Hammerson has reduced its losses by almost 70% from £164m in 2022 to “just” £51m in the year ended 31 December 2023.
The improvement in its finances follows a programme of cuts across the business and its portfolio and lower revaluation losses. Gross administration costs were down by 14% on 2022, with a further 10% reduction planned for 2024.
Net debt reduced by £406m, or 23%, to £1.3bn, benefiting from disposal proceeds of £216m, the derecognition of £125m of secured debt, £104m of cash generated from operations and £74m of distributions from value retail.
Chief executive Rita-Rose Gagné said: “There is still more for us to do, but we are now entering a time where having the capability to invest and operate with discipline and conviction will be rewarded.”
She added: “While our eyes are open to the current macroeconomic environment, our occupiers are thriving and our visitor numbers are on the rise in our realigned portfolio. We are reaping the rewards of the investments we are making in our core portfolio alongside best-in-class occupiers, which underpins the high levels of demand for our space. We expect this trajectory to continue in the year ahead. We have a strong pipeline of leasing and repurposing opportunities.
“Over the last three years, we have delivered against all strategic milestones. We now have a core portfolio focused on urban locations which are evolving into my vision: vibrant, 24/7 multi-use estates. These destinations are fast-growing and part of the fabric and infrastructure of the cities in which we operate.”
Hammerson signed 306 leases representing £46m of headline rent over the period under review. It said rental levels had rebased and it was now signing deals at 12% ahead of ERV on a net effective basis, and 37% ahead of previous passing rent.
Despite the uptick in rental tone, however, gross income dipped in 2023, dropping from £125m to £208m
Gagné said the group had a “strong platform with long-term visibility of income” and while she remained “operationally disciplined” she was confident in the group’s ability to grow its top line and earnings off a new base.
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