Hammerson profits tumble as retail sites take £124m valuation hit

Profits at shopping centre owner Hammerson (Frankfurt: 876140 - news) have fallen by more than half after £124m was wiped off the value of its UK retail sites.

Shopping centres were worth £6m less and retail parks were revised down by £118m, with £39m of the overall markdown blamed on stamp duty changes.

Hammerson also pointed the finger for the revaluation at taxes and weak trading affecting one part of its French operations though more widely it enjoyed an improved performance in the country.

The group, whose properties includes London's Brent Cross and Birmingham's Bullring, had previously warned of uncertainty over the valuation of its holdings in the wake of the Brexit vote.

Pre (Shanghai: 600048.SS - news) -tax profits for 2016 fell 56% to £321m, although adjusted profit rose 9% to £231m when revaluations were stripped out. Shares (Berlin: DI6.BE - news) rose 4.3%.

Across the group, revaluations increased the value of the group's holdings, though by less than the increase seen in the previous year.

During 2016, Hammerson beefed up its portfolio with retail space in Dublin, Leeds and Birmingham.

Chief (Taiwan OTC: 3345.TWO - news) executive David Hammerson said: "Looking ahead, despite some UK retail headwinds and geopolitical uncertainty, I am confident that we have a resilient and adaptable business."

Retailers have suffered a tough period, with official figures showing another fall in sales in January.

Consumers are expected to face a squeeze as inflation rises thanks to the collapse in the value of the pound since the Brexit vote.