Hammerson posts 1.7% rise in H1 net asset value

UK retail specialist Hammerson saw its net asset value per share increase 1.7% to 551 pence at end-June 2013 from 542 pence six months earlier.

In a statement to announce its first-half results, the London-based shopping centre owner said net rental income increased 2.5% in the past six months despite reduced household budgets in both the UK and France, Hammerson's main markets.

'While household budgets in the UK and France remain under pressure, there are encouraging signs of improvement in macro-economic conditions in the UK,' commented CEO David Atkins, adding that measures had been taken to enable the company to maintain high occupancy rates, secure new tenants and grow rental income.

'We therefore have confidence in our continued ability to secure strong growth in earnings and dividends over the medium term,' Atkins added.

EPRA earnings per share rose 8.8% in the first half reaching, 11.1 pence at end-June. Hammerson has also increased its dividend for the first half by 7.8% to 8.3 pence.

Hammerson, which has a £784 mln development development pipeline in the UK and France, said its largest project in France, Les Terrasses du Port in Marseille, is now 89% let, with just under a year until opening. 'Our scheme is benefiting from the Euromediterranée rejuvenation, with new museums, hotels and theatres already opened in the surrounding area,' the London-based company said.

Hammerson plans to hand over the first unit to department store Printemps this summer, starting the countdown to opening in May 2014.