shoring up value in tough times
BUY, HOLD, SELL: Foreign property counters
Challenging market conditions and uncertainty around the Brexit process have taken their toll on foreign property counters. A possible slide in European markets needs to be factored into investment decisions
HAMMERSON PLC Share price: R90.63JSE code: HMN BUY: This UK-based shopping centre company is undervalued and its share price should soon lift. Last year it grew its total dividend per share 7.6% in pound terms. The firm’s portfolio includes investments in 21 prime shopping centres in the UK and France, 19 retail parks in the UK and 15 premium outlets across Europe. It’s a juggernaut in the listed property sector, with a market capitalisation of R73bn. Keillen Ndlovu, head of listed property funds at Stanlib, says the firm’s growth outlook is impressive and it is notable that it is trading at a discount to net asset value. "It’s been a volatile period in the UK but [Hammerson is] in a pretty good environment where retail sales continue to be strong and [it has] had a busy couple of months post-Brexit working on the portfolio," he says. "The stock is trading [at] about a 20% discount to net asset value and offers a yield of about 4.5%." During 2016 the property portfolio produced a to...
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.
Subscribe now to unlock this article.
Support BusinessLIVE’s award-winning journalism for R129 per month (digital access only).
There’s never been a more important time to support independent journalism in SA. Our subscription packages now offer an ad-free experience for readers.
Cancel anytime.
Questions? Email helpdesk@businesslive.co.za or call 0860 52 52 00. Got a subscription voucher? Redeem it now.