Hammerson (HMSO) H1 2025 earnings summary

Executive summary

• Delivered strong half-year performance with 11% gross rental income and 10% net rental income growth, supported by portfolio realignment, acquisitions, and active asset management.

• Acquired full control of Bullring and Grand Central for £319m, funded by equity placing and suspension of share buyback, adding c.£22m annualised net rental income.

• Interim dividend increased 5% to 7.94p per share, continuing a track record of dividend growth.

• Upgraded FY25 guidance with total GRI growth expected at 17% and EPRA earnings at c.£102m.

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

Financial highlights

• Gross rental income rose to £105m (+11% YoY); net rental income reached £80m (+10% YoY); like-for-like GRI and NRI growth of 4.6% and 4.0% respectively.

• EPRA earnings for H1 2025 were £48m (9.9p/share), flat year-over-year; IFRS profit was £79m, a significant turnaround from a £517m loss in H1 2024.

• Portfolio valuation up 11% to £2,956m as of 30 June 2025, with a net revaluation gain of £26m.

• Dividend per share increased to 7.94p (+5% YoY); payout ratio increased to 80-85% of EPRA earnings.

• Cost ratio (including vacancy costs) improved to 38.3% from 41.1% year-over-year.

Outlook and guidance

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

• Medium-term targets: 4-6% CAGR in gross rental income, 6-8% CAGR in earnings/dividends per share, and c.10% total accounting return.

• Further GRI growth of ~15% expected in 2026, with additional growth in 2027.

• Confident in delivering 8-10% EPRA EPS CAGR for FY26 and FY27, underpinned by robust leasing pipeline and acquisitions.

• Full-year CapEx expected at £60m, focused on repositioning and ESG projects.