| 6.3°C Dublin

Hammerson rent collection at 71pc in Ireland amid focus on collecting arrears


Hammerson owns Dundrum Town Centre with German insurer Allianz

Hammerson owns Dundrum Town Centre with German insurer Allianz

Hammerson owns Dundrum Town Centre with German insurer Allianz

Dundrum co-owner Hammerson has told investors that nearly a third (29pc) of its Irish commercial tenants are behind on rent.

As well as co-owning Dundrum Town Centre with German insurer Allianz, the group also owns half of the Pavilions shopping centre in Swords, the Ilac Centre in Dublin city centre and 40pc of the Kildare Village premium outlet mall.

The commercial property group operates in seven countries, with a number of flagship retail centres, including the Bullring in Birmingham.

Hammerson’s rent collection in Ireland stands at 71pc for quarter four this year, despite all non-essential retail here having been allowed to reopen since June.

Hammerson said overall footfall in all of its shopping centres now stands at around 15pc-20pc below 2019 levels.

The company has reiterated that it remains focused on collecting outstanding rent. 

“We do not anticipate granting future concessions and all avenues to collect rents due are being pursued,” it said in a trading update.

Rent collection rates have “improved” with 70pc of group billable rent collected for quarter four to date. This is “significantly ahead” of any quarter since quarter one last year, the company said.

The UK continues to be the strongest performer in terms of collections, with 74pc of rent collected. In France collections are at 65pc.

The group’s financial year 2020 rent collections now stand at 94pc (£210m collected), while 2021 year-to-date is at 78pc.

Hammerson said £41m is due in outstanding rent for the year-to-date, while a further £20m has either been waived, written off or is not yet due for 2021.

"With the entire Hammerson estate now reopened, rent collection rates has continued to improve,” Colm Lauder, analyst at Goodbody, said.

“However, the progress on arrears is the key figure of interest for us this morning and will be encouraging for Hammerson management as it is a further sign that retail tenants want to protect their pitches in prime, destination retail centres."

The trend of high conversion rates and larger basket sizes has continued, with UK sales in its destination shopping centres in line with 2019 in August and September.

Shares in the company were down 4.2pc in London yesterday afternoon.

Related topics

Most Watched