Hammerson chas announced a 12.3% increase in NAV in the six months to June 30 in its last interim results before converting to a REIT.
The UK’s fourth-biggest property company enjoyed a huge 8.1% increase in its portfolio over the period, boosting its NAV to £13.89 a share. Its assets were valued at £6.25bn at the half-year stage compared with a valuation for £5.73bn in the corresponding period in 2005.
Hammerson also reported a 4.7% increase in adjusted profits to £44.8m and a 7.9% increase in rental income to £190.3m in the six months to 30 June. The interim dividend rose 10% to 6.38p.
Chairman John Nelson said: ‘This year has been one of vigorous activity. We made good progress in letting space within the office portfolio and maintaining high occupancy at our retail schemes. Some £550m has been raised from disposals this year and over £600m invested in properties and development projects offering potential for higher returns. Momentum has been maintained since 30 June with the acquisition of five retail parks for £425m and a further £414m has been raised from disposals.’
Analysts across the Square Mile toasted the achievements of John Richard’s team, identifying its strong asset management skills as the bedrock of the company’s success in the past two years.
Daniel Horwood of KBC Peel Hunt, said: ‘Like BL and Slough, Hammerson’s result is strongly weighted to yield shift. However, deals already disclosed since the half-year leave the impression that Hammerson can achieve almost double figure percentage NAV growth through pure management effort.’