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Going to be an interesting day tomorrow, hoping for some real positive news SP is way below where it should be
GLA
It's got so low it's turning into a buying opportunity
The SP drop was because HMSO said they were not going to do dividends. They did backtrack a little part way into the year, but only offered a tiny dividend which was nearly pointless.
This time last year these shares were worth 20% more than today at just over 30p,so even if they sell off some of their assets it won't make a great deal of difference to the share price.
It makes absolutely no difference to the shareholders whether the dividend is paid out in cash or by way of a scrip dividend. To comply with the rules relating to a REIT, the dividend does need to be paid out in one way or the other, but it makes absolutely no difference to the shareholders in what form they receive the dividend. Paying the dividend as a scrip dividend does enhance the cash position of the company, and is, in principle, more in the interests of the shareholders. So, let us hope for a prudent decision to pay out the dividend in the form of shares, rather than cash.
This sale is good news. The share price had, possibly, been marked up rather higher than this news really merited. It has settled back to a more realistic level now, at about 25.5p where it is likely to remain, with a little bit of a fluctuation when the figures which everyone expects are finally confirmed on Thursday. The sale of the interest in Bicester Village would be likely to lift the share price considerably, of course.
Bubble, your news were right
""""Hammerson today announces the exchange1 of an unconditional contract for the sale of Union Square, a 52,000m2 shopping centre in Aberdeen, to an affiliate² of Lone Star Real Estate Fund VI, L.P. for £111m cash consideration. Completion is expected to occur in Q1 2024."""
Is this the harbinger of great news on thursday?... A declaration on the divi and sp should jump into the 30s!
Lone Star Funds is in advanced talks to buy the Union Square shopping centre in Aberdeen from Hammerson, said two market sources.
The US private equity firm is offering around £110 million, a 12% yield, and has received financial backing from Natwest, the sources said, speaking on the condition of anonymity. If the deal goes through, it will mark a return to the retail sector for Lone Star. Five years ago, it handed back the keys on a portfolio of shopping centres, called Project Tiger, it had acquired from Rockspring in 2014 for £260 million using a £200 million Citi loan, as first reported by Debtwire at the time.
Well, big players have dropped HMS for its divi policy... I have long maintained that the current board is fantastic at running a company in itself, but they are sadly inept at dealing with the market side of it. They should appoint someone to the board with the specific high qualities of dealing with the market side.
You must not forget that in 2023 we were paid a dividend of 0.72p because some of the big institutions wanted the payment of dividends back.
Indeed. The annual results might bring small gains.
Only the dividend is holding this SP back now - unless ofc we get an announcement of the Village arm for a good price of around £bil.
Bubble
the share price is directly dependent on the divi. An attractive divi will make the sp soar
Still.
As an investor, i want to see a return if both ways, Shareprice and dividend.
It's been long enough now since covid for them to return the divis. When they announced around a year ago that they weren't going to offer one, the SP dropped massively from its gains
The “cash” option is offered only as a matter of form. No shareholder is expected to actually ele to to receive it. For those who require an income from their holding, the procedure is to wait until the scrip dividend has been issued and to then sell the shares. For the shareholders, the payment of the dividend by way of a scrip dividend is entirely neutral. For the company, it is very beneficial, since it amounts, in practical terms, to a rights issue. Essentially, those buying the scrip dividend shares are boosting the company’s cash position.
2p -scrip
02p - cash
Yes - based on a share price of, say, 25p, a dividend of 2p per share represents an income of 8%. I cannot see any difference, in principle, between a scrip dividend and a cash dividend. Once the new shares have been issued, they can be sold and turned into cash. So, what is the difference?
I am no sure of which scrip dividend are you talking about? the last scrip dividends where advantageous for PI shareholders compared to cash dividends, whether you kept the scrip shares or sold them. It seems to me the main attraction of REITS is dividend no matter what kind of investors you are
I am no sure of which scrip dividend are you talking about? the last scrip dividends where advantageous for PI shareholders compared to cash dividends, whether you kept the scrip shares or sold them. It seems to me the main attraction of REITS is dividend no matter what kind of investors you are
Hammerson has, of course, being paying a very generous dividend in recent years. I am not able to follow why those who do require a cash income from their holding do not simply sell the script dividend when the new shares are issued. What is the difference between receiving a cash dividend of 2p per share and new shares of a value of 2p per share? Those who need a cash income may simply sell the new shares when they are issued. In accounting terms it is quite neutral. On the one hand, the value of the company goes up by the amount of the dividend retained, this being balanced by the number of shares held going down if the new script dividend shares are sold.
I agree with email.
To make this share attractive again, HMSO have to make investing worthwhile by providing a good dividend.
The sale of the Village arm will go a long way at restoring the debt and the SP tbf.
Hopefull the news at the end of the month should also increase the sp
I don’t think that it will work that way. Most of the shares are held by large, institutional, investors, who are concerned about the long term prospects for the company. These can only be improved by reducing the net debt position. A low share price does not bother large institutional investors. They did not buy to sell quickly at a profit, but to achieve a long term capital gain. The shares are, currently, trading at almost half of the net asset value per share, so that the artificially depressed share price affords large institutional investors the opportunity of increasing their holdings in the company on very favourable terms.
JGFFourie
I agree with all that --- IF we were living in an ideal world,,, Otherwise is far too naive - - like diving for a swim in a beautiful sea forgetting it's infested by sharks,,, HMSO desperately need to restore dividend at attractive levels to get investors in and get out of this long slump
Hopefully, Hammerson will continue with its wise policy of issuing new shares instead of paying a dividend this year. For those who need an income, the new shares can be sold. It is a simple say of having an annual “rights issue” to bolster the financial position of the company. Paying out a dividend in cash does not, in fact, improve the market value of the company. The market value of the company will be improved by reducing its net debt.
What do you make of the DPS consensus of 1.4 ( spread 1-2 )?
Hammerson will announce its full year results for the year ended 31 December 2023 on Thursday 29 February 2024.