Hammerson full-year results in tomorrow’s City focus

City eyes are set to focus in on Hammerson tomorrow morning, when the embattled shopping centre landlord releases a crucial set of profit results that come against a backdrop of activist pressure and industry challenges.

The listed property company, which owns flagship shopping centres such as The Bullring in Birmingham, is set to face scrutiny over its 2018 performance after 12 months of failed takeover talks and tough trading conditions.

Expectations of further possible sell-offs are also mounting after reports in the Sunday Times that US hedge fund Elliot Advisors is putting pressure on boss David Atkins to offload more property.

The results come after a difficult year for the blue-chip firm, which has seen its share price tumble 20 per cent after investors rejected both a proposed takeover bid for rival Intu and a takeover approach from France’s Klepierree.

Read more: Hammerson appoints Odeon chief Carol Welch as non-exec director

“Hammerson has been involved in a lot of corporate activity recently that hasn’t worked, which has made them more conspicuous. And if one looks at the position that Elliot has taken with other investments, they’re usually after quite radical structural change…there’s likely to be action here,” retail expert Richard Hyman told Morning Wire

According to Goodbody real estate analyst Colm Lauder, “a realistic write-down of capital values” and an “enhanced UK disposals programme” are both needed to renew investor confidence in Hammerson, which has also been threatened by a growing number of UK retailers collapsing into administration.

Hammerson’s results come less than a week after fellow shopping centre giant Intu suffered further losses to its falling share price when it revealed a £1.4bn full-year drop in the value of its assets, in a sign of the wider challenges facing landlords in the retail industry.

Read more: Intu shares plunge as it swallows £1.4bn loss in property value