Hammerson (LON:HMSO) Posts Quarterly Earnings Results

Hammerson (LON:HMSO) posted its earnings results on Thursday. The real estate investment trust reported GBX 12.10 earnings per share for the quarter, Digital Look Earnings reports. Hammerson had a return on equity of 11.77% and a net margin of 109.58%.

Here are the key takeaways from Hammerson’s conference call:

• Arndale acquisition completed: Hammerson is acquiring a 50% interest in Manchester’s Arndale Centre through an off-market deal with M&G. Management said the asset requires no urgent capital expenditure, with planned investment focused mainly on leasing, tenant mix, public realm and food-court improvements.
• 2026 underlying earnings guidance was raised from £120 million to £125 million, driven by strong leasing, higher occupancy, new openings and turnover rent; including Arndale, guidance rises to £132 million, up 27% year over year.
• Hammerson maintained its medium-term targets of 6%–8% annual EPS and DPS growth and approximately 10% total accounting return, supported by rental tension, upcoming repositioning projects and operating leverage.
• The equity-funded acquisition reduces leverage and gives the company approximately £200 million of additional acquisition capacity while remaining within comfortable credit metrics.
• Portfolio valuations were flat at the half year, although management expects potential yield compression in the second half as transaction activity improves; the company also faces the need to refinance the remaining portion of a Eurobond maturing next June.

Hammerson Stock Performance

LON:HMSO traded down GBX 0.20 during mid-day trading on Thursday, hitting GBX 368.80. 1,769,879 shares of the stock were exchanged, compared to its average volume of 8,200,421. The firm’s 50-day simple moving average is GBX 355.43 and its 200 day simple moving average is GBX 341.70. The stock has a market capitalization of £1.96 billion, a price-to-earnings ratio of 8.02, a price-to-earnings-growth ratio of 1.68 and a beta of 1.79. Hammerson has a fifty-two week low of GBX 264 and a fifty-two week high of GBX 377. The company has a debt-to-equity ratio of 80.80, a quick ratio of 1.28 and a current ratio of 4.26.

Wall Street Analyst Weigh In

Separately, Berenberg Bank reaffirmed a “buy” rating and set a GBX 448 price objective on shares of Hammerson in a research report on Thursday. Three research analysts have rated the stock with a Buy rating, two have given a Hold rating and one has issued a Sell rating to the stock. Based on data from MarketBeat, the stock presently has a consensus rating of “Hold” and a consensus target price of GBX 346.83.

Hammerson Company Profile

Hammerson is a cities business. An owner, operator and developer of prime urban real estate, with a portfolio value of £4.7billion (as at 30 June 2023), in some of the fastest growing cities in the UK, Ireland and France. Our portfolio and adjacent lands leverage our experience and capabilities to create and manage exceptional city centre destinations with the opportunity to drive value and reshape entire neighbourhoods. Our assets are high profile and play an important role in our communities, welcoming c.