Friday tips round-up: Hammerson a 'hold', says Tempus

25th Jul 2014 08:28

Hammerson, the property group which specialises in retail, has been attracting attention from global investors following upbeat half-way figures and high deal activity, The Times' Tempus column noted. The company's assets offer a yield of 4.5 to 4.7% if bought now, representing good value against the London property market. Tempus highlighted that the company is signing new leases above estimated retail value, its occupancy rate is running as high as could be "reasonably" expected and has plenty of new projects underway. However, the company's shares have narrowed the traditional discount to net asset value (NAV), Tempus added. "Hammerson has traditionally traded at a discount to net assets, unlike property companies with a greater exposure to London. But that discount has almost disappeared. NAV per share was up by 6.8 per cent year on year to 612p; the shares lost 10p to 605p. That does suggest they are up with events. 'Hold' for the long term."RD