Hammerson portfolio value drops 14% in H1

UK REIT Hammerson said its portfolio declined 14% in value to £4.7 bn (EUR 5.5 bn) in the first half of 2009 from £6.5 bn a year earlier, reflecting difficult conditions in the commercial property market. As a result, adjusted net asset value per share fell to £3.73 from a pro forma figure of £5.16 at 31 December 2008.

Adjusted profit before tax increased by 8.4% to £65.6 mln, whilst adjusted earnings per share were 11.0 pence compared with 13.8 pence in the first half of 2008. Like-for-like rental income remained virtually unchanged against the first half of 2008.

Hammerson, which is active in the UK and France, said it strengthened its financial position by raising £584 mln through a rights issue in February, whilst disposals further reduced debt by £572 mln. The company had over £900 mln of cash and undrawn facilities at end-June. It noted that only £60 mln of debt matures before December 2011, while 97% of debt is unsecured, providing considerable operational flexibility.

Hammerson's chairman John Nelson said the company planned to focus on four key areas in the months ahead. 'First, our investment portfolio is of the very
highest quality, comprising prime retail and office assets in the UK and France. We will actively manage the portfolio to improve the income and ensure it is well positioned to benefit from a recovery in markets. Second, our recent developments have the potential to be some of our best performing assets over the medium-term, and we will continue to focus on letting the remaining space. Third, we are pursuing the planning and design elements of the
development pipeline to ensure we can exploit these projects when conditions permit. Fourth, we intend to take advantage of opportunities presented by the current markets, including recycling capital into investments offering higher returns.'

The company also announced that David Atkins is to succeed John Richards as Chief Executive when the latter retires on 30 September 2009.

For more details on the CEO appointment, click on the link below.