Hammerson Share Discussion Threads

[orchestralis] 30/3/2020 11:56

I'm in for a few. Now somebody tell me I'm stupid

[nickrl] 30/3/2020 10:57

Mr Market clearly not impressed this morning!. On my 4/3 post i suggested they should cull the dividend then given the emerging situation but doing it after XD is reprehensible but presumable they are allowed to under stock exchange rules?

That said there collection rates for Q2, like INTU reported, are higher than i was expecting given tenants have there back covered for three months and the commentary coming from many high street names that they wouldn't be paying rent.

Also they are inferring that they've already reached agreement with some tenants to formerly defer payments which presumably means short of the tenant going into insolvency they will recover the lost rent. However, my suspicion is that this is built on gentleman's agreements that in the fullness of time will need to be renegotiated or worse abandoned as the lockdown drags on.

They are to be applauded for a comprehensive update compared to the managed messaging we usual get but whilst i get the Premium Outlets is separately managed they need to get that info in the public domain as well.

As i see it they've lost 2/3rds of this qtrs rent and i reckon next qtr will be worse when retailers are forced to stay closed longer. I don't see lost rent being recovered and i reckon they will have to agree either reduced rents or t/o rents across big chunk of the estate going forward. The Premium Outlets operation is also going to be affected by a downturn in tourism although it highly depends on whether the Chinese have lost the appetite to travel.

So if rental income drops by 50% it can cover its loan/bond interest but covenants will be breached so it depends how lenient the banks want to be. Bank behaviour is now my leading indicator on REIT/PROPCO's but reckon will be many weeks away from seeing RNS in that area.

[trcml] 30/3/2020 09:41

I agree about the cancelling before xd. Also, I think the divi cancelation is morally reprehensible. As I understand, a divi reflects how well a company has done (in the past) which means the money should be ring-fenced and set aside in readiness for payout. In effect, what HMSO is admitting is that it uses the divi money for its cash flow so wouldn't have enough were it to pay out at least not without further borrowing. To my way of thinking, that is the same attitude that, judging by the anguish. some VAT registered businesses adopt. When I buy something from a Vat-Registered seller, I don't expect the amount of VAT to be treated by the seller as extra cash-flow for its business. Ok, the seller is an unpaid tax collector but that is no reason to treat the amount of VAT as its own money until payable to HMRC. My business is VAT registered: because I have an ethical approach to money that is not mine, the amount of VAT due to HMRC is always readily available.

[nimbo1] 30/3/2020 09:35

there will be rights issues etc across the board - land sec, hammerson and British Land I would expect!

[robizm] 30/3/2020 08:56

Wish these companies would cancel their dividend before it goes ex dividend. What was a profitable trade is now a loss. Might buy in at 40p if it gets there

[nickrl] 25/3/2020 09:40

HMSO directors are proposing there pay rise is cancelled! Many other CEOs have now taken pay cuts which is the least they should have done given the company was crumbling even before this pandemic hit.

[trcml] 19/3/2020 14:29

HMSO is currently capitalised at £658.27M net of divi. That equates to the value of one or two major shopping centres, with the others in nothing. The capital value of the revenue at say £150M pa (assuming 20% discount) at say 5YP would be circa £750M. Bargain for anyone with foresight and gumption. Money back after 5 years.

[baner] 19/3/2020 13:40

there will be a 14p dividend for 2020 so the yield is OK........gearing not to high. my guess is NAV is around 250p/share +/-. hopelessly excessive management costs - i would be surprised if this company is not taken over within a year unless the shares comes back to 200p+.

[zoro9791] 19/3/2020 08:48

Bought for junior isa a big chunk @ 235.Feel like a total idiot now.

[nickrl] 18/3/2020 12:02

Hammerson chief executive David Atkins has taken home nearly £1.5m in total earnings for 2019, up 33% on his previous year’s pay package. He was paid a base salary of £655,000 during the year, alongside an annual bonus of £522,000 and a further £73,000 from long-term incentive awards.

Of course bonus schemes don't work in reverse for 2020!

[nickrl] 16/3/2020 21:47

PropInv will be seen as bad news to HMSO but everybody is in this together and to hold the fabric of our western system together it needs extraordinary measures to prevent the destruction of assets that were functioning perfectly adequately until all this kicked off.

My view remains that UK Government needs to be taking esoteric measures never ever considered or not acceptable to conservatives but utterly necessary to allow any chance of getting back to some sense of (new) normality whatever that is.

[propinv] 16/3/2020 19:39

Rents suspended in France!! Wowzers.

[nickrl] 16/3/2020 14:00

Its staggering they haven't pulled the final dividend but now worth 10-11% if anyone is brave enough

[777mason] 11/3/2020 20:12

either way, Hammerson will lose out the small outlet units they have in centers like brent cross though out the walkways will be of a great loss, short term or not, this will have an impact on profitable, which you will inherit with love.

[trcml] 11/3/2020 17:58

I wouldn't thought there are that many units in HMSOs centres where the Rateable Value is £51,000 or less. In any event, the nil business rates is only for a short while. The real winners are the countless profitable businesses whose premises will be rates exempt.

[nickrl] 11/3/2020 17:47

PropInv they will be exdivi on 19/3 so that will knock another 14.8p off potentially

[777mason] 11/3/2020 16:59

Chair David Tyler buys 50,000 shares at GBP1.71, worth GBP85,432, that must be a contribution to Bussiness rates cut for the retailer should be a great year for all retail landlords £0.70p here we come.

[propinv] 09/3/2020 13:43

Any targets here people? My target has been hit and blown through

[zoro9791] 09/3/2020 13:11

Was a month ago man

[pione3r] 08/3/2020 23:05

Time to short this.

[nickrl] 06/3/2020 13:58

Nigh on 8% available for final dividend at current share price but i believe this will go lower and i reckon they will cite covid19 and market instability to pull this dividend. Shorters also need a new target with now they've virtually finished off INTU

[propinv] 04/3/2020 11:30

Hi nickrl. Some good points you make on French, UK and European retail outlets. I'm not so sure this thing carries on for 3-6 mths, but I have no idea. Think better places to put money at moment than this.

[propinv] 04/3/2020 10:08

170-180p. Sorry