Hammerson swings to loss

Property development and investment group Hammerson said on Thursday that it swung to a loss in the first half due to disposals.

The company made an IFRS loss of £1.2m versus a profit of £50.3m a year earlier. It said this was mainly due to losses on the disposal of the its interests in the Italie Deux and Croydon shopping centres and an impairment charge related to the derecognition of its joint venture investment in the O'Parinor shopping centre.

Revenue rose to £69.1m during the half from £63.7m.

Hammerson said footfall and like-for-like sales remain "strong", with the former up 4% year-on-year and the latter up 3% in the UK, 7% in France and 2% in Ireland.

Chief executive Rita-Rose Gagne said: "We are pleased to have delivered a strong first half and announce a return to a cash dividend as we look to the future with confidence. Our leasing momentum in 2022 has continued into the first half of 2023 and we have a strong pipeline for the second half.

"Our core portfolio continues to attract the best occupiers which, combined with our emphasis on commercialisation and placemaking, is creating exceptional destinations for customers. At the same time, we continue to transform our operating model and platform, bringing more integrated and efficient ways of working while reducing costs.

"We have further simplified our portfolio with the exit from minority stakes in France, our standalone development interests in Croydon, and other non-core land, generating £215m in disposal proceeds, further strengthening the balance sheet whilst bringing a sharper focus to investment opportunities in the core portfolio."