Hammerson saw its net asset value increase by 5.2% to £5.9bn in 2016.
On a per-share basis, net assets increased by 4.1% to £7.39.
Hammerson said the NAV increase was due principally to a valuation surplus on the group’s premium outlets, which totalled £138m.
However, profits fell by more than half to £317.3m from £727.8m, a fall of 56.3%, in 2016.
The fall was caused by a drop in the value of the group’s shopping centres and retail parks, its full-year results showed, with a net revaluation loss of £13.4m in 2016 compared with a net gain of £367.5m in 2015.
In the UK, shopping centre values fell by £6m and retail parks by £118m, of which £39m was due to the increase in stamp duty land tax in April 2016. The group’s adjusted profit increased by 9.4% to £230.7m.
Hammerson plans to increase its dividend by 8.6% to 13.9p per share.
| Item | 2016 result (£m) | % change |
|---|---|---|
| Profit | 317.3 | -56 |
| Adjusted profit | 230.7 | 9.4 |
| Dividend | 13.9p | 8.6 |
| Net asset value | 5.9bn | 5.2 |
| Rental income | 346.5 | 8.8 |
The shopping centre developer saw net rental income rise by 8.8% to £346.5m, a 2.2% rise on a like-for-like basis. Borrowing rose from 54% to 59% during the year.
During 2016, Hammerson leased more than 1.5m sq ft to more than 40 new brands. Two major new schemes were opened at Victoria Gate, Leeds and Watermark in Westquay, Southampton.
Hammerson chief executive David Atkins said he was confident about the company’s ability to deliver “similar levels of growth” in the future “despite some UK retail headwinds and geopolitical uncertainty”.
He said: “I am pleased to report sector-leading earnings and dividend growth, reflecting robust operational performance across all parts of the portfolio.
“During the year we have added retail space in faster-growth markets including Dublin, Leeds and Birmingham, and extended our presence in the European outlets market. To fund these, we refinanced more than £1.2bn of debt and executed our planned disposal programme, generating £635m.”
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