Hammerson narrows FY losses despite drop in revenue

Hammerson has reported narrowing losses in its most recent full-year results despite a drop in revenue.

The British property giant made a pre-tax loss of 164.2 million pounds in 2022, down from a loss of 429.1 million pounds a year earlier.

The London-based company said the narrowing loss was largely attributed to a 282 million pound revaluation deficit, of which 96 percent was in Q4.

That came despite a 4.2 percent drop in revenue to 131.4 million pounds.

The company, which was hit hard by the pandemic as locations across its physical estate were forced to close during lockdown, said its group portfolio value fell 5 percent during the year to 5.1 billion pounds due to a revaluation deficit and disposals.

“Today, Hammerson is a better, more agile, and resilient business,” chief executive Rita-Rose Gagné told investors.

“Our results are evidence of another year of significant strategic, operational and financial progress, against a volatile macroeconomic and market backdrop,” she said.

In terms of operational trends, footfall across Hammerson’s estate improved 11 percentage points in the period, ending the year at 90 percent of 2019 levels, while sales remained ahead of 2019 levels.

Gagné continued: “In the last two years, we have simplified and focused the core portfolio on city centres, delivering 628 million pounds of gross proceeds, strengthened the balance sheet, recycled capital for investment in our core assets and developments, and have made rapid progress on the transformation of our operating model and platform, resulting in a significantly reduced and reducing cost structure.”

Looking ahead, Hammerson said it is targeting a further 20 percent reduction in gross administration costs by the end of 2024, and to complete its 500 million pound disposal programme by the end of the year.

“We have strong momentum and are well placed to deliver another year of robust underlying earnings and cash flow and anticipate a return to cash dividends during the year,” the company said.