Hammerson Stock

Thank you for joining us for Hammerson's 2026 Half Year Results. I'm Rob Wilkinson, CEO, and I'm joined by Himanshu Raja, our Chief Financial Officer. I'll begin with an overview of the half year and our progress against our 3 strategic priorities. Himanshu will then take you through the financials, and I'll come back briefly on the outlook before we take your questions.

In February, I set out clear priorities for Hammerson, and we've made good progress on all fronts in the first half. First, we've driven operational outperformance across our destinations in occupancy, footfall and sales. Second, we've continued to maximize and crystallize the value of our strategic land. And third, we're increasing our scale through disciplined and accretive acquisitions, including, as announced this morning, a 50% interest in Manchester Arndale. And on the back of all that, we're raising our FY '26 earnings guidance to GBP 132 million, which will be up 27% year-on-year, and we're setting out new medium-term guidance.

The headline numbers reflect that momentum. Net rental income was up 40% to GBP 112 million. EPRA earnings were up 33% to GBP 64 million, with earnings per share up 22% to 12.1p. We're declaring an interim dividend of 9.67p, up 22% year-on-year and representing an 80% payout of our EPRA earnings. The portfolio is valued at GBP 3.6 billion with NTA per share unchanged at GBP 3.94 and a total accounting return for the half of 2%, a robust and high-quality performance, which Himanshu will cover in more detail shortly.

Let me take each of our 3 priorities in turn and show you what we have delivered, starting with how we drive outperformance across our destinations. Our first priority is to keep doing what we do best, targeted leasing and partnerships with the best brands to create the most compelling mix for visitors and occupiers. In the first half, we signed GBP 18.5 million of headline rent across 234 leases, 52% ahead of previous passing rent or 17%, excluding units with no previous rent and 9% ahead of ERV. Our destinations remain the entry point of choice for the best names, Zara Home at Dundrum, a first for Ireland, Garage and Harli + Harpa at Bullring, each a U.K. portfolio first for us.

Our resulting occupancy is now at the highest level we've seen for 7 years. We have had a strong start to the second half with a further GBP 2.6 million exchanged, and we have a robust pipeline of over GBP 21 million (sic) [ GBP 20 million ] into the second half. This is the flywheel. Leases drive footfall, then sales, then occupancy and ultimately, rents. Our group footfall was up 3% with the strongest growth where we've recently repositioned the assets. Cabot Circus was up 13% after the recent openings of M&S, Sephora, Odeon Luxe and UNIQLO. Like-for-like sales were up 2% with an exceptional performance from France, up 4%.

Our second priority is maximizing value from our strategic land. Year-to-date, including the partial sale of Dublin Central after period end, we've realized GBP 75 million of noncore disposals at a substantial premium to book value. And where we've recycled capital into densifying our estate like the Ironworks residential scheme at Dundrum, we've seen real success with the scheme now 80% leased. On the remaining GBP 290 million (sic) [ GBP 291 million ] of book value, we remain disciplined, drawing a clear line between integral sites like The Drum at Grand Central, which is now in design and procurement and where we're more likely to commit capital and develop ourselves and stand-alone sites where we advance planning to create value and then recycle capital.

Our third priority is increasing our scale. We have a platform that is efficient and scalable, so additional income comes with minimal incremental cost, driving operating leverage. So as we look to scale, we will be disciplined in our approach. Our focus will remain on landmark retail-led destinations in our core markets, the U.K., Ireland and France and selectively wider European markets where the fundamentals, transparency and liquidity are right.

Our criteria are also clear. We look for strong growing catchments, polarization to the very best and recognize that our occupiers focus on unified commerce combining online and physical. The quality of catchment ultimately matters more than scale alone. Above all, we look for assets where we can bring our integrated platform to bear, repositioning, asset management, brand mix optimization and developing integral plots to unlock value that others can't. The ideal opportunity is a strong destination in a strong catchment with clear room to add value and where our expertise makes the difference. That is precisely what Manchester Arndale exemplifies.

Manchester Arndale is our first external acquisition in over a decade and is entirely consistent with our strategy, a high-quality scale asset, over 230 occupiers, 96% let and serving a catchment of 6.4 million, the largest outside London and rated A by Green Street. It sits at the heart of a thriving city region with 45 million visitors a year, now the highest footfall in our portfolio and a Greater Manchester economy worth over GBP 100 billion, and it offers compelling upside through further asset management and repositioning.

Working alongside our new partners, we see 4 potential levers to drive value. First, to modernize the public realm, new entrances, sharper way finding, a refreshed food court. Second, to further elevate the brand mix, reconfiguring oversized legacy units into the smaller in-pitch space that leading brands want. Third, we will continue to attract new global brands with a premium lineup curated for New Cathedral Street. And lastly, driving rents and capturing reversion by extending the prime Zone A pitch and regearing key renewals. It's exactly the work our platform was built for.

And the terms of the deal are attractive, a headline price of GBP 218 million for our 50% interest at a topped-up net initial yield of 7.8%, adding around GBP 17 million of topped-up net rental income. It's funded by the placing announced separately this morning, and it's immediately earnings accretive for minimal NTA dilution.

So to the outlook. On the back of this strong half and the addition of Arndale, we're raising FY '26 EPRA earnings guidance to GBP 132 million, year-on-year growth of 27%. That's GBP 125 million from the underlying business, up from the previous guidance of GBP 120 million, plus a GBP 7 million in-year contribution from Arndale. We expect total NRI growth of 28% and like-for-like NRI growth of 4% to 5%. And we're issuing new medium-term guidance off our FY '25 base of EPRA EPS growth of 6% to 8% a year, dividend growth of 6% to 8% as well and a total accounting return of around 10%.

Before I hand over to Himanshu, let me first thank him for his contribution to Hammerson over the last 5 years. He has been instrumental in the turnaround of the company and the platform for growth that we have today. Today is his last set of results as an executive as he moves to a portfolio career.

Thank you, Rob, and good morning, everyone. As Rob said, this has been a strong first half underpinned by a robust balance sheet. Let me take you through the numbers. Starting with the summary. Net rental income was up 40% to GBP 112 million, reflecting strong like-for-like growth of 5% and the benefit of last year's acquisitions. EPRA earnings rose 33% to GBP 64 million, and earnings per share were up 22% to 12.1p. The interim dividend is also up 22% at 9.67p per share. The IFRS profit was GBP 56 million. Our EPRA cost ratio fell almost 10 percentage points to 28.4%, clear evidence of the operating leverage in our platform, but I'll come back to the phasing of that shortly.

On the balance sheet, the portfolio is valued at GBP 3.6 billion, up 1% with NTA per share unchanged at GBP 3.94. Net debt to EBITDA improved from 9.5x to 8.1x and LTV was unchanged at 39%. This slide bridges the growth in EPRA earnings from GBP 48 million in H1 2025 to GBP 64 million in this half, where you see the step-up in like-for-like income growth and the benefit of the acquisitions we completed in 2025. The other NRI reflects the net effect of the progress on the development portfolio as we took vacant possession, disposals and some FX.

The increase in the admin costs reflects the normal inflationary increase, some management transition costs and the reduced fees following our acquisition of JV partner stakes. And as expected, the growth in NRI is in part offset by higher net finance costs. This simply reflects lower interest receivable of GBP 12 million as we recycle cash on balance sheet into JV acquisitions, while interest payable was GBP 2 million higher, principally reflecting our bond issue in early June. The resulting GBP 64 million earnings is up 33%, high-quality earnings growth.

Now to the usual NTA walk. NTA per share was unchanged over the half at GBP 3.94 with EPRA earnings and the dividend broadly offsetting one another and underlying valuations broadly flat. The net revaluation deficit of 2p reflects timing differences between the recognition of ERV and capital expenditure, while yields were flat. And after the final 2025 dividend, our total accounting return was 2.3% for the first half.

On to net debt and credit metrics. Net debt was GBP 1.4 billion, LTV 39% and net debt to EBITDA 8.1x with liquidity of GBP 1.1 billion. During the half, we refinanced our combined GBP 613 million of revolving credit facilities on unchanged terms and extended the maturity to 2029. We were also in the bond market issuing a GBP 350 million bond maturing in 2031. The issuance was 5x covered at peak. Maintaining an investment-grade credit profile remains a key tenet of our strategy and continues to inform our capital allocation decisions. The funding of the Oracle, Ilac and now Arndale demonstrates this discipline, balance sheet capacity where appropriate, capital recycling where possible and equity where required to support growth while maintaining financial flexibility.

Pro forma for the partial sale of Dublin Central in July and today's acquisition and associated placing, LTV reduces to around 36% and net debt to EBITDA to around 7x. We will continue to be disciplined in our capital allocation, investing only where we see the opportunity to generate returns above our cost of capital, which brings me to guidance.

Rob has given you the headlines. We now expect FY '26 EPRA earnings of around GBP 132 million, which represents a 27% increase year-on-year. That comprises an uplift in the underlying business from GBP 120 million that we guided at the full year results to now around GBP 125 million, plus GBP 7 million in-year contribution from the acquisition of Arndale.

Let me give you the building blocks. We expect total NRI growth of around 28%, including like-for-like growth of 4% to 5%. We continue to expect a full year gross to net of around 80%. On costs, we still guide to a reduction in the EPRA cost ratio of 300 to 400 basis points in each of 2026 and 2027. The first half ratio of 28.4% benefited from the resolution of some long-standing rates appeals that will not repeat in the second half. Nonetheless, we are well on track. And with the operating leverage generated by Arndale, we expect a full year ratio below 30%. Net finance costs are expected to be around GBP 60 million. On capital expenditure, as 100% owners of 7 of our 10 flagship destinations, we are able to plan and execute with spend across the different asset management opportunities in the portfolio with speed.

Our full year guidance, therefore, remains unchanged, GBP 30 million to GBP 40 million on asset enhancements and leasing, around GBP 30 million to complete our repositioning and a light touch spend of GBP 10 million to GBP 15 million on development. And finally, our dividend policy is unchanged, a payout of 80% to 85% of full year EPRA earnings.

Before I hand back to Rob, allow me a brief personal word. This is my last set of results and my final presentation as an Executive Director of Hammerson. It's been a genuine privilege. When I look at the balance sheet we've built, the platform we have created and the growth that lies ahead, I could not be more confident in the company's prospects, which is why I am participating in the placing today and will remain a shareholder. With that, back to Rob.

Thank you, Himanshu. So let me close where I began. My priorities remain unchanged, continue to develop flagship outperformance, maximize the value of our strategic land and further increase our scale. Our confidence in delivering them is reflected in today's upgraded guidance, and it points to a clear path to attractive sustainable shareholder returns, EPRA EPS growth of 6% to 8% a year, dividend growth of 6% to 8% as well and a total accounting return of around 10%. We have real momentum, a platform built to scale and the discipline to grow well. With that, thank you, and we look forward to taking your questions at the live session this morning.

Good morning. Thank you for attending today's Hammerson Half Year Results 2026 Q&A Call with Rob Wilkinson and Himanshu Raja. My name is Sherry, and I will be your moderator today. [Operator Instructions] I would now like to pass the conference over to them. Please go ahead.

Good morning, everyone. Rob Wilkinson here. Thank you for joining. Obviously, I'm very conscious it is very early in the day. We've got a lot of reporting going on, so we'll keep this nice and short as obviously, we want to focus on your Q&A. So without further ado, please do come forward if you have questions. Happy to answer them. Obviously, Himanshu with me as well.

[Operator Instructions] We will now take our first question from Zachary Gauge from UBS.

Just on Arndale. Obviously, this is an asset you had a look at last year, decided to not go ahead with it. I think some of the concerns at the time were the timing of reversion, the age of the asset, some of the CapEx that might have been required. Could you just sort of touch on what's changed in your thinking between then and now? And also on the ownership structure and management structure, how you see that sort of playing out? If I understand correctly, it wouldn't directly come with 100% control of the management.

Thank you for the question. You're right. The asset was put on the market or the interest we're acquiring was put on the market last summer at an asking price of GBP 237 million, and we participated in that process with others and got through to the second round. And in the second round, there was a timeline set out for the physical due diligence on the asset, which is something that we were not prepared to work towards. And I think the same was felt by others. So in effect, that process was terminated and the sale did not go forward.

We, on our side, though, have targeted this asset for some time. And so we stayed very much in contact with the vendors, and we were, therefore, able to effectively agree a deal offmarket to acquire the interest, which is the purpose of obviously today's acquisition. So it was nothing to do with the asset at all. It was simply that the process was not one that we were comfortable participating in. And I think the others were feeling the same way. So we're very excited about now being able to do so, as I said, on a bilateral basis.

In terms of the management, yes, it's a sort of joint ownership and joint management with M&G. And obviously, they're a long-term investor like ourselves. We have had some discussions with them already around the business plan and strategy, and we're very much aligned with that. So we will be looking to work with them as our partners to continue to deliver value on the center and very much, I think, aligned in that respect. And so very comfortable with them as our partners alongside us.

Okay. Great. And the yield that reported yield, does that include any assumptions on sort of CapEx backlog or sort of maintenance CapEx that might be required in the next few years?

Yes. There's no immediate urgent CapEx required. The fabric of the building is in good condition. The CapEx that we're setting out in the business plan is predominantly accretive, so linked to leasing and improving the tenant mix within the scheme. There's a little bit of more defensive CapEx, but that's really kind of public realm stuff.

So the entrances and the streetscape, we'd like to look to improve the wayfinding. And then the food court, I think at the upper end of the mall definitely needs some investment. So it's kind of ordinary course of business CapEx that we would have across our portfolio as a whole.

The kind of key assumptions behind the medium-term earnings and dividend growth targets you're setting and kind of what kind of like-for-like net rental income, for example, you're assuming in terms of the growth rates there?

James, Himanshu here. Thanks for your question. Yes, the upgrade guidance today reflects, first of all, the benefit of a small number of kind of one-offs in the first half, the settlement of long-standing rate rebates. That's just over a couple of million. But fundamentally, the upgrade is driven by strong underlying performance in leasing and that driving increased occupancy into the second half. As we do that, of course, void costs become service charge income. And we also see the benefit of all of the flurry of openings that we've had over the course of the year driving through to share of turnover rent.

So that is why it's not GBP 64 million first half times 2, but nonetheless an upgrade from the previously guided GBP 120 million of earnings up to GBP 125 million. And then when you add the GBP 7 million on for today's acquisition of Arndale, then GBP 132 million guidance, up 27% year-on-year.

Second part of your question was on medium-term guidance. The medium-term guidance, the first thing to highlight is it's now off the 2025 base. Our previous guidance was at the time of the Value Retail disposal. And since then, of course, we've consolidated our JV. So off that higher base, we're still maintaining that 6% to 8%, both EPS and DPS CAGR and the TAR of around 10% over the medium term, which we consider to be 5 years.

The drivers of that, again, it's the fundamental strength of the portfolio. We see the opportunity for a similar 4% to 5% growth in 2027 on a like-for-like basis. And you'll recall, we have a number of repositions coming on stream in '27, like further repositioning at the Oracle, Quakers, Exchange at Cabot Circus and also the opening of our Cergy extension. They will all be drivers. And beyond that '28 and beyond, we see inflation, inflation plus growth coming through by continuing to kind of push rental tension. All of that kind of growth then translates into the reduction in our EPRA cost ratio as we get fundamental operational gearing.

Take Arndale as an example this morning, we will not be adding any incremental resource as we onboard the co-management of Arndale this morning. So that operational gearing then drives through to the growth in earnings and then dividends to follow.

Next, we will take a question from Tom Berry from Green Street.

Just a quick one on the U.K. like-for-like NRI figure. I wondered if you could give a bit more color on that split across assets. I know you said Westquay has dragged, but it's a fairly significant decline. So yes, just a bit more color on the sort of asset breakdown would be great.

Two parts to that question. Westquay reflects that this time last year, we had a surrender, which we saw the benefit of that doesn't naturally repeat and that affects the year-on-year comparison. But actually, overall like-for-like in the U.K., the strength was driven again by the repositioning. So we saw really strong performance at the Bullring, strong performance at Cabot and strong performance at Oracle. Recognize Tom, that the various U.K. assets are at different stages of that repositioning journey. We're really encouraged now 4 years on, for example, from the reposition of Bullring that we're still continuing to drive rental tension there, in particular, the positioning of one of the kind of East upper malls there, which was a quiet end of the scheme. And again, the repositioning there with occupiers like New Balance coming in have seen that drive kind of real uplift.

So even 4 years into a repositioning at somewhere like Bullring, we're still able to drive that kind of rental growth. So across the board, depending on just where the asset is in its repositioning journey.

Next, we will take a question from Veronique Meertens from Kempen.

Congratulations on the transaction. Maybe briefly getting back to that medium-term target because just so I understand it clearly because at the full year, I think you actually upped and I appreciate the base is different, although '25 was not per se the year with the highest growth yet, that's more to come in the coming years. So is maybe also the forward-looking period extended? Or why is now 6% to 8% instead of 8% to 10%?

It simply reflects the roll forward of another year and then off the higher base Veronique. Remember, when we guided at the time of the Value Retail, we gave an underlying baseline of around GBP 85 million of underlying earnings, excluding the impact of Value Retail. So it's a simple roll forward of the year. And then we always look to 5 years on our medium-term guidance.

Okay. And then perhaps on the balance sheet through this acquisition, you over-equitize, so you reduce your LTV. Is that to create more firepower for you? Or is it also to maybe take a more conservative stance on the balance sheet at the moment and for a longer period to reduce your leverage metrics?

It's Rob here. It's a little bit of both in reality, Veronique, because it clearly does bring the credit metrics down. That said, we've been very clear, Himanshu and I have been very comfortable where they were previously. That's not the concern. This just gives us the ability to bring them down, but it also gives us some optionality on funding going forward. If a transaction were to become available and the execution required quick sort of timing, then it gives us some flexibility to acquire further, gives us around GBP 200 million or so of additional capacity to keep us within, again, credit metrics would be very comfortable. So it's a little bit of both in a way.

Next question is from Pranava Boyidapu from Barclays.

Firstly, obviously, the results are pretty good and the income growth has been pretty strong. But the capital return is still mildly negative. Is that just a factor of yield? Or is there anything else going on there?

Sure. It's Rob again here. Thank you for the question. Yes, valuations at half year were flat, and I think reflective of 2 things really, obviously, the situation in the Middle East, which I think has created an element of uncertainty until perhaps more recently, which I'll come back to. So the sort of yields were kept flat to the half year. And at the beginning of the year, I anticipated there might be some compression, but then I think the Middle East has changed that perspective.

We don't see decompression, but they have flatlined the yields to the first half. That said, I think 2 things. One, I just mentioned that we have seen a renewed level of activity within our market in the last 6 to 8 weeks. And it's my anticipation that, that could lead to some yield compression in the second half of this year. So I think we could see some uplift coming through. And the other aspect is ERVs where we continue, as I've mentioned a bit earlier, in terms of our spreads to see significant spread above ERV at 9% to this first half. And so we expect that to kind of flow through into the valuations as well in due course. So yes, flat to half year, but anticipation of some uplift in the second half.

And my second question is regarding your debt maturity profile. Obviously, you have the Eurobond coming due next year. And I believe you have sort of prefunded it earlier as well. But obviously, if you have opportunities coming through, you would -- cash is fungible effectively. Do you have any plans to maybe come to market in either sterling or in euros in the near future?

Thanks for your question. The Eurobond matures next June. As you've rightly identified, we've prefunded part of that. So the remaining needs to be funded, and we'll be in the market at the appropriate time. You'll note that the kind of June issuance we got away at 3.875%, had we been a month earlier or a month later, that probably would have begun with a 4%. As you know, we have an EMTN program in place, which allows us to respond to the market with agility. So we'll just try and pick the right timing for that.

There are no questions waiting at this time. I will pass the conference back over to Rob for any closing remarks.

Thank you all again for attending. Again, we're delighted to present the strong results we have and of course, the acquisition of 50% of Arndale and the equity raising associated with that. So again, thank you for all your support and look forward to continuing to work together. Thank you.

Thank you.

Thank you so much. That concludes the...

Thank you for joining us for Hammerson's 2026 Half Year Results. I'm Rob Wilkinson, CEO, and I'm joined by Himanshu Raja, our Chief Financial Officer. I'll begin with an overview of the half year and our progress against our 3 strategic priorities. Himanshu will then take you through the financials, and I'll come back briefly on the outlook before we take your questions.

In February, I set out clear priorities for Hammerson, and we've made good progress on all fronts in the first half. First, we've driven operational outperformance across our destinations in occupancy, footfall and sales. Second, we've continued to maximize and crystallize the value of our strategic land. And third, we're increasing our scale through disciplined and accretive acquisitions, including, as announced this morning, a 50% interest in Manchester Arndale. And on the back of all that, we're raising our FY '26 earnings guidance to GBP 132 million, which will be up 27% year-on-year, and we are setting out new medium-term guidance. The headline numbers reflect that momentum.

Net rental income was up 40% to GBP 112 million. EPRA earnings were up 33% to GBP 64 million, with earnings per share up 22% to 12.1p. We're declaring an interim dividend of 9.67p, up 22% year-on-year and representing an 80% payout of our EPRA earnings. The portfolio is valued at GBP 3.6 billion with NTA per share unchanged at GBP 3.94 and a total accounting return for the half of 2%, a robust and high-quality performance, which Himanshu will cover in more detail shortly.

Let me take each of our 3 priorities in turn and show you what we have delivered, starting with how we drive outperformance across our destinations. Our first priority is to keep doing what we do best, targeted leasing and partnerships with the best brands to create the most compelling mix for visitors and occupiers.

In the first half, we signed GBP 18.5 million of headline rent across 234 leases, 52% ahead of previous passing rent or 17%, excluding units with no previous rent and 9% ahead of ERV. Our destinations remain the entry point of choice for the best names, ZARAHOME at Dundrum, a first for Ireland, Garage in HARLI and HARPA at Bullring, each a U.K. portfolio first for us.

Our resulting occupancy is now at the highest level we've seen for 7 years. We have had a strong start to the second half with a further GBP 2.6 million exchanged, and we have a robust pipeline of over GBP 21 million into the second half. This is the flywheel. Leases drive footfall, then sales, then occupancy and ultimately, rents. Our group footfall was up 3% with the strongest growth where we've recently repositioned the assets. Cabot Circus was up 13% after the recent openings of M&S, Sephora, Odeon Luxe and Uniqlo. Like-for-like sales were up 2% with an exceptional performance from France, up 4%.

Our second priority is maximizing value from our strategic land. Year-to-date, including the partial sale of Dublin Central after period end, we've realized GBP 75 million of noncore disposals at a substantial premium to book value. And where we've recycled capital into densifying our estate like The Ironworks residential scheme at Dundrum, we've seen real success with the scheme now 80% leased.

On the remaining GBP 290 million of book value, we remain disciplined, drawing a clear line between integral sites like The Drum at Grand Central, which is now in design and procurement and where we're more likely to commit capital and develop ourselves and stand-alone sites where we advance planning to create value and then recycle capital.

Our third priority is increasing our scale. We have a platform that is efficient and scalable, so additional income comes with minimal incremental cost, driving operating leverage. So as we look to scale, we will be disciplined in our approach. Our focus will remain on landmark retail-led destinations in our core markets, the U.K., Ireland and France and selectively wider European markets where the fundamentals, transparency and liquidity are right.

Our criteria are also clear. We look for strong growing catchments, polarization to the very best and recognize that our occupiers focus on unified commerce combining online and physical. The quality of catchment ultimately matters more than scale alone.

Above all, we look for assets where we can bring our integrated platform to bear, repositioning, asset management, brand mix optimization and developing integral plots to unlock value that others can't. The ideal opportunity is a strong destination in a strong catchment with clear room to add value and where our expertise makes the difference. That is precisely what Manchester Arndale exemplifies.

Manchester Arndale is our first external acquisition in over a decade and is entirely consistent with our strategy, a high-quality scale asset, over 230 occupiers, 96% let and serving a catchment of 6.4 million, the largest outside London and rated A by Green Street. It sits at the heart of a thriving city region with 45 million visitors a year, now the highest footfall in our portfolio and a greater Manchester economy worth over GBP 100 billion, and it offers compelling upside through further asset management and repositioning.

Working alongside our new partners, we see 4 potential levers to drive value. First, to modernize the public realm, new entrances, sharper way finding, a refreshed food court. Second, to further elevate the brand mix, reconfiguring oversized legacy units into the smaller in-pitch space that leading brands want. Third, we will continue to attract new global brands with a premium lineup curated for new Cathedral Street. And lastly, driving rents and capturing reversion by extending the prime Zone A pitch and regearing key renewals. It's exactly the work our platform was built for.

And the terms of the deal are attractive, a headline price of GBP 218 million for our 50% interest at a topped-up net initial yield of 7.8%, adding around GBP 17 million of topped-up net rental income. It's funded by the placing announced separately this morning, and it's immediately earnings accretive for minimal NTA dilution.

And so to the outlook. On the back of this strong half and the addition of Arndale, we're raising FY '26 EPRA earnings guidance to GBP 132 million, year-on-year growth of 27%. That's GBP 125 million from the underlying business, up from the previous guidance of GBP 120 million, plus a GBP 7 million in-year contribution from Arndale. We expect total NRI growth of 28% and like-for-like NRI growth of 4% to 5%. And we're issuing new medium-term guidance of our FY '25 base of EPRA EPS growth of 6% to 8% a year, dividend growth of 6% to 8% as well and a total accounting return of around 10%.

Before I hand over to Himanshu, let me first thank him for his contribution to Hammerson over the last 5 years. He has been instrumental in the turnaround of the company and the platform for growth that we have today. Today is his last set of results as an executive as he moves to a portfolio career.

Thank you, Rob, and good morning, everyone. As Rob said, this has been a strong first half underpinned by a robust balance sheet. Let me take you through the numbers.

Starting with the summary. Net rental income was up 40% to GBP 112 million, reflecting strong like-for-like growth of 5% and the benefit of last year's acquisitions. EPRA earnings rose 33% to GBP 64 million, and earnings per share were up 22% to 12.1p. The interim dividend is also up 22% at 9.67p per share. The IFRS profit was GBP 56 million.

Our EPRA cost ratio fell almost 10 percentage points to 28.4%, clear evidence of the operating leverage in our platform, but I'll come back to the phasing of that shortly. On the balance sheet, the portfolio is valued at GBP 3.6 billion, up 1% with NTA per share unchanged at GBP 3.94. Net debt to EBITDA improved from 9.5x to 8.1x and LTV was unchanged at 39%. This slide bridges the growth in EPRA earnings from GBP 48 million in H1 2025 to GBP 64 million in this half, where you see the step-up in like-for-like income growth and the benefit of the acquisitions we completed in 2025.

The other NRI reflects the net effect of the progress on the development portfolio as we took vacant possession, disposals and some FX. The increase in the admin costs reflects the normal inflationary increase, some management transition costs and the reduced fees following our acquisition of JV partner stakes.

And as expected, the growth in NRI is in part offset by higher net finance costs. This simply reflects lower interest receivable of GBP 12 million as we recycle cash on balance sheet into JV acquisitions, while interest payable was GBP 2 million higher, principally reflecting our bond issue in early June. The resulting GBP 64 million earnings is up 33%, high-quality earnings growth.

Now to the usual NTA walk. NTA per share was unchanged over the half at GBP 3.94 with EPRA earnings and the dividend broadly offsetting one another and underlying valuations broadly flat. The net revaluation deficit of 2p reflects timing differences between the recognition of ERV and capital expenditure, while yields were flat. And after the final 2025 dividend, our total accounting return was 2.3% for the first half.

On to net debt and credit metrics. Net debt was GBP 1.4 billion, LTV 39% and net debt to EBITDA 8.1x with liquidity of GBP 1.1 billion. During the half, we refinanced our combined GBP 613 million of revolving credit facilities on unchanged terms and extended the maturity to 2029.

We were also in the bond markets, issuing a EUR 350 million bond maturing in 2031. The issuance was 5x covered at peak. Maintaining an investment-grade credit profile remains a key tenet of our strategy and continues to inform our capital allocation decisions. The funding of the Oracle, Ilac and now Arndale demonstrates this discipline, balance sheet capacity where appropriate, capital recycling where possible and equity where required to support growth while maintaining financial flexibility.

Pro forma for the partial sale of Dublin Central in July and today's acquisition and associated placing, LTV reduces to around 36% and net debt to EBITDA to around 7x. We will continue to be disciplined in our capital allocation, investing only where we see the opportunity to generate returns above our cost of capital, which brings me to guidance.

Rob has given you the headlines. We now expect FY '26 EPRA earnings of around GBP 132 million, which represents a 27% increase year-on-year. That comprises an uplift in the underlying business from GBP 120 million that we guided at the full year results to now around GBP 125 million, plus GBP 7 million in-year contribution from the acquisition of Arndale.

Let me give you the building blocks. We expect total NRI growth of around 28%, including like-for-like growth of 4% to 5%. We continue to expect a full year gross to net of around 80%. On costs, we still guide to a reduction in the EPRA cost ratio of 300 to 400 basis points in each of 2026 and 2027. The first half ratio of 28.4% benefited from the resolution of some long-standing rates appeals that will not repeat in the second half. Nonetheless, we are well on track. And with the operating leverage generated by Arndale, we expect a full year ratio below 30%.

Net finance costs are expected to be around GBP 60 million. On capital expenditure, as 100% owners of 7 of our 10 flagship destinations, we are able to plan and execute with spend across the different asset management opportunities in the portfolio with speed. Our full year guidance, therefore, remains unchanged, GBP 30 million to GBP 40 million on asset enhancements and leasing, around GBP 30 million to complete our repositioning and a light touch spend of GBP 10 million to GBP 15 million on development. And finally, our dividend policy is unchanged, a payout of 80% to 85% of full year EPRA earnings.

Before I hand back to Rob, allow me a brief personal word. This is my last set of results and my final presentation as an Executive Director of Hammerson. It's been a genuine privilege. When I look at the balance sheet we've built, the platform we have created and the growth that lies ahead, I could not be more confident in the company's prospects, which is why I am participating in the placing today and will remain a shareholder.

With that, back to Rob.

Thank you, Himanshu. So let me close where I began. My priorities remain unchanged, continue to develop flagship outperformance, maximize the value of our strategic land and further increase our scale. Our confidence in delivering them is reflected in today's upgraded guidance, and it points to a clear path to attractive, sustainable shareholder returns, EPRA EPS growth of 6% to 8% a year, dividend growth of 6% to 8% as well and a total accounting return of around 10% -- we have real momentum, a platform built to scale and the discipline to grow well.

With that, thank you, and we look forward to taking your questions at the live session this morning.

Good morning, everyone. I think we'll start. Welcome, everyone, to Hammerson's 2025 Full Year Results Presentation. I've met a number of you already over the last few weeks, but for those I haven't met, I'm Rob Wilkinson. I joined Hammerson as CEO in January of this year. I'm with Himanshu Raja, our CFO, of course, who's joining me for the presentation this morning.

In terms of the actual presentation itself, I'd like to start with sharing with you a couple of my first impressions of the company since I joined, obviously, looking back at the achievements and results of 2025, our outlook for '26 and beyond, I'll pass then to Himanshu to comment on the financials in a bit more detail, before some closing remarks, and then obviously be delighted to take any questions at the end of the session.

So if I start, since October of last year, I made it my priority to visit all 10 of our flagship destination assets to meet with the teams. And one thing that's very clear is that the extent of turnaround that's been achieved over the last 5 years is nothing short of remarkable. And credit should go to Rita-Rose and the team for what they've done over that period. It also clearly positions Hammerson now at a situation where we can now leverage our platform and assets as we go forward.

But 3 things have really stood out for me about the company since I joined. The first is the quality of our unique portfolio of retail-led destinations across the U.K., France and Ireland. We are the leading pure-play company in those markets. And today, 98% of our destinations are rated A or better by Green Street. So a fantastic portfolio.

We've also got a fantastic team. We have a first-class integrated platform, which is built on a management team that is best-in-class and passionate about driving the destinations that we manage across our portfolio. This sits alongside our data-led technology platform, which provides us with customer analytics, allowing us to drive excellence and continue to outperform the market, as you'll see later.

And finally, the strength of the company financially and our access to equity and debt capital markets as obviously demonstrated last year with our equity and bond issues, which were very successful and were both heavily oversubscribed. So a lot has been done, but I can assure you there's plenty more to do, plenty more to come. But I do believe that Hammerson is extremely well placed now to embark on our next phase of growth.

If I turn to the results themselves for a minute, they are undoubtedly a strong set of results and ahead of consensus. Our net rental income increased by 23% year-on-year to GBP 180 million, driven by in part the JV acquisitions we undertook last year alongside like-for-like rental growth of 3%.

Our earnings have increased by 5% as we've gradually reinvested the proceeds of the sale of the interest in Value Retail. Those increased earnings have generated increased dividends, up 6% year-on-year, which is reflective of that growth, but also a sign of our confidence in the future.

Our portfolio is up 33%, a little above GBP 3.5 billion, and that's been driven again by those JV acquisitions alongside capital growth of 4% in the year, which itself was driven by ERV growth and yield compression in the U.K. and Ireland. That's translated into a 6% growth in NTA to GBP 3.94 at the end of the year and a total accounting return of 11%, marking a return to positive territory for the company. So very strong results overall.

As I look at our key priorities as I see them, well, put simply, is to continue doing what Hammerson has done very well for several years. We will continue to drive the returns of our existing assets and portfolio. We have a strong track record of repositioning our assets and creating significant value from that, alongside leveraging, as I mentioned, our technology platform to optimize our brand mix and also enhance the customer experience at our centers. All of that will help us to continue to increase rental tension across the portfolio.

Second, we will continue to maximize both the value, but also the optionality of our strategic land, either developing it ourselves, in partnership or, in certain cases, recycling capital from assets in due course.

Finally, we need to scale up, and it's not about growth for growth's sake. This is about focusing on accretive, disciplined acquisitions that are consistent with our strategy, but will allow us to enhance our operational efficiencies, therefore, driving earnings growth into the future.

If I look a little bit at those priorities in more detail and what we've achieved, at an operational level, it's been a very strong year as well. Our occupancy has increased to 96%. In fact, 6 out of 10 of our destinations are now above 98% occupancy, and that's led us to a shift in mindset and strategy from leasing up the assets to rent up as we look to increase the rents across our centers.

We've seen an increase in footfall. So we've added 3 million visitors during the year, up to 170 million visitors across 2025. This is in stark contrast to our national benchmarks. As you can see from the chart in the middle there, the yellow are our benchmarks. They're either flat or negative compared to the growth that we've achieved. All that translates into the important things for our retailers with sales of more than GBP 3 billion in 2025.

And the statistic that I particularly like is what we call the new for old. So this is taking the former underutilized or vacant anchor space within our schemes, repositioning them into new concept. And across those, we've seen an increase in sales densities for our retailers of 40% compared to pre-COVID levels.

If I shift to leasing, another year of very strong performance across the leasing front, a record level of new deals at over GBP 50 million signed during the year. As you can see, at substantially above, in fact, double digits above passing rent or ERV, leading to additional rent of around GBP 260 million to first break. We've had a number of firsts across our portfolio, either regionally or first within the portfolio for the likes of Sephora, Uniqlo, M&S and Lululemon. And pleasingly, we have more of those happening during 2026 as well. 2026 has started strongly on the leasing front as well. As you can see, our pipeline of around GBP 20 million is a very positive start for the year on the leasing front as well.

Our final part of driving the performance of our destinations is repositioning. And clearly, 2025 was a very active year on that front as well. If I start with Cabot Circus on the left, the opening of the M&S store in November was incredibly strong. It increased footfall in the center on the day by 50%, 5-0 percent, and M&S themselves had record sales as well. We've invested in an overhaul of the car park, installing frictionless technology, which has driven, apologies for the pun, an increase in usage of just under a quarter, so up 25% on the year in the car park.

And recently, a couple of weeks ago, we opened, in a grand ceremony, the Odeon Luxe at Cabot Circus, which is the only cinema in Bristol City Center, which will help obviously drive activity further and into the evening, which then obviously has a benefit for the F&B provision within the center. We've got further openings in the center this year with Uniqlo and Sephora to come. And we've just started the regeneration of Quakers Exchange and beginning the public realm works there as we speak. So a lot has been done, but still a lot going on and a lot to come within Cabot Circus itself.

If I turn to the Oracle, we obviously introduced Hollywood Bowl and TK Maxx there last year. Hollywood Bowl had their best ever opening at the Oracle. And that obviously helped footfall up 9% in the second half of 2025. Our net rental income is up 10% on the scheme and more to flow through from the upsizing of Zara and Apple within the Oracle during this year. And as many of you know, we still have the Debenhams, the former Debenhams unit within the center, on which we have multiple options, both retail, but some of you may have seen that we also got outlined planning for the residential scheme at Reading Riverside earlier this month. So again, lots to do still at the Oracle.

Finally, Les 3 Fontaines in France, the extension phase there, as you will recall, is fully pre-leased to Primark and Nike. And what's really pleasing is to see the kind of halo effect of that already as we've made further lettings to an Apple reseller and to Aroma-Zone adjacent to that scheme. So Cergy is now 90% occupied, which it never has been before. But we also expect that to increase. As that scheme opens and starts to trade from Q1 next year, we expect further leasing activity from that as those retailers have opened.

If I move on to the pipeline and how we look to maximize the value and optionality, as I mentioned, you've seen this chart before. We've updated it since you last saw it. So on the left-hand side, you've obviously already heard about the Bullring and Dundrum repositionings. Worth noting that we continue to benefit from those repositionings even today.

In pink, obviously, already mentioned the Oracle, Cabot, and Cergy a little bit further to the right. But also to mention the completion of The Ironworks at Dundrum, which completed in October, and we are obviously in the middle of leasing that up. We've got about 1/3 leased and very strong demand for what is very good product in a tight market.

Looking at the recycling side of the equation, the box in blue in the middle, we completed the sale of our last interest in Leeds a couple of weeks ago, and that completes our exit from the Leeds market entirely. So we sold the last site for GBP 6 million, slightly above book. So we've realized a total of GBP 32 million in the last sort of 18 months or so from the complete exit of our interests in Leeds.

And on the right-hand side, you have our longer-term development program. So where we're looking at master planning options, obviously, and that includes Birmingham with the Martineau Galleries that I mentioned already. And actually, the Birmingham estate is almost a perfect example of a way of describing how we look at our strategic land holdings. We are clearly right in the center of Birmingham and the iconic Bullring sits at its heart. That itself is now 98% occupied. And so we've got significant spillover into Grand Central. You can just see to the right, where we've got retailers taking space within that as demand spills over from the main center itself.

At Grand Central, moving on to additional opportunities, we have our Drum project, which is a great example of projects within our schemes that are integral to them. We are currently working up a mixed-use office, retail, F&B and leisure scheme at the Drum, which we'll look to take forward in the months ahead.

Another part, which is integral, is at the top of this image, Edgbaston Gardens, the car park, on which we have outlined planning for 700 residential units or 1,500 student or a combination of the above. And again, these 2, as I say, are integral to the scheme and provide synergies in terms of footfall.

On the bottom left, a little further afield, you have Martineau Galleries, which is a very large office and residential dominated scheme. This is a much longer-term project on which we will look to maintain control of the master planning, to maintain control of the overall environment. But ultimately, we will look to maximize value and recycle capital in due course for that project.

And coming back to increasing our scale, which obviously allows us to leverage our operational efficiencies and the platform that I've referred to already. It also helps us to increase diversification and liquidity and obviously deepen the relationships that we have with our retailers.

In the last 15 months, we invested just under GBP 760 million in buying out 4 of our joint venture partners at a yield in excess of 7.5%. Those deals have been significantly accretive to earnings. And as I've mentioned, we've been able to execute them without adding any management resource, so very accretive from that standpoint as well.

We will continue to target further accretive acquisitions, both internal and external, so long as they are accretive to earnings and they are consistent with our strategy of investing in retail-led destinations.

And finally, if I turn to the outlook for '26 and beyond, we're expecting net rental income growth of 20% next year, driven by a full year effect of the JV acquisitions, of course, but also like-for-like rental growth of between 4% and 5%, earnings growth for the year of around 15%. It will be a touch less on the EPS because of the share issue last year, and Himanshu will comment on that.

We have a clear line of sight as well to our earnings into 2027 as we benefit from the leasing activity that we've had in '24, '25 and beginning of '26, and also the Cergy 3 scheme coming on board. So again, a very positive outlook as we go forward for earnings into 2027.

On that note, I'll hand over to Himanshu to comment on the financials.

Thanks, Rob. And good morning, and welcome to everyone this morning. As usual, let's just jump straight into the financials. As Rob said, another strong year of financial performance for us.

Starting with the top line. Net rental income up 23% year-on-year and like-for-like growth of 3%, exactly in line with our guidance. And just unpeeling that a little bit, it was really pleasing to see the U.K. up 4%, and we had particularly strong performances both at Westquay and at the Oracle. The like-for-like in both France and in Ireland was around 2%, solid performances in our French operations and really strong performance in Dundrum, benefiting from the repositioning of 2 or 3 years ago, and also strong performance in Pavilions.

Turning to the earnings line. EPRA earnings slightly above consensus at GBP 104 million, up 5%. And the key is that we saw really strong operational gearing come through with the EPRA cost ratio down nearly 4 percentage points to 35.9%. And finally, on the P&L, the IFRS profit of GBP 232 million is our first full year positive IFRS result since 2017.

On the balance sheet, an increase of 33% in valuations driven by the acquisitions, yield compression as well as ERV growth, and then the beat on NTA up 6% to GBP 3.94, so I'm going to unpeel those in more detail. Credit metrics are robust. LTV of 39%. And remember, on net debt-to-EBITDA to annualize the effect of the acquisitions, which we've shown in today's release at 8.1x.

So let's now turn to the earnings walk. Starting with the reported number of GBP 99 million last year. You remember, last year naturally included the contribution from Value Retail. It included the contribution from Union Square and also 2 months benefit from the acquisition of Westquay. Adjusting for those, for the like-for-like portfolio, the rebased earnings would be at GBP 76 million.

And then starting from that, we saw GBP 1.4 million from the disposal of the noncore land in Leeds, like-for-like growth, the GBP 3.6 million uplift, and a GBP 35 million contribution from the acquisitions. The increase in net administration costs principally reflects inflation, but also the loss of management fees now that we own 4 of our U.K. assets, 4 of 5 U.K. assets at 100%.

Net finance costs were up GBP 7 million. Really 2 moving parts there called out on the slide. The largest being the lower interest receivable of GBP 10 million as we redeployed cash into yielding acquisitions. And then the interest payable improved by GBP 3 million from the successful refinancings that we did in 2024.

Turning then to the NTA. And remember, when you're looking at the NTA, the cancellation of 9 million shares from the share buyback, which we suspended at the half year as we deployed funds into the acquisition of Bullring and Grand Central, and the equity issuance, which is 48 million new shares from the equity raise. So the walk starts at GBP 3.70, earnings added GBP 0.20, as you can see on the slide. The GBP 120 million property revaluation adds a further GBP 0.23. Dividends, naturally an outflow of GBP 0.16, the GBP 82 million of dividends. And then you see the effects of both the share buyback and the equity issuance flowing through to deliver that GBP 3.94.

And to valuations. As Rob said, just over GBP 3.5 billion of value today and a capital return -- and a total property return of 10%, capital return of 4%, and an income of 6%. And just going left to right, starting with the U.K., the U.K. was up 13%, benefiting from an average 21 bps yield compression. And we saw that coming through at Bullring, we saw that come through at the Oracle and at Cabot Circus, really underscoring the benefits of the repositioning. And it was pleasing to see ERVs up also 3% in the U.K.

France total returns were 5%, really driven by income growth, while yields were stable. And Ireland posted a 12% total return with 20 bps inward yield compression and a 4.5% growth in ERV, really reflective of the fact that our Irish assets are 99% occupied. And finally, on developments, a 14% return, which includes the uplift from the discounts that we achieved on the land elements of our joint venture acquisitions.

So just to close on this slide and to share with you our reflections on ERVs and yields. Whilst we saw ERVs up 3% in 2025, there is more to come as there's a lag here in values fully reflecting the leasing spreads coming through on ERVs. And to yield compression, you can see on the right-hand side of this chart, the range of yields today compared with where the peak yields were in 2016, 2017. And on the far right, you can see the 5-year swap rates. And whether you compare the yields today to those at peak, or to the spread to current swap rates, they continue to look elevated. And therefore, it was really pleasing to see the tightening of yields coming through in the U.K. and Ireland as the sector became much more attractive to that wider pool of investors.

The balance sheet. We've been very disciplined in our capital allocation in 2025. We've seen strong support from both equity and debt markets. And during the year, we saw our credit ratings strengthened from both credit agencies. Our credit metrics remain robust and are fully aligned to maintaining a strong investment-grade credit rating.

We are in a good place at this point in the cycle. Liquidity remained high at GBP 1 billion, and our refinancings in 2024 and in 2025 have largely addressed the upcoming maturities. And since the year-end, we've repaid a further GBP 104 million of debt from cash on balance sheet, and you'll see in the additional disclosure at the back, the resulting maturity chart.

So moving to my last slide and more detailed guidance. We expect EPRA earnings growth of 15% to around GBP 120 million with EPS growth of around 10%, taking account of the equity issuance. In terms of the key line items, we are forecasting an acceleration in our like-for-like growth to 4% to 5% and total NRI growth of around 20%. Our flagships gross to net will be at around 80%, and we will maintain administration costs broadly flat through continued strong cost control, notwithstanding the loss of around GBP 1 million of annualized management fees following the JV acquisitions.

It was pleasing to see our EPRA cost ratio come in around 4 percentage points. And as you look forward with the growth included for both '26 and 2027, we expect to see the EPRA cost ratio come down by 3 to 4 percentage points in each of 2026 and in 2027, such that in 2027, our EPRA cost ratio will be below 30%.

Net finance costs will be about GBP 60 million from the lower cash balances after the acquisitions and falling rates, partly offset by the higher interest from the October 2025 bond issue.

And then finally, to CapEx. We expect to spend around GBP 30 million to complete the repositioning at Cabot Circus, the Oracle and Cergy 3. And our ongoing asset management leasing CapEx, we guide to about GBP 34 million. Philosophically, we always seek to fund that from FFO after dividends, and we'll be in that position starting in 2027.

And then finally, to the dividend. The dividend has increased this year with earnings. Our payout ratio remains 80% to 85%. And of course, with growing earnings, we grow dividends.

With that, back to Rob.

Thanks, Himanshu. Just to conclude then, we will clearly remain focused on capitalizing on Hammerson's strengths. We will look to continue driving returns from the existing assets and portfolio. We'll look to scale up in order to really use the operational leverage that is inherent within our platform. All of that, alongside what you've heard from Himanshu, gives us great confidence in the future. And we've got, as I said, a very clear line of sight to our earnings growth in 2026, which is strong, but also into 2027. So I'm very excited about where we are in Hammerson's journey and as we embark on our next phase of growth.

Thank you for listening, and I'm very happy to take any questions. Thank you.

There's one here in the middle.

Bjorn Zietsman from Panmure Liberum. Himanshu, just a question on the earnings walk. So if we sort of strip out the VR disposal benefit and the NRI acquisitions, the adjusted EPS -- adjusted earnings number would have actually gone backwards. So I guess my question is, over the past 2 years, how much benefit has come from project repositioning or asset repositioning like the Bullring? And do you have to do more deals in the future to continue to drive earnings beyond FY '26?

What you've seen, Bjorn, is, if you reflect back on the repositionings being with Bullring and Dundrum, there's always a lag before that comes through. With the completion you now see at both Cabot and Oracle, which will complete and is fully funded in our guidance in 2026, that's where you now begin to see that acceleration coming through in the NRI. And that's across the board, not just in the U.K. We see it coming through from the lease-up at TDP, where it went through a 10-year anniversary cycle last year. You'll see it coming through on Cergy, and we continue to see that coming through. So largely, the repositioning have been complete, and we're now reaping the benefits of the investments we made, both in lease incentives and in CapEx now coming through.

It's Tom Musson at Berenberg. Clearly, good results today. Can I just ask, in your November trading update, you talked about medium-term guidance of an 8% to 10% EPS growth CAGR. Today, you sort of mentioned to expect further growth in EPRA earnings in FY '27 and beyond. Just wondering if that 8% to 10% outlook in the medium term on earnings still holds?

Tom, that was based, if you recall, at the time following the disposal of Value Retail, so it was based off the 2024 rebased earnings, which was GBP 76 million shown on my slide on the like-for-like portfolio. So projected forward on a 5-year CAGR, that still holds. It was off that '24 base.

It's Max Nimmo here at Deutsche Numis. Just you're talking about scaling up, but it needs to be accretive. Just as you kind of look around the sort of your universe as it were, where do you see the kind of most accretion that you can find? Is it within the U.K. and extracting value from that strategic land? Or do you think actually maybe we go to further into Europe here where we can find higher yields and tighter financing? Just any views you have from that perspective.

Sure. I'll answer that to a degree, Max, and certainly come back later in the year with perhaps a little bit more precision. In short, today, across pretty much all the European markets, there is a spread between the yields at which you can acquire and the cost of debt. And of course, there's differential, as you mentioned, between U.K. and Europe. I see both of those as being attractive. But I think what will drive our acquisition strategy going forward is really about specific situations of assets that we like and where we can actually create further value through repositioning as we've demonstrated so far. So just the spread of markets themselves doesn't provide the answer to the question, you've got to look at the specifics of each opportunity.

What I've said to the team so far is that having been through a period over the last 5 years where the company has had to do certain things to ensure that it continues, our focus now is we should be choosing what we do and where we do. And so we're spending some time looking at that, looking at the opportunity set across the markets in Europe. And as I said, we'll come back later in the year to give more commentary on that.

Oli Woodall from Kolytics. Just kind of following on from that, if an acquisition opportunity does present itself, what is your appetite given LTV has come up? And is that -- you're going to provide color later on the same?

No. I think, look, we'll be open to acquisition opportunities if and when they present themselves. We will not sort of necessarily wait. If the right opportunity presents itself, we will act.

In terms of the second part of your question, which Himanshu may comment on as well, we're comfortable with where we are in terms of our balance sheet metrics. We've got our guardrails that we want to stick within. I think it's important to note, last year, obviously, we were able to demonstrate the ability to combine both equity and debt to fund acquisitions, and that's certainly we would look to do going forward. But there are other avenues as well of funding acquisitions that could be in partnership again, could be through recycling capital from some of the disposals. So I think we certainly will be open to acquisition from now, and we'll be looking to stay within the kind of metrics that we have today from a balance sheet standpoint.

I would add that the acquisitions that we've done in 2025 have been a net credit positive. From a credit agency perspective, you saw both credit ratings strengthen. And that was just a reflection that we now have rental-driven EBITDA streams, not joint venture distributions under our control. So you'll continue to see, as you run the numbers, that net debt-to-EBITDA strengthening as you go into 2026 and 2027.

Okay. That's clear. And then one more on the tenant health of -- well, across your portfolio. I don't know if you give an occupancy cost ratio number anymore, or if there's any color you can give how that's looking across the different geographies?

Sure. Do you want to comment on the OCR side?

Yes. Tenant health overall remains robust. The OCRs now across U.K., France and Ireland are in their mid-teens. And actually, rent to sales only now makes up about 10% of the OCR. Rates, where there's a lot of talk about rates, represent about 2% to 3%. And across our portfolio, with the 2026 revaluation, we'll actually see the multipliers come down. So on average, across the portfolio, we'll see an 8% to 10% benefit on rates coming through for occupiers. So it's more national insurance and other costs that the occupiers worry about rather than rent to sales or rates.

Tom Berry from Green Street. Just the French macro picture looks a little bit weaker at the moment and indexation expected to be on the lower side next year. How does that kind of play into your guidance for 2026?

Well, it's fully factored in, obviously, in terms of the outlook guidance that we provided. It's a market that has much lower volatility and has much lower cost of finance. And therefore, it's still a major contributor to our earnings today and going forward. But obviously, we'll keep a watching eye on what happens in France. Himanshu, anything else you want to add?

Yes. And I would just add that, that acceleration of the NRI growth of 4% to 5% equally applies to France. So indexation, as you say, really is pretty much 0 for 2026, but it's the benefit of the lease-up at TDP and the opportunities that Rob has already talked about at Cergy that really begin to come through on the '26 numbers.

Anyone else in the room? Okay. I don't know if there are any questions that have come through? Yes, I think so. Josh?

Nothing that we haven't already covered. So in the interest of time, Rob, if you'd like to draw a conclusion, I'll just remind everyone, we've obviously got a short turnaround, so please do move back to the drinks area.

Thank you, Josh. Look, again, just thank you for being here and for listening. Sorry.

Apologies. Apparently, we have some questions on the phone line.

[Operator Instructions] We will take our first question from Veronique Meertens from Kempen.

Just 1 -- 2 questions. One, again, about those investment markets. I appreciate that you can't go into full detail, but just maybe from an overview perspective, do you see more opportunities arising or more discussions over the last few months? Or do you feel that investment markets are still a bit in a lockdown across your 3 different geographies?

Thanks, Veronique. The short answer is that we do anticipate further investment activity and growth during 2026. I think a number of potential sales have been headlined already, and we do expect those to come through during the course of 2026 in the U.K. I think in general as well, the environment for investment is likely to improve slightly in 2026 as interest rates potentially continue to come down gradually and investor sentiment across Europe has started to improve. So I think we'll see what's happened already a little bit in the U.K. start to spread into Europe as well. So in short, we expect there to be further investment activity, and we will certainly be looking at that.

Okay. Perfect. And then one other question. So you obviously have quite a positive outlook, both from improved top line and bottom line. So I'm just curious what would you say is the biggest challenge for Hammerson in 2026?

I think the biggest challenge actually are sort of factors that are somewhat outside of our control. So it's really coming back to particularly the U.K. macro picture, perhaps France as well and the impact that has on consumer. I think those are probably the potential headwind risks that we face more than anything that's sort of specific to our portfolio. So yes, overall consumer.

Thank you. It appears there are no further questions. I'd now like to turn the conference back to Rob for any additional or closing remarks. Please go ahead, sir.

Okay. Well, no, just once again, thank you all for listening. As I said in summary, a very exciting time for Hammerson. So again, thank you for coming here for your questions and look forward to seeing you further. Thank you. Thanks all.