Despite posting a 6.4% fall in profits, property firm Hammerson has stated that the UK retail sector is faring well amid the current economic slowdown.

According to the latest figures released by the company, its commercial property portfolio fell slightly in value over the first six months of 2008 to £7,093 million, in line with declines being seen across the whole market.

While this prompted shares in Hammerson to dip slightly, it was also announced that its net rental income increased by 5.4% over the same period, thanks largely to strong demand for prime space in its UK and French malls.

"Retailers are talking about tough times but profitable retailers are continuing to seek to open stores where they will make profits," chief executive John Richards told the Guardian.

Furthermore, Mr Richards explained that his company has yet to see a boom in the number of clients calling for a change to the timing of rent, noting that most retailers are content with paying on a monthly basis.

Earlier this week, three-quarters of analysts and investors polled by Legal & General stated that they expect to see the slump in the commercial property market to continue into 2009.