Hammerson (HMSO) H1 2025 Pre Recorded earnings summary

Executive summary

• Delivered strong HY25 results with 11% GRI and 10% NRI growth year-over-year, driven by portfolio realignment, asset management, and acquisitions.

• Acquired full control of Bullring & Grand Central for £319m, funded by balance sheet, equity placing, and suspension of share buyback, consolidating position in Birmingham.

• Dividend per share increased by 5% year-over-year, continuing a track record of dividend growth and reflecting confidence in future earnings.

• Upgraded FY25 guidance with higher GRI and EPRA earnings expectations, and a positive outlook for further growth in FY26 and FY27.

• Strategy focused on value creation through active asset management, capital recycling, and a robust development pipeline.

Financial highlights

• Gross rental income rose 11% year-over-year to £105m; net rental income up 10% to £80m.

• EPRA earnings at £48m (9.9p/share), slightly down year-over-year due to disposals; IFRS profit of £79m, reversing a prior year loss.

• Portfolio valuation up 11% to £3.0bn as of June 30, with a net revaluation gain of £26m, the first gain since 2017.

• EPRA NTA per share increased to £3.81 (+£0.11 YoY); total accounting return of 5.1% in H1.

• Occupancy improved to 95% (from 94% YoY); flagship portfolio up 1.2% like-for-like.

Outlook and guidance

• FY25 GRI growth guidance upgraded to ~17% (from ~10%); EPRA earnings upgraded to ~£102m.

• Medium-term targets: 8-10% EPRA EPS CAGR, 4-6% GRI growth, and 6-8% earnings/dividend growth.

• Further GRI and NRI growth expected in FY26 and FY27, underpinned by leasing pipeline and repositioning projects.

• Capex for FY25 guided at ~£60m, mainly for repositioning.

• Management remains mindful of macroeconomic volatility but sees resilient consumer spend in core locations.