Hammerson’s Retail Comeback: Growth, scale & strategy

• Prime retail is back, top destinations are outperforming weaker centres
• Hammerson grew income, value, and dividends through active management
• Strategy is simple: own the best assets, optimise them, and scale smartly

Who is Hammerson and what do they own?‍

Hammerson is a listed property company that owns and manages large, high-quality shopping centres across the UK, France, and Ireland.

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But they’re not just “shopping mall owners.” They focus on prime, experience-driven retail destinations, places where people don’t just shop, but spend time.

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Think major centres like:

• Bullring (Birmingham)
• Brent Cross (London)
• Dundrum (Dublin)
• Les Terrasses du Port (Marseille)

These are top-tier assets located in strong, high-income areas with heavy foot traffic and leading retail brands.

Their strategy is clear:

• Own fewer, better assets
• Focus on dominant centres in each city
• Turn retail into an experience (shopping + food + entertainment)

This positions them at the top end of the retail property market—where performance is strongest.

Performance: What the numbers say‍

Hammerson delivered a strong set of results for 2025, showing a clear recovery and growth phase.

Key highlights:

• Net rental income up 23% to £180 million
• Portfolio value up 33% to £3.5 billion
• Profit of £232 million (vs a loss the year before)
• Earnings up 5%, dividends up 6%

They also achieved:

• High occupancy (around 96%)
• Strong leasing demand from retailers
• Increased foot traffic and tenant sales

In simple terms:

• More tenants
• Paying higher rents
• In better-performing centres

Why are they performing so well?

1. Focus on “Best-in-Class” Assets
There’s a growing gap in retail:

• Top centres are thriving
• Weak centres are dying

Hammerson owns assets ranked among the top 1% of retail locations in their markets. This is where the money flows.

2. Active Asset Management
They actively: 

• Upgrade and reposition space
• Replace outdated stores
• Add food, leisure, and entertainment

This drives both experience and income.

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As CEO Rob Wilkinson put it: “The success of best-in-class retail destinations is evident in strong leasing demand, high occupancy, and growing footfall and sales, driving sustainable rental growth.”

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3. Strong Leasing Demand
Retailers are becoming more selective:

• Fewer stores
• Better locations

Hammerson benefits directly:

• Record leasing activity
• Rents signed above expectations

4. Smart growth through acquisitions
They’ve invested over £750 million into core assets, increasing ownership and control

• More control = more income plus more upside

5. Technology driving better decisions
Using AI and data, Hammerson tracks: 

• Customer movement
• Spending patterns
• Tenant performance

This turns retail into a precision business.

Strategy going forward‍

Hammerson’s approach is disciplined:

1. Grow income from existing assets

2. Reposition and upgrade space

3. Expand selectively

4. Maintain financial discipline

They are targeting:

• Around 20% rental income growth in 2026
• Continued earnings growth

What this means for investors

The lesson is blunt: Retail isn’t dead, bad retail is.

The winners:

• Own prime assets
• Adapt quickly
• Execute consistently

From recovery to growth‍

Hammerson has moved from recovery to growth and it’s doing it with clarity and discipline. By focusing on top-tier retail destinations, actively managing assets, and scaling intelligently, the business is: 

• Growing income
• Increasing asset value
• Strengthening returns

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The takeaway: “The future of retail property belongs to the best, not the rest.”

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