Hammerson, which owns and operates shopping centres including Brent Cross in London, posted a rise in rental income as occupancy and footfall increased in the full year ending December 2023.


Hammerson, which owns Brent Cross shopping centre, posted a rise in rental income

Hammerson posted a growth of 6% in like-for-like gross rental income after a record year of leasing with 306 deals.

The landlord said footfall across its retail locations had increased by 3% year on year, while flagship portfolio occupancy remained strong but broadly flat at 95% year on year.

Hammerson said its Value Retail division, which owns Bicester Village and sites in China, Spain, Germany and Italy, delivered a “solid operational performance” as brand sales increased by 10% year on year, up 5% from 2019 levels.

Footfall across Value Retail destinations saw a 9% increase year on year but remained below 2019 levels.

Rita-Rose Gagné, chief executive of Hammerson, said: “Our city-centre destinations are in high demand. This year we delivered a positive performance across our key strategic, operational and financial metrics. 

“Like-for-like gross rental income was up 6%, following another record year of leasing. Occupancy remains strong and footfall and sales were up again. 

“We’ve strengthened our operational platform, while reducing costs by 14%. As a result, adjusted earnings rose 11% to £116m, while net debt was down 23%, with ample liquidity.

“Over the last three years, we have delivered against all strategic milestones. We now have a core portfolio focused on urban locations, which are evolving into my vision: vibrant, 24/7 multi-use estates. These destinations are fast-growing, and part of the fabric and infrastructure of the cities in which we operate.

“While our eyes are open to the current macro-economic environment, our occupiers are thriving and our visitor numbers are on the rise in our realigned portfolio. We are reaping the rewards of the investments we are making in our core portfolio alongside best-in-class occupiers, which underpins the high levels of demand for our space. 

“We expect this trajectory to continue in the year ahead. We have a strong pipeline of leasing and repurposing opportunities. There is still more for us to do, but we are now entering a time where having the capability to invest and operate with discipline and conviction will be rewarded.”