UK-based property company Hammerson has raised its full-year 2025 earnings outlook as a result of stronger-than-expected growth in its portfolio and the acquisition of the remaining 50% stake in the Bullring & Grand Central shopping mall in Birmingham that it doesn’t already own.
The group expects gross rental income to increase by about 17% in the financial year to end-December 2025, with European Public Real Estate Association (EPRA) earnings forecast at about £102m.
“We are raising our guidance for full-year 2025 on stronger-than-expected like-for-like growth and the acquisition of Bullring and Grand Central," the group said in its results for the six months to end-June.
"Consumer spending in the areas where we’ve focused our portfolio remains resilient and continues to grow — for the right products in the best locations.”
Like-for-like gross rental income rose 5%, while net rental income was uo 4%, driven by active asset management and a focus on key retail destinations. Total gross rental income grew 11%, while net rental income rose 10%, supported by the recent deployment of £321m at an average yield of 8.5%, the group said.
Hammerson increased its interim dividend by 5% to 7.94p, demonstrating its confidence in the full-year earnings forecast. The property portfolio’s value rose 11% to £3bn, with a £26m net gain from revaluations.
“Demand for our space is at a record high, with strong occupancy, rising footfall, sales, and record leasing. Our first-half performance reflects recent investments in repositioning, placemaking, and data-driven insights into consumer and occupier trends," said CEO Rita-Rose Gagné.
The purchase of the remainder of Bullring and Grand Central for £319m is expected to close in early August. It will be funded through a suspension of the share buyback programme, existing cash resources, and a 10% equity placing.
The acquisition is expected to boost group EPRA earnings per share by 4% immediately, with minimal dilution to net tangible assets per share on a half-year pro forma basis. The deal also will add about £22m in annual net rental income.
The group’s loan-to-value ratio is forecast at 37% after the deal, with net debt to earnings before interest, tax, depreciation and amortisation (ebitda) at about 7.9 times.
The group reported attracting 79-million visitors to its portfolio, a million more than last year. Flagship footfall increased by 1%, outperforming national averages and strengthening to 3% growth in the second quarter, while like-for-like sales rose 1%, with a 2% increase in the second quarter.
“Looking ahead, we have strong control and clear visibility of our long-term income. A robust leasing pipeline, ongoing acquisitions, and repositioning projects support growth for 2026 and 2027. We remain confident in delivering 8%-10% EPRA earnings per share compound annual growth over the medium term,” the group said.
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