Shopping centre developer Hammerson has reported a net asset value increase of 3.4% to £5.8bn for the first six months of the year.
On a per share basis, net assets increased by 17p to £7.27 over the same period. Rental income increased by 5.1% to £167m. Pretax profit decreased by 50% to £167.2m.
Hammerson said the increase in net assets was principally due to property revaluation gains, mainly in its French and premium outlets portfolios, arising from valuation yield compression and income growth.
A weakened sterling relative to the euro caused euro-dominated assets to increase by more than euro-dominated borrowings and unhedged exchange movements increased net assets by £81m.
However, in the UK, shopping centre values fell by £13m and retail park values fell by £38m, of which £39m resulted from the increase in stamp duty land tax in April 2016.
Hammerson said it was too early to gauge the impact on property valuations caused by the EU referendum.
In a statement in its half-year results, Hammerson said: “We are now in a period of uncertainty in relation to many factors that may impact the property investment and letting markets and this could continue whilst the UK renegotiates its trading position and other relationships with the EU and other countries.”
The retail REIT with a £9bn portfolio focused on the UK, France and Ireland, has also announced it is to list on the South African stock exchange in a bid to attract investors there.
Chief executive David Atkins said: “In response to growing demand, this secondary inward listing will allow Hammerson to access a wider pool of international capital while providing more investors with exposure to our world-class European retail property business.
“Our register already includes a highly diversified global shareholder base, including a number of South African funds, and this listing is expected to further extend the depth and spread of investors and improve liquidity for existing shareholders.”
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