Hammerson has reported 5% like-for-like growth in gross rental income for Q1 this year, citing “robust” leasing, car parking and commercialisation performance.
Similarly, like-for-like net rental income was up by 5% in the three months ending 31 March.
Managed portfolio valuations for the quarter were flat compared with 31 December last year;. Hammerson said there was a “slight increase” to estimated rental values, offset by “marginal” adjustment to yields.
Gross administration costs fell by 13% year-on-year. The REIT is aiming to achieve a 20% reduction by the end of 2024.
Headline rent was 18% ahead of previous passing rent, and 5% ahead of ERV on a net effective basis. A further £16m is in solicitors’ hands, according to the owner.
The mall owner has faced pressure in recent weeks from activist investor Lighthouse, which is the investment vehicle of former Hammerson director Des de Beer and owns some 23% of the REIT. It has tabled resolutions to appoint two new board members at the owner’s AGM on 4 May, which several other shareholders have opposed.
Rita-Rose Gagné, chief executive of Hammerson, said: “We have maintained our focus on execution during the first few months of the year. We have a strong operational grip which is delivering top-line growth, with continued momentum in leasing and a strong pipeline. We have further reduced costs, with more to come as we create a sustainable and agile platform.
“We have exited minority stakes in France and other non-core interests, bringing total disposals since the start of 2021 to over £840m, and a sharper focus on our core portfolio of city centre assets and land. We have further strengthened the balance sheet and maintain a disciplined approach to capital allocation. Looking forward, we have strong momentum and remain on track to return to cash dividends as previously guided.”
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