Hammerson has unveiled stinging half-year losses as its portfolio of shopping centres slumped in value amid challenges plaguing the retail industry. The shopping centre giant swung to a loss of £319.8 million in the six months to June 30, compared with a £55.7 million profit in the same period last year.
On an adjusted basis, which is Hammerson’s preferred measure, profits were down 10.5 per cent to £107.4 million. Net rental income dropped 12.3 per cent to £156.6 million.
The headline loss was due to a £423.4 million net revaluation loss on its property portfolio in the first half, as continuing market uncertainty and a slowdown in leasing affected value, especially in the UK.
More than half of this was down to its flagship shopping destinations in the UK, which had a revaluation deficit of £266 million. In France, there was a revaluation loss of £71 million, while the Irish portfolio was down by £30 million.
However premium locations produced a revaluation surplus of £111 million. Rental income on a like-for-like basis was down 0.1 per cent.
For its UK shopping centres, the decline was steeper at 6.8 per cent thanks to a wave of CVAs and administrations from retailers leaving shops empty.
