Hammerson NAV and profit rises in 2016

Hammerson produced a 4.1% rise in net asset value per share during 2016 as well as an 8.8% rise in net rental income.

For the year to 31 December NAV per share rose to £7.39 while rental income came in at £346.5m, which helped boost adjusted profit 9.4% to £230.7m. Earnings per share rose 8.6% to 29.2p, compared to 26.9p in 2015.

The group’s dividend also rose 8.6% to 13.9p, while the group’s portfolio rose in value by 19.1% during the year to £9.971bn.

David Atkins, chief executive of Hammerson, said: “I am pleased to report another set of strong financial results, with sector-leading earnings and dividend growth reflecting robust operational performance across all parts of the portfolio. During the year we have significantly grown and enhanced the portfolio, adding new retail space in faster-growth markets including Dublin, Leeds and Birmingham, and extending our presence in the European outlets market. To fund these growth opportunities, we successfully refinanced over £1.2bn of debt and executed our planned disposal programme, generating £635m.

“The strength of the results we are reporting today is a clear reflection of the success of the specialist retail strategy we set out five years ago. Looking ahead, despite some UK retail headwinds and geopolitical uncertainty, I am confident that we have a resilient and adaptable business with multiple opportunities to drive similar levels of growth and therefore continue to deliver sector-leading income-focused returns.”

During the year the retail property giant let 13.2m sq ft of space, and reduced average cost of debt to 3.1%. The group’s gearing rose five percentage points to 59%, while loan to value rose three percentage points to 41%.

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