HMSO LN

Hammerson PLC R.E.I.T.

Finance/Real Estate


Presented:06/14/2019
Price:£2.83
Cap:$3.32B
Current Price:£3.09
Cap:$2.29B

Presented

Date06/14/2019
Price£2.83
Market Cap$3.32B
Ent Value$8.60B
P/E RatioN/A
Book Value£7.10
Div Yield5.24%
Shares O/S764.79M
Ave Daily Vol5,678,314
Short IntN/A

Current

Price£3.09
Market Cap$2.29B
Hammerson plc invests in and develops property. The Company develops, builds, and manages commercial buildings, offices, and shopping centers. Hammerson operates throughout the United Kingdom, but also has investment and development activities in France and Germany.

Publicly traded companies mentioned herein: CBL & Associates Properties (CBL), Hammerson PLC (HMSO LN), Intu Properties PLC (INTU LN)

Highlights

European mall REITs currently at a 30% - 50% premium to the US Mall REITs; however, they have “at least” three turns more debt and mostly trade at 10x Net Debt/EBITDA. The presenter is short the group, as rents are declining due to increased stress in the retail sector and an uptick in bankruptcies. In his opinion, many of these stocks could fall by 50%. Hammerson (HMSO LN) - the UK listed Mall REIT - is a good example, as it’s levered ~10x, and yet investors are willing to stomach retail declines to collect a ~9% yield.

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Idea Discussion

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