Hammerson shines in 'excellent year', confirms almost full control of Brent Cross
It reported a strong year-to-date trading performance together with positive updated guidance for full-year 2025.
The positive update comes as it also announced the completion of the acquisition of Brent Cross, first reported earlier this month (but more of that later).
An upbeat CEO Rita-Rose Gagne said: 'We have welcomed over 50 million visitors to our destinations so far in 2025 [and] we've continued to execute our growth strategy and delivered strong operational momentum, with another period of record leasing, increased year-on-year occupancy, investment and consolidation in our assets.'
As a result, Hammerson now expects total GRI (global reporting initiative) growth in the region of 10% for 2025 and re-affirmed its adjusted earnings guidance for the full year.
Those 50 million visitors so far in 2025 supports its claim that footfall and sales 'have continued to be robust'.
Group like-for-like sales were also up 1% for the first quarter, including a particularly strong performance in March in the UK (+2%), 'with the benefit of Easter falling in Q2 yet to come'.
Another strong leasing performance in the year to 16 May has already outstripped last year's record performance with the exchange of 93 leases, representing 424,000 sq ft of space, totalling £15.5 million of headline rent at 100%, 59% ahead of previous passing rent, and 12% ahead of ERV.
Reflecting the continuing high demand and strong leasing performance, year-on-year occupancy increased by 70bps in the first quarter to 94%, it noted.
There's also a 'high visibility' of future income with long-term deals representing 91% by value and the weighted average unexpired lease term to break is 5.4 years, adding £76m of contracted rent year-to-date. The pipeline remains strong with over £25 million in solicitor's hands and in advanced negotiations.
Following the investment in asset repositioning, Hammerson sees major new openings this year including a flagship M&S and Odeon at Cabot Circus, Hollywood Bowl and TK Maxx at The Oracle, and a unique partnership between Adidas and Aston Villa at the Bullring. It also completed the major reletting associated with the former House of Fraser at The Oracle, having signed deals last week for significant upsizes with Zara and another major global brand. It also looks forward to welcoming an upsized and new concept Pull & Bear and upsized JD Sports at Dundrum.
'These leases support significant rental growth, and together are ahead of previous passing rents and ERVs', it added.
And that updated guidance comes alongside strong operational momentum so it now expects total GRI growth for FY25 to be in the region of 10%, with adjusted earnings of around £95 million.
Also, Hammerson gave further details on its Brent Cross acquisition, acquiring almost a 100% stake in the centre for a net cash consideration of £186 million.
It said this represents a 16% discount to book value as at 31 December 2024 for the destination and a net initial yield of 8.6%. Combined with Hammerson's existing managing stake, the company's economic interest in Brent Cross is currently 97%, and will provide annualised EBITDA benefit of around £14 million.
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