Hammerson (LSE:HMSO), which invests in and manages prime retail-led destinations in the UK, France and Ireland, reported EPRA earnings growth of 33% to £64m for the six months to 30 June, with EPRA earnings per share up 22% to 12.1p.
Total net rental income rose 40%, while like-for-like net rental income grew 5%, as flagship occupancy reached 96%, its highest first-half level in seven years.
IFRS profit fell to £56m from £79m a year earlier, and portfolio value held at £3.6bn with EPRA net tangible assets per share unchanged at £3.94.
Hammerson raised its full-year EPRA earnings guidance to growth of approximately 27%, or around £132m, up from previous guidance of approximately £120m, with £7m of the uplift attributed to the newly acquired 50% stake in Manchester Arndale, bought for a headline price of £218m at a topped-up net initial yield of 7.8%.
"Manchester Arndale is fully in line with our criteria for increasing our scale, and is a retail-led destination at the heart of one of Europe's leading cities", said chief executive Rob Wilkinson, calling it the company's first major external acquisition in over a decade.
The company also realised £75m from non-core disposals year-to-date, including the post-period-end partial sale of Dublin Central at a premium to book value, and set new medium-term guidance of 6-8% compound annual growth in both EPRA earnings per share and dividend per share, alongside a total accounting return target of approximately 10%.
Loan-to-value stood at 39% at period end, with pro forma leverage expected to fall to around 36% following the Dublin Central disposal and Manchester Arndale acquisition.
News Intelligence what this means for the company
Hammerson raised full-year EPRA earnings guidance to 27% growth (£132m, up from £120m) on the back of a strong first half—EPRA earnings up 33% to £64m, occupancy at 96%—and the acquisition of a 50% stake in Manchester Arndale for £218m at a 7.8% net initial yield. The £7m uplift from the Arndale deal alone, combined with £75m in non-core disposals year-to-date, demonstrates the company is executing its portfolio strategy to drive earnings growth while maintaining financial discipline: pro forma loan-to-value is expected to fall to 36% after these moves.
The guidance raise and medium-term targets (6–8% EPRA EPS and dividend growth, ~10% total accounting return) rest on sustained occupancy momentum and disciplined capital deployment. The Arndale acquisition—Hammerson's first major external deal in over a decade—signals confidence in retail-led destinations and adds scale; the 7.8% yield and deleveraging path suggest the company is not overpaying for growth.
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