UK Retail Landlord Struggles Amidst Administrations and Restructuring
- Hammerson reports pre-tax loss of £537.8m in full year results
- 11.2% decrease in rental income to £308.5m
- 6.7% of retailers affected by administrations and restructuring
- 33 retail units impacted across Hammersons sites
- Adjusted profit down 10.9% to £214m compared to 2018
- Sold nine retail parks for £455m in 2019
- Focus on reducing debt during 2020
- Retail and investment market uncertainty
- Reduced debt by a third
- £1bn transactions completed
- Creating a more resilient business for enhanced returns
Retail landlord Hammerson has reported a pre-tax loss of £537.8 million for the year ending December 31, up from £173.3 million in 2018. The company experienced an 11.2% decrease in rental income to £308.5 million due to 6.7% of retailers facing administrations and restructuring. Across Hammerson’s sites, 33 retail units were affected. Adjusted profit fell by 10.9% to £214 million compared to the same period in 2018. The company has sold nine of its remaining retail parks for £455 million and plans to maintain a focus on reducing debt during 2020 amidst the uncertainty of the UK retail market. David Atkins, Hammerson’s CEO, stated: ‘In the past 12 months, we have reduced debt by a third and significantly reshaped our portfolio. Despite the challenged retail and investment backdrop, we exceeded our 2019 disposal target, exited the retail parks sector, and generated nearly £1 billion in transactions. This strengthens our balance sheet, creating a more resilient business that could, at the appropriate time, generate enhanced returns for shareholders.’
Factuality Level: 8
Factuality Justification: The article provides accurate information about Hammerson’s financial performance, including losses, rental income decrease, and actions taken by the company to reduce debt. It also includes a quote from the CEO that supports the company’s strategy. However, it lacks some context or comparison with previous years for the adjusted profit decrease.
Noise Level: 3
Noise Justification: The article provides relevant information about Hammerson’s financial performance and its strategy to reduce debt and reshape its portfolio in response to the challenging retail market. However, it lacks a detailed analysis of long-term trends or possibilities, accountability for decision-makers, scientific rigor, and actionable insights.
Financial Relevance: Yes
Financial Markets Impacted: Retail sector and Hammerson’s stock price
Financial Rating Justification: The article discusses financial losses, changes in rental income, and the sale of retail parks by Hammerson, which is a company in the retail real estate industry. This directly pertains to financial topics and impacts the company’s performance and the broader retail sector.
Presence Of Extreme Event: No
Nature Of Extreme Event: No
Impact Rating Of The Extreme Event: No
Extreme Rating Justification: There is no mention of an extreme event in the last 48 hours.
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