Date: 21 Feb 2011
Hammerson posts 17.6% rise in NAV per share in full year results.
The REIT posted a strong improvement in property value, with adjusted NAV per share up 17.6% as of 31 December 2010 from a year earlier. Strong investor demand for prime properties continues in both the UK and France, attracted by high quality income streams, which has lifted values in both countries. Capital values increased 12.5% in the UK and 1.9% in France, resulting in 9.3% for the group, with UK Shopping Centres and French retail parks performing best.
This is on the back of like-for-like net rental income growth of 3.5%. This resulted in adjusted profit before tax increased by 11.2%, adjusted earnings per share up 1%. Overall, lower net rental income reflected disposals in the year. Occupancy is at 97.3%, compared with 95.4% a year earlier.
15% of the portfolio was recycled in 2010. Disposals of mature assets in 2010 raised £555 million, and £219 million was invested in attractive acquisition opportunities.
With gearing of 52%, the Group "has the flexibility to invest in acquisitions and developments offering superior growth prospects, whilst continuing to recycle capital."
Construction has started at Les Terrasses du Port, Marseille, redevelopment work is being completed at 54-60 rue du Faubourg Saint-Honoré, and planning consents were received for developments and extensions at Brent Cross Cricklewood, Bullring and Silverburn.
John Nelson, Chairman of Hammerson, said:
"This is a strong set of results which reinforces the strategy we are pursuing. Our rigorous focus on the performance of each asset is improving occupancy and income. We have sold mature assets and reinvested in properties which offer better growth prospects through active management. Looking forward, our financial flexibility and continued asset recycling will allow us to continue to take advantage of opportunities which we believe will arise in the coming period."
In aggregate, disposals in the year raised £555 million, and £219 million was invested in acquisitions. These transactions resulted in recycling the equivalent of 15% of the portfolio, which at the year-end was valued at £5.3 billion.
In France, stakes we're sold in both Espace Saint Quentin and O'Parinor, whilst retaining the management of the schemes. In London, the Exchange Tower and remaining stake in Bishops Square we're sold.
Purchases included Leadenhall Court and a stake in 10 Gresham Street. Hammerson took full control of Battery Retail Park in Birmingham by acquiring the partner's 75% stake, and acquired Wrekin Retail Park in Telford. In February 2011 SQY Ouest, a shopping centre in Saint Quentin-en-Yvelines, Paris, was acquired, located adjacent to the existing Espace Saint Quentin centre.
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