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Hammerson profit rises as net rental income jumps 7%
FTSE 100 property development and investment company Hammerson - which announced a £3.4bn takeover of Intu Properties in December - reported a rise in full-year pre-tax profit on Monday as net rental income jumped 7%.
In the year to the end of December 2017, pre-tax profit increased to £413.4m from £322.8m as net rental income rose to £370.4m from £346.5m. Group leasing volumes were up 34% on 2016, with increases across all segments, while occupancy rose to a record 98.3% from 97.5% the year before, helping to push adjusted earnings per share up 6.5% to 31.1p.
Like-for-like net rental income was up 1.7% across the portfolio, while net rental income at the group's UK shopping centres was up 1.8% but net rental income at its UK retail parks declined 2.5%.
Chief executive David Atkins said: "Not all retail is equal and not all locations are well placed to support the future needs of brands. But with 440 million visitors a year, our unrivalled consumer insight and relationship with retailers ensures that we target the next generation of brands, as we proactively rotate retailers and expand winning formats. In this evolving retail marketplace, winning retailers increasingly choose our exceptional destinations to achieve their growth potential and so, our role as an expert operator of retail property is more significant than ever before.
"The highlight of 2017 was the announcement of our proposed acquisition of intu. In line with our strategy, the transaction will further enhance our portfolio and operating platform, providing further opportunity to expand in higher growth markets. We are on track with our acquisition timetable and integration planning."
At 0807 GMT, the shares were up 1% to 481.10p.