First Read Hammerson: Earnings up but NTA flat

Research evidence excerpt

First Read Hammerson: Earnings up but NTA flat

of headline rent signed at spreads of +52% versus previous passing rents 12/28E 24.93 24.78

(+17% excluding voids) and +9% versus ERV, while occupancy increased to 96%, the

Zachary Gaugehighest H1 level in seven years. This drove EPRA EPS to 12.1p and a ~5% beat on

Analyst

consensus expectations. EPRA NTA was a downside surprise however, remaining flat at

zachary.gauge@ubs.com

394p, around 2% below consensus. Despite the strong occupational backdrop, capital +44-20-7901 5534

growth was muted, with the group reporting a £9m net revaluation loss, LFL ERV growth

Charles Boissier, CFAslowing to just 0.4%, and total property returns of 3.0%. Flagship valuation changes

were UK -0.3%, France -0.5% and Ireland +0.6%.

charles.boissier@ubs.com

+44-20-7568 4415

Guidance and outlook

Nadir Rahman

Management raised FY26 EPRA earnings guidance for the underlying business to Analyst

£125m from £120m previously, reflecting stronger-than-expected H1 trading. nadir.rahman@ubs.com

Management specifically noted that the one-off income benefits outlined above are the +44-20-7567 1750

reason the upgraded guidance is not simply an annualisation of the £64m H1 run-rate.

Including the contribution from the Arndale acquisition, total FY26 EPRA earnings

guidance increases to £132m, implying c.27% year-on-year growth. The group

continues to point to high occupancy, positive leasing spreads, embedded reversion and

the benefit of recent acquisitions as supporting earnings growth into FY27 and beyond.

Valuation: HMSO trades at a 6% discount to EPRA NTA

Our model is economic profit based and points to a 22% discount t+1

Highlights (£m) 12/23 12/24 12/25 12/26E 12/27E 12/28E 12/29E 12/30E

Net rental income 167 146 180 207 220 231 240 249