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Highlights
- Financial Performance: Reported like-for-like GRI up 1.6% YoY; underlying like-for-like NRI increased by 0.2%.
- Balance Sheet Strength: Net debt down 40% to £799m, with a lower Net Debt/EBITDA ratio of 5.8x and LTV reduced to 30%.
- Dividend Growth: Full-year dividend rises by 4% to 15.63p per share, reflecting the company’s new policy of distributing 80-85% of adjusted earnings.
Hammerson (LSE:HMSO), the UK’s largest listed pure-play retail and leisure property owner, has reported steady financial results for FY24 despite ongoing portfolio adjustments. The company, which operates prime city destinations across the UK, France, and Ireland, highlighted progress in strengthening its balance sheet while strategically repositioning assets to meet evolving consumer and occupier demands.
Financial Performance
For FY24, Hammerson’s reported like-for-like gross rental income (GRI) rose by 1.6% year-on-year, while underlying like-for-like GRI grew by 3.0%, with assets that recently underwent investments delivering up to 7% growth. Net rental income (NRI) reflected the ongoing UK repositioning efforts, with a slight 0.5% decline on a reported basis but a 0.2% increase on an underlying level.
Adjusted earnings came in at £99 million, down from £116 million in FY23, primarily due to asset disposals. Adjusted EPS stood at 19.9p (FY23: 23.4p). Meanwhile, the company reported an IFRS loss of £526 million, largely driven by a £497 million Value Retail impairment and H1 2024 revaluation losses.
Despite these adjustments, Hammerson’s financial position strengthened considerably. Net debt dropped 40% year-on-year to £799 million, bringing the net debt-to-EBITDA ratio down to 5.8x (from 8.0x in FY23) and reducing loan-to-value (LTV) to 30%. These improvements contributed to favorable credit rating adjustments from both Moody’s and Fitch.
Dividend Increase and Portfolio Value
The company’s closing portfolio value stood at £2.7 billion, with assets under management (AUM) totaling £4 billion. The EPRA net tangible assets (NTA) per share came in at 370p, down slightly from 382p at the half-year mark.
Hammerson’s Board recommended a final dividend of 8.07p per share, in line with its new policy of paying out 80-85% of adjusted earnings. This brings the total dividend for FY24 to 15.63p per share — a 4% increase from the previous year.
Strategic Focus and FY25 Outlook
Looking ahead, Hammerson is optimistic about 2025, buoyed by a positive finish to 2024 in terms of footfall, sales, and leasing activity. The company has already secured £8.6 million worth of leases for 2025, with discussions underway for additional acquisitions.
Major new openings are set to launch at Cabot Circus and The Oracle, bringing diversified experiences to these destinations, while momentum continues to build at flagship locations like Bullring and Dundrum. Hammerson’s data-driven platform is expected to drive further operational efficiencies, with organic growth from recent investments set to bolster the bottom line.
