Hammerson Share Discussion Threads

[mountpleasant] 14/2/2019 21:05

Does this company do residential development?
Because they are sitting on 6 acre site, that will cost a few hundred million to develop.

[777mason] 29/1/2019 15:04

Some share holder may suspect that the greed of managers who opt for share buybacks may also be motivated by boosting the value of the variable part of their remuneration package which often includes stock options and outright share allocations.
The incentive of executives based on the share price is without a doubt behind this increase in share buybacks
While most shareholders would welcome share buybacks - which can reach millions of pound per company – for my part I would call them a manifestation of short-term thinking by CEO. And I’ll tell you why share buybacks form my understanding are undermining a company's long-term strategy if this company has any.
When a company buys its shares that is saying it doesn't have anything better to do with its cash, which is somewhat worrying for me and my investment perspective.
We could then ask is there a problem with the retail sector?

[777mason] 29/1/2019 14:34

These shares have been purchases form part of the Company's share buyback programme (the "Programme"), which is expected to be completed over the period from 24 July 2018 to 19 July 2019, details of which were announced on 24 July 2018.

[hugepants] 29/1/2019 13:13

Positively zooming up now

[r ball] 29/1/2019 09:45

This one is a survivor. Its not entirely about the UK you know.

[777mason] 28/1/2019 10:00

Like A Thief In The Night
No one knows where or how it will begin. It can start with a slow decline in the economy and markets or there could be a sudden and sharp drop, taking everyone by surprise.

When the crisis soon hits the world, corporate profits will suffer. Highly indebted companies will not meet their debt covenants, especially as interest rates rise along with inflation and collapsing bond prices. So companies will default on their debt as well as property owners with debt. Commercial property will suffer as tenants can’t afford the rents. It will be the same with retail property, which will collapse as spending comes down. The West, and especially the US, is over-stocked with retail space, with most of it at very high rents. As people lose their jobs and interest rates rise, the housing market will collapse by 75% to 90%.

[777mason] 02/1/2019 18:41

if HSBC put the real target price on what it really thought it would not be offloading and telling it, clients, to do the same, while telling everybody else it's ok ,

[hugepants] 02/1/2019 14:53

To be fair HSBC still have a price target quite a bit higher than the current price.

Broker Forecast - HSBC issues a broker note on Hammerson PLC
2 January 2019 | 08:40am
StockMarketWire.com - HSBC today reaffirms its buy investment rating on Hammerson PLC [LON:HMSO] and cut its price target to 543p (from 618p).

[777mason] 02/1/2019 13:27

HSBC slashed its target price, saying most of Hammerson’s business was susceptible to risks from “a faster than ever-changing retail landscape where few practitioners seem confident of exactly where it is headed”.
HSBC added that there was “little by way of an investment case that can be confidently proffered” for the firm adding that equity was pricing in “the possibility of the business failing, either financially or to meet its stated objectives”.
“The refinancing of the group’s debt has been inordinately costly, the land grab of shopping centres has turned out to be ill-timed and having made an advantageously early move to gain a footprint in Spain that is now ‘on the table’ for possible divestiture to address gearing.”
Both Hammerson and Intu have struggled this year as part of the general downturn that is afflicting the UK’s retail sector.
In July, Hammerson announced plans to pull out of the retail -parks sector over the medium-term, increasing its disposal target for 2018 to £600mln as half-year pre-tax profits slumped £55.7mln from £289.7mln the year before.
Meanwhile, Intu has said it will need to "substantially reduce” payment of dividends, starting with the final 2018 dividend, in November after a consortium led by billionaire shareholder John Whittaker had thrown out plans to buy the shopping centre owner due to market .
How long before hammersons substantially reduce there payment of dividends.

[hybrasil] 02/1/2019 13:19

What's the bets they don't proceed with the rest of the buy back?

[essentialinvestor] 02/1/2019 10:28

How long before they need an equity raise?.

[hugepants] 02/1/2019 10:25

cratering here this morning

[hugepants] 02/1/2019 09:40

That's the buyback suspended (closed period) until results in February.

[gopher] 28/12/2018 17:09

The problem is strcutural but the Governments are aware that the pure online retailers make very little contribution to national coffers. I wouldm't bet against an online sales tax

[essentialinvestor] 21/12/2018 10:57

A year before the last financial crisis hit many of the large UK REITS
traded at fat NAV discounts. Some saw value, the reality turned out to be
a huge value trap.

I don't see any of the directors buying?. Unless there is a reason for this.

[trcml] 21/12/2018 10:55

We valuers are great theorists. A valuation is an opinion; an informed opinion but an opinion nevertheless. We work on the assumption that if 'A' sold for xGBP then all other factors remaining constant 'B' would sell for yGBP. where all other factors are not the same we make notional adjustments and allowances to reflect the differences.

There has been a mismatch between rents and capital value for some years now but because the investment market has remained buoyant valuers have focussed on that regardless. Now that the investment market demand for shopping centres is slowing and quite possibly non-existent, valuers are having to be be more cautious. But valuers cannot be as cautious as they would like because the whole quoted (and unquoted) prop-co sector would come a cropper. So instead they ease up the yield to what appears to be a more realistic level, even though that level is also possibly unattainable.

Intu's bidders pulled out because their enquiries would have found a lack of appetite amongst investors for the bulk of Intu's assets. If and as HMSO's assets would not fetch anything like the reported NAV then basically HMSO becomes an income stock. I think i was doing well buying in again at 6% yield but now the share price is over 7% I reckon it is heading up to 9%-10%, in which case would be worth buying into.

[hugepants] 21/12/2018 10:50

Looking a bit grim here. I wonder where the shares would be without the buyback. The buyback is relatively massive at 10% of the market cap and they are now buying back at 50% of stated NAV. The NAV will come down but by how much. If it comes down 30% that's still £5.

[hybrasil] 21/12/2018 08:14

Now 335p. Heading towards that all time low again

[hugepants] 16/12/2018 23:06

8 months ago they turned down 635p a share offer from Klepierre. Current share price 351p. Not far off 50% below the offer price!

[dendria] 16/12/2018 09:58

The negative news flow continues...

Today's Sunday Times 'Hammerson accused of masking debts'

hxxps://www.thetimes.co.uk/edition/business/hammerson-accused-of-masking-debts-v99w73lsr