Hammerson Share Discussion Threads

[nickrl] 02/3/2020 13:53

New low this afternoon means the final divi now worth over 7% but not sure its a risk worth taking with these boys being exposed across Europe along with 80-90% of Chinese international airline links currently suspended Bicester village et al must be hurting.

[thomstar] 28/2/2020 13:29

They're waking up

[williamcooper104] 27/2/2020 15:56

The divi yield is getting better :)

[williamcooper104] 25/2/2020 11:56

For once a divi cut that was fully priced in by the market Retail parks are way worse hit that dominant prime shopping centres so the NAV isn't necessarily wrong - but management acknowledges that further value falls are more likely than not

[hugepants] 25/2/2020 09:57

Results out. Divi rebased to 14p going forwards.
NAV reduced to £6. LTV 35%. I doubt anyone believes the NAV though given the retail parks were sold at 22% discount to book value last week.

[williamcooper104] 24/2/2020 16:57

Capital value of the man fee is not a lot The 50 interest is likely to have a fair degree of control/deadlock if not the management The retained hmso potion with management is worth more - but not tens of millions more

[trcml] 24/2/2020 14:51

Via the link, thanks, it's Abu Dhabi Investment Authority that's wanting to sell its 50%, not HMSO. A 50% share is always going to be worth less than half the full value because the shareholder doesn't have control. Unless HMSO loses the management, HMSO's share is going to be worth roughly what AIA's share fetches - asking price more than. £200M could mean anything at this stage - plus the capital value of the management fee.

[nickrl] 24/2/2020 10:20

Article in BISNOW that Abu Dhabi Investment Authority has appointed JLL to market its 50% stake in the 760K SF Oracle shopping centre in Reading, with a price of more than £200M being sought. The centre is in a joint venture with Hammerson, which manages the scheme. Another negative on valuations as the centre was in the books at £565m 12 months ago.

Read more at: hxxps://www.bisnow.com/london/news/retail/600m-sales-will-test-the-market-for-big-shopping-centres

[flyfisher] 23/2/2020 20:37

Williamcooper, would they not get a better return by reactivating the buy in ?

[williamcooper104] 22/2/2020 20:55

The spens costs on those bonds are going to be 30-40 of outstanding debt Horribly painful Would have thought they'd redeem something less painful But unless they have floating debt any bonds or hedged bank loans are going to be painful to repay

[nickrl] 22/2/2020 12:28

The retail park assets had an NRI of c£60m last year and were worth £873m but have been disposed of for around £630m and given the short term bond redemptions are at v.low interest rates cant see this has been a particularly good deal.

Like INTU they would have been better off shifting the prized assets first rather than conducting a firesale so they can keep the gold plated stuff. There going to have the interest rate burden still unless they pay a premia to get the 6%(2026) & 7.25%(2027)redeemed so there only source of cash is the dividend down by at least 50%.

[777mason] 22/2/2020 11:24

Hammerson’s £65m London sale to signal an exit from retail parks.

hxxps://reactnews.com/article/end-of-the-road-hammersons-60m-london-sale-signals-final-exit-from-retail-parks/

[flyfisher] 21/2/2020 12:54

The portfolio was put up for sale as a block expecting 400m, so they actually got more than they were expecting.
See link posted 16th dec.

[riverman77] 21/2/2020 11:22

No, in the last set of results the retail parks fell by 10%, which was about the same as the fall in UK shopping centres. The best performing assets were the European shopping centres, which fell by only a few per cent, and particularly the Value Retail segment (the likes of Bicester) which performed strongly.

[hpcg] 21/2/2020 11:14

Aren't the retail parks considered their best asset? Or at least not the worst. I agree somewhat positive, but only worth about 10% on the share price I would say.

[riverman77] 21/2/2020 10:00

Compared to the 65% discount HMSO trades on, selling non core assets at 22% discount isn't a bad result, and indicates the market is being way too pessimistic. Crucially it will reduce debt to manageable levels - I can't see HMSO becoming a forced seller now.

Yes, the loss of the income means they will need to trim the dividend, but this was already priced in. Even if they cut by 30% it would still be a very attractive yield.

The drop in Chinese visitors will be temporary in my view so not too concerned there. This won't affect the income - rents will still be paid and business will eventually recover.

So fairly optimistic from this point. Given the very sharp recent fall this is due a bit of a recovery, so perhaps this could provide the catalyst?

[nickrl] 21/2/2020 09:05

Thats a savage discount to off load them and lsoe that income stream they better hope the Chinese come back soon otherwise Bicester Village will be subject to same discount

[santangello] 21/2/2020 08:43

Nice to wake up to that news.....I have added.My Chartist friend assures me (even though I don't use charts) that these are due a rise to £3.20 in the short term.

[williamcooper104] 12/2/2020 19:38

It's defo better than Intu :)