Hammerson half-year results 2026: guidance raised after strong first half

Hammerson raises its expectations for 2026

Hammerson PLC has raised its full-year earnings guidance following a strong first half and the acquisition of a 50% interest in Manchester Arndale.

The owner and manager of prime retail-led destinations reported higher rental income, improved occupancy and growth in EPRA earnings for the six months ended 30 June 2026. It also increased its interim dividend by 22%.

EPRA earnings, an industry measure intended to show the recurring earnings generated by a property business, rose by 33% to £64 million. EPRA earnings per share increased by 22% to 12.1p.

The results suggest Hammerson's existing portfolio is moving in the right direction. The Manchester Arndale purchase then adds another source of income, although investors must also consider the equity placing used to fund the transaction and the group's existing debt levels.

The full figures are available in the original company announcement.

Hammerson's key half-year figures

Metric	H1 2026	H1 2025	Change
Net rental income	£112 million	£80 million	Up 40%
Like-for-like net rental income growth	4.8%	4.0%	Improved
EPRA earnings	£64 million	£48 million	Up 33%
EPRA earnings per share	12.1p	9.9p	Up 22%
IFRS profit	£56 million	£79 million	Down 29%
Interim dividend per share	9.67p	7.94p	Up 22%
Flagship occupancy	95.6%	94.6%	Up 1 percentage point
Footfall growth	3%	1%	Improved
Like-for-like sales growth	2%	1%	Improved

The contrast between rising EPRA earnings and lower IFRS profit is worth understanding.

Hammerson recorded an IFRS profit of £56 million, down from £79 million. The latest period included net revaluation losses of £9 million, compared with gains of £26 million in the previous year. Property valuations can create significant movements in reported profit without necessarily reflecting the recurring rental performance of the portfolio.

That makes the 33% increase in EPRA earnings particularly important when assessing the operational progress made during the period.

Rental performance and occupancy improve

Total net rental income rose by 40% to £112 million, while like-for-like net rental income increased by 4.8%. The like-for-like figure strips out portfolio changes to provide a clearer view of performance from comparable properties.

Footfall increased by 3%, ahead of the national benchmarks referenced by Hammerson across all its territories. Like-for-like sales grew by 2%.

Flagship occupancy reached 95.6%, up from 94.6% a year earlier. Hammerson described this as its highest first-half occupancy level for seven years.

Leasing activity also remained robust. The group secured £18.5 million of headline rent, with principal leases agreed 52% above previous passing rent and 9% above estimated rental value, or ERV. ERV is management's estimate of the rent a property should command in the current market.

The 52% uplift against previous rent is encouraging. However, the £18.5 million leasing value was below the £23.2 million reported in the first half of 2025, while the premium to ERV moderated from 13% to 9%.

Manchester Arndale becomes the growth centrepiece

Hammerson has agreed to acquire a 50% interest in Manchester Arndale for a headline price of £218 million. The transaction represents a topped-up net initial yield of 7.8% and is expected to increase earnings from day one.

This is the company's first major external acquisition in more than a decade. It expands Hammerson's scale and geographic footprint while giving the group an opportunity to apply its existing management platform to another large retail-led destination.

The acquisition is being funded through an associated equity placing. That funding choice should help limit the immediate balance sheet burden, but issuing shares can dilute existing shareholders unless the additional earnings and longer-term value creation compensate for the larger share count.

Hammerson has also recycled capital into buying the 50% of Dublin's Ilac Centre that it did not already own. The price and other financial details of that acquisition were not disclosed in this announcement.

Guidance rises to £132 million

Hammerson now expects FY26 EPRA earnings to grow by approximately 27% to around £132 million.

That guidance consists of approximately £125 million of underlying earnings, up from previous guidance of around £120 million, plus £7 million expected from Manchester Arndale.

The distinction matters. The upgrade is not solely the result of the acquisition, as management has also lifted its underlying expectation by approximately £5 million.

Hammerson also introduced medium-term guidance from its FY25 base:

• EPRA earnings per share compound annual growth of 6% to 8%
• Dividend per share compound annual growth of 6% to 8%
• Total accounting return of approximately 10%

Compound annual growth rate, or CAGR, describes the average yearly growth expected over a multi-year period. Hammerson did not disclose the exact number of years covered by its medium-term targets in the summarised announcement.

These targets provide investors with a clearer framework for judging delivery, but they remain forward-looking and depend on operational performance, financing conditions and property values.

Dividend growth is backed by higher recurring earnings

The interim dividend increased by 22% to 9.67p per share, matching the percentage growth in EPRA earnings per share.

That alignment is reassuring because the distribution has risen alongside the group's recurring earnings measure rather than running materially ahead of it.

Hammerson's medium-term target for annual dividend growth of 6% to 8% also signals confidence in future cash generation. Still, it is guidance rather than a guarantee, and future distributions will depend on financial performance and capital requirements.

Balance sheet progress comes with caveats

At 30 June 2026, the portfolio was valued at £3.596 billion, compared with £3.549 billion at the end of 2025. EPRA net tangible assets per share were unchanged at £3.94.

Loan to value, which compares net debt with property assets, remained at 39%. Net debt increased from £1.370 billion to £1.404 billion, although liquidity improved to £1.113 billion.

Net debt to EBITDA fell from 9.5 times to 8.1 times. On a pro forma basis, including the Dublin Central disposal, Manchester Arndale acquisition and expected equity placing outcome, Hammerson estimates loan to value of approximately 36% and net debt to EBITDA of around seven times.

Those pro forma figures point to improved leverage, but debt remains significant. Interest cover also fell from 5.06 times to 4.21 times, showing that financing costs deserve continued attention.

Strategic land provides another source of value

Hammerson generated £75 million of proceeds from non-core disposals during the year to date, including the post-period partial sale of Dublin Central at what it described as a substantial premium to book value. The size of that premium was not disclosed.

The group also progressed several development opportunities:

• Initial capital was deployed on design and procurement for The Drum, an office-led concept in Birmingham
• Strip-out and preparatory work advanced at Martineau Galleries
• A resolution to grant planning consent was secured for a student-led development at Cabot Gate in Bristol

These projects could unlock value from land that is not currently contributing fully to earnings. They may also require further capital and carry the usual planning, construction and execution risks.

What investors should watch next

Hammerson's first-half performance was supported by higher rental income, stronger recurring earnings, improved occupancy and a larger dividend. The increase in underlying guidance makes the update more convincing than an upgrade driven entirely by acquisition activity.

Manchester Arndale now becomes a key test. Investors will want to see whether the expected £7 million FY26 earnings contribution arrives as planned and whether Hammerson can generate additional income and value without allowing leverage to move in the wrong direction.

Other important indicators include leasing volumes, rental growth, interest cover and property revaluations. For now, operational momentum is clear, but successful integration and disciplined capital allocation will determine whether the new medium-term targets are achievable.