Property firm Hammerson has reported a 9.2% drop in profit before tax to £329.4m as it experienced a drop in relation to property revaluation gains.
For the six months to June 30 the business’s revenue from its joint venture projects fell from £183m to £121.1m.
However stripping out valuation changes adjusted earnings per share increased 13.3% to 13.6p.
However its portfolio experienced 2.1% like-for-like growth in net rental income, which was up to £159.5m from £146.9m for the same period in 2014.
Sales across Hammerson’s UK shopping centres increased by 2% as footfall grew by 1.2%. The firm said its UK shopping centres’ estimated rental value rose by 3.3% on a rolling 12-month basis to the end of June.
During the six months Hammerson opened new restaurants at Silverburn shopping centre in Glasgow. It is also on track to open a centre in Beauvais in France, and retail parks in Merthyr Tydfil in Wales and Rugby this year.
In London the compulsory purchase order inquiry process for its joint venture with Westfield at Croydon has been completed. The compulsory purchase order process has been initiated at Brent Cross for the proposed extension and planning amendments have been submitted for The Goodsyard development in Bishopsgate.
Hammerson’s portfolio is valued at £7.9bn spanning 12 European countries and comprising investments in 22 shopping centres, 21 convenient retail parks and 15 premium outlet villages.
David Atkins, Hammerson’s chief executive, said: “The business has performed very well in the first half, underpinned by robust consumer confidence and an active asset management strategy resulting in sector-beating earnings growth of 13%. Our prime assets continue to attract retailer demand from some of the most sought after brands, lifting ERV growth across the portfolio. Looking ahead, the business is well positioned to benefit from continuing momentum across our key markets and to deliver attractive and sustainable returns for shareholders.”