Hammerson writes down portfolio value by almost 2 billion pounds

British property giant Hammerson has written down the value of its shopping centre portfolio by almost 2 billion pounds as a year of on-and-off lockdowns took its toll on the business and rental income plummeted.

The company, which owns Bullring shopping centre in Birmingham and Brent Cross centre in London, said its portfolio value dropped to 6.33 billion pounds at the end of 2020 compared to 8.32 billion pounds a year earlier.

Net rental income for the year dropped 41 percent on a like-for-like basis to 157.6 million pounds, with adjusted earnings falling 82.9 percent to 36.5 million pounds.

The company reported an IFRS loss of 1.7 billion pounds, the biggest in its history.

Hammerson CEO Rita-Rose Gagné acknowledged the company had been “hit hard” by the pandemic, but was confident about its business model going forward.

She said: “As a business, Hammerson provides the places and social infrastructure where people want and need to be, and I am confident it will have a vital role in shaping neighbourhoods and communities in the future.

“Our immediate focus in 2021 is leading Hammerson through Covid-19 to safety. This means further disposals to strengthen the balance sheet, managing refinancing, and sharpening our operations to maximise income.

“We will then focus on realising the quality of our destinations to drive the business forward. We are currently working on a thorough strategic and organisational review that will map out a route to future growth to transform the business in the context of what will remain a tough economic and structural backdrop.”

Image: Hammerson