Hammerson bond issuance sees strong investor demand
Retail-focused property group Hammerson Plc has reported solid momentum in the third quarter as it announced strong investor demand for a new bond offering.
The company said it priced a €350m bond with a maturity of 6.5 years and an annual coupon of 3.5%, over five times covered at peak.
The new bond, the first stage of the early refinancing of €700m of sustainability-linked bonds maturing in 2027, follows last week's credit rating upgrade by Fitch and a positive outlook given by Moody's.
As a result of the earlier issuance of the €350m bond, Hammerson now expects 2025 earnings to be "around £101m", more or less in line with the company's guidance of £102m given in July, which was upgraded from earlier forecasts of £95m.
"We are delighted with the high levels of demand for our bond issue, a testament to the strength and success of our strategic delivery," said chief executive Rita-Rose Gagné.
Footfall across the company's UK properties was up 6% year-on-year over the three months to August, with 1.3m extra customer visits during the summer. Footfall across its two French destinations was up 5% and up 3% at Dundrum in Dublin.
Meanwhile, leasing demand for prime space was "strong", with 71 long-term deals exchanged over the same period, representing £10m of headline rent per annum (at 100%). Long-term leases were signed at 29% above previous passing rent at 15% ahead of estimated rental values.
"We continue to invest in destination repositioning and leasing to drive returns while our JV buyouts have enabled us to take full control of our assets and grow income. Demand for our prime space is robust, as evidenced by the operational performance we drove over the summer," Gagné said.
"Momentum is continuing into September and October and we have a strong pipeline ahead."
Hammerson shares were up 0.8% at 287.60p by 0824 BST.
Disclaimer & Declaration of Interest
The information, investment views and recommendations in this article are provided for general information purposes only. Nothing in this article should be construed as a solicitation to buy or sell any financial product relating to any companies under discussion or to engage in or refrain from doing so or engaging in any other transaction. Any opinions or comments are made to the best of the knowledge and belief of the writer but no responsibility is accepted for actions based on such opinions or comments. Vox Markets may receive payment from companies mentioned for enhanced profiling or publication presence. The writer may or may not hold investments in the companies under discussion.
