Shopping centre operator Hammerson has slashed its 2020 dividend by 46% after reporting a drop in annual net rental income due to the collapse into administration of a series of UK retail chains and outlets.
Hammerson owns a 50% stake in the Dundrum, Ilac and Pavillions shopping centres in Dublin, and a 40% stake in Kildare Village.
The company, which also owns the Brent Cross shopping centre in London, said net rental income fell 11.2% to £308.5m for the full year ended December 31.
"Tenant restructuring, in the form of company voluntary agreements and administrations, has been the largest single factor reducing income," Hammerson said.
The company said it expects to recommend a dividend of 14 pence for 2020.
Hammerson has been looking to reduce its net debt, which stood at £2.8 billion as of December 31, by offloading assets and refocusing on its city shopping centres and premium outlets division.
The company said last week it will exit its out-of-town retail locations by selling seven of them to private equity firm Orion for £400m.
Hammerson said it sold £542m worth of assets in 2019, ahead of its £500m target.
On its Irish operations, Hammerson said the underlying picture here remains positive, adding that it saw "robust" footfall figures last year.
In Dundrum, it reported strong progress with its repurposing strategy with luxury store Brown Thomas taking space in the House of Fraser unit.
Work is also taking place to reconfigure the former Hamleys building into a mixed-use offer anchored by a penthouse office, an eight-lane Stella Bowl bowling alley and new restaurant offer.
It also said that income increased at both the Ilac and Pavilions shopping centres, the latter by 8% associated with strong leasing including an improved restaurant offer.
Dunnes Stores reconfigured its store in the Ilac to introduce an upmarket foodhall, which opened in August, it added.
Hammerson's rival Intu this month said it was in talks with its largest shareholder John Whittaker's Peel Group and new investors to raise funds to shore up its balance sheet.
