Hammerson PLC bottom line gets a ‘malling’ but shares rise on news of strategic
“We are currently working on a thorough strategic and organisational review that will map out a route to future growth to transform the business,” said CEO Rita-Rose Gagné
Property company PLC () posted a massive 2020 loss after writing down the value of its estate by £1.44bn.
The retail-focused real estate investment trust (REIT) made a loss of £1.73bn compared to a loss of £779mln in 2019.
Net rental income of £157.6mln was down 41% on a like-for-like basis, excluding premium outlets, reflecting the impact of the UK’s yo-yoing COVID-19 lockdown policy.
said 76% of the rent it was owed in 2020 has now been collected.
Net debt at the end of 2020 stood at £2,234mln, which was a £609mln improvement on a year earlier following the REIT’s heavily discounted (and then some) £552mln rights issue in August.
The board has proposed a 0.2p final dividend, although with cash in short supply shareholders can get a payout of 2.0p per share if they take the payment in shares (the scrip dividend alternative).
“As our results show, was hit hard,” was the blunt but accurate assessment of Rita-Rose Gagné, the chief executive of Hammerson.
“The retail sector, already in the grip of major structural change, has been significantly impacted by the restrictions imposed to tackle the pandemic, and we’ve also seen an increasing number of retail failures. Combined, this has resulted in the largest fall in net rental income and UK asset values in the group’s history,” Gagné added.
“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,” she revealed.
Hammerson’s revenue and profit plummeted during 2020, as new chief executive Rita-Rose Gagné said the company had been “hit hard” by the Covid-19 pandemic https://t.co/OcjJhcTmRG
— EG (@EstatesGazette) March 12, 2021
Shares in Hammerson were up 7.9% at 35.19p in the first half-hour of trading.
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