Shares of shopping center giant Hammerson fall as the value of its real estate empire plummets
Hammerson saw his shares tumble after a fall in the value of his real estate empire.
The shopping center group, which owns the Bullring in Birmingham, said its estate was worth £5.1bn at the end of 2022, up from £5.4bn 12 months earlier.
Hammerson said it was conducting “a disciplined program of divestments” of unwanted sites and focusing activity on “prime downtown” locations.
Slump: Birmingham Bullring owner Hammerson (pictured) said his estate was worth £5.1billion at the end of 2022, up from £5.4billion 12 months earlier
It made £195million in disposals last year and has pledged to sell a further £300million by December 2023.
Market confidence has also been shaken by a fall in rental income from £250.4m in 2021 to £215.2m.
The shares plunged 11.5%, closing at 25.94p.
Broker Peel Hunt said Hammerson’s balance sheet needed “a little TLC.”
But Chief Executive Rita-Rose Gagné said the company had made progress despite “a volatile macroeconomic and market backdrop”.