Profit at retail property group Hammerson boosted by Dundrum Shopping Centre revenue
Profit, including non cash valuation charges, at retail property group Hammerson plc increased by 76.7pc year on year to £287.1m (€321.8m) on the back of record leasing activity and capital growth.
According to the company’s results for the six months ended 30 June 2017, rental income at the company also increased by almost 10pc year on year to £184m.
Meanwhile the value of the company’s portfolio grew to £10.5bn from £9.7bn, an increase of 5.6pc in the six months to 30 June 2017.
In Ireland, a market the company entered in 2015 through the acquisition of a major loan portfolio, secured on a number of Dublin retail assets, from the National Asset Management Agency, net rental income was £17.4m during the first six months of 2017, an increase of 12pc in like for like rental income.
The increase in rental income was due to a strong performance at Dundrum Shopping Centre, where additional income arose from the settlement of rent reviews and new lettings undertaken, as well as additional non-rental revenues from car park and commercialisation activities.
Occupancy levels in remained very high at 99.9pc, and Hammerson said that demand for space continued to be strong.
The company went on to say that it signed leases in Ireland representing £1.5m of annual rental income in the six months to 30 June.
Key leasing transactions at Dundrum for the company included a first Irish store for Smiggle and Moss Bros’s second store in Ireland.
As part of the integration of the Ireland portfolio the company said that it has upgraded the IT infrastructure at Dundrum to improve the footfall and sales data collection processes.
Hammerson’s redevelopment of Moore Mall South at the Ilac Centre, which commenced in January 2017 is now complete.
The project involved the refurbishment of the mall and the reconfiguration of 10 units into five larger stores which have been let to brands including Regatta, The Works and Nisbetts at more than double the previous passing rent.
Commenting on the results David Atkins, CEO of Hammerson, described the performance as "strong...underpinned by record leasing activity and positive capital value growth right across our business."
"This performance is particularly pleasing in the context of a more uncertain political and economic backdrop and structural shifts in the retail sector," Mr Atkins said.