Hammerson’s rental income is showing signs of recovery as Irish occupancy rates rise

Retail real estate company Hammerson said occupancy at its flagship Irish properties improved to 96 per cent in the first half of the year.

The company jointly owns Dundrum Town Centre, half of Pavilions shopping center in Swords, the Ilac Center in Dublin city center and 40 per cent of Kildare Village with German insurer Allianz.

The commercial real estate group operates in seven countries, including a number of flagship retail centers.

In the first half of the year, sales in Ireland were up 3 percent from 2019 levels. Sales at Hammerson’s UK sites were up 2 percent but in France were about 5 percent below pre-pandemic levels.

Hammerson also noted an improvement in rent collections in the first half of the year, with 94 percent of last year’s rent now being collected. 92pc were collected for the first half of this year.

Commercial tenants at the company’s Irish sites paid £17.3m (€20.6m) in rent for the first half of the year, a 44.7% increase on the same period last year.

Last October, Hammerson said 29 per cent of its commercial tenants in Ireland were in arrears on their rent.

Estimated Occupied Rental Values ​​(ERVs) in Ireland rose 0.5 per cent with Dundrum ERVs up 0.6 per cent. This was spurred by the opening of Brown Thomas in the former House of Fraser unit in February, with Penneys moving into the remaining premises in the first half of the next year.

The retail real estate company also said that year to date there has been limited retail investment activity in Ireland, with retail accounting for just 3 per cent of total transactions.

Hammerson also intends to develop a 107 private rented sector (PRS) program, the Podium, in Dundrum. The company expects work to begin in the second half of the year.

The podium will serve as a proof of concept for a larger Dundrum estate of nearly 900 units.

As a result of heightened economic uncertainty, Hammerson predicts that in the worst-case scenario next year, group-wide net rental income could fall 40 percent below 2019 figures. This decline was attributed to lower rental income, weaker occupancy performance or rent rebates as a result of a downturn or forced store closures.

“Frequency, turnover, occupancy and collections are recovering and are now close to 2019 levels. We are now seeing good rental performance ahead of previous pass rental and just ahead of ERV. We have strengthened our tenant profile, we have a strong and diversified second-half lease pipeline and robust occupancy rates across all our destinations,” said Chief Executive Rita-Rose Gagné.

“We recognize the potentially volatile environment and remain focused on executing our strategy.”

https://www.independent.ie/business/irish/hammersons-rent-collections-show-signs-of-recovery-as-irish-occupancy-rates-rise-41873523.html Hammerson’s rental income is showing signs of recovery as Irish occupancy rates rise

Fry Electronics Team

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