Hammerson Markets Recovered But Cautions On Uncertain Outlook

2nd Aug 2010 07:18

By Anita Likus Of DOW JONES NEWSWIRES LONDON (Dow Jones)--Hammerson PLC (HMSO.LN), the retail and office landlord with operations in France and the U.K., Monday said that while its markets have recovered from recession with improved earnings and rental income in the first half of the year, the outlook still remains uncertain. Against this backdrop, the company said it will focus on the performance of its assets, increasing income and controlling costs. Chairman John Nelson said, "we are maintaining a clear focus on improving our portfolio, maximising the income from each of our assets and sound financial management...We have advanced our valuable development pipeline in the U.K. and France which will provide a basis for additional future growth." Hammerson reported first-half adjusted net asset value per share up 7.8% to 454 pence while the value of its portfolio rose 7.3% in the U.K. and 0.5% in France. The company owns retail and office assets in the U.K. and France with a greater focus on retail. It suffered in the recession when property prices fell and as many retailers went into administration, which hit incoming rent and created vacancies. But Hammerson reported improved occupancy levels since December, at 96%, with particularly good lettings progress in the second quarter. Like-for-like rental income rose 5% to GBP140 million but overall net rental income was down 10.5% due to property disposals. It increased its interim dividend per share by 2.9% to 7.15 pence. Hammerson shares closed Friday at 388 pence, giving the company market capitalization of GBP2.75 billion. -By Anita Likus, Dow Jones Newswires; +44 20 7842 9407; [email protected] (END) Dow Jones Newswires August 02, 2010 02:18 ET (06:18 GMT)