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- Replace outdated stores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