Shopping Centre Giant Faces Challenges Amid Pandemic
- Hammerson collects only 37% of Q2 rent amid COVID-19 impact
- Dividend suspended due to pandemic challenges
- Rent deferrals, monthly payments, and waivers considered on a case-by-case basis
- Financial guidance withdrawn for the year
Shopping centre owner Hammerson has revealed it collected only 37% of its Q2 rent bill and has suspended its dividend amid the coronavirus outbreak. In a trading update released this morning (30 March), Hammerson said that with figures adjusted for rent deferred, switched to monthly payment, and a nominal proportion waived, the figure rises to around 57% of rent due. It added that it anticipates both figures to increase as temporary agreements are implemented and further cash is collected. With retailers going through a difficult period due to the government lockdown of all non-essential stores, the shopping centre giant said it is trying to support its occupiers, ‘particularly smaller and independent brands that are less resilient to the closure’. As a result it said it has received a variety of requests for rent deferrals, monthly payments, and waivers, which it is ‘reviewing on a case-by-case basis’, taking into account the business model and risk profile of the occupier, alongside the aid made available by the relevant governments. Due to the impact of the current pandemic, while Hammerson said it remains ‘confident’ in the financial position of the business its board has taken the decision to suspend the previously announced 2019 dividend of 14.8p per share. The group has also withdrawn its financial guidance for the year.
Factuality Level: 8
Factuality Justification: The article provides accurate information about Hammerson’s Q2 rent collection and its response to the COVID-19 pandemic, including details on the percentage of rent collected, the suspension of dividends, and efforts to support tenants. It also compares the situation with a rival company, Intu.
Noise Level: 3
Noise Justification: The article provides relevant information about Hammerson’s financial situation during the COVID-19 pandemic and how it is handling rent collection from tenants. However, it lacks in-depth analysis or actionable insights.
Financial Relevance: Yes
Financial Markets Impacted: Hammerson’s stock price and the retail real estate sector
Financial Rating Justification: The article discusses Hammerson’s financial performance, specifically its collection of rent during the COVID-19 pandemic and its decision to suspend dividend payments. This directly pertains to financial topics and impacts the company’s financial markets as well as other companies in the retail real estate sector.
Presence Of Extreme Event: No
Nature Of Extreme Event: No
Impact Rating Of The Extreme Event: No
Extreme Rating Justification: There is no extreme event mentioned in the text.
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