Broker snap: Hammerson figures spark KBC downgrade

3rd Aug 2009 13:19

KBC Peel Hunt has downgraded its stance on property giant Hammerson to 'Hold' from 'Buy' after its interim results today.'We remain positive on Hammerson as a company, given the strength of financing, management ability and portfolio quality, but shares have rallied 18.8% since our recommendation to in July. Given this share price outperformance we downgrade to Hold, effectively a recommendation to take profits," it said.'Property values at Hammerson fell 14% over the six months, consistent with expectations, and like its peers, the company now reports that yields on some areas of its prime portfolio are no longer moving out, as a positive spread over the cost of finance and risk-free assets has re-emerged,' KBC added.