Hammerson (LON:HMSO) reported full-year 2025 results that management said were ahead of consensus, highlighting strong growth in net rental income, improved portfolio valuations, and a positive outlook for 2026 and beyond. CEO Rob Wilkinson, who joined the company in January, said his early visits to Hammerson’s 10 “flagship destination” assets underscored the scale of the turnaround achieved over the past five years and positioned the group to move into a new phase of growth.
2025 results: net rental income up 23%, positive IFRS profit
Wilkinson said net rental income (NRI) increased 23% year-over-year to £180 million, supported by joint venture (JV) acquisitions completed last year and like-for-like rental growth of 3%. He said earnings rose 5% as the company reinvested proceeds from the sale of its interest in Value Retail, and the dividend increased 6% year-over-year, reflecting both earnings growth and management’s confidence in future performance.
Portfolio performance and valuations supported by acquisitions and yield compression
Management said the portfolio value increased 33% to a little above £3.5 billion, driven by acquisitions and capital growth of 4%. Wilkinson said capital growth was supported by estimated rental value (ERV) growth and yield compression in the UK and Ireland, which contributed to a 6% increase in net tangible assets (NTA) to £3.94 per share and an 11% total accounting return.
Raja said the UK portfolio was up 13%, with average yield compression of 21 basis points and ERVs up 3%. France produced a 5% total return, driven mainly by income growth with stable yields. Ireland posted a 12% total return, with 20 basis points of yield compression and 4.5% ERV growth, which Raja attributed to Irish assets being 99% occupied. Across the group, Raja said there is “more to come” on ERVs because of a lag in valuations reflecting leasing spreads.
Operations: higher occupancy, rising footfall, record leasing activity
Wilkinson said 2025 was also strong operationally, with occupancy rising to 96%, including six of 10 destinations above 98% occupancy. He said that shift has supported a move from a “lease up” mindset to a focus on “rent up” as Hammerson looks to increase rents across its centers.
Footfall increased by 3 million visitors to 170 million in 2025, which management contrasted with national benchmarks described as flat to negative. Wilkinson said retailers generated more than £3 billion in sales across the portfolio during the year. He also cited “new for old” repositionings—replacing underutilized or vacant anchor space with new concepts—driving sales densities up 40% compared with pre-COVID levels.
On leasing, Wilkinson said Hammerson signed a record level of new deals totaling more than £50 million during 2025. He said leasing spreads were in double digits above passing rent or ERV, and referenced “additional rent of around £260 million to first break.” Management highlighted “firsts” across the portfolio for brands including Sephora, Uniqlo, M&S, and Lululemon, and said 2026 began strongly with a leasing pipeline of around £20 million.
Repositioning and development pipeline: Cabot Circus, The Oracle, and France
Wilkinson detailed several asset initiatives:
- Cabot Circus: The opening of an M&S store in November drove a 550% increase in footfall on opening day, with M&S reporting record sales. Hammerson also upgraded the car park with frictionless technology, lifting usage by about 25% year-over-year. An ODEON Luxe cinema has opened and is described as the only cinema in Bristol city centre, which management expects to support evening activity and food-and-beverage performance. Further openings including Uniqlo and Sephora are planned, and the regeneration of Quakers Exchange and public realm works have begun.
- The Oracle: Hollywood Bowl and TK Maxx were introduced last year; management said Hollywood Bowl had its best-ever opening at the center and helped lift second-half 2025 footfall by 9%. Wilkinson said net rental income is up 10% at the scheme, with more expected to flow through from the upsizing of Zara and Apple during 2026. He noted multiple options for the former Debenhams unit and said the company recently received outline planning for a residential scheme at Reading Riverside.
- Les 3 Fontaines / Cergy-Pontoise: The extension phase is fully pre-leased to Primark and Nike, and management said leasing momentum is already benefiting adjacent space, including lettings to an Apple reseller and Aroma-Zone. Wilkinson said Cergy is now 90% occupied—“which it never has been before”—and occupancy is expected to rise further as the extension opens and trades from Q1 next year.
On capital recycling, Wilkinson said Hammerson completed the sale of its last interest in Leeds for £6 million, slightly above book value, bringing total proceeds to £32 million over roughly 18 months and completing the company’s exit from that market.
Balance sheet, acquisitions, and 2026 guidance
Raja said loan-to-value was 39% and liquidity remained high at £1 billion, while credit ratings were strengthened by both agencies during the year. He said refinancings in 2024 and 2025 “largely addressed” upcoming maturities, and that since year-end Hammerson repaid a further £104 million of debt from cash on the balance sheet.
Wilkinson said that over the last 15 months Hammerson invested just under £760 million buying out four JV partners at a yield in excess of 7.5%, calling the transactions significantly accretive to earnings and completed without adding management resource. Management said it will continue to pursue disciplined, accretive acquisitions consistent with its retail-led destination strategy, while staying within balance sheet “guardrails,” and may use a mix of equity, debt, partnerships, and capital recycling to fund opportunities.
For 2026, management guided to NRI growth of around 20%, driven by a full-year contribution from acquisitions and like-for-like rental growth of 4% to 5%. Raja said EPRA earnings are expected to grow about 15% to around £120 million, with EPS growth around 10% reflecting the prior equity issuance. The company also guided to net finance costs of about £60 million, and total repositioning capex of around £30 million at Cabot Circus, The Oracle, and Cergy-Pontoise, plus around £34 million of ongoing leasing capex. The dividend payout ratio is expected to remain 80% to 85%.
In Q&A, management said tenant health remained robust, describing occupancy cost ratios in the mid-teens across the UK, France, and Ireland. They also said indexation in France is expected to be “pretty much zero” in 2026, but that the outlook was already reflected in guidance and supported by leasing and asset initiatives, including lease-up at TDP and progress at Cergy.
Wilkinson said the biggest challenge for 2026 would likely be macro factors outside Hammerson’s control, particularly consumer impacts in the UK and potentially France.
About Hammerson (LON:HMSO)
Hammerson is a cities business. An owner, operator and developer of prime urban real estate, with a portfolio value of £4.7billion (as at 30 June 2023), in some of the fastest growing cities in the UK, Ireland and France. Our portfolio and adjacent lands leverage our experience and capabilities to create and manage exceptional city centre destinations with the opportunity to drive value and reshape entire neighbourhoods. Our assets are high profile and play an important role in our communities, welcoming c.
