REAL-ESTATE INVESTMENT TRUST
Hammerson ‘a solid bet for future returns’
Strong fundamentals will drive Hammerson’s returns over the long term, says Stanlib
Hammerson, which is the largest property stock on the JSE, is considered by analysts as one of the most undervalued stocks with significant upside potential. The European shopping centre group listed on the JSE in September 2016 in a bid to extend its shareholder base. In doing so, it gave South African investors direct exposure to the company without the need for an offshore allowance. However, various forces have weakened Hammerson’s returns since it listed. The group listed at R112.11 on September 2 and closed at R101.15 on Tuesday. This represented a near 10% drop in the share price since listing. "As a result of the uncertainty surrounding Brexit and the rand gradually strengthening against the pound, Hammerson’s stock price has not done as well as expected in local currency since its listing," says Keillen Ndlovu, head of listed property funds at Stanlib. However, he says, strong fundamentals will drive Hammerson’s returns over the long term. The group has strong management an...
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