Hammerson: Bicester Village sale hits earnings

British shopping centre giant Hammerson has reported a drop in earnings due to the impact of portfolio sales despite an overall rise in rents and occupancy.

Despite higher rents across its portfolio, Hammerson’s rental income fell to £189m during the year, down nine per cent year on year. Hammerson attributed this to the impact of disposals.

Adjusted earnings fell 14 per cent to £146m, which Hammerson again said was due to the impact of disposals.

Last August, Hammerson sold its share in the company behind Bicester Village, Value Retail, taking a loss of £497m during the first half of its financial year due to the sale.

Occupancy at Hammerson’s retail and leisure location reached over 95 per cent in 2024, with 262 leases signed on 1m sqft of space during the year.

Hammerson, which operates flagship destinations—its 10 city locations rank in the top 20 of all retail venues in the UK, France, and Ireland—said that footfall across its portfolio rose 17 percent quarter on quarter in the UK.

This is a marked contrast to smaller high stores across the UK, where footfall fell quarter on quarter.

CEO of Hammerson Rita-Rose Gagné said the business had taken advantage of “structural market trends” such as the flight to quality.

Rita-Rose Gagné added: “We enter 2025 as a repositioned business. In landing the pivotal sale of Value Retail and completing our non-core disposals, we have generated £1.5bn of cash proceeds over the last four years, materially strengthening our capital structure, and enabling investment for growth in our high-quality portfolio.

“We have strategically realigned the business to benefit from structural market trends. First, cities are engines of economic growth, and we have concentrated our portfolio on exceptional assets in some of Europe’s fastest growing and most vibrant cities.

“Second, the flight to quality where occupiers want fewer and more productive stores in only these locations, enables us to attract leading global and local brand partners.

“Third, the physical experience has become more relevant for consumers and our brand partners, with at least 80 per cent of all retail transactions touching a store. We are confident in our strategy and optimistic about the opportunity ahead for Hammerson.”