Hammerson plc has announced the restatement of its 2022 half-year income figures in response to the recent accounting interpretation by the International Accounting Standards Board (IASB). The restatement aims to align with the IASB’s decision regarding the treatment of losses incurred from rent concessions during the Covid-19 pandemic.
Under the IASB’s interpretation on ‘Lessor forgiveness of lease payments (IFRS 9 and IFRS 16)’, Hammerson and similar companies within the sector had initially recognized the impact of Covid-related concessions as lease modifications. This approach involved holding the effects on the balance sheet and gradually spreading them into the income statement over the lease term or period to first break.
However, based on the recent agenda decision by the IASB’s IFRS interpretations committee in October 2022, the losses resulting from rent concessions should be charged to the income statement in the year they are granted. Consequently, Hammerson has decided to restate its 2022 half-year income figures accordingly.
The restated figures for the 2022 half-year period are as follows:
- Gross rental income: £103.8m (originally reported) -> £107.4m (restated)
- Adjusted Net rental income: £86.5m (originally reported) -> £83.8m (restated)
- Adjusted earnings: £51.1m (originally reported) -> £48.4m (restated)
Hammerson emphasizes that there are no other material changes to the Group’s income, net assets, or cash flows aside from the restated figures. The company plans to present the restated figures, along with the 2023 half-year results, at an upcoming event scheduled for July 27, 2023.
Investors and analysts interested in accessing the full details of Hammerson’s half-year results presentation, including instructions for joining the virtual analysts briefing, can find them on the company’s website at [https://www.hammerson.com/investors/financial-calendar].