London-Based Hammerson Reports Major Loss Reduction

March 6, 2024

The property development and investment group Hammerson reported a notable loss reduction attributed to a record year of lease activity. The company’s pre-tax loss for the entire year of 2023 stood at £50.7 million, a significant improvement from the previous year’s £164 million loss.
While revenue remained stable, experiencing a slight increase from £131.4 million to £134.3 million, gross rental income declined from £215 million in 2022 to £208 million.

Based in London, Hammerson owns and manages prominent retail centres such as Birmingham’s Bullring and Grand Central, Cabot Circus in Bristol, and Brent Cross In London. The company is also at the forefront of developments like the Martineau Galleries scheme in central Birmingham.

In a statement to the London Stock Exchange, Hammerson highlighted its achievement of securing a record 306 lease deals, amounting to £46 million in headline rent. The company observed a three per cent increase in footfall and a five per cent rise in dwell time. CEO Rita-Rose Gagné emphasized the high demand for their city centre destinations, stating, “This year, we delivered a positive performance across our key strategic, operational, and financial metrics.”

Gagné noted a six per cent increase in like-for-like gross rental income, reflecting another record year of leasing. Occupancy rates remained robust, and both footfall and sales experienced growth. The company also achieved a 14 per cent reduction in costs while strengthening its operational platform. Gagné outlined the company’s focus on urban locations, envisioning them as vibrant, 24/7 multi-use estates.

Expressing awareness of the current macroeconomic environment, Gagné highlighted the thriving nature of occupiers and the rising visitor numbers in their realigned portfolio. She emphasized the positive outcomes of investments in the core portfolio alongside collaborations with best-in-class occupiers, anticipating continued growth in the coming year.