Mall owner Hammerson posts higher NAV, income

Anglo-French real estate investor Hammerson booked a 7.8% rise in its half-year adjusted net asset value on Monday although it remains cautious for the future as fears for a relapse in property values stalk the market.
The retail property specialist, which owns or co-owns some of Europe's most popular malls like the Birmingham Bullring and Italie 2 near Paris, posted adjusted NAV per share of 454 pence in the six months to June 30 and a 5.2% mark-up in its 5.2 bln pounds portfolio.
The board has declared a 2.9% increase in its interim dividend to 7.15 pence per share after achieving a 5% like-for-like increase in net rental income to 140 mln pounds over the period.
Good lettings progress, particularly in the second quarter, upped occupancy to 96%, compared with 95% six months earlier.
Despite the solid results, Chairman John Nelsom said the company was still brooding over the condition of its core UK and French real estate markets, which have been hit hard by flagging economies and a shortage of debt.
"Although our markets have continued to recover from recession over the first half of 2010, the outlook remains uncertain," Nelson said in a statement.
"The underlying quality of our portfolio has been demonstrated in our results, with lower vacancy and growing income in a challenging environment," he added.
Hammerson posted its figures just days after the International Monetary Fund fanned fresh doubts about the strength of the global banking system in a report which suggested some small and medium-sized banks needed more capital to cushion against commercial mortgage defaults.