Real estate investment trust Hammerson (HMSO.L) has revealed year-on-year pre-tax profits fell by 45.6 per cent in the first half of the year.

Despite reporting a rise in net rental income to £143.9 million in the six months to 30 June, pre-tax profit dropped to £192.8 million from £335.6 million during the prior-year period.

The fund attributed the growth in rental income to 'continued tenant demand for high quality assets in thriving locations' and its asset management initiatives.
 
The REIT also revealed group occupancy was in line with targets, with vacancy rates under 3 per cent, below the 12 per cent market average.

The fall in first half pre-tax profit reflected on £121.1 million increase in the property portfolio, less than half that reported in the same period last year.

David Atkins, chief executive of Hammerson, said, 'These results show continued momentum in our business, driven by high quality assets coupled with focused management initiatives.

'In addition we have enhanced the prospective returns from the portfolio through both targeted acquisitions and development activity, and our flexible financing structure will allow us to take advantage of further investment opportunities.'

He added, 'Despite a challenging retail backdrop in both our markets, we have seen little impact from the recent rise in UK retail administrations, and will benefit from positive indexation in France. We will capitalise on the upturn in the London office market through both existing assets and developments.'

 
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