Hammerson lifts earnings forecast on strong rental outlook

By Josh White

Date: Thursday 02 Dec 2021

Hammerson lifts earnings forecast on strong rental outlook

(Sharecast News) - Hammerson raised its expectations in an update on Thursday, announcing that assuming no further periods of Covid-19-related disruption in December, it now anticipated adjusted earnings of at least £60m for the 2021 financial year.
The FTSE 250 shopping centre investor said the hike was down to an improved outlook for net rental income, primarily from stronger collections rates, and a better-than-expected performance from its value retail assets.

It said footfall in the UK and Ireland currently stood at about 90% of the comparable period in 2019 before the outbreak of the pandemic, with France at around 85%.

"Sales continue to show encouraging trends, reflecting higher spend per visit and larger basket sizes, particularly in the UK where October sales were 6% higher than 2019," the board said in its statement.

"Rent collection rates continue to improve," it added.

Fourth quarter collections at the end of November stood at 86% for the group, including a "significant improvement" in France to 83% since its last update.

The UK, meanwhile, was at 89%, and Ireland at 83%.

"For the 2021 financial year, the group collection rate is currently 84%, [and] for 2020, 96%."

At 1136 GMT, shares in Hammerson were up 0.22% at 31.46p.


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