MAXIMISING INCOME THROUGH ACTIVE MANAGEMENT
Strong leasing momentum with new rents secured of £29.5 million (2013: £23.9 million) for 178,900m² (2013: 153,900m²) demonstrating continued demand for high-quality retail property; occupancy remains strong at 97.5%
Leases signed overall at 6% above ERV and 5% above previous passing rents; ERV growth of 2.6% across UK shopping centre portfolio
Growth of 2.1% in like-for-like net rental income demonstrating the success of pro-active asset management
Final dividend increased 7.4%; total dividend for the year of 20.4 pence per share (2013: 19.1 pence per share)
CREATING HIGH-QUALITY RETAIL DESTINATIONS
Les Terrasses du Port, Marseille, welcomed over 8 million visitors since launch; total development profit of £107 million
Construction commenced at Victoria Gate, Leeds, and WestQuay Watermark, Southampton, with pre-lettings of 40% and 58% respectively. On track for opening of Le Jeu de Paume, Beauvais, and Elliott's Field, Rugby in 2015
Significant progress at major developments: CPO progressing at Croydon; planning approval granted at Brent Cross; planning application submitted at The Goodsyard, East London
Successfully completed disposals of Queensgate and 10 Grosvenor Street raising proceeds of £153 million
£100 million of new capital invested in Premium Outlets; nearly £1 billion of GAV exposure to this fast-growing segment; new VIA Outlets partnership acquired six centres, the latest being Landquart Designer Outlet, Zurich
ENHANCING CAPITAL STRENGTH
Successfully raised over £1 billion of capital (equity and debt), enhancing flexibility to fund further expansion
Property portfolio, including the Group's interest in Value Retail and VIA Outlets, delivered revaluation gain of £547 million, equivalent to a total return of 13.6%
EPRA cost ratio reduced to 23.4% (2013: 24.6%); on track to achieve target ratio of 21% by 2016
David Atkins, Chief Executive of Hammerson, said: "We have delivered strong results on the back of a significant uplift in asset valuation and continuing income growth. The recovery in UK consumer sentiment has continued to strengthen, driving increased demand from retailers for prime space, which is now translating into ERV growth across the whole portfolio. In France, we have seen an encouraging improvement in performance, reflecting the success of our refurbishment programme.
We have built a successful track record, growing shareholder dividends by close to 25% over the last three years. With strong momentum across our markets predicted to continue, bolstered by further growth from our prime portfolio, strategic exposure to the fast growing outlet sector and our major development programme, we remain confident in our ability to deliver sustainable growth going forward."
