Hammerson lifts earnings forecast on strong rental outlook
Hammerson
26.68p
17:05 19/04/24
Hammerson raised its expectations in an update on Thursday, announcing that assuming no further periods of Covid-19-related disruption in December, it now anticipated adjusted earnings of at least £60m for the 2021 financial year.
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The FTSE 250 shopping centre investor said the hike was down to an improved outlook for net rental income, primarily from stronger collections rates, and a better-than-expected performance from its value retail assets.
It said footfall in the UK and Ireland currently stood at about 90% of the comparable period in 2019 before the outbreak of the pandemic, with France at around 85%.
“Sales continue to show encouraging trends, reflecting higher spend per visit and larger basket sizes, particularly in the UK where October sales were 6% higher than 2019,” the board said in its statement.
“Rent collection rates continue to improve,” it added.
Fourth quarter collections at the end of November stood at 86% for the group, including a “significant improvement” in France to 83% since its last update.
The UK, meanwhile, was at 89%, and Ireland at 83%.
“For the 2021 financial year, the group collection rate is currently 84%, [and] for 2020, 96%.”
At 1136 GMT, shares in Hammerson were up 0.22% at 31.46p.