Hammerson Share Discussion Threads

[777mason] 01/3/2018 19:56

TRCML if you have the time, can you please explain wants really going on?

people are running to the Brexit door. - Shopping centre landlord Hammerson Plc said the impact of Britain’s decision to leave the European Union on property valuations was still unknown, but the lettings and investment markets were facing a period of uncertainty.

markets do not like uncertainty that why hammerson have lost 24% share value from Britain’s decision to leave.

market wake-in up i hope so looking forward to seeing £12 again O they were the good old days.

[trcml] 01/3/2018 16:05

"such generosity is unlikely to be repeated due to uncertain market conditions."

The only uncertainty is amongst those that don't really understand what's going on. It is irrelevant to Hammerson that the likes of Maplin, Toys R Us, etc have gone broke; and numerous other failings yet to be announced.

"that's why wise people are running to the Brexit door."

that's why scared people are running… !

Growth may be hard to come by in UK but not elsewhere. And in the UK it's not gone, simply elusive.

Sometime this year the market will wake-up to the yield attraction and the share price likewise.

[777mason] 01/3/2018 15:27

if your stock price value has lost 18% and the yield is only 5.7% i don't think you have miss much.

But this could be the last special dividend paid to investors the last year,with such generosity is unlikely to be repeated due to uncertain market conditions.

that's why wise people are running to the Brexit door.

[cc2014] 01/3/2018 15:09

Dividends

2013 17.7p
2014 19.1p
2015 20.4p
2016 22.3p
2017 24.0p

Now we are at 25.5p which I get to a yield of 5.7%? What I am missing?

[777mason] 01/3/2018 14:31

Dividend growth

Hammerson (LSE: HMSO), which lost 18% of its value over the past year, has been one of the worst performers. The retail-focused REIT has been heavily sold off in light of sluggish retail sales growth in the UK, but its dividend prospects remain hugely attractive.

Shares currently yield 3.7%, but City analysts believe the dividend will grow 8% this year, with a further 7% expansion forecast in 2017. This would give its shares tempting prospective dividend yields of 4.3% and 4.6% for 2016 and 2017, respectively.

[777mason] 01/3/2018 14:25

regulations.

Fund supermarkets cannot agree whether many Reits must obey new legislation known as Priips (packaged retail insurance-based investment products). Some have halted trading in large property companies while others continue to sell them.

The Priips rules, which came into force in January, were designed to give European investors more information about the risk of the funds they invest in. They require certain types of fund sold in Europe to produce a new key information document (Kid), outlining the potential losses to investors if market conditions deteriorated.


This page provides information on the UK REITs tax regime, which has applied to Hammerson since 1 January .

Included are declarations to be completed by certain categories of shareholders to register for Property Income Dividends to be paid gross. The shareholders who qualify for gross payment are principally UK resident companies, UK public bodies, UK charities, UK pension funds, and the managers of ISAs, PEPs and Child Trust Funds. Most shareholders, including all individuals and all non-UK residents, do not qualify for gross payment and should not complete the forms.

[777mason] 01/3/2018 11:21

Owners of Manhattan's commercial real-estate might soon begin to regret their decision to hike rents to absurdly high levels in the hope of attracting the next Chase, Bank of America or Duane Reade capable of paying their extortionate prices.

As Bloomberg reports, owners of prime retail storefronts in the heart of Soho - a trendy shopping district in downtown Manhattan - are struggling to find and retain tenants willing to pay the record rents being demanded by landlords.

wake up hammerson's and smell the coffee.

[777mason] 01/3/2018 10:34

Two of the UK’s best-known retailers, Toys R Us and the electronics specialist Maplin, have collapsed into administration on the same day, putting 5,500 jobs at risk.

Administrators said they were still hoping to sell all or part of the two firms, which have struggled amid competition from internet giants such as Amazon and the weight of debts racked up by private equity backers.

The gradual switch towards online shopping and the propensity of consumers to change tastes more rapidly than was once the case, partly as a result of the rise of social media, has been happening for at least a decade.

However, less attention has paid to the crisis in the UK restaurant sector, which over time threatens to leave at least as many empty sites on Britain's shopping centres as higher-profile retail failures.

The Italian restaurant chain Prezzo looks set to announce in coming days that it will close one in three of its 300 UK sites most in shopping centres

Business rates are due to rise again this April, taking the total bill up by £845 million in 2018-2019 to a total of £24.8 billion.

Joshua Bamfield at the Centre for Retail Research warned: “The retail industry is now in crisis, caused by slack demand and escalating business rates.

“The Government must act now to protect the range of large and small shops by freezing rates as the very minimum. If not, then thousands of jobs and stores are forced to close.”

He predicts 2,000 stores will close due to administrations this year –but nearly four times as many – 7,500 - will shut as chains cut costs.

Overall property taxes – including stamp duty – represent 4.2 per cent of Britain’s total economic output, against 2.7 per cent in the US and just 1.1 per cent in Germany. Debenhams in January announced plans to shut up to ten shops after a shock profits warning.

shopping centres are a thing of the past empty boneless dinosaurs that belong in museums, or could even become museums, you have to pay to come in to view the shop of past Christmas.

[andyj] 27/2/2018 23:58

The impending relegation fron the FTSE have left these at a false price.

[777mason] 26/2/2018 11:53

“The consumer backdrop was softer than the previous year,” Hammerson said in regards to its UK performance, noting that higher inflation – linked to the collapse of the pound – put the squeeze on disposable income and knocked retail spending by around 3% last year.

Though inflation has eased slightly, the property firm said consumer confidence had “eroded” throughout the year.

“There is uncertainty over the UK’s arrangements after it leaves the EU, therefore consumer spending growth is expected to remain muted,”

I must admit that I enjoy shopping through the Internet, especially finding the rare and unique stuff. Shopping online can save your time and energy. You can just launch an online shopping site on your device, type the name of the stuff you are looking for, and click enter. If it’s not available on one site, you can launch the other shops without leaving your chair. It will only take minutes, cooking anything you want to eat without being charged over price bills because of overpricing shopping centre rates.

[cc2014] 26/2/2018 11:34

I am a little surprised. The results looked good to me and the fact that the share price hasn't risen suggests the market was expecting what it got.

All of which leads me to wonder what will shift the share price.

The dividend rises to 5.4% now, which seems decent enough.

I'm happy to hold if a little frustrated

[winner31] 26/2/2018 07:19

Great results and 14.8p dividend

[winner31] 25/2/2018 15:58

Looks like a nice set of results tomorrow ,back over £5 this week

[777mason] 23/2/2018 11:15

dead cat bounce off 13 day moving avg would see next support £350.00p lets wait and see ?

[777mason] 23/2/2018 10:36

Hammerson is set to crash out of the FTSE 100 after doubling down on its exposure to struggling shopping centres by snapping up its rival Intu Properties.

Its 14pc share price slide since announcing the £3.4bn deal leaves it perilously close to the FTSE 100 trapdoor ahead of a quarterly reshuffle in just over a week.

The Birmingham Bullring owner raised eyebrows in December by swooping for Intu amid concerns that UK shopping centres are in a state of terminal decline as consumers switch to online retailers.

Analysts also fear that the merger will dilute Hammerson’s higher-quality portfolio and ramp up its exposure to the inflation-squeezed UK shopper.

The tie-up is a “marriage of convenience” and Hammerson’s shareholders will feel aggrieved by the deal watering down their exposure to the company’s “‘crown jewels’ of premium outlets”, Peel Hunt warned ahead of its completion.

[cc2014] 23/2/2018 08:48

FTSE reset is Weds 28th and based on the prices I have HMSO will get ejected from FTSE100 unless it can get back to around 490.

Which might explain some of the selling as I have been surprised the last 2 weeks about how much volume has been going through at this price.

I get the selling, many analysts have a downer on the sector and the black boxes will continue to sell the downtrend. I don't agree with the analysts but I get their view. The black boxes, well they are just stupid sometimes. What I didn't get until I realised FTSE reset was on it's way was the volume of the selling.

So, could it get to 490 by next Wednesday or perhaps a bit higher is needed as other stocks may rise. Is that just wishful thinking. I guess so. They have started buying it since INTU results and we are at 475 now.

It could be a Brexit/interest rate thing though as other property sector companies are pulling up too. Not as fast as HMSO though

I'm intrigued to see what happens

[777mason] 08/2/2018 18:10

Good luck CC2 but i would say this, most of hammerson shopping centre do border on the outskirts of outer town shopping centres,

"David Atkins, CEO of Hammerson, said: “GIC is one of our key joint venture partners and we are pleased to take forward this relationship. The new restaurant and leisure complex at Watermark is the largest development of its kind in the UK, showcasing our skills in creating consumer-led destinations that cater to the family experience, bringing exciting new restaurants, the most technologically-advanced cinema in Europe"
i would say they are walking in the same shoes as the American model.

Hammerson sold a 50% in Watermark, its recently to completed it leisure scheme next to the Westquay shopping centre in Southampton, to GIC for £48.5m.
Hammerson is understood to be in talks to sell Westwood and Westwood Gateway Retail Parks in Kent to BMO Real Estate Partners for £80m,
Hammerson PLC said Thursday that it has sold a retail park located in Birmingham, UK,7 Feb 2018
Hammerson said it would sell about £2bn of real estate if the deal of the Mergers between Intu and hammerson was completed — predominantly in the UK — and focus on higher growth economies such as Ireland and Spain. Well good luck with that idea.
Banks such as RBS and Lloyds, as well as Thomas Cook and Toys R Us, have revealed plans to trim real estate portfolios as more customers move online.
Off load while you still have money left hammers is a dying dinosaur
Somebody want their money back that the only reason company sell or off load there assets.

[cc2014] 08/2/2018 13:05

I think it would be easy for me to get drawn into this debate. I take note of both sides.

I'm sitting on the side of the fall in share price far outweighs the changing outlook for shopping centres. In particular I do not think the American model is substituted over here as many of their malls are out of town where I agree an anchor is required.

Time will tell. I've placed my trade and we'll see what happens.

[777mason] 08/2/2018 12:42

The risk of failure for a large shopping mall increases dramatically once you see anchor closures, slowdown in the housing market; show that household have less income to spend in retail shops, most shopping centres will go broke,
When we have a down turn in the housing market, the primary site they own will be redeveloped. By Amazon the simplest explanation for the demise of brick-and-mortar shopping centres is that Amazon is eating retail. Between 2014 and last year, Amazon’s sales quintupled, online shopping has done well for a long Time.
Easy return policies have made online shopping cheap, easy, and risk-free for consumers. Why would you what to have an argument with someone who has no knowledge in the product you’re returning, and would like to ruin your only day off from work
When you could be have a nice day in the park with your children.
Let’s not forget although rising wages are obviously great for workers and the overall economy, they can be difficult for low-margin companies that rely on cheap labour (like retail stores.)
New minimum-wage laws and a tight labour market have pushed up wages for the poorest workers, around the world squeezing retailers who are already under pressure from Amazon.
Second, clothing stores have declined as consumers shifted their spending away from clothes toward travelling and dining out.
Look at the USA, American retail, malls are in crisis. Pictures of dead malls, their hollow shells left like abandoned zombie movie, which in my eyes they are The shift to online shopping has taken its toll on traditional mall anchors, such as Macy’s, JC Penney and Sears. But there are other issues. As well America has too much retail space ,just like London .

[trcml] 08/2/2018 11:18

What's the housing market got to do with retailing? Between them Hammerson and Intu own enough shopping centres to attract approximately half the UK working population. People aren't going to stop going shopping just because some people might not be able to get as much for their houses if they are wanting to sell?

As for on-line, progressive retailers regard on-line sales as complementary to physical shops. Witness the rise of click-nd-collect. And the more enlightened remember that on-line selling is akin to glorified mail order: in short, don't touch it with a barge-pol. Witness the evidence of John Evidence to charge its suppliers for customer returns.

But if worst scenario were to happen then, because the shopping centres mostly occupy primary sites, the whole lot could be redeveloped.

HMSO makes it money from rental income. Rental growth might be harder to come by but that doesn't mean that the income dries up. The majority of retailers are in fine-fettle with plenty of room for cost-saving measures through improvements in efficiencies. Hence, the current bout of staff redundancy announcements.

Where HMSO might come a cropper is on net asset value: whether its valuers are comfortable with their opinions as to the market value of the properties. Much propulsion of all prop co share prices in recent years is the result of yield-compression: a rise in interest rates would put pay to (some of) that.

In my opinion, reversion to historic norm yields wouldn't be such a bad thing for the commercial property market as a whole. It would however clobber those that have overpaid and envisaging someone more naive to bail them out. But that doesn't apply to HMSO. Intu do not manage/run their shopping centres as well as HMSO would.

[777mason] 07/2/2018 19:23

business will be affected by the rise of online sale agents and the slowdown in the housing market.

[777mason] 07/2/2018 19:21

A look at the trajectory of Hammerson share price over the past month suggests its investors are also far from convinced about the benefits of buying a company whose woes resulted in it dropping out of the FTSE 100 last year.

M&A always pays for the investment bankers who put deals together – but for the companies doing the acquiring and their investors, bigger doesn’t always mean better.

[777mason] 06/2/2018 15:19

on-line shopping is the way forward shopping centres went out years ago just look what happened in the USA only one way the share price is going and that down.