Property giant Hammerson says it is reaping the benefits of focusing on retail over office space.
In the six months to the end of June the owner of the Brent Cross and Bullring shopping centres saw net rental income of £141.6m 1.6% down on the same period of last year, but 2.4% up on a like-for-like (LFL) basis.
The LFL comparison is important because over the reporting period Hammerson sold 75% of its London office portfolio, raising £518m which it will aim to spend on major retail projects.
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Earnings per share for the half year were 10.2p, 6.3% ahead of last year while the interim dividend has been announced at 7.7p, a 5.5% gain on 2011.
The group's occupancy rate is 97.5% while gearing has been reduced from 52% to 50%.
David Atkins, Chief Executive of Hammerson, said: "We have created a focused retail business by accelerating our plans to sell the London office assets through a single transformational deal.
"In addition, we have undertaken some excellent leasing transactions and asset management in the first half, and increased our investment in the designer outlet market."
Hammerson shares have gained 28% this year against a FTSE 100 rise of just 1.4%.
BS
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