Hammerson lifts profit guidance, takes full control of Bullring-Grand Central

(Sharecast News) - Retail and leisure-focused real estate group Hammerson has raised its earnings outlook as it unveiled the acquisition of the remaining 50% stake in the Bullring and Grand Central shopping centres in Birmingham for £319m. The deal for Bullring and Grand Central gives the company full control of a "super prime destination", which has delivered "standout operational and financial performance in recent years", with footfall up 3% at 33m visitors in 2024 and up a further 5% in the first half of 2025.

The company said it was suspending its share buyback as it intends to raise up to 10% of its existing issued share capital through an institutional placing to fund the acquisition, with the financed from existing cash resources.

"This is an exciting milestone for Hammerson. Our investment alongside key trusted brand partners has seen Bullring deliver a standout operational performance in recent years, cementing its reputation as a top five UK destination," said chief executive Rita-Rose Gagné.

The news came as Hammerson delivered its first-half results, in which like-for-like gross rental income rose 5% to £105m, or 11% including the impact of acquisitions.

The company, who saw an 11% uplift in the value of its portfolio to £2.96bn over the six months to 30 June, recorded a net profit of £79m compared with a loss of £517m the year before.

Underlying earnings were down 3% at £48m due to disposals and the phasing of redeployment, but still ahead of expectations, leading to a 5% increase in the interim dividend to 7.94p per share.

As a result of the strong first half, Hammerson lifted its guidance for GRI growth to 17% and for underlying earnings to £102m, up from earlier forecasts of 10% and £95m, respectively.

Shares were up 1.8% at 299.6p by 0859 BST.