Hammerson (HMSO) H1 2026 earnings summary

Executive summary

• Raised FY26 guidance after a strong first half, with further uplift from the acquisition of 50% of Manchester Arndale for £218m, funded by a 10% equity placing, expected to be immediately accretive.

• Achieved highest half-year occupancy in seven years at 95.6%, with robust leasing, increased footfall, and strong sales outperformance.

• Upgraded medium-term growth targets, including 6-8% CAGR for EPS and DPS, and c.10% total accounting return.

• Completed £75m of non-core disposals at a premium to book value, including Dublin Central.

• Interim dividend of 9.67p, up 22% year-over-year.

Financial highlights

• Net rental income up 40% year-over-year to £112m; like-for-like NRI up 5%.

• EPRA earnings increased 33% to £64m; EPRA EPS up 22% to 12.1p.

• Upgraded FY26 earnings guidance to c.£132m (+27% YoY), with £7m from Manchester Arndale.

• Dividend per share up 22% to 9.67p; payout ratio targeted at 80-85% of full-year EPRA earnings.

• Portfolio value at £3.6bn; EPRA NTA per share stable at £3.94.

Outlook and guidance

• Medium-term guidance: 6-8% CAGR for EPRA EPS and DPS, and c.10% total accounting return, now based on a higher 2025 earnings base.

• FY26 total NRI growth expected at c.28%, with 25% from underlying business and 3% from Arndale.

• Like-for-like NRI growth forecast at 4-5% for FY26 and 2027.

• EPRA cost ratio targeted below 30% for FY26.

• Guidance roll-forward reflects a higher baseline due to JV consolidation and Value Retail disposal.