|Bid||246.20 x 0|
|Ask||246.40 x 0|
|Day's range||244.00 - 251.28|
|52-week range||202.90 - 396.40|
|Beta (5Y monthly)||0.83|
|PE ratio (TTM)||N/A|
|Earnings date||24 Feb 2020 - 28 Feb 2020|
|Forward dividend & yield||0.26 (10.15%)|
|Ex-dividend date||29 Aug 2019|
|1y target est||479.33|
Buy-to-let returns are falling, but investors can still get high-single-digit returns from property stocks as this Fool explains.
London's FTSE 100 edged up on Wednesday, adding to a 2% gain over the past three sessions, as investors waited for news on U.S.-China trade talks before making further bets, while mall operator Intu dropped on signs it may seek to sell more shares. The FTSE 100, which had been holding at a near one-month high this week, rose 0.1%, while the FTSE 250 dipped 0.4% as the pound weakened slightly ahead of a Bank of England's interest rate decision on Thursday.
British shopping centre operator Intu Properties said on Wednesday it could raise equity, alongside asset sales, to tackle its debt burden, knocking nearly 18% off its share price. "Our number one priority is to fix the balance sheet ... options include disposing of assets, where we are in the advanced stages of selling two of our Spanish assets, through to raising equity," Matthew Roberts, Intu's chief executive, said. Intu shares were down 14% at 0941 GMT after the owner of Manchester's Trafford Centre also said it expects annual like-for-like net rental income to be down by about 9% and predicted another decline in 2020, although at a slower rate.
British department stores group John Lewis has told shopping centre landlords it will withhold 20% of this quarter's service charge as it seeks to cut costs, it said on Friday. John Lewis is part of the employee-owned John Lewis Partnership, which said on Tuesday it was seeking to save 100 million pounds ($123 million) through a major management restructuring. John Lewis said these charges had risen regularly and landlords had not cooperated in trying to reduce costs.
Shares in Britain's Intu Properties surged as much as 22% on Monday on speculation a private equity group could buy out the shopping centre operator, which has been hit by high-profile retail failures and a hefty debt burden. The Sunday Times reported http://bit.ly/2HUdHxb that private equity firm Orion Capital Managers, founded by Aref Lahham, is in the early stages of finding partners for a buyout of Intu, which owns the Trafford Centre in Manchester. Intu declined to comment on the Sunday Times report.
Shopping centre operator Hammerson Plc on Wednesday appointed AIG executive James Lenton as its new finance chief, months after saying Timon Drakesmith would step down from the role this year. Hammerson and its peers are struggling with a tough retail environment in Britain, which has seen several high-profile chains close in the last year as consumer habits change and Brexit worries quell spending by shoppers. Its latest earnings report showed a more than 12% drop in net rental income, excluding premium outlets for the first-half.
Lenton, whose LinkedIn page says he was chief financial officer of the U.S. insurer's EMEA business and its European Group until June, will take over the role from Oct. 1. Hammerson and its peers are struggling with a tough retail environment in Britain, which has seen several high-profile chains close in the last year as consumer habits change and Brexit worries quell spending by shoppers. Its latest earnings report showed a more than 12% drop in net rental income, excluding premium outlets for the first-half.
Shares in British shopping centre operator Intu sank more than 21% on Wednesday after reporting a fall in first-half net rental income on Wednesday, the latest sign of weakness in a struggling British retail sector. Intu, which scrapped its dividend earlier this year and changed management after two failed takeover bids, said it was adopting a new five-year strategy to reshape its business and focus on fixing its balance sheet. Intu forecast like-for-like net rental income down moderately in 2020, after a 7.7% fall in the six months ended June 30.
(Bloomberg) -- Want the lowdown on European markets? In your inbox before the open, every day. Sign up here.Faced with the choice of accepting rent cuts or hunting for new retailers to fill hundreds of stores, U.K. mall owners are swallowing their medicine.Some of Britain’s biggest commercial landlords including Hammerson Plc and British Land Co., voted in favor of a rescue plan for billionaire Philip Green’s Arcadia Group that meant having to accept dozens of store closures and rent cuts of at least 25% at almost 200 sites.But their approval for the so-called Company Voluntary Arrangement was grudging and highlights how much pressure they are under from the pain inflicted on retailers by consumers choosing to shop online rather than in department stores.Land Securities Group Plc, Standard Life Aberdeen Plc and the Crown Estate had intended to vote against Arcadia’s proposals and switched at the 11th hour, according to people familiar with their plans who asked not to be named discussing information that isn’t public. One landlord, Intu Properties Plc, voted against, calling the deal unfair to tenants that pay full rent.“It really is like being stuck between a rock and a hard place,” said Daniel Swimer, property litigation partner at law firm Joelson. “Landlords could have rent reductions forced upon them or, if the CVA doesn’t get passed, they’re left with a large retailer failing in the current retail climate.”Deal ApprovedThe fact the deal was approved is likely to put further pressure on mall rents and values, and raises the possibility that commercial property owners could be tipped into a crisis similar to that faced by the retailers who make up some of their biggest tenants.The cost of insuring Land Securities’ debt against default saw the biggest daily rise since December on the day after the Arcadia vote, according to ICE Data Services. Moody’s Investors Service warned of possible damage to the creditworthiness of retail property owners that already face “weak operating performance, with declining footfall and retail sales, and downward pressure on rents.”The landlords came under pressure from Arcadia to back the deal or put about 18,000 jobs at risk if the company was forced into administration, people with knowledge of the negotiations said. Several were told they would be shirking their social responsibilities and be blamed for job losses, an accusation they resented, some of the people said, asking not to be identified as the talks were private.Arcadia representatives declined to comment.Ultimately the decision to back the CVA came down to the best commercial interests of the landlords, given that they could be left with empty sites if Arcadia fell into administration, two of the people said.Spokesmen for Land Securities, the Crown Estate and Standard Life Aberdeen confirmed they had backed the plans but declined to comment on the detail of the negotiations. Representatives of Hammerson and British Land declined to comment.Smaller CutsWhile many companies have preceded Arcadia’s CVA, few have been so large and many secured less generous rent cuts. The risk is that following Arcadia, other retailers now demand the same, even those that have previously undertaken rent cuts.“There’s nothing to stop companies coming back for a second bite,” Andrew Hughes, head of European general retail at UBS said at a media briefing last month.Intu has previously highlighted the likely impact of Arcadia’s CVA, saying last month that store closures are worse than expected and it sees net rents falling 4% to 6% this year. The company, which owns eight of the top 20 malls in the U.K., is under pressure itself to sell assets to cut debt and CVAs are hampering those efforts.Falling ValueIntu said in February that a further 10% fall in the value of its properties would cost 1 million pounds in extra expenditures in order to avoid a breach of loan covenants. U.K. Retail property values fell 10.25 percent in the year through May, according to data compiled by broker CBRE Group Inc.Some landlords are pushing back on department store chain Debenhams’ outlet closures which won creditor approval in May. Sports Direct International Plc has grouped together with landlords to challenge the CVA and property investor M&G Investments has launched another challenge, a spokeswoman for the asset manager confirmed.But it will be hard for landlords to stop the trend. Consumers’ shift to online shopping shows little signs of abating and insolvencies have jumped by more than a fifth since 2016, with more than 1,200 retailers collapsing last year.“What is 100% certain is that retailers can’t carry on paying the rents they have historically,” said Richard Hyman, an independent retail consultant. “There’s less money in the pot to fund it and the pain has to be shared by the landlord as well as by the retailer.”\--With assistance from Antonio Vanuzzo.To contact the reporters on this story: Katie Linsell in London at email@example.com;Jack Sidders in London at firstname.lastname@example.orgTo contact the editors responsible for this story: Vivianne Rodrigues at email@example.com, Chris Vellacott, Shelley RobinsonFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
Drakesmith will continue to be a member of the board until he leaves later this year, Hammerson said, adding that it would begin the search for a new CFO. The finance chief's departure comes two months after reports said French shopping centre operator Klepierre had no immediate plans to bid for Hammerson. Shareholders have raised concerns about Hammerson's performance after it spurned a 5 billion pound takeover bid by rival Klepierre last year.
Intu shares tumbled more than 8 percent to 91.90 pence at 0725 GMT, taking the stock to the bottom of the midcap index. The company, whose properties include the Trafford Centre in Manchester, now expects net rental income for the year to decline between 4 percent and 6 percent, compared with its previous view of a decline of 1 to 2 percent. "We expect the remainder of 2019 to be challenging due to a higher than expected level of CVAs and a slowdown in new lettings as tenants delay their decisions due the uncertainties in the current political and retail environments," said Matthew Roberts, who was installed as chief executive last month.
The move comes a month after Green said he was working on restructuring Arcadia, which trades under brands such as Top Shop, Miss Selfridge and Dorothy Perkins. The property groups, which included Aviva, are expected to appoint advisers to help oversee talks with Arcadia in the coming weeks, the report said. Other property owners such as Aberdeen Standard Investments, M&G Investments were also expected to be part of the consortium with the collective objective of securing improved terms for all landlords in which Arcadia's more than 500 outlets operate.
The commercial property group which owns London's Brent Cross shopping centre is facing a bruising shareholder revolt this month over multi-million pound share awards to top executives. Sky News has learnt that leading City investors are preparing to vote against Hammerson's remuneration report at its annual meeting on April 30 following its dismal financial performance last year. A number of institutional shareholders plan to follow a recommendation by ISS, a proxy adviser, which has warned that Hammerson's board failed to take into account its weak share price when allocating share-based awards to chief executive David Atkins and senior colleagues.
** British real estate investment trust Hammerson down ~5 pct ** 5-star Stifel analyst John Cahill cuts to "sell", does not believe that co's strategy will be sufficient to arrest the decline ...
Hammerson, the owner of shopping centres including Birmingham's Bullring and Brent Cross in London, is to offload more sites despite the tough commercial property market. Hammerson has been under intense pressure from shareholders to grow value following a dramatic fall in its share price - down over 20% in the last 12 months alone. As Sky News reported on Sunday , Hammerson also confirmed an agreement with so-called activist investor Elliott Advisors, which holds a stake of more than 5%, following talks last week.