Hammerson plc today announces a trading update for the three months ended 31 March 2023 which is being issued ahead of the Company's Annual General Meeting to be held at 0900 BST on 4 May 2023 at Marble Arch House, London.

Rita-Rose Gagne, Chief Executive of Hammerson, said:"We have maintained our focus on execution during the first few months of the year. We have a strong operational grip which is delivering top line growth, with continued momentum in leasing and a strong pipeline. We have further reduced costs, with more to come as we create a sustainable and agile platform.

We have exited minority stakes in France and other non-core interests, bringing total disposals since the start of 2021 to over £840m, and a sharper focus on our core portfolio of city centre assets and land. We have further strengthened the balance sheet and maintain a disciplined approach to capital allocation. Looking forward, we have strong momentum and remain on track to return to cash dividends as previously guided."

Strong Q1 reflecting consistent execution.

* Like-for-like gross rental income growth of +5% reflecting robust leasing, car parking and commercialisation performance

* Like-for-like net rental income was up +5% benefiting from solid collections (FY 22 96%;

* Q1 23 92%), lower bad debt charges and tenant incentive impairments

* Gross administration costs decreased 13% year-on-year in line with our commitment to reduce these by 20% by the end of 2024

* Value Retail has seen a strong start to the year with spend per visit up +3%

Footfall and sales

* Footfall in the UK and France up +6% year-on-year; Ireland +13%

* Sales in the UK up +6% year-on-year; France +11%; Ireland +7%

* Value Retail footfall up +14% year-on-year; sales +17%

Leasing and occupancy

* Continued momentum on leasing with 61 leases signed year-to-date, representing £9m of rent on a 100% basis

* Headline rent +18% ahead of previous passing rent, and +5% ahead of ERV on a net effective basis

* Diverse leasing mix including non-fashion, restaurant, leisure, and services

* Continued demand with a further £16m in solicitors' hands

* Occupancy up year-on-year to 95%

Valuations

* Q1 managed portfolio valuations flat on 31 December 2022; slight increase to ERVs offset by marginal adjustment to yields

Disposals

* The Group remains disciplined in its disposal programme

* Since full year 2022 results in March, we have completed disposals including Hammerson's share of Italie Deux and Italik, delivering a cumulative c.£410m of our £500m 2023 target; the Group remains confident of completing the programme on schedule

Balance sheet and liquidity

* £22m of cash distributions received from Value Retail

* Including disposals to date and debt written down, the Group's credit metrics have further improved:

Pro-forma 31 December 2022 Headline LTV 35% 39% EPC LTV 44% 47% Net debt / EBITDA 9x 10.4x

* The Group's RCF facility of £613m extended to April 2026 with pro forma liquidity of £1.2bn

* No further Group unsecured debt maturities not covered by existing cash until 2026

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