Hammerson (HMSO) H2 2025 earnings summary

Executive summary

• Achieved strong financial and operational results for 2025, with net rental income up 23% to £180 million and portfolio value rising 33% to over £3.5 billion, outperforming consensus and supporting a positive outlook for 2026 and beyond.

• Focused on driving outperformance at flagship destinations, enhancing asset value, and expanding scale through acquisitions and successful repositioning projects.

• Robust balance sheet, improved credit ratings, and disciplined capital allocation underpin growth strategy.

• Record leasing activity, with over £50 million in new deals, significant retailer sales growth, and strong occupancy rates.

• ESG initiatives delivered substantial environmental and social impact, including CO2 reductions and increased community engagement.

Financial highlights

• Net rental income rose 23% year-over-year to £180 million; EPRA earnings up 5% to £104 million.

• IFRS profit of £232 million, first full-year positive result since 2017 and a £758 million improvement from prior year loss.

• NTA up 6% to £3.94 per share; total accounting return of 11%; total property return 10.2%.

• Dividend per share increased 6% to 16.5p, with payout ratio at 80%-85%.

• LTV at 39%, net debt/EBITDA at 8.1x, liquidity at £1 billion, and strengthened credit ratings.

Outlook and guidance

• FY26 guidance: Net rental income expected to grow 20%, with like-for-like rental growth of 4%-5%.

• EPRA earnings projected to rise 15% to around £120 million; EPS growth of 10%.

• Dividend payout to rise with earnings; clear line of sight to continued earnings growth into 2027.

• CapEx guidance: £30-40 million for asset enhancement/leasing, £30 million for repositioning, £10-15 million for development.