Hammerson has posted improved full-year financial results for the 12 months ended 31 December 2023.
The value of Hammerson’s portfolio fell from £5.1bn at the end of 2022 to £4.7bn mainly due to disposals and derecognitions and the company reduced its IFRS loss from £164m in 2022 to £51m last year. However, the continuation of its disposal programme saw the company strengthen its balance sheet with net debt down 23% to £1,326m.
Hammerson said it enjoyed a record year of leasing in 2023, completing 306 deals, representing £46m of headline rent.
Rita-Rose Gagné, chief executive of Hammerson, said: “Our city centre destinations are in high demand. This year we delivered a positive performance across our key strategic, operational and financial metrics. Like-for-like gross rental income was up 6%, following another record year of leasing. Occupancy remains strong and footfall and sales were up again. We’ve strengthened our operational platform, whilst reducing costs by 14%. As a result, adjusted earnings rose 11% to £116m, whilst net debt was down 23%, with ample liquidity.
“Over the last three years, we have delivered against all strategic milestones. We now have a core portfolio focused on urban locations which are evolving into my vision: vibrant, 24/7 multi-use estates. These destinations are fast growing, and part of the fabric and infrastructure of the cities in which we operate. Whilst our eyes are open to the current macro-economic environment, our occupiers are thriving and our visitor numbers are on the rise in our realigned portfolio.
“We are reaping the rewards of the investments we are making in our core portfolio alongside best-in- class occupiers, which underpins the high levels of demand for our space. We expect this trajectory to continue in the year ahead. We have a strong pipeline of leasing and repurposing opportunities. There is still more for us to do, but we are now entering a time where having the capability to invest and operate with discipline and conviction will be rewarded.”
