Shadow over property market lifting for Hammerson
PROPERTY group Hammerson today said stabilising UK real estate prices had helped slow a decline in its net asset value in the first half of 2009.
The group, which is a a partner in plans to build two major shopping centres in Yorkshire – Sevenstone in Sheffield and Eastgate Quarter in Leeds – both of which are currently on hold, also announced the retirement of chief executive John Richards next month.
Hammerson reported a 27.7% fall in half-year net asset value per share to 373p.
Chairman John Nelson said: “Having fallen in value for nearly two years, the yield on commercial property is now high relative to the cost of finance….in the UK, property yields for certain assets are no longer increasing.”
Hammerson said its rental income rose 7.3% to £156.4m and overall occupancy, excluding newly completed developments, was 95.7%, reflecting encouraging lettings activity over the first half of the year.
Mr Richards, who will leave Hammerson after almost 30 years of service at the end of September, will be replaced by UK managing director David Atkins.
Hammerson’s board has recommended an interim dividend of 6.95p.
The results are the first to be published since Hammerson sounded a £584m emergency rights issue in February.
