REITS
Is it time to axe Hammerson?
The European mall owner’s post-pandemic recovery has been rocky, which raises the question: is the share still worth owning?
Shareholders who have been waiting patiently for Hammerson to regain its former lustre may be getting restless. Despite the company’s share price almost doubling since it hit a five-year low of R3.66 in September 2022, the stock is still down 75% from early 2020 levels.
Like its retail-focused peers across the globe, Hammerson has had a torrid time battling many headwinds in recent years. First it was the rising threat of e-commerce. Then came the pandemic, which forced retailers to close several brick-and-mortar stores. Many went belly-up. That pushed vacancies higher and rentals lower. And more recently, profits have been eroded by higher-for-longer interest rates. ..
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