Hammerson lifts guidance, raises £190m to fund Manchester Arndale deal

(Sharecast News) - Retail property investor Hammerson raised its full-year earnings guidance on Thursday after reporting strong first-half rental and underlying earnings growth, as the property group unveiled plans to raise around £190m to help fund the acquisition of a 50% stake in Manchester Arndale. Net rental income rose 40% year-on-year to £112m in the six months ended 30 June, while like-for-like net rental income increased 4.8%. EPRA earnings climbed 33% to £64m and EPRA earnings per share advanced 22% to 12.1p.

However, IFRS profit declined to £56m from £79m, reflecting a £9m net revaluation loss compared with a £26m gain a year earlier. Basic earnings per share fell to 10.5p from 16.2p. The interim dividend was increased 22% to 9.67p per share.

Footfall across the portfolio grew 3% and like-for-like sales increased 2%, while flagship occupancy reached 95.6%, up from 94.6%. Hammerson secured £18.5m of headline rent across its leasing activity, with principal leases agreed 52% above previous passing rents.

The company completed the £218m acquisition of half of Manchester Arndale on Wednesday, representing a topped-up net initial yield of 7.8%. It plans to issue shares equivalent to up to 10% of its existing capital through an institutional placing, retail offer and director subscriptions.

Chief executive Rob Wilkinson said: "The transaction will be immediately earnings accretive, and we see a clear path to income and value creation, leveraging Hammerson's platform to enhance the destination and deliver attractive long-term returns for our shareholders."

Hammerson now expects 2026 EPRA earnings to rise around 27% to approximately £132m, including £7m from the acquisition, versus previous underlying guidance of £120m. It forecast total net rental income growth of roughly 28% and set medium-term targets for EPRA EPS and dividends-per-share compound annual growth of 6% to 8%.

The stock was up 1.6% at 374.82p by 1013 BST.

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