Hammerson has vowed to maintain its focus on cutting its debt this year, after declines in its rents and portfolio value deepened.
The value of its total portfolio fell by 16.2% to £8.3bn in the year ending December 2019, compared with the previous year.
The landlord made a £781m IFRS loss for the year, compared to a loss of £268m in 2018. The REIT said the most significant variance was a £1bn net revaluation loss on its portfolio, compared with a loss of £449m in the previous year.
This was partly offset by larger revaluation gains on the premium outlets portfolio of £200m, £144m higher than in 2018.
EPRA net asset value per share tumbled by 18.6% during the same period, to £6.01.
Rental income for the period dropped by 11.2% to £308.5m, excluding the outlets business. On a like-for-like basis, this reflected a 6.7% decline.
During 2019, 33 retailers undertook a CVA or went into administration, affecting 94 units and reducing passing rent of £12.7m by £2.9m. Since the beginning of 2018, 149 units have been impacted by CVAs or administrations, of which 91% are currently trading.
Returns were in negative territory, with total property return declining to -5.6%, compared with 0% in the previous year. Capital return decreased to -9.8%, from -4.3% in 2018.
The REIT, which plans to exit from the retail park sector, has disposed around £975m of properties during 2019, which it said has reduced net debt by a third, to £2.8bn.
Gearing increased by two percentage points, to 65%. Loan to value stands at 38%.
Its dividend will be 14.8p per share for the period ending December 2019, subject to approval by shareholders at the AGM on 28 April.
David Atkins, chief executive of Hammerson, said: “With the outlook for the UK retail market remaining uncertain, we believe we should maintain our focus on reducing debt during 2020.”
He added: “The magnitude of the challenge facing UK retail is significant. However, as brands look to optimise their store estates and strike the right balance between online and physical retail, the best destinations continue to be highly relevant– this is highlighted by the rise in visitor numbers across all our regions.
“We remain committed to creating a portfolio of exceptional venues and, as we drive a faster pace of change in shifting our brand line-up and repurposing space, we expect to see improved results in the UK.”
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