Hammerson: Buybacks And Higher Payout After Value Retail Deal Closes

Oct. 30, 2024 11:50 AM ETHammerson Plc (HMSNF) StockUNBLF, UNIRF, HMSNF
Ivo Kolchev
936 Followers
(7min)

Summary

  • Hammerson is a retail REIT focused on the UK, France, and Ireland.
  • The company significantly lowered its leverage following the closure of its value retail deal.
  • As a result, Hammerson plans to carry out a £140 million buyback and increase its payout to 80-85%.
  • The enterprise-level valuation is in line with smaller European peers but attractive relative to larger REITs.
  • Key risks to consider include European economic growth prospects and lower gearing relative to peers.

Stock Buyback Share Repurchase Word Collage 3d Illustration

iQoncept

Introduction

Hammerson plc (OTCPK:HMSNF) has significantly outperformed the Vanguard Global ex-U.S. Real Estate Index Fund ETF Shares (VNQI) so far in 2024, delivering a ~25% total return against the ~3% gain for the broad international REIT ETF:

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936 Followers
I ventured into investing in high school in 2011, mainly in REITs, preferred stocks, and high-yield bonds, starting a fascination with markets and the economy that has not faded despite the years. More recently I have been combining long stock positions with covered calls and cash secured puts. I approach investing purely from a fundamental long-term point of view. On Seeking Alpha I mostly cover REITs and financials, with occasional articles on ETFs and other stocks driven by a macro trade idea.

Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

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