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The Markets
by Proactive
Proactive UK has moved.
Coverage of London’s small caps continues on proactiveinvestors.com
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The Markets
by Proactive
Proactive UK has moved.
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The Markets
by Proactive
Proactive UK has moved.
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Real Estate

Hammerson slumps deeper into loss after £1bn property write-down

Net asset value dropped against a "challenged" UK sector

Hammerson PLC (LON:HMSO) wrote down its property portfolio by more than £1bn in 2019 as the UK retail sector struggles continued.

Losses before tax at the Bullring and Brent Cross owner widened to £574mln (from £173mln) as rent and car park income fell.

READ: Hammerson dumps nine retail parks for £455mln

Net asset value per share tanked 19% to £6.01 and though the dividend was maintained this time at 25.9p, for the current year it will be cut by 46% to 14p.

Veteran chief executive David Atkins said it has been successful in culling the retail portfolio and re-focusing on other uses of its land to try to stabilise the business.

"Against a challenged retail and investment backdrop, we have exceeded our 2019 disposal target, exited the retail parks sector as we said we would and reduced debt by a third".

The FTSE 250-listed landlord recently sold the last of its retail parks for £455mln, which will be used to reduce the year-end net debt of £2.8bn further.

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