Rents fall but profits grow for Hammerson

REAL estate company Hammerson saw a year-on-year rise in pre-tax profits in the first of 2010 despite a fall in rental income.

The company, which part-owns Birmingham’s Bullring shopping centre as one third of joint venture, saw net rental fall from £156.4m to £140m for the six months ending June 30, 2010.

Hammerson said this was due to property disposals which took place during 2009 however its pre-tax profit climbed from £65.6m to £70.2m, a rise of 7%.

In its statement, Hammerson said occupancy levels had improved since December, with a 96% take-up at the end of June 2010, and there had been a growth in like-for-like net rental income of 5%.

Pre-tax profit increases of 7% were due to lower finance costs, new lettings and rent reviews which more than offset the effect of disposals last year, Hammerson said.

The company’s interim dividend increased to 7.15% per share.

In June, Hammerson acquired the remaining 75% it did not own of the Battery Retail Park in the Selly Oak area of Birmingham.

Hammerson’s chairman John Nelson said: “Although our markets have continued to recover from recession over the first half of 2010, the outlook remains uncertain.

“Against this background we are maintaining a clear focus on improving our portfolio, maximising the income from each of our assets and sound financial management.

“We have made good progress this year in each of these areas. The underlying quality of our portfolio has been demonstrated in our results, with lower vacancy and growing income in a challenging environment.

“Over the period we have executed a number of transactions which will improve the future growth prospects of our business whilst releasing capital for potential reinvestment.

“We have advanced our valuable development pipeline in the UK and France which will provide a basis for additional growth.”

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