Hammerson prices €350m bond, anticipates higher FY25 earnings

Hammerson plc has successfully priced a new €350m bond with a 6.5-year maturity, offered at 110 basis points over euro mid-swaps with an annual coupon of 3.5 per cent. The issuance was over five times covered at its peak and represents the first stage of refinancing the group's €700m 1.75% sustainability-linked bonds, maturing in June 2027. Following this issuance, Hammerson now anticipates FY25 earnings to be approximately £101m.

This bond issuance follows recent credit rating upgrades, with Fitch raising Hammerson's senior unsecured debt rating to A- and long-term issuer rating to BBB+, while Moody's revised its Baa2 rating outlook to positive. Chief executive Rita-Rose Gagné highlighted the strong demand for the bond as a testament to the company's strategic success and operational strength.

Operational momentum remained strong during the summer months (June to August), with UK footfall increasing by 6% year-on-year and overall group like-for-like sales growing by 2.4%. Key UK performances include Bullring (+12%), The Oracle (+9%), and Cabot Circus (+5%). Leasing demand for prime space was robust, with 71 long-term deals exchanged, representing £10m p.a. in headline rent, signed 29% ahead of previous passing rent.