Hammerson Profit Beats Estimates on Better-Than-Expected Rents
Hammerson Plc (HMSO), Britain’s third- largest real estate investment trust, reported full-year profit that beat estimates after rents grew more than expected.
Earnings before changes in asset values and one-time items rose to 20.9 pence a share from 19.3 pence a year earlier, the London-based company said today in a statement. That beat 19.9 pence, the average estimate of 20 analysts in a Bloomberg survey. Tenants signed new leases at an average of 4 percent more than expected rents, the company said. Net asset value rose 2.3 percent to 5.42 pounds a share.
Hammerson turned itself into a specialist retail-property investor last year as it sold its London office buildings. The company is looking for more retail projects in France and the U.K. after forming a venture with Westfield Group (WDC) to rebuild part of the English town of Croydon in January in a project valued at about 1 billion pounds.
“High-quality retail assets combined with active management can deliver good income growth even in a challenging environment,” Chief Executive Officer David Atkins said in the statement. “We continue to seek opportunities to enhance the scale and efficiency of our business through further acquisitions.”
The value of Hammerson’s 22 percent stake in outlet village developer and operator Value Retail Plc rose 18.3 percent last year, according to the statement. Value Retail’s nine outlet villages in Europe are now worth 2.8 billion euros ($3.7 billion), Hammerson said.
Net income fell to 138.4 million pounds from 335.7 million pounds after the company sold assets. Gross rental income declined to 295.7 million pounds from 303.9 million pounds.
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