THE owner of the Bullring and Brent Cross shopping centres said a recovering UK retail market helped 2010 profits rise by 11%.
Butt he company warned that Government spending cuts and the increase in VAT could see some embattled retailers fall behind with rent repayments.
The group, which also owns Reading’s Oracle and Cabot Circus in Bristol, said 2010 saw a turnaround for many retailers as trading improved and administrations fell.
Hammerson’s full-year results revealed underlying profits of £144.5m in 2010 – up from £130m in 2009.
Retail vacancies fell as the recession saw many new developments cancelled or put on hold, which helped overall occupancy levels rise to 97.3%.
Hammerson said: “The trading environment has continued to improve during 2010 and the rate at which retail companies in the UK are going into administration has fallen.
“However the effects of increased taxation and restrictions on government spending may mean that some tenants, principally in the UK retail sector, face difficult operating conditions and there is a risk that they will be unable to pay their rents.”