Hammerson widens losses as pandemic wipes £2bn off portfolio value
(Getty Images)
Retail landlord Hammerson this morning posted a £1.7bn loss for last year, after the coronavirus pandemic wiped £2bn off the value of its property portfolio.
Hammerson, which owns Birmingham’s Bullring Shopping Centre, said losses widened from £781m in 2019 to £1.7bn last year, primarily due to falling property values.
Its portfolio value at the end of 2020 was £6.33bn, down from £8.32bn the previous year, driven by a 35.8 per cent decline in its UK flagship retail destinations.
Net rental income dropped 41 per cent to £158m due to Covid-19 closures, tenant restructuring and higher provisions for bad debt and tenant incentives – the sharpest fall in the group’s history.
The company said its portfolio is now valued at £6.3bn (€7.35bn), down from £8.3bn in 2019.
Hammerson operates in seven different countries, with a number of flagship retail centres including the Bullring in Birmingham, UK.
It co-owns Dundrum Town Centre, along with German insurer Allianz. The group also owns half of the Pavilions shopping centre in Swords, the Ilac Centre in Dublin city centre and 40pc of the Kildare Village premium outlet mall.
Net rental income of £158m last year was down 49pc as a result of Covid-19 closures, tenant restructuring and higher provisions for bad debt and tenant incentives, according to annual results from the group.
By Alec Mattinson2021-03-12T09:10:00+00:00
Top story
The UK’s biggest shopping centre owner Hammerson has posted a £1.7bn annual loss as the coronavirus pandemic has slashed the value of its portfolio and rental income plummeted.
The Bullring and Brent Cross owner’s headline loss rose to £1.7bn in the year to 31 December 2020 compared to a £781m loss in 2019, primarily due to a significant fall in its property value.
Its portfolio fell in value by almost £2bn to £6.3bn from £8.3bn, while group capital returns were down 20.9%, with UK flagships down 35.8%, France flagships down 15.3%, Ireland flagships down 17.5%, retail parks down 23.3% and Value Retail down by 6.2%.
Royal Mail PLC inches up on the back of plans to trial Sunday deliveries proactiveinvestors.co.uk - get the latest breaking news, showbiz & celebrity photos, sport news & rumours, viral videos and top stories from proactiveinvestors.co.uk Daily Mail and Mail on Sunday newspapers.