Hammerson PLC
LSE:HMSO
Hammerson PLC
Born in the bustling era of post-war redevelopment, Hammerson PLC carved its niche in the UK as a pioneering force in property development. Emerging in 1942, the company positioned itself at the crossroads of urban sprawl and commercial expansion. Over the decades, Hammerson honed its expertise in the development and management of prime retail destinations, creating vibrant centers that merge shopping, leisure, and vibrant social spaces. As the years progressed, Hammerson strategically shifted its focus from mere property ownership to crafting a full-fledged retail experience. This transformation was not just about bricks and mortar; it was about curating spaces that foster community, drive foot traffic, and create economic epicenters within urban areas.
In the modern retail landscape, Hammerson generates revenue through a multi-faceted approach. At its core, the company derives income primarily from its vast portfolio of prime retail properties, including iconic shopping centers, premium outlets, and city-center developments across the UK, Ireland, and continental Europe. By leasing these spaces to a diverse array of retail tenants, Hammerson capitalizes on rental incomes while delivering an engaging customer experience that maximizes visitor stays and spending. Additionally, strategic partnerships and joint ventures enable Hammerson to share risks and tap into new market segments, while its focus on sustainability and placemaking aligns its properties with contemporary consumer and tenant expectations. In essence, Hammerson's business model thrives on its agility to adapt and innovate within the ever-evolving retail ecosystem.
Born in the bustling era of post-war redevelopment, Hammerson PLC carved its niche in the UK as a pioneering force in property development. Emerging in 1942, the company positioned itself at the crossroads of urban sprawl and commercial expansion. Over the decades, Hammerson honed its expertise in the development and management of prime retail destinations, creating vibrant centers that merge shopping, leisure, and vibrant social spaces. As the years progressed, Hammerson strategically shifted its focus from mere property ownership to crafting a full-fledged retail experience. This transformation was not just about bricks and mortar; it was about curating spaces that foster community, drive foot traffic, and create economic epicenters within urban areas.
In the modern retail landscape, Hammerson generates revenue through a multi-faceted approach. At its core, the company derives income primarily from its vast portfolio of prime retail properties, including iconic shopping centers, premium outlets, and city-center developments across the UK, Ireland, and continental Europe. By leasing these spaces to a diverse array of retail tenants, Hammerson capitalizes on rental incomes while delivering an engaging customer experience that maximizes visitor stays and spending. Additionally, strategic partnerships and joint ventures enable Hammerson to share risks and tap into new market segments, while its focus on sustainability and placemaking aligns its properties with contemporary consumer and tenant expectations. In essence, Hammerson's business model thrives on its agility to adapt and innovate within the ever-evolving retail ecosystem.
Strong Leasing: The company signed 317 leases in 2022, its best performance since 2018, with lease terms and rents above previous passing levels and ERV.
Improved Earnings: Adjusted earnings rose 60% to £105 million, driven by like-for-like NRI growth of 29% and reduced costs.
Portfolio Simplification: £195 million of disposals completed in 2022, with a further £300 million targeted for 2023 to reduce debt and optimize capital allocation.
Cost Reductions: Gross administration costs fell 17% in 2022, and the company targets a further 20% reduction by 2024.
Stable Balance Sheet: Net debt cut by 4% to £1.7 billion, with headline LTV at 39% and strong liquidity, maintaining investment-grade ratings.
Dividend Return: The Board anticipates a return to cash dividends in 2023, following completion of scrip dividends in 2022.
Positive 2023 Outlook: Expecting mid-single digit GRI growth, strong leasing pipeline, and continued robust operational trends.
