COMPANY COMMENT: Irish eyes are smiling on Hammerson stocks
After the Brexit referendum, Hammerson stocks appear to be undervalued and have potential to recover in 12 to 18 months
Capital & Counties (Capco) might be better avoided by investors for the next year in favour of other Europe-or British-based property funds.
Capco is struggling to create value, primarily because of delays in developing its Earls Court site.
One of the stocks that could be a better buy is Hammerson. After the Brexit referendum in May 2016, this stock appears to be undervalued and has potential to recover in 12 to 18 months. Even though Hammerson’s share price has been under pressure because of political uncertainty and an unclear definition of what Britain exiting Europe would entail, Hammerson’s premium centres should still hold up. Hammerson owns malls in 23 prime shopping centres in the UK, Ireland and France, 17 convenient retail parks in the UK and 20 premium retail outlets across Europe. It is a very large company in the listed property sector, with a market capitalisation of about R79bn and is exposed to various growing European economies. CEO David Atkins says Irish retail centres are especially seeing strong sales, which is helping Hammerson. The Irish economy is thriving, with a number of banks and institutions forecasting it will expand by 5% in 2017. Hammerson’s share price is up 3.52% for the year to date b...