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Summary
- Hammerson reported that due to inactivity, its net rental from malls nearly halved in FY2020 during the pandemic.
- Despite massive losses, the company announced a final dividend of 0.2 pence a share, down from 14.8 pence.
UK-based real estate and investment company Hammerson Plc (LON:HMSO) on Friday, 12 March reported that its losses more than doubled to £1.73 billion in FY 2020 from £779.3 million in FY2019 as the pandemic and economic inactivity knocked down the value of malls. The company faced deficits from property revaluation, higher provisions for bad debt, tenant incentives, tenant restructuring, and closures which added to its losses. In Budget 2021, the UK government extended the stamp duty holiday until the end of June, to help support the real estate sector. However, Hammerson did not gain much from the move.
Hammerson’s revenue dropped to £182.9 million in FY2020 from £246.2 million a year ago. Its net rental income witnessed a record fall, slumping by 41 per cent to £157.6 million on a like-for-like basis.
The company announced a final dividend of 0.2 pence a share, down from 14.8 pence in FY2019. It also plans to disburse an enhanced scrip dividend of 2 pence a share, subject to shareholder approval.
Hammerson’s (LON:HMSO) shares were trading at GBX 33.65, up by 3.13 per cent as of 12 March at 9:07 AM GMT+1, while the FTSE 250 index, which it is a part of, stood at 21,462.70, down by 0.33.
Here we look at the other two FTSE 100 real estate and investment focused blue chip stocks with a 1-year return of over 12 per cent.
SEGRO Plc (LON: SGRO)
FTSE 100-listed REIT company SEGRO Plc (LON:SGRO) said the online shopping trend will continue after the crisis eases after the company in February announced its profit before tax rose by 62 per cent for FY 2020.
The warehouse leasing firm said the pandemic-related restrictions drove demand for online services, thus resulting in a rise in industrial space requirements by businesses to meet customer demand.
The company’s market cap was at US$10.863 billion, and its 1-year return stood at 12.56 per cent as of Friday, while it’s trailing 12-month price-to-earnings ratio was at 7.38.
The company’s (LON:SGRO) shares were trading at GBX 911.40, down by 1.17 per cent on 12 March at 9:19 AM GMT+1, while the broader index FTSE 100 was at 6,720.30, down by 0.25 per cent.
British Land Company Plc (LON:BLND)
Property development and investment major British Land Company Plc (LON:BLND) is another FTSE100-listed company. The firm is one of the largest real estate investment trusts (REIT) in the UK.
The company inked a deal worth up to £401 million with Allianz Real Estate to sell off its 75 per cent stake in a portfolio of three London offices to focus on high quality assets. The deal was announced in December 2020.
The FTSE100-listed company’s market cap was at US$3.95 billion, while its 1-year return stood at 15.41 per cent as of 12 March.
British Land Company’s (LON:BLND) shares were trading at GBX 503.80, down by 0.24 per cent as of 12 March at 9:48 AM GMT+1, while the UK property sector was at 2,462.54, down by 0.61 per cent.
