercise the par call option on the remaining €235.5m of 2023 Eurobonds with existing cash on the balance sheet.
Hammerson delivered £194m in disposals in the first half of the year.
Discussions were ongoing with a range of interested parties on a further £300m of non-core disposals and it said it remained confident of the completion of these disposals by the end of 2023, as previously guided.
BUSINESS REPORT