Hammerson results 2003

Hammerson announces its results for the year 2003; profit before taxation £67.1m which is a decrease of 26.2%. However exceptional (losses)/profits £(18.8)m raise the adjusted profit before taxation to £85.9m, an increase of 0.4%.

Key Points on Results:

  • Rental income showed a like-for-like increase of 6.9%.
  • Underlying increase of 2.9% in the valuation of group’s portfolio. Retail portfolio showed an underlying increase in valuation of 7.1%, more than offsetting a 5.1% decline in the valuation of the office portfolio.
  • Active recycling of capital with capital investment of over £440 million and disposals of more than £550 million.
  • The disposals gave rise to an exceptional loss of £18.8 million, the majority of which relates to the sale of a retail property in Germany. Following the reduction in the size of the German business in 2003, the group is outsourcing the management of its three remaining properties in that country.
  • Increase in retail portfolio weighting from 65% to 68%.
  • The 110,000 m² regional shopping centre, Bullring, Birmingham, opened in September 2003 and is performing very successfully.
  • Good progress in retail parks business with planning consents secured for over 75,000 m² of additional space.

Proposed Listing on Euronext, Paris
Hammerson plc announces today its intention to list its shares on the Premier Marché of Euronext, Paris, the French Stock Exchange, prior to electing for tax exempt status for its French business.

Ronald Spinney, Chairman, said:
“Another year of progress for Hammerson saw further growth in the group’s rental income and net asset value. This was against a background of challenging conditions in several of the group’s markets. The policy of progressive increases in dividends has been maintained with a proposed rise of 6.5% this year.

Today we have announced plans to seek a listing on Euronext in Paris. This should enable us to take advantage of tax exempt status for our French business, which now represents almost 30% of the group’s total portfolio.

Conditions in the group’s principal retail markets appear favourable and I am encouraged by the recent signs of an improvement in the central London office market. The group has a high quality portfolio, which together with the opportunities presented by the future development programme, give me great confidence in Hammerson’s continued success.”

Source: Hammerson

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