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Thursday, September 07, 2023

Hammerson first half pre-tax profit up 55.6%

Hammerson has recorded a 55.6% increase in first half pre-tax profit, buoyed by strong demand for office space in the UK and France.

Key points

-Adjusted net asset value per share increased by 12.3% to £13.89.

-Strong portfolio capital return of 8.1% in the first six months of 2006.

-During the first half of the year, the group invested £168m and raised £138m from disposals. Several major transactions have been contracted since 30 June 2006, including the acquisition of a portfolio of retail parks in the UK for £425m and the sale of Liberty Shopping Centre, Romford, for £281m.

-The redevelopment of 9 place Vendôme in Paris was successfully completed; two major developments were started at an estimated total cost of £360m.

-In May, Hammerson announced its intention to become a REIT in January 2007, following which the group will be exempt from corporation tax both on UK rental income and gains arising on UK investment property sales.

The Chairman, John Nelson, said: "I am delighted to report an excellent set of results for the first six months of 2006. Adjusted net asset value per share increased by 12.3% to £13.89, whilst adjusted earnings per share of 15.1 pence were 5.6% higher than in the first half of 2005. The interim dividend has been raised by 10.0%.

This year has been one of vigorous activity. We made good progress in letting space within the office portfolio and maintaining high occupancy levels at our retail schemes. We completed a very profitable development at 9 place Vendôme in Paris, advanced the two major retail schemes currently underway in Bristol and Leicester, and enhanced our development pipeline. In addition, we have continued our active recycling of capital. Some £550 million has been raised from disposals this year and over £600 million invested in properties and development projects offering the potential for higher returns.

We are maintaining our strategy of focusing on key property markets in the UK and France and adding value through asset management, development activity and capital recycling. The group has an investment portfolio and development programme of exceptional quality and I have great confidence in Hammerson?s future performance."


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