Hammerson PLC on Thursday reported a heavy loss in the first half of 2024 after taking an impairment charge following the sale of its stake in Value Retail PLC.
The London-based real estate investment trust owns city-centre shopping centres in the UK and elsewhere.
For the first six months to June 30, IFRS loss widened sharply to £516.7 million, from £1.2 million, reflecting impairment of investment in Value Retail from carrying value of £1.1 billion.
At June 30, the group’s investment had been reclassified as an asset held for sale, resulting in the recognition of an impairment of £483 million.
Gross rental income for the first half fell 11% to £94.4 million from £106.3 million.
Hammerson declared an interim dividend of 0.756 pence, up 4.8% from 0.720p.
Loss per share was 10.4p, compared to breakeven the prior year.
As at June 30, EPRA net tangible assets per share slumped to 38p, from 51p as December 31.
The company said the disposal of non-controlling and yield dilutive interest in Value Retail ensured ‘clean’ exit from complex structure at an attractive price, generating £600 million in cash proceeds.
It said it intends to use proceeds to cut debt, reinvest in higher-yielding assets, and a return of up to £140 million to shareholders via a share buyback.
‘I am pleased to report we’ve had a strong first half. We are realising the benefits of our investments in recent years and with the agreed disposal of Value Retail, we now have the capacity and capability to accelerate growth and value creation,’ Hammerson Chief Executive Officer Rita-Rose Gagne said.
Over the medium term, Hammerson expects dividend per share to rise between 6% and 8%.
Shares in Hammerson were down 1.4% to 29.26p in London on Thursday morning. They eased by 0.7% in Johannesburg to R 7.00.
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