Recovering sentiment among UK consumers prompted retailers to expand their operations, resulting in a 23 per cent rise in new rents for Hammerson (HMSO), to about £30m. Mounting demand pushed prices north as well, helping the retail landlord - whose shopping malls include the Bullring in Birmingham and Bristol's Cabot Circus - to deliver an 8 per cent rise in net rental income to £306m.
Retail sales in the UK grew by 2.6 per cent in 2014, but fell 1 per cent in low-growth France. That didn't stop Hammerson eking out a 2 per cent rise in like-for-like net rental income across the Channel as the arrival of new tenants drove rents up. Indeed, Hammerson's new Marseille shopping centre boasts an occupancy rate of 98 per cent and has attracted 8m visitors since opening in May last year. That showcases the group's knack for drawing customers to its French shopping malls despite the gloomy economic backdrop, according to chief executive David Atkins.
A number of exciting UK projects augur well for short-term growth. Mr Atkins is especially optimistic about plans to extend the Brent Cross shopping centre and build retail space, offices and homes in the up-and-coming 'Tech City' area of Shoreditch. Broker Investec expects adjusted 2015 net asset value (NAV) of 686p (from 637p in 2014).
| HAMMERSON (HMSO) | ||||
|---|---|---|---|---|
| ORD PRICE: | 690p | MARKET VALUE: | £5.4bn | |
| TOUCH: | 690-691p | 12-MONTH HIGH: | 708p | LOW: 537p |
| DIVIDEND YIELD: | 3.0% | TRADING STOCK: | - | |
| PREMIUM TO NAV: | 9% | NET DEBT: | 45% | |
| INVEST PROPERTIES: | £6.71bn | |||
| Year to 31 Dec | Net asset value (p) | Pre-tax profit (£m) | Earnings per share (p) | Dividend per share (p) |
|---|---|---|---|---|
| 2010 | 493 | 620 | 87.2 | 16.0 |
| 2011* | 529 | 302 | 41.1 | 16.6 |
| 2012 | 540 | 94 | 12.6 | 17.7 |
| 2013 | 570 | 326 | 45.3 | 19.1 |
| 2014 | 634 | 703 | 95.7 | 20.4 |
| % change | +11 | +116 | +111 | +7 |
Ex-div: 12 Mar Payment: 24 Apr *Restated to reflect the sale of the London office business | ||||
