Disposals sees huge profit swing at Hammerson
BULLRING co-owner Hammerson has seen a massive swing in its pre-tax profits for 2010, due in large part to £555m worth of disposals.
The commercial property company, which also acquired Wrekin Retail Park in Telford and Battery Retail Park in Selly Oak last year, posted a pre-tax profit of £620.2m for the year ended December 31, 2010.
This compared with a pre-tax loss of £453.1m for the same period in 2009.
Net rental income for 2010 was £284.7m, a drop of 3% from £293.6m, which the company said reflected its disposals in the year, while adjusted profit before tax was £144.5, a climb of 11% from £130m.
As of December 31, 2010, occupancy was 97.3%, compared with 95.4% the previous year, following demand from occupiers, it said.
A total of 15% of its portfolio was recycled in 2010 while disposals of mature assets last year raised £555m, with £219m invested in attractive acquisition opportunities.
Hammerson’s chairman John Nelson said: “This is a strong set of results which reinforces the strategy we are pursuing.
“Our rigorous focus on the performance of each asset is improving occupancy and income.
“We have sold mature assets and reinvested in properties which offer better growth prospects through active management.
“Looking forward, our financial flexibility and continued asset recycling will allow us to continue to take advantage of opportunities which we believe will arise in the coming period.”
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