UK-based retail property group Hammerson raised its full-year earnings guidance after higher rental income, strong leasing demand and its £218m acquisition of a 50% stake in Manchester Arndale boosted first-half performance across the UK, Ireland and France.The group, which on Thursday reported a 33% increase in European Public Real Estate Association (EPRA) earnings for the six months to end-June, said it expects 2026 EPRA earnings to rise about 27% to £132m and introduced medium-term targets of 6% to 8% annual growth in earnings per share and dividends. EPRA earnings are a measure of the underlying operational, recurring performance and dividend sustainability of UK-listed property companies. The group will also raise about £190m by issuing new shares at 5p each to partly fund the acquisition of Manchester Arndale, one of the UK’s largest city-centre shopping centres. The mall attracts about 45-million visitors annually and serves a catchment of 6.4 million people — the largest such retail catchment outside London, it said. Occupancy of its flagship portfolio improved to 96%, the highest first-half level in seven years, as strong leasing demand continued, the group said.Its property portfolio remained valued at £3.6bn, while its loan-to-value ratio stood at 39%. The board declared an interim dividend of 9.67p a share, up 22% from a year earlier.“Our strategy is now broadening to external acquisitions,” CEO Rob Wilkinson said in a statement accompanying the results. “Manchester Arndale aligns with our strategy to increase scale and is a retail-led destination at the heart of one of Europe’s leading cities, benefiting from attractive demographics and a positive economic outlook. It is also our first major external acquisition in more than a decade.”The group said its city centre retail destinations continued to outperform their respective markets, driven by targeted leasing and the addition of new international brands that attracted more shoppers.Footfall increased 3% during the first half, outperforming national retail benchmarks across the group’s markets, while like-for-like tenant sales rose 2%.The group said new store openings, including Sephora, Uniqlo and Zara, helped drive higher footfall across several of its flagship retail destinations.Hammerson said it is shifting its focus towards external acquisitions, targeting retail-led destinations in cities with strong economic fundamentals and growing catchments. The UK remains its priority market, with selective opportunities also being considered in France and elsewhere in Europe.