UPDATE: Hammerson nets GBP189 million after equity offer to fund deal

Hammerson PLC said on Thursday it had raised £189 million through an equity issue to partly fund a major property acquisition in Manchester, England.

The London-based real estate investment trust focused on city-centre shopping centres announced this morning it intended to raise £190 million via an equity offering to partly fund its acquisition of a 50% interest in the Manchester Arndale shopping centre from Palma Arndale BidCo Ltd for £218 million.

The share placing was conducted through an accelerated bookbuild, with new shares offered to institutions via the share placing and retail investors via a separate retail offer.

Releasing results after accelerated bookbuild, Hammerson offered 52.1 million shares at 355 pence each, equivalent to ZAR78.81 apiece, representing a discount of 3.8% to the closing price of 369p on Wednesday.

Hammerson on Thursday raised its 2026 guidance as a result of the Arndale acquisition, which it said will be earning accretive from day-one. It expects total net rental income growth of 28% for 2026, comprising 25% from the underlying business and a 3% contribution from Arndale.

This morning, Hammerson reported a 28% drop in pretax profit to £57.0 million in the six months that ended June 30 from £79.1 million a year earlier. IFRS profit was £56 million, down 29% from £79 million.

It booked net revaluation losses on properties of £3.6 million, swung from gains of £20.6 million a year before. Share of results of joint ventures slumped 70% to £11.6 million from £39.3 million.

More positively, net rental income rose 40% to £112 million from £80 million.

Hammerson declared an interim dividend of 9.67 pence, up 22% from 7.94p.

EPRA earnings was up 33% to £64 million from £48 million. But basic earnings per share fell 35% to 10.5p from 16.2p.

Net debt was £1.40 billion on June 30, up 2.2% from £1.37 billion on December 31.

Shares in Hammerson were down 1.1% at 365.00 pence on Thursday in London. In Johannesburg, they were down 0.6% to ZAR81.30.

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