Hammerson will hand out a cash dividend as its position continues to strengthen.
Chief executive Rita-Rose Gagné said the REIT was looking to the future “with confidence”, after a “strong first half”.
An interim dividend of 0.72p per share will be paid as a PID in respect of 2023, the REIT said.
“Our leasing momentum in 2022 has continued into the first half of 2023 and we have a strong pipeline for the second half,” she said, as Hammerson published its half-year results.
Adjusted earnings were up 15% to £56m, aided by a slashing of administrative costs by 12% to £26m, amounting to a 30% saving since 2020. The cost of debt has also been reduced by 13%, while net debt has been reduced to £1.318bn, or 24%, from £1.732bn.
However, a fall in values to £4.7bn from £5.5bn in 2022, along with disposals, resulted in an IFRS loss of £1m, down from £50m for the same period in 2022.
Gross rental income dropped slightly to £106.3m from £107.4m.
Hammerson has further simplified its portfolio, exiting minority stakes in France, and selling its standalone development interests in Croydon, and other non-core land. This generated £215m in disposal proceeds.
Hammerson has disposed of £410m since the the start of FY 22, and said it “remains on track” to complete its £500m programme by end of the year.
Gagné said: “Our resulting financial position is significantly strengthened. We have ample liquidity in cash and undrawn committed facilities of £1.2bn.
Gagné said the disposals were “bringing a sharper focus to investment opportunities in the core portfolio”.
“Our strategy is driven by the repositioning of our unique city centre destinations in some of Europe’s fastest-growing cities from traditional retail-anchored footprints to a broader mix of uses. Today we are a more agile, market facing, asset-centric Hammerson that continues to reshape our urban destinations to be fit for future lifestyles.”
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