What: Hammerson reports 4.2% increase in UK mall values and record leasing activity in 2024, demonstrating the resilience of prime retail properties despite broader market challenges and strategic portfolio adjustments.

Why it is important: This performance signals a significant shift in retail property markets, where quality locations are seeing renewed demand and value appreciation, challenging previous assumptions about the decline of physical retail spaces.

Hammerson's 2024 performance reflects a robust recovery in the UK retail property sector, with mall values increasing by 4.2% and like-for-like gross rental income rising 1.6%. The company achieved record leasing activity, securing GBP 41 million in rent across 262 deals covering 1 million square feet of space. Since 2020, new leases have commanded rates 32% higher than pre-pandemic levels, demonstrating strong demand for prime retail locations. Despite this positive trajectory, the company reported a GBP 526 million loss, primarily due to a GBP 497 million impairment on its Value Retail stake sale. Under CEO Rita-Rose Gagne's leadership since 2020, Hammerson has undergone significant transformation, generating GBP 1.5 billion through strategic disposals while reducing debt and focusing on dominant city center properties. The company's loan-to-value ratio has improved from 34% to 30%, reflecting stronger financial positioning.

IADS Notes: Hammerson's results align with broader retail property trends observed throughout 2024-2025. The recovery mirrors the US market's historically low shopping center vacancy rates reported in December 2024, while the shift away from rental concessions in January 2024 reflects strengthening landlord positions. This performance parallels successful transformations seen in other prime locations, such as Oxford Street's revival to 2.2% vacancy rates in January 2025, demonstrating how strategic positioning and quality assets can drive retail property value in key urban locations.

Hammerson sees UK mall rents, values rise as retail gloom lifts