Occupancy levels holding up at Hammerson

Property company Hammerson was happy to report that the occupancy level across its portfolio remains high, though it has dipped to 97.1% from the end-June figure of 97.2%.

The UK Retail arm's occupancy level at the end of September had eased to 96.9% from 97.2% at the end of June, but the French Retail arm saw a rise over the same period from 97.3% to 97.7%. The occupancy level in the UK Office division remained stable at 97.3%.

During the quarter, footfall and sales in the UK shopping centre portfolio declined 1.9% and 3.8% respectively, in part reflecting the impact of the riots in August and strong prior year comparisons at some retailers. In France, footfall and sales fell 4.9% and 6.5% respectively, heavily affected by the different timing of the national summer sales period.

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Across the entire retail portfolio the number of units in administration has fallen to 40, from 53 at 30 June, representing less than 1% of passing rents. Collection rates have remained excellent.

"Polarisation in consumer markets is benefiting our regionally dominant shopping centres and convenient retail parks, both of which continue to attract successful retailers,2 claimed David Atkins, Hammerson's chief executive.

The group said it remains confident in the long-term outlook for the London office market, it hints that demand currently is on the lukewarm side and remains prone to fluctuate in line with sentiment about the global economy.

Net debt at the end of September was unchanged from the end-June figure of £2.2bn.

"We will continue to seek to recycle capital through selective asset disposals. However, if there is continuing stress in the euro-zone financial system we may see some attractive acquisition opportunities across our markets in 2012," Hammerson said.

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