MAXIMISING INCOME THROUGH ACTIVE MANAGEMENT
Growth of 2.1% in like-for-like net rental income demonstrating continued tenant demand for our properties and the success of asset management initiatives
Strong demand for high-quality retail property, with new rents secured of £24m (2012: £19m) for 154,000m² (2012: 123,000m²)
Occupancy of 97.7% reflecting attractive venues. Occupancy exceeds our benchmark of 97% and is up since the half year
Leases signed overall at 2% above ERV, providing confidence in future income growth
Final dividend increased by 8%.Total dividend for the year of 19.1 pence per share (2012: 17.7 pence)
CREATING HIGH-QUALITY RETAIL DESTINATIONS
Les Terrasses du Port, Marseille now 93% let and on schedule to open May 3rd
Construction started at Le Jeu de Paume, Beauvais; Silverburn extension, Glasgow; and Cyfarftha, Merthyr Tydfil
Commenced enabling works at Victoria Gate, Leeds. Main contract scheduled to start on site this spring
Planning approval received for major retail developments at Croydon and Brent Cross in London
Investments in Bullring, Saint Sébastien and Value Retail improve quality of portfolio and provide opportunities to create value
ENHANCING CAPITAL STRENGTH
Reduction in cost:income ratio of 240 basis points
Liability management initiatives reduced weighted average interest rate to 4.8%
Year end loan to value of 38% and liquidity of £716 million provide flexibility for future investment
David Atkins, Chief Executive of Hammerson, said: "We have reported a good set of results in a year when we saw the beginning of economic and consumer recovery in the UK. In France the economic picture is less clear cut, although personal debt levels remain low, providing the opportunity for a rebound in consumer spending when growth returns.
We are seeing improving demand from retailers, and Hammerson is creating the right product to meet their future requirements, which provides the conditions for selected growth in rental values. We have clear visibility on a number of major development projects which will create the destination venues of the future, and drive returns to our shareholders. The first of these, Les Terrasses du Port in Marseille, will open in May this year. We remain on course to deliver strong growth in earnings and dividends over the medium term."
