Hammerson, the UK-based owner of city centre destinations with a secondary listing on the JSE, yesterday declared a 5% higher interim dividend of 0.756 pence per share on a payout ratio of 76%, following a strong year operationally and further moves on the third year of a turnaround trajectory.
Further good news for shareholders was the announcement that the board intended to increase the policy payout ratio from its current policy of 6070%, to 8085%, after the sale of the Value Retail assets. Plans were afoot to also simplify the share capital through a 1 for 10 share consolidation, and to increase distributable reserves by reducing the companys share premium account.
I am pleased to report weve had a strong first half. We are realising the benefits of our investments and with the agreed disposal of Value Retail, we have the capacity and capability to accelerate growth and value creation. Our leading city centre destinations are in high demand, said Hammerson chief executive Rita-Rose Gagn in a statement.
Adjusted earnings of 50 million (56m) reflected the impact of disposals and adjusted earnings per share came to 1p (1.1p). The loss of 517m mainly reflected the impairment of investment in Value Retail from the carrying value of 1.1bn. The pro forma loan-to-value ratio reflecting the disposal was low at 25%.
The company earlier this week announced the sale of its non-controlling and yield dilutive interest in Value Retail, which it said would ensure a clean exit from a complex structure at an attractive price, and also generate 600m in cash proceeds.
