Hammerson Share Discussion Threads

[researchcentre123] 14/5/2020 17:50

William Cooper I don't think you are correct saying the accounts assume the transaction has happened. If you look at the balance sheet it says assets held for sale £465m which is presumably the property being sold that didn't happen. Given its down as an asset they couldn't have reduced the debt so I think those figures stand - you couldn't really put in reduced debt unless it's actually paid down. If they had assumed it had happened they'd have had to assume they had the cash too which clearly they didnt

[s34icknote] 14/5/2020 16:53

Another 3.6 million buy at end ?Lighthouse ?Sicknote

[777mason] 14/5/2020 16:32

Researchcentre123

I don't own any shares and have no intention to buy any in retail at want ever price they drop to, but I do wish you all the best in all that you do.

[williamcooper104] 14/5/2020 16:09

But arguably better risk adjusted trade is Land/Blind - will also bounce aggressively on a vaccine and neither with any distressed rights issue/covenant risks

[williamcooper104] 14/5/2020 16:02

The year end accounts assume the Orion sale happened - so net debt is £400m higher and you need to look at the higher proportionally consolidated LTV at 44 percent (assuming Orion sale had happened) So true LTV as at last balance sheet date more like 50 percent - which is now anyone's guess but clearly a lot higher

[williamcooper104] 14/5/2020 15:59

They did give it an 80 chance I think first trial results in 5-6 weeks And if the results are good then you ought to see epic short covering on HMSO So even if it's a medium to long term bow wow could work very well as a trade

[moneysage] 14/5/2020 15:24

I think the world has changed forever - not as many will want to shop in crowded shopping malls. Brent Cross is already a dinosaur.Despite Retailers marketing their "experiences" and "retail therapy", people will have become accustomed to online delivery of most goods where possible.Means downward push on rents and income and valuation of companies like this.Not short, not long either.

[researchcentre123] 14/5/2020 15:08

Actually Orion were right to reneg....given the share price they should buy the whole company instead

[researchcentre123] 14/5/2020 15:05

Mason I think going short trying to talk it down. You think if Hammerson went back to Orion and offered the shopping centre for 80m they'd say no? How about £30m? That's the sort of discount we are offered. Hammerson were selling 5% of the portfolio for 400m and now you can buy the company for 313m....things have not changed that much in 2 months

[777mason] 14/5/2020 14:57

With the British economy just beginning to reopen, the FT reports that almost half of active UK businesses expect their cash flow to dry up within the next six months, according to a survey from the ONS.

[777mason] 14/5/2020 14:53

Researchcentre123

get your money out and into tangible assets that can easily be converted into cash.

[eater24] 14/5/2020 14:52

Might be worth a punt when it hits the 25p mark

[777mason] 14/5/2020 14:49

you may be right on double-counting but thats what got hammersons here ?

[researchcentre123] 14/5/2020 14:47

You get thirteen times the assets you pay for in this deal (4.4bn/313m the net asset value divided by the market cap)

[researchcentre123] 14/5/2020 14:38

hxxps://uk.investing.com/equities/hammerson-balance-sheet

[researchcentre123] 14/5/2020 14:38

Year end 2019, the last accounts. Look at this if you like. Net Assets are 7.3bn - 2.9bn=£4.4bn. Have a look here if you like.

[777mason] 14/5/2020 14:29

Researchcentre123

what year are we looking at?

[researchcentre123] 14/5/2020 14:23

You'll find it in the annual report

[researchcentre123] 14/5/2020 14:22

Mason have a look at the company balance sheet. It lists their assets. You take off their liabilities and that is the net asset value

[researchcentre123] 14/5/2020 14:20

Ultimately I see this as down to price. I would never buy a Rolls Royce - except if you offered a new one for 2k. I might not be able to sell it immediately but I'd buy it knowing i'd get my money back and much more besides eventually

[777mason] 14/5/2020 14:19

Researchcentre123 what balance sheet are you taking about?

[777mason] 14/5/2020 14:14

Researchcentre123

I will get back to you sorry to cut off but need to take care of kids.

[researchcentre123] 14/5/2020 14:13

William I think it's all about timing. Many of the tenants are getting rates holidays now. Any empty unit could then get 3 months rate holiday. Personally I think we'll find the Oxford University team coming through with their vaccine by end of June. Given it works in monkeys hopefully it'll work for us. They gave it an 80% chance a while back

[williamcooper104] 14/5/2020 14:12

In prime central London resi is worth more than retail (but not actually worth more than prime retail in prime central London - most valuable psf of any real estate is Bond Street) In the rest of the country resi is worth less and then of course you have to actually build the resi, and the infrastructure/schools/road/biodiversity/other green stuff obligations - and doubt if you will be able to pdr avoid social/key worker housing when we get out of lockdown There will be some assets that have higher alternative use - think retail warehouses in prime urban logistics locations or where you can get a huge planning gain and build a lot of density

[williamcooper104] 14/5/2020 14:07

The smart money stopped investing in retail CRE long ago