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.
The FTSE 250 REIT posted a loss of £1.7bn, more than double the £781m it lost in 2019, while net rental income fell by almost 50% at £158m.
The value of the company’s portfolio stood at £6.3bn, down by close to a quarter year-on-year, and its properties produced a total return of -18.3%. EPRA net tangible assets per share were 82p, down from £1.16.
“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 have also seen an increasing number of retail failures,” Gagné said. “Combined, this has resulted in the largest fall in net rental income and UK asset values in the group’s history.”
Gagné said the company’s strategic and organisational review would focus on mapping out “a route to future growth”, adding: “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.”
Hammerson pinned the valuation fall on both revaluation losses of £1.6bn and disposals of £759m. All the company’s UK flagship assets saw valuation deficits, with its French and Irish sites also posting deficits.
The company has proposed a final 2020 dividend of 0.2p per share and an enhanced scrip dividend alternative of 2p per share. Both are subject to approval at Hammerson’s May AGM.
Alongside its results, Hammerson announced changes to its non-executive line-up.
Pierre Bouchut, the former chief financial officer of Carrefour who chairs Hammerson’s audit committee, will stand down at the AGM. Habib Annous, most recently a partner at investment manager Capital Group, will join as a non-exec on 5 May.
To send feedback, e-mail tim.burke@egi.co.uk or tweet @_tim_burke or @estatesgazette
