Hammerson PLC reported on Friday it had trimmed its loss in 2021 as footfall benefited from relaxed Covid-19 restrictions, a boost in occupancy and improved rental collections.
The London-based retail-focused real estate investment trust posted a narrowed pretax loss at £408.0 million in 2021 from £1.74 billion in the prior year.
The company declared a final dividend of 0.2 pence in cash, with an enhanced scrip dividend alternative of 2.0 pence a share. It also paid out 0.2 pence in 2020.
Revenue declined by 7.5% year-on-year to £134.8 million from £145.8 million, largely due to disposals.
‘Since the beginning of 2021, we have made fundamental changes in our business, realigning our portfolio with £623 million of disposals, significantly strengthening the balance sheet, re-setting our organisation and putting in place a clear strategy for value creation focused on our prime urban estates,’ said Hammerson Chief Executive Rita-Rose Gagne.
Rent collection due for 2021 stood at 90%. For 2020, it stands at 99%.
Over the course of the year, Hammerson continued to support its occupiers, especially during periods of closure. During the third Covid-19 lockdown in the UK and Ireland in early 2021 it offered occupiers 50% rent free for the period of closure, with some exceptions for businesses who were able to continue to trade strongly.
For 12 months, the company’s vacancy rate remained the same at 5.7%.
‘We are already seeing the tangible results from our strategy with strong occupier leasing demand, reduced vacancies, improved collections, a lower cost base and clear path to value creation from our land bank,’ Gagne said.
Also on Friday, Hammerson announced that Non-Executive Director Andrew Formica, has informed will step down after six years and will not stand for re-election at the 2022 annual general meeting.
Hammerson also said that Senior Independent Director Gwyn Burr, will not stand for re-election at the 2022 AGM and will step down at the conclusion of the meeting.
Burr, first appointed to the board in May 2012, originally planned to step down at the 2021 AGM, but agreed to extend for a further year to provide continuity at a time of significant Board change.
Non-Executive Director Mike Butterworth, will succeed Burr as SID.
‘We are anticipating and starting to set new trends in how physical space is used in Europe’s major cities within our portfolio. Hammerson has a unique opportunity to be part of shaping future cities and transforming urban spaces,’ Hammerson said of its outlook.
‘We are a stronger business today. We have developed a robust strategy to take advantage of future opportunities. We will further strengthen the balance sheet by continuing to simplify the portfolio, as well as generating capital for reinvestment,’ it said.
Shares in Hammerson were down 0.7% at R 7.13 on Monday in Johannesburg, while its London shares were 1.0% lower at 34.29 pence.
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