Hammerson (LON:HMSO) Releases Earnings Results

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

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 Trading Up 3.2%

Shares of HMSO stock opened at GBX 380.60 on Friday. The firm has a market capitalization of £2.02 billion, a P/E ratio of 8.27, a price-to-earnings-growth ratio of 1.68 and a beta of 1.79. Hammerson has a 1 year low of GBX 264 and a 1 year high of GBX 381.40. The firm’s fifty day simple moving average is GBX 356.22 and its 200 day simple moving average is GBX 341.84. The company has a current ratio of 4.26, a quick ratio of 1.28 and a debt-to-equity ratio of 80.80.

Analysts Set New Price Targets

Several equities analysts have weighed in on HMSO shares. Jefferies Financial Group restated a “hold” rating and set a GBX 360 target price on shares of Hammerson in a report on Friday. Berenberg Bank reiterated a “buy” rating and set a GBX 448 price target on shares of Hammerson in a research note on Thursday. Three research analysts have rated the stock with a Buy rating and three have given a Hold rating to the stock. Based on data from MarketBeat, the company currently has a consensus rating of “Moderate Buy” and a consensus price target of GBX 366.

About Hammerson

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.