Hammerson Reports Robust FY25 Results: Net Rental Income Up 23%, Earnings and Dividend Grow

Strong FY25 performance and a bigger, better Hammerson

Hammerson has posted a robust set of FY25 results, showing a business that has scaled up and tightened execution. Total net rental income (NRI) rose 23% to £180m, helped by like-for-like growth and newly acquired joint venture interests. EPRA earnings edged up 5% to £104m, with EPRA EPS up 4% to 20.7p. Importantly, the IFRS line swung to a £232m profit (FY24: £526m loss) after a £120m net revaluation gain.

The balance sheet remains serviceable after an investment-heavy year. Loan to value (LTV) is 39% and the Group highlights annualised net debt:EBITDA of 8.1x. EPRA net tangible assets (NTA) per share increased 6% to £3.94. The dividend is up 6%: a final of 8.56p gives a full-year of 16.50p.

FY25 headline numbers

Metric	FY25	FY24
Net rental income	£180m	£146m
EPRA earnings	£104m	£99m
EPRA EPS	20.7p	19.9p
IFRS profit/(loss)	£232m	£(526)m
EPRA NTA per share	£3.94	£3.70
Dividend per share (FY)	16.50p	15.63p
Portfolio valuation	£3,549m	£2,659m
Loan to value	39%	30%
Net debt	£1,370m	£799m
Net debt:EBITDA (rolling 12 months)	9.5x	5.8x
Total accounting return	10.8%	(24.2)%

Where the growth came from

Scaling up at attractive yields

Hammerson invested £757m since November 2024 across Westquay, Brent Cross, Bullring and Grand Central, and The Oracle at an average yield of 7.6%.
The portfolio value is up 33% to £3.5bn (AUM £4.4bn), aided by acquisitions, ERV growth and some yield compression.
Net revaluation gains of £120m include a £95m gain in flagships, delivering a 10% total property return.

Opinion: deploying capital at a 7.6% yield into prime retail-led city destinations looks sensible if leasing momentum and occupancy hold. The revaluation gain suggests improving investor sentiment for top-tier assets.

Leasing momentum and operational outperformance

Record leasing of £51m (+18% like-for-like). New deals were done at +46% to previous passing rent and +11% ahead of ERV on a net effective basis – the fourth straight year of positive leasing spreads.
Occupancy increased to 96%, with six of ten flagship destinations at least 98% occupied.
£262m of rent is contracted to first break, with a further pipeline of about £20m.
Like-for-like NRI rose 3% as active asset management and leasing fed through.

Footfall and sales are moving the right way. The Group counted 170m visitors (up 3m like-for-like), with flagship footfall +2% overall and outperformance in every geography versus local benchmarks. Second-half footfall accelerated to +3% year-on-year, helped by new openings and repositioning – notably The Oracle (+9%) and Cabot Circus (+6%). Sales densities were up 2%, improving affordability for tenants.

Opinion: leasing at double-digit premia to ERV is a strong tell for sustained demand in prime centres. Combine that with 96% occupancy and rising footfall, and you have a backdrop supportive of rental growth into FY26.

Platform efficiency kicking in

EPRA cost ratio improved by 3.9 percentage points to 35.9%, with more reductions targeted in FY26 and beyond.
Like-for-like ERV growth of 2.7% and passing rent growth of 3.3% in flagships underline embedded upside.

Opinion: cost discipline matters just as much as leasing. The lower cost ratio gives operating leverage as the larger portfolio beds in.

Balance sheet, funding and risk checks

LTV sits at 39%, with annualised net debt:EBITDA of 8.1x. On a rolling 12-month basis, net debt:EBITDA is 9.5x. Interest cover is 5.06x.
Liquidity is £970m. During the year, Hammerson issued a heavily oversubscribed €350m 3.5% bond, signed a new unsecured £100m term loan maturing 2028, and repaid a £338m 3.5% bond at maturity.
There were credit rating uplifts – Fitch Senior Unsecured to A- and Moody’s Baa2 to positive outlook – and a front-footed 10% equity raise to part-fund Bullring and Grand Central.

Opinion: leverage is higher after the acquisition spree, and net debt has risen to £1,370m. That said, the rating moves, interest cover of just over 5x, and extended maturities point to a resilient capital structure. The key is execution: keeping occupancy high and cash generation improving to delever over time.

Guidance: double-digit growth targeted in FY26

Management expects in FY26:

Total NRI growth of about 20%, with like-for-like NRI growth of roughly 4-5%.
EPRA earnings growth of about 15% and EPRA EPS growth around 10%.

They flag high visibility on long-term income streams, with further growth in NRI and EPRA earnings anticipated in FY27 and beyond. The macro environment remains uncertain, but the operational set-up – strong leasing spreads, high occupancy and improving footfall – gives credibility to the targets.

What this means for investors

Positive: clear operational momentum. Four years of positive leasing spreads, 96% occupancy and rising footfall suggest Hammerson’s prime assets are on the right side of retail’s “best vs the rest” divide.
Positive: dividend growth of 6% and a 6% increase in EPRA NTA per share to £3.94 show both income and capital progress.
Neutral-to-cautious: leverage is up. LTV at 39% is fine for the asset class, but net debt:EBITDA needs to trend lower as integration benefits and earnings growth arrive.
Watch: delivery on repositionings (Cabot Circus and The Oracle lease-up; Cergy 3 in France launching and due to open H1 27, targeting about €2.5m annualised NRI) and the lease-up of the 122-unit Ironworks residential scheme at Dundrum.

Bottom line: a stronger, larger Hammerson is emerging, with guidance pointing to another year of growth. Execution on leasing and cost control will be the swing factors for returns.

Jargon buster (quick and simple)

Net rental income (NRI): rental income after property operating costs.
EPRA earnings/EPS: an industry measure of underlying profit that strips out valuation swings and other items, giving a cleaner view of recurring performance.
EPRA NTA: a net asset value measure focused on the long-term value of the property portfolio.
Loan to value (LTV): net debt divided by the value of the property portfolio.
ERV: estimated rental value – the market rent an asset could achieve today.
Passing rent: rent actually being paid now under existing leases.
Leasing spread: the percentage difference between new lease terms and the prior terms or ERV.

Useful links and next steps

Hammerson is hosting an FY25 results presentation and webcast at 8.00am GMT:

Results materials: FY25 results page
Webcast link: Join the webcast

If you’re tracking the story, keep an eye on FY26 leasing run-rate, occupancy progression in the repositioned assets, and the pace of earnings growth versus the stated targets.

Hammerson Reports Robust FY25 Results: Net Rental Income Up 23%, Earnings and Dividend Grow

Strong FY25 performance and a bigger, better Hammerson

FY25 headline numbers

Where the growth came from

Scaling up at attractive yields

Leasing momentum and operational outperformance

Platform efficiency kicking in

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