UK REIT Hammerson reported a 41% fall in net rental income to £158 mln (€185 mln) over 2020, as the business was affected by Covid-19 closures, tenant restructuring and higher provisions for bad debt and tenant incentives.
‘By any measure, 2020 was an unprecedented year with every business and household affected by Covid-19,’ said Rita-Rose Gagné, Chief Executive of Hammerson. ‘As our results show, Hammerson was hit hard. The retail sector, already in the grip of major structural change, has been significantly impacted by the restrictions imposed to tackle the pandemic, and we've also seen an increasing number of retail failures. Combined, this has resulted in the largest fall in net rental income and UK asset values in the Group's history.’
The group’s immediate focus in 2021 is ‘leading Hammerson through Covid-19 to safety’, she added. ‘This means further disposals to strengthen the balance sheet, managing refinancing, and sharpening our operations to maximise income. We are currently working on a thorough strategic and organisational review that will map out a route to future growth to transform the business in the context of what will remain a tough economic and structural backdrop.’
Hammerson reported an IFRS loss of £1.7 bn, more than double that of 2019 (£781 mln), primarily due to property revaluation deficit. Adjusted earnings and EPS amounted respectively to £36.5 mln (compared to £214 mln in 2019) and 1.6p (compared to 12.8p in 2019).
The portfolio as a whole shed 21% of its value, including a staggering 36% fall in the case of UK flagship malls.
