8th Nov 2022 08:31
(Alliance News) - Hammerson PLC on Tuesday said demand for prime shopping space remained high, with leasing strong and rent collections continuing to improve in the third quarter.
The London-based property developer focuses on urban and retail space in the UK, Ireland and France.
In a trading update for the third quarter that ended September 30, Hammerson said its occupancy rate was at 95%, including the Cergy extension. Les 3 Fontaines is an urban shopping centre in Cergy, outside of Paris.
The pipeline for the fourth quarter was strong, the company said.
Hammerson expects 2022 adjusted earnings to be not less than GBP100 million, up from GBP80.9 million in 2021.
Rent collections for the first nine months of 2022 were at 93%. "We expect collection rates to continue to improve further by the full year," it said.
For nine months, like-for-like gross rental income increased by 11%. Net rental income continued to benefit from strong leasing performance, improved rent collections and lower bad debt charges, Hammerson said.
The company said 221 leases have been signed in the year to date, representing GBP17 million of headline rent, 43% ahead of previous passing rent.
UK and Ireland retail footfall continued to improve to around 90% of 2019 levels, with France at 95%.
The third-quarter sales continued to be above 2019 levels, with the UK sales up 4%, France 3% higher and Ireland rising 2%.
Hammerson said it was in discussions with a range of interested parties on a further disposal of non-core assets, totalling about GBP300 million. It said it is confident of completion of these disposals by the end of 2023, as previously guided.
In the first half, the group sold assets worth GBP194 million.
Hammerson shares were up 9.4% to 23.49 pence in London early Tuesday morning. They were up 10% in Johannesburg at ZAR4.75.
By Artwell Dlamini; [email protected]
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