Hammerson PLC (LSE:HMSO) will release its annual results on Thursday, 29 February, following what has been a trialling time for the commercial and retail property developer and manager.
“Hammerson has been going through a painful transition as it has continued to recover from being sideswiped by the pandemic,” said Susannah Streeter, head of money and markets at Hargreaves Lansdown.
“The journey has been made harder by cost-of-living headwinds which rattled investor confidence in the shopping centre owner, given concerns about how business would be affected at key sites like Brent Cross.
“However, it’s been narrowing annual losses and has been undertaking a disposal of underperforming parts of its portfolio, and the signs are that it’s moving in the right direction with leasing momentum improving over the first 6 months of 2023.”
Investors will be looking for the light at the end of the dark tunnel of elevated interest rates which have particularly impacted the property sector.
But with interest rate cuts in sight, “it still won’t be plain sailing for the retail sector in the immediate future”, warned Streeter.
“Whilst the macroeconomic outlook remains uncertain, we have strong leasing and operational momentum and are well placed to deliver another year of robust adjusted earnings and cash flow,” Hammerson said in its mid-year outlook.
“We have maintained our strong operational grip on the business and are on track for both our cost reduction and disposals targets.”