Hammerson PLC (LSE:HMSO) shares rose in opening deals as it quartered its losses last year, with the group’s boss saying it had made “fundamental changes” to its business.
Losses of £429m for the REIT were down more than 75% on 2020 losses of £1.7bn, with adjusted earnings more than doubling to £81mln.
The REIT’s portfolio shrunk by 7.9% to £5.4bn last year as part of a turnaround strategy which included £503mln of disposals, including a £70m at its Silverburn site in Glasgow, and a further £120mln of disposals of Victoria, Leeds in 2022.
“The pandemic has accelerated trends in our operating environment, with people engaging with physical space in new ways. Our role is to create and curate relevant, appealing and sustainable spaces for the future.” said Hammerson chief executive Rita-Rose Gagné.
“We are already seeing the tangible results from our strategy with strong occupier leasing demand, reduced vacancies, improved collections, a lower cost base and clear path to value creation from our land bank.
“We have more to do. Today we are a forward-looking organisation with our assets at the heart of driving value creation."
Disposals helped the company shed some of its obligations, with net debt falling 19% to £1.8bn by the end of the year.
The group recorded adjusted earnings per share of 1.8p, up 38% on 2020.
A dividend of 0.2p per share in was proposed, with an enhanced scrip dividend alternative of 2p per share.
Hammerson said it was experiencing a strong rebound in footfall, with flagship occupancy up to 96%, from 93% half-way through 2021.
It expected “strong momentum” to carry it into 2022 as Covid restrictions fully relax.
Hammerson shares rose 1.21% in opening trading to reach 35.04p by 08:05 GMT.