Hammerson (HMSO) Ordinary 25p Shares
HL comment (10 November 2014)
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- Hammerson said UK shopping centre sales were up 2.6% for the year to date with France down 2.8%.
- New group lettings rose 37% in the year, while the total area of lettings rose 21%.
- Long term group leases year to date were struck at 9% above ERV.
- Speculation regarding an increase in UK interest rates during early 2015 currently persists.
- The group has exposure to the French economy, where economic indicators have been somewhat mixed in recent months.
- British retailers still face challenging conditions as government austerity measures, rising prices and stagnant wage growth force shoppers to assess spending.
- Hammerson previously announced that it had completed the sale of its office properties, a move that reduces the group's diversity.
- Hammerson reported total rent from new group lettings was up 37%, and the total area of lettings, up 21%.
- Overall occupancy in the group's portfolio was 96.7% as at 30 September 2014.
- In October, Hammerson took over the management of Cabot Circus in Bristol (where ownership remains 50%) including property and asset management, leasing and marketing, following the purchase of a 50% stake by AXA Real Estate.
- The group offers a degree of geographical diversity.
- The company has previously been subject to speculative takeover rumour.
- A progressive dividend policy continues to be pursued.
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