Hammerson (HMSO) is expected to show the benefit of the significant upturn in fortunes for the retail property market when it releases full-year results on Monday. Investors will also be keen to see what progress chief executive David Atkins has made in his drive to delivering greater income returns. He is already on record as forecasting that net rental income will rise from £259m in 2012 to £320m by 2015.
Indications that the economic upturn is gaining traction have also made it easier to offload mature property and shift the capital into higher-return opportunities. Last December Hammerson sold Queensgate shopping centre in Peterborough, a joint venture with insurer Aviva (AV.), for £202m, and last month the group bought a majority stake in Saint Sébastien shopping centre in Nancy for £109m. This latest acquisition will generate annual gross rent of £7m, giving a yield of 6 per cent on the purchase price.
