UK retail specialist Hammerson has reported a strong increase in pre-tax profit to £341 mln (€410 mln) in the full year ended December 31, versus £142 mln in the same period a year before.
UK retail specialist Hammerson has reported a strong increase in pre-tax profit to £341 mln (€410 mln) in the full year ended December 31, versus £142 mln in the same period a year before.
On a like-for-like basis, net rental income grew by 2.1% for the continuing portfolio in 2013, slightly above Hammerson's target of 2%. Income from UK and French shopping centres grew by 3.2% and 2.6% respectively. UK retail park income increased by 0.2% reflecting significant tenant administrations in the first half of the year.
Adjusted earnings per share increased by 10.5%, to 23.1 pence, largely as a result of a full year’s impact from the group's increased investment in Value Retail and growth in net rental income.
Hammerson's portfolio including 20 prime shopping centres in the UK and France and 22 conveniently located retail parks, reported a value increase of £89 mln during 2013, the London-based real estate investment trust said.
In 2013, the company reduced its average cost of borrowings to 4.8% from 5.0% in the prior year.
The retail REIT’s year-end loan to value ratio was 38% and it has liquidity of £716 mln.
'We have reported a good set of results in a year when we saw the beginning of economic and consumer recovery in the UK,' said David Atkins, chief executive of Hammerson. 'In France the economic picture is less clear cut, although personal debt levels remain low, providing the opportunity for a rebound in consumer spending when growth returns.'