Hammerson has lost its position in the FTSE 250 index of London-listed companies, at the same time as news emerges that a possible successor to chief executive David Atkins has left the company.
FTSE Russell, the company behind the FTSE indices, confirmed that the shopping centre owner had been relegated from the FTSE 250 index, which comprises the 101st to 350th largest companies by market capitalisation on the London Stock Exchange.
Hammerson will sit in the FTSE Small Cap index from 21 September.
The company has seen its balance sheet and share price, both already struggling under the challenges of a changing retail market, battered by the coronavirus pandemic.
The share price plunged by some 85% between the start of the year and early September, when quarterly promotions and relegations from the FTSE indices are calculated.
In recent days, however, the stock has rallied as Hammerson has started the process of a recapitalisation that sees shares consolidated and new equity issued.
Elsewhere in the stock market reshuffle, British Land held onto its FTSE 100 inclusion, having been seen as likely to fall into the FTSE 250 this quarter. The REIT has also seen its share value drop sharply, down 45% over the course of the year so far.
News of Hammerson exiting the FTSE 250 followed reports that Simon Betty, who has been with the company since 2006 and was this year tasked with leading its City Quarters initiative, has resigned. Betty was said to be a potential successor to Atkins, who announced in May that he will step down next spring.
Atkins told EG at the time that he believes he can leave the company “in a position where the new chief executive can really look forward to the future with confidence”, having announced the recapitalisation as well as a sale of its 50% stake in VIA Outlets.
“This a really unprecedented and challenging market,” Atkins added. “We were on track with our strategy pre-Covid, but it was very clear as we went into the pandemic that we needed to do something significant to ensure the business has a strong future.”
A spokesman for Hammerson declined to comment on the FTSE 250 relegation or Betty’s resignation.
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