5th Aug 2021 10:16
(Alliance News) - Hammerson PLC on Thursday reported a decline in revenue but a narrower loss in the first half of 2021, as it vowed to continue with disposals and invest in core assets.
The FTSE 250-listed real estate investment trust, which owns shopping centres and mixed-use developments across Europe, reported a 13% year-on-year decline in revenue to GBP65.3 million from GBP74.8 million. Its pretax loss narrowed to GBP354.0 million from GBP1.14 billion.
The company maintained its interim dividend at 0.2p per share. For 2020, it paid an interim and final dividend of 0.2p each. An enhanced scrip dividend of 2p per share will continue to be offered.
Shares were down 1.3% to 37.00 pence in London on Thursday morning. In Johannesburg, shares were down 0.9% to ZAR7.40.
Hammerson provided a strategy update, saying it will focus on prime urban estates, dispose non-core assets and cut debt. As part of the strategy, it plans to cut administrative costs by 15% to 20% by 2023, repurpose underused spaces such as department stores, and develop more leisure, residential and office space.
The London-based company's city-centre malls have been hit by the pandemic and the shift to online shopping. Footfall is currently averaging 80% of the 2019 level, the company said.
In April, Hammerson sold its portfolio of seven out-of-town retail parks to Brookfield Asset Management Inc for GBP330 million. That helped cut net debt to GBP1.88 billion on June 30, from GBP2.23 billion on December 31.
Chief Executive Rita-Rose Gagne said: "As we emerge from a unique moment in time, I see a pathway to create sustainable value as we transform the business to become more agile and able to anticipate and respond to this change.
"We own flagship destinations around which we can curate and reshape entire neighbourhoods and city centre spaces for generations to come.
"To realise this opportunity we are focused on continuing to de-lever the balance sheet through disposals of non-core assets, creating a leaner and more agile organisation, driving value in our destinations and accelerating our longer term developments."
By Ivan Edwards; [email protected]
Copyright 2021 Alliance News Limited. All Rights Reserved.
Related Shares:
Hammerson