Shares in mall giant Hammerson tumble as the value of its real estate empire plummets
Hammerson saw stocks plummet after a fall in the value of his real estate empire.
The shopping group, which owns Birmingham’s Bullring, said the estate was worth £5.1 billion by the end of 2022, up from £5.4 billion a year earlier.
Hammerson said it was conducting “a disciplined program of divestments” of undesirable locations and focused the company on “prime city center” locations.
Slump: Hammerson, owner of Birmingham’s Bullring (pictured), said his estate was worth £5.1bn by the end of 2022 – down from £5.4bn a year earlier
It completed £195m in divestments last year and pledged a further £300m in sales by December 2023.
Market confidence was also affected by a fall in rental income from £250.4m in 2021 to £215.2m.
Shares fell 11.5 percent to close at 25.94 p.
Broker Peel Hunt said Hammerson’s balance sheet required “some TLC.”
But CEO Rita-Rose Gagne said the company had made progress despite “an unstable macroeconomic and market environment.”