Hammerson Share Discussion Threads

[researchcentre123] 28/4/2021 09:48

From what I remember Hargreaves Lansdowne said it was some time after 12th or 14th May

[thaiger] 27/4/2021 19:08

Has anyone got the shares in due of dividend.

[researchcentre123] 27/4/2021 09:40

https://www.fool.co.uk/investing/2021/04/26/5-penny-stocks-id-buy-for-5-years/Here's a positive outlook. I think long term is the best approach with HMSO as traditionally that's always been the best approach with property (assuming you've got decent management of course which hopefully they have now)

[davvero] 26/4/2021 22:52

can't understand why those orders at 6.30 pm.... doesn't the market close at 4.30 pm then?

[nemesis6] 26/4/2021 15:49

cant quite keep its nose above 40p ;-[

[return_of_the_apeman] 26/4/2021 13:38

Thanks TRCML - good to know

[trcml] 26/4/2021 11:07

Valuation is not based on rents received but on a combination of the contractual rent under the lease (or lease related documents if different) and the estimated reversionary rent. It is assumed the tenant would pay the rent so the rent actually received would not affect the investment yield.

[return_of_the_apeman] 26/4/2021 10:34

Share price back on the upward trend today - jolly good :-)

Flyfisher - that's a good point. I am not an expert in commercial property, however my understanding is that valuations are based on the rent recieved, so the sooner more rent comes in the better and a nasty nav drop in August might be avoided

[researchcentre123] 26/4/2021 06:21

Article on the new CFO - looks like he knows what he is doing:https://thenegotiator.co.uk/countrywide-himanshu-raja-hammerson/

[flyfisher] 23/4/2021 09:59

''Court rules in favour of landlords against Sports Direct, Cineworld and Mecca in dispute over rent.''

I guess this will improve the HMSO rent collection and arrears numbers in the next quarter.

[researchcentre123] 22/4/2021 16:49

https://www.retailgazette.co.uk/blog/2021/04/hammerson-hires-new-chief-development-officer/The new management are really on it. I think we'll see more positive changes ahead- doesn't look like they'll be sitting still anyway as the whole team has been shaken up now

[flyfisher] 22/4/2021 08:16

The legal ruling clarifies that a tenant cannot rely on the landlords insurance and that it is the tenants responsibility to arrange its own business interuption insurance.

I would guess that this is a sticking point for many arrears negotiations and expect that it will lead to a fair number of arrears cases being settled.

extract
''The tenant’s main argument concerned the landlord’s insurance for loss of rent against the occurrence of a notifiable disease. The landlord’s case was that the landlord’s insurance protected losses incurred by the landlord to its business. It was no part of the landlord’s obligation to insure for the landlord to insure against losses to the tenant’s business; it was open to the tenant to take out its own business interruption insurance to protect itself against such risks. The lease required the rent to be paid during the term. The exception to that, set out in the rent cesser provisions, applied only where there was damage to the landlord’s premises. Here, there was no such damage. That meant that the rent continued to be payable under the lease. Any claim by the landlord under its policy would therefore be rejected by its insurer on the grounds that the landlord had not suffered a loss to its business. There was no justification for an argument that the landlord must look first to its insurance policy where the rent remained due under the terms of the lease.''

Courtesy of G COWEN Falcon chambers

[nb92] 22/4/2021 02:43

A little disappointed at the sale price achieved for the retail parks but on the plus side, luxury goods sales are booming and Hammerson is at this end of the market even more so now.

[williamcooper104] 21/4/2021 22:42

Problem is most of hammersons debtors are won't pay; can't pay

[flyfisher] 21/4/2021 22:36

Will those recent legal rulings lead to some of the can pay but won't brigade coming to terms with their legal obligations and paying up?

[williamcooper104] 21/4/2021 21:25

That's the key point The fact it was sold quickly, off-market to Brookfield (who aren't exactly known for overpaying), suggests it was done to plug a loan to value problem But as you say, while it plugs the covenant it puts further pressure on the cashflow The collection rate on retail parks is likely to be 80-90 percent

[researchcentre123] 21/4/2021 21:25

Black Rock buying + sale of retail parks going thru + new CFO. Stuff seems to be happening here.

[flyfisher] 21/4/2021 21:06

TRCML, thanks for posting the legal rulings.

[nickrl] 21/4/2021 20:29

Williamc indeed they've foregone c10% of NRI and given better rental collection levels on retail parks its probably nearer 20% of what is currently being collected.

How much NAV has this transaction cost?

Ultimately little choice to ensure they keep lenders on board but difficult to see this producing any meaningful dividend for many years if ever in its current form.

[williamcooper104] 21/4/2021 19:41

Brookfield bought the retail parks for £330m - or c8 percent less than December valuation Very disappointing They ought to be holding these for income And certainly not selling them off market to Brookfield

[trcml] 21/4/2021 13:21

case law transcripts often contains commercially sensitive information, which as well, as the legal principles is what makes them fascinating reading. Another 2021 ruling involving the same landlord and Westfield is Commerz Real Investmentgesellschaft mbh v TFS Stores Ltd 2021: concerns the tenant's reasonings for withholding rent; all were rejected.

[nickrl] 20/4/2021 21:13

TRCML surprising how much commercially sensitive information has been disclosed in this ruling. If the gold medal places are having to slash rents considerably doesn't bode well further down the food chain. Question is how much of this is in the current valuation of the likes of HMSO or do we expect it to fall further.

[trcml] 20/4/2021 15:05

For an insight in what is happening to Westfield London W12 (Shepherd's Bush), suggest reading WH Smith Retail Holdings Ltd v Commerz Real Investmentgesellschaft mbH 2021.

[nickrl] 20/4/2021 11:12

People locked up for over three months were bound to swarm out at first opportunity but euphoria will die away and reality will set in once furlough comes to an end so the long term is not yet assured on shopping centres. These look to have the highest % of rents being withheld currently and given they've been generous in the amounts waived as well is it reasonable to assume this is can pay but won't brigade and if moratorium isn't extended again this will be a nice bit of cash coming in.

I know they need the cash but giving retail pks away is high risk as they have given away any rental advantage on shopping centres now with recent statements so future income streams are going to be further reduced.

[researchcentre123] 20/4/2021 09:25

My view for what it's worth is the various rentals not collected and discounts given are all more than taken into account given the write downs they've had and current discount to net asset value (82p at the moment which gives plenty of margin even if there's a further decline - but then again there's a good chance of hyperinflation.....). What we have seen is people like going out shopping still. I think we'll see a transformation as they improve the destination aspect of their centres-the new management I get the feeling are more attuned to what pple want