15 July 2021
Rent collection rates continue to improve
Since our last update on 20 April 2021, whilst some Covid-related restrictions have eased in all territories, measures remain in place affecting F&B, leisure and cinema operators in particular, although we expect this to be lifted in the coming weeks in the UK. Additional restrictions have also been announced in France taking effect from 21 July; it is too early to assess the operational impact.
Footfall trends in all territories remain encouraging, with seven-day averages currently sitting at around 70-80% of 2019 levels, following an initial spike on reopening. Many retailers continue to report high sales and conversion rates as visitors shop with purpose. These trends have been particularly positive in France during the first few days of the summer sales period.
Rent collection rates have continued to improve, with 89% of billable rents collected for FY20, and 68% for H1 21. Initial Q3 rent collection at 47% is ahead of Q1 and Q2 at the same point in time, and FY21 YTD collection now stands at 62%. We expect all rent collections to continue to improve as remaining Covid-related restrictions are lifted. We do not anticipate granting future concessions and all avenues to collect rents due are being pursued.
| Period | Total Demanded in Quarter (£m)1 | Total Waived, Written Off and Not Yet Due (£m) | Total Due (£m) | Total Collected (£m) | Total Outstanding (£m) | Collected of due % |
| FY 2020 | 264 | 26 | 238 | 211 | 27 | 89% |
| Q1 21 | 58 | 12 | 46 | 35 | 11 | 76% |
| Q2 21 | 54 | - | 54 | 33 | 21 | 61% |
| H1 21 | 112 | 12 | 100 | 68 | 32 | 68% |
| Q3 21 | 422 | 3 | 39 | 18 | 21 | 47% |
| 2021 YTD | 154 | 15 | 139 | 86 | 53 | 62% |
1. Excludes Value Retail
2. Decline in total demanded in Q3 predominantly reflects disposal of retail parks portfolio to Brookfield completed on 19 May 2021
ENDS
This announcement has also been released on the SENS system of the Johannesburg Stock Exchange and on Euronext Dublin.
Investor Contact
Hammerson
Josh Warren, Director of Strategy and Investor Relations
Tel: +44 20 7887 1053
Press Contacts
Hammerson
Catrin Sharp, Head of Corporate Communications
Tel: +44 20 7887 1063
FTI Consulting (for Hammerson)
Dido Laurimore
Tel: +44 20 3727 1000/ 0780 1654424
dido.laurimore@fticonsulting.com
Notes to editors
Hammerson
Hammerson creates vibrant, continually evolving spaces, in and around thriving European cities, with a focus on flagship retail destinations and premium outlets. As at 31 December 2020, our portfolio of high-quality venues had a value of £6.3 billion and included 21 flagship destinations in thriving cities and investments in premium outlet villages through our partnership with Value Retail. Key retail venues include Bullring & Grand Central, Birmingham, Bicester Village, Oxfordshire, Dundrum Town Centre, Dublin, and Les Terrasses du Port, Marseille.
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