UK's Hammerson profit inches up as footfall woes linger

© Reuters. FILE PHOTO: Shoppers are seen walking near Bullring shopping centre, owned by mall operator Hammerson, in Birmingham, Britain, November 4, 2020. REUTERS/Andrew Boyers

(Reuters) -British mall operator Hammerson on Thursday reported a 14% rise in half-year adjusted profit thanks to a retail recovery following the easing of lockdowns and lower costs, but warned that footfall was yet to rebound to pre-pandemic levels.

The British government in June extended a ban on commercial evictions until March 2022, even as mall operators heavily exposed to non-essential retail tenants were battered by months of COVID-19 lockdowns.

Landlords have been forced to rework rental agreements and offer concessions on plunging demand and asset valuations, while a recent spike in COVID-19 cases has brought back restrictions in some places including France, where Hammerson has operations.

The debt-laden firm’s adjusted earnings rose to 20.1 million pounds ($27.90 million) for the six months ended June 30, from 17.7 million pounds a year earlier.

IFRS loss narrowed to 376 million pounds from 1.09 billion pounds in the pandemic-hit comparable period in 2020. In 2019, Hammerson reported 107.4 million pounds in adjusted earnings and 319.8 million pounds in IFRS loss.

“We are focused on continuing to de-lever the balance sheet through disposals of non-core assets, creating a leaner and more agile organisation,” Chief Executive Officer Rita-Rose Gagné said in a statement.

The 250-listed firm said half-year EPRA net tangible assets per share, a key metric for the sector, fell 16% to 69 pence, adding that footfall was averaging at 75% of 2019 levels.

See also  Reuters editor-in-chief Adler to retire after decade at the helm

($1 = 0.7203 pounds)

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.



Please enter your comment!
Please enter your name here