Hammerson Reports Strong FY25 Results, NAV Beats Expectations at 394p

Feb 23 (UA Finance) – Hammerson has announced a net asset value (NAV) of 394 pence per share for the full year 2025, surpassing analysts' expectations. The result exceeded Jefferies’ forecast of 374 pence by 20 pence, with the consensus estimate set at 379 pence.

Strong Financial Performance Amidst Market Growth

The company's total net rental income reached £180 million, marking a 23% increase compared to the previous year. Meanwhile, Hammerson's portfolio values grew by 4%, totaling £3.5 billion.

Footfall across Hammerson's properties showed positive growth, with the UK seeing a 2% increase, outperforming the benchmark decline of 3%. In France, foot traffic grew by 4%, compared to a 1% increase in the benchmark. In Ireland, there was a 0.4% rise in footfall, while the benchmark recorded a 1% decline.

Increased Occupancy and Leasing Activity

Occupancy levels rose by 1%, reaching 96%, with six of the company’s flagship locations achieving occupancy rates of 98% or more. Like-for-like net rental income increased by 3%, driven by strong asset management and record leasing activity.

EPRA earnings grew by 5% to £104 million, with earnings per share rising 4% to 20.7 pence, slightly below Jefferies' forecast of 20.3 pence. EPRA net tangible assets per share rose by 6% to £3.94.

Profitable Recovery and Positive Market Outlook

Hammerson reported an IFRS profit of £232 million, reversing a £526 million loss from the previous year, which had been attributed to changes in portfolio valuation. The company achieved a total accounting return of 11%.

Improved Credit Rating and Financial Health

The company’s balance sheet showed a loan-to-value ratio of 39%, and Fitch upgraded Hammerson's Senior Unsecured rating to A-. Hammerson's Net Debt to EBITDA ratio stands at 8.1 times.

Dividend Growth and Positive Outlook for FY26

Hammerson raised its dividend by 6% to 16.5 pence, surpassing Jefferies’ estimate of 16.2 pence. The company forecasts a 20% growth in net rental income, a 15% increase in EPRA earnings, and a 10% growth in earnings per share for the 2026 financial year.