Hammerson FY pre-tax profits slump on revaluation losses

Retail property group Hammerson said full year pre-tax profits slumped by more than half to £322.8m from £731.6m as it booked a £24m revaluation loss on properties compared with a £245m gain a year earlier.

Net revaluation losses on the group's shopping centres and retail parks were £13.4m compared with a net gain of £367.5 million in 2015. Basic earnings per share fell to 40.2p from 92.8p.

In the UK, shopping centre values fell by £6m and retail parks by £118m, with £39m of this adverse movement due to the increase in stamp duty land tax in April 2016

Despite the fall in profits, the final dividend was lifted 8.6% to 13.9p a share.

Hammerson said the retail market was "polarising" with the growth in online shopping, adding that international tourists arriving with specific plans to shop were increasing.

"The key trend is the growth of multichannel retail which leads retailers to use both physical space and online platforms together to drive sales. As a result, the experience of the retail journey and the convenience of shopping for goods are more important than ever," it said.

Despite the fall in profits, the final dividend was lifted 8.6% to 13.9p a share.

David Atkins, chief executive, said: "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.

“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."

Hammerson shares were up 2.39% to 578p at 0910GMT.