Hammerson Share Discussion Threads

[bolador] 07/5/2020 10:19

1.There are no big buyers right now therefore something is up but not the share price

2.There must be talks going on about an equity/bond issue.

3.There are always sellers, house buyers, divorce, holidays etc who do not consider the investment case as it is not relevant. Big buyers just need to hold of and its death by a thousand cuts.

4.There is a recent case of an equity raise 15% above the share price DFS

5.Who benefits if Hammerson runs out of ready cash when the share price is 10% of the NAV ?

6.Does not the surplus on liquidation belongs to the shareholders ?

7.Makes more sense to support the co with an equity/bond issue mix.

8.The board has had a few weeks to make a plan if the retail parks deal fell through
after the initial failure to complete.

9. SEE 1

Just a few odd thoughts making a theme...

[sr2day] 07/5/2020 10:01

once one of the hedge funds decide to close their shorts the share price will shoot up.it is a question who blinks first.

[riostroy] 07/5/2020 09:21

Hunt for cheap share price is ongoing. MM will continuously drop share price until all stop losses are triggered.

[sbb1x] 07/5/2020 09:21

Just keeps drifting down, at some point it has to turn.Let the trend be your friend.

[s34icknote] 07/5/2020 08:37

Look at Halfords all the way down to 49p back to 145 p National express down to 69p now 250p.Just irrational markets driven by fear and media and mis information !They have drawn 100 million from 1.2 bn available Add to 113 saved on final div plus 21 million Interest 80 million and admin costs of 50 million per year to run the business !Shorts probably driving it down and Intu sentiment !I think Hammerson are on the right track .Assets valued at 8 bn !So lets down grade over next there years to 6 bn !Minus 2.8 bn debt gives you 3.2 bn ! All for 430 million at todays prices !It's the uncertainty and media fear gripping everyone.No new cases of corona in chins for three weeks.People will soon forget and get on with life !50000 deaths out of 67 million a small percentage.1.3 million killed worldwide on roads each year !God bless you all !!!!Sicknote

[researchcentre123] 07/5/2020 08:24

​What I don't get is the net asset value is 12 times the market cap. Even with a 1/3 drop in capital values, there is still substantial value there. Assuming there is zero rent this year they will still survive so why the collapse? Seems a bit if you have a one year perspective.

[hpcg] 06/5/2020 20:44

I hadn't read today's until just now. I heartily recommend, just requires a registration. Markets Now, the non-interactive replacement for Markets Live provides broker commentary that us lowly PIs wouldn't otherwise see, for example:

"Hammerson is a real head scratcher for us – if rents and values only fall by 25% and they can access new equity the current share price may offer significant upside. But is that possible today?"

"Hammerson could save itself with a pre-emptive £500m equity raise, about equal to the current market capitalisation, with the shares hypothetically offering a double-digit dividend yield and trading at a circa 70 per cent NAV discount. But with Intu having failed to attract anyone to a similar pitch, the chances of success don’t look strong enough to merit a buy, Peel Hunt says."

There is commentary on other REIT in today's.

I don't consider the need for an equity boost anything other than conventional. Look at the numerous occasions INTU didn't, and you can see what happened. That's a doughnut so far as equity is concerned, perhaps a penny for luck.

[williamcooper104] 06/5/2020 20:33

Because it's an operationally leveraged company When headline rent falls net operating income falls a lot more Plus every lease expiry/break will mean less rent so LTVs will be under pressure

[s34icknote] 06/5/2020 19:16

If they can borrow 1.1bn why do an equity raise at rock bottom prices ?This would break even with half the rents collected ?Sicknote

[hpcg] 06/5/2020 18:48

To be clear, after today's announcement and a relatively persistent look through the accounts I went short. It isn't the news as such, as it wasn't news. It is the confirmation that valuations are too high and rents are too high. It says why buy properties now when they will be cheaper in 3 months, and even cheaper from the banks. Not specifically HMSO properties, but someones.

For what its worth I think the drop is because they can't pay a dividend as required. That has income and tax implications. The flip side of a REIT structure is that capital can't accrue from trading, it has to come from either debt or equity. When debt markets are closed it has to be equity. They should raise now, at least their development capital, while there is still a substantial equity value. It should cease to be a REIT, though I don't know the full ramification for tax, one can't just switch between the two willy nilly.

[its the oxman] 06/5/2020 17:06

New all time low. Not looking rosy.

[s34icknote] 06/5/2020 14:37

Which one ?The disposal ?Sicknote

[sr2day] 06/5/2020 14:25

sicknote,look at the rns above.

[s34icknote] 06/5/2020 14:22

At 31 December 2019, the Company had GBP1.2bn of undrawn committed facilities and cash. On 25 March we drew an additional GBP100m under these facilities to provide surplus cash reserves. Liquidity will be further increased by the net proceeds of GBP395m in relation to the completion of the unconditional sale of a portfolio of seven retail parks, announced on 21 February and scheduled to complete on 23 April.

[s34icknote] 06/5/2020 14:15

I read they had 1.1 billion in liquidity so cant see a cash raise ?Not sure if that included the expected Orion proceeds would have to check ?What's it cost to run this in lockdown for six months ? 100 million ? That's with no rent in .Sicknote

[sr2day] 06/5/2020 14:13

virus will be gone by December if not earlier and this will rocket.