Hammerson adjusts outlook following rental income rise

British property development and investment company Hammerson has released its trading, operational and rent collection update for the third quarter of 2022. 

Like-for-like gross rental income increased by 11%, with net rental income benefitting from "strong leasing performance, improved collections and resulting lower bad debt charges".

Retail footfall was around 90% of 2019 levels, with value brand spending per visit around 4% ahead of 2019.

The company signed 221 leases year-to-date, representing £17 million of headline rent, 43% ahead of previous passing rent. Over half of leasing was from non-fashion categories, although "best-in-class fashion brands and new concepts remain core" to its offer.

Hammerson said that demand for prime space remains high and now expects FY22 adjusted earnings to be no less than £100 million. Group Q3 22 rent collections to date are at 93% and the company expects collection rates to continue to improve further by the full year.

The business also confirmed it delivered £194 million in disposals in H1. Discussions remain ongoing with a range of interested parties. In 2021, the company sold a raft of sites including its entire UK retail park business for £330 million and the Silverburn shopping centre near Glasgow for around £140 million.