Hammerson plc (LON: HMSO) said on Friday that its losses surged by over 100% in 2020 due to the COVID-19 crisis that has so far infected more than 4.2 million people in the United Kingdom and caused over 125 thousand deaths. The company also committed on Friday to further disposals this year.
Hammerson shares, that you can learn to buy online here, opened at 32.20 pence per share and is currently trading 33.67 pence per share. In comparison, the stock had started the year 2021 at an even lower 23.12 pence per share.
Hammerson reports £183 million of revenue
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Hammerson said that its pre-tax loss came in at £1.73 billion in 2020. In the previous year, its pre-tax loss was capped at a much lower £779.3 million. The company attributed its dovish financial performance to closures, tenant incentives and restructuring, property revaluation deficit, and higher provisions to cover for bad debt.
The property development firm valued its revenue in the recently concluded year at £182.9 million versus the year-ago figure of a higher £246.2 million. On a comparable basis, Hammerson’s net rental income saw a 41% decline in 2020 to £157.6 million, which marked the steepest decline in history.
EPRA net tangible assets, the investment company added, plummeted to 82 pence per share as of 31st December, compared to 116 pence per share at the end of 2019. In an announcement in January, the real estate investment trust said it collected 41% of the due rent in the first quarter.
According to Hammerson, disposals in 2020 resulted in £328 million of net proceeds. In a bid to shore up finances amidst the ongoing Coronavirus pandemic, the London-based company is committed to further disposals this year that will help sharpen its operations and manage refinancing.
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Hammerson declares 0.2 pence per share of final dividend
Hammerson’s board announced 0.2 pence per share of final dividend on Friday – a sharp decline from 14.8 pence per share in 2019. Upon shareholder approval, the British firm also intends to offer 2 pence per share of an enhanced scrip dividend.
As per the Office for National Statistics, the pandemic related lockdown affected the British economy less than feared.
Hammerson performed largely downbeat in the stock market last year with an annual decline of over 80%. At the time of writing, the British property development and investment company is valued at £1.36 billion.