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.

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

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

• ESG initiatives delivered substantial environmental and social impact, with notable reductions in CO2 emissions and increased community engagement.

Financial highlights

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

• 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, with a total accounting return of 11%.

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

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

Outlook and guidance

• FY26 guidance: EPRA earnings growth of ~15% to £120 million; NRI growth of ~20%.

• Like-for-like NRI growth expected at 4%-5%; dividend payout to rise with earnings.

• Clear line of sight to continued earnings growth into 2027, supported by leasing activity and new developments.

• Medium-term EPS growth CAGR of 8%-10% still holds.