Hammerson H1 revenues surge

Property development and investment firm Hammerson said on Thursday that it had continued to make "good strategic, financial and operational progress" in the first half.

Hammerson reported a 154% surge in interim earnings to £51.0m, driven by stronger like-for-like gross and net rental income, up 16% and 48%, respectively, as well as a 20% reduction in gross administration costs and a 25% drop in net finance costs.

The FTSE 250-listed group highlighted that it had bounced back from an IFRS loss of £376.0m in the first half of 2021 to an IFRS profit of £50.0m in the six months ended 30 June. Adjusted earnings per share were up 0.7p at 1.1p.

Hammerson added that its group portfolio value at the end of the period was £5.3bn, with yields stable and a total return of 2.1%. It also completed £194.0m of disposals throughout the half.

Hammerson also said it had declared an interim cash dividend of 0.2p per share, and, subject to shareholder approval, intends to provide an enhanced scrip dividend alternative of 2.0p per share.

Chief executive Rita-Rose Gagné said: "We continued to make good strategic, financial, and operational progress in the first half.

"We have also continued to make progress on our pre-development pipeline, with key milestones in the first half met that enable further options for value creation. We are a better, more resilient, and financially secure business as a result of the actions taken since the beginning of 2021. We are conscious of the potentially volatile environment ahead and remain focussed on delivering our strategy. We have identified a number of levers within our control to continue to create value. We see more opportunities ahead."

As of 0925 BST, Hammerson shares were up 8.60% at 23.49p.

Reporting by Iain Gilbert at Sharecast.com