Hammerson Share Discussion Threads

[trcml] 18/10/2021 12:44

As you say NAVs are based on expectation of future income.The forecast /prediction for is lower rents than currently. In the prime sector including retailers that think their covenant on a par, rents are being rebased.

[williamcooper104] 18/10/2021 11:15

They are and while in the UK REITs are judged on red book NAV; arguably a throw back to the developer/trader model, in the US, REITs hold property at depreciated cost and are judged entirely on cashflow/rental income US REITs have outperformed UK REITs by huge margins

[pdosullivan] 18/10/2021 11:04

Hi all, just giving a second (and final) push to my blog on Hammerson, which I am a shareholder in. https://tbifund.wordpress.com/2021/10/17/hammerson-hmso-ln-after-the-hammer-blow/

[pdosullivan] 18/10/2021 11:02

I would broadly agree with the thrust of your argument - fundamentally, as you say yourself, HMSO is not out of the woods yet, which is why I set out in the blog that I don't think the NAV has troughed yet. One quibble I would have is on the rents v NAV point you make - the property values which feed into that NAV are based on future expectations around income.

[trcml] 18/10/2021 10:09

I read your article. I am not a shareholder but I do know about commercial property which is my work as a professional adviser. Your own purchase share price is of no consequence (except to you) as sps are volatile at the best of times so it is very much a question of timing when to to buy).HMSO was in the FTSE 100 before it was demoted. Demotion implies inability to keep up. HMSO's decision to sell its office investments and focus on retail was also regarded by some as a mistake. You seem to have assessed HMSO's prospects based on rental revenue whereas prop-cos are valued to capital NAV. the drastic fall in the number of shopping centre investment sales in recent years is causing valuers to adopt a very cautious approach. Retailers nowadays want short term leases with break clause which affects the security of the rental stream. So for example instead of a 20 year lease with 5 yearly reviews which in the past might for a prime proposition have been valued at 4 or 5%, we now have 3 or 5 year leases with tenant break clause and no reviews valued at around 10%. (a suggestion o this forum some time ago as to why not break up the shop ping centres and sell the individual shop investments is a ndisableder because there is more to a shopping centre than the overt: the service charge takes care of the repair and maintenance of extensive communal areas including the car parking and air-conditioning. The costs could be apportioned but whether individual investors would be willing to take on the responsibility in the event the tenant fails to pay is unlikely.) HMSO haven't been as fortunate as many other prop- cos in getting 100% or close to rent paid each quarter. Many multiple retailers are on monthly rentsL accommodated but disliked. HMSO holdings are prime and flagships in good stead is of little consolation if the centres are not performing.

Most prop-cos borrow to finance their investments and developments. The cost of finance takes its toll both on operational non-recoverable expense and capital value. The loan-to-value covenant has to be maintained. HMSO was heavily indebted (not as dire as Intu which collapsed under the weight of its debt). It does not follow that selling assets to reduce debt there would be enough or anything left over. All in all, HMSo is not out of the woods yet. A sign of light will be when HMSO stops offering shares in exchange for shareholders not wanting dividends in cash.

[pdosullivan] 17/10/2021 13:47

Hi all, I have written a blog on Hammerson, which I am a shareholder in, that may be of interest to you. https://tbifund.wordpress.com/2021/10/17/hammerson-hmso-ln-after-the-hammer-blow/

[thomstar] 15/10/2021 22:04

This dog could 10 bag and I would still be in the red

[mountpleasant] 12/10/2021 10:28

Read in Sunday times, Staff at HMSO head office invited to enter into "consultation"
I love that phrase.. I would decline the invite.

[citycanary] 11/10/2021 10:01

IMHO the cost cutting is necessary and timely. It's increasingly obvious that most peoples' shopping habits have changed because of the pandemic and that large shopping malls etc need to re-invent themselves to survive in the new market.

Cutting costs will save some money to keep the lights on longer as they work out what to do.

GLTA and DYOR.

[nickrl] 10/10/2021 11:25

According to ST Rita is going to take the axe to the bloated organisation which costs 48.9m year - if correct they are well overpaid!

"Hammerson is poised to axe a chunk of its workforce as chief executive Rita-Rose Gagné moves to cut costs at the beleaguered shopping centre owner. All 250 staff working at the head office of the shopping centre giant in London’s King’s Cross and its office in Reading have been placed in a consultation exercise. Hammerson, which paid its 538 staff £48.9 million last year, has long been regarded in the property industry as a top-heavy organisation"

Why has she taken year to work that one out! Anyhow looking to cut costs by 15-20% sticks a few more quid in the coffers but can't see a decent divi anytime soon.

[mountpleasant] 04/10/2021 13:51

Goldsmiths is a luxury retailer... really?
Will people be queuing to buy Swiss watches?

[flyfisher] 02/10/2021 17:25

Highcross owner Hammerson has confirmed it will welcome new brands to the Leicester shopping centre - described as its 'flagship destination' - this autumn.

New stores Ted Baker, Thérapie Clinic and Laser Clinics United Kingdom are set to open between October and November.

According to Hammerson, the centre has captured existing and new audiences through a range of events and initiatives since reopening in Spring.

Those included its move to become dog-friendly, hosting Bandstand Live, a weekend with cultural performances and hosting the city’s biggest ever public art event with Rocket Round Leicester.

Also, Highcross jewellery store Goldsmiths is set to undergo a big refurbishment, as the retailer creates what it describes as "a luxurious new store concept."

Since non-essential retail reopened this spring, jewellery has been a top performer across Hammerson’s portfolio with the average spend up 25 per cent compared with 2019 levels.

Hammerson says customers self-treated after coming out of lockdown and made luxury investment purchases in-lieu of holidays abroad.

Iain Mitchell, UK commercial director at Hammerson, said: “Premium brands and those with an experiential element have been some of the best performing since we reopened earlier this year and these four deals typify this demand.

[kibes] 23/9/2021 08:54

Visited the Oracle shopping center in Reading yesterday. It is very quiet and nothing like as busy as it used to be. It should have picked up more than this by now with all COVID restrictions lifted. Car park which used to be absolutely full with a queue is now only half full and the management seem to have doubled the prices in response which hardly looks clever to me if they want to compete with online trading.

[williamcooper104] 15/9/2021 10:04

It's a classic zombie ???? It's done enough such that it's not Intud - but it's not got the balance sheet to properly re-position it's assets Notable that Uniball/Westfield are ploughing on with Croydon but assuming that HMSO don't fund their share/get bought out

[propinv] 15/9/2021 09:58

Lachman all of this stuff is trading below NAV. Have done for years. Yes, it's trading at half red book NAV but the valuers have been wrong (less so now than previous years? There are better bets in the sector.

[flyfisher] 14/9/2021 09:48

lachman, you have an incorrect NAV.

mountpleasant, Fitch ratings came out with an updated bond rating for HMSO earlier this year, it covers debt covenant issues, some of which have been resolved by the recent sustainable eurobond issue.

[lachman] 13/9/2021 23:25

Should be flying very soon with
Net Asset Value per Share at 76.33p

[redoctober5] 13/9/2021 15:58

What happened to hammerson Flying

[bdbd11] 13/9/2021 11:16

Thanks flyfisher

[flyfisher] 12/9/2021 06:04

Interactive Investors gave an option for the scrip last time.

[bdbd11] 11/9/2021 20:08

Does anyone know if Interactive Investor (sipp) will automatically take up the scrip? I had my pension moved there recently from eqi, who I had to fight with to get the scrip. Thanks.

[mountpleasant] 11/9/2021 16:15

Theres a bigger problem I have sussed.

Capital projects have been stalled.
Is this due to liquidity concerns? Banking covenants etc.

Example is the City Quarters business project.
Has any of this been started, or is it marketing fluff?

[cumnor] 10/9/2021 16:49

Town centers and shopping centers/retail parks starting to fill up again. Ignore the drip of late-happening across the board.