Shopping centre and retail park giant, Hammerson's property portfolio generated a total return of -18.3% in 2020, comprising a capital return of -20.9% and an income return of 3.2%.
There was £1.7bn in losses primarily due to property revaluation deficit.
Net Rental Income came to £158m (-41% on a like-for-like basis excluding premium outlets) impacted by Covid-19 closures, tenant restructuring and higher provisions for bad debt and tenant incentives.
During the period, adjusted earnings and EPS stood at £36.5m (2019: £214m).
Portfolio value stood at £6,338m (2019: £8,327m, Group capital return of -20.9%: UK flagships -35.8%, France flagships -15.3%, Ireland flagships -17.5%, retail parks -23.3%.
CEO Rita-Rose Gagné said, “By any measure, 2020 was an unprecedented year with every business and household affected by Covid-19. Our teams have worked tirelessly and shown remarkable commitment throughout the pandemic to ensure that we continue to keep our colleagues, customers and communities safe.
“As our results show, Hammerson was hit hard. The retail sector, already in the grip of major structural change, has been significantly impacted by the restrictions imposed to tackle the pandemic, and we’ve also seen an increasing number of retail failures. Combined, this has resulted in the largest fall in net rental income and UK asset values in the Group’s history.
“However, if this pandemic has highlighted anything, it is how much we all crave human contact as inherently social beings. As a business, Hammerson provides the places and social infrastructure where people want and need to be, and I am confident it will have a vital role in shaping neighbourhoods and communities in the future.
“Our immediate focus in 2021 is leading Hammerson through Covid-19 to safety. This means further disposals to strengthen the balance sheet, managing refinancing, and sharpening our operations to maximise income. We will then focus on realising the quality of our destinations to drive the business forward.
'We are currently working on a thorough strategic and organisational review that will map out a route to future growth to transform the business in the context of what will remain a tough economic and structural backdrop.”