Hammerson share price jumps as group reports profit growth

Hammerson’s (LON:HMSO) shares have been trading higher today after the blue-chip property developer said that ongoing strong demand for premium retail space in the UK had boosted its full-year performance.

The company’s pre-tax profit for the year to the end of December came in at £731.6 million, up from £702.1 million a year earlier, as its net gains from property investments, including those with joint ventures and associates, increased. Gross rental income climbed to £236 million from £206.5 million, driven by strong demand for premium space in its UK shopping centre estate. Hammerson secured 400 lettings over the course of the year, driving 2.3 percent like-for-like growth in its net rental income stream over the year.

The group further revealed that its occupancy rate at the end of December was 97.7 percent, up from 97.5 percent a year earlier. The property group added that it would pay a final dividend of 12.8p per share, 10 percent up from 11.6p. Its total dividend for the year will be 22.3p, marking a 9.3 percent increase year on year.
“We continue to recycle capital into assets best positioned to deliver value creation, with the acquisition in Ireland, Grand Central and Festival Park aligned with our strategy to own and manage prime retail destinations across Europe,” CEO David Atkins stated. “Looking ahead, whilst we recognise the global economic and political uncertainties, we remain confident that the business will continue to deliver sustainable, attractive returns,” Atkins added.
As of 10:33 GMT, Hammerson’s share price was 2.99 percent better off at 551.00p. The FTSE 100 meanwhile stood 1.86 percent higher at 5,813.85 points.
As of 10:56 GMT, Monday, 15 February, Hammerson plc share price is 551.50p.