Hammerson plc R.E.I.T. (H2V) Q2 2026 Earnings Report

The call conveyed a broadly positive operational and financial momentum: underlying leasing, occupancy gains, turnover rent growth and an upgraded FY2026 earnings guidance (GBP 132m, +27% y/y) are clear positives. Management also strengthened the balance sheet and maintained medium‑term targets (6%–8% EPS/DPS CAGR, TAR ~10%). Offsetting this are flat H1 valuations and a mildly negative capital return driven by market uncertainty (notably the Middle East), an asset‑level drag at Westquay, and an upcoming Eurobond maturity that requires refinancing. On balance, the operational and strategic positives outweigh the near‑term market and financing headwinds.

Hammerson upgraded FY‑2026 guidance after strong leasing and a few H1 one‑offs (rate rebate settlements of just over £2m): underlying earnings guidance was raised from a prior c.£120m to £125m, and with the c.£7m attributable contribution from the 50% Arndale acquisition the group now guides to c.£132m (up ~27% year‑on‑year); medium‑term targets remain a 6–8% CAGR for EPS and DPS and c.10% TAR over a five‑year horizon (rolling off the 2025 base), with like‑for‑like NRI growth assumed around 4–5% in 2027, H1 spreads c.9% above ERV, and balance‑sheet optionality of roughly £200m of additional capacity.