Hammerson has reported a £573.8 million pre-tax loss in the year to 31 December, compared to a £173.3 million loss over the same period in 2018.

The shopping centre owner’s overall rental income fell 11.2 per cent year-on-year to £308.5 million, while on an adjusted basis, full year profits declined 10.9 per cent to £214 million.

A statement explained that while occupancy levels remained high - with 97 per cent of units filled - like-for-like rental income in its UK sites dropped by 6.7 per cent due to a spate of retailer administrations and restructurings.

During 2019, Hammerson saw 33 of its retailer partners enter administrations or undergo a Company Voluntary Arrangement (CVA), affecting 94 units.

New leasing volumes also dipped, generating £11.2 million in income in 2019, compared to £14.4 million in the previous year.

Earnings were impacted by a disposals programme, which generated £542 million during the year. Last week, the business announced its largest disposal in a decade, selling nine retail parks for £455 million.

Hammerson said its focus would remain on reducing debt during the current year, amid an “uncertain” outlook for the sector.

Chief executive David Atkins commented: “Against a challenged retail and investment backdrop, we have exceeded our 2019 disposal target, exited the retail parks sector as we said we would and reduced debt by a third – this delivered nearly £1 billion of transactions in the process.

“In strengthening our balance sheet further, we will create a more resilient business and also generate significant liquidity which could, at the appropriate time, be deployed to create enhanced returns for shareholders.”

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